I-3 - Taxation Act

Section 965.10.3.2 Disposition versions

2017-12-07

965.10.3.2. (Repealed).

1997, c. 14, s. 163; 1999, c. 83, s. 140; 2000, c. 39, s. 115; 2001, c. 7, s. 169; 2004, c. 21, s. 231; 2017, c. 29, s. 166.

2006-03-01

965.10.3.2. For the purposes of section 965.10.3.1, where the subsidiary, in this section referred to as the “particular subsidiary”, does not meet the requirement of subparagraph b of the first paragraph of that section and a winding-up as described in section 556 of a subsidiary within the meaning of that section, in this section referred to as the “other subsidiary”, in respect of which the particular subsidiary is, immediately before the commencement of the winding-up, the parent, within the meaning of that section, commences or terminates within the 12-month period immediately preceding the commencement of the winding-up of the particular subsidiary, or commences before and terminates after that period, the requirement is replaced by the following requirements:

(a)  the particular subsidiary shall, immediately before the commencement of its winding-up, have not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders;

(b)  the other subsidiary shall have not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders

i.  throughout a 12-month period that includes the commencement of its winding-up and that is established as if the period from the commencement of its winding-up to the commencement of the winding-up of the particular subsidiary were applicable to the other subsidiary and not to the particular subsidiary, or

ii.  throughout a 6-month period that includes the commencement of its winding-up and that is established as if the period from the commencement of its winding-up to the commencement of the winding-up of the particular subsidiary were applicable to the other subsidiary and not to the particular subsidiary, where

(1)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

(2)  a class of shares of its capital stock is listed on a Canadian stock exchange immediately before the commencement of its winding-up, and

(3)  a class of shares of the capital stock of the corporation referred to in section 965.10.3.1 that makes an issue referred to therein is listed on a Canadian stock exchange on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

For the purposes of subparagraph i of subparagraph b of the first paragraph, the other subsidiary is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

(a)  a class of shares of its capital stock is, throughout the 12-month period immediately preceding the commencement of its winding-up, listed on a Canadian stock exchange; and

(b)  a person, other than such an insider or a person related thereto, or a partnership provides the other subsidiary, in the period referred to in subparagraph a, with services under a service contract and that other subsidiary would normally require the services of more than five full-time employees if those services were not provided.

For the purposes of the first paragraph, where the other subsidiary does not meet the requirement of subparagraph b of that paragraph and a winding-up as described in section 556 of a subsidiary within the meaning of that section, in this paragraph referred to as the “underlying subsidiary”, in respect of which the other subsidiary is, immediately before the commencement of the winding-up, the parent, within the meaning of that section, commences or terminates within the 12-month period immediately preceding the commencement of the winding-up of the other subsidiary, or commences before and terminates after that period, the other subsidiary is deemed to meet the requirement where the other subsidiary meets the requirement of subparagraph a of the first paragraph and the underlying subsidiary meets the requirement of subparagraph b of that paragraph, if

(a)  the other subsidiary is deemed to be the particular subsidiary in respect of the requirement of subparagraph a of the first paragraph; and

(b)  the underlying subsidiary is deemed to be the other subsidiary in respect of the requirement of subparagraph b of the first paragraph.

1997, c. 14, s. 163; 1999, c. 83, s. 140; 2000, c. 39, s. 115; 2001, c. 7, s. 169; 2004, c. 21, s. 231.