I-3 - Taxation Act

Section 965.10.4 Disposition versions

2017-12-07

965.10.4. (Repealed).

2002, c. 9, s. 29; 2004, c. 21, s. 232; 2017, c. 29, s. 166.

2006-03-01

965.10.4. For the purposes of section 965.10, where a period of at least 12 months has not elapsed between the time of the beginning of the carrying on of a particular business by a corporation and the date of the receipt for the final prospectus or of the exemption from filing a prospectus, and the particular business carried on by the corporation may, if the Minister so decides, be considered in fact to consist mainly in the continuance of a business or part of a business carried on by another taxpayer before the time of the beginning of the carrying on of the particular business by the corporation, the requirement in paragraph e of section 965.10 shall be replaced by the requirement to have, throughout the period from the time of the beginning of the carrying on of the particular business by the corporation to the date of the receipt for the final prospectus or the exemption from filing a prospectus, 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 and, immediately before the time of the beginning of the carrying on of the particular business by the corporation, for the other taxpayer to have had, in relation to that business or part of a business, not fewer than five full-time employees who are not insiders within the meaning of section 89 of that Act or persons related to such insiders

(a)  throughout a 12-month period that includes the time of the beginning of the carrying on of the particular business by the corporation and that is established as if the period from the time of the beginning of that carrying on of the particular business to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the other taxpayer and not to the corporation; or

(b)  throughout a 6-month period that includes the time of the beginning of the carrying on of the particular business by the corporation and that is established as if the period from the time of the beginning of that carrying on of the particular business to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the other taxpayer and not to the corporation, where

i.  the other taxpayer has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

ii.  a class of shares of the capital stock of the other taxpayer is listed on a Canadian stock exchange immediately before the time of the beginning of the carrying on of the particular business by the corporation, and

iii.  a class of shares of the capital stock of the corporation 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 the first paragraph, the continuance of a business or part of a business carried on by another taxpayer before the beginning of the carrying on, by a corporation, of the particular business results from

(a)  the acquisition or rental, by the corporation, of property from the other taxpayer who, throughout the part of the period described in subparagraph a or b of the first paragraph preceding that acquisition or rental, carried on a business in which the other taxpayer used that property; or

(b)  the carrying on, by the corporation, of a new business that may reasonably be considered in fact to consist mainly in the extension of a business or part of a business carried on by the other taxpayer.

For the purposes of subparagraph a of the first paragraph, the other taxpayer 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 preceding the time of the beginning of the carrying on of the particular business by the corporation, 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 taxpayer, in the period referred to in subparagraph a, with services under a service contract and that other taxpayer would normally require the services of more than five full-time employees if those services were not provided.

2002, c. 9, s. 29; 2004, c. 21, s. 232.