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.
REVENUE CANADA ROUND TABLE CTF NOV. 1992
Question # 25
QUALIFIED SMALL BUSINESS CORPORATION SHARES AND SPOUSAL TRUSTS
The definition of "qualified small business corporation share" in section 110.6 of the Act requires that such a share not be owned by an unrelated person throughout the 24 months immediately preceding the time of sale.
If shares which would otherwise qualify as "qualified small business corporation share" are bequeathed to a qualifying spouse trust as defined in paragraph 104(4)(a) of the Act will the deceased spouse be regarded as an unrelated person for purposes of determining if the subject shares qualify as QSBC shares to the spousal trust ?
Answer
For the purposes of the definition "qualified small business corporation share", in section 110.6, the spouse trust will be deemed to be related to the deceased spouse if, at the time the trust disposed of the shares, all of the beneficiaries of the spouse trust are related to the deceased spouse or would have been so related if the deceased spouse were living at that time, pursuant to subparagraph 110.6(14)(c)(ii) of the Act.
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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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