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

Regulations are current to 2016-06-21 and last amended on 2016-02-26. Previous Versions

 For the purposes of subparagraph 8000(a)(ii), where a loan or lending asset of a person (in this section referred to as the “holder”) related to a taxpayer

  • (a) was reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country,

  • (b) was acquired by the holder or another person related to the taxpayer after August 16, 1990 as part of a series of transactions or events in which the taxpayer or a person related to the taxpayer disposed of a loan or lending asset that

    • (i) for the taxation year immediately preceding the particular year in which it was disposed of, was a loan or lending asset that was reported by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country, and

    • (ii) was a loan or lending asset a loss arising on the disposition of which would be a loss in respect of which a deduction is permitted under Part I of the Act to the taxpayer or a person related to the taxpayer, and

  • (c) had an amortized cost to the holder, immediately after the time it was acquired by the holder, that was less than 55 per cent of its principal amount,

the following rules apply:

  • (d) the loan or lending asset shall be deemed

    • (i) to be a loan or lending asset of the taxpayer at the end of the year,

    • (ii) to be a loan or lending asset of the taxpayer that was acquired by the taxpayer at the time it was acquired by the holder, and

    • (iii) to have an amortized cost to the taxpayer, at any time, that is equal to its amortized cost to the holder at that time, and

  • (e) any amount in respect of the loan or lending asset deducted under paragraph 20(1)(p) of the Act or included under paragraph 12(1)(i) of the Act in computing the holder’s income for a particular year shall be deemed to have been so deducted or included, as the case may be, in computing the income of the taxpayer for the year in which the particular year ends.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/91-78, s. 4.

 For the purposes of this Part,

designated country

designated country has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (pays désigné)

exposure to a designated country

exposure to a designated country has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (risque que représente un pays désigné)

general provisions

general provisions has the same meaning as the expression general country risk provisions in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (provisions générales)

provisionable assets

provisionable assets has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (actifs ouvrant droit à provision)

relevant authority

relevant authority means the Superintendent of Financial Institutions; (autorité compétente)

specific provisions

specific provisions has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time. (provisions spécifiques)

specified loan

specified loan means

  • (a) a United Mexican States Collateralized Par Bond due in 2019, or

  • (b) a United Mexican States Collateralized Discount Bond due in 2019; (prêt désigné)

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/92-681, s. 3;
  • SOR/99-91, s. 6.

 [Repealed, SOR/99-91, s. 7]

PART LXXXI[Repealed, 2013, c. 34, s. 406]

 [Repealed, 2013, c. 34, s. 406]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/91-78, s. 4;
  • SOR/94-686, ss. 78(F), 79(F), 81(F);
  • SOR/96-443, s. 3;
  • 2013, c. 34, s. 406.

 [Repealed, 2013, c. 34, s. 406]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/91-78, s. 4;
  • SOR/94-686, s. 78(F);
  • SOR/96-443, s. 3;
  • 2013, c. 34, s. 406.

 [Repealed, 2013, c. 34, s. 406]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/96-443, s. 3;
  • SOR/2009-222, s. 6;
  • 2013, c. 34, s. 406.

 [Repealed, 2013, c. 34, s. 406]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/96-443, s. 3;
  • SOR/2009-222, s. 6;
  • 2013, c. 34, s. 406.

 [Repealed, 2013, c. 34, s. 406]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/96-443, s. 3;
  • SOR/2009-222, s. 6;
  • 2013, c. 34, s. 406.

 [Repealed, 2013, c. 34, s. 406]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/96-443, s. 3;
  • SOR/2009-222, s. 6;
  • 2013, c. 34, s. 406.

PART LXXXIIPrescribed Properties and Permanent Establishments

Prescribed Properties

[SOR/94-140, s. 14]

 For the purposes of subsection 16.1(1) of the Act, prescribed property means

  • (a) exempt property, within the meaning assigned by paragraph 1100(1.13)(a), other than property leased on or before February 2, 1990 that is

    • (i) a truck or tractor that is designed for use on highways and has a “gross vehicle weight rating” (within the meaning assigned that expression by the Motor Vehicle Safety Regulations) of 11,778 kilograms or more,

    • (ii) a trailer that is designed for use on highways and is of a type designed to be hauled under normal operating conditions by a truck or tractor described in subparagraph (i), or

    • (iii) a railway car,

  • (b) property that is the subject of a lease where the tangible property, other than exempt property (within the meaning assigned by paragraph 1100(1.13)(a)), that was the subject of the lease had, at the time the lease was entered into, an aggregate fair market value not in excess of $25,000, and

  • (c) intangible property.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/91-196, s. 5;
  • SOR/92-681, s. 3(F).

 For the purposes of subsection 13(18.1), the definition Canadian renewable and conservation expense in subsection 66.1(6) and subparagraph 241(4)(d)(vi.1) of the Act, prescribed energy conservation property means property described in Class 43.1 or 43.2 in Schedule II.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/97-377, s. 5;
  • SOR/2006-117, s. 7;
  • 2013, c. 40, s. 114.

Permanent Establishments

 For the purposes of subsection 16.1(1), the definition outstanding debts to specified non-residents in subsection 18(5), subsections 100(1.3) and 112(2), the definition qualified Canadian transit organization in subsection 118.02(1), subsections 125.4(1) and 125.5(1), the definition taxable supplier in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), the definition Canadian banking business in subsection 248(1) and paragraph 260(5)(a) of the Act, a permanent establishment of a person or partnership (either of whom is referred to in this section as the “person”) means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person’s business is conducted, and

  • (a) where the person carries on business through an employee or agent, established in a particular place, who has general authority to contract for the person or who has a stock of merchandise owned by the person from which the employee or agent regularly fills orders, the person shall be deemed to have a permanent establishment at that place,

  • (b) where the person is an insurance corporation, the person is deemed to have a permanent establishment in each country in which the person is registered or licensed to do business,

  • (c) where the person uses substantial machinery or equipment at a particular place at any time in a taxation year, the person shall be deemed to have a permanent establishment at that place,

  • (d) the fact that the person has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise shall not of itself be held to mean that the person has a permanent establishment, and

  • (e) where the person is a corporation, the fact that the person has a subsidiary controlled corporation at a place or a subsidiary controlled corporation engaged in trade or business at a place shall not of itself be held to mean that the person is operating a permanent establishment at that place,

except that, where the person is resident in a country with which the Government of Canada has concluded a tax treaty in which the expression “permanent establishment” is given a particular meaning, that meaning shall apply.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/94-140, s. 15;
  • SOR/94-686, s. 41(F);
  • SOR/2000-62, s. 4;
  • SOR/2005-264, s. 15;
  • SOR/2010-93, s. 25;
  • 2012, c. 31, s. 68;
  • 2013, c. 34, ss. 49, 427.
 
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