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

Regulations are current to 2016-08-01 and last amended on 2016-06-22. Previous Versions

 For the purpose of applying at any particular time subclause 4801(a)(i)(B)(II), the following are the prescribed conditions:

  • (a) the trust was created before 2000;

  • (b) the trust was a unit trust on July 18, 2005;

  • (c) the particular time is after 2003; and

  • (d) the trusts elects by notifying the Minister, in writing before the trust’s filing-due date for its 2012 taxation year, that this section applies to it.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2013, c. 34, s. 399.

 For the purpose of subsection 132.11(1) of the Act, a trust that is a money market fund as defined in National Instrument 81-102 Mutual Funds, as amended from time to time, of the Canadian Securities Administrators is a prescribed trust.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2001-216, s. 5.

 For the purposes of the definition eligible business entity in subsection 204.8(1), clause 204.82(2.2)(d)(i)(B) and paragraph 204.82(6)(a) of the Act, a corporation registered under Part III.1 of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992, is a prescribed corporation.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2001-216, s. 5.

 For the purpose of paragraph (c) of the definition exempt trust in subsection 233.2(1) of the Act, the following conditions are hereby prescribed in respect of a trust:

  • (a) at least 150 beneficiaries of the trust are beneficiaries in respect of the same class of units of the trust; and

  • (b) at least 150 of the beneficiaries in respect of that class each hold

    • (i) at least one block of units of that class, and

    • (ii) units of that class having a total fair market value of at least $500.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/98-453, s. 1.
  •  (1) For the purposes of clause 149(1)(o.2)(iv)(D) of the Act, the following are prescribed persons:

    • (a) a trust all the beneficiaries of which are trusts described in clause 149(1)(o.2)(iv)(B) of the Act;

    • (b) a corporation incorporated before November 17, 1978 solely in connection with, or for the administration of, a registered pension plan;

    • (c) a trust or corporation established by or arising by virtue of an act of a province the principal activities of which are to administer, manage or invest the monies of a pension fund or plan that is established pursuant to an act of the province or an order or regulation made thereunder;

    • (c.1) the Canada Pension Plan Investment Board;

    • (c.2) the Public Sector Pension Investment Board;

    • (c.3) a pooled registered pension plan;

    • (d) a trust or corporation established by or arising by virtue of an act of a province in connection with a scheme or program for the compensation of workers injured in an accident arising out of or in the course of their employment;

    • (e) Her Majesty in right of a province;

    • (f) a trust all of the beneficiaries of which are any combination of

      • (i) registered pension plans,

      • (ii) trusts described in clause 149(1)(o.2)(iv)(B) or (C) of the Act, and

      • (iii) persons described in this subsection; and

    • (g) a corporation all of the shares of the capital stock of which are owned by one or more of the following:

      • (i) registered pension plans,

      • (ii) trusts described in clause 149(1)(o.2)(iv)(B) or (C) of the Act, and

      • (iii) persons described in this subsection.

  • (1.1) For the purposes of subparagraph 127.55(f)(iii) and paragraph 149(1)(o.4) of the Act, a trust is prescribed at any particular time if, at all times after its creation and before the particular time,

    • (a) it was resident in Canada;

    • (b) its only undertaking was the investing of its funds;

    • (c) it never borrowed money except where the borrowing was for a term not exceeding 90 days and it is established that the borrowing was not part of a series of loans or other transactions and repayments;

    • (d) it never accepted deposits; and

    • (e) each of the beneficiaries of the trust was a trust governed by a deferred profit sharing plan, a pooled registered pension plan or a registered pension plan.

  • (2) For the purposes of paragraph 149(1)(t) of the Act, the following are prescribed insurers:

    • (a) Union Québécoise, compagnie d’assurances générales inc.;

    • (b) Les Clairvoyants Compagnie d’Assurance Générale Inc.; and

    • (c) Laurentian Farm Insurance Company Inc.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/85-696, s. 14;
  • SOR/87-559, s. 1;
  • SOR/92-51, s. 8;
  • SOR/92-661, s. 2;
  • SOR/94-353, s. 1;
  • SOR/94-686, s. 79(F);
  • SOR/96-226, s. 1;
  • SOR/2003-328, s. 2;
  • SOR/2005-264, s. 5;
  • SOR/2011-188, s. 18;
  • 2012, c. 31, s. 67.
  •  (1) In this Part,

    block of shares

    block of shares means, with respect to any class of the capital stock of a corporation,

    • (a) 100 shares, if the fair market value of one share of the class is less than $25,

    • (b) 25 shares, if the fair market value of one share of the class is $25 or more but less than $100, and

    • (c) 10 shares, if the fair market value of one share of the class is $100 or more; (tranche d’actions)

    block of units

    block of units means, with respect to any class of units of a trust,

    • (a) 100 units, if the fair market value of one unit of the class is less than $25,

    • (b) 25 units, if the fair market value of one unit of the class is $25 or more but less than $100, and

    • (c) 10 units, if the fair market value of one unit of the class is $100 or more; (tranche d’unités)

    equity share

    equity share has the meaning assigned by section 204 of the Act; (action à revenu variable)

    insider of a corporation

    insider of a corporation has the meaning that would be assigned by section 100 of the Canada Corporations Act, as it read on June 22, 2009, if the references in that section to “insider of a company”, “public company” and “equity shares” were read as references to “insider of a corporation”, “corporation” and “shares” respectively, and includes a person who is an employee of the corporation, or of a person who does not deal at arm’s length with the corporation, and whose right to sell or transfer any share of the capital stock of the corporation, or to exercise the voting rights, if any, attaching to the share, is restricted by

    • (a) the terms and conditions attaching to the share, or

    • (b) any obligation of the person, under a contract, in equity or otherwise, to the corporation or to any person with whom the corporation does not deal at arm’s length. (dirigeant d’une société)

  • (2) For the purposes of this Part, a class of shares of the capital stock of a corporation or a class of units of a trust is qualified for distribution to the public only if

    • (a) a prospectus, registration statement or similar document has been filed with, and, where required by law, accepted for filing by, a public authority in Canada pursuant to and in accordance with the law of Canada or of any province and there has been a lawful distribution to the public of shares or units of that class in accordance with that document;

    • (b) the class is a class of shares, any of which were issued by the corporation at any time after 1971 while it was a public corporation in exchange for shares of any other class of the capital stock of the corporation that was, immediately before the exchange, qualified for distribution to the public;

    • (c) in the case of any class of shares, any of which were issued and outstanding on January 1, 1972, the class complied on that date with the conditions described in paragraphs 4800(1)(b) and (c); or

    • (d) in the case of any class of units, any of which were issued and outstanding on January 1, 1972, the class complied on that date with the condition described in paragraph 4801(b).

  • (3) For the purposes of paragraphs 4800(1)(b), 4800(2)(b) and 4801(b), where a group of persons holds

    • (a) not less than one block of shares of any class of shares of the capital stock of a corporation or one block of units of any class of a trust, as the case may be, and

    • (b) shares or units, as the case may be, of that class having an aggregate fair market value of not less than $500,

    that group shall, subject to subsection (4), be deemed to be one person for the purposes of determining the number of persons who hold shares or units, as the case may be, of that class.

  • (4) In determining under subsection (3) the persons who belong to a group for the purposes of determining the number of persons who hold shares or units, as the case may be, of a particular class, the following rules apply:

    • (a) no person shall be included in more than one group;

    • (b) no person shall be included in a group if he holds

      • (i) not less than one block of shares or one block of units, as the case may be, of that class, and

      • (ii) shares or units, as the case may be, of that class having an aggregate fair market value of not less than $500; and

    • (c) the membership of each group shall be determined in the manner that results in the greatest possible number of groups.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/81-470, s. 2;
  • SOR/84-146, s. 1;
  • SOR/85-696, s. 14;
  • SOR/94-686, ss. 25(F), 79(F);
  • SOR/2011-188, s. 19;
  • 2013, c. 34, s. 400(F).
 
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