VIII, s. 6(1)]
Marginal note:Money borrowed
(4)Notwithstanding any other provision of this Act, an amount paid or payable by a taxpayer pursuant to a legal obligation to pay interest on borrowed money used for the purpose of acquiring a small business development bond shall be deemed to be an amount paid or payable, as the case may be, on borrowed money used for the purpose of earning income from a business or property.
Marginal note:False declaration
(5)Where the Minister establishes that an issuer has knowingly or under circumstances amounting to gross negligence made a false declaration in a joint election in respect of an obligation, the reference in subparagraph 15.1(2)(c)(iii) to “the amount paid or payable” shall in respect of the obligation be read as a reference to “3 times the amount paid or payable”.
Marginal note:Disqualification
(6)Where at a particular time an issuer makes a joint election in respect of an obligation and
(a)the issuer or any other corporation associated at the time the obligation was issued with the issuer,
(b)an individual who controls or is a member of a related group that controls the issuer, or
(c)a partnership any member of which, who is a majority interest partner of the partnership, controls, or is a member of a related group that controls, the issuer
had at or before the particular time made a joint election in respect of any small business development bond or small business bond, as the case may be, for the purposes of this section, the issuer shall be deemed not to be an eligible small business corporation in respect of the obligation.
Marginal note:Exception
(7)Subsection 15.1(6) does not apply in respect of an obligation issued at any time where the issue price of the obligation does not exceed the amount, if any, by which
(a)$500,000
exceeds
(b)the total of all amounts each of which is the principal amount outstanding immediately after that time in respect of
(i)another obligation that is a small business development bond issued by
(A)the issuer, or
(B)a corporation associated with the issuer, or
(ii)a small business bond issued by
(A)an individual who controls, or is a member of a related group that controls, the issuer, or
(B)a partnership any member of which, who is a majority interest partner of the partnership, controls, or is a member of a related group that controls, the issuer.
(8) to (12)[Repealed, 1994, c. 7, Sch