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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.5 Income and exemptions relating to securities /Employment related securities with artificially depressed market value / E4.507P Convertible securities with artificially depressed market value
Commentary

E4.507P Convertible securities with artificially depressed market value

Personal and employment tax

There are two anti-avoidance provisions concerning artificially depressed market value and convertible securities.

Adjustment of consideration for right to convert

The first of these anti-avoidance provisions concerns the calculation of the consideration given for the entitlement to convert1. It applies if the market value of the convertible securities (or interest in convertible securities) has been artificially reduced by at least 10% through

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