Income Tax Act — I-3.3 (a)
taxable RFI share at any particular time means a share of the capital stock of a corporation issued before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 or a grandfathered share of the capital stock of a corporation, where at the particular time under the terms or conditions of the share or any agreement in respect of the share, (a) it may reasonably be considered, having regard to all the circumstances, that the amount of the dividends that may be declared or paid on the share (in this definition referred to as the “dividend entitlement”) is, by way of a formula or otherwise (i) fixed, (ii) limited to a maximum, or (iii) established to be not less than a minimum, or (b) it may reasonably be considered, having regard to all the circumstances, that the amount that the shareholder is entitled to receive in respect of the share on the dissolution, liquidation or winding-up of the corporation (in this definition referred to as the “liquidation entitlement”) is, by way of formula or otherwise (i) fixed, (ii) limited to a maximum, or (iii) established to be not less than a minimum, but does not include a share that is at the particular time a prescribed share, a term preferred share, a share described in paragraph (e) of the definition term preferred share in this subsection during the applicable time period referred to in that paragraph or a taxable preferred share and, for the purposes of this definition, (c) the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all dividends on the share are determined solely by reference to the dividend entitlement of another share of the capital stock of the corporation or of another corporation that controls the corporation that would not be a taxable preferred share if (i) the definition taxable preferred share in this subsection were read without reference to paragraph (f) of that definition, (ii) the other share were issued after June 18, 1987, and (iii) the other share were not a grandfathered share, a prescribed share or a share described in paragraph (e) of the definition term preferred share in this subsection, (d) the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all the liquidation entitlement is determinable solely by reference to the liquidation entitlement of another share of the capital stock of the corporation or of another corporation that controls the corporation that would not be a taxable preferred share if (i) the definition taxable preferred share in this subsection were read without reference to paragraph (f) of that definition, (ii) the other share were issued after June 18, 1987, and (iii) the other share were not a grandfathered share, a prescribed share or a share described in paragraph (e) of the definition term preferred share in this subsection, and (e) where (i) it may reasonably be considered that the dividends that may be declared or paid to a shareholder at any time on a share (other than a prescribed share or a share described in paragraph (e) of the definition term preferred share in this subsection during the applicable time period referred to in that paragraph) of the capital stock of a corporation issued after December 15, 1987 or acquired after June 15, 1988 are derived primarily from dividends received on taxable RFI shares of the capital stock of another corporation, and (ii) it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1, the share shall be deemed at that time to be a taxable RFI share; ( action particulière à une institution financière )