Douglas Charles Abbott (Minister of Finance and Receiver General)
Liberal
Mr. ABBOTT:
I perhaps was not quite clear in my explanation. What happens is this. The individual buys the shares from corporation No. 2 before the dividend is paid out. That is where I was incomplete in my explanation. An individual buys shares of a private company from this other corporation before the dividend is paid out, and he receives the dividend tax free.
Topic: INCOME WAR TAX ACT