ARCHIVED - Dispositions - Changes in Terms of Securities

Archived content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

What the "Archived Content" notice means for interpretation bulletins

NO: IT-448SR

DATE: June 21, 1982

Dispositions - Changes in Terms of Securities


The purpose of this Special Release is to modify the Department's position as to whether a disposition occurs on the reduction in the paid-up capital of a share of the capital stock of a corporation. Accordingly, paragraphs 12 and 13 of IT-448 are to be replaced with the following:

"A reduction in paid-up capital that involves the redemption (see 2 above), or cancellation of a share gives rise, by necessity, to a disposition in the hands of the holder by virtue of clause 54(c)(ii)(A) of the Act. However, a reduction in the paid-up capital in respect of a share, not accompanied by a redemption or cancellation of that share, will not constitute a disposition of that share".

Date modified: