Exemption for an interest in a foreign company engaged in certain activities connected with real property



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You can qualify for this exemption if you have an interest consisting of shares in a publicly listed company whose activities are connected with commercial real property. The following requirements must be satisfied:

  • Approved stock exchange

You hold shares in the company of a class listed on any stock market of a stock exchange approved in regulation 152I, Schedule 12 of the Regulations. See Appendix 1: Approved stock exchanges for more information.

  • Trading requirement

The class of shares you hold in the foreign company must be widely held and actively traded on a regular basis on a stock market of an approved stock exchange during the period in which the exemption applies. [section 511]

  • A foreign company principally engaged in real property activities

The foreign company must be principally engaged in actively carrying on one or more activities connected with real property.

The specified activities are:

  • construction
  • development of real property through capital improvement
  • receipt of rental income from commercial real property owned by the foreign company where the management, maintenance and security services for the commercial property are principally provided by directors or employees of the foreign company or by a wholly owned subsidiary that is principally engaged in providing those services through its directors and employees
  • provision of management services in respect of real property through directors or employees of the foreign company
  • acting as agent for the sale or purchase of commercial real property. [subparagraph 511(b)(ii)]
Last modified: 04 Feb 2010QC 21777