Income Tax Act — I-3.3 18.3
er security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011; (b) if paragraph (a) does not apply to the entity and one or more securities of the entity would have been stapled securities of the entity on July 19, 2011 had the definition stapled security in this subsection come into force on July 19, 2011, the period that begins on July 20, 2011 and ends on the earliest of (i) July 20, 2012, (ii) the first day after July 20, 2011 on which any of those securities is materially altered, and (iii) the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of (A) a transaction (I) that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and (II) that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or (B) the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011; and (c) in any other case, if the entity is a subsidiary of another entity on July 20, 2011 and the other entity has a transition period, the period that begins on July 20, 2011 and ends on the earliest of (i) the day on which the other entity’s transition period ends, (ii) the first day after July 20, 2011 on which the entity ceases to be a subsidiary of the other entity, and (iii) the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of (A) a transaction (I) that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and (II) that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or (B) the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011. ( période de transition ) Property representing security (2) For the purpose of determining whether a particular security of an entity is a stapled security, if a receipt or similar property (referred to in this subsection as the “receipt”) represents all or a portion of the particular security and the receipt would be described in paragraphs (a) and (b) of the definition stapled security in subsection (1) if it were a security of the entity, then (a) the particular security is deemed to be described in those paragraphs; and (b) a security that would be a reference security in respect of the receipt is deemed to be a reference security in respect of the particular security. Amounts not deductible (3) Notwithstanding any other provision of this Act, in computing the income of a particular entity for a taxation year from a business or property, no deduction may be made in respect of an amount (a) that is paid or payable after July 19, 2011, unless the amount is paid or payable in respect of the entity’s transition period; and (b) that is (i) interest paid or payable on a liability of the particular entity that is a stapled security, unless each reference security in respect of the stapled security is a liability, or (ii) if a security of the particular entity, a subsidiary of the particular entity or an