Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Non-resident-owned corporation not a Canadian corporation, etc.

134. Notwithstanding any other provision of this Act, a non-resident-owned investment corporation that would, but for this section, be a Canadian corporation, taxable Canadian corporation or private corporation shall be deemed not to be a Canadian corporation, taxable Canadian corporation or private corporation, as the case may be, except for the purposes of section 87, subsection 88(2) and sections 212.1 and 219.

Marginal note:NRO — transition

• 134.1 (1) This section applies to a corporation that

  • (a) was a non-resident-owned investment corporation in a taxation year;

  • (b) is not a non-resident-owned investment corporation in the following taxation year (in this section referred to as the corporation’s “first non-NRO year”); and

  • (c) elects in writing filed with the Minister on or before the corporation’s filing-due date for its first non-NRO year to have this section apply.

• Marginal note:Application

  (2) A corporation to which this section applies is deemed to be a non-resident-owned investment corporation in its first non-NRO year for the purposes of applying, in respect of dividends paid on shares of its capital stock in its first non-NRO year to a non-resident person or a non-resident-owned investment corporation, subsections 133(6) to (9) (other than the definition “non-resident-owned investment corporation” in subsection 133(8)) and section 212 and any tax treaty.

Marginal note:Revocation

• 134.2 (1) This section applies to a corporation that

  • (a) revokes at any time (in this section described as the “revocation time”) its election to be taxed under section 133;

  • (b) elects to have this section apply, by filing an election in writing with the Minister on or before the corporation’s filing-due date for the taxation year of the corporation (in this section referred to as the “revocation year”) that would have included the revocation time if the corporation had not so elected; and

  • (c) specifies in the election a time (in this section referred to as the “elected time”) that is in the revocation year and is not after the revocation time.

• Marginal note:Consequences

  (2) Where this section applies to a corporation,

  • (a) the corporation’s taxation year that would have included the elected time, if the corporation had not elected to have this section apply, is deemed to end immediately before the elected time;

  • (b) a new taxation year of the corporation is deemed to begin at the elected time; and

  • (c) notwithstanding paragraph (f) of the definition “non-resident-owned investment corporation” in subsection 133(8), the corporation is deemed to be a non-resident-owned investment corporation for the period that begins at the beginning of the revocation year and ends immediately before the elected time.