Gabrielle M.R. Richards, "Capital Financing by Non-Residents: Section 116 Obligations", Corporate Structures and Groups, Vol. VII, No. 3, 2002, p. 375

Summary Under
Tax Topics - Income Tax Act - Section 116 - Subsection 116(5)

CCRA is of the view that the cost for purposes of s. 116(5)(c) of shares acquired pursuant to a convertible share is the amount credited to the stated capital account of the shares issued on conversion.

Summary Under
Tax Topics - Income Tax Act - Section 51 - Subsection 51(1)

CCRA is of the view that the cost for purposes of s. 116(5)(c) of shares acquired pursuant to a convertible share is the amount credited to the stated capital account of the shares issued on conversion.