I-3 - Taxation Act

Section 1117.1 Disposition versions

2006-03-01

1117.1. Where, at any time, it may reasonably be considered that a corporation, having regard to all the circumstances, including the terms and conditions of the shares of the capital stock of the corporation, was established or exists primarily for the benefit of persons not resident in Canada, the corporation is deemed not to be a mutual fund corporation after that time unless

(a)  throughout the period that begins on the later of 21 February 1990 and the day of its incorporation and ends at that time, all or substantially all of its property consisted of property other than property that would be taxable Canadian property if section 1094 were read without reference to paragraph b thereof; or

(b)  the corporation has not issued a share, other than a share issued as a stock dividend, of its capital stock after 20 February 1990 and before that time to a person that, after reasonable inquiry, it had reason to believe was not resident in Canada, except where the share was issued to that person pursuant to an agreement in writing entered into before 21 February 1990.

1993, c. 16, s. 352; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 2004, c. 8, s. 196.