I-3 - Taxation Act

Section 564.1 Disposition versions

2006-03-01

564.1. For the purposes of sections 741 to 744.2.2, where the parent acquires pursuant to a winding-up described in section 556 a share owned by the subsidiary,

(a)  any taxable dividend received on that share by the subsidiary that was deductible in computing the subsidiary’s taxable income for a taxation year under sections 738 to 745 or section 845 is deemed to be a taxable dividend received by the parent that was deductible in computing the parent’s taxable income for a taxation year under the said sections 738 to 745 or section 845, as the case may be;

(b)  any dividend, other than a taxable dividend, received on a share by the subsidiary is deemed to have been received on the share by the parent; and

(c)  a share acquired by the parent from the subsidiary is deemed to have been owned by the parent throughout any period of time throughout which it was owned by the subsidiary.

1978, c. 26, s. 103; 1989, c. 77, s. 64; 1997, c. 3, s. 71; 2001, c. 7, s. 59.