I-3 - Taxation Act

Section 965.10.3 Disposition versions

2017-12-07

965.10.3. (Repealed).

1992, c. 1, s. 116; 1997, c. 3, s. 71; 1999, c. 83, s. 138; 2000, c. 39, s. 113; 2001, c. 7, s. 169; 2004, c. 21, s. 229; 2017, c. 29, s. 166.

2006-03-01

965.10.3. For the purposes of section 965.10.2, where the predecessor corporation referred to in that section is itself a corporation resulting from an amalgamation within the meaning of section 544, in this section referred to as the “original amalgamation”, and a period of at least 12 months has not elapsed between the time of the original amalgamation and the time it became a predecessor corporation, in this section referred to as the “time of the subsequent amalgamation”, the requirement last provided in its respect in the first paragraph of section 965.10.2 concerning the number of employees shall be replaced by the requirement that that corporation have, throughout the period from the time of the original amalgamation to the time of the subsequent amalgamation, not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders and for one of the predecessor corporations to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of that Act or persons related to such insiders

(a)  throughout a 12-month period that includes the time of the original amalgamation and that is established as if the period from the time of the original amalgamation to the time of the subsequent amalgamation were applicable to the predecessor corporation and not to the corporation resulting from the amalgamation; or

(b)  throughout a 6-month period that includes the time of the original amalgamation and that is established as if the period from the time of the original amalgamation to the time of the subsequent amalgamation were applicable to the predecessor corporation and not to the corporation resulting from the amalgamation, where

i.  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

ii.  a class of shares of its capital stock is listed on a Canadian stock exchange immediately before the time of the amalgamation, and

iii.  a class of shares of the capital stock of the corporation referred to in section 965.10.2, resulting from an amalgamation, is listed on a Canadian stock exchange on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

For the purposes of subparagraph a of the first paragraph, a predecessor corporation is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

(a)  a class of shares of its capital stock is, throughout the 12-month period preceding the time of the original amalgamation, listed on a Canadian stock exchange; and

(b)  a person, other than such an insider or a person related thereto, or a partnership provides the predecessor corporation, in the period referred to in subparagraph a, with services under a service contract and that predecessor corporation would normally require the services of more than five full-time employees if those services were not provided.

For the purposes of the first paragraph, where the predecessor corporation referred to lastly in that paragraph, or a predecessor corporation which is referred to lastly in that paragraph as a result of the application of this paragraph, is itself a corporation resulting from an amalgamation within the meaning of section 544 and a period of at least 12 months has not elapsed between the time of the original amalgamation and the time of the subsequent amalgamation, the rule set out in the first paragraph applies in relation to the requirement in its respect concerning the number of employees prescribed lastly in that paragraph.

1992, c. 1, s. 116; 1997, c. 3, s. 71; 1999, c. 83, s. 138; 2000, c. 39, s. 113; 2001, c. 7, s. 169; 2004, c. 21, s. 229.