Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2017-09-14 and last amended on 2017-07-01. Previous Versions

Prescribed Payment Card Corporation Share not Mark-to-Market Property

 For the purpose of paragraph (b) of the definition excluded property in subsection 142.2(1) of the Act, a prescribed payment card corporation share of a taxpayer at any time means a share of the capital stock of a particular corporation if, at that time,

  • (a) the particular corporation is any one of the following

    • (i) MasterCard International Incorporated,

    • (ii) MasterCard Incorporated, or

    • (iii) Visa Inc.; and

  • (b) the share

    • (i) is of a class of shares that is not listed on a stock exchange,

    • (ii) is not convertible into or exchangeable for a share of the class of the capital stock of a corporation that is listed on a stock exchange, and

    • (iii) was issued by the particular corporation to the taxpayer or to a person related to the taxpayer.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2009, c. 2, s. 118.

 [Repealed, 2009, c. 2, s. 118]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2009, c. 2, s. 118.

Significant Interest in a Corporation

 For the purpose of paragraph 142.2(3)(c) of the Act, a share described in paragraph 9002(2)(b) is prescribed in respect of all taxpayers.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2009, c. 2, s. 118.

Financing Arrangement not a Specified Debt Obligation

 For the purpose of paragraph (c) of the definition specified debt obligation in subsection 142.2(1) of the Act, a property is a prescribed property throughout a taxation year if

  • (a) the property is a direct financing lease, or any other financing arrangement, of a taxpayer that is reported as a loan in the taxpayer’s financial statements for the year prepared in accordance with generally accepted accounting principles; and

  • (b) in computing the taxpayer’s income for the year, an amount is deductible under paragraph 20(1)(a) of the Act in respect of the property that is the subject of the arrangement.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/99-91, s. 8;
  • 2009, c. 2, s. 118.

Prescribed Non-reporting Financial Institution

 For the purposes of the definition non-reporting financial institution in subsection 270(1) of the Act, the following entities are prescribed:

  • (a) a labour-sponsored venture capital corporation as prescribed in section 6701;

  • (b) a registered retirement savings plan;

  • (c) a registered retirement income fund;

  • (d) a pooled registered pension plan;

  • (e) a deferred profit sharing plan;

  • (f) a registered disability savings plan;

  • (g) a registered education savings plan;

  • (h) a registered pension plan;

  • (i) a trust governed by a registered pension plan;

  • (j) a trust described in paragraph 149(1)(o.4) of the Act, if all of the interests in the trust as a beneficiary are held by one or more registered pension plans;

  • (k) a corporation described in clause 149(1)(o.1)(i)(A) or subparagraph 149(1)(o.1)(ii) or (o.2)(i) of the Act;

  • (l) a corporation described in any of subparagraphs 149(1)(o.2)(ii) to (iii) of the Act, if all of the shares of the corporation are held by

    • (i) one or more registered pension plans or trusts governed by registered pension plans,

    • (ii) one or more trusts described in paragraph (j), or

    • (iii) one or more corporations described in this paragraph or paragraph (k);

  • (m) a trust, if all of the interests in the trust as a beneficiary are held by one or more plans, trusts or corporations described in paragraph (i), (k) or (l);

  • (n) a central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act and whose accounts are maintained for member financial institutions; and

  • (o) a TFSA.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2016, c. 12, s. 83.

Prescribed Excluded Accounts

 For the purposes of the definition excluded account in subsection 270(1) of the Act, the following accounts are prescribed:

  • (a) a registered retirement savings plan;

  • (b) a registered retirement income fund;

  • (c) a pooled registered pension plans;

  • (d) a registered pension plan;

  • (e) a registered disability savings plan;

  • (f) a registered education savings plan;

  • (g) a deferred profit sharing plan;

  • (h) a net income stabilization account, including a NISA Fund No. 2;

  • (i) an eligible funeral arrangement;

  • (j) a dormant account if the balance or value of the account does not exceed 1,000 USD; and

  • (k) a TFSA.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2016, c. 12, s. 83.

PART XCIFinancial Institutions — Income from Specified Debt Obligations

Interpretation

Marginal note:Definitions

 The following definitions apply in this Part.

fixed payment obligation

fixed payment obligation, of a taxpayer, means a specified debt obligation under which

  • (a) the amount and timing of each payment (other than a fee or similar payment or an amount payable because of a default by the debtor) to be made by the debtor were fixed when the taxpayer acquired the obligation and have not been changed; and

  • (b) all payments are to be made in the same currency. (titre à paiements fixes)

primary currency

primary currency, of a specified debt obligation, means

  • (a) the currency with which the obligation is primarily connected; and

  • (b) if there is no such currency, Canadian currency. (monnaie principale)

tax basis

tax basis, of a specified debt obligation at any time to a taxpayer, has the meaning assigned by subsection 142.4(1) of the Act. (montant de base)

total return

total return, of a taxpayer from a fixed payment obligation, means the amount, measured in the primary currency of the obligation, by which

  • (a) the total of all amounts each of which is the amount of a payment (other than a fee or similar payment) required to be made by the debtor under the obligation after its acquisition by the taxpayer

exceeds

  • (b) the cost to the taxpayer of the obligation. (rendement total)

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2009-222, s. 7.

Prescribed Inclusions and Deductions

Marginal note:Inclusion
  •  (1) For the purpose of paragraph 142.3(1)(a) of the Act, where a taxpayer holds a specified debt obligation at any time in a taxation year, the amount prescribed in respect of the obligation for the year is the total of

    • (a) the taxpayer’s accrued return from the obligation for the year,

    • (b) if the taxpayer’s accrual adjustment determined under section 9102 in respect of the obligation for the year is greater than nil, the amount of the adjustment, and

    • (c) if a foreign exchange adjustment is determined under section 9104 in respect of the obligation for the year and is greater than nil, the amount of the adjustment.

  • Marginal note:Deduction

    (2) For the purpose of paragraph 142.3(1)(b) of the Act, where a taxpayer holds a specified debt obligation at any time in a taxation year, the amount prescribed in respect of the obligation is the total of

    • (a) if the taxpayer’s accrual adjustment determined under section 9102 in respect of the obligation for the year is less than nil, the absolute value of the amount of the adjustment, and

    • (b) if a foreign exchange adjustment is determined under section 9104 in respect of the obligation for the year and is less than nil, the absolute value of the amount of the adjustment.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2009-222, s. 7.
 
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