I-3 - Taxation Act

Section 359.1 Disposition versions

2015-10-26

359.1. In this chapter, “flow-through share” means a share (other than a prescribed share) of the capital stock of a development corporation or a right (other than a prescribed right) to acquire such a share that is issued to a person under an agreement in writing entered into between the person and the development corporation under which the corporation, for consideration that does not include property to be exchanged or transferred by the person under the agreement in circumstances to which Division XIII of Chapter IV of Title IV or any of Chapters IV, V and VI of Title IX applies, agrees

(a)  to incur, in the period that begins on the day the agreement was entered into and ends 24 months after the end of the month that includes that day, Canadian exploration expenses or Canadian development expenses in an amount not less than the consideration for which the share or right is to be issued; and

(b)  to renounce, before 1 March of the first calendar year that begins after the period referred to in subparagraph a, in prescribed form to the person in respect of the share or right, an amount in respect of the Canadian exploration expenses or Canadian development expenses so incurred by it not exceeding the consideration received by the corporation for the share or right.

In this chapter, “selling instrument” in respect of flow-through shares means a prospectus, registration statement, offering memorandum, term sheet or other similar document that describes the terms of the offer, including the price and number of shares, pursuant to which a corporation offers to issue flow-through shares.

1988, c. 18, s. 27; 1993, c. 16, s. 142; 1995, c. 49, s. 81; 1997, c. 3, s. 71; 1998, c. 16, s. 119; 2002, c. 40, s. 35; 2004, c. 21, s. 76; 2005, c. 23, s. 51; 2015, c. 24, s. 60.

2006-03-01

359.1. In this chapter, “flow-through share” means a share, other than a prescribed share, of the capital stock of a development corporation that is issued to a person pursuant to an agreement in writing entered into between the person and the development corporation after 28 February 1986, under which the corporation agrees, for consideration that does not include property to be exchanged or transferred by the person under the agreement in circumstances in which Division XIII of Chapter IV of Title IV or any of Chapters IV, V and VI of Title IX applies,

(a)  to incur, in the period that begins on the day the agreement was entered into and ends 24 months after the end of the month that includes that day, Canadian exploration expenses or Canadian development expenses in an amount not less than the consideration for which the share is to be issued; and

(b)  to renounce, before 1 March of the first calendar year that begins after that period, in prescribed form to the person in respect of the share, an amount in respect of the Canadian exploration expenses or Canadian development expenses so incurred by it not exceeding the consideration received by the corporation for the share.

In this chapter, flow-through share includes a right of a person to have a share referred to in the first paragraph issued to him and any interest acquired in such a share by a person pursuant to an agreement referred to in the first paragraph.

In this chapter, “selling instrument” in respect of flow-through shares means a prospectus, registration statement, offering memorandum, term sheet or other similar document that describes the terms of the offer, including the price and number of shares, pursuant to which a corporation offers to issue flow-through shares.

1988, c. 18, s. 27; 1993, c. 16, s. 142; 1995, c. 49, s. 81; 1997, c. 3, s. 71; 1998, c. 16, s. 119; 2002, c. 40, s. 35; 2004, c. 21, s. 76; 2005, c. 23, s. 51.