Subsection 211.8(1)
Administrative Policy
8 September 2005 Internal T.I. 2005-0133721I7 F - Crédit d'impôt - fonds de travailleurs
no s. 211.8(1) tax where shares of provincially regulated LSVCC are redeemed and where there is no acquisition of replacement shares
Regarding what are the tax consequences when the proceeds from the redemption of shares of a provincially regulated LSVCC (here, the Fonds de solidarité des travailleurs du Québec (the "F.S.T.Q.")) are used in the HBP or RESP with a requirement to acquire replacement shares, the Directorate indicated that there is no special tax calculated under s. 211.8(1) where shares are redeemed and where there is no acquisition of replacement shares. If replacement shares are acquired, beginning in 2004 no tax credit is granted (pursuant to para. (b) of the definition of “approved share” in s. 127.4(1).).