Income Tax Act — I-3.3 44.1
Definitions 44.1 (1) The definitions in this subsection apply in this section. ACB reduction of an individual in respect of a replacement share of the individual in respect of a qualifying disposition of the individual means the amount determined by the formula D × (E/F) where D is the permitted deferral of the individual in respect of the qualifying disposition; E is the cost to the individual of the replacement share; and F is the cost to the individual of all the replacement shares of the individual in respect of the qualifying disposition. ( réduction du prix de base rajusté ) active business corporation at any time means, subject to subsection (10), a corporation that is, at that time, a taxable Canadian corporation all or substantially all of the fair market value of the assets of which at that time is attributable to assets of the corporation that are (a) assets used principally in an active business carried on by the corporation or by an active business corporation that is related to the corporation; (b) shares issued by or debt owing by other active business corporations that are related to the corporation; or (c) a combination of assets described in paragraphs (a) and (b). ( société exploitant activement une entreprise ) carrying value of the assets of a corporation at any time means the amount at which the assets of the corporation would be valued for the purpose of the corporation’s balance sheet as of that time if that balance sheet were prepared in accordance with generally accepted accounting principles used in Canada at that time, except that an asset of a corporation that is a share or debt issued by a related corporation is deemed to have a carrying value of nil. ( valeur comptable ) common share [Repealed, 2026, c. 3, s. 8] eligible pooling arrangement in respect of an individual means an agreement in writing made between the individual and another person or partnership (which other person or partnership is referred to in this definition and subsection (3) as the “investment manager”) where the agreement provides for (a) the transfer of funds or other property by the individual to the investment manager for the purpose of making investments on behalf of the individual; (b) the purchase of eligible small business corporation shares with those funds, or the proceeds of a disposition of the other property, within 60 days after receipt of those funds or the other property by the investment manager; and (c) the provision of a statement of account to the individual by the investment manager at the end of each month that ends after the transfer disclosing the details of the investment portfolio held by the investment manager on behalf of the individual at the end of that month and the details of the transactions made by the investment manager on behalf of the individual during the month. ( arrangement admissible de mis en commun ) eligible small business corporation share of an individual means a share issued by a corporation to the individual if (a) assets used principally in an active business carried on primarily in Canada by the corporation or by an eligible small business corporation that is related to the corporation; (b) shares issued by or debt owing by other eligible small business corporations that are related to the corporation; or (c) a combination of assets described in paragraphs (a) and (b). ( société admissible exploitant une petite entreprise ) eligible small business corporation share of an individual means a common share issued by a corporation to the individual if (a) at the time the share was issued, the corporation was an eligible small business corporation; and (b) immediately before and after the share was issued, the total carrying value of the assets of the corporation and corporations related to it did not exceed $100,000,000. ( action déterminée de petite entreprise ) permitted deferral of an individual in respect of a qualifying disposition of the individual means the amount determined