On February 5, 2009, Mr. X acquired all the shares of Opco A (at all relevant times, a small business corporation) from an unrelated individual, and disposed of those shares to an unrelated person, and at a gain, on February 5, 2011. Was the requirement in s. 110.6(1) – qualified small business corporation share – para. (b), that “throughout the 24 months immediately preceding the determination time, [the share] was not owned by anyone other than the individual or a person or partnership related to the individual” satisfied, having regard to ss. 28 and 35 of the Interpretation Act? CRA responded:
In this case, the "determination time" … is February 5, 2011. In that regard, the 24-month period preceding February 5, 2011, throughout which the share was not owned by anyone other than the individual, would generally begin on February 5, 2009 and end on February 4, 2011.
Since on February 5, 2009, a person unrelated to Mr. X … owned the shares … the requirement regarding the 24-month holding period of the shares would not be satisfied … .