I-3 - Taxation Act

Section 739 Disposition versions

2012-05-09

739. For the purposes of this Title:

(a)  a dividend or a taxable dividend does not include a capital gains dividend within the meaning assigned by sections 1106 and 1116 or any dividend received by a taxpayer on which the taxpayer was required to pay any prescribed tax;

(b)  a corporation is controlled by another if more than 50 per cent of its issued share capital having full voting rights under all circumstances belongs to the other corporation, to persons with whom the other corporation does not deal at arm’s length, or to the other corporation and persons with whom the other corporation does not deal at arm’s length;

(c)  “mark-to-market property” and “financial institution” have the meanings assigned by section 851.22.1;

(d)  a dividend on a share is a qualified dividend to the extent that

i.  it is not received under section 508 to the extent that that section refers to section 506, or

ii.  it is received under section 508 to the extent that that section refers to section 506 and,

(1)  if the share is held by an individual other than a trust, the dividend is received by the individual,

(2)  if the share is held by a corporation, the dividend is received by the corporation while it is a private corporation, and is paid by another private corporation,

(3)  if the share is held by a trust, the dividend is received by the trust or designated under section 666 by the trust in respect of a beneficiary and the beneficiary is a person described in the second paragraph, a partnership each of the members of which is, when the dividend is received, a person described in the second paragraph, or another trust or partnership if the trust establishes that the dividend is received by a person described in the second paragraph, or

(4)  if the share is held by a partnership, the dividend is included in the income of a member of the partnership and the member is a person described in the second paragraph or the dividend is designated under section 666 by a member of the partnership that is a trust in respect of a beneficiary described in subparagraph 3.

A person to whom subparagraphs 3 and 4 of subparagraph ii of subparagraph d of the first paragraph refer, in relation to a dividend, is

(a)  an individual other than a trust;

(b)  a private corporation when the corporation receives the dividend, if the dividend is paid by another private corporation; or

(c)  a trust that does not designate the dividend under section 666.

1972, c. 23, s. 557; 1996, c. 39, s. 197; 1997, c. 3, s. 71; 2001, c. 7, s. 87; 2012, c. 8, s. 99.

2006-03-01

739. For the purposes of this Title:

(a)  a dividend or a taxable dividend does not include a capital gains dividend within the meaning assigned by sections 1106 and 1116 or any dividend received by a taxpayer on which the taxpayer was required to pay any prescribed tax;

(b)  a corporation is controlled by another if more than 50 per cent of its issued share capital having full voting rights under all circumstances belongs to the other corporation, to persons with whom the other corporation does not deal at arm’s length, or to the other corporation and persons with whom the other corporation does not deal at arm’s length;

(c)  “mark-to-market property” and “financial institution” have the meanings assigned by section 851.22.1.

1972, c. 23, s. 557; 1996, c. 39, s. 197; 1997, c. 3, s. 71; 2001, c. 7, s. 87.