I-3 - Taxation Act

Section 306.1 Disposition versions

2005-05-15

306.1. Despite any other provision of this Act, if a corporation disposes of a property to another corporation in a transaction to which paragraph l of subsection 1 of section 219 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) applies, the cost to it of a share of a particular class of the capital stock of the other corporation received by it as consideration for the property is deemed to be equal to the lesser of the cost of the share to the corporation otherwise determined immediately after the disposition and the amount by which the paid-up capital of that class increases because of the issuance of that share.

1982, c. 5, s. 65; 1997, c. 3, s. 71; 2009, c. 5, s. 107.