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Income Tax Act

Version of section 206.1 from 2004-08-31 to 2005-06-28:


Marginal note:Tax in respect of acquisition of shares

 Where at any time a taxpayer to which this Part applies makes an agreement (otherwise than as a consequence of the acquisition or writing by it of an option listed on a prescribed stock exchange) to acquire a share of the capital stock of a corporation (otherwise than from the corporation) at a price that may differ from the fair market value of the share at the time the share may be acquired, the taxpayer shall, in respect of each month during which the taxpayer is a party to the agreement, pay a tax under this Part equal to the total of all amounts each of which is the amount, if any, by which

  • (a) the amount of a dividend paid on the share at a time in the month at which the taxpayer is a party to the agreement

exceeds

  • (b) the amount, if any, of the dividend that is received by the taxpayer.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 206.1
  • 1994, c. 7, Sch. II, s. 167
  • 1998, c. 19, s. 211

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