,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,9COME ,TAX ,ACT
  ,DEEM$ ,4POSI;N & ,ACQUISI;N ON ,C1S+
  6BE OR ,2COM+ ,RESID5T 9 ,CANADA
,NUMB]3 ,,IT-#DEA;,R
,DATE3 ,M>* #BE1 #AIHG
,REF];E3 ,SEC;NS #DH1 #HH.A & #BAI.A 7AL
  SEC;NS #IJ 6#IE1 #AAJ.F & #BEJ1
  SUBSEC;NS #AAE7#A71 #ABF7#B.B7 &
  #AEI7#D71 P>AGRAPHS #BAB7#A77H7 &
  #BAB7#A77J7 TO 7Q7 (! ,ACT & SEC;N
  #ACJJ & SUBSEC;N #EIJG7#AC7 (!
  ,REGUL,NS7

  ,? BULLET9 REPLACES & C.ELS ,9T]PRET,N
,BULLET9 ,,IT-#DEA DAT$ ,JUNE #AC1 #AIHJ
& ,,IT-#DEA ,,A45DUM DAT$ ,SEPTEMB] #H1
#AIHB4 ,CURR5T REVI.NS >E DESIGNAT$
0V]TICAL L9ES4
                                      #A
               ,9TRODUC;N            A#A
    
#A4 ,? BULLET9 D1LS )! DEEM$ 4POSI;N
  RULES 9 SUBSEC;N #DH7#A7 & SEC;N
  #HH.A1 ! DEEM$ ACQUISI;N RULES 9
  SUBSEC;N #DH7#C71 &! RULES 9 SUBSEC;N
  #DH7#E7 : 9CLUDE PRESCRIB$ AM.TS 9 !
  =EIGN A3RUAL PROP]TY 9COME ( C]TA9
  =EIGN A6ILIATES4
#B4 ,! PURPOSE ( SUBSEC;N #DH7#A7 IS
  69CLUDE 9 ! -PUT,N ( 9COME (A TAXPAY]1
  =A TAX,N YE> 9 : ! TAXPAY] C1SES 6BE
  RESID5T 9 ,CANADA1 C]TA9 CAPITAL GA9S
  OR LOSSES A3RU$ PRIOR 6DE"PURE F
  ,CANADA4 ,ON ! O!R H&1 SUBSEC;N
  #DH7#C7 IS 9T5D$ 6EXCLUDE F ! -PUT,N (
  9COME (A TAXPAY] :O HAS 2COME A
  RESID5T ( ,CANADA T POR;N ( ANY
  CAPITAL GA9 OR LOSS T _H A3RU$ PRIOR
  62COM+ RESID5T4 ,AL? SUBSEC;NS #DH7#A7
  & #DH7#C7 REF] TO 8ANY PROP]TY0 & 8EA*
  PROP]TY01 !Y RELATE ONLY 6CAPITAL
  PROP]TY S9CE ^! SUBSEC;NS APPLY =
  PURPOSES ( SUBDIVI.N ;C ( ,DIVI.N ;,B
  ( ,"P ;,I ONLY4 ,FUR!RMORE1 SEC;N   #B
              ,,IT-#DEA;,R           B#A
  #DH DOES N APPLY 6DEEM EI AN ACQUISI;N
  OR 4POSI;N = CAPITAL CO/ ALL[.E
  PURPOSES4 ,": A =EIGN A6ILIATE (A
  TAXPAY] RESID5T 9 ,CANADA 2COMES
  RESID5T 9 ,CANADA AF ,NOVEMB] #AB1
  #AIHA1 SUBSEC;N #DH7#E7 PROVIDES RULES
  =! CALCUL,N (! A6ILIATE'S =EIGN A3RUAL
  PROP]TY 9COME Z 4CUSS$ 9 #BB & #BC 2L4
  ,9 A4I;N1 Z 4CUSS$ 9 #AH 6#BJ 2L1
  SEC;N #HH.A PROVIDES RULES1 APPLICA#
  6C]TA9 CORPOR,NS EMIGRAT+ AF ,AUGU/
  #BH1 #AIHJ1 : OV]RIDE SEC;N #DH4

          ,2COM+ OR ,C1S+ 6BE
           ,RESID5T 9 ,CANADA
    
#C4 ,:E!R OR N A TAXPAY] HAS 2COME OR
  C1S$ 6BE RESID5T 9 ,CANADA IS G5],Y A
  "Q ( FACT4 ,": A P]SON SOJ\RNS1 7SEE
  ,,IT-#BBA;,R#B1 P>AGRAPH #AE7 9
  ,CANADA


                                      #C
              ,,IT-#DEA;,R            #B
  = #AHC "DS OR M 9 A TAX,N YE>1
  P>AGRAPH #BEJ7#A77A7 DEEMS T P]SON 6H
  BE5 RESID5T 9 ,CANADA "?\T ! YE>4 ,":
  ? IS ! CASE1 ! P]SON IS 3SID]$ 6H
  2COME S RESID5T AT ! -M;E;T ( T YE> &
  6H C1S$ 6BE S RESID5T AT ! 5D (! YE> S
  T ! PROVI.NS ( SEC;N #DH APPLY4 ,H["E1
  ": T P]SON IS AN 9DIVIDUAL1 ! RELIEV+
  PROVI.N ( SUBSEC;N #DH7#D7 7SEE #AA
  2L7 MAY APPLY 6EXEMPT ! 9DIVIDUAL F !
  DEEM$ 4POSI;N RULES ( SUBSEC;N #DH7#A7
  7AL SEE ,,IT-#BBA;,R#B = A4I;NAL -;TS
  ON AN 9DIVIDUAL'S RESID;E /ATUS74
#D4 ,": ! TAXPAY] IS A TRU/1 ! TRU/ IS
  G5],Y 3SID]$ 62COME RESID5T OR C1SE
  6BE RESID5T 9 ,CANADA :5 ! TRU/EE :O
  HAS [N]%IP OR 3TROL OV] ! ASSETS (!
  TRU/ 2COMES OR C1SES 6BE RESID5T4 ,X
  IS POSSI# T A TRU/ MAY 2 SUBJECT 6!
  PROVI.NS ( SEC;N #DH 0VIRTUE (! TRU/EE
  2COM+ OR C1S+ 6BE A RESID5T ( ,CANADA
  EV5 ?\< ! TRU/ PROP]TY &/OR !
  B5EFICI>Y 7 ALR LOCAT$ 9 OR \TSIDE
  ,CANADA4                            #D
              ,,IT-#DEA;,R           A#B
#E4 ,SUBJECT 6! PROVI.NS ( SUBSEC;N
  #BEJ7#D7 : DEEMS RESID5CY 9 ,CANADA
  "?\T A "PICUL> TAX,N YE>1 A CORPOR,N
  IS NORM,Y RESID5T 9 ! C.TRY ": XS
  C5TRAL MANAGE;T & 3TROL >E LOCAT$4
  ,"!=E ! PROVI.NS ( SEC;NS #DH OR #HH.A
  MAY 2 APPLICA# ": S* MANAGE;T & 3TROL
  MOVES \ ( OR 96,CANADA4

        ,DEEM$ ,4POSI;N ON ,C1S+
              6BE ,RESID5T
    
#F4 ,": A TAXPAY] C1SES 6BE RESID5T 9
  ,CANADA AT ANY "PICUL> "T AF #AIGA 9 A
  TAX,N YE>1 SUBJECT 6! -;TS 9 #AJ & #AA
  2L1 SUBSEC;N #DH7#A7 PROVIDES T !
  TAXPAY] IS DEEM$ 6H 4POS$ ( C]TA9
  CAPITAL PROP]TIES [N$ IMMLY 2F T "T
  7I4E41 :ILE / RESID5T 9 ,CANADA7 =
  PROCE$S EQUAL 6FAIR M>KET VALUE4 ,!
  TAXPAY] IS AL DEEM$ 6H REACQUIR$ !
  PROP]TY IMMLY AF C1S+ 6BE RESID5T 9
  ,CANADA AT A CO/ (! SAME AM.T4 ,[N]%IP
  IS 6BE 9T]PRET$ 9 ! BROADE/ S5SE1   #E
              ,,IT-#DEA;,R           B#B
  9 A3ORD.E ) ,CANADIAN JUDICIAL
  9T]PRET,N1 NO MATT] ": ! PROP]TY IS
  LOCAT$4 ,H["E1 = VALU,N PURPOSES !
  FAIR M>KET VALUE 9 ! C.TRY OR >EA (
  LOC,N (! PROP]TY W USU,Y GOV]N4
#G4 ,! TAXPAY] IS REQUIR$ 6USE ! RULES (
  SUBDIVI.N ;C ( ,DIVI.N ;,B ( ,"P ;,I
  6CALCULATE TAXA# CAPITAL GA9S1 ALL[A#
  CAPITAL LOSSES & TAXA# NET GA9S 7LI/$
  P]SONAL PROP]TY7 ON PROP]TY DEEM$ 6BE
  4POS$ ( 9 -PUT+ 9COME = ,"P ;,I TAX
  PURPOSES =! TAX,N YE> 9 : ! TAXPAY]
  C1S$ 6BE RESID5T 7SEE ,,IT-#AIC
  ,SPECIAL ,REL1SE74 ,A CAPITAL GA9 F A
  DEEM$ 4POSI;N "U SUBSEC;N #DH7#A7 _C 2
  REDUC$ 0A RES]VE "U P>AGRAPH
  #DJ7#A77A74
--------------------------------------#C
        ,CAPITAL ,GA9S ,DEDUC;N
    
#H4 ,9 TAX,N YE>S 2F #AIHE 7=M]7
  P>AGRAPH #DH7#A77D7 _H ! E6ECT (
  EXEMPT+ AN 9DIVIDUAL1 O!R ?AN A TRU/1
  ON ! F/ 4#E1JJJ ( TOTAL CAPITAL     #F
              ,,IT-#DEA;,R           A#C
  GA9S F DEEM$ 4POSI;NS ( PROP]TY O!R
  ?AN LI/$ P]SONAL PROP]TY4 ,6! EXT5T T
  S* CAPITAL GA9S 7 LESS ?AN 4#E1JJJ1 !
  BAL.E (! EXEMP;N 0 APPLI$ "U 7=M]7
  P>AGRAPH #DH7#A77E7 6REDUCE !
  9DIVIDUAL'S GA9S F DEEM$ 4POSI;NS (
  LI/$ P]SONAL PROP]TY4 ,! TAXPAY]'S
  8GA9S0 F DEEM$ 4POSI;NS ( LI/$ P]SONAL
  PROP]TY 7 ! AM.TS "!( DET]M9$ "U
  SUBP>AGRAPH #DJ7#A77A77;I7 & N ! 8NET
  GA90 REF]R$ 6IN SUBSEC;N #DA7#B74 ,NO
  "P (! EXEMP;N CD 2 APPLI$ AG/ GA9S
  >IS+ F ACTUAL 4POSI;NS ( CAPITAL
  PROP]TY4
#I4 ,9 -PUT+ TAXA# 9COME AF #AIHD1 SEC;N
  #AAJ.F P]MITS AN 9DIVIDUAL 7O!R ?AN A
  TRU/7 :O 0 RESID5T 9 ,CANADA "?\T A
  TAX,N YE> 6DEDUCT AN AM.T 9 RESPECT (
  CAPITAL GA9S ( T TAX,N YE>4 ,= ?
  PURPOSE1 SUBSEC;N #AAJ.F7#E7 PROVIDES
  T AN 9DIVIDUAL :O 0 RESID5T 9 ,CANADA
  AT "S "T DUR+ A "PICUL> TAX,N YE> &
  "?\T EI ! IMMLY PREC$+ OR FOLL[+ TAX,N
  YE> IS DEEM$ 6H BE5 RESID5T 9       #G
              ,,IT-#DEA;,R           B#C
  ,CANADA "?\T ! "PICUL> TAX,N YE>4 ,Z A
  3SEQU;E S* AN 9DIVIDUAL :O1 = PURPOSES
  O!R ?AN SUBSEC;N #AAJ.F1 HAS C1S$ 6BE
  RESID5T 9 ,CANADA AT "S "T DUR+ A
  TAX,N YE> IS ELIGI# =! CAPITAL GA9S
  DEDUC;N 6! EXT5T PROVID$ 0SEC;N
  #AAJ.F4 7SEE #AB 2L74

               ,EXCEP;NS
    
#AJ4 ,SUBSEC;N #DH7#A7 DOES N APPLY TO
  7A7 PROP]TY T WD 2 TAXA# ,CANADIAN
    PROP]TY Z DESCRIB$ 9 P>AGRAPH
    #AAE7#A77B7 IF ! TAXPAY] _H N BE5
    RESID5T 9 ,CANADA AT ANY "T 9 ! YE>1
    UN.S ! TAXPAY] IS AN 9DIVIDUAL 7O!R
    ?AN A TRU/7 :O HAS ELECT$ "U
    P>AGRAPH #DH7#A77A7 6BE DEEM$ 6H
    4POS$ ( T PROP]TY IMMLY 2F C1S+ 6BE
    A RESID5T ( ,CANADA 7SEE #AB & #AD
    2L71
  7B7 PROP]TY T IS DEEM$ 6BE TAXA#
    ,CANADIAN PROP]TY 2C ( AN ELEC;N "U
                                      #H
              ,,IT-#DEA;,R           C#C
    P>AGRAPH #DH7#A77C71 7SEE #AC & #AD
    2L71
  7C7 A "R 6RCV PAY;TS DESCRIB$ 9
    P>AGRAPH #BAB7#A77H7 & P>AGRAPHS
    #BAB7#A77J7 TO 7Q7 7E4G41 P5.N
    B5EFITS1 RETIR+ ALL[.ES1 PAY;TS F
    REGI/]$ RETIRE;T SAV+S PLANS1 ETC471
    OR
  7D7 A "R 6RCV A PAY;T ( ANY B5EFIT "U
    ! ,CANADA ,P5.N ,PLAN OR A PROV9CIAL
    P5.N PLAN DESCRIB$ 9 SEC;N #C ( T
    ,PLAN4

  ,9 A4I;N1 Z 4CUSS$ 9 #AH 6#BJ 2L1
  SUBSEC;N #DH7#A7 IS N APPLICA# 6A
  CORPOR,N T 0 9CORPORAT$ 9 ,CANADA ":
  SEC;N #HH.A IS APPLICA# NOR1 Z 4CUSS$
  9 #AA 2L1 6C]TA9 PROP]TIES [N$ 0AN
  9DIVIDUAL O!R ?AN A TRU/4




                                      #I
       ,RESID5T 9 ,CANADA = ,%ORT     #D
               ,T]M ,ONLY
    
#AA4 ,SUBSEC;N #DH7#D7 EXCLUDES F !
  DEEM$ 4POSI;N RULE ( SUBSEC;N #DH7#A7
  ANY PROP]TY [N$ 0AN 9DIVIDUAL 7O!R ?AN
  A TRU/7 IF ! TAXPAY] EI [N$ ! PROP]TY
  IMMLY 2F 2COM+ RESID5T OR ACQUIR$ X
  09H]IT.E OR 2QUE/ AF 2COM+ RESID5T1
  PROVID$ T DUR+ ! #AJ-YE> P]IOD IMMLY
  2F C1S+ 6BE A RESID5T ! TAXPAY] 0 N
  RESID5T 9 ,CANADA = P]IODS TOTALL+ M
  ?AN #FJ MON?S4 ,PROP]TY ACQUIR$ 9
  EX*ANGE = PROP]TY [N$ :5 ! 9DIVIDUAL
  LA/ 2CAME RESID5T1 Z MAY 2 ! CASE Z A
  RESULT (A %>E EX*ANGE "U SEC;N #HE.A
  OR "U ! ROLLOV] PROVI.NS ( SEC;N #HE1
  IS N EXCLUD$ 0SUBSEC;N #DH7#D7 & IS
  DEEM$ 6BE 4POS$ ( :5 ! 9DIVIDUAL
  SUBSEQU5TLY C1SES 6BE RESID5T4 ,": AN
  9DIVIDUAL :O SOJ\RN$ 9 ,CANADA IS
  DEEM$ 6BE RESID5T 9 ,CANADA "U
  P>AGRAPH #BEJ7#A77A7 "?\T A CAL5D>
  YE>1 ! FULL CAL5D> YE>1 Z OPPOS$ 6!
  ACTUAL P]IOD ( SOJ\RN+1 IS         #AJ
              ,,IT-#DEA;,R           A#D
  REQUIR$ 6BE 9CLUD$ 9 DET]M9+ ! #FJ-
  MON? P]IOD REF]R$ 6IN SUBSEC;N
  #DH7#D74

       ,ELEC;N 6,9CLUDE ,PROP]TY
    
#AB4 ,= #AIHE & SUBSEQU5T TAX,N YE>S AN
  9DIVIDUAL 7O!R ?AN A TRU/7 :O ELECTS
  "U P>AGRAPH #DH7#A77A7 9 PRESCRIB$
  MANN] & )9 A PRESCRIB$ "T IS DEEM$ 6H
  4POS$ ( PROP]TY DESCRIB$ 9 #AJ7A7 ABV
  IMMLY PRIOR 6DE"PURE F ,CANADA =
  PROCE$S ( 4POSI;N EQUAL 6! FAIR M>KET
  VALUE (! PROP]TY IMMLY 2F ! DE"PURE4
  ,0MAK+ S* AN ELEC;N AN 9DIVIDUAL MAY
  CLAIM A CAPITAL GA9S DEDUC;N 9 RESPECT
  ( CAPITAL GA9S A3RU$ AT ! "T (
  DE"PURE4 ,! CAPITAL GA9S DEDUC;N IS N
  AVAILA# 6A NON-RESID5T EXCEPT 6! EXT5T
  DESCRIB$ 9 #I ABV4 ,PROC$URES = MAK+
  AN ELEC;N "U P>AGRAPH #DH7#A77A7 H N
  YET BE5 PRESCRIB$4

                                     #AA
       ,ELEC;N 6,EXCLUDE ,PROP]TY    B#D
    
#AC4 ,A ,CANADIAN CORPOR,N OR AN
  9DIVIDUAL O!R ?AN A TRU/ MAY ELECT "U
  P>AGRAPH #DH7#A77C7 6EXCLUDE F ! DEEM$
  4POSI;N RULE ( SUBSEC;N #DH7#A7 ANY
  PROP]TY 6: T RULE WD O!RWISE APPLY4 ,!
  ELEC;N IS MADE ON =M ,T#BJFA : M/ 2
  FIL$ N LAT] ?AN ! "T :5 ! TAXPAY] IS
  REQUIR$ "U SEC;N #AEJ 6FILE AN 9COME
  TAX RETURN =! YE> ( C1S+ 6BE RESID5T4
  ,REGUL,N #ACJJ SETS \ ! APPLICA#
  REQUIRE;TS4 ,SECUR;Y A3EPTA# 6! ,M9I/]
  IS REQUIR$ 6BE FURNI%$ 7SEE #AE 2L74
  ,SUBSEC;N #DH7#B7 DEEMS ANY PROP]TY 9
  RESPECT ( : S* AN ELEC;N IS MADE 6BE
  TAXA# ,CANADIAN PROP]TY F ! "T IMMLY
  AF ! TAXPAY] C1S$ 6BE RESID5T UNTIL !
  E>LI] (! DATE T ! PROP]TY IS SOLD &!
  DATE ON : ! TAXPAY] NEXT 2COMES
  RESID5T 9 ,CANADA4
--------------------------------------#E
#AD4 ,": A TAXPAY] HAS ELECT$ "U
  P>AGRAPH #DH7#A77A7 OR 7C7 ON "O OR M
  PROP]TIES1 SUBSEC;N #DH7#A7        #AB
              ,,IT-#DEA;,R           A#E
  LIMITS ! ALL[A# CAPITAL LOSSES F DEEM$
  4POSI;NS ( PROP]TY O!R ?AN LI/$
  P]SONAL PROP]TY 6! LESS] (
  7A7 ! A7REGATE ( S* ALL[A# CAPITAL
    LOSSES1 &
  7B7 ! AM.T DEEM$ 0SUBSEC;N #DH7#A7 6BE
    ! A7REGATE (! TAXA# CAPITAL GA9S F
    DEEM$ 4POSI;NS ( PROP]TY O!R ?AN
    LI/$ P]SONAL PROP]TY4
  
  ,? LIMIT,N PREV5TS A TAXPAY] F ELECT+
  9 RESPECT ( PROP]TY 7O!R ?AN LI/$
  P]SONAL PROP]TY7 "U P>AGRAPH
  #DH7#A77A7 OR 7C7 9 S* A MANN] Z 6DEF]
  DEEM$ CAPITAL GA9S :ILE CLAIM+ DEEM$
  CAPITAL LOSSES4 ,"! IS NO SIMIL>
  PROVI.N 9 RESPECT ( LI/$ P]SONAL
  PROP]TY 2C LOSSES F T S\RCE >E N
  DEDUCTI# EXCEPT AG/ GA9S F LI/$
  P]SONAL PROP]TY4



                                     #AC
           ,A3EPTA# ,SECUR;Y         B#E
    
#AE4 ,AN ELEC;N "U P>AGRAPH #DH7#A77C7
  OR SUBSEC;N #AEI7#D7 7SEE #AF 2L7
  REQUIRES T ! TAXPAY] FURNI% 6! ,M9I/]
  SECUR;Y A3EPTA# 6! ,M9I/] = PAY;T (
  ANY TAX ! PAY;T ( : IS DEF]R$ 0!
  ELEC;N4 ,": S* AN ELEC;N IS 6BE MADE1
  ! TAXPAY] %D 3TACT ! LOCAL ,4TRICT
  ,TAX,N ,(FICE 6DET]M9E ! SECUR;Y NEC 9
  RESPECT (! DEF]RAL4

      ,ELEC;N 6,PAY ,TAX 0,9/AL;TS
    
#AF4 ,A TAXPAY] MAY ELECT "U SUBSEC;N
  #AEI7#D7 6PAY ! ,"P ;,I TAX >IS+ F
  DEEM$ 4POSI;NS "U SUBSEC;N #DH7#A7 9
  UP 6SIX ANNUAL 9/AL;TS1 ) 9T]E/1
  PROVID$ ! ,M9I/] IS FURNI%$ ) A3EPTA#
  SECUR;Y 7SEE #AE ABV74 ,! ELEC;N M/ 2
  MADE ON =M ,T#BJGD & 2 FIL$ ON OR 2F !
  "D :5 ! TAXPAY]'S LA/ 9COME TAX RETURN
  Z A RESID5T ( ,CANADA IS REQUIR$ 6BE
  FIL$4 ,REGUL,N #ACJA SETS \ !
  REQUIRE;TS APPLICA# 6S* ELEC;NS4   #AD
          ,=EIGN ,TAX ,DEDUC;N       C#E
    
#AG4 ,": A TAXPAY] :O IS N RESID5T 9
  ,CANADA 4POSES ( PROP]TY T 0 DEEM$
  0SUBSEC;N #DH7#B7 6BE TAXA# ,CANADIAN
  PROP]TY (! TAXPAY] &! GA9 IS TAX$ 9 A
  =EIGN C.TRY Z WELL Z 9 ,CANADA1 ! ,"P
  ;,I TAX O!RWISE PAYA# MAY1 )9 !
  LIMIT,NS ( SUBSEC;N #ABF7#B.B71 2
  REDUC$ ON A3.T ( =EIGN TAXES PD4

          ,CORPORATE ,EMIGR,N
    
#AH4 ,SEC;N #DH DOES N H APPLIC,N 9
  RESPECT (A TAX,N YE> 6: SEC;N #HH.A
  APPLIES4 ,SEC;N #HH.A IS "S:AT SIMIL>
  6SEC;N #DH EXCEPT T X DEEMS A 4POSI;N
  ( EA* PROP]TY R ?AN C]TA9 CAPITAL
--------------------------------------#F
  PROP]TIES & APPLIES ONLY 6A CORPOR,N T
  0 9CORPORAT$ 9 ,CANADA & 0 RESID5T 9
  ,CANADA AT "S "T & T HAS1 AF ,AUGU/
  #BH1 #AIHJ1 EI
  7A7 BE5 GRANT$ >TICLES ( 3T9U.E 7OR
    SIMIL> CORPORATE 3/ITU;NAL       #AE
              ,,IT-#DEA;,R           A#F
    DOCU;TS7 9 A JURISDIC;N \TSIDE
    ,CANADA1 OR
  7B7 2COME RESID5T 9 A JURISDIC;N
    \TSIDE ,CANADA & Z A 3SEQU;E 2COMES
    EXEMPT F ,"P ;,I TAX ON XS SUBSEQU5T
    9COME F NON-,CANADIAN S\RCES 0VIRTUE
    ( ANY ,ACT ( ,P>LIA;T OR ANY?+
    APPROV$1 MADE OR DCLD 6H ! =CE ( LAW
    "!"U 7G5],Y A TAX 3V5;N74
#AI4 ,! CORPOR,N'S TAX,N YE> IS DEEM$ 6H
  5D$ IMMLY 2F ! "PICUL> "T T EI (! TWO
  EV5TS DESCRIB$ 9 #AH ABV O3URS &A NEW
  TAX,N YE> IS DEEM$ 6H -M;ED AT !
  "PICUL> "T4 ,! CORPOR,N IS DEEM$ 6H
  4POS$ ( ALL ! PROP]TY T X [N$ IMMLY 2F
  ! "PICUL> "T = PROCE$S EQUAL 6FAIR
  M>KET VALUE AT ! "T ( S* 4POSI;N4
  ,UNLIKE SEC;N #DH1 ? RULE APPLIES =
  ALL PURPOSES (! ,ACT1 9CLUD+ RECAPTURE
  ( CAPITAL CO/ ALL[.ES4 ,S* PROP]TY IS
  DEEM$ 6H BE5 REACQUIR$ 0! CORPOR,N
  IMMLY AF ! "PICUL> "T AT A CO/ EQUAL
  6^? DEEM$ PROCE$S ( 4POSI;N4 ,!
  CORPOR,N IS AL DEEM$ N 6BE A       #AF
              ,,IT-#DEA;,R           B#F
  ,CANADIAN CORPOR,N AT ! "PICUL> "T &
  ALL SUBSEQU5T "TS4 ,H["E1 ! CORPOR,N W
  3T9UE 6BE A RESID5T ( ,CANADA IF !
  3DI;NS DESCRIB$ 9 SUBSEC;N #BEJ7#D7 >E
  MET1 & W 2 SUBJECT 6! TAX 3SEQU;ES T
  5SUE Z A RESULT ( S* RESID5CY4
#BJ4 ,": A TAX,N YE> (A CORPOR,N IS
  DEEM$ 0SEC;N #HH.A 6H 5D$1 SEC;N
  #BAI.A PROVIDES T A TAX ( #BE@3P % 2
  PD ON ! AM.T 0: ! DEEM$ PROCE$S (
  4POSI;N PURSUANT 6! PROVI.NS ( SEC;N
  #HH.A EXCE$ ! A7REGATE (
  7A7 ! PD-UP CAPITAL ( ALL ! ISSU$ &
    \T/&+ %>ES (! CORPOR,N IMMLY 2F !
    DEEM$ 5D ( XS TAX,N YE>1 &
  7B7 ALL AM.TS \T/&+ AT ! DEEM$ YE> 5D1
    EXCLUD+ DIVID5DS1 ( DEBTS [+ 0!
    CORPOR,N1 & O!R OBLIG,NS (! CORPOR,N
    6PAY AN AM.T4
  



                                     #AG
         ,DEM& ,PAY;T ( ,TAXES       C#F
    
#BA4 ,": ! ,M9I/] SUSPECTS T A TAXPAY]
  IS AB 6L1VE ,CANADA1 HE HAS ! P[] "U
  SEC;N #BBF 6DEM& PAY;T ( ALL TAXES1
  9T]E/ & P5ALTIES 2F ! "D O!RWISE FIX$
  = PAY;T4 ,IF ! TAXPAY] FAILS 6-PLY )!
  DEM&1 ! ,M9I/] MAY DIRECT T !
  TAXPAY]'S GDS & *ATTELS 2 SEIZ$4

          ,CORPORATE ,IMMIGR,N
    
#BB4 ,":1 AT ANY "T AF ,NOVEMB] #AB1
  #AIHA1 A CORPOR,N 2COMES RESID5T 9
  ,CANADA & IMMLY 2F T "T X 0 A =EIGN
  A6ILIATE 7Z DEF9$ 9
--------------------------------------#G
  P>AGRAPH #IE7#A77D77 (A TAXPAY]
  RESID5T 9 ,CANADA1 SUBSEC;N #DH7#E7
  PROVIDES T =! PURPOSES ( SEC;NS #IJ
  6#IE
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