Subsection 6205(1)
Administrative Policy
17 August 1995 External T.I. 9514985 - PRESCRIBED SHARES - CAPITAL GAINS EXEMPTION
Where the share capital of a corporation is divided into several classes of common shares, and the dividends that may be declared and paid on each...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6205 - Subsection 6205(2) | 13 |
7 June 1990 Memorandum (November 1990 Access Letter, ¶1529)
Common shares which from the time of their issue were made convertible into preferred shares in order to facilitate an eventual estate freeze...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(9) | 30 |
2 March 1990 T.I. 5-9495 (August 1990 Access Letter, ¶1381)
A right of acquisition set out in the articles will not ipso facto disqualify the share as a prescribed share if such provision in the articles...
Subsection 6205(2)
Administrative Policy
10 October 2014 APFF Roundtable Q. 19, 2014-0538041C6 F - 2014 APFF Roundtable, Q. 19 - Stock dividend
Mr. X holds all 100 of Opco's Class A shares with a fair market value of $1,000,000 and nominal ACB and PUC. Opco pays a stock dividend comprising...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1.1) | not engaged if stock dividend is proportional | 211 |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) | SI apportionment to stock dividend prefs | 251 |
| Tax Topics - Income Tax Act - Section 74.4 - Subsection 74.4(2) | non-application to stock dividend, cf. s. 86 reorg | 255 |
11 October 2013 APFF Roundtable, 2013-0496511C6 F - Actions prescrites
Situation 1
Opco is controlled by three brothers and its shares are held also by four minority shareholders (the "First Shareholders") who deal...
5 October 2012 Roundtable, 2012-0454021C6 F - Expiration d'un arrangement
An employee who subscribed directly for treasury shares, and subsequently transferred them to a new corporation could benefit from the Reg 6205(2)...
17 August 1995 External T.I. 9514985 - PRESCRIBED SHARES - CAPITAL GAINS EXEMPTION
The word "person" in Regulation 6205(2)(a) does not include a partnership.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6205 - Subsection 6205(1) | 67 |
31 March 1993 T.I. (Tax Window, No. 30, p. 5, ¶2462)
The test in Regulation 6205(2)(a)(ii)(A) would not be met where two individuals each owning ½ of the common shares of a corporation exchange...
1992 A.P.F.F. Annual Conference, Q. 6 (January - February 1993 Access Letter, p. 52)
Adverse comments on a scheme to retroactively make non-prescribed shares qualify as prescribed shares.
15 June 1992 T.I. 920755 (December 1992 Access Letter, p. 23, ¶C109-124)
Re application of Regulation 6205(2) where an individual exchanges his common shares for preferred shares under an s. 86(1) reorganization, then...
24 February 1992 T.I. (December 1992 Access Letter, p. 22, ¶C109-123, Tax Window, No. 17, p. 4, ¶1762)
Where an individual transferred the common shares of Opco to Newco in consideration for preferred shares with the intention of having Newco issue...
16 September 1991 T.I. (Tax Window, No. 9, p. 8, ¶1449)
The exemption in Regulation 6205(2)(a) was not available where increases in the value of the corporation were intended to accrue to shares...
5 September 1990 T.I. (Tax Window, Prelim. No. 1, p. 13, ¶1032)
Three examples of situations where the exception in Regulation 6205(2)(a) is not satisfied.
31 January 1990 T.I. (June 1990 Access Letter, ¶1269)
Where the share capital of Opco is reorganized under s. 86 by Father exchanging all his common shares for redeemable preference shares, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(8) | 90 |
4 January 1990 T.I. (June 1990 Access Letter, ¶1269)
Following a reorganization described in s. 6205(2), a transfer of the preferred shares to another corporation would disqualify the shares of...
Paragraph 6205(2)(a)
Subparagraph 6205(2)(a)(i)
Administrative Policy
27 May 2004 External T.I. 2003-0031231E5 F - Actions visées par règlement-gel successoral
Three brothers (A, B and C), who were the equal common shareholders of ABC, each effected an estate freeze in favour of a discretionary trust for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6205 - Subsection 6205(2) - Paragraph 6205(2)(a) - Subparagraph 6205(2)(a)(ii) - Clause 6205(2)(a)(ii)(A) - Subclause 6205(2)(a)(ii)(A)(II) | trusts in which nieces and nephews were beneficiaries nonetheless were deemed NAL for purposes of satisfying Reg. 6205(2)(a)(ii)(A)(II) | 310 |
Subparagraph 6205(2)(a)(ii)
Clause 6205(2)(a)(ii)(A)
Subclause 6205(2)(a)(ii)(A)(II)
Administrative Policy
27 May 2004 External T.I. 2003-0031231E5 F - Actions visées par règlement-gel successoral
Three brothers (A, B and C), who were the equal common shareholders of ABC, each effected an estate freeze in favour of a discretionary trust for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6205 - Subsection 6205(2) - Paragraph 6205(2)(a) - Subparagraph 6205(2)(a)(i) | test satisfied where the purpose was solely estate-freezing | 103 |
Subsection 6205(4)
Administrative Policy
18 October 1991 Memorandum (Tax Window, No. 11, p. 15, ¶1528)
Regulation 6205(4)(c) does not apply if a preferred share is issued in substitution for a preferred share previously issued in an estate freeze.