Income Tax Act

Marginal note:Definitions

• 211.7 (1) The definitions in this section apply for the purposes of this Part.

  approved share

  action approuvée

  approved share has the meaning assigned by subsection 127.4(1). (action approuvée)

  labour-sponsored funds tax credit

  crédit d’impôt relatif à un fonds de travailleurs

  labour-sponsored funds tax credit in respect of a share is

  • (a) where the original acquisition of the share occurred before 1996, 20% of the net cost of the share on that acquisition;

  • (b) if the original acquisition of the share occurred after 1995 and before March 2, 2017, the amount that would be determined under subsection 127.4(6)  —  as that subsection would apply in respect of a claim made by the taxpayer under subsection 127.4(2) in respect of the original acquisition if subsection 127.4(6) were read without reference to paragraphs 127.4(6)(b) and (d)  —  in respect of the share; and

  • (c) in any other case, nil. (crédit d’impôt relatif à un fonds de travailleurs)

  net cost

  coût net

  net cost has the meaning assigned by subsection 127.4(1). (coût net)

  original acquisition

  acquisition initiale

  original acquisition has the meaning assigned by subsection 127.4(1). (acquisition initiale)

  qualifying exchange

  échange admissible

  qualifying exchange means an exchange by a taxpayer of an approved share, that is part of a series of Class A shares of the capital stock of a corporation, for another approved share, that is part of another series of Class A shares of the capital stock of the corporation, if

  • (a) the only consideration received by the taxpayer on the exchange is the other share; and

  • (b) the rights in respect of the series are identical except for the portion of the reserve (within the meaning assigned by subsection 204.8(1)) of the corporation that is attributable to each series. (échange admissible)

  qualifying trust

  fiducie admissible

  qualifying trust has the meaning assigned by subsection 127.4(1). (fiducie admissible)

  revoked corporation

  société radiée

  revoked corporation means a corporation the registration of which has been revoked under subsection 204.81(6). (société radiée)

• Marginal note:Amalgamations and mergers

  (2) For the purposes of this Part, where two or more corporations (each of which is referred to in this subsection as a “predecessor corporation”) amalgamate or merge to form a corporate entity deemed by paragraph 204.85(3)(d) to have been registered under Part X.3, the shares of each predecessor corporation are deemed not to be redeemed, acquired or cancelled by the predecessor corporation on the amalgamation or merger.

• Marginal note:Exchangeable shares

  (3) For the purposes of this Part and Part X.3, if an approved share of the capital stock of a corporation (referred to in this subsection as the “new share”) has been issued in exchange for another approved share (referred to in this subsection as the “original share”) in a qualifying exchange, the new share is deemed not to have been issued on the exchange and is deemed to have been issued at the time the corporation issued the original share.