I-3 - Taxation Act

Section 965.1 Disposition versions

2017-12-07

965.1. (Repealed).

1979, c. 14, s. 4; 1981, c. 31, s. 211; 1982, c. 48, s. 341; 1983, c. 44, s. 37; 1984, c. 15, s. 212; 1984, c. 35, s. 20; 1986, c. 15, s. 135; 1987, c. 21, s. 36; 1987, c. 67, s. 175; 1988, c. 4, s. 82; 1989, c. 5, s. 159; 1990, c. 7, s. 85; 1992, c. 1, s. 87; 1993, c. 19, s. 75; 1993, c. 64, s. 97; 1995, c. 1, s. 97; 1995, c. 63, s. 99; 1996, c. 39, s. 246; 1997, c. 3, s. 43; 1997, c. 85, s. 203; 2000, c. 39, s. 105; 2001, c. 53, s. 204; 2002, c. 9, s. 28; 2002, c. 40, s. 89; 2002, c. 45, s. 521; 2003, c. 9, s. 123; 2004, c. 21, s. 224; 2004, c. 37, s. 90; 2005, c. 38, s. 214; 2006, c. 13, s. 71; 2017, c. 29, s. 166.

2006-06-13

965.1. In this Title,

(a)  “assets” means the assets of a corporation as determined under sections 965.3 to 965.3.2 and 965.4.1.2;

(b)  “qualifying share” means a share that is not referred to in section 965.9.4 or 965.9.7.0.1 and meeting the requirements of any of sections 965.7, 965.9, 965.9.1.0.0.1, 965.9.1.0.1 to 965.9.1.0.6 and 965.9.1.1 and, with the necessary modifications, a fraction of such a share not reimbursed;

(b.0.1)  “common share with voting rights” means a common share carrying a right to vote in all circumstances in the issuing corporation that is neither a common share with full voting rights nor a subordinate voting share;

(b.1)  (paragraph repealed);

(b.2)  (paragraph repealed);

(b.3)  “valid share” means a share described in section 965.9.7.1 or 965.9.7.2;

(c)  (paragraph repealed);

(c.1)  “paid-up capital”

i.  in respect of a share of the capital stock of a corporation means the amount appearing in its books in the capital stock account in respect of that share and any amount appearing elsewhere in its books and received in consideration for the issue of that share, and

ii.  in respect of a subscription right in a share of the capital stock of a corporation means the amount appearing in its books in the capital stock account in respect of that right and received in consideration for the issue of that right;

(d)  (paragraph repealed);

(d.1)  (paragraph repealed);

(e)  (paragraph repealed);

(f)  “dealer” means a dealer, within the meaning defined in section 5 of the Securities Act (chapter V-1.1), having an establishment in Québec and registered with the Autorité des marchés financiers and, after 30 September 1983, an unincorporated mutual fund or a mutual fund within the meaning of the said Act and an insurer, a bank, a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on therein the business of offering its services as trustee, a savings and credit union and any other prescribed person;

(g)  “adjusted cost” means the adjusted cost of a share, qualifying security or qualifying non-guaranteed convertible security as determined under sections 965.6 to 965.6.0.5;

(g.1)  “non-guaranteed convertible security issue” means the distribution of any non-guaranteed convertible security in accordance with a receipt granted after 2 May 1991 by the Autorité des marchés financiers and in respect of which the application for a receipt has been filed before 13 June 2003;

(h)  “public share issue” means the distribution of a share or subscription right in a share made in accordance with a receipt from the Autorité des marchés financiers, provided that the application for a receipt has been filed before 13 June 2003, or in accordance with an exemption from filing a prospectus provided for in section 52 or 263 of the Securities Act or, if section 965.9.1.1 applies, in section 51 of that Act, provided that the distribution has been made before 13 June 2003;

(h.0.1)  “public security issue” means the distribution of any security in accordance with a receipt or an exemption from filing a prospectus granted by the Autorité des marchés financiers and in respect of which the application for a receipt or an exemption from filing a prospectus has been filed before 13 June 2003;

(h.0.1.1)  “convertible security issue” means the distribution of a convertible security in accordance with a receipt or an exemption from filing a prospectus granted by the Autorité des marchés financiers and in respect of which the application for a receipt or an exemption from filing a prospectus has been filed before 13 June 2003;

(h.0.2)  “investment fund” means an investment fund described in section 965.6.21;

(h.1)  “investment group” means a group of individuals described in section 965.6.1;

(h.2)  “stock ownership plan” means a plan described in section 965.6.8;

(i)  “stock savings plan” means an arrangement described in section 965.2;

(j)  “total income”, in respect of an individual for a year means the amount by which the individual’s income for the year that would be determined under section 28 but for paragraph k.0.1 of section 311, section 311.1 where that section applies to a social assistance payment other than a payment received as last resort financial assistance under the Act respecting income support, employment assistance and social solidarity (chapter S-32.001) or as similar government assistance, and paragraph a of section 317 where that paragraph refers to the amount of any supplement or allowance received under the Old Age Security Act (Revised Statutes of Canada, 1985, chapter O-9) or to a payment similar to such a supplement or allowance made under a law of a province, exceeds the amount the individual deducts for the year in computing the individual’s taxable income under Titles VI.5 and VI.5.1 of Book IV;

(j.0.0.1)  “venture capital corporation” means a corporation

i.  whose main activity consists in investing funds in the form of shares of the capital stock of another corporation,

ii.  that generally participates in the management of the other corporation in which it invests funds,

iii.  whose funds it invests in another corporation are generally not guaranteed by the assets of the other corporation, and

iv.  whose initial investment in another corporation does not exceed 20% of its funds available for investments of that kind;

(j.0.1)  “qualified corporation” means a corporation mentioned in any of sections 965.10, 965.11.1, 965.11.5, 965.11.6 and 965.11.7.1 and not referred to in sections 965.11.11 to 965.11.20 or governed by an Act establishing a labour-sponsored fund, by the Act respecting Québec business investment companies (chapter S-29.1) or by the Act constituting Capital régional et coopératif Desjardins (chapter C-6.1);

(j.0.2)  “growth corporation” means a corporation described in any of sections 965.17.2 to 965.17.5 that is not governed by one of the Acts mentioned in paragraph j.0.1;

(j.0.3)  (paragraph repealed);

(j.1)  “security” means any investment in an investment fund;

(j.2)  “qualifying security” means a security meeting the requirements of section 965.9.8;

(j.3)  “valid qualifying security” in respect of a year means a qualifying security acquired by an individual in that year and held without interruption, throughout that part of the year which follows the acquisition, in a stock savings plan of which the individual is beneficiary;

(j.4)  “non-guaranteed convertible security” means a debenture or non-guaranteed preferred share, other than a qualifying share, debenture or preferred share issued as part of a convertible security issue, that may be converted at any time by the holder only into a common share with voting rights;

(j.5)  “qualifying non-guaranteed convertible security” means a non-guaranteed convertible security not referred to in section 965.9.8.5 or 965.9.8.10 and meeting the requirements of section 965.9.8.1;

(k)  “negotiable instrument” means any form of investment contemplated in section 1 of the Securities Act, disregarding the exception provided in subparagraph 3 of the first paragraph of that section;

(l)  “convertible security” means a debenture or preferred share, other than a qualifying share, that has been acquired for money consideration as part of a convertible security issue or acquired in replacement or substitution for a convertible security and that may be converted by the holder only into a common share with voting rights, a common share with full voting rights or a subordinate voting share.

1979, c. 14, s. 4; 1981, c. 31, s. 211; 1982, c. 48, s. 341; 1983, c. 44, s. 37; 1984, c. 15, s. 212; 1984, c. 35, s. 20; 1986, c. 15, s. 135; 1987, c. 21, s. 36; 1987, c. 67, s. 175; 1988, c. 4, s. 82; 1989, c. 5, s. 159; 1990, c. 7, s. 85; 1992, c. 1, s. 87; 1993, c. 19, s. 75; 1993, c. 64, s. 97; 1995, c. 1, s. 97; 1995, c. 63, s. 99; 1996, c. 39, s. 246; 1997, c. 3, s. 43; 1997, c. 85, s. 203; 2000, c. 39, s. 105; 2001, c. 53, s. 204; 2002, c. 9, s. 28; 2002, c. 40, s. 89; 2002, c. 45, s. 521; 2003, c. 9, s. 123; 2004, c. 21, s. 224; 2004, c. 37, s. 90; 2005, c. 38, s. 214; 2006, c. 13, s. 71.

2006-03-01

965.1. In this Title,

(a)  "assets" means the assets of a corporation as determined under sections 965.3 to 965.3.2 and 965.4.1.2;

(b)  "qualifying share" means a share that is not referred to in section 965.9.4 or 965.9.7.0.1 and meeting the requirements of any of sections 965.7, 965.9, 965.9.1.0.0.1, 965.9.1.0.1 to 965.9.1.0.6 and 965.9.1.1 and, with the necessary modifications, a fraction of such a share not reimbursed;

(b.0.1)  "common share with voting rights" means a common share carrying a right to vote in all circumstances in the issuing corporation that is neither a common share with full voting rights nor a subordinate voting share;

(b.1)  (paragraph repealed);

(b.2)  (paragraph repealed);

(b.3)  "valid share" means a share described in section 965.9.7.1 or 965.9.7.2;

(c)  (paragraph repealed);

(c.1)  "paid-up capital"

i.  in respect of a share of the capital stock of a corporation means the amount appearing in its books in the capital stock account in respect of that share and any amount appearing elsewhere in its books and received in consideration for the issue of that share, and

ii.  in respect of a subscription right in a share of the capital stock of a corporation means the amount appearing in its books in the capital stock account in respect of that right and received in consideration for the issue of that right;

(d)  (paragraph repealed);

(d.1)  (paragraph repealed);

(e)  (paragraph repealed);

(f)  "dealer" means a dealer, within the meaning defined in section 5 of the Securities Act (chapter V-1.1), having an establishment in Québec and registered with the Autorité des marchés financiers and, after 30 September 1983, an unincorporated mutual fund or a mutual fund within the meaning of the said Act and an insurer, a bank, a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on therein the business of offering its services as trustee, a savings and credit union and any other prescribed person;

(g)  "adjusted cost" means the adjusted cost of a share, qualifying security or qualifying non-guaranteed convertible security as determined under sections 965.6 to 965.6.0.5;

(g.1)  "non-guaranteed convertible security issue" means the distribution of any non-guaranteed convertible security in accordance with a receipt granted after 2 May 1991 by the Autorité des marchés financiers;

(h)  "public share issue" means the distribution of a share or subscription right in a share made in accordance with a receipt from the Autorité des marchés financiers or an exemption from filing a prospectus provided for in section 52 or 263 of the Securities Act or, where section 965.9.1.1 applies, in section 51 of that Act;

(h.0.1)  "public security issue" means the distribution of any security in accordance with a receipt or an exemption from filing a prospectus granted by the Autorité des marchés financiers;

(h.0.1.1)  "convertible security issue" means the distribution of a convertible security in accordance with a receipt or an exemption from filing a prospectus granted by the Autorité des marchés financiers;

(h.0.2)  "investment fund" means an investment fund described in section 965.6.21;

(h.1)  "investment group" means a group of individuals described in section 965.6.1;

(h.2)  "stock ownership plan" means a plan described in section 965.6.8;

(i)  "stock savings plan" means an arrangement described in section 965.2;

(j)  "total income", in respect of an individual for a year means the amount by which the individual’s income for the year that would be determined under section 28 but for paragraph k.0.1 of section 311, section 311.1 where that section applies to a social assistance payment other than a payment received as last resort financial assistance under the Act respecting income support, employment assistance and social solidarity (chapter S-32.001) or as similar government assistance, and paragraph a of section 317 where that paragraph refers to the amount of any supplement or allowance received under the Old Age Security Act (Revised Statutes of Canada, 1985, chapter O-9) or to a payment similar to such a supplement or allowance made under a law of a province, exceeds the amount the individual deducts for the year in computing the individual’s taxable income under Titles VI.5 and VI.5.1 of Book IV;

(j.0.0.1)  "venture capital corporation" means a corporation

i.  whose main activity consists in investing funds in the form of shares of the capital stock of another corporation,

ii.  that generally participates in the management of the other corporation in which it invests funds,

iii.  whose funds it invests in another corporation are generally not guaranteed by the assets of the other corporation, and

iv.  whose initial investment in another corporation does not exceed 20% of its funds available for investments of that kind;

(j.0.1)  "qualified corporation" means a corporation mentioned in any of sections 965.10, 965.11.1, 965.11.5, 965.11.6 and 965.11.7.1 and not referred to in sections 965.11.11 to 965.11.20 or governed by an Act establishing a labour-sponsored fund, by the Act respecting Québec business investment companies (chapter S-29.1) or by the Act constituting Capital régional et coopératif Desjardins (chapter C-6.1);

(j.0.2)  "growth corporation" means a corporation described in any of sections 965.17.2 to 965.17.5 that is not governed by one of the Acts mentioned in paragraph j.0.1;

(j.0.3)  (paragraph repealed);

(j.1)  "security" means any investment in an investment fund;

(j.2)  "qualifying security" means a security meeting the requirements of section 965.9.8;

(j.3)  "valid qualifying security" in respect of a year means a qualifying security acquired by an individual in that year and held without interruption, throughout that part of the year which follows the acquisition, in a stock savings plan of which the individual is beneficiary;

(j.4)  "non-guaranteed convertible security" means a debenture or non-guaranteed preferred share, other than a qualifying share, debenture or preferred share issued as part of a convertible security issue, that may be converted at any time by the holder only into a common share with voting rights;

(j.5)  "qualifying non-guaranteed convertible security" means a non-guaranteed convertible security not referred to in section 965.9.8.5 or 965.9.8.10 and meeting the requirements of section 965.9.8.1;

(k)  "negotiable instrument" means any form of investment contemplated in section 1 of the Securities Act, disregarding the exception provided in subparagraph 3 of the first paragraph of that section;

(l)  "convertible security" means a debenture or preferred share, other than a qualifying share, that has been acquired for money consideration as part of a convertible security issue or acquired in replacement or substitution for a convertible security and that may be converted by the holder only into a common share with voting rights, a common share with full voting rights or a subordinate voting share.

1979, c. 14, s. 4; 1981, c. 31, s. 211; 1982, c. 48, s. 341; 1983, c. 44, s. 37; 1984, c. 15, s. 212; 1984, c. 35, s. 20; 1986, c. 15, s. 135; 1987, c. 21, s. 36; 1987, c. 67, s. 175; 1988, c. 4, s. 82; 1989, c. 5, s. 159; 1990, c. 7, s. 85; 1992, c. 1, s. 87; 1993, c. 19, s. 75; 1993, c. 64, s. 97; 1995, c. 1, s. 97; 1995, c. 63, s. 99; 1996, c. 39, s. 246; 1997, c. 3, s. 43; 1997, c. 85, s. 203; 2000, c. 39, s. 105; 2001, c. 53, s. 204; 2002, c. 9, s. 28; 2002, c. 40, s. 89; 2002, c. 45, s. 521; O.C. 45-2004; 2003, c. 9, s. 123; 2004, c. 21, s. 224; 2004, c. 37, s. 90; 2005, c. 38, s. 214.