,9t]pret,n ,bullet9         #a
    
,subject3 ,9come ,tax ,act--,"rs 6,buy
  ,a4i;nal ,%>es
,numb]3 ,,it-#aaf;,r#c
,date3 ,febru>y #bh1 #aiie
,ref];e3 ,p>agraph #ae7#a77c7 7al
  def9i;n ( 8%>e01 8-mon %>e0 &
  8%>ehold]0 9 subsec;n #bdh7#a77

               ,applic,n
    
  ,? bullet9 replaces & c.els ,9t]pret,n
,bullet9 ,,it-#aaf;,r#b dat$ ,janu>y
#ab1 #aiij & applies 6b5efits 3f]r$ af
,decemb] #ai1 #aiia4

                ,summ>y
    
  ,? bullet9 d1ls )! tax tr1t;t (
b5efits deriv$ 0exi/+ [n]s ( -mon %>es
(a corpor,n :5 ! corpor,n grants !m "rs
6acquire a4i;nal %>es ( xs capital /ock4
,if ^! "rs h any value1 ! value m/ 2
9clud$ 9 ! %>ehold]'s 9come un.s      #a
             ,,it-#aaf;,r#c          a#a
id5tical "rs 6acquire %>es h be5 (f]$
6all [n]s (! corpor,n's -mon %>es4

          ,4cus.n & ,9t]pret,n
    
        ,g5]al 7p>agraphs #a-b7
    
#a4 ,subsec;n #ae7#a7 (! ,act provides
  t1 :5 a corpor,n 3f]s a b5efit on a
  %>ehold] z a result ( grant+ an op;n
  6acquire a4i;nal %>es ( xs capital
  /ock1 ! am.t or value (! b5efit is
  9clud$ 9 det]m9+ ! %>ehold]'s 9come =!
  ye>1 un.s p>agraph #ae7#a77c7 applies4
  ,"u t p>agraph1 ! am.t or value (!
  b5efit is n 9clud$ :5 det]m9+ !
  %>ehold]'s 9come if ! corpor,n al 3f]s
  id5tical "rs 6acquire %>es ( xs
  capital /ock 6all [n]s ( xs -mon %>es
  at t "t = ea* -mon %>e !y [n4 ,= 9=m,n
  on ! valu,n ( b5efits 3f]r$ on
  %>ehold]s :5 p>agraph #ae7#a77c7 does
  n apply1 see ! curr5t v].n ( ,,it-#if1
                                      #b
             ,,it-#aaf;,r#c          b#a
  ,op;ns ,grant$ 0a ,corpor,n 6,acquire
  ,%>es1 ,bonds or ,deb5tures4
#b4 ,! t]ms 8%>e01 8-mon %>e0 &
  8%>ehold]0 >e def9$ 9 subsec;n
  #bdh7#a74 ,a %>e m1ns a %>e or frac;n
  (a %>e (a corpor,n's capital /ock4 ,a
  -mon %>e is def9$ 9 t subsec;n z a %>e
  ^: hold] is n preclud$ f "picipat+ 9 !
  assets (! corpor,n 72y ! am.t pd up on
  t %>e plus a fix$ premium &a def9$
  rate ( divid5d7 :5 ! corpor,n reduces
  or redeems xs capital /ock4 ,"u
  subsec;n #bdh7#a71 a %>ehold] 9cludes
  a p]son 5titl$ 6rcv a divid5d4

      ,id5tical ,"rs 7p>agraph #c7
    
#c4 ,subp>agraph #ae7#a77c77;ii7
  provides t ! "rs >e n 3sid]$ 6be
  id5tical if ! co/ ( acquir+ ! "rs
  di6]s4 ,9 a4i;n1 if at ! "t a corpor,n
  issues "rs 6acquire a4i;nal %>es1 x is
  "kn t c]ta9 %>ehold]s w n1 or w n 2
  5titl$ to1 ex]cise or 4pose ( _!    #c
             ,,it-#aaf;,r#c          c#a
  "rs1 ! "rs >e n 3sid]$ 6h be5 3f]r$ on
  all %>ehold]s &! excep;n "u p>agraph
  #ae7#a77c7 w n apply4

          ,id5tical ,prop]ties
             7p>agraph #d7
    
#d4 ,if ! vot+ "rs atta*$ 6a "picul>
  class ( -mon %>es di6] f ! vot+ "rs
  atta*$ 6ano!r class ( -mon %>es1
  subp>agraph #ae7#a77c77;i7 provides t
  ! %>es (! "picul> class >e deem$ 6be
  id5tical 6! %>es (! o!r class4 ,h["e1
  "! m/ 2 no o!r di6];es 9 ! t]ms &
  3di;ns (! classes ( ^! %>es t cd cause
  ! fair m>ket values (! %>es 6di6]
  mat]i,y4

     ,"rs & ,w>rants 7p>agraph #e7
    
#e4 ,if a corpor,n 3f]s on all [n]s ( xs
  -mon %>es id5tical "rs t all[ !
  %>ehold] 6buy units 3si/+ ( a4i;nal
  %>es (! corpor,n & w>rants :1 if    #d
             ,,it-#aaf;,r#c          d#a
  ex]cis$1 all[ ! hold] 6buy a4i;nal
  %>es (! corpor,n1 p>agraph #ae7#a77c7
  wd apply 6! 9itial "r z well z 6!
  w>rant por;n (! unit at ! "t !
  corpor,n 3f]s ! "rs4

        ,non-resid5t ,%>ehold]s
             7p>agraph #f7
    
#f4 ,if a ,canadian corpor,n issues "rs
  6buy a4i;nal %>es1 c]ta9 non-resid5t
  %>ehold]s may 2 b>r$ f subscrib+ = s*
  %>es4 ,? situ,n may 2 caus$ 0re/ric;ns
  9 a ,canadian law or 2c ! corpor,n did
  n -ply )! securities regul,ns 9 !
  c.try ": ! non-resid5t %>ehold]s
  reside4 ,9 ^! circum/.es1 p>agraph
  #ae7#a77c7 is / 3sid]$ 6apply provid$
  t "rs >e 9 fact issu$ 6! non-resid5t
  %>ehold]s & !y >e 5titl$ 6sell s* "rs4
  ,if p>agraph #ae7#a77c7 applies1 non-
  resid5ts w n 2 subject 6)hold+ tax "u
  ,"p ,,xiii (! ,act on ! value ( s* "rs
  issu$ 6!m4                          #e
        ,\-(-prov9ce ,%>ehold]s      e#a
             7p>agraph #g7
    
#g4 ,z 9 ! non-resid5t situ,n 4cuss$
  abv1 resid5ts ( "o or m prov9ces may 2
  b>r$ f buy+ a4i;nal %>es 2c (
  re/ric;ns 9 prov9cial law or z a
  result ( securities regul,ns n hav+
  be5 met 9 a "picul> prov9ce4 ,p>agraph
  #ae7#a77c7 al applies 9 ^! circum/.es
  provid$ t ! "rs >e 9 fact issu$ 6!
  -mon %>ehold]s :o >e b>r$ f
--------------------------------------#b
  subscrib+ 0prov9cial law or securities
  regul,ns &! %>ehold]s >e 5titl$ 6sell
  s* "rs4

           ,9su6ici5t ,hold+s
             7p>agraph #h7
    
#h4 ,x may happ5 t a %>ehold] does n rcv
  "rs 6buy a4i;nal %>es solely 2c !
  %>ehold]'s hold+s >e too small 65title
  ! %>ehold] 6su6ici5t "rs 6pur*ase a
  full %>e4 ,= example1 a hold+ (     #f
             ,,it-#aaf;,r#c          a#b
  five %>es may 5title ! [n] 6pur*ase "o
  a4i;nal %>e &a %>ehold] may only [n
  f\r %>es4 ,9 ^! circum/.es1 p>agraph
  #ae7#a77c7 is 3sid]$ 6be applica# if !
  "rs s )held >e issu$ 6a tru/ee :o
  sells !m & pays ! proce$s1 less
  exp5ses1 on a pro rata basis 6!
  %>ehold]s 3c]n$4

      ,nature ( "rs 7p>agraph #i7
    
#i4 ,"rs 6buy a4i;nal %>es >e norm,y
  capital prop]ty hav+ no co/ 7un.s !y
  >e pur*as$74 ,?us a capital ga9 may
  >ise if !y >e 4pos$ ( r ?an ex]cis$4
  ,h["e1 :5 ! "uly+ %>es >e n capital
  prop]ty 6! hold]1 ! "rs >e n 3sid]$
  6be capital prop]ty1 &! ga9 on _!
  4posi;n is 3sid]$ 6be on a3.t ( 9come4




                                      #g
             ,,it-#aaf;,r#c          b#b
  ,if y h any -;ts reg>d+ ! matt]s
4cuss$ 9 ? bullet91 pl1se s5d !m to3

  ,director1 ,te*nical ,public,ns
    ,divi.n
  ,policy & ,legisl,n ,bran*
  ,rev5ue ,canada
  #hge ,h]on ,road
  ,ottawa ,,on ,k#a;,a #j;,l#h














                                      #h
         ,explan,n ( ,*anges =        #c
       ,9t]pret,n ,bullet9 ,,it-
      #aaf;,r#c ,"rs 6buy ,a4i;nal
                 ,%>es
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ de"p;tal
posi;ns4

                ,ov]view
    
  ,? bullet9 d1ls )! tax tr1t;t (
b5efits deriv$ 0a %>ehold] (a corpor,n
:o has be5 (f]$ 0! corpor,n a "r
6acquire %>es ( xs capital /ock4 ,we h
revis$ ? bullet9 69corporate ! am5d;ts
6! ,9come ,tax ,act 5act$ by3 ,s4,c4
#aiid1 c4#g1 ,s*$ule ,,viii 7#aiic c4#bd
--=m]ly ,bill ;,c-#ib7 & ,s4,c4 #aiid
c4#ba 7=m]ly ,bill ;,c-#bg74          #i
       ,legislative & o!r *anges     a#c
    
  ,p>agraph #a 0 revis$ 6reflect an
am5d;t 6p>agraph #ae7#a77c7 t 0 9troduc$
0,bill ;,c-#ib4 ,=! value (! %>ehold]
b5efit n 6be 9clud$ 9 9come "u subsec;n
#ae7#a71 ! am5d;t 6p>agraph #ae7#a77c7
requires t ! "rs ! corpor,ns m/ grant
6all [n]s ( -mon %>es 2 id5tical 6e o!r
"r 3f]r$ at t "t4
  ,new p>agraph #b 0 exp&$ 6def9e ! t]ms
8-mon %>e0 & 8%>ehold]0 9 a4i;n 6! t]m
8%>e0 t 0 previ\sly f.d 9 =m] p>agraph
#a4
  ,new p>agraph #c 0 a4$ 6expla9 !
require;t t ! "rs corpor,ns m/ grant
6all [n]s ( -mon %>es h 6be id5tical 6e
o!r "r 3f]r$ at t "t4 ,? p>agraph
reflects ! ,bill ;,c-#bg am5d;t 9troduc+
subp>agraph #ae7#a77c77;ii7 t provides t
"rs >e n id5tical if ! co/ ( acquir+ !m
di6]s4
  ,new p>agraph #d 0 a4$ 64cuss id5tical
prop]ties4 ,x reflects ! ,bill ;,c-#bg
am5d;t 6p>agraph #ae7#a77c7 t        #aj
             ,,it-#aaf;,r#c          b#c
9troduc$ subp>agraph #ae7#a77c77;i74 ,"u
t subp>agraph1 -mon %>es ) di6]5t vot+
"rs >e 3sid]$ 6be id5tical prop]ties
provid$ no o!r di6];es 9 _! t]ms &
3di;ns wd cause _! fair m>ket values
6di6] mat]i,y4
  ,new p>agraph #e 0 a4$ 6expla9 h[
p>agraph #ae7#a77c7 applies :5 a
corpor,n issues 6all -mon %>ehold]s
id5tical "rs 6buy units t 3si/ ( %>es &
w>rants t may 2 ex]cis$ 6acquire a4i;nal
%>es4
  ,new p>agraph #i 7=m] p>agraph #d7 0
exp&$ 6cl>ify t a "r grant$ on a %>e is
norm,y a capital prop]ty except if !
"uly+ %>e is n capital prop]ty 6! hold]4
  ,o!r m9or *anges 7 made 6? bullet9
6improve cl>;y & r1dabil;y4





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