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

Regulations are current to 2016-01-25 and last amended on 2015-07-01. Previous Versions

Prescribed Offshore Region

 For the purposes of the definition specified percentage in subsection 127(9) of the Act, the following region is a prescribed offshore region:

  • (a) that submarine area, not within a province, adjacent to the coast of Canada and extending throughout the natural prolongation of that portion of the land territory of Canada comprising the Gaspé Peninsula and the provinces of Newfoundland, Prince Edward Island, Nova Scotia and New Brunswick to the outer edge of the continental margin or to a distance of two hundred nautical miles from the baselines from which the territorial sea of Canada is measured, whichever is the greater; and

  • (b) the waters above the submarine area referred to in paragraph (a).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/89-463, s. 1.

Prescribed Area

 For the purpose of paragraph (c.1) of the definition qualified property in subsection 127(9) of the Act, the area prescribed is the area comprising the Provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and the Gaspé Peninsula.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/95-244, s. 5.

PART XLVIIElection in Respect of Certain Property Owned on December 31, 1971

 Any election by an individual under subsection 26(7) of the Income Tax Application Rules, shall be made by filing with the Minister the form prescribed.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 48.

PART XLVIIIStatus of Corporations and Trusts

[SOR/94-686, s. 79(F)]
  •  (1) For the purposes of subparagraph (b)(i) of the definition public corporation in subsection 89(1) of the Act, the following conditions are prescribed in respect of a corporation other than a cooperative corporation (within the meaning assigned by section 136 of the Act) or a credit union:

    • (a) a class of shares of the capital stock of the corporation designated by the corporation in its election or by the Minister in his notice to the corporation, as the case may be, shall be qualified for distribution to the public;

    • (b) there shall be no fewer than

      • (i) where the shares of that class are equity shares, 150, and

      • (ii) in any other case, 300

      persons, other than insiders of the corporation, each of whom holds

      • (iii) not less than one block of shares of that class, and

      • (iv) shares of that class having an aggregate fair market value of not less than $500; and

    • (c) insiders of the corporation shall not hold more than 80 per cent of the issued and outstanding shares of that class.

  • (2) For the purposes of subparagraph (c)(i) of the definition public corporation in subsection 89(1) of the Act, the following conditions are prescribed in respect of a corporation:

    • (a) insiders of the corporation shall hold more than 90 per cent of the issued and outstanding shares of each class of shares of the capital stock of the corporation that

      • (i) was, at any time after the corporation last became a public corporation, listed on a designated stock exchange in Canada, or

      • (ii) was a class, designated as described in paragraph (1)(a), by virtue of which the corporation last became a public corporation;

    • (b) in respect of each class of shares described in subparagraph (a)(i) or (ii), there shall be fewer than

      • (i) where the shares of that class are equity shares, 50, and

      • (ii) in any other case, 100

      persons, other than insiders of the corporation, each of whom holds

      • (iii) not less than one block of shares of that class, and

      • (iv) shares of that class having an aggregate fair market value of not less than $500; and

    • (c) there shall be no class of shares of the capital stock of the corporation that is qualified for distribution to the public and complies with the conditions described in paragraphs (1)(b) and (c).

  • (3) Where, by virtue of an amalgamation (within the meaning assigned by section 87 of the Act) of predecessor corporations any one or more of which was, immediately before the amalgamation, a public corporation, shares of any class of the capital stock of any such public corporation that was

    • (a) at any time after the corporation last became a public corporation, listed on a designated stock exchange in Canada, or

    • (b) the class, designated as described in paragraph (1)(a), by virtue of which the corporation last became a public corporation,

    are converted into shares of any class (in this subsection referred to as the “new class”) of the capital stock of the new corporation, the new class shall, for the purposes of subsection (2), be deemed to be a class, designated as described in paragraph (1)(a), by virtue of which the new corporation last became a public corporation.

  • (4) Any election under subparagraphs (b)(i) or (c)(i) of the definition public corporation in subsection 89(1) of the Act shall be made by filing with the Minister the following documents:

    • (a) the form prescribed by the Minister;

    • (b) where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;

    • (c) where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation; and

    • (d) a statutory declaration made by a director of the corporation stating that, after reasonable inquiry for the purpose of informing himself in that regard, to the best of his knowledge the corporation complies with all the prescribed conditions that must be complied with at the time the election is made.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/83-268, s. 8;
  • SOR/94-686, ss. 74(F), 79(F);
  • SOR/2001-216, s. 3;
  • 2007, c. 35, s. 77;
  • 2013, c. 34, s. 396(F).

 For the purposes of paragraph 107(1)(a) and subsections 107(1.1), (2) and (4.1) of the Act, the following are prescribed trusts:

  • (a) a trust maintained primarily for the benefit of employees of a corporation or two or more corporations which do not deal at arm’s length with each other, where one of the main purposes of the trust is to hold interests in shares of the capital stock of the corporation or corporations, as the case may be, or any corporation not dealing at arm’s length therewith;

  • (b) a trust established exclusively for the benefit of one or more persons each of whom was, at the time the trust was created, either a person from whom the trust received property or a creditor of that person, where one of the main purposes of the trust is to secure the payments required to be made by or on behalf of that person to such creditor; and

  • (c) a trust all or substantially all of the properties of which consist of shares of the capital stock of a corporation, where the trust was established pursuant to an agreement between two or more shareholders of the corporation and one of the main purposes of the trust is to provide for the exercise of voting rights in respect of those shares pursuant to that agreement.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/90-284, s. 1;
  • SOR/92-661, s. 1;
  • SOR/94-686, s. 79(F);
  • 2013, c. 34, s. 397.

 In applying at any time paragraph 132(6)(c) of the Act, the following are prescribed conditions in respect of a trust:

  • (a) either

    • (i) the following conditions are met:

      • (A) there has been at or before that time a lawful distribution in a province to the public of units of the trust and a prospectus, registration statement or similar document was not, under the laws of the province, required to be filed in respect of the distribution, and

      • (B) the trust

        • (I) was created after 1999 and on or before that time, or

        • (II) satisfies, at that time, the conditions prescribed in section 4801.001, or

    • (ii) a class of the units of the trust is, at that time, qualified for distribution to the public; and

  • (b) in respect of a class of the trust’s units that meets at that time the conditions described in paragraph (a), there are at that time no fewer than 150 beneficiaries of the trust, each of whom holds

    • (i) not less than one block of units of the class, and

    • (ii) units of the class having an aggregate fair market value of not less than $500.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/2001-216, s. 4;
  • 2013, c. 34, s. 398.
 
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