Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
24(1)
ROUND TABLE - JUNE 1990
Question 11
May an election under subsection 70(6.2) be made with respect to a partial shareholding of a corporation? For example, a shareholder owns 1,000 shares of A Co. His will provides that on his death the shares are to be bequeathed absolutely to his spouse, in such a manner as to be subject to subsection 70(6). May an election under subsection 70(6.2) be made in respect of 100 of the shares, but not in respect of the other 900 shares?
The Department's Position
An election under subsection 70(6.2) may be made in respect of "any property of a deceased taxpayer." Since the word "property," as defined in subsection 248(1), includes a share, the Department is of the view that each of the capital stock of a corporation is a separate property in respect of which an election under subsection 70(6.2) may be made. Accordingly, in the above example, an election under subsection 70(6.2) may be made in respect of 100 shares of A Co., such that they will be subject 70(5), while the other 900 shares of A Co. will not be affected by the election such that they will be subject to subsection 70(6).
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1990
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1990
Email this Content