I-3 - Taxation Act

Section 985.0.2 Disposition versions

2009-05-15

985.0.2. Subparagraphs a to g of the first paragraph of section 985 do not apply in respect of a person’s taxable income for a period in a taxation year if at any time during the period

(a)  the person is a corporation the shares of the capital stock of which are owned by one or more other persons that, in total, give them more than 10% of the votes that could be cast at a meeting of shareholders of the corporation, other than shares that are owned by one or more persons each of which is

i.  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

ii.  a municipality in Canada,

iii.  a municipal or public body performing a function of government in Canada, or

iv.  a corporation, a commission or an association, to which any of those subparagraphs a to g apply; or

(b)  the person is, or would be if the person were a corporation, controlled, directly or indirectly in any manner whatever, by a person, or by a group of persons that includes a person, who is not

i.  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

ii.  a municipality in Canada,

iii.  a municipal or public body performing a function of government in Canada, or

iv.  a corporation, a commission or an association, to which any of those subparagraphs a to g apply.

2000, c. 5, s. 230; 2009, c. 5, s. 400.

2006-03-01

985.0.2. For the purposes of subparagraph f of the first paragraph of section 985 and section 985.0.1, 90% of the capital of a corporation that has issued share capital is owned by one or more municipalities in Canada only when the municipalities own shares of the capital stock of the corporation that give the municipalities 90% or more of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation.

2000, c. 5, s. 230.