,rev5ue ,canada ,tax,n                #a

          ,9t]pret,n ,bullet9
    
,subject3 ,9come tax act--,w9d+-up (a
  ,"pn]%ip
,numb]3 ,,it-#cgh;,r
,date3 ,febru>y #ae1 #aihj
,ref];e3 ,subsec;n #he7#c7 7al subsec;n
  #he7#b77

  ,? ,bullet9 replaces & c.els
,9t]pret,n ,bullet9 ,,it-#cgh dat$ ,may
#cj1 #aigg4 ,curr5t a4i;ns >e designat$
0v]tical l9es4

#a4 ,subsec;n #he7#c7 applies ": a
  "pn]%ip has 4pos$ ( prop]ty 6a
  corpor,n "u subsec;n #he7#b71 w9ds up
  xs a6airs )9 #fj "ds ( t 4posi;n &
  has1 immly 2f ! w9d+-up1 no prop]ty
  o!r ?an m"oy or prop]ty rcvd f !
  corpor,n z 3sid],n =! 4posi;n4 ,!
  ,de"p;t's view is t ": ! provi.ns (
  subsec;n #he7#c7 >e o!rwise met1    #a
              ,,it-#cgh;,r           a#a
  xs applic,n is n d5i$ only 2c !
  "pn]%ip has1 immly 2f ! w9d+-up1 m"oy
  o!r ?an m"oy rcvd 9 3nec;n )! 4posi;n
  ( prop]ty 6! corpor,n4 ,? wd 2 !
  result ": ! "pn]%ip 4pos$ ( all ( xs
  prop]ty except m"oy 6! corpor,n4
#b4 ,! 3sid],n rcvd 0! "pn]%ip = "o or m
  prop]ties 4pos$ ( "u subsec;n #he7#b7
  m/ 9clude at l1/ "o %>e (! capital
  /ock (! corpor,n4 ,9 practice ! numb]
  issu$ is det]m9$ 0! ne$ = %>es 9 !
  c\rse ( w9d+ up "u subsec;n #he7#c74
  ,= adm9i/rative ease ! %>es >e "s"ts
  issu$ 9 ! "ns (! "pn]s 9/1d (! "n (!
  "pn]%ip4 ,! ,de"p;t's view is t ?
  proc$ure does n 9validate ! applic,n (
  subsec;n #he7#b71 nor a subsequ5t
  applic,n ( subsec;n #he7#c71 if ! 9t5t
  is t ! %>es b5efici,y 2l;g 6! "pn]%ip
  & n 6! "pn]s !mvs4
#c4 ,subsec;ns #he7#b7 & 7#c7 tak5 tgr
  provide a m1ns ":by "pn]%ip prop]ty
  may 2 transf]r$ 6a corpor,n &! relat$
  "pn]%ip 9t]e/s 3v]t$ 96%>e hold+s   #b
              ,,it-#cgh;,r           b#a
  )\t r1liz,n ( ga9s or losses at ei
  level4 7,^? results may 2 di6]5t ":
  prop]ty o!r ?an prop]ty describ$ 9
  subsec;n #he7#b7 is transf]r$ 6!
  corpor,n &/or prop]ty hav+ a fair
  m>ket value 9 excess (! adju/$ co/
  base (a "pn]'s "pn]%ip 9t]e/ is
  tranf]r$ 6hm47 ,! ,de"p;t's view is t
  ! valid;y ( an elec;n "u subsec;n
  #he7#b7 &(a w9d+-up "u subsec;n
  #he7#c7 is 3t+5t ^u ! "pn]%ip prop]ty
  2+ transf]r$ 6& %>e capital tak5 back
  f only "o corpor,n4
--------------------------------------#b
#d4 ,! ref];e 9 p>agraph #he7#b77b7 to
  8all ! memb]s (! "pn]%ip0 is 6^? :o 7
  memb]s at ! "t (! transf] ( prop]ty 6!
  corpor,n4 ,": a second "pn]%ip 0 a
  "pn] at t "t1 ea* memb] (! second
  "pn]%ip is al te*nic,y requir$ 6sign !
  elec;n =m4 ,n"e!.s ! ,de"p;t is prep>$
  6a3ept a signature ( "o "pn] (! second
  "pn]%ip :o is au?oriz$ 6act = all (
  !m4                                 #c
              ,,it-#cgh;,r           a#b
#e4 ,an elec;n "u subsec;n #he7#b7 may 2
  9valid 2c "o or m (! "picipants 6x has
  fail$ 6meet a 3di;n prec$5t 6mak+ x1
  or 2c x 0 n made 9 ! prescrib$ =m or
  )9 ! prescrib$ "t4 ,": "o or m ( ^!
  3di;ns exi/1 ! ,de"p;t may reject !
  elec;n4 ,if ! ,de"p;t a3epts an
  o!rwise 9valid elec;n1 xs valid;y may
  n "!af 2 d5i$ 0! taxpay]4
#f4 ,! ,act does n def9e ! m1n+ (! t]ms
  8w.d up0 & 8immly 2f ! w9d+ up0 z us$
  9 subsec;n #he7#c74 ,6a3ompli% a 8w9d+
  up0 (! a6airs (a "pn]%ip all ! prop]ty
  (! "pn]%ip m/ 2 4tribut$ 6! "pn]s 9
  satisfac;n ( _! 9t]e/s 9 ! "pn]%ip4 ,9
  a4i;n1 ! law "u : a "pn]%ip has be5
  =m$1 or ! t]ms (! agree;t (a "pn]%ip1
  may require c]ta9 =malities or
  proc$ures 7s* z a notific,n ( 4solu;n
  giv5 0a "pn] 6o!r "pn]s1 adv]tise;t =
  4solu;n1 deregi/r,n ( "pn]%ip etc47
  6be -pli$ ) 2f ! "pn]%ip is 3sid]$ 6h
  be5 w.d up4
                                      #d
              ,,it-#cgh;,r           b#b
#g4 ,=! purpose ( p>agraph #he7#c77b7 !
  ,de"p;t w 3sid] ! a6airs (a "pn]%ip 6h
  be5 w.d up :5 all ! prop]ty (!
  "pn]%ip1 9clud+ m"oy1 has be5 4tribut$
  6! memb]s 9 satisfac;n ( _! 9t]e/s 9 !
  "pn]%ip4 ,! 8rollov]0 w n 2 d5i$ =!
  r1son only t "s (! require;ts 6-plete
  ! 4solu;n (! "pn]%ip1 o!r ?an !
  4tribu;n ( all prop]ty1 h n be5
  fulfill$ )9 #fj "ds af ! 4posi;n (
  prop]ty 6! corpor,n4
#h4 ,=! purposes ( p>agraph #he7#c77c7 !
  "pn]%ip m/ n [n any prop]ty immly 2f !
  w9d+ up o!r ?an prop]ty rcvd f !
  corpor,n z 3sid],n =! 4posi;n or m"oy4
  ,3sequ5tly any o!r "pn]%ip prop]ty m/
  h be5 4pos$ ( prior 64tribu;n on w9d+
  up (! prop]ty describ$ 9 p>agraph
  #he7#c77c74




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