N n

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: f the vote and value of each disproportionate class of shares (in both cases excluding debt substitute shares) is not owned, directly or indirectly, by non-qualifying persons;20 or b. a trust, 50 percent or more of the beneficial interest and 50 percent or more of each disproportionate interest is not beneficially owned, directly or indirectly, by non-qualifying persons; and c. the company or trust meets the base-erosion test (described below); 6. an estate;21 7. a not-for-profit organization, if more than half of its beneficiaries, members, or participants are qualifying persons; 19 “Debt substitute shares” are defined in article xxix a(5)(a) as shares described in paragraph (e) of the definition of “term preferred shares” in subsection 248(1) of the act. Debt substitute shares are essentially shares issued by a company that is in financial distress. Competent authority agreements may extend the debt substitute shares exemption to other types of shares. 20 The vote and value test applies to the shares in aggregate rather than to each class of shares. 21 The treaty considers an estate to be a qualifying person regardless of the residence of the beneficiaries. 92 n c anadian tax journal / revue fiscale canadienne...
View Full Document

This note was uploaded on 11/03/2013 for the course ACCOUNTING 346 taught by Professor William during the Fall '12 term at DeVry Chicago.

Ask a homework question - tutors are online