Officer: MP Sarazin
File: 7-9122016
ROUND TABLE - CGA - JANUARY 10, 1992
QUESTION #11
Could the Department indicate in what circumstances paragraph 6205(4)(e) of the Income Tax Regulations applies? For example, you ask whether a common share that is not a prescribed share because of its attributes could become a prescribed share on a given date if the attributes preventing it from being a prescribed share are removed.
ANSWER
Where at any particular time after November 21, 1985, the terms or conditions of a share are changed, an existing agreement in respect thereof is changed or a new agreement in respect of the share is entered into, the share shall, under this paragraph and for the purpose of determining whether it is a prescribed share, be deemed to have been issued at that particular time. A share that would otherwise not have been a prescribed share would thus be deemed to be a prescribed share as of the date of the change bringing the share into conformity with the requirements of subsection 6205(1) of the Income Tax Regulations.