I-3 - Taxation Act

Section 502.0.1 Disposition versions

2015-10-21

502.0.1. Notwithstanding section 502, where a dividend that, but for this section, would be a capital dividend is paid on a share of the capital stock of a corporation and the share, or another share for which the share was substituted, was acquired by the holder thereof in a transaction or as part of a series of transactions one of the main purposes of which was to receive the dividend, the following rules apply:

(a)  for the purposes of this Act, except section 503.0.1, the dividend is deemed to be received by the shareholder and paid by the corporation as a taxable dividend and not as a capital dividend; and

(b)  paragraph b of section 502 does not apply in respect of the dividend.

1990, c. 59, s. 181; 1997, c. 3, s. 71; 2015, c. 21, s. 178.

2006-03-01

502.0.1. Notwithstanding section 502, where a dividend that, but for this section, would be a capital dividend is paid on a share of the capital stock of a corporation and the share, or another share for which the share was substituted, was acquired by the holder thereof in a transaction or as part of a series of transactions one of the main purposes of which was to receive the dividend, the following rules apply:

(a)  for the purposes of this Act, except sections 503.0.1 to 503.2, the dividend is deemed to be received by the shareholder and paid by the corporation as a taxable dividend and not as a capital dividend;

(b)  paragraph b of section 502 does not apply in respect of the dividend.

1990, c. 59, s. 181; 1997, c. 3, s. 71.