I-3 - Taxation Act

Section 742.2 Disposition versions

2012-05-09

742.2. A qualified dividend received by a trust is not to be included under subparagraph i of subparagraph a or subparagraph ii of subparagraph b of the first paragraph of section 742 or subparagraph i of subparagraph a of the first paragraph of section 742.1 where the trust establishes that the dividend

(a)  was received

i.  in any case where the dividend was designated under section 666 or 667 by the trust, when the trust, the beneficiary and persons with whom the beneficiary was not dealing at arm’s length did not own in total more than 5% of the issued shares of any class of the capital stock of the corporation from which the dividend was received, or

ii.  in any other case, when the trust and persons with whom the trust was not dealing at arm’s length did not own in total more than 5% of the issued shares of any class of the capital stock of the corporation from which the dividend was received; and

(b)  was received on a share that the trust owned throughout the 365-day period that ended immediately before the disposition.

2001, c. 7, s. 92; 2012, c. 8, s. 104.

2006-03-01

742.2. No dividend received by a trust shall be included under subparagraph i of subparagraph a or subparagraph ii of subparagraph b of the first paragraph of section 742 or subparagraph i of subparagraph a of the first paragraph of section 742.1 where the trust establishes that the dividend

(a)  was received

i.  in any case where the dividend was designated under section 666 or 667 by the trust, when the trust, the beneficiary and persons with whom the beneficiary was not dealing at arm’s length did not own in total more than 5% of the issued shares of any class of the capital stock of the corporation from which the dividend was received, or

ii.  in any other case, when the trust and persons with whom the trust was not dealing at arm’s length did not own in total more than 5% of the issued shares of any class of the capital stock of the corporation from which the dividend was received; and

(b)  was received on a share that the trust owned throughout the 365-day period that ended immediately before the disposition.

2001, c. 7, s. 92.