I-4 - Act respecting the application of the Taxation Act

Section 62 Disposition versions

1977-12-31

62. For the purposes of computing, on 31 December 1971, or at any later time in the case contemplated by the third paragraph of section 68, the fair market value of a share which a taxpayer resident in Canada owns in the capital stock of his foreign affiliate, the fair market value at that time of an asset of such affiliate is deemed its principal if section 477 or 478 of the Taxation Act (chapter I-3) applies to such asset on account of the election contemplated therein and if it is subsequently acquired from the affiliate by the taxpayer as a dividend payable in kind, as a benefit deemed to be received by the taxpayer under paragraph b of said section 477 or as consideration for the settlement or extinction of an obligation described in said section 478.

The same applies to compute on 31 December 1971 the fair market value of such a share if section 470 of the Taxation Act applies to that section on account of the election contemplated by section 479 of the said Act and if the asset is acquired subsequently from the affiliate by the taxpayer in the manner provided for in the first paragraph of said section 479.

1973, c. 17, s. 149.