Marginal note:Definitions
204 In this Part,
equity share
action à revenu variable
equity share means
(a) a share, other than an excluded share or a non-participating share, the owner of which has, as owner thereof, a right
(i) to a dividend, and
(ii) to a part of the surplus of the corporation after repayment of capital and payment of dividend arrears on the redemption of the share, a reduction of the capital of the corporation or the winding-up of the corporation,
at least as great, in any event, as the right of the owner of any other share, other than a non-participating share, of the corporation, when the magnitude of the right in each case is expressed as a rate based on the paid-up capital value of the share to which the right relates, or
(b) a share, other than an excluded share or a non-participating share, the owner of which has, as owner thereof, a right
(i) to a dividend, after a dividend at a rate not in excess of 12% per annum of the paid-up capital value of each share has been paid to the owners of shares of a class other than the class to which that share belongs, and
(ii) to a part of the surplus of the corporation after repayment of capital and payment of dividend arrears on the redemption of the share, a reduction of the capital of the corporation or the winding-up of the corporation, after a payment of a part of the surplus at a rate not in excess of 10% of the paid-up capital value of each share has been made to the owners of shares of a class other than the class to which that share belongs,
at least as great, in any event, as the right of the owner of any other share, other than a non-participating share, of the corporation, when the magnitude of the right in each case is expressed as a rate based on the paid-up capital value of the share to which the right relates; (action à revenu variable)
excluded share
action exclue
excluded share means each share of the capital stock of a private corporation where
(a) the paid-up capital of the corporation that is represented by all its issued and outstanding shares that would, but for this definition, be equity shares is less than 50% of the paid-up capital of the corporation that is represented by all its issued and outstanding shares other than non-participating shares, or
(b) a non-participating share of the corporation is issued and outstanding and the owner of which has, as owner thereof, a right to a dividend
(i) at a fixed annual rate in excess of 12%, or
(ii) at an annual rate not in excess of a fixed maximum annual rate, if the fixed maximum annual rate is in excess of 12%,
when the right to the dividend is expressed as a rate based on the paid-up capital value of the share to which the right relates; (action exclue)
initial base
base initiale
initial base of a trust means the total of the values of all initial non-qualified investments held by the trust on December 21, 1966 when each such investment is valued at the lower of
(a) its cost to the trust, and
(b) its fair market value on December 21, 1966; (base initiale)
initial non-qualified investment
placement initial non admissible
initial non-qualified investment of a trust means an investment held by the trust on December 21, 1966 that was, on that date, a non-qualified investment but does not include
(a) any interest in a life insurance policy, or
(b) an equity share that would be a qualified investment if the date of acquisition of the share were December 21, 1966; (placement initial non admissible)
non-participating share
action non participante
non-participating share means
(a) in the case of a private corporation, a share the owner of which is not entitled to receive, as owner thereof, any dividend, other than a dividend, whether cumulative or not,
(i) at a fixed annual rate or amount, or
(ii) at an annual rate or amount not in excess of a fixed annual rate or amount, and
(b) in the case of a corporation other than a private corporation, any share other than a common share; (action non participante)
non-qualified investment
placement non admissible
non-qualified investment means property that is not a qualified investment for a trust governed by a deferred profit sharing plan or revoked plan within the meaning of the definition qualified investment in this subsection; (placement non admissible)
paid-up capital value
valeur en capital versé
paid-up capital value of a share means the amount determined by the formula
A/B
where
- A
- is the paid-up capital of the corporation that is represented by the shares of the class to which that share belongs, and
- B
- is the number of shares of that class that are in fact issued and outstanding;
qualified investment
placement admissible
qualified investment for a trust governed by a deferred profit sharing plan or revoked plan means
(a) money (other than money the fair market value of which exceeds its stated value as legal tender in the country of issuance or money that is held for its numismatic value) and deposits (within the meaning assigned by the Canada Deposit Insurance Corporation Act or with a branch in Canada of a bank) of such money standing to the credit of the trust,
(b) bonds, debentures, notes, mortgages, hypothecary claims or similar obligations described in clause 212(1)(b)(ii)(C), whether issued before, on or after April 15, 1966,
(c) bonds, debentures, notes or similar obligations (other than those described in paragraph 147(2)(c))
(i) issued by a corporation the shares of which are listed on a prescribed stock exchange in Canada, or
(ii) issued by an authorized foreign bank and payable at a branch in Canada of the bank,
(d) shares listed on a prescribed stock exchange in Canada,
(e) equity shares of a corporation by which, before the date of acquisition by the trust of the shares, payments have been made in trust to a trustee under the plan for the benefit of beneficiaries thereunder, if the shares are of a class in respect of which
(i) there is no restriction on their transferability, and
(ii) in each of 4 taxation years of the corporation in the period of the corporation’s 5 consecutive taxation years that ended less than 12 months before the date of acquisition of the shares by the trust, and in the corporation’s last taxation year in that period, the corporation
(A) paid a dividend on each share of the class of an amount not less than 4% of the cost per share of the shares to the trust, or
(B) had earnings attributable to the shares of the class of an amount not less than the amount obtained when 4% of the cost per share to the trust of the shares is multiplied by the total number of shares of the class that were outstanding immediately after the acquisition,
(f) guaranteed investment certificates issued by a trust company incorporated under the laws of Canada or of a province,
(g) investment contracts described in subparagraph (b)(ii) of the definition retirement savings plan in subsection 146(1) and issued by a corporation approved by the Governor in Council for the purposes of that subparagraph,
(h) shares listed on a prescribed stock exchange in a country other than Canada, and
(i) such other investments as may be prescribed by regulations of the Governor in Council made on the recommendation of the Minister of Finance; (placement admissible)
revoked plan
régime dont l’agrément est retiré
revoked plan means a deferred profit sharing plan the registration of which has been revoked by the Minister pursuant to subsection 147(14) or 147(14.1). (régime dont l’agrément est retiré)
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 204
- 1994, c. 7, Sch. III, s. 20(F)
- 2001, c. 17, ss. 168, 223
- Date modified: