I-3 - Taxation Act

Section 965.6.5 Disposition versions

2017-12-07

965.6.5. (Repealed).

1986, c. 15, s. 138; 1992, c. 1, s. 101; 2017, c. 29, s. 166.

2006-03-01

965.6.5. Where, during a taxation year, an individual withdraws from an investment group of which he is a member, the following rules apply:

(a)  the individual who leaves the investment group is deemed, at that time, to have withdrawn from a stock savings plan under which he is a beneficiary,

i.  a share at an adjusted cost equal to the amount of his interest in the adjusted cost of the shares included at the time of his withdrawal in a stock savings plan under which the investment group is a beneficiary;

ii.  a non-guaranteed convertible security at an adjusted cost equal to the amount of his interest in the adjusted cost of the non-guaranteed convertible securities included at the time of his withdrawal in a stock savings plan under which the investment group is a beneficiary;

(b)  an individual who remains a member of the investment group after the withdrawal of the member is deemed to have included, at the time of the withdrawal, in a stock savings plan under which he is a beneficiary,

i.  a share at an adjusted cost equal to the amount determined under subparagraph i of paragraph a in respect of the member, proportionate to his interest in the investment group immediately after the withdrawal of the member;

ii.  a non-guaranteed convertible security at an adjusted cost equal to the amount determined under subparagraph ii of paragraph a in respect of the member, proportionate to his interest in the investment group immediately after the withdrawal of the member;

(c)  the interest in the investment group of an individual who remains a member of the investment group is deemed, immediately after the withdrawal of the member, to be proportionate to the ratio between his interest in the investment group immediately before the withdrawal of the member, and the aggregate of the interests in the investment group, immediately before that withdrawal, of the remaining members;

(d)  where the individual who withdraws from the investment group makes an election in accordance with section 965.6.4, the following rules apply:

i.  the amount determined under

(1)  subparagraph i of paragraph a in respect of the individual is deemed to be reduced by an amount equal to the adjusted cost to the investment group of the share so transferred;

(2)  subparagraph ii of paragraph a in respect of the individual is deemed to be reduced by an amount equal to the adjusted cost to the investment group of the non-guaranteed convertible security so transferred;

ii.  paragraph b applies without taking subparagraph i into account;

iii.  the individual is deemed to have included, where such is the case, in a stock savings plan under which he is a beneficiary,

(1)  a share at an adjusted cost equal to the amount by which the adjusted cost to the investment group of the aggregate of the shares so transferred exceeds the amount determined under subparagraph i of paragraph a in respect of the individual, disregarding subparagraph i;

(2)  a non-guaranteed convertible security at an adjusted cost equal to the amount by which the adjusted cost to the investment group of the aggregate of the non-guaranteed convertible securities so transferred exceeds the amount determined under subparagraph ii of paragraph a in respect of the individual, disregarding subparagraph i;

iv.  the adjusted cost to the individual of a share or of a non-guaranteed convertible security so transferred is equal to the adjusted cost to the investment group of the share or the non-guaranteed convertible security, as the case may be.

1986, c. 15, s. 138; 1992, c. 1, s. 101.