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I-3 - Taxation Act
Section 1129.27.6
Disposition versions
1129.27.6. Subject to section 1129.27.7, where a share is redeemed or purchased by the Corporation less than seven years after its issue date, the individual referred to in section 776.1.5.0.11 or, as the case may be, the person to whom the share devolved as a consequence of the individual’s death, is required to pay, for the taxation year in which the redemption or purchase is made, a tax under this Part equal to the amount determined by the formula
[(2,556 − A)/2,556] × B.
In the formula provided for in the first paragraph,
(a) A is the number of days in the period that begins on the issue date of the share referred to in the first paragraph and that ends on the day on which the share is redeemed or purchased by agreement; and
(b) B is the lesser of
i. the product obtained by multiplying the percentage specified in the third paragraph by the amount paid for the purchase of the share by the individual referred to in the first paragraph, and
ii. the amount paid by the Corporation for the redemption or purchase by agreement of the share.
The percentage to which subparagraph i of subparagraph b of the second paragraph refers is
(a) (subparagraph repealed);
(b) 50%, if the share referred to in the first paragraph was issued before 1 March 2014;
(c) 45%, if the share referred to in the first paragraph was issued after 28 February 2014 and before 1 March 2016;
(d) 40%, if the share referred to in the first paragraph was issued after 29 February 2016 and before 1 March 2018;
(e) 35%, if the share referred to in the first paragraph was issued after 28 February 2018 and before 1 March 2021; or
(f) 30%, if the share referred to in the first paragraph was issued after 28 February 2021.
1129.27.6. Subject to section 1129.27.7, where a share is redeemed or purchased by the Corporation less than seven years after its issue date, the individual referred to in section 776.1.5.0.11 or, as the case may be, the person to whom the share devolved as a consequence of the individual’s death, is required to pay, for the taxation year in which the redemption or purchase is made, a tax under this Part equal to the amount determined by the formula
[(2,556 − A)/2,556] × B.
In the formula provided for in the first paragraph,
(a) A is the number of days in the period that begins on the issue date of the share referred to in the first paragraph and that ends on the day on which the share is redeemed or purchased by agreement; and
(b) B is the lesser of
i. the product obtained by multiplying the percentage specified in the third paragraph by the amount paid for the purchase of the share by the individual referred to in the first paragraph, and
ii. the amount paid by the Corporation for the redemption or purchase by agreement of the share.
The percentage to which subparagraph i of subparagraph b of the second paragraph refers is
(a) (subparagraph repealed);
(b) 50%, if the share referred to in the first paragraph was issued before 1 March 2014;
(c) 45%, if the share referred to in the first paragraph was issued after 28 February 2014 and before 1 March 2016;
(d) 40%, if the share referred to in the first paragraph was issued after 29 February 2016 and before 1 March 2018; or
(e) 35%, if the share referred to in the first paragraph was issued after 28 February 2018.
1129.27.6. Subject to section 1129.27.7, where a share is redeemed or purchased by the Corporation less than seven years after its issue date, the individual referred to in section 776.1.5.0.11 or, as the case may be, the person to whom the share devolved as a consequence of the individual’s death, is required to pay, for the taxation year in which the redemption or purchase is made, a tax under this Part equal to the amount determined by the formula
[(2,556 − A)/2,556] × B.
In the formula provided for in the first paragraph,
(a) A is the number of days in the period that begins on the issue date of the share referred to in the first paragraph and that ends on the day on which the share is redeemed or purchased by agreement; and
(b) B is the lesser of
i. the product obtained by multiplying the percentage specified in the third paragraph by the amount paid for the purchase of the share by the individual referred to in the first paragraph, and
ii. the amount paid by the Corporation for the redemption or purchase by agreement of the share.
The percentage to which subparagraph i of subparagraph b of the second paragraph refers is
(a) (subparagraph repealed);
(b) 50%, if the share referred to in the first paragraph was issued before 1 March 2014;
(c) 45%, if the share referred to in the first paragraph was issued after 28 February 2014 and before 1 March 2016; or
(d) 40%, if the share referred to in the first paragraph was issued after 29 February 2016.
1129.27.6. Subject to section 1129.27.7, where a share is redeemed or purchased by the Corporation less than seven years after its issue date, the individual referred to in section 776.1.5.0.11 or, as the case may be, the person to whom the share devolved as a consequence of the individual’s death, is required to pay, for the taxation year in which the redemption or purchase is made, a tax under this Part equal to the amount determined by the formula
[(2,556 − A)/2,556] × B.
In the formula provided for in the first paragraph,
(a) A is the number of days in the period that begins on the issue date of the share referred to in the first paragraph and that ends on the day on which the share is redeemed or purchased by agreement; and
(b) B is the lesser of
i. the product obtained by multiplying the percentage specified in the third paragraph by the amount paid for the purchase of the share by the individual referred to in the first paragraph, and
ii. the amount paid by the Corporation for the redemption or purchase by agreement of the share.
The percentage to which subparagraph i of subparagraph b of the second paragraph refers is
(a) 35%, if the share referred to in the first paragraph was issued after 23 March 2006 and before 10 November 2007;
(b) 50%, if the share referred to in the first paragraph was issued before 24 March 2006 or after 9 November 2007 and before 1 March 2014; or
(c) 45%, if the share referred to in the first paragraph was issued after 28 February 2014.
1129.27.6. Subject to section 1129.27.7, where a share is redeemed or purchased by the Corporation less than seven years after its issue date, the individual referred to in section 776.1.5.0.11 or, as the case may be, the person to whom the share devolved as a consequence of the individual’s death, is required to pay, for the taxation year in which the redemption or purchase is made, a tax under this Part equal to the amount determined by the formula
[(2,556 − A)/2,556] × B.
In the formula provided for in the first paragraph,
(a) A is the number of days in the period that begins on the issue date of the share referred to in the first paragraph and that ends on the day on which the share is redeemed or purchased by agreement; and
(b) B is the lesser of
i. the product obtained by multiplying the percentage specified in the third paragraph by the amount paid for the purchase of the share by the individual referred to in the first paragraph, and
ii. the amount paid by the Corporation for the redemption or purchase by agreement of the share.
The percentage to which subparagraph i of subparagraph b of the second paragraph refers is 35%, if the share referred to in the first paragraph was issued after 23 March 2006 and before 10 November 2007, and 50%, in any other case.
1129.27.6. Subject to section 1129.27.7, where a share is redeemed or purchased by the Corporation less than seven years after its issue date, the individual referred to in section 776.1.5.0.11 or, as the case may be, the person to whom the share devolved as a consequence of the individual’s death, is required to pay, for the taxation year in which the redemption or purchase is made, a tax under this Part equal to the amount determined by the formula
[(2,556 − A) / 2,556] × B.
In the formula provided for in the first paragraph,
(a) A is the number of days in the period that begins on the issue date of the share referred to in the first paragraph and that ends on the day on which the share is redeemed or purchased by agreement; and
(b) B is the lesser of
i. the product obtained by multiplying the percentage specified in the third paragraph by the amount paid for the purchase of the share by the individual referred to in the first paragraph, and
ii. the amount paid by the Corporation for the redemption or purchase by agreement of the share.
The percentage to which subparagraph i of subparagraph b of the second paragraph refers is 35%, if the share referred to in the first paragraph was issued after 23 March 2006, and 50%, in any other case.
1129.27.6. Subject to section 1129.27.7, where a share is redeemed or purchased by the Corporation less than seven years after its issue date, the individual referred to in section 776.1.5.0.11 or, as the case may be, the person to whom the share devolved as a consequence of the individual’s death, is required to pay, for the taxation year in which the redemption or purchase is made, a tax under this Part equal to the amount determined by the formula
[(2,556 - A) / 2,556] × B.
In the formula provided for in the first paragraph,
(a) A is the number of days in the period that begins on the issue date of the share referred to in the first paragraph and that ends on the day on which the share is redeemed or purchased by agreement; and
(b) B is the lesser of
i. half the amount paid for the purchase of the share by the individual referred to in the first paragraph, and
ii. the amount paid by the Corporation for the redemption or purchase by agreement of the share.
