I-3 - Taxation Act

Section 85.12 Disposition versions

2020-09-24

85.12. Where there has been an amalgamation, within the meaning of section 544, of two or more corporations and subparagraph b of the first paragraph of section 85.7 applies to a predecessor corporation, within the meaning of section 544, in its last taxation year, each eligible derivative of the predecessor corporation immediately before the end of its last taxation year is deemed to have been reacquired, or reissued or renewed, as the case may be, by the new corporation, within the meaning of section 544, at its fair market value immediately before the amalgamation.

Where the rules set out in sections 556 to 564.1 and 565 apply to the winding-up of a subsidiary, within the meaning of section 556, the subsidiary’s taxation year in which an eligible derivative was distributed to, or assumed by, the parent, within the meaning of section 556, on the winding-up is deemed, for the purposes of subparagraph b of the first paragraph of section 85.7, to have ended immediately before the time when the eligible derivative was distributed or assumed.

2020, c. 16, s. 32.