Income Tax Act — I-3.3 149.2
e to this subsection. Transitional rule (8) If the original corporate holdings percent-age of a private foundation in respect of a class of shares of the capital stock of a corporation exceeds 20%, for the purpose of applying the definition “excess corporate holdings percent-age” in subsection 149.1(1) to (a) the first taxation year of the private foundation that begins after March 18, 2007, the reference to 20% in that definition in respect of that class is to be read as the original corporate holdings percentage of the private foundation in respect of that class; (b) taxation years of the private foundation that are after the taxation year referred to in paragraph (a) and that begin before March 19, 2012, the reference to 20% in that definition in respect of that class is to be read as the greater of (i) 20%, and (ii) the lesser of (A) the total corporate holdings percent-age of the private foundation in respect of the class at the end of the immediately preceding taxation year, and (B) the original corporate holdings percentage in respect of that class; (c) taxation years of the private foundation that begin after March 18, 2012 and before March 19, 2017, the reference to 20% in that definition in respect of that class is to be read as the greater of (i) 20%, and (ii) the lesser of (A) the total corporate holdings percentage of the private foundation in respect of the class at the end of the preceding taxation year, and (B) the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 20%; (d) taxation years of the private foundation that begin after March 18, 2017 and before March 19, 2022, the reference to 20% in that definition in respect of that class is to be read as the greater of (i) 20%, and (ii) the lesser of (A) the total corporate holdings percent-age of the private foundation in respect of the class at the end of the preceding taxation year, and (B) the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 40%; and (e) taxation years of the private foundation that begin after March 18, 2022 and before March 19, 2027, the reference to 20% in that definition in respect of that class is to be read as the greater of (i) 20%, and (ii) the lesser of (A) the total corporate holdings percentage of the private foundation in respect of the class at the end of the preceding taxation year, and (B) the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 60%. Where subsection (10) applies (9) Subsection (10) applies for the purposes of applying section 149.1 and subsections (8) and 188.1(3.1) to a private foundation at a particular time if, both on March 18, 2007 and at the particular time, (a) the private foundation was the sole trustee of a trust, or was a majority interest beneficiary (within the meaning assigned by section 251.1) of a trust more than 50% of the trustees of which were the private foundation and one or more relevant persons in respect of the private foundation; and (b) the trust held one or more shares of a class of the capital stock of a corporation. Shares held through a trust on March 18, 2007 (10) If this subsection applies at a particular time to a private foundation in respect of shares of a class of the capital stock of a corporation held by a trust, the private foundation is deemed to hold at the particular time that number of those shares as is determined by the formula A × B/C where A is the lesser of the number of those shares held by the trust on March 18, 2007 and the number so held at the particular time; B is the total fair market value of all interests held by the private foundation in the trust at the particular time; and C is the total fair market value of all property held by the trust at the particular time. Discretionary trust