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

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,SPECIAL ,REL1SE
  ,CAPITAL ,PROP]TY--,"S ,ADJU/;TS 6,CO/
  ,BASE
,NUMB]3 ,,IT-#DEF;,R
,DATE3 ,OCTOB] #CJ1 #AIIB
,REF];E3

               ,APPLIC,N
    
  ,! PURPOSE ( ? ,SPECIAL ,REL1SE IS
6REVISE ,9T]PRET,N ,BULLET9 ,,IT-#DEF;,R
DAT$ ,JULY #I1 #AIIJ 6REFLECT AM5D;TS 6!
LAW4





                                      #A
           ,BULLET9 ,REVI.NS         A#A
    
#A4 ,P>AGRAPH #H (! BULLET9 IS C.ELL$ &
  REPLAC$ 0! FOLL[+3
  8#H4 ,SUBSEC;N #HD7#I7 PROVIDES T =
  GRT] C]TA9TY1 ": A TAXPAY]'S %>ES (A
  CORPOR,N >E REDEEM$1 ACQUIR$ OR C.ELL$
  0! CORPOR,N1 ! TAXPAY] IS DEEM$ 6H
  4POS$ (! %>ES 6! CORPOR,N4 ,"!=E1 ": A
  TAXPAY]'S %>ES 79CLUD+ A "PN]%IP'S
  %>ES7 9 A CORPOR,N >E REDEEM$1 ACQUIR$
  OR C.ELL$1 SUBSEC;N #HE7#D7 IS
  APPLICA# 9 ^? CASES ": ! CORPOR,N IS
  3TROLL$1 DIRECTLY OR 9DIRECTLY 9 ANY
  MANN] :AT"E 7SEE SUBSEC;N #BEF7#E.A7
  &! CURR5T V].N ( ,,IT-#FD71 IMMLY AF !
  TRANSAC;N BY3
    7A7 ! TAXPAY]1
    7B7 ! TAXPAY]'S SP\SE1 OR
    7C7 7": ! TAXPAY] IS A CORPOR,N7 A
      P]SON OR GR\P ( P]SONS 0:OM !
      TAXPAY] 0 3TROLL$1 DIRECTLY OR
      9DIRECTLY 9 ANY MANN] :AT"E4
  ,IF ! TAXPAY] R1LIZES A CAPITAL LOSS 9
  S* CIRCUM/.ES1 SUBSEC;N #HE7#D7     #B
              ,,IT-#DEF;,R           B#A
  DEEMS ! LOSS 6BE NIL &1 TGR ) P>AGRAPH
  #EC7#A77F4#B71 PROVIDES =! LOSS 6BE
  A4$ 6! ,,ACB (! TAXPAY]'S REMA9+ %>ES4

  ,SUBSEC;NS #IC7#B71 #AAB7#C71
  #AAB7#C.A7 & #AAB7#C.B7 APPLY 6REDUCE
  ! AM.T (! LOSS O!RWISE DET]M9$ F !
  4POSI;N (A %>E T IS A CAPITAL PROP]TY
  ": C]TA9 DIVID5DS
--------------------------------------#B
  H BE5 PD ON T %>E4 ,": ! LOSS F A
  4POSI;N1 AF ,JULY #AC1 #AIIJ1 (A %>E
  IS BO? A LOSS 6: SUBSEC;N #HE7#D7
  APPLIES &A LOSS 6: SUBSEC;N #IC7#B71
  #AAB7#C71 #AAB7#C.A7 OR #AAB7#C.B7 WD
  H APPLI$ B = P>AGRAPHS #DJ7#B77E7 &
  #HE7#D77A71 ! A4I;N 6! ,,ACB (! REMA9+
  %>ES "U P>AGRAPH #HE7#D77B7 IS REDUC$
  0ANY REDUC;N 6T LOSS REQUIR$ 6BE MADE
  "U SUBSEC;N #IC7#B71 #AAB7#C71
  #AAB7#C.A7 OR #AAB7#C.B740
#B4 ,"P 7B7 ( P>AGRAPH #AJ (! BULLET9 IS
  C.ELL$ & REPLAC$ 0! FOLL[+3
  87B7 ,ANY AM.T RCVD 0! TAXPAY] AF   #C
              ,,IT-#DEF;,R           A#B
  #AIGA ON A REDUC;N (! PD-UP CAPITAL (!
  CORPOR,N 9 RESPECT (! %>E IS DEDUCT$
  "U SUBP>AGRAPH #EC7#B77A77II71 EXCEPT
  6! EXT5T T ! AM.T IS DEEM$ 0SUBSEC;N
  #HD7#D7 OR1 7= ,,ACB CALCUL,NS AF
  #AIHI7 SUBSEC;N #HD7#D.A71 6BE A
  DIVID5D RCVD 0! TAXPAY]40
#C4 ,P>AGRAPH #AA (! BULLET9 IS C.ELL$ &
  REPLAC$ 0! FOLL[+3
  8#AA4 ,) C]TA9 EXCEP;NS1 A LOSS SU/A9$
  0A TAXPAY] ON ! 4POSI;N (A PROP]TY W
  REPRES5T A 8SUP]FICIAL LOSS0 PURSUANT
  6P>AGRAPH #ED7I71 ": ! SAME OR
  ID5TICAL PROP]TY 7REF]R$ 6Z 8SUB/ITUT$
  PROP]TY07 IS3
    7A7 ACQUIR$ 0! TAXPAY]1 ! TAXPAY]'S
      SP\SE OR A CORPOR,N 3TROLL$1
      DIRECTLY OR 9DIRECTLY 9 ANY MANN]
      :AT"E1 0! TAXPAY] )9 ! P]IOD 2G9N+
      #CJ "DS 2F & 5D+ #CJ "DS AF !
      4POSI;N1 &
    7B7 [N$ #CJ "DS AF ! 4POSI;N 0!
      P]SON :O ACQUIR$ ! PROP]TY4
                                      #D
              ,,IT-#DEF;,R           B#B
  ,! SUP]FICIAL LOSS IS A4$ 6! ,,ACB (!
  SUB/ITUT$ PROP]TY 0VIRTUE ( P>AGRAPH
  #EC7#A77F74 ,H["E1 = ,,ACB CALCUL,NS
  AF ,JULY #AC1 #AIIJ1 IF ! SUP]FICIAL
  LOSS WD AL H BE5 SUBJECT 6A REDUC;N "U
  SUBSEC;N #AAB7#C71 #AAB7#C.A7 OR
  #AAB7#C.B71 _H P>AGRAPH #DJ7#B77G7 N
  APPLI$1 S* REDUC;N REDUCES ! AM.T (!
  SUP]FICIAL LOSS T IS O!RWISE A4$ 6!
  ,,ACB (! SUB/ITUT$ PROP]TY "U P>AGRAPH
  #EC7#A77F740
#D4 ,! ,FR5* V].N ONLY ( P>AGRAPH #AC (!
  BULLET9 IS REVIS$ 0REPLAC+ "P 7A7 &!
  PREAM# 6"P 7B7 )! FOLL[+3
--------------------------------------#C
  87A7 D@EDUIRE1 EN VERTU DU SOUS-
  ALIN@EA #EC7#B7H77;I71 TOUT MONTANT
  QUI LUI A @ET@E VERS@E PAR LA FIDUCIE
  APR@ES #AIGA ET AVANT LE MOMENT DU
  CALCUL SOUS FORME DE DISTRIBUTION OU
  DE PAIEMENT DE CAPITAL1 AUTRE QUE LE
  PRODUIT D'UNE DISPOSITION DE LA
  PARTICIPATION AU CAPITAL OU D'UNE
  PARTIE DE CELLE-CI1 ..DANS LA       #E
              ,,IT-#DEF;,R           A#C
  MESURE O@U CE MONTANT DEVIENT PAYABLE
  AVANT .#AIHH1

  7B7 D@EDUIRE1 EN VERTU DU SOUS-ALIN@EA
  #EC7#B7H77I#.A71 TOUT MONTANT QUI LUI
  EST DEVENU PAYABLE .APR@ES .#AIHG
  7SOUS R@ESERVE DES R@EGLES
  TRANSITOIRES DONT IL EST QUESTION AU
  NUM@ERO #AD CI-DESSOUS7 ET AVANT LE
  MOMENT DU CALCUL1 @A L'@EGARD DE TOUTE
  PARTICIPATION1 AUTRE QUE LE PRODUIT
  D'UNE DISPOSITION DE LA TOTALIT@E OU
  D'UNE FRACTION DE TOUTE PARTICIPATION
  AU CAPITAL1 SAUF DANS LA MESURE O@U
  UNE FRACTION DE CETTE PARTICIPATION0
#E4 ,"P 7A7 ( P>AGRAPH #AE (! BULLET9 IS
  C.ELL$ & REPLAC$ 0! FOLL[+3
  87A7 A TRU/ REF]R$ 6IN SUBP>AGRAPH
  #AJH7#A77J77;II7 7I4E4 A TRU/ GOV]N$
  0C]TA9 REGI/]$ FUNDS OR PLANS1 AN
  EMPLOYEES' PR(IT %>+ PLAN1 AN EMPLOYEE
  B5EFIT PLAN OR AN EMPLOYEE TRU/1 A
  8MA/] TRU/0 REF]R$ 6IN P>AGRAPH
  #ADI7#A77O4#D7 OR1 = #AIIJ &        #F
              ,,IT-#DEF;,R           B#C
  SUBSEQU5T TAX,N YE>S1 A =EIGN RETIRE;T
  >RANGE;T10





















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