Under s. 49 of the new Québec Business Corporations Act, it is possible to create classes and series of shares with exactly the same rights and restrictions. Those classes or series have their own issued and paid-up share capital accounts by virtue of the QBCA. Will a taxpayer who owns shares of each class with exactly the same rights and restrictions be required to average the two classes in determining the taxpayer’s adjusted cost base? CRA responded:
For purposes of calculating adjusted cost base and subsection 47(1), the CRA would consider shares of different classes with exactly the same rights and restrictions to be identical properties even though they are of different classes of shares. …
The question would therefore be whether, depending on the facts and circumstances of a particular situation, shares of different classes have exactly the same rights and restrictions. Among the rights that would require consideration in determining the differences, would be the right to the issued and paid-up capital respecting a share of one class as compared to that for another class.