Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2014-06-12 and last amended on 2014-01-01. Previous Versions

Marginal note:Definitions
  •  (1) In this section,

    “approved share”

    « action approuvée »

    “approved share” means a share of the capital stock of a prescribed labour-sponsored venture capital corporation, but does not include

    • (a) a share issued by a registered labour-sponsored venture capital corporation the venture capital business of which was discontinued before the time of the issue, and

    • (b) a share issued by a prescribed labour-sponsored venture capital corporation that is not a registered labour-sponsored venture capital corporation if, at the time of the issue, no province under the laws (described in section 6701 of the Income Tax Regulations) of which the corporation is registered or established provides assistance in respect of the acquisition of the share;

    “labour-sponsored funds tax credit”

    “labour-sponsored funds tax credit”[Repealed, 1997, c. 25, s. 37(2)]

    “net cost”

    « coût net »

    “net cost” to an individual of an approved share means the amount, if any, by which

    • (a) the amount of consideration paid by the individual to acquire or subscribe for the share

    exceeds

    • (b) the amount of any assistance (other than an amount included in computing a tax credit of the individual in respect of that share) provided or to be provided by a government, municipality or any public authority in respect of, or for the acquisition of, the share;

    “original acquisition”

    « acquisition initiale »

    “original acquisition” of a share means the first acquisition of the share, except that

    • (a) where the share is irrevocably subscribed and paid for before its first acquisition, subject to paragraphs (b) and (c), the original acquisition of the share is the first transaction whereby the share is irrevocably subscribed and paid for,

    • (b) a share is deemed never to have been acquired and never to have been irrevocably subscribed and paid for unless the first registered holder of the share is, subject to paragraph (c), the first person to either acquire or irrevocably subscribe and pay for the share, and

    • (c) for the purpose of this definition, a broker or dealer in securities acting in that capacity is deemed never to acquire or subscribe and pay for the share and never to be the registered holder of the share;

    “qualifying trust”

    « fiducie admissible »

    “qualifying trust” for an individual in respect of a share means

    • (a) a trust governed by a registered retirement savings plan, under which the individual is the annuitant, that is not a spousal or common-law partner plan (in this definition having the meaning assigned by subsection 146(1)) in relation to another individual,

    • (b) a trust governed by a registered retirement savings plan, under which the individual or the individual’s spouse or common-law partner is the annuitant, that is a spousal or common-law partner plan in relation to the individual or the individual’s spouse or common-law partner, if the individual and no other person claims a deduction under subsection (2) in respect of the share, or

    • (c) a trust governed by a TFSA of which the individual is the holder;

    “tax otherwise payable”

    « impôt payable par ailleurs »

    “tax otherwise payable” by an individual means the amount that, but for this section, would be the individual’s tax payable under this Part.

  • Marginal note:Amalgamations or mergers

    (1.1) Subsections 204.8(2) and 204.85(3) apply for the purpose of this section.

  • (2) [Repealed, 2013, c. 40, s. 59]

  • (3) and (4) [Repealed, 1999, c. 22, s. 49(3)]

  • (5) [Repealed, 2013, c. 40, s. 59]

  • Marginal note:Deemed original acquisition

    (5.1) If the Minister so directs, an original acquisition of an approved share that occurs in an individual’s taxation year (other than in the first 60 days of the year) is deemed for the purpose of this section to have occurred at the beginning of the year and not at the time it actually occurred.

  • (6) [Repealed, 2013, c. 40, s. 59]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 127.4;
  • 1994, c. 7, Sch. II, s. 105, Sch. VIII, s. 69, c. 8, s. 17;
  • 1997, c. 25, s. 37;
  • 1999, c. 22, s. 49;
  • 2000, c. 12, s. 142, c. 19, s. 36;
  • 2009, c. 2, s. 42;
  • 2013, c. 34, s. 270, c. 40, s. 59.