376. Special computational provisions: discounted securities.

Where in any accounting period:

  1.  

    (1)     a debtor relationship of a close company1 ('the issuing company') is represented by a deeply discounted security issued by the company2; and

  2.  

    (2)     at any time in the period there is a person ('C') who stands in the position of creditor as respects the security and is:

    1.  

      (a)     a participator in the issuing company3;

    2.  

      (b)     an associate of such a participator4;

    3.  

      (c)     a company of which such a participator has control5;

    4.  

      (d)     a person who controls a company which is such a participator6;

    5.  

      (e)     an associate of a person within head (d)7; or