I-3 - Taxation Act

Section 578.3 Disposition versions

2006-03-01

578.3. The elements that the particular corporation must establish in accordance with paragraph e of section 578.1 are as follows:

(a)  compliance with the conditions set out in subparagraphs b and c of the first or second paragraph of section 578.2, according to whether or not the distribution is a prescribed distribution;

(b)  the fact that the particular corporation and the other corporation were never resident in Canada;

(c)  the date of the distribution;

(d)  the type and fair market value of each property distributed to a person resident in Canada;

(e)  the name and address of each person resident in Canada who received property with respect to the distribution; and

(f)  such other element as is required by the prescribed form.

The elements that the taxpayer must establish in accordance with paragraph f of section 578.1 are as follows:

(a)  the number, cost amount, determined without reference to this chapter, and the fair market value of the taxpayer’s original shares immediately before the distribution;

(b)  the number, and fair market value, of the taxpayer’s original shares and spin-off shares immediately after the distribution;

(c)  except where the taxpayer makes the election under subsection 2 of section 86.1 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) in the taxpayer’s fiscal return filed by the taxpayer under that Act for the year in which the distribution occurs, the amount of the distribution, the manner in which the distribution was reported by the taxpayer and the details of any subsequent disposition of an original share or spin-off share that are required for the purpose of determining any gain or loss from that disposition; and

(d)  such other element as is required by the prescribed form.

2004, c. 8, s. 116.