I-3 - Taxation Act

Section 1049.14.25 Disposition versions

2021-06-04

1049.14.25. For the purposes of this section and sections 1049.14.26 to 1049.14.31,

“authorized investment certificate” has the meaning assigned by section 776.1.36;

“balance of the penalty account payable” of a corporation, at any time, in relation to an authorized investment certificate means an amount equal to the amount by which its penalty account payable in relation to the certificate at that time exceeds the aggregate of all amounts each of which is the amount determined under subparagraph b of the second paragraph of any of sections 1049.14.26 to 1049.14.29 in relation to the certificate at a time preceding that time;

“eligible investment” has the meaning assigned by section 776.1.36;

“penalty account payable” of a corporation, at any time, in relation to an authorized investment certificate, means the aggregate of all amounts each of which is equal to the amount by which the amount that would be deductible by another corporation under section 776.1.38 in computing its tax payable for the particular taxation year in which it acquires shares of the capital stock of the corporation in relation to the certificate if the other corporation were a qualified investor for the particular year and if it had sufficient tax payable under this Part for that particular year exceeds the amount that would be deductible by the other corporation under section 776.1.38 in computing its tax payable for that particular year if it were a qualified investor for the particular year, if it had sufficient tax payable under this Part for the particular year and if no reference were made to

(a)  an eligible investment made by the other corporation in relation to the certificate, where the corporation and the other corporation are associated with each other at a time that precedes the time referred to in the portion before this paragraph and that occurs in the particular year or in a taxation year that begins in the 48-month period following the end of the particular year; or

(b)  the shares acquired by the other corporation in connection with an eligible investment in relation to the certificate that are disposed of or exchanged at a time that precedes the time referred to in the portion before paragraph a and that occurs before the end of the 60-month period that begins on the day they are issued, otherwise than by reason of the other corporation’s or the corporation’s bankruptcy or insolvency, the unilateral redemption of the share by the corporation, or the redemption of the share by the corporation at the other corporation’s request where the law confers on it the right to demand that all its shares be redeemed;

“qualified investor” has the meaning assigned by section 776.1.36.

2021, c. 18, s. 148.