[...]
(12) In this section,
obligation means a bond, debenture, bill, note, mortgage, hypothecary claim or agreement of sale; (obligation)
(16) For the purposes of this section, the actual cost to an individual, as of any particular time after 1971, of any share of the capital stock of a corporation that was
(b) acquired by the individual in a taxation year before 1972 under an agreement referred to in subsection 85a(1) of the former Act as it read in its application to that taxation year,
(21) Where, after May 6, 1974, there has been an amalgamation (within the meaning assigned by section 87 of the amended Act) of two or more corporations (each of which is in this subsection referred to as a “predecessor corporation”) to form one corporate entity (in this subsection referred to as the “new corporation”), and
(a) any shareholder (except any predecessor corporation) owned shares of the capital stock of a predecessor corporation on December 31, 1971 and thereafter without interruption until immediately before the amalgamation,
(c) no consideration was received by the shareholder for the disposition of the old shares on the amalgamation other than shares of one class of the capital stock of the new corporation (in this subsection referred to as the “new shares”), and
(c.1) the cost of the new shares received by the shareholder because of the amalgamation was determined otherwise than because of paragraph 87(4)(e) of the amended Act,
(d) the property that was the old shares shall be deemed not to have been disposed of by the shareholder because of the amalgamation but to have been altered, in form only, because of the amalgamation and to have continued in existence in the form of the new shares, and
(e) the property that is the new shares shall be deemed not to have been acquired by the shareholder because of the amalgamation but to have been in existence prior thereto in the form of the old shares that were altered, in form only, because of the amalgamation.
