Section 127.4

The exclusion in para. (b) of the approved share definition referred to:

a share issued by a prescribed labour-sponsored venture capital corporation (other than a registered labour-sponsored venture capital corporation) if, at the time of the issue, every province under the laws of which the corporation is a prescribed labour-sponsored venture capital corporation has suspended or terminated its assistance in respect of the acquisition of shares of the capital stock of the corporation;

An individual resident of Quebec over 65 years of age acquired a share of a prescribed labour-sponsored venture capital corporation. Because of the taxpayer's age, the Taxation Act (Quebec) did not allow the taxpayer to claim the credit in Quebec.

The Agency stated:

[N]o share acquired from that corporation will come within paragraph (b) … as long as the Taxation Act (Quebec) grants a tax credit to any taxpayer for the acquisition of shares of that corporation.

Consequently, the taxpayer’s acquisition entitled the taxpayer to the tax credit provided for in section 127.4.