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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Subject: PRESCRIBED SHARE - REMOVAL OF ATTRIBUTES Section(s): REG
6205(4)(e)]
ROUND TABLE - CGA - JANUARY 10, 1992
Officer: M P Sarazin
File: 7-9122018
QUESTION #11
Could the Department indicate in what circumstances paragraph 8205(4)(e) of the Income Tax Regulations applies? For example, you ask whether a common share that is not a prescribed share because of its attributes could become a prescribed share on a given date if the attributes preventing it from being a prescribed share are removed.
ANSWER
Where at any particular time after November 21, 1985, the terms or conditions of a share are changed, an existing agreement in respect thereof is changed or a new agreement in respect of the share is entered into, the share shall, under this paragraph and for the purpose of determining whether it is a prescribed share, be deemed to have been issued at that particular time. A share that would otherwise not have been a prescribed share would thus be deemed to be a prescribed share as of the date of the change bringing the share into conformity with the requirements of subsection 8205(1) of the Income Tax Regulations.
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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