Income Tax Act — I-3.3 44.1
 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 by the formula (G/H) × I where G is the lesser of the individual’s proceeds of disposition from the qualifying disposition and the total of all amounts each of which is the cost to the individual of a replacement share in respect of the qualifying disposition; H is the individual’s proceeds of disposition from the qualifying disposition; and I is the individual’s capital gain from the qualifying disposition. ( montant de report autorisé ) qualifying cost [Repealed, 2003, c. 15, s. 70(1)] qualifying disposition of an individual (other than a trust) means, subject to subsection (9), a disposition of shares of the capital stock of a corporation where each such share disposed of was (a) an eligible small business corporation share of the individual; (b) throughout the period during which the individual owned the share, a share of an active business corporation; and (c) throughout the 185-day period that ended immediately before the disposition of the share, owned by the individual. ( disposition admissible ) qualifying portion of a capital gain [Repealed, 2003, c. 15, s. 70(1)] qualifying portion of the proceeds of disposition [Repealed, 2003, c. 15, s. 70(1)] replacement share of an individual in respect of a qualifying disposition of the individual in a taxation year means an eligible small business corporation share of the individual that is (a) acquired by the individual in the year or in the following calendar year; and (b) designated by the individual in the individual’s return of income for the year to be a replacement share in respect of the qualifying disposition. ( action de remplacement ) Capital gain deferral (2) Where an individual has made a qualifying disposition in a taxation year, (a) the individual’s capital gain for the year from the qualifying disposition is deemed to be the amount by which the individual’s capital gain for the year from the qualifying disposition, determined without reference to this section, exceeds the individual’s permitted deferral in respect of the qualifying disposition; (b) in computing the adjusted cost base to the individual of a replacement share of the individual in respect of the qualifying disposition at any time after its acquisition, there shall be deducted the amount of the ACB reduction of the individual in respect of the replacement share; and (c) where the qualifying disposition was a disposition of a share that was taxable Canadian property of the individual, the replacement share of the individual in respect of the qualifying disposition is deemed to be, at any time that is within 60 months after the disposition, taxable Canadian property of the individual. Special rule — re eligible pooling arrangements (3) Except for the purpose of the definition eligible pooling arrangement in subsection (1), any transaction entered into by an investment manager under an eligible pooling arrangement on behalf of an individual is deemed to be a transaction of the individual and not a transaction of the investment manager. Special rule — re acquisitions on death (4) For the purpose of this section, a share of the capital stock of a corporation, acquired by an individual as a consequence of the death of a person who is the individual’s spouse, common-law partner or parent, is deemed to be a share that was acquired by the individual at the time it was acquired by that person and owned by the individual throughout the period that it was owned by that person, if (a) where the person was the spouse or common-law partner of the individual, the share was an eligible small business share of the person and subsection 70(6) applied to the individual in respect of the share; or (b) where the person was the individual’s parent, the share was an eligible small business share of the parent and subsection 7