I-3 - Taxation Act

Section 550.5 Disposition versions

2006-03-01

550.5. Where, following an amalgamation or merger of two or more corporations after 27 November 1986, a particular share of any class of the capital stock of the new corporation is issued to a shareholder in consideration for the disposition of a share by that shareholder of any class of the capital stock of a predecessor corporation and the attributes of the particular share are similar to the attributes of the share so disposed of, the following rules apply for the purpose of applying this section and sections 21.10 to 21.11.21, 21.16, 740.2 to 740.3.1 and 740.5 to the particular share:

(a)  the particular share is deemed to have been issued at the same time as the share disposed of;

(b)  where the share disposed of was a share described in any of paragraphs a to d of section 21.11.20, the particular share is deemed, for the purposes of sections 21.11.20 and 21.11.21, to be the same share as the share disposed of;

(c)  the particular share is deemed to have been acquired by the shareholder at the same time as the share disposed of;

(d)  the new corporation is deemed to be the same corporation as the predecessor corporation.

1990, c. 59, s. 199; 1997, c. 3, s. 71.