I-3 - Taxation Act

Section 1129.12.24 Disposition versions

2013-06-05

1129.12.24. Every qualified cooperative that carries out, after 23 June 2009 and before 1 January 2010, a block redemption of all of the outstanding qualifying securities of a class or, if applicable, of a series in a class of its capital stock it issued under the cooperative investment plan is required to pay for the calendar year 2009 a tax equal to 50% of the aggregate of all amounts each of which is the amount determined by the following formula in respect of each of those qualifying securities, unless the block redemption is described in the third paragraph:

[(1,826 - A)/1,826] × B.

In the formula in the first paragraph,

(a)  A is the number of days in the period that begins on the issue date of the qualifying security referred to in the first paragraph and that ends on the day on which the qualifying security is redeemed; and

(b)  B is the amount paid by the qualified cooperative for the redemption of the qualifying security.

The block redemption to which the first paragraph refers means a block redemption that

(a)  meets the requirements of section 8 of the cooperative investment plan in relation to an increase in the reserve;

(b)  is covered by an exemption granted by the Minister of Economic Development, Innovation and Export Trade under the first paragraph of section 10.3 of the cooperative investment plan; or

(c)  is an exchange operation described in the fourth paragraph.

The exchange operation to which subparagraph c of the third paragraph refers is a conversion of securities, an amalgamation or a reorganization of the capital stock, at the end of which a qualifying security is exchanged for consideration consisting only of preferred shares or fractions of such shares that meet the requirements of paragraphs 3 and 5 of section 6 of the cooperative investment plan.

2010, c. 25, s. 210; 2013, c. 10, s. 158.

2010-10-27

1129.12.24. Every qualified cooperative that carries out, after 23 June 2009 and before 1 January 2010, a block redemption of all of the outstanding qualifying securities it issued under the cooperative investment plan is required to pay for the calendar year 2009 a tax equal to 50% of the aggregate of all amounts each of which is the amount determined by the following formula in respect of each of those qualifying securities, unless the block redemption is described in the third paragraph:

[(1,826 - A)/1,826] × B.

In the formula in the first paragraph,

(a)  A is the number of days in the period that begins on the issue date of the qualifying security referred to in the first paragraph and that ends on the day on which the qualifying security is redeemed; and

(b)  B is the amount paid by the qualified cooperative for the redemption of the qualifying security.

The block redemption to which the first paragraph refers means a block redemption that

(a)  meets the requirements of section 8 of the cooperative investment plan in relation to an increase in the reserve;

(b)  is covered by an exemption granted by the Minister of Economic Development, Innovation and Export Trade under the first paragraph of section 10.3 of the cooperative investment plan; or

(c)  is an exchange operation described in the fourth paragraph.

The exchange operation to which subparagraph c of the third paragraph refers is a conversion of securities, an amalgamation or a reorganization of the capital stock, at the end of which a qualifying security is exchanged for consideration consisting only of preferred shares or fractions of such shares that meet the requirements of paragraphs 3 and 5 of section 6 of the cooperative investment plan.

2010, c. 25, s. 210.