Basic Search

123 (1) In section 121, this Part and Schedules V to X,

assessment

assessment  means an assessment under this Part and includes a reassessment under this Part; (cotisation)

basic tax content

basic tax content , at a particular time, of property of a person means

• (a) except where paragraph (b) applies, the amount determined by the formula

  (A - B) × C

  where

  A 

  is the total of

  • [...]

  • (ii) the tax that was payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was last acquired or imported by the person,

  • [...]

  • (v) all amounts determined by the formula

    D × E × F/G

    where

    D 

    is an amount of tax (other than tax that the person was exempt from paying under any other Act or law) under subsection 165(1) or section 212 or 218 referred to in any of subparagraphs (i) to (iii) of the description of A that became payable, or would have become payable in the circumstances described in that subparagraph, by the person while the person was a selected listed financial institution,

    G 

    is

    • (A) 7%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends before July 1, 2006,

    • (B) 6%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and

  B 

  is the total of

  • [...]

  • (ii) all tax (other than tax referred to in subparagraph (i)) under subsection 165(2) and section 212.1 referred to in any of subparagraphs (i) to (iv) of the description of A that became payable by the person, or would have become payable by the person in the circumstances described in that subparagraph, while the person was a selected listed financial institution,

  • (iii) all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (i) and (ii) of the description of A that the person was entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law or would have been entitled to so recover if the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and

  • (iv) all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (iii) and (iv) of the description of A that the person would have been entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law if that tax had been payable and the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and

  C 

  is the lesser of 1 and the fraction

  H/I

  where

  I 

  is the total of

  • [...]

  • (ii) where the person acquired or imported improvements to the property after the property was last so acquired or imported, the total of all amounts each of which is the value of the consideration for a supply to the person of such an improvement or, where such an improvement is property that was imported or brought into a participating province by the person, the value of the property determined under section 215 or subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require, and

• (b) if the person brought the property into a participating province from another province for consumption, use or supply in the participating province in circumstances in which the person was required to pay tax in respect of the property under section 220.05, or would have been required to pay that tax but for the fact that the property was brought into that province for consumption, use or supply exclusively in commercial activities or the person was exempt from paying that tax under any other Act or law, the amount determined by the formula

  (J - K) × L

  where

  J 

  is the total of

  • [...]

  • (ii) the tax that became payable by the person in respect of the property under section 220.05 when the property was brought into the participating province,

  • [...]

  • (vi) all amounts determined by the formula

    M × N × O/P

    where

    M 

    is an amount of tax (other than tax that the person was exempt from paying under any other Act or law) under subsection 165(1) or section 212 or 218 referred to in subparagraph (iii) or (iv) of the description of J that became payable, or would have become payable in the circumstances described in that subparagraph, by the person after the property was brought into the participating province and while the person was a selected listed financial institution,

    P 

    is

    • (A) 7%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends before July 1, 2006,

    • (B) 6%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and

  K 

  is the total of

  • (i) all tax referred to in subparagraphs (ii) to (v) of the description of J that the person was exempt from paying under any other Act or law,

  • (ii) all tax (other than tax referred to in subparagraph (i)) under subsection 165(2) and section 212.1 referred to in any of subparagraphs (ii) to (v) of the description of J that became payable by the person, or would have become payable by the person in the circumstances described in that subparagraph, while the person was a selected listed financial institution,

  • (iii) all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (ii) and (iii) of the description of J that the person was entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law or would have been entitled to so recover if the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and

  • (iv) all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (iv) and (v) of the description of J that the person would have been entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law if that tax had been payable and the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and

  L 

  is lesser of 1 and the fraction

  Q/R

  where

  R 

  is the total of

  • (i) the value of the property determined under subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require, at the time the property was brought into the participating province, and

  • (ii) where the person acquired or imported improvements to the property after the property was brought into the participating province, the total of all amounts each of which is the value of the consideration for a supply to the person of such an improvement or, where such an improvement is property that was imported or brought into a participating province by the person, the value of the improvement determined under section 215 or subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require; (teneur en taxe)

builder

builder  of a residential complex or of an addition to a multiple unit residential complex means a person who

• (a) at a time when the person has an interest in the real property on which the complex is situated, carries on or engages another person to carry on for the person

  • [...]

  • (ii) [Repealed, 2014, c. 39, s. 92]

• (b) acquires an interest in the complex at a time when

  • [...]

  • (ii) in any other case, the complex is under construction or substantial renovation,

• [...]

• (d) acquires an interest in the complex

  • [...]

  • (ii) in any case, before it has been occupied by an individual as a place of residence or lodging,

  [...]

  • (iii) making one or more supplies of the complex or parts thereof or interests therein by way of sale, or

  • (iv) making one or more supplies of the complex or parts thereof by way of lease, licence or similar arrangement to persons other than to individuals who are acquiring the complex or parts otherwise than in the course of a business or an adventure or concern in the nature of trade, or

• (e) in any case, is deemed under subsection 190(1) to be a builder of the complex,

[...]

• (f) an individual described in paragraph (a), (b) or (d) who

  • [...]

  • (ii) engages another person to carry on the construction or substantial renovation for the individual, or

  [...]

capital property

capital property , in respect of a person, means property that is, or would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, other than property described in Class 12, 14, 14.1 or 44 of Schedule II to the Income Tax Regulations; (immobilisation)

carrier

carrier  means a person who supplies a freight transportation service within the meaning assigned by subsection 1(1) of Part VII of Schedule VI; (transporteur)

charity

charity  means a registered charity or registered Canadian amateur athletic association within the meaning assigned to those expressions by subsection 248(1) of the Income Tax Act, but does not include a public institution; (organisme de bienfaisance)

commercial service

commercial service , in respect of tangible personal property, means any service in respect of the property other than

• [...]

• (c) a service that is acquired for consumption, use or supply in the course of, or in connection with, the performance of a mining activity (as defined in subsection 188.2(1)) in Canada; (service commercial)

convention

convention  means a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which is

• [...]

• (c) to transact the business of the convenor or attendees

  • [...]

  • (ii) otherwise than in the course of a trade show; (congrès)

cooperative corporation

cooperative corporation  means a cooperative housing corporation and any other cooperative corporation within the meaning assigned by subsection 136(2) of the Income Tax Act; (coopérative)

courier

courier  has the meaning assigned by subsection 2(1) of the Customs Act; (messager)

designated municipal property

designated municipal property  means property

• [...]

• (c) in respect of which, or in respect of an improvement to which, an amount included in the total tax charged in respect of the property or service under paragraph (a) of the definition non-creditable tax charged in subsection 259(1) is

  • [...]

  • (ii) an amount deemed to have been paid or collected at that time by the person,

direct cost

direct cost  of a supply of tangible personal property or a service means the total of all amounts each of which is the consideration paid or payable by the supplier

• [...]

• (b) for an article or material (other than capital property of the supplier) that was purchased by the supplier, to the extent that the article or material is to be incorporated into or is to form a constituent or component part of the property, or is to be consumed or expended directly in the process of manufacturing, producing, processing or packaging the property

[...]

• (c) tax under this Part payable by the supplier in respect of the acquisition or importation of the property or service by the supplier,

• (d) if the property was brought into a participating province from another province, any tax under this Part payable by the supplier in respect of the bringing in of the property into the participating province, and

• (e) any tax, duty or fee payable in respect of the acquisition or importation of the property or service by the supplier and prescribed for the purposes of section 154, excluding the portion of the tax (other than tax that became payable under the first paragraph of section 16 of An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, by the supplier at a time when the supplier was a registrant as defined in section 1 of that Act), duty or fee that is recovered or recoverable by the supplier; (coût direct)

emission allowance

emission allowance  means

• (a) an allowance, credit or similar instrument (other than a prescribed allowance, credit or instrument) that

  • [...]

  • (ii) can be used to satisfy a requirement under

    [...]

financial service

financial service  means

• [...]

• (j) the service of investigating and recommending the compensation in satisfaction of a claim where

  • [...]

  • (ii) the claim is made under an insurance policy that is not in the nature of accident and sickness or life insurance and

    [...]

• [...]

• (k) any supply deemed by subsection 150(1) or section 158 to be a supply of a financial service,

• (l) the agreeing to provide, or the arranging for, a service that is

  • [...]

  • (ii) not referred to in any of paragraphs (n) to (t), or

[...]

• [...]

• (q) the provision, to an investment plan (as defined in subsection 149(5)) or any corporation, partnership or trust whose principal activity is the investing of funds, of

  • [...]

  • (ii) any other service (other than a prescribed service),

  [...]

• [...]

• (r.2) a debt collection service, rendered under an agreement between a person agreeing to provide, or arranging for, the service and a particular person other than the debtor, in respect of all or part of a debt, including a service of attempting to collect, arranging for the collection of, negotiating the payment of, or realizing or attempting to realize on any security given for, the debt, but does not include a service that consists solely of accepting from a person (other than the particular person) a payment of all or part of an account unless

  • (i) under the terms of the agreement the person rendering the service may attempt to collect all or part of the account or may realize or attempt to realize on any security given for the account, or

  • (ii) the principal business of the person rendering the service is the collection of debt,

• (r.3) a service (other than a prescribed service) of managing credit that is in respect of credit cards, charge cards, credit accounts, charge accounts, loan accounts or accounts in respect of any advance and is provided to a person granting, or potentially granting, credit in respect of those cards or accounts, including a service provided to the person of

  • [...]

  • (ii) making decisions on behalf of the person in relation to a grant, or an application for a grant, of credit,

• (r.4) a service (other than a prescribed service) that is preparatory to the provision or the potential provision of a service referred to in any of paragraphs (a) to (i) and (l), or that is provided in conjunction with a service referred to in any of those paragraphs, and that is

  • [...]

  • (ii) a market research, product design, document preparation, document processing, customer assistance, promotional or advertising service or a similar service,

• [...]

• (r.6) a service (other than a prescribed service) that is supplied by a payment card network operator in respect of a payment card network (as those terms are defined in section 3 of the Payment Card Networks Act) where the supply includes the provision of

  • [...]

  • (ii) a clearing or settlement service in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument, or

  • (iii) a service rendered in conjunction with a service referred to in subparagraph (i) or (ii),

• (s) any service the supply of which is deemed under this Part to be a taxable supply, or

harmonization date

harmonization date  for a participating province means

• (a) April 1, 1997 in the case of Nova Scotia, New Brunswick, Newfoundland and Labrador, the Nova Scotia offshore area or the Newfoundland offshore area,

• (b) July 1, 2010 in the case of Ontario, and

hospital authority

hospital authority  means an organization that operates a public hospital and that is designated by the Minister as a hospital authority for the purposes of this Part; (administration hospitalière)

insurance policy

insurance policy  means

• (a) a policy or contract of insurance (other than a warranty in respect of the quality, fitness or performance of tangible property, where the warranty is supplied to a person who acquires the property otherwise than for resale) that is issued by an insurer, including

  • [...]

  • (ii) an annuity contract issued by an insurer, or a contract issued by an insurer that would be an annuity contract except that the payments under the contract

    [...]

  • (iii) a contract issued by an insurer all or part of the insurer’s reserves for which vary in amount depending on the value of a specified group of assets,

investment limited partnership

investment limited partnership  means a limited partnership, the primary purpose of which is to invest funds in property consisting primarily of financial instruments, if

• (a) the limited partnership is, or forms part of an arrangement or structure that is, represented or promoted as a hedge fund, investment limited partnership, mutual fund, private equity fund, venture capital fund or other similar collective investment vehicle, or

listed financial institution

listed financial institution  means a person referred to in paragraph 149(1)(a); (institution financière désignée)

master pension entity

master pension entity  of a pension plan means a person that is not a pension entity of the pension plan and that is

• (a) a corporation described in paragraph 149(1)(o.2) of the Income Tax Act, one or more shares of which are owned by a pension entity of the pension plan, or

• (b) a trust prescribed to be a master trust for the purposes of paragraph 149(1)(o.4) of the Income Tax Act, one or more units of which are owned by a pension entity of the pension plan; (entité de gestion principale)

municipality

municipality  means

• [...]

• (b) such other local authority as the Minister may determine to be a municipality for the purposes of this Part; (municipalité)

new harmonized value-added tax system

new harmonized value-added tax system  has the same meaning as in subsection 277.1(1); (nouveau régime de la taxe à valeur ajoutée harmonisée)

non-profit organization

non-profit organization  means a person (other than an individual, an estate, a trust, a charity, a public institution, a municipality or a government) that was organized and is operated solely for a purpose other than profit, no part of the income of which is payable to, or otherwise available for the personal benefit of, any proprietor, member or shareholder thereof unless the proprietor, member or shareholder is a club, a society or an association the primary purpose and function of which is the promotion of amateur athletics in Canada; (organisme à but non lucratif)

office

office  has the meaning assigned by subsection 248(1) of the Income Tax Act, but does not include

• [...]

• (b) the position of receiver (including the position of a receiver within the meaning assigned by subsection 266(1)), or

offshore activity

offshore activity  means

• (a) when used in connection with an activity carried on in the Nova Scotia offshore area, an activity in respect of which tax would be imposed under section 212 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act if this Part were included in the definition Consumption Tax Acts in section 211 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act; and

• (b) when used in connection with an activity carried on in the Newfoundland offshore area, an activity in respect of which tax would be imposed under section 207 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act if this Part were included in the definition Consumption Tax Acts in section 206 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act; (activité extracôtière)

participating employer

participating employer  of a pension plan means

• (a) in the case of a registered pension plan, an employer that has made, or is required to make, contributions to the pension plan in respect of the employer’s employees or former employees, or payments under the pension plan to the employer’s employees or former employees, and includes an employer prescribed for the purposes of the definition participating employer in subsection 147.1(1) of the Income Tax Act, and

• (b) in the case of a pooled registered pension plan, an employer that

  • [...]

  • (ii) has remitted, or is required to remit, to the PRPP administrator of the pension plan contributions made by members (as defined in subsection 147.5(1) of the Income Tax Act) of the pension plan under a contract with the PRPP administrator in respect of all or a class of its employees; (employeur participant)

passenger vehicle

passenger vehicle  means a passenger vehicle or a zero-emission passenger vehicle, as those terms are defined in subsection 248(1) of the Income Tax Act; (voiture de tourisme)

pension plan

pension plan  means a registered pension plan or a pooled registered pension plan

• [...]

• (b) in respect of which a corporation

  • (i) is incorporated and operated either

    • [...]

    • (B) for the administration of the plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement (as defined in subsection 248(1) of the Income Tax Act), where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the plan,

  • (ii) in the case of a registered pension plan, is accepted by the Minister, under subparagraph 149(1)(o.1)(ii) of the Income Tax Act, as a funding medium for the purpose of the registration of the plan under that Act, and

  • (iii) in the case of a pooled registered pension plan, is a corporation

    • (A) that is described in paragraph 149(1)(o.2) of the Income Tax Act, and

permanent establishment

permanent establishment , in respect of a particular person, means

• (a) a fixed place of business of the particular person, including

  • [...]

  • (ii) a mine, an oil or gas well, a quarry, timberland or any other place of extraction of natural resources,

  [...]

personal trust

personal trust  means

• [...]

• (b) an inter vivos trust that is a personal trust (within the meaning assigned by subsection 248(1) of the Income Tax Act) all the beneficiaries (other than contingent beneficiaries) of which are individuals and all the contingent beneficiaries of which, if any, are individuals, charities or public institutions; (fiducie personnelle)

place of amusement

place of amusement  means any premises or place, whether or not enclosed, at or in any part of which is staged or held any

[...]

PRPP administrator

PRPP administrator  of a pooled registered pension plan has the meaning assigned by the definition administrator  in subsection 147.5(1) of the Income Tax Act; (administrateur de RPAC)

public institution

public institution  means a registered charity (within the meaning assigned by subsection 248(1) of the Income Tax Act) that is a school authority, a public college, a university, a hospital authority or a local authority determined under paragraph (b) of the definition municipality to be a municipality; (institution publique)

recipient

recipient  of a supply of property or a service means

• [...]

• (c) where no consideration is payable for the supply,

  • [...]

  • (ii) in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, and

[...]

related convention supplies

related convention supplies  means property or services acquired, imported or brought into a participating province by a person exclusively for consumption, use or supply by the person in connection with a convention, but does not include

• [...]

• (c) except for the purposes of subsection 167.2(1) and section 252.4, property or services that are food or beverages or are supplied to the person under a contract for catering, or

residential complex

residential complex  means

• (a) that part of a building in which one or more residential units are located, together with

  • (i) that part of any common areas and other appurtenances to the building and the land immediately contiguous to the building that is reasonably necessary for the use and enjoyment of the building as a place of residence for individuals, and

  • (ii) that proportion of the land subjacent to the building that that part of the building is of the whole building,

• (b) that part of a building that is

  • (i) the whole or part of a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property owned, or intended to be owned, apart from any other unit in the building, and

  • (ii) a residential unit,

  [...]

• (c) the whole of a building described in paragraph (a), or the whole of a premises described in subparagraph (b)(i), that is owned by or has been supplied by way of sale to an individual and that is used primarily as a place of residence of the individual, an individual related to the individual or a former spouse or common-law partner of the individual, together with

  • (i) in the case of a building described in paragraph (a), any appurtenances to the building, the land subjacent to the building and that part of the land immediately contiguous to the building, that are reasonably necessary for the use and enjoyment of the building, and

  • (ii) in the case of a premises described in subparagraph (b)(i), that part of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the unit and that is reasonably necessary for the use and enjoyment of the unit,

but does not include a building, or that part of a building, that is a hotel, a motel, an inn, a boarding house, a lodging house or other similar premises, or the land and appurtenances attributable to the building or part, where the building is not described in paragraph (c) and all or substantially all of the leases, licences or similar arrangements, under which residential units in the building or part are supplied, provide, or are expected to provide, for periods of continuous possession or use of less than sixty days; (immeuble d’habitation)

residential trailer park

residential trailer park  of a person means the land that is included in a trailer park of the person or, where the person has two or more trailer parks that are immediately contiguous to each other, the land that is included in those contiguous trailer parks, and any buildings, fixtures and other appurtenances to the land that are reasonably necessary for

[...]

but does not include such land and appurtenances or any part of them unless the land encompasses at least two sites and all or substantially all of the sites in the trailer parks

• (c) are supplied, or are intended to be supplied, under a lease, licence or similar arrangement under which continuous possession or use of a site is provided for a period of at least

  • [...]

  • (ii) twelve months, in the case of a travel trailer, motor home or similar vehicle or trailer that is not a residential unit, and

residential unit

residential unit  means

[...]

or that part thereof that

[...]

sales tax harmonization agreement

sales tax harmonization agreement  has the same meaning as in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act; (accord d’harmonisation de la taxe de vente)

secured creditor

secured creditor  means

• [...]

• (b) a person who acts for or on behalf of the particular person with respect to the security interest and includes

  • [...]

  • (ii) a receiver or receiver-manager appointed by the particular person or appointed by a court on the application of the particular person,

segregated fund

segregated fund  of an insurer means a specified group of properties that is held in respect of insurance policies all or part of the reserves for which vary in amount depending on the fair market value of the properties; (fonds réservé)

selected listed financial institution

selected listed financial institution  means, at any time, a listed financial institution who is at that time a selected listed financial institution under subsection 225.2(1); (institution financière désignée particulière)

self-contained domestic establishment

self-contained domestic establishment  has the meaning assigned by subsection 248(1) of the Income Tax Act; (établissement domestique autonome)

short-term accommodation

short-term accommodation  means a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month and, for the purposes of section 252.4,

• (a) includes any type of overnight shelter (other than shelter on a train, trailer, boat or structure that has means of, or is capable of being readily adapted for, self-propulsion) when supplied as part of a tour package (within the meaning assigned by subsection 163(3)) that also includes food and the services of a guide, and

• (b) does not include a complex or unit when it

  • [...]

  • (ii) is included in that part of a tour package that is not the taxable portion of the tour package (within the meaning assigned to those expressions by subsection 163(3)); (logement provisoire)

specified Crown agent

specified Crown agent  means

• [...]

• (b) an agent of Her Majesty in right of a province

  • [...]

  • (ii) that is prescribed; (mandataire de la Couronne désigné)

substantial renovation

substantial renovation  of a residential complex means the renovation or alteration of the whole or that part of a building, as described in whichever of paragraphs (a) to (e) of the definition residential complex is applicable to the residential complex, in which one or more residential units are located to such an extent that all or substantially all of the building or part, as the case may be, other than the foundation, external walls, interior supporting walls, floors, roof, staircases and, in the case of that part of a building described in paragraph (b) of that definition, the common areas and other appurtenances, that existed immediately before the renovation or alteration was begun has been removed or replaced if, after completion of the renovation or alteration, the building or part, as the case may be, is, or forms part of, a residential complex; (rénovations majeures)

tax

tax  means tax payable under this Part; (taxe)

taxation year

taxation year  of a person means

• (a) where the person is a taxpayer, within the meaning of that term in the Income Tax Act (other than an unincorporated person exempt because of subsection 149(1) of that Act from tax under Part I of that Act on all or part of the person’s taxable income), the taxation year of the person for the purposes of that Act,

• (b) where the person is a partnership described in subparagraph 249.1(1)(b)(ii) of that Act, the fiscal period of the person’s business determined under subsection 249.1(1) of that Act, and

• (c) in any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation other than a professional corporation (within the meaning assigned by subsection 248(1) of that Act); (année d’imposition)

taxi business

taxi business  means

• [...]

• (b) a business carried on in Canada by a person of transporting passengers for fares by motor vehicle — being a vehicle that would be an automobile, as defined in subsection 248(1) of the Income Tax Act, if that definition were read without reference to “a motor vehicle acquired primarily for use as a taxi,” in its paragraph (c) and without reference to its paragraph (e) — within a particular municipality and its environs if the transportation is arranged or coordinated through an electronic platform or system, other than

  • (i) the part of the business that does not involve the making of taxable supplies by the person,

  • (ii) the part of the business that is the operation of a sightseeing service or the school transportation of elementary or secondary students, or

telecommunications facility

telecommunications facility  means any facility, apparatus or other thing (including any wire, cable, radio, optical or other electromagnetic system, or any similar technical system, or any part thereof) that is used or is capable of being used for telecommunications; (installation de télécommunication)

testamentary trust

testamentary trust  has the meaning assigned by subsection 248(1) of the Income Tax Act; (fiducie testamentaire)

trailer park

trailer park  of a person means a piece of land that is owned by or leased to the person and that is exclusively composed of

• [...]

• (b) other land that is reasonably necessary for

  • [...]

  • (ii) the purpose of engaging in the business of supplying the sites by way of lease, licence or similar arrangement; (parc à roulottes)

virtual payment instrument

virtual payment instrument  means property that is a digital representation of value, that functions as a medium of exchange and that only exists at a digital address of a publicly distributed ledger, other than property that

• [...]

• (b) is primarily for use within, or as part of, a gaming platform, an affinity or rewards program or a similar platform or program, or

Marginal note:Meaning of Canada

(2) Subject to subsection (3), in this Part, Canada includes

[...]

[...]

Marginal note:Application of provisions to schedules

(4) Any provision of this Part that applies for the purposes of this Part also applies for the purposes of Schedules V to X.

125.7 (1) The following definitions apply in this section and in subsections 163(2.901) and (2.902).

baseline remuneration

baseline remuneration , in respect of an eligible employee of an eligible entity, means the average weekly eligible remuneration, excluding any period of seven or more consecutive days for which the employee was not remunerated, paid to the eligible employee by the eligible entity during the period that

• (a) begins on January 1, 2020 and ends on March 15, 2020; or

• (b) if the eligible entity elects,

  • (i) begins on March 1, 2019 and ends on May 31, 2019, in respect of any of the first qualifying period to the third qualifying period,

  • (ii) begins on March 1, 2019 and ends on June 30, 2019, in respect of the fourth qualifying period, unless the eligible entity elects to use the period that begins on March 1, 2019 and ends on May 31, 2019 for that qualifying period,

  • (iii) begins on July 1, 2019 and ends on December 31, 2019, in respect of any of the fifth qualifying period to the thirteenth qualifying period,

  • (iii.1) begins on March 1, 2019 and ends on June 30, 2019, in respect of any of the fourteenth qualifying period to the seventeenth qualifying period, unless the eligible entity elects to use the period that begins on July 1, 2019 and ends on December 31, 2019 for that qualifying period,

  • (iii.2) begins on July 1, 2019 and ends on December 31, 2019, in respect of the eighteenth qualifying period and any subsequent qualifying period, or

  • (iv) if the eligible employee was on leave for any reason mentioned in subsection 12(3) of the Employment Insurance Act or section 2 of the Act respecting parental insurance, CQLR, c. A-29.011 throughout the period that begins on July 1, 2019 and ends on March 15, 2020, begins 90 days prior to the date on which the employee commenced that leave and ends on the day prior to the date on which they commenced their leave, in respect of the fifth qualifying period and any subsequent qualifying period. (rémunération de base)

base percentage

base percentage , of an eligible entity for a qualifying period, means

• (a) for the fifth qualifying period,

  • [...]

  • (ii) in any other case, 1.2 multiplied by the revenue reduction percentage;

• (b) for the sixth qualifying period,

  • [...]

  • (ii) in any other case, 1.2 multiplied by the revenue reduction percentage;

• (c) for the seventh qualifying period,

  • [...]

  • (ii) in any other case, 1 multiplied by the revenue reduction percentage;

• (d) for the eighth qualifying period,

  • [...]

  • (ii) in any other case, 0.8 multiplied by the revenue reduction percentage;

• (e) for the ninth qualifying period,

  • [...]

  • (ii) in any other case, 0.8 multiplied by the revenue reduction percentage;

• (f) for the tenth qualifying period,

  • [...]

  • (ii) in any other case, 0.8 multiplied by the revenue reduction percentage;

• (g) for the eleventh qualifying period to the seventeenth qualifying period,

  • [...]

  • (ii) in any other case, the percentage determined by the formula

    [...]

• (h) for the eighteenth qualifying period,

  • [...]

  • (ii) in any other case, the percentage determined by the formula

    [...]

• (i) for the nineteenth qualifying period,

  • [...]

  • (ii) in any other case, the percentage determined by the formula

    [...]

• (j) for the twentieth qualifying period,

  • [...]

  • (ii) in any other case, the percentage determined by the formula

    [...]

• (k) for the twenty-first qualifying period,

  • [...]

  • (ii) in any other case, the percentage determined by the formula

    [...]

• (l) for the twenty-second qualifying period to the twenty-sixth qualifying period,

  • (i) the lesser of 75% and the eligible entity’s revenue reduction percentage for the qualifying period, if, for the qualifying period,

    • [...]

    • (B) either of the following conditions is met:

      • [...]

      • (II) the eligible entity is subject to a qualifying public health restriction,

  • (ii) if subparagraph (i) does not apply to the eligible entity, the eligible entity’s revenue reduction percentage for the qualifying period is greater than or equal to 50% and the prior year revenue decline of the eligible entity is greater than or equal to 50%, the lesser of 50% and the percentage determined by the formula

    [...]

• (m) for the twenty-seventh qualifying period and the twenty-eighth qualifying period,

  • (i) the lesser of 37.5% and one half of the eligible entity’s revenue reduction percentage for the qualifying period, if, for the qualifying period,

    • [...]

    • (B) either of the following conditions is met:

      • [...]

      • (II) the eligible entity is subject to a qualifying public health restriction,

  • (ii) if subparagraph (i) does not apply to the eligible entity, the eligible entity’s revenue reduction percentage is for the qualifying period greater than or equal to 50% and the prior year revenue decline of the eligible entity is greater than or equal to 50%, the lesser of 25% and the percentage determined by the formula

    [...]

eligible entity

eligible entity  means

• (a) a corporation or a trust, other than a corporation or a trust that is exempt from tax under this Part or is a public institution;

• [...]

• (d) a person that is exempt from tax under this Part because of paragraph 149(1)(e), (j), (k) or (l), other than a public institution;

eligible remuneration

eligible remuneration , of an eligible employee of an eligible entity, means amounts described in paragraph 153(1)(a) or (g), other than

• [...]

• (b) amounts deemed to have been received by the eligible employee as a benefit under or because of any of paragraphs 7(1)(a) to (d.1);

• (c) any amount received that can reasonably be expected to be paid or returned, directly or indirectly, in any manner whatever, to

  • [...]

  • (ii) a person or partnership not dealing at arm’s length with the eligible entity, or

• (d) any amount that is paid in respect of a week in the qualifying period, if, as part of an arrangement involving the eligible employee and the eligible entity,

  • [...]

  • (ii) after the qualifying period, the eligible employee is reasonably expected to be paid a lower weekly amount than their baseline remuneration, and

executive compensation repayment amount

executive compensation repayment amount , of an eligible entity, means

• (a) nil, unless

  • [...]

  • (ii) the eligible entity is controlled by a corporation described in subparagraph (i); and

• (b) if the conditions in subparagraph (a)(i) or (ii) are met, the amount determined by the formula

  A × B

  where

  A 

  is

  • (i) a percentage assigned to the eligible entity under an agreement in respect of the seventeenth qualifying period to the twenty-third qualifying period if

    • (A) the agreement is entered into by

      • [...]

      • (II) an eligible entity, shares of the capital stock of which are listed or traded on a stock exchange or other public market, that controls the eligible entity (referred to in this definition as the “public parent corporation”), if the public parent corporation received a deemed overpayment under subsection (2) in respect of any of the seventeenth qualifying period to the twenty-third qualifying period, and

  • (i.1) a percentage assigned to the eligible entity under an agreement in respect of the twenty-fourth qualifying period and any subsequent qualifying period if

    • (A) the agreement is entered into by

      • [...]

      • (II) the public parent corporation, if the public parent corporation received a deemed overpayment under subsection (2) in respect of the twenty-fourth qualifying period or any subsequent qualifying period, and

  • (ii)  in any other case, 100%, and

  B 

  is

  • [...]

  • (ii) for the twenty-fourth qualifying period and any subsequent qualifying period, the lesser of

    [...]

prior reference period

prior reference period , for a qualifying period of an eligible entity, means

• (a) subject to paragraph (b),

  • [...]

  • (ii) for the second qualifying period, April 2019,

• (b) January and February 2020, if

  • (i) on March 1, 2019, the eligible entity was not carrying on business or otherwise carrying on its ordinary activities and the qualifying period is any of the first qualifying period to the fourth qualifying period, or

  • (ii) the qualifying period is any of

    • [...]

    • (C) the fourteenth qualifying period to the seventeenth qualifying period, if

      • (I) on March 1, 2019, the eligible entity was not carrying on business or otherwise carrying on its ordinary activities, and

      • (II) the eligible entity elects for all of those qualifying periods, or

    • (D) the twenty-sixth qualifying period to the twenty-eighth qualifying period, if

      • (I) on March 1, 2019, the eligible entity was not carrying on business or otherwise carrying on its ordinary activities, and

      • (II) the eligible entity elects for all of those qualifying periods; and

prior year revenue decline

prior year revenue decline , of an eligible entity means, the average of all percentages each of which would, if the Act were read without reference to subsection 125.7(9) and section 257, be the revenue reduction percentage of the eligible entity for a qualifying period

• [...]

• (b) throughout which the eligible entity was

  • [...]

  • (ii) not carrying on its ordinary activities because of a public health restriction. (réduction du revenu d’une année antérieure)

public health restriction

public health restriction , in respect of a qualifying property of an eligible entity for a qualifying period, means an order or decision in respect of which the following conditions are met:

• [...]

• (c) it is limited in scope based on one or more factors, such as

  • [...]

  • (ii) type of business or other activity, or

• [...]

• (e) it does not result from a violation by the eligible entity – or a party with which the eligible entity does not deal at arm’s length that rents, directly or indirectly, the qualifying property from the eligible entity (referred to in this definition as the “specified tenant”) – of an order or decision that meets the conditions in paragraphs (a) to (d);

public institution

public institution  means

• (a) an organization described in any of paragraphs 149(1)(a) to (d.6); or

qualifying entity

qualifying entity , for a qualifying period, means an eligible entity that meets the following conditions:

• (a) it files an application with the Minister in respect of the qualifying period in prescribed form and manner on or before the later of

  • [...]

  • (ii) 180 days after the end of the qualifying period;

• [...]

• (c) if the qualifying period is any of the first qualifying period to the fourth qualifying period, its qualifying revenues for the current reference period are equal to or less than the specified percentage, for the qualifying period, of

  • [...]

  • (ii) if paragraph (b) of the definition prior reference period applies, the amount determined by the formula

    [...]

• (d) it meets either of the following conditions:

  • [...]

  • (ii) it is the case that

    • (A) on March 15, 2020,

      • [...]

      • (II) the payroll for its employees was administered by another person or partnership (referred to in this subparagraph as the “payroll service provider”), and

qualifying period

qualifying period  means

• [...]

• (c.2) the period that begins on July 5, 2020 and ends on August 1, 2020 (referred to in this section as the “fifth qualifying period”);

• [...]

• (c.97) the period that begins on August 1, 2021 and ends on August 28, 2021 (referred to in this section as the “nineteenth qualifying period”);

qualifying property

qualifying property , of an eligible entity for a qualifying period, means real or immovable property (other than property that is a self-contained domestic establishment used by the eligible entity or by a person not dealing at arm’s length with the eligible entity, or part of such a self-contained domestic establishment, the land subjacent to the self-contained domestic establishment and such portion of any immediately contiguous land as can reasonably be regarded as contributing to the use and enjoyment of the self-contained domestic establishment as a residence) in Canada used by the eligible entity in the course of its ordinary activities. (bien admissible)

qualifying recovery entity

qualifying recovery entity , for a qualifying period, means an eligible entity that meets the following conditions:

• [...]

• (c) if it is a corporation (other than a corporation that is exempt from tax under this Part), it

  • [...]

  • (ii) would be a Canadian-controlled private corporation absent the application of subsection 136(1);

• (d) if it is a partnership, throughout the qualifying period it is the case that

  A ≤ 0.5B

  where

  A 

  is the total of all amounts, each of which is the fair market value of an interest in the partnership held — directly or indirectly, through one or more partnerships — by

  • [...]

  • (ii) a corporation, other than a corporation that

    • (A) is exempt from tax under this Part, or

    • (B) is described in subparagraph (c)(i) or (ii), and

• (e) it has a revenue reduction percentage

  • [...]

  • (ii) greater than 10% (or a percentage determined by regulation for the qualifying period), if it is any of the eighteenth qualifying period and subsequent qualifying periods. (entité de relance admissible)

qualifying rent expense

qualifying rent expense , in respect of a qualifying property for an eligible entity for a qualifying period, means the amount determined by the formula

A − B

where

A 

is the lesser of $75,000 and the total of all amounts paid — under a written agreement entered into before October 9, 2020, or pursuant to the renewal (on substantially similar terms) or assignment of a written agreement entered into before October 9, 2020 — in respect of the qualifying period by the eligible entity to a party with which the eligible entity deals at arm’s length, each of which is

• (a) rent for the use of, or right to use, the qualifying property,

  • (i) including

    • [...]

    • (C) amounts required to be paid under a net lease by the eligible entity either to the lessor or a third party, as

      • [...]

      • (II) regular instalments of operating expenses, such as insurance, utilities and common area maintenance expenses, customarily charged to the lessee under a net lease,

  • (ii) excluding

    [...]

• (b) in the case of qualifying property owned by the eligible entity that is not used by the eligible entity primarily to earn rental income or, where the qualifying property is used primarily by the eligible entity to earn rental income directly or indirectly from a person or partnership not dealing at arm’s length with the eligible entity, that is not used by that person or partnership primarily to earn rental income,

  • [...]

  • (ii) amounts paid for insurance on the qualifying property, and

B 

is the total of all amounts, each of which is received or receivable by the eligible entity in respect of the qualifying period, either directly or indirectly, from a party with which the entity deals at arm’s length and is described in paragraph (a) of the description of A. (dépenses de loyer admissibles)

qualifying renter

qualifying renter , for a qualifying period, means an eligible entity that meets the following conditions:

• [...]

• (c) it meets any of the following conditions:

  • [...]

  • (ii) it had a business number on September 27, 2020 and provides records and other information satisfactory to the Minister in support of its application, or

qualifying revenue

qualifying revenue , of an eligible entity for a prior reference period or a current reference period, means the inflow of cash, receivables or other consideration arising in the course of the ordinary activities of the eligible entity — generally from the sale of goods, the rendering of services and the use by others of resources of the eligible entity — in Canada in the particular period, subject to the following:

• (a) in the case of an eligible entity described in paragraph (c) of the definition eligible entity,

  • (i) it includes revenue from a related business (as defined in subsection 149.1(1)), gifts and other amounts received in the course of its ordinary activities, and

  • (ii) notwithstanding subparagraph (i), the eligible entity may elect to exclude funding received from government sources in the determination of its qualifying revenue for all of its prior reference periods and current reference periods;

• (b) in the case of an eligible entity described in paragraph (d) of the definition eligible entity,

  • [...]

  • (ii) notwithstanding subparagraph (i), the eligible entity may elect to exclude funding received from government sources in the determination of its qualifying revenue for all of its prior reference periods and current reference periods;

• (b.1) in the case of an eligible entity prescribed in paragraph (f) of the definition eligible entity that would be described in paragraph (c) or (d) of that definition if it were not a public institution, subparagraphs (a)(i) and (ii) apply to an eligible entity that would be described in paragraph (c) of that definition and subparagraphs (b)(i) and (ii) apply to an eligible entity that would be described in paragraph (d) of that definition;

rent subsidy percentage

rent subsidy percentage , of an eligible entity for a qualifying period, means

• (a) if the qualifying period is any of the eighth qualifying period to the seventeenth qualifying period,

  • [...]

  • (ii) if the eligible entity’s revenue reduction percentage is greater than or equal to 50%, but less than 70%, the percentage determined by the formula

    [...]

revenue reduction percentage

revenue reduction percentage , of an eligible entity for a qualifying period, means the result (expressed as a percentage) of the formula

1 − A/B

where

B 

is the eligible entity’s qualifying revenue for the prior reference period for the qualifying period – or, if the prior reference period is January and February 2020, the amount determined by the formula in subparagraph (c)(ii) of the definition qualifying entity – or a period prescribed by regulation in respect of the eligible entity for the qualifying period. (pourcentage de baisse de revenu)

top-up revenue reduction percentage

top-up revenue reduction percentage , of an eligible entity for a qualifying period, means

• (a) for any of the fifth qualifying period to the seventh qualifying period, the result (expressed as a percentage) of the formula

  1 − A ÷ B

  where

  B 

  is the average monthly qualifying revenue of the eligible entity for

  • [...]

  • (ii) in any other case, the last three calendar months that ended prior to the prior reference period for the qualifying period;

• (b) for any of the eighth qualifying period to the tenth qualifying period, the greater of

  • [...]

  • (ii) the revenue reduction percentage of the eligible entity for the qualifying period; and

total base period remuneration

total base period remuneration , of an eligible entity, means the total of all amounts, each of which is for an eligible employee in respect of a week in the fourteenth qualifying period, equal to the least of

• (a) $1,129,

total current period remuneration

total current period remuneration , of an eligible entity for a qualifying period, means the total of all amounts, each of which is for an eligible employee in respect of a week in the qualifying period, equal to the least of

• (a) $1,129,

Marginal note:COVID-19 — wage subsidy

(2) For a qualifying entity for a qualifying period, an overpayment on account of the qualifying entity’s liability under this Part for the taxation year in which the qualifying period ends is deemed to have arisen during the qualifying period in an amount determined by the formula

Marginal note:Exception

(2.01) Despite subsection (2), no overpayment on account of a qualifying entity’s liability under this Part for the taxation year in which the qualifying period ends is deemed to have arisen with respect to a qualifying entity that is a publicly traded company or a subsidiary of such a company if, in the qualifying period, it paid taxable dividends to an individual who is a holder of common shares of the company or of the subsidiary of the company.

Marginal note:COVID-19 — rent subsidy

(2.1) For a qualifying renter for a qualifying period referred to in any of paragraphs (c.5) to (d) of the definition qualifying period in subsection (1), an overpayment on account of the qualifying renter’s liability under this Part for the taxation year in which the qualifying period ends is deemed to have arisen during the qualifying period in an amount determined by the formula

Marginal note:Canada recovery hiring program

(2.2) For a qualifying recovery entity for a qualifying period, an overpayment on account of the qualifying entity’s liability under this Part for the taxation year in which the qualifying period ends is deemed to have arisen during the qualifying period in an amount determined by the formula

[...]

[...]

Marginal note:Computation of revenue

(4) For the purposes of the definition qualifying revenue in subsection (1), the qualifying revenue of an eligible entity is to be determined in accordance with its normal accounting practices, except that

• [...]

• (d) if all or substantially all of an eligible entity’s qualifying revenue — determined without reference to paragraph (d) of the definition qualifying revenue in subsection (1) — for a qualifying period is from one or more particular persons or partnerships with which it does not deal at arm’s length and each particular person or partnership jointly elects with the eligible entity, for the purposes of this section

  • [...]

  • (ii) the eligible entity’s qualifying revenue for the current reference period is deemed to be the total of all amounts, each of which is determined by the formula

    $100(A/B)(C/D)

    where

    A 

    is the eligible entity’s qualifying revenue (determined without reference to paragraph (d) of the definition qualifying revenue in subsection (1)) for the current reference period attributable to a particular person or partnership,

    B 

    is the total of all amounts, each of which is the eligible entity’s qualifying revenue (determined without reference to paragraph (d) of the definition qualifying revenue in subsection (1)) for the current reference period attributable to a particular person or partnership,

    C 

    is the particular person or partnership’s qualifying revenue (determined as if the definition qualifying revenue in subsection (1) were read without reference to “in Canada”) for the current reference period, and

    D 

    is the particular person or partnership’s qualifying revenue (determined as if the definition qualifying revenue in subsection (1) were read without reference to “in Canada”) for the prior reference period; and

• (e) an eligible entity may make an election, which must apply for all qualifying periods, to determine its qualifying revenues based on

  • (i) the cash method, within the meaning assigned by subsection 28(1) with any modifications that the circumstances require, or

  • (ii) the accrual method, in accordance with generally accepted accounting principles.

(4.1) Subsection (4.2) applies to an eligible entity in respect of a qualifying period if

• [...]

• (b) immediately prior to the acquisition, the fair market value of the acquired assets constituted

  • [...]

  • (ii) if the seller and the eligible entity deal with each other at arm’s length, all or substantially all of the property of the seller that can reasonably be regarded as being necessary for the eligible entity to be capable of carrying on a business of the seller, or part of a business of the seller, as a business;

(4.2) If this subsection applies to an eligible entity in respect of a qualifying period,

• [...]

• (c) if a portion of the assigned revenue is from a person or partnership that did not deal at arm’s length with the seller and that person or partnership deals at arm’s length with the eligible entity throughout the current reference period, then that portion of the assigned revenue is deemed to not be derived from persons or partnerships not dealing at arm’s length for the purposes of paragraph (d) of the definition qualifying revenue in subsection (1);

• (d) if the seller meets any of the following conditions, the eligible entity is deemed to meet that condition:

  • (i) either of the conditions in paragraph (d) of the definition qualifying entity in subsection (1), and

  • (ii) both of the conditions in subparagraph (c)(ii), or the condition in subparagraph (c)(iii), of the definition qualifying renter in subsection (1); and

• (e) for the purposes of subparagraph (b)(i) of the definition prior reference period in subsection (1) and the description of C in subparagraph (c)(ii) of the definition qualifying entity in subsection (1), the eligible entity is deemed to have commenced carrying on the business in which the acquired assets are used at the earlier of

  • [...]

  • (ii) the date on which the seller commenced carrying on the business in which the acquired assets were used.

(5) For the purposes of this section,

• (a) the amount of any deemed overpayment by an eligible entity under any of subsections (2) to (2.2) in respect of a qualifying period cannot exceed the amount claimed by the eligible entity in the application referred to in paragraph (a) of the definition qualifying entity in subsection (1) — or paragraph (a) of the definition qualifying renter in subsection (1) or paragraph (a) of the definition qualifying recovery entity in subsection (1) — in respect of that qualifying period; and

(6) Notwithstanding any other provision in this section, the qualifying revenue of an eligible entity for a current reference period for a qualifying period is deemed to be equal to the qualifying revenue of the eligible entity for the relevant prior reference period, if

• (a) the eligible entity, or a person or partnership not dealing at arm’s length with the eligible entity, enters into a transaction or participates in an event (or a series of transactions or events) or takes an action (or fails to take an action) — other than, for greater certainty, a decision under subparagraph (a)(ii) or (b)(ii) of the definition qualifying revenue in subsection (1) or the decision to use one of the methods of computing qualifying revenues under subsection (4) — that has the effect of

  • [...]

  • (ii) increasing the qualifying rent expenses of the eligible entity for the qualifying period; and

• (b) it is reasonable to conclude that one of the main purposes of the transaction, event, series or action in paragraph (a) is to

  • [...]

  • (ii) in respect of the fifth qualifying period and subsequent qualifying periods, increase the amount of a deemed overpayment under subsection (2), or

[...]

(7) A partnership is deemed

• (a) for the purposes of subsections (2) to (2.2) and subsections 152(3.4) and 160.1(1), to be a taxpayer; and

• (b) for the purposes of subsections (2) to (2.2), to have a liability under this Part for a taxation year in which a qualifying period ends.

(8) The following may be prescribed for the purposes of:

• (a) the definition base percentage in subsection (1),

  • [...]

  • (ii) the factors in subparagraphs (a)(ii), (b)(ii), (c)(ii), (d)(ii), (e)(ii), (f)(ii), (g)(ii), (h)(ii), (i)(ii) and (j)(ii); and

• (b) the definition rent subsidy percentage in subsection (1), the factors and percentages in paragraphs (a) and (a.1) of that definition;

• (b.1) the definition recovery wage subsidy rate in subsection (1), the percentages in that definition; and

• (c) the definition qualifying rent expense in subsection (1), specific, or classes of, expenses that are included or excluded as qualifying rent expenses under paragraph (a) or (b) of that definition.

(9) If, absent the application of this subsection,

• (a) an eligible entity meets the conditions in paragraph (c) of the definition qualifying entity in subsection (1) in respect of a particular qualifying period described in any of paragraphs (a) to (c) of the definition qualifying period in subsection (1), then the eligible entity is deemed to meet the conditions of that paragraph in respect of the immediately following qualifying period; or

• (b) a lower revenue reduction percentage is determined in respect of an eligible entity for a particular qualifying period described in any of paragraphs (c.2) to (d) of the definition qualifying period in subsection (1) than for the immediately preceding qualifying period, then the revenue reduction percentage in respect of the eligible entity for the particular qualifying period is deemed to be equal to its revenue reduction percentage for the immediately preceding qualifying period.

[...]

Marginal note:Deeming rule — qualifying rent expense

(12) For the purposes of the definition qualifying rent expense in subsection (1), an amount is deemed to have been paid by an eligible entity on the date it first became due under an agreement, and not at a later date, if the individual referred to in paragraph (b) of the definition qualifying renter in subsection (1) attests that the eligible entity intends to pay the amount due under the agreement no later than 60 days after the day on which the Minister makes the first refund under subsection 164(1.6) in respect of the amount deemed to have been paid (referred to in subsection (13) as the “payment deadline”).

[...]

Marginal note:Foreign currency — executive remuneration

(15) For the purposes of paragraphs 261(2)(b) and (5)(c), amounts referred to in the definition executive remuneration in subsection (1) are deemed to arise on the last day of the eligible entity’s fiscal period to which the amount relates and not at any other time.

248 (1) In this Act,

additional voluntary contribution

additional voluntary contribution  to a registered pension plan means a contribution that is made by a member to the plan, that is used to provide benefits under a money purchase provision (within the meaning assigned by subsection 147.1(1)) of the plan and that is not required as a general condition of membership in the plan; (cotisation facultative)

advanced life deferred annuity

advanced life deferred annuity  has the meaning assigned by subsection 146.5(1); (rente viagère différée à un âge avancé)

amortized cost

amortized cost  of a loan or lending asset at any time to a taxpayer means the amount, if any, by which the total of

• [...]

• (c) in the case of a loan or lending asset acquired by the taxpayer, the part of the amount, if any, by which

  [...]

  • (ii) the cost to the taxpayer of the loan or lending asset

  [...]

• [...]

• (e) the total of all amounts each of which is an amount in respect of the loan or lending asset that was included under paragraph 12(1)(i) in computing the taxpayer’s income for any taxation year ending at or before that time

[...]

• (f) the part of the amount, if any, by which

  • (i) the amount referred to in subparagraph (c)(ii)

  [...]

  • (ii) the amount referred to in subparagraph (c)(i)

  [...]

• [...]

• (i) the total of all amounts each of which is an amount in respect of the loan or lending asset deducted under paragraph 20(1)(p) in computing the taxpayer’s income for any taxation year ending at or before that time; (coût amorti)

amount

amount  means money, rights or things expressed in terms of the amount of money or the value in terms of money of the right or thing, except that,

• (a) notwithstanding paragraph (b), in any case where subsection 112(2.1), 112(2.2) or 112(2.4), or section 187.2 or 187.3 or subsection 258(3) or 258(5) applies to a stock dividend, the amount of the stock dividend is the greater of

  • [...]

  • (ii) the fair market value of the share or shares paid as a stock dividend at the time of payment,

• (b) in any case where section 191.1 applies to a stock dividend, the amount of the stock dividend for the purposes of Part VI.1 is the greater of

  • [...]

  • (ii) the fair market value of the share or shares paid as a stock dividend at the time of payment,

  [...]

automobile

automobile  means

[...]

• [...]

• (e) a motor vehicle

  • [...]

  • (ii) of a type commonly called a van or pick-up truck, or a similar vehicle, the use of which, in the taxation year in which it is acquired or leased, is all or substantially all for the transportation of goods, equipment or passengers in the course of gaining or producing income, or

  • (iii) of a type commonly called a pick-up truck that is used in the taxation year in which it is acquired or leased primarily for the transportation of goods, equipment or passengers in the course of earning or producing income at one or more locations in Canada that are

    • (A) described, in respect of any of the occupants of the vehicle, in subparagraph 6(6)(a)(i) or (ii), and

balance-due day

balance-due day  of a taxpayer for a taxation year means,

• (a) if the taxpayer is a trust,

  • (i) in the case where the time at which the taxation year ends is determined under paragraph 249(4)(a), the day that is

    • (A) in the case where that time occurs in a calendar year after the end of the trust’s particular taxation year that ends on December 15 of that calendar year because of an election made under paragraph 132.11(1)(a), the balance-due day of the trust for the particular taxation year,

  • (ii) in any other case, the day that is 90 days after the end of the taxation year,

• [...]

• (d) where the taxpayer is a corporation,

  • (i) the day that is three months after the day on which the taxation year (in this subparagraph referred to as the “current year”) ends, if

    • (A) an amount was deducted under section 125 in computing the corporation’s tax payable under this Part for the current year or for its preceding taxation year,

    • [...]

    • (C) either

      • [...]

      • (II) in the case of a corporation that is associated with one or more other corporations in the current year, the total of the taxable incomes of the corporation and of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the current year (determined before taking into consideration the specified future tax consequences for those last taxation years) does not exceed the total of the business limits of the corporation and of those other corporations for those last taxation years, and

  • (ii) the day that is two months after the day on which the taxation year ends, in any other case; (date d’exigibilité du solde)

business

business  includes a profession, calling, trade, manufacture or undertaking of any kind whatever and, except for the purposes of paragraph 18(2)(c), section 54.2, subsection 95(1) and paragraph 110.6(14)(f), an adventure or concern in the nature of trade but does not include an office or employment; (commerce)

Canadian corporation

Canadian corporation  has the meaning assigned by subsection 89(1); (société canadienne)

Canadian field processing

Canadian field processing  means, except as otherwise prescribed,

[...]

• [...]

• (h) where all or part of a natural gas processing plant is devoted primarily to the recovery of ethane, the plant, or the part of the plant, as the case may be, is considered not to be a natural gas processing plant; (traitement préliminaire au Canada)

Canadian real, immovable or resource property

Canadian real, immovable or resource property  means

• (a) a property that would, if this Act were read without reference to the definition real or immovable property in subsection 122.1(1), be a real or immovable property situated in Canada,

• [...]

• (d) a share of the capital stock of a corporation, an income or a capital interest in a trust or an interest in a partnership — other than a taxable Canadian corporation, a SIFT trust (determined without reference to subsection 122.1(2)), a SIFT partnership (determined without reference to subsection 197(8)) or a real estate investment trust (as defined in subsection 122.1(1)) — if more than 50% of the fair market value of the share or interest is derived directly or indirectly from one or any combination of properties described in paragraphs (a) to (c), or

capital interest

capital interest  of a taxpayer in a trust has the meaning assigned by subsection 108(1); (participation au capital)

cash method

cash method  has the meaning assigned by subsection 28(1); (méthode de comptabilité de caisse)

cemetery care trust

cemetery care trust  has the meaning assigned by subsection 148.1(1); (fiducie pour l’entretien d’un cimetière)

common-law partner

common-law partner , with respect to a taxpayer at any time, means a person who cohabits at that time in a conjugal relationship with the taxpayer and

• [...]

• (b) would be the parent of a child of whom the taxpayer is a parent, if this Act were read without reference to paragraphs 252(1)(c) and (e) and subparagraph 252(2)(a)(iii),

[...]

controlled foreign affiliate

controlled foreign affiliate  has, except as expressly otherwise provided in this Act, the meaning assigned by subsection 95(1); (société étrangère affiliée contrôlée)

corporation incorporated in Canada

corporation incorporated in Canada  includes a corporation incorporated in any part of Canada before or after it became part of Canada; (société constituée au Canada)

cost amount

cost amount  to a taxpayer of any property at any time means, except as expressly otherwise provided in this Act,

• (a) where the property was depreciable property of the taxpayer of a prescribed class, the amount that would be that proportion of the undepreciated capital cost to the taxpayer of property of that class at that time that the capital cost to the taxpayer of the property is of the capital cost to the taxpayer of all property of that class that had not been disposed of by the taxpayer before that time if subsection 13(7) were read without reference to paragraph 13(7)(e) and if

  • [...]

  • (ii) subparagraph 13(7)(d)(i) were read as follows:

    [...]

• [...]

• (e) where the property was a right of the taxpayer to receive an amount, other than property that is

  • (i) a debt the amount of which was deducted under paragraph 20(1)(p) in computing the taxpayer’s income for a taxation year that ended before that time,

  • (ii) a net income stabilization account,

  • [...]

  • (iv) a right to receive production (as defined in subsection 18.1(1)) to which a matchable expenditure (as defined in subsection 18.1(1)) relates,

  [...]

and, for the purposes of this definition, financial institution, mark-to-market property and specified debt obligation have the meanings assigned by subsection 142.2(1), and tax basis has the meaning assigned by subsection 142.4(1); (coût indiqué)

credit union

credit union  has the meaning assigned by subsection 137(6), except for the purposes of Part XV.1; (caisse de crédit)

death benefit

death benefit  means the total of all amounts received by a taxpayer in a taxation year on or after the death of an employee in recognition of the employee’s service in an office or employment minus

• (a) where the taxpayer is the only person who has received such an amount and who is a surviving spouse or common-law partner of the employee (which person is, in this definition, referred to as the “surviving spouse or common-law partner”), the lesser of

  • [...]

  • (ii) the amount, if any, by which $10,000 exceeds the total of all amounts received by the taxpayer in preceding taxation years on or after the death of the employee in recognition of the employee’s service in an office or employment, or

• (b) where the taxpayer is not the surviving spouse or common-law partner of the employee, the lesser of

  • [...]

  • (ii) that proportion of

    [...]

deferred profit sharing plan

deferred profit sharing plan  has the meaning assigned by subsection 147(1); (régime de participation différée aux bénéfices)

derivative forward agreement

derivative forward agreement , of a taxpayer, means an agreement entered into by the taxpayer to purchase or sell a capital property if

• (a) the term of the agreement exceeds 180 days or the agreement is part of a series of agreements with a term that exceeds 180 days,

• (b) in the case of a purchase agreement, the difference between the fair market value of the property delivered on settlement, including partial settlement, of the agreement and the amount paid for the property is attributable, in whole or in part, to an underlying interest (including a value, price, rate, variable, index, event, probability or thing) other than

  • (i) revenue, income or cashflow in respect of the property over the term of the agreement, changes in the fair market value of the property over the term of the agreement, or any similar criteria in respect of the property unless

    • (A) the property is

      • [...]

      • (II) an interest in a partnership the fair market value of which is derived, in whole or in part, from a Canadian security,

    • (B) the agreement is an agreement to acquire property from

      • [...]

      • (II) a financial institution (as defined in subsection 142.2(1)), and

    • (C) it can reasonably be considered that one of the main purposes of the series of transactions or events, or any transaction or event in the series, of which the agreement is part is for all or any portion of the capital gain on a disposition (other than a disposition by the seller to the taxpayer under the agreement) of a Canadian security referred to in clause (A) — as part of the same series of transactions or events — to be attributable to amounts paid or payable on the Canadian security by the issuer of the Canadian security during the term of the agreement as

      • [...]

      • (II) dividends, or

  • (ii) if the purchase price is denominated in the currency of a country other than Canada, changes in the value of the Canadian currency relative to that other currency, or

• (c) in the case of a sale agreement,

  • (i) the difference between the sale price of the property and the fair market value of the property at the time the agreement is entered into by the taxpayer is attributable, in whole or in part, to an underlying interest (including a value, price, rate, variable, index, event, probability or thing) other than

    [...]

  • (ii) the agreement is part of an arrangement that has the effect — or would have the effect if the agreements that are part of the arrangement and that were entered into by persons or partnerships not dealing at arm’s length with the taxpayer were entered into by the taxpayer instead of non-arm’s length persons or partnerships — of eliminating a majority of the taxpayer’s risk of loss and opportunity for gain or profit in respect of the property for a period of more than 180 days; (contrat dérivé à terme)

designated stock exchange

designated stock exchange  means a stock exchange, or that part of a stock exchange, for which a designation by the Minister of Finance under section 262 is in effect; (bourse de valeurs désignée)

disposition

disposition  of any property, except as expressly otherwise provided, includes

• [...]

• (b) any transaction or event by which,

  • (i) where the property is a share, bond, debenture, note, certificate, mortgage, hypothecary claim, agreement of sale or similar property, or interest, or for civil law a right, in it, the property is in whole or in part redeemed, acquired or cancelled,

  • (ii) where the property is a debt or any other right to receive an amount, the debt or other right is settled or cancelled,

  • [...]

  • (v) a trust, that can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property (unless the trust is described in any of paragraphs (a) to (e.1) of the definition trust in subsection 108(1)), ceases to act as agent for a beneficiary under the trust with respect to any dealing with any of the trust’s property,

• [...]

• (d) where the property is, or is part of, a taxpayer’s capital interest in a trust, except as provided by paragraph (h) or (i), a payment made after 1999 to the taxpayer from the trust that can reasonably be considered to have been made because of the taxpayer’s capital interest in the trust,

[...]

• (e) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, except where the transfer is

  • [...]

  • (ii) from a trust to a beneficiary under the trust, or

• (f) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, where

  • [...]

  • (ii) [Repealed, 2013, c. 34, s. 358]

  • [...]

  • (vi) if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (in this paragraph having the meaning assigned by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan, a registered supplementary unemployment benefit plan or a TFSA, the transferee is the same type of trust, and

  • (vii) the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value,

• [...]

• (h) where the property is part of a capital interest of a taxpayer in a trust (other than a personal trust or a trust prescribed for the purpose of subsection 107(2)) that is described by reference to units issued by the trust, a payment after 1999 from the trust in respect of the capital interest, where the number of units in the trust that are owned by the taxpayer is not reduced because of the payment,

• (i) where the property is a taxpayer’s capital interest in a trust, a payment to the taxpayer after 1999 in respect of the capital interest to the extent that the payment

  • [...]

  • (ii) is in respect of an amount designated in respect of the taxpayer by the trust under subsection 104(20),

• [...]

• (k) any transfer of the property to a trust as a consequence of which there is no change in the beneficial ownership of the property, where the main purpose of the transfer is

  • [...]

  • (ii) to provide assurance that an absolute or contingent obligation of the transferor will be satisfied, or

• [...]

• (n) a redemption, an acquisition or a cancellation of a share or of a right to acquire a share (which share or which right, as the case may be, is referred to in this paragraph as the “security”) of the capital stock of a corporation (referred to in this paragraph as the “issuing corporation”) held by another corporation (referred to in this paragraph as the “disposing corporation”) if

  • (i) the redemption, acquisition or cancellation occurs as part of a merger or combination of two or more corporations (including the issuing corporation and the disposing corporation) to form one corporate entity (referred to in this paragraph as the “new corporation”),

  • (ii) the merger or combination

    • (A) is an amalgamation (within the meaning assigned by subsection 87(1)) to which subsection 87(11) does not apply,

    • (B) is an amalgamation (within the meaning assigned by subsection 87(1)) to which subsection 87(11) applies, if the issuing corporation and the disposing corporation are described by subsection 87(11) as the parent and the subsidiary, respectively,

    • [...]

    • (D) would be a foreign merger (within the meaning assigned by subsection 87(8.1)) if subparagraph 87(8.1)(c)(ii) were read without reference to the words “that was resident in a country other than Canada”, and

  • (iii) either

    • [...]

    • (B) in the case where the merger or combination is described by clause (ii)(C) or (D), the disposing corporation receives no consideration for the security other than property that was, immediately before the merger or combination, owned by the issuing corporation and that, on the merger or combination, becomes property of the new corporation; (disposition)

dividend rental arrangement

dividend rental arrangement , of a person or a partnership (each of which is referred to in this definition as the person), means

• (a) any arrangement entered into by the person where it can reasonably be considered that

  • [...]

  • (ii) under the arrangement someone other than that person bears the risk of loss or enjoys the opportunity for gain or profit with respect to the share in any material respect,

• (b) for greater certainty, any arrangement under which

  • [...]

  • (ii) the corporation or a partnership of which the corporation is a member is obligated to pay to another person or partnership an amount

    • (A) that is compensation for

      • [...]

      • (II) a dividend on a share that is identical to the particular share, or

• [...]

• (d) one or more agreements or arrangements (other than agreements or arrangements described in paragraph (c)) entered into by the person, the connected person referred to in paragraph (a) of the definition synthetic equity arrangement or, for greater certainty, by any combination of the person and connected persons, if

  • [...]

  • (ii) as part of a series of transactions that includes these agreements or arrangements, a tax-indifferent investor, or a group of tax-indifferent investors each member of which is affiliated with every other member, obtains all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share or an identical share (as defined in subsection 112(10)), and

  • (iii) it is reasonable to conclude that one of the purposes of the series of transactions is to obtain the result described in subparagraph (ii); (mécanisme de transfert de dividendes)

DRA share

DRA share , of a person or partnership, means a share

• [...]

• (e) in any other case, in respect of which the person or partnership is (or would be in the absence of subsection 112(2.3)) entitled to a deduction under subsection 112(1) in respect of dividends received on the share; (action de mécanisme de transfert de dividendes ou AMTD)

eligible dividend

eligible dividend  has the meaning assigned by subsection 89(1); (dividende déterminé)

eligible funeral arrangement

eligible funeral arrangement  has the meaning assigned by subsection 148.1(1); (arrangement de services funéraires)

eligible relocation

eligible relocation  means a relocation of a taxpayer in respect of which the following apply:

• (a) the relocation occurs to enable the taxpayer

  • [...]

  • (ii) to be a student in full-time attendance enrolled in a program at a post-secondary level at a location of a university, college or other educational institution (in section 62 and this definition referred to as “the new work location”),

employee benefit plan

employee benefit plan  means an arrangement under which contributions are made by an employer or by any person with whom the employer does not deal at arm’s length to another person (in this Act referred to as the “custodian” of an employee benefit plan) and under which one or more payments are to be made to or for the benefit of employees or former employees of the employer or persons who do not deal at arm’s length with any such employee or former employee (other than a payment that, if section 6 were read without reference to subparagraph 6(1)(a)(ii) and paragraph 6(1)(g), would not be required to be included in computing the income of the recipient or of an employee or former employee), but does not include any portion of the arrangement that is

• (a) a fund, plan or trust referred to in subparagraph 6(1)(a)(i) or paragraph 6(1)(d) or (f),

• (b) a trust described in paragraph 149(1)(y),

• [...]

• (c.1) a salary deferral arrangement, in respect of a taxpayer, under which deferred amounts are required to be included as benefits under paragraph 6(1)(a) in computing the taxpayer’s income,

employee trust

employee trust  means an arrangement (other than an employees profit sharing plan, a deferred profit sharing plan or a plan referred to in subsection 147(15) as a “revoked plan”) established after 1979

• (a) under which payments are made by one or more employers to a trustee in trust solely to provide to employees or former employees of

  • [...]

  • (ii) a person with whom the employer does not deal at arm’s length,

  [...]

• (b) under which the trustee has, since the commencement of the arrangement, each year allocated to individuals who are beneficiaries thereunder, in such manner as is reasonable, the amount, if any, by which the total of all amounts each of which is

  • [...]

  • (ii) the amount that would, if this Act were read without reference to subsection 104(6), be the income of the trust for the year (other than a taxable capital gain from the disposition of property) from a property or other source other than a business, or

  [...]

employees profit sharing plan

employees profit sharing plan  has the meaning assigned by subsection 144(1); (régime de participation des employés aux bénéfices)

estate

estate  has the meaning assigned by subsection 104(1) and includes, for civil law, a succession; (succession)

excessive eligible dividend designation

excessive eligible dividend designation  has the meaning assigned by subsection 89(1); (désignation excessive de dividende déterminé)

exempt income

exempt income  means property received or acquired by a person in such circumstances that it is, because of any provision of Part I, not included in computing the person’s income, but does not include a dividend on a share or a support amount (as defined in subsection 56.1(4)); (revenu exonéré)

filing-due date

filing-due date  for a taxation year of a taxpayer means the day on or before which the taxpayer’s return of income under Part I for the year is required to be filed or would be required to be filed if tax under that Part were payable by the taxpayer for the year; (date d’échéance de production)

first home savings account

first home savings account or FHSA  has the same meaning as in subsection 146.6(1); (compte d’épargne libre d’impôt pour l’achat d’une première propriété ou CELIAPP)

foreign affiliate

foreign affiliate  has the meaning assigned by subsection 95(1); (société étrangère affiliée)

foreign resource expense

foreign resource expense  has the meaning assigned by subsection 66.21(1); (frais relatifs à des ressources à l’étranger)

foreign resource property

foreign resource property  has the meaning assigned by subsection 66(15), and a foreign resource property in respect of a country means a foreign resource property that is

• [...]

• (b) a right, licence or privilege to

  • [...]

  • (ii) prospect, explore, drill or mine for minerals in a mineral resource in that country,

fully collateralized arrangement

fully collateralized arrangement  means a securities lending arrangement or a specified securities lending arrangement if, throughout the term of the arrangement, the borrower

• (a) has provided the lender under the arrangement with money in an amount of, or securities described in paragraph (c) of the definition qualified security in subsection 260(1) that have a fair market value of, not less than 95% of the fair market value of the security that is transferred or lent under the arrangement, and

general rate income pool

general rate income pool  has the meaning assigned by subsection 89(1); (compte de revenu à taux général)

goods and services tax

goods and services tax  means the tax payable under Part IX of the Excise Tax Act; (taxe sur les produits et services)

graduated rate estate

graduated rate estate , of an individual at any time, means the estate that arose on and as a consequence of the individual’s death if

• [...]

• (c) the individual’s Social Insurance Number (or if the individual had not, before the death, been assigned a Social Insurance Number, such other information as is acceptable to the Minister) is provided in the estate’s return of income under Part I for the taxation year that includes that time and for each of its earlier taxation years that ended after 2015,

• (d) the estate designates itself as the graduated rate estate of the individual in its return of income under Part I for its first taxation year that ends after 2015, and

• (e) no other estate designates itself as the graduated rate estate of the individual in a return of income under Part I for a taxation year that ends after 2015; (succession assujettie à l’imposition à taux progressifs)

grandfathered share

grandfathered share  means

• [...]

• (b) a share of the capital stock of a corporation issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 and before 1988 as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice filed before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 with a public authority pursuant to and in accordance with the securities legislation of the jurisdiction in which the shares are distributed,

• (c) a share (in this paragraph referred to as the “new share”) of the capital stock of a corporation that is issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 in exchange for

  • [...]

  • (ii) a debt obligation of a corporation that was

    • [...]

    • (B) issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 under an agreement in writing entered into before that time, or after that time and before 1988 as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice filed before that time with a public authority under and in accordance with the securities legislation of the jurisdiction in which the debt obligation is distributed,

  [...]

• (d) a share of a class of the capital stock of a Canadian corporation listed on a designated stock exchange that is issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 on the exercise of a right that

  • (i) was issued before that time, that was issued after that time under an agreement in writing entered into before that time or that was issued after that time and before 1988 as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice filed before that time with a public authority under and in accordance with the securities legislation of the jurisdiction in which the rights were distributed, and

  • (ii) was listed on a designated stock exchange,

  [...]

[...]

home relocation loan

home relocation loan  means a loan received by an individual or the individual’s spouse or common-law partner in circumstances where the individual has commenced employment at a location in Canada (in this definition referred to as the “new work location”) and by reason thereof has moved from the residence in Canada at which, before the move, the individual ordinarily resided (in this definition referred to as the “old residence”) to a residence in Canada at which, after the move, the individual ordinarily resided (in this definition referred to as the “new residence”) if

• [...]

• (c) the loan is received in the circumstances described in subsection 80.4(1), or would have been so received if subsection 80.4(1.1) had applied to the loan at the time it was received, and

income bond

income bond or income debenture  of a corporation (in this definition referred to as the “issuing corporation”) means a bond or debenture in respect of which interest or dividends are payable only to the extent that the issuing corporation has made a profit before taking into account the interest or dividend obligation and that was issued

• [...]

• (c) by an issuing corporation resident in Canada for a term that may not, in any circumstances, exceed 5 years,

  • (i) as part of a proposal to or an arrangement with its creditors that had been approved by a court under the Bankruptcy and Insolvency Act,

  • (ii) at a time when all or substantially all of its assets were under the control of a receiver, receiver-manager, sequestrator or trustee in bankruptcy, or

  • (iii) at a time when, by reason of financial difficulty, the issuing corporation or another corporation resident in Canada with which it does not deal at arm’s length was in default, or could reasonably be expected to default, on a debt obligation held by a person with whom the issuing corporation or the other corporation was dealing at arm’s length and the bond or debenture was issued either wholly or in substantial part and either directly or indirectly in exchange or substitution for that obligation or a part thereof,

  [...]

[...]

• [...]

• (e) where

  • [...]

  • (ii) under the terms or conditions of a bond or debenture acquired in the ordinary course of the business carried on by a specified financial institution or a partnership or trust (other than a testamentary trust) or under the terms or conditions of any agreement relating to any such bond or debenture (other than an agreement made before October 24, 1979 to which the issuing corporation or any person related thereto was not a party), the owner thereof could at any particular time after November 16, 1978 require, either alone or together with one or more taxpayers, the repayment, acquisition, cancellation or conversion of the bond or debenture otherwise than by reason of a failure or default under the terms or conditions of the bond or debenture or any agreement that related to, and was entered into at the time of, the issuance of the bond or debenture,

  • [...]

  • (iv) at a particular time a specified financial institution (or a partnership or trust of which a specified financial institution or a person related to the institution is a member or beneficiary) acquires a bond or debenture that

    • [...]

    • (B) was issued to a person other than a corporation that was, at the time of issue,

      • [...]

      • (II) a corporation that was controlled by one or more corporations described in subclause (I) and, for the purpose of this subclause, one corporation is controlled by another corporation if more than 50% of its issued share capital (having full voting rights under all circumstances) belongs to the other corporation, to persons with whom the other corporation does not deal at arm’s length, or to the other corporation and persons with whom the other corporation does not deal at arm’s length,

  [...]

income interest

income interest  of a taxpayer in a trust has the meaning assigned by subsection 108(1); (participation au revenu)

international shipping

international shipping  means the operation of a ship owned or leased by a person or partnership (in this definition referred to as the “operator”) that is used, either directly or as part of a pooling arrangement, primarily in transporting passengers or goods in international traffic — determined as if, except where paragraph (c) of the definition international traffic in this subsection applies, any port or other place on the Great Lakes or St. Lawrence River is in Canada — including the chartering of the ship, provided that one or more persons related to the operator (if the operator and each such person is a corporation), or persons or partnerships affiliated with the operator (in any other case), has complete possession, control and command of the ship, and any activity incident to or pertaining to the operation of the ship, but does not include

[...]

inter vivos trust

inter vivos trust  has the meaning assigned by subsection 108(1); (fiducie non testamentaire)

lawyer

lawyer  has the meaning assigned by subsection 232(1); (avocat)

LIA policy

LIA policy  means a life insurance policy (other than an annuity) where

• [...]

• (b) the lender is assigned an interest in

  • [...]

  • (ii) an annuity contract the terms of which provide that payments are to continue for a period that ends no earlier than the death of the particular individual; (police RAL)

licensed annuities provider

licensed annuities provider  has the meaning assigned by subsection 147(1); (fournisseur de rentes autorisé)

life insurance business

life insurance business  includes

• [...]

• (b) the business of issuing contracts all or any part of the issuer’s reserves for which vary in amount depending on the fair market value of a specified group of assets,

[...]

low rate income pool

low rate income pool  has the meaning assigned by subsection 89(1); (compte de revenu à taux réduit)

majority-interest partner

majority-interest partner , of a particular partnership at any time, means a person or partnership (in this definition referred to as the “taxpayer”)

• (a) whose share of the particular partnership’s income from all sources for the last fiscal period of the particular partnership that ended before that time (or, if the particular partnership’s first fiscal period includes that time, for that period) would have exceeded 1/2 of the particular partnership’s income from all sources for that period if the taxpayer had held throughout that period each interest in the partnership that the taxpayer or a person affiliated with the taxpayer held at that time, or

• (b) whose share, if any, together with the shares of every person with whom the taxpayer is affiliated, of the total amount that would be paid to all members of the particular partnership (otherwise than as a share of any income of the partnership) if it were wound up at that time exceeds 1/2 of that amount; (associé détenant une participation majoritaire)

mineral resource

mineral resource  means

• [...]

• (d) a mineral deposit in respect of which

  • [...]

  • (ii) the principal mineral extracted is ammonite gemstone, calcium chloride, diamond, gypsum, halite, kaolin or sylvite, or

money purchase limit

money purchase limit  for a calendar year has the meaning assigned by subsection 147.1(1); (plafond des cotisations déterminées)

net corporate income tax rate

net corporate income tax rate  in respect of a SIFT trust or SIFT partnership for a taxation year means the amount, expressed as a decimal fraction, by which

• (a) the percentage rate of tax provided under paragraph 123(1)(a) for the taxation year

[...]

• (b) the total of

  • (i) the percentage that would, if the SIFT trust or SIFT partnership were a corporation, be its general rate reduction percent- age, within the meaning assigned by subsection 123.4(1), for the taxation year, and

  • (ii) the percentage deduction from tax provided under subsection 124(1) for the taxation year; (taux net d’imposition du revenu des sociétés)

non-portfolio property

non-portfolio property  has the same meaning as in subsection 122.1(1); (bien hors portefeuille)

oil or gas well

oil or gas well  means any well (other than an exploratory probe or a well drilled from below the surface of the earth) drilled for the purpose of producing petroleum or natural gas or of determining the existence, location, extent or quality of a natural accumulation of petroleum or natural gas, but, for the purpose of applying sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a) in respect of property acquired after March 6, 1996, does not include a well for the extraction of material from a deposit of bituminous sands or oil shales; (puits de pétrole ou de gaz)

paid-up capital

paid-up capital  has the meaning assigned by subsection 89(1); (capital versé)

Part VII refund

Part VII refund  has the meaning assigned by subsection 192(2); (remboursement de la partie VII)

Part VIII refund

Part VIII refund  has the meaning assigned by subsection 194(2); (remboursement de la partie VIII)

person

person , or any word or expression descriptive of a person, includes any corporation, and any entity exempt, because of subsection 149(1), from tax under Part I on all or part of the entity’s taxable income and the heirs, executors, liquidators of a succession, administrators or other legal representatives of such a person, according to the law of that part of Canada to which the context extends; (personne)

personal trust

personal trust  means a trust (other than a trust that is, or was at any time after 1999, a unit trust) that is

• [...]

• (b) a trust in which no beneficial interest was acquired for consideration payable directly or indirectly to

  • [...]

  • (ii) any person or partnership that has made a contribution to the trust by way of transfer, assignment or other disposition of property; (fiducie personnelle)

pooled pension plan

pooled pension plan  has the same meaning as in subsection 147.5(1); (régime de pension collectif)

pooled registered pension plan

pooled registered pension plan or PRPP  has the same meaning as in subsection 147.5(1); (régime de pension agréé collectif ou RPAC)

private corporation

private corporation  has the meaning assigned by subsection 89(1); (société privée)

profit sharing plan

profit sharing plan  has the meaning assigned by subsection 147(1); (régime de participation aux bénéfices)

public corporation

public corporation  has the meaning assigned by subsection 89(1); (société publique)

public market

public market  has the same meaning as in subsection 122.1(1); (marché public)

qualified Canadian journalism organization

qualified Canadian journalism organization , at any time, means a corporation, partnership or trust that

• (a) meets the following conditions:

  • [...]

  • (ii) in the case of a partnership,

    • [...]

    • (B) individuals who are citizens of Canada or persons, or partnerships, described in any of subparagraphs (i) to (iii) hold interests in the partnership

      • [...]

      • (II) that result in at least 75% of each income or loss of the partnership from any source being included in the determination of their incomes,

  • (iii) in the case of a trust,

    • [...]

    • (C) if interests as a beneficiary under the trust are held by one or more persons or partnerships, at least 75% of the fair market value of all interests as a beneficiary under the trust are held by

      • [...]

      • (II) persons or partnerships described in any of subparagraphs (i) to (iii),

qualified donee

qualified donee  has the meaning assigned by subsection 149.1(1); (donataire reconnu)

qualifying environmental trust

qualifying environmental trust  has the meaning assigned by subsection 211.6(1); (fiducie pour l’environnement admissible)

refundable Part VII tax on hand

refundable Part VII tax on hand  has the meaning assigned by subsection 192(3); (impôt de la partie VII en main remboursable)

refundable Part VIII tax on hand

refundable Part VIII tax on hand  has the meaning assigned by subsection 194(3); (impôt de la partie VIII en main remboursable)

registered Canadian amateur athletic association

registered Canadian amateur athletic association  means a Canadian amateur athletic association within the meaning assigned by subsection 149.1(1) that has applied to the Minister in prescribed form for registration, that has been registered and whose registration has not been revoked; (association canadienne enregistrée de sport amateur)

registered charity

registered charity  at any time means

• (a) a charitable organization, private foundation or public foundation, within the meanings assigned by subsection 149.1(1), that is resident in Canada and was either created or established in Canada, or

[...]

registered disability savings plan

registered disability savings plan or RDSP  has the same meaning as in subsection 146.4(1); (régime enregistré d’épargne-invalidité ou REEI)

registered education savings plan

registered education savings plan or RESP  has the same meaning as in subsection 146.1(1); (régime enregistré d’épargne-études ou REEE)

registered investment

registered investment  has the meaning assigned by subsection 204.4(1); (placement enregistré)

registered journalism organization

registered journalism organization  means a qualifying journalism organization (as defined in subsection 149.1(1)) that has applied to the Minister in prescribed form for registration, that has been registered and whose registration has not been revoked; (organisation journalistique enregistrée)

registered labour-sponsored venture capital corporation

registered labour-sponsored venture capital corporation  means a corporation that was registered under subsection 204.81(1), the registration of which has not been revoked; (société agréée à capital de risque de travailleurs)

registered retirement income fund

registered retirement income fund or RRIF  have the same meaning as registered retirement income fund in subsection 146.3(1); (fonds enregistré de revenu de retraite ou FERR)

registered retirement savings plan

registered retirement savings plan or RRSP  have the same meaning as registered retirement savings plan in subsection 146(1); (régime enregistré d’épargne-retraite ou REER)

registered supplementary unemployment benefit plan

registered supplementary unemployment benefit plan  has the meaning assigned by subsection 145(1); (régime enregistré de prestations supplémentaires de chômage)

relevant factor

relevant factor  means

• [...]

• (b) for taxation years that end after 2009, the amount determined by the formula

  1/(A – B)

  where

  A 

  is the percentage set out in paragraph 123(1)(a), and

restricted financial institution

restricted financial institution  means

• [...]

• (e.1) a corporation described in paragraph (g) of the definition financial institution in subsection 181(1), or

retirement compensation arrangement

retirement compensation arrangement  means a plan or arrangement under which contributions (other than payments made to acquire an interest in a life insurance policy) are made by an employer or former employer of a taxpayer, or by a person with whom the employer or former employer does not deal at arm’s length, to another person or partnership (in this definition and in Part XI.3 referred to as the “custodian”) in connection with benefits that are to be or may be received or enjoyed by any person on, after or in contemplation of any substantial change in the services rendered by the taxpayer, the retirement of the taxpayer or the loss of an office or employment of the taxpayer, but does not include

• [...]

• (i) a vacation pay trust described in paragraph 149(1)(y),

• (j) a plan or arrangement established for the purpose of deferring the salary or wages of a professional athlete for his services as such with a team that participates in a league having regularly scheduled games (in this definition referred to as an “athlete’s plan”), where

  • [...]

  • (ii) in the case of a Canadian team, the custodian of the plan or arrangement carries on business through a fixed place of business in Canada and is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,

• (k) a salary deferral arrangement, whether or not deferred amounts thereunder are required to be included as benefits under paragraph 6(1)(a) in computing a taxpayer’s income,

[...]

retirement income fund

retirement income fund  has the meaning assigned by subsection 146.3(1); (fonds de revenu de retraite)

retirement savings plan

retirement savings plan  has the meaning assigned by subsection 146(1); (régime d’épargne-retraite)

retiring allowance

retiring allowance  means an amount (other than a superannuation or pension benefit, an amount received as a consequence of the death of an employee or a benefit described in subparagraph 6(1)(a)(iv)) received

[...]

RRSP deduction limit

RRSP deduction limit  has the meaning assigned by subsection 146(1); (maximum déductible au titre des REER)

RRSP dollar limit

RRSP dollar limit  has the meaning assigned by subsection 146(1); (plafond REER)

salary deferral arrangement

salary deferral arrangement , in respect of a taxpayer, means a plan or arrangement, whether funded or not, under which any person has a right in a taxation year to receive an amount after the year where it is reasonable to consider that one of the main purposes for the creation or existence of the right is to postpone tax payable under this Act by the taxpayer in respect of an amount that is, or is on account or in lieu of, salary or wages of the taxpayer for services rendered by the taxpayer in the year or a preceding taxation year (including such a right that is subject to one or more conditions unless there is a substantial risk that any one of those conditions will not be satisfied), but does not include

• [...]

• (h) a vacation pay trust described in paragraph 149(1)(y),

salary or wages

salary or wages , except in sections 5 and 63 and the definition death benefit in this subsection, means the income of a taxpayer from an office or employment as computed under Subdivision A of Division B of Part I and includes all fees received for services not rendered in the course of the taxpayer’s business but does not include superannuation or pension benefits or retiring allowances; (traitement ou salaire)

securities lending arrangement

securities lending arrangement  has the meaning assigned by subsection 260(1); (mécanisme de prêt de valeurs mobilières)

share

share , except as the context otherwise requires, means a share or a fraction of a share of the capital stock of a corporation and, for greater certainty, a share of the capital stock of a corporation includes a share of the capital of a cooperative corporation (within the meaning assigned by subsection 136(2)), a share of the capital of an agricultural cooperative corporation (within the meaning assigned by subsection 135.1(1)) and a share of the capital of a credit union; (action)

short-term preferred share

short-term preferred share  of a corporation at any particular time means a share, other than a grandfathered share, of the capital stock of the corporation issued after December 15, 1987 that at that particular time

• (a) is a share where, under the terms and conditions of the share, any agreement relating to the share or any modification of those terms and conditions or that agreement, the corporation or a specified person in relation to the corporation is or may, at any time within 5 years after the date of its issue, be required to redeem, acquire or cancel, in whole or in part, the share (unless the requirement to redeem, acquire or cancel the share arises only in the event of the death of the shareholder or by reason only of a right to convert or exchange the share) or to reduce the paid-up capital of the share, and for the purposes of this paragraph

  • (i) an agreement in respect of a share of the capital stock of a corporation shall be read without reference to that part of the agreement under which a person agrees to acquire the share for an amount

    • (A) in the case of a share (other than a share that would, but for that part of the agreement, be a taxable preferred share) the agreement in respect of which provides that the share is to be acquired within 60 days after the day on which the agreement was entered into, that does not exceed the greater of the fair market value of the share at the time the agreement was entered into, determined without reference to the agreement, and the fair market value of the share at the time of the acquisition, determined without reference to the agreement, or

  • (ii)  shareholder includes a shareholder of a shareholder, or

• (b) is a share that is convertible or exchangeable at any time within 5 years after the date of its issue, unless

  • [...]

  • (ii) all the consideration receivable for the share on the conversion or exchange is the share described in clause (A) or the right or warrant described in clause (B) or both, as the case may be, and for the purposes of this subparagraph, where a taxpayer may become entitled on the conversion or exchange of a share to receive any particular consideration (other than consideration described in any of clauses (A) to (C)) in lieu of a fraction of a share, the particular consideration shall be deemed not to be consideration unless it may reasonably be considered that the particular consideration was receivable as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1 or VI.1,

[...]

• (c) where at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 1987, the terms or conditions of a share of the capital stock of a corporation that are relevant to any matter referred to in any of paragraphs (a), (b), (f) and (h) are established or modified, or any agreement in respect of any such matter to which the corporation or a specified person in relation to the corporation is a party, is changed or entered into, the share shall be deemed after that particular time to have been issued at that particular time,

• (d) where at any particular time after December 15, 1987 a particular share of the capital stock of a corporation has been issued or its terms or conditions have been modified or an agreement in respect of the share is modified or entered into, and it may reasonably be considered, having regard to all the circumstances, including the rate of interest on any debt obligation or the dividend provided on any short-term preferred share, that

  • [...]

  • (ii) one of the main purposes for the issue of the particular share or the modification of its terms or conditions or the modification or entering into the agreement in respect of the share was to avoid or limit the tax payable under subsection 191.1(1),

[...]

• (e) where at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 1987, the terms or conditions of a share of the capital stock of a corporation are modified or established or any agreement in respect of the share has been changed or entered into, and as a consequence thereof the corporation or a specified person in relation to the corporation may reasonably be expected to redeem, acquire or cancel (otherwise than by reason of the death of the shareholder or by reason only of a right to convert or exchange the share that would not cause the share to be a short-term preferred share by reason of paragraph (b)), in whole or in part, the share, or to reduce its paid-up capital, within 5 years after the particular time, the share shall be deemed to have been issued at that particular time and to be a short-term preferred share of the corporation after the particular time until the time that that reasonable expectation ceases to exist and, for the purposes of this paragraph,

  • (i) an agreement in respect of a share of the capital stock of a corporation shall be read without reference to that part of the agreement under which a person agrees to acquire the share for an amount

    • (A) in the case of a share (other than a share that would, but for that part of the agreement, be a taxable preferred share) the agreement in respect of which provides that the share is to be acquired within 60 days after the day on which the agreement was entered into, that does not exceed the greater of the fair market value of the share at the time the agreement was entered into, determined without reference to the agreement, and the fair market value of the share at the time of the acquisition, determined without reference to the agreement, or

  • (ii)  shareholder includes a shareholder of a shareholder,

• (f) if a share of the capital stock of a corporation was issued after December 15, 1987 and at the time the share was issued the existence of the corporation was, or there was an arrangement under which it could be, limited to a period that was within five years from the date of its issue, the share is deemed to be a short-term preferred share of the corporation unless

  • [...]

  • (ii) the share is issued to an individual after April 14, 2005 under an agreement referred to in subsection 7(1), if when the individual last acquired a right under the agreement to acquire a share of the capital stock of the corporation, the existence of the corporation was not, and no arrangement was in effect under which it could be, limited to a period that was within five years from the date of that last acquisition,

• [...]

• (h) where at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 1987, as a result of the terms or conditions of a share of the capital stock of a corporation or any agreement entered into by the corporation or a specified person in relation to the corporation, any person (other than the corporation or an individual other than a trust) was obligated, either absolutely or contingently and either immediately or in the future, to effect any undertaking within 5 years after the day on which the share was issued (in this paragraph referred to as a “guarantee agreement”) including any guarantee, covenant or agreement to purchase or repurchase the share, and including the lending of funds or the placing of amounts on deposit with, or on behalf of the shareholder or a specified person in relation to the shareholder given

  • [...]

  • (ii) as part of a transaction or event or series of transactions or events that included the issuance of the share,

  the share shall be deemed after that particular time to have been issued at the particular time and to be at and immediately after the particular time a short-term preferred share, and for the purposes of this paragraph, where a guarantee agreement in respect of a share is given at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 1987, the share shall be deemed to have been issued at the particular time and the guarantee agreement shall be deemed to have been given as part of a series of transactions that included the issuance of the share,

SIFT trust wind-up event

SIFT trust wind-up event  means a distribution by a particular trust resident in Canada of property to a taxpayer in respect of which the following conditions are met:

• [...]

• (c) the particular trust is

  • [...]

  • (ii) a trust whose only beneficiary throughout the period (referred to in this definition as the “qualifying period”) that begins on July 14, 2008 and that ends at the time of the distribution is another trust that throughout the qualifying period

    [...]

  • (iii) a trust whose only beneficiary at the time of distribution is another trust that throughout the qualifying period

    • [...]

    • (B) is a SIFT wind-up entity or a trust described by subparagraph (ii), and

• [...]

• (e) the property was not acquired by the particular trust as a result of a transfer or an exchange

  • (i) that is

    • (A) a qualifying exchange as defined in subsection 132.2(1) or a qualifying disposition as defined in subsection 107.4(1),

  • (ii) to which any of sections 51, 85, 85.1, 86, 87, 88, 107.4 or 132.2 applies, of another property acquired as a result of a transfer or an exchange described by subparagraph (i) or this subparagraph; (fait lié à la conversion d’une EIPD-fiducie)

SIFT wind-up corporation

SIFT wind-up corporation , in respect of a SIFT wind-up entity, means at any particular time a corporation

• (a) that, at any time that is after July 13, 2008 and before the earlier of the particular time and January 1, 2013, owns all of the equity in the SIFT wind-up entity, or

SIFT wind-up entity

SIFT wind-up entity  means a trust or partnership that at any time in the period that began on October 31, 2006 and that ends on July 14, 2008 is

• [...]

• (c) a real estate investment trust (as defined in subsection 122.1(1)); (EIPD convertible)

SIFT wind-up entity equity

SIFT wind-up entity equity , or equity in a SIFT wind-up entity, means

[...]

except that if all of the interests described in paragraph (a) or (b), as the case may be, in the SIFT wind-up entity are described by reference to units, it means the part of the interest represented by such a unit; (intérêt dans une EIPD convertible)

small business corporation

small business corporation , at any particular time, means, subject to subsection 110.6(15), a particular corporation that is a Canadian-controlled private corporation all or substantially all of the fair market value of the assets of which at that time is attributable to assets that are

[...]

including, for the purpose of paragraph 39(1)(c), a corporation that was at any time in the 12 months preceding that time a small business corporation, and, for the purpose of this definition, the fair market value of a net income stabilization account shall be deemed to be nil; (société exploitant une petite entreprise)

specified financial institution

specified financial institution , at any time, means

• [...]

• (e.1) a corporation described in paragraph (g) of the definition financial institution in subsection 181(1),

• [...]

• (g) a corporation that is related to a particular corporation described in any of paragraphs (a) to (f), other than a particular corporation described in paragraph (e) or (e.1) the principal business of which is the factoring of trade accounts receivable that

  • [...]

  • (ii) arose in the course of an active business carried on by a person (in this paragraph referred to as the “business entity”) related at that time to the particular corporation, and

specified future tax consequence

specified future tax consequence  for a taxation year means

• [...]

• (b) the consequence of a reduction under subsection 66(12.73) of a particular amount purported to be renounced by a corporation after the beginning of the year to a person or partnership under subsection 66(12.6) or 66(12.601) because of the application of subsection 66(12.66), determined as if the purported renunciation would, but for subsection 66(12.73), have been effective only where

  • [...]

  • (ii) the effective date of the purported renunciation was the last day of the preceding calendar year,

specified hedging transaction

specified hedging transaction , in respect of a DRA share of a person or partnership (referred to in this definition as the “particular person”), means a transaction (in this definition, as defined in subsection 245(1)) or series of transactions that satisfies the following conditions:

• (a) it is entered into by

  • [...]

  • (ii) a registered securities dealer or a partnership each member of which is a registered securities dealer (in either case, referred to in this definition as the “connected dealer”), if the connected dealer does not deal at arm’s length with, or is affiliated with, the particular person,

specified individual

specified individual  has the meaning assigned by subsection 120.4(1); (particulier déterminé)

specified member

specified member  of a partnership in a fiscal period or taxation year of the partnership, as the case may be, means

• [...]

• (b) any member of the partnership, other than a member who is

  • [...]

  • (ii) carrying on a similar business as that carried on by the partnership in its taxation year, otherwise than as a member of a partnership,

on a regular, continuous and substantial basis throughout that part of the period or year during which the business of the partnership is ordinarily carried on and during which the member is a member of the partnership; (associé déterminé)

specified proportion

specified proportion , of a member of a partnership for a fiscal period of the partnership, means the proportion that the member’s share of the total income or loss of the partnership for the partnership’s fiscal period is of the partnership’s total income or loss for that period and, for the purpose of this definition, where that income or loss for a period is nil, that proportion shall be computed as if the partnership had income for that period in the amount of $1,000,000; (proportion déterminée)

specified securities lending arrangement

specified securities lending arrangement  has the same meaning as in subsection 260(1); (mécanisme de prêt de valeurs mobilières déterminé)

split income

split income  has the meaning assigned by subsection 120.4(1); (revenu fractionné)

superannuation or pension benefit

superannuation or pension benefit  includes any amount received out of or under a superannuation or pension fund or plan (including, except for the purposes of subparagraph 56(1)(a)(i), a pooled registered pension plan) and, without restricting the generality of the foregoing, includes any payment made to a beneficiary under the fund or plan or to an employer or former employer of the beneficiary under the fund or plan

[...]

supplementary unemployment benefit plan

supplementary unemployment benefit plan  has the meaning assigned by subsection 145(1); (régime de prestations supplémentaires de chômage)

synthetic disposition arrangement

synthetic disposition arrangement , in respect of a property owned by a taxpayer, means one or more agreements or other arrangements that

• [...]

• (c) can, in respect of any agreement or arrangement entered into by a person or partnership that does not deal at arm’s length with the taxpayer, reasonably be considered to have been entered into, in whole or in part, with the purpose of obtaining the effect described in paragraph (b); (arrangement de disposition factice)

synthetic equity arrangement

synthetic equity arrangement  in respect of a DRA share of a person or partnership (referred to in this definition as the particular person),

• (a) means one or more agreements or other arrangements that

  • [...]

  • (ii) have the effect, or would have the effect, if each agreement entered into by a connected person were entered into by the particular person, of providing all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share to a counterparty or a group of counterparties each member of which is affiliated with every other member and, for greater certainty, opportunity for gain or profit includes rights to, benefits from and distributions on a share, and

  • (iii) if entered into by a connected person, can reasonably be considered to have been entered into with the knowledge, or where there ought to have been the knowledge, that the effect described in subparagraph (ii) would result, and

• (b) does not include

  • (i) an agreement that is traded on a recognized derivatives exchange unless it can reasonably be considered that, at the time the agreement is entered into,

    • (A) the particular person or the connected person, as the case may be, knows or ought to know that the agreement is part of a series of transactions that has the effect of providing all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share to a tax-indifferent investor, or a group of tax-indifferent investors each member of which is affiliated with every other member, or

  • (ii) one or more agreements or other arrangements that, but for this subparagraph, would be a synthetic equity arrangement, in respect of a share owned by the particular person (in this subparagraph referred to as the synthetic short position), if

    [...]

  • (iii) an agreement to purchase the shares of a corporation, or a purchase agreement that is part of a series of agreements to purchase the shares of a corporation, under which a counterparty or a group of counterparties each member of which is affiliated with every other member acquires control of the corporation that has issued the shares being purchased, unless the main reason for establishing, incorporating or operating the corporation is to have this subparagraph apply; (arrangement de capitaux propres synthétiques)

synthetic equity arrangement chain

synthetic equity arrangement chain , in respect of a share owned by a person or partnership, means a synthetic equity arrangement — or a synthetic equity arrangement in combination with one or more specified synthetic equity arrangements — where

• (a) no party to the synthetic equity arrangement or a specified synthetic equity arrangement, if any, is a tax-indifferent investor, and

• (b) each other party to these agreements or arrangements is affiliated with the person or partnership; (chaîne d’arrangements de capitaux propres synthétiques)

tar sands

tar sands  means bituminous sands or oil shales extracted, otherwise than by a well, from a mineral resource, but, for the purpose of applying sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a) in respect of property acquired after March 6, 1996, includes material extracted by a well from a deposit of bituminous sands or oil shales; (sables asphaltiques)

taxable Canadian corporation

taxable Canadian corporation  has the meaning assigned by subsection 89(1); (société canadienne imposable)

taxable Canadian property

taxable Canadian property  of a taxpayer at any time in a taxation year means a property of the taxpayer that is

• [...]

• (b) property used or held by the taxpayer in, property included in Class 14.1 of Schedule II to the Income Tax Regulations in respect of, or property described in an inventory of, a business carried on in Canada, other than

  • [...]

  • (ii) where the taxpayer is non-resident, ships and aircraft used principally in international traffic and personal or movable property pertaining to their operation if the country in which the taxpayer is resident does not impose tax on gains of persons resident in Canada from dispositions of such property,

• [...]

• (d) a share of the capital stock of a corporation (other than a mutual fund corporation) that is not listed on a designated stock exchange, an interest in a partnership or an interest in a trust (other than a unit of a mutual fund trust or an income interest in a trust resident in Canada), if, at any particular time during the 60-month period that ends at that time, more than 50% of the fair market value of the share or interest, as the case may be, was derived directly or indirectly (otherwise than through a corporation, partnership or trust the shares or interests in which were not themselves taxable Canadian property at the particular time) from one or any combination of

  • [...]

  • (ii) Canadian resource properties,

• (e) a share of the capital stock of a corporation that is listed on a designated stock exchange, a share of the capital stock of a mutual fund corporation or a unit of a mutual fund trust, if, at any particular time during the 60-month period that ends at that time,

  • [...]

  • (ii) more than 50% of the fair market value of the share or unit, as the case may be, was derived directly or indirectly from one or any combination of properties described under subparagraphs (d)(i) to (iv), or

and, for the purposes of section 2, subsection 107(2.001) and sections 128.1 and 150, and for the purpose of applying paragraphs 85(1)(i) and 97(2)(c) to a disposition by a non-resident person, includes

[...]

taxable dividend

taxable dividend  has the meaning assigned by subsection 89(1); (dividende imposable)

taxable income earned in Canada

taxable income earned in Canada  means a taxpayer’s taxable income earned in Canada determined in accordance with Division D of Part I, except that in no case may a taxpayer’s taxable income earned in Canada be less than nil; (revenu imposable gagné au Canada)

taxable preferred share

taxable preferred share  at any particular time means

• [...]

• (b) a share (other than a grandfathered share) of the capital stock of a corporation issued after 8:00 p.m Eastern Daylight Saving Time, June 18, 1987 where, at that particular time by reason of the terms or conditions of the share or any agreement in respect of the share or its issue to which the corporation, or a specified person in relation to the corporation, is a party,

  • [...]

  • (ii) it may reasonably be considered, having regard to all the circumstances, that the amount that the shareholder is entitled to receive in respect of the share on the dissolution, liquidation or winding-up of the corporation or on the redemption, acquisition or cancellation of the share (unless the requirement to redeem, acquire or cancel the share arises only in the event of the death of the shareholder or by reason only of a right to convert or exchange the share) or on a reduction of the paid-up capital of the share by the corporation or by a specified person in relation to the corporation (in this definition referred to as the “liquidation entitlement”) is, by way of a formula or otherwise

    [...]

  • (iii) the share is convertible or exchangeable at any time, unless

    • (A) it is convertible into or exchangeable for

      • [...]

      • (II) a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the corporation or a corporation related to the corporation that, if issued, would not be a taxable preferred share, or

      • (III) both a share described in subclause (I) and a right or warrant described in subclause (II), and

    • (B) all the consideration receivable for the share on the conversion or exchange is the share described in subclause (I) or the right or warrant described in subclause (II) or both, as the case may be, and, for the purposes of this clause, where a taxpayer may become entitled on the conversion or exchange of a share to receive any particular consideration (other than consideration described in any of subclauses (I) to (III)) in lieu of a fraction of a share, the particular consideration shall be deemed not to be consideration unless it may reasonably be considered that the particular consideration was receivable as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1 or VI.1, or

  • (iv) any person (other than the corporation) was, at or immediately before that particular time, obligated, either absolutely or contingently, and either immediately or in the future, to effect any undertaking (in this subparagraph referred to as a “guarantee agreement”), including any guarantee, covenant or agreement to purchase or repurchase the share, and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the shareholder or any specified person in relation to the shareholder given

    [...]

    and the guarantee agreement was given as part of a transaction or event or a series of transactions or events that included the issuance of the share and, for the purposes of this paragraph, where a guarantee agreement in respect of a share is given at any particular time after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987, otherwise than pursuant to a written arrangement to do so entered into before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987, the share shall be deemed to have been issued at the particular time and the guarantee agreement shall be deemed to have been given as part of a series of transactions that included the issuance of the share,

[...]

• (c) the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all dividends on the share are determined solely by reference to the dividend entitlement of another share of the capital stock of the corporation or of another corporation that controls the corporation that would not be a taxable preferred share if

  • [...]

  • (ii) the other share were issued after June 18, 1987, and

• (d) the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all the liquidation entitlement is determinable solely by reference to the liquidation entitlement of another share of the capital stock of the corporation or of another corporation that controls the corporation that would not be a taxable preferred share if

  • [...]

  • (ii) the other share were issued after June 18, 1987, and

• (e) where at any particular time after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987, otherwise than pursuant to a written arrangement to do so entered into before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987, the terms or conditions of a share of the capital stock of a corporation that are relevant to any matter referred to in any of subparagraphs (b)(i) to (b)(iv) are established or modified or any agreement in respect of any such matter, to which the corporation or a specified person in relation to the corporation is a party, is changed or entered into, the share shall, for the purpose of determining after the particular time whether it is a taxable preferred share, be deemed to have been issued at that particular time, unless

  • [...]

  • (ii) the particular time is before December 16, 1987 and before the time at which the share is first issued,

• (f) an agreement in respect of a share of the capital stock of a corporation shall be read without reference to that part of the agreement under which a person agrees to acquire the share for an amount

  • [...]

  • (ii) that does not exceed the fair market value of the share at the time of the acquisition, determined without reference to the agreement, or for an amount determined by reference to the assets or earnings of the corporation where that determination may reasonably be considered to be used to determine an amount that does not exceed the fair market value of the share at the time of the acquisition, determined without reference to the agreement,

• (g) where

  • [...]

  • (ii) it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1 or VI.1,

  [...]

taxable RFI share

taxable RFI share  at any particular time means a share of the capital stock of a corporation issued before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 or a grandfathered share of the capital stock of a corporation, where at the particular time under the terms or conditions of the share or any agreement in respect of the share,

• (a) it may reasonably be considered, having regard to all the circumstances, that the amount of the dividends that may be declared or paid on the share (in this definition referred to as the “dividend entitlement”) is, by way of a formula or otherwise

  • [...]

  • (ii) limited to a maximum, or

• (b) it may reasonably be considered, having regard to all the circumstances, that the amount that the shareholder is entitled to receive in respect of the share on the dissolution, liquidation or winding-up of the corporation (in this definition referred to as the “liquidation entitlement”) is, by way of formula or otherwise

  • [...]

  • (ii) limited to a maximum, or

[...]

• (c) the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all dividends on the share are determined solely by reference to the dividend entitlement of another share of the capital stock of the corporation or of another corporation that controls the corporation that would not be a taxable preferred share if

  • [...]

  • (ii) the other share were issued after June 18, 1987, and

• (d) the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all the liquidation entitlement is determinable solely by reference to the liquidation entitlement of another share of the capital stock of the corporation or of another corporation that controls the corporation that would not be a taxable preferred share if

  • [...]

  • (ii) the other share were issued after June 18, 1987, and

• (e) where

  • [...]

  • (ii) it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1,

  [...]

tax-indifferent investor

tax-indifferent investor , at any time, means a person or partnership that is at that time

• [...]

• (c) a trust resident in Canada (other than a specified mutual fund trust) if any of the interests as a beneficiary under the trust is not a fixed interest (as defined in subsection 251.2(1)) in the trust (in this definition referred to as a discretionary trust),

tax shelter

tax shelter  has the meaning assigned by subsection 237.1(1); (abri fiscal)

10/8 policy

10/8 policy  means a life insurance policy (other than an annuity) where

• (a) an amount is or may become

  • [...]

  • (ii) payable (within the meaning assigned by the definition amount payable in subsection 138(12)) under a policy loan (as defined in subsection 148(9)) made in accordance with the terms and conditions of the policy, and

• (b) either

  • [...]

  • (ii) the maximum amount of an investment account in respect of the policy is determined by reference to the amount of the borrowing or policy loan, as the case may be, described in paragraph (a); (police 10/8)

term preferred share

term preferred share  of a corporation (in this definition referred to as the issuing corporation) means a share of a class of the capital stock of the issuing corporation if the share was issued or acquired after June 28, 1982 and, at the time the share was issued or acquired, the existence of the issuing corporation was, or there was an arrangement under which it could be, limited or, in the case of a share issued after November 16, 1978 if

• (a) under the terms or conditions of the share, any agreement relating to the share or any modification of those terms or conditions or that agreement,

  • [...]

  • (ii) the issuing corporation or any other person or partnership is or may be required to redeem, acquire or cancel, in whole or in part, the share (unless the requirement to redeem, acquire or cancel the share arises by reason only of a right to convert or exchange the share) or to reduce its paid-up capital,

  • [...]

  • (iv) the share is convertible or exchangeable unless

    • (A) it is convertible into or exchangeable for

      • [...]

      • (II) a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share, or

      • (III) both a share described in subclause (I) and a right or warrant described in subclause (II), and

    • (B) all the consideration receivable for the share on the conversion or exchange is the share described in subclause (A)(I) or the right or warrant described in subclause (A)(II) or both, as the case may be, and, for the purposes of this clause, where a taxpayer may become entitled on the conversion or exchange of a share to receive any particular consideration (other than consideration described in any of subclauses (A)(I) to (A)(III)) in lieu of a fraction of a share, the particular consideration shall be deemed not to be consideration unless it may reasonably be considered that the particular consideration was receivable as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.1) or 258(3), or

• (b) the owner thereof acquired the share after October 23, 1979 and is

  • [...]

  • (ii) a corporation that is controlled by one or more corporations described in subparagraph (i),

  • (iii) a corporation that acquired the share after December 11, 1979 and is related to a corporation referred to in subparagraph (i) or (ii), or

  • (iv) a partnership or trust of which a corporation referred to in subparagraph (i) or (ii) or a person related thereto is a member or a beneficiary,

  [...]

[...]

• [...]

• (d) that was issued as a stock dividend

  • [...]

  • (ii) after April 21, 1980 on a share that was, at the time the stock dividend was paid, a share prescribed for the purposes of paragraph (f),

• (d.1) that is listed on a designated stock exchange in Canada and was issued before April 22, 1980 by

  • [...]

  • (ii) a corporation whose principal business is the lending of money or the purchasing of debt obligations or a combination thereof, or

  • (iii) an issuing corporation associated with a corporation described in subparagraph (i) or (ii),

• (e) for a period not exceeding ten years and, in the case of a share issued after November 12, 1981, for a period not exceeding five years, from the date of its issuance, which share was issued by a corporation resident in Canada,

  • (i) as part of a proposal to, or an arrangement with, its creditors that had been approved by a court under the Bankruptcy and Insolvency Act,

  • (ii) at a time when all or substantially all of its assets were under the control of a receiver, receiver-manager, sequestrator or trustee in bankruptcy, or

  • (iii) at a time when, by reason of financial difficulty, the issuing corporation or another corporation resident in Canada with which it does not deal at arm’s length was in default, or could reasonably be expected to default, on a debt obligation held by a person with whom the issuing corporation or the other corporation was dealing at arm’s length and the share was issued either wholly or in substantial part and either directly or indirectly in exchange or substitution for that obligation or a part thereof,

  [...]

• [...]

• (f.1) that is a taxable preferred share held by a specified financial institution that acquired the share

  • [...]

  • (ii) before 1989 pursuant to an agreement in writing entered into before December 16, 1987,

  [...]

[...]

• [...]

• (h) where

  • [...]

  • (ii) under the terms or conditions of

    [...]

  • [...]

  • (iv) at a particular time after October 23, 1979 and before November 13, 1981, a specified financial institution (or a partnership or trust of which a specified financial institution or a person related to the institution is a member or beneficiary) acquired a share that

    • [...]

    • (B) was issued to a person other than a corporation that was, at the time of issue,

      • [...]

      • (II) a corporation that was controlled by one or more corporations described in subclause (I) and, for the purpose of this subclause, one corporation is controlled by another corporation if more than 50% of its issued share capital (having full voting rights under all circumstances) belongs to the other corporation, to persons with whom the other corporation does not deal at arm’s length, or to the other corporation and persons with whom the other corporation does not deal at arm’s length,

    • (C) was acquired from a person that was, at the particular time, a person other than a corporation described in subclause (B)(I) or (II), and

  • (v) at any particular time after November 12, 1981

    • (A) in respect of

      • [...]

      • (II) a share issued after November 12, 1981 and before 1983 pursuant to an agreement in writing to do so made before November 13, 1981 (in this definition referred to as a “specified agreement”)

    [...]

    • (B) the redemption date of

      • [...]

      • (II) a share issued pursuant to a specified agreement

    [...]

  [...]

• (i) where the terms or conditions of a share of the capital stock of the issuing corporation are modified or established after June 28, 1982 and as a consequence thereof the issuing corporation, any person related thereto or any partnership or trust of which the issuing corporation or a person related thereto is a member or a beneficiary may reasonably be expected at any time to redeem, acquire or cancel, in whole or in part, the share or to reduce its paid-up capital, the share shall be deemed as from the date of the modification or as from the date of the establishment, as the case may be, to be a share described in paragraph (a),

• (i.1) where

  • [...]

  • (ii) it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.1), 138(6) or 258(3),

  [...]

• [...]

• (j) where a particular share of the capital stock of a corporation has been issued or its terms and conditions have been modified and it may reasonably be considered, having regard to all circumstances (including the rate of interest on any debt or the dividend provided on any term preferred share), that

  • [...]

  • (ii) one of the main purposes for the issue of the particular share or for the modification of its terms or conditions was to avoid a limitation provided by subsection 112(2.1) or 138(6) in respect of a deduction or to avoid or limit the application of subsection 258(3),

  [...]

testamentary trust

testamentary trust  has the meaning assigned by subsection 108(1); (fiducie testamentaire)

treaty-protected business

treaty-protected business  of a taxpayer at any time means a business in respect of which any income of the taxpayer for a period that includes that time would, because of a tax treaty with another country, be exempt from tax under Part I; (entreprise protégée par traité)

treaty-protected property

treaty-protected property  of a taxpayer at any time means property any income or gain from the disposition of which by the taxpayer at that time would, because of a tax treaty with another country, be exempt from tax under Part I; (bien protégé par traité)

trust

trust  has the meaning assigned by subsection 104(1) and, unless the context otherwise requires, includes an estate; (fiducie)

unused RRSP deduction room

unused RRSP deduction room  of a taxpayer at the end of a taxation year has the meaning assigned by subsection 146(1); (déductions inutilisées au titre des REER)

unused scientific research and experimental development tax credit

unused scientific research and experimental development tax credit  of a taxpayer for a taxation year has the meaning assigned by subsection 127.3(2); (partie inutilisée du crédit d’impôt pour des activités de recherche scientifique et de développement expérimental)

unused share-purchase tax credit

unused share-purchase tax credit  of a taxpayer for a taxation year has the meaning assigned by subsection 127.2(6); (partie inutilisée du crédit d’impôt à l’achat d’actions)

zero-emission passenger vehicle

zero-emission passenger vehicle , of a taxpayer, means an automobile of the taxpayer that is included in Class 54 of Schedule II to the Income Tax Regulations; (voiture de tourisme zéro émission)

zero-emission vehicle

zero-emission vehicle , of a taxpayer, means a motor vehicle that

• (a) is a plug-in hybrid that meets prescribed conditions or is fully

  • [...]

  • (ii) powered by hydrogen,

• [...]

• (c) does not meet any of the following conditions:

  • [...]

  • (ii) it is a vehicle in respect of which assistance has been paid by the Government of Canada under a prescribed program, and

  • (iii) if the vehicle was acquired before March 2, 2020, either

    • [...]

    • (B) it is a vehicle in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) by another person or partnership, and

• (d) would be an accelerated investment incentive property of the taxpayer if subsection 1104(4) of the Income Tax Regulations were read without its exclusions for property included in Class 54 or Class 55 of Schedule II to those Regulations. (véhicule zéro émission)

(1.1) A redemption, an acquisition or a cancellation, at any particular time after 1971 and before December 24, 1998, of a share or of a right to acquire a share (which share or which right, as the case may be, is referred to in this subsection as the “security”) of the capital stock of a corporation (referred to in this subsection as the “issuing corporation”) held by another corporation (referred to in this subsection as the “disposing corporation”) is not a disposition (within the meaning of the definition disposition in section 54 as that section read in its application to transactions and events that occurred at the particular time) of the security if

• (a) the redemption, acquisition or cancellation occurred as part of a merger or combination of two or more corporations (including the issuing corporation and the disposing corporation) to form one corporate entity (referred to in this subsection as the “new corporation”);

• (b) the merger or combination

  • (i) is an amalgamation (within the meaning assigned by subsection 87(1) as it read at the particular time) to which subsection 87(11) if in force, and as it read, at the particular time did not apply,

  • (ii) is an amalgamation (within the meaning assigned by subsection 87(1) as it read at the particular time) to which subsection 87(11) if in force, and as it read, at the particular time applies, if the issuing corporation and the disposing corporation are described by subsection 87(11) (if in force, and as it read, at the particular time) as the parent and the subsidiary, respectively,

  • [...]

  • (iv) occurred after November 12, 1981 and

    • [...]

    • (B) all of the following conditions are met:

      • [...]

      • (II) subsection 87(8.1), as it read in respect of the merger or combination, contained a subparagraph (c)(ii), and

      • (III) the merger or combination would be a foreign merger (within the meaning of subsection 87(8.1), as it read in respect of the merger or combination) if that subparagraph 87(8.1)(c)(ii) were read as follows:

        • “(ii) if, immediately after the merger, the new foreign corporation was controlled by another foreign corporation (in this subsection referred to as the “parent corporation”), shares of the capital stock of the parent corporation,”;

  [...]

• (c) either

  • [...]

  • (ii) in the case where the merger or combination is described by subparagraph (b)(iv), the disposing corporation received no consideration for the security other than property that was, immediately before the merger or combination, owned by the issuing corporation and that, on the merger or combination, became property of the new corporation.

Marginal note:Tax payable

(2) In this Act, the tax payable by a taxpayer under any Part of this Act by or under which provision is made for the assessment of tax means the tax payable by the taxpayer as fixed by assessment or reassessment subject to variation on objection or on appeal, if any, in accordance with the provisions of that Part.

(3) For the purposes of this Act, if property is subject to an institution or arrangement that is described by this subsection and that is governed by the laws of the Province of Quebec, the following rules apply in respect of the property:

• (a) if at any time property is subject to a usufruct, right of use or habitation, or substitution,

  • [...]

  • (ii) the property is deemed

    [...]

• (b) an arrangement (other than a partnership, a qualifying arrangement or an arrangement that is a trust determined without reference to this paragraph) is deemed to be a trust and property subject to rights and obligations under the arrangement is, if the arrangement is deemed by this paragraph to be a trust, deemed to be held in trust and not otherwise, where the arrangement

  • [...]

  • (ii) creates rights and obligations that are substantially similar to the rights and obligations under a trust (determined without reference to this subsection);

• (c) if the arrangement is a qualifying arrangement,

  • [...]

  • (ii) any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor, and

• (d) a person who has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in paragraph (a) or (b) is deemed to be beneficially interested in the trust; and

• (e) notwithstanding that a property is at any time subject to a servitude, the property is deemed to be beneficially owned by a person at that time if, at that time, the person has in relation to the property

  • [...]

  • (ii) a right as a lessee under an emphyteusis, or

[...]

Marginal note:Substituted property

(5) For the purposes of this Act, other than paragraph 98(1)(a),

[...]

[...]

(7) For the purposes of this Act,

• [...]

• (b) the remittance or payment of an amount

  • [...]

  • (ii) payable by a corporation,

  [...]

[...]

Marginal note:Compound interest

(11) Interest computed at a prescribed rate under any of subsections 129(2.1) and (2.2), 131(3.1) and (3.2), 132(2.1) and (2.2), 133(7.01) and (7.02), 159(7), 160.1(1), 161(1), (2) and (11), 161.1(5), 164(3) to (4), 181.8(1) and (2) (as those two subsections read in their application to the 1991 and earlier taxation years), 185(2), 187(2) and 189(7), section 190.23 (as it read in its application to the 1991 and earlier taxation years) and subsections 193(3), 195(3), 202(5) and 227(8.3), (9.2) and (9.3) of this Act and subsection 182(2) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952 (as that subsection read in its application to taxation years beginning before 1986) and subsection 191(2) of that Act (as that subsection read in its application to the 1984 and earlier taxation years) shall be compounded daily and, where interest is computed on an amount under any of those provisions and is unpaid or unapplied on the day it would, but for this subsection, have ceased to be computed under that provision, interest at the prescribed rate shall be computed and compounded daily on the unpaid or unapplied interest from that day to the day it is paid or applied and shall be paid or applied as would be the case if interest had continued to be computed under that provision after that day.

[...]

Marginal note:Interests in trusts and partnerships

(13) Where after November 12, 1981 a person has an interest in a trust or partnership, whether directly or indirectly through an interest in any other trust or partnership or in any manner whatever, the person shall, for the purposes of the definitions income bond, income debenture and term preferred share in subsection 248(1), paragraph (h) of the definition taxable preferred share in that subsection, subsections 84(4.2) and 84(4.3) and 112(2.6) and section 258, be deemed to be a beneficiary of the trust or a member of the partnership, as the case may be.

Marginal note:Related corporations

(14) For the purpose of paragraph (g) of the definition specified financial institution in subsection 248(1), where in the case of 2 or more corporations it can reasonably be considered, having regard to all the circumstances, that one of the main reasons for the separate existence of those corporations in a taxation year is to limit or avoid the application of subsection 112(2.1) or 112(2.2) or 138(6), the 2 or more corporations shall be deemed to be related to each other and to each other corporation to which any such corporation is related.

[...]

(16) For the purposes of this Act, other than this subsection and subsection 6(8), an amount claimed by a taxpayer as an input tax credit or rebate with respect to the goods and services tax in respect of a property or service is deemed to be assistance from a government in respect of the property or service that is received by the taxpayer

• (a) where the amount was claimed by the taxpayer as an input tax credit in a return under Part IX of the Excise Tax Act for a reporting period under that Act,

  • (i) at the particular time that is the earlier of the time that the goods and services tax in respect of the input tax credit was paid and the time that it became payable,

    • [...]

    • (B) if,

      • (I) the taxpayer’s threshold amount, determined in accordance with subsection 249(1) of the Excise Tax Act, is greater than $500,000 for the taxpayer’s fiscal year (within the meaning assigned by that Act) that includes the particular time, and

      • (II) the taxpayer claimed the input tax credit at least 120 days before the end of the normal reassessment period, as determined under subsection 152(3.1), for the taxpayer in respect of the taxation year that includes the particular time,

  • (ii) at the end of the reporting period, if

    • [...]

    • (B) the taxpayer’s threshold amount, determined in accordance with subsection 249(1) of the Excise Tax Act, is $500,000 or less for the fiscal year (within the meaning assigned by that Act) of the taxpayer that includes the particular time, and

(16.1) For the purpose of this Act, other than this subsection and subsection 6(8), an amount claimed by a taxpayer as an input tax refund or a rebate with respect to the Quebec sales tax in respect of a property or service is deemed to be assistance from a government in respect of the property or service that is received by the taxpayer

• (a) where the amount was claimed by the taxpayer as an input tax refund in a return under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, for a reporting period under that Act,

  • (i) at the particular time that is the earlier of the time that the Quebec sales tax in respect of the input tax refund was paid and the time that it became payable,

    • [...]

    • (B) if,

      • [...]

      • (II) the taxpayer claimed the input tax refund at least 120 days before the end of the normal reassessment period, as determined under subsection 152(3.1), for the taxpayer in respect of the taxation year that includes the particular time,

  • (ii) at the end of the reporting period, if

    [...]

Marginal note:Application of subsection (16) to certain vehicles and aircraft

(17) If the input tax credit of a taxpayer under Part IX of the Excise Tax Act in respect of a passenger vehicle, zero-emission passenger vehicle or aircraft is determined with reference to subsection 202(4) of that Act, subparagraphs (16)(a)(i) to (iii) are to be read as they apply in respect of the vehicle or aircraft, as the case may be, as follows:

• [...]

• (ii) if no such tax was considered for the purposes of determining the input tax credit to have become payable in the reporting period, at the end of the reporting period; or

(17.1) If the input tax refund of a taxpayer under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, in respect of a passenger vehicle, zero-emission passenger vehicle or aircraft is determined with reference to section 252 of that Act, subparagraphs (16.1)(a)(i) to (iii) are to be read as they apply in respect of the vehicle or aircraft, as the case may be, as follows:

• [...]

• (ii) if no such tax was considered for the purposes of determining the input tax refund to have become payable in the reporting period, at the end of the reporting period; or

Marginal note:Input tax credit on assessment

(17.2) An amount in respect of an input tax credit that is deemed by subsection 296(5) of the Excise Tax Act to have been claimed in a return or application filed under Part IX of that Act is deemed to have been so claimed for the reporting period under that Act that includes the time when the Minister makes the assessment referred to in that subsection.

[...]

Marginal note:Goods and services tax — repayment of input tax credit

(18) For the purposes of this Act, where an amount is added at a particular time in determining the net tax of a taxpayer under Part IX of the Excise Tax Act in respect of an input tax credit relating to property or a service that had been previously deducted in determining the net tax of the taxpayer, that amount shall be deemed to be assistance repaid at the particular time in respect of the property or service pursuant to a legal obligation to repay all or part of that assistance.

Marginal note:Repayment of Quebec input tax refund

(18.1) For the purposes of this Act, if an amount is added at a particular time in determining the net tax of a taxpayer under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, in respect of an input tax refund relating to property or service that had been previously deducted in determining the net tax of the taxpayer, that amount is deemed to be assistance repaid at the particular time in respect of the property or service under a legal obligation to repay all or part of that assistance.

[...]

(25) For the purposes of this Act,

• [...]

• (b) except for the purpose of this paragraph, a particular person or partnership is deemed to be beneficially interested in a particular trust at a particular time where

  • [...]

  • (ii) because of the terms or conditions of the particular trust or any arrangement in respect of the particular trust at the particular time, the particular person or partnership might, because of the exercise of any discretion by any person or partnership, become beneficially interested in the particular trust at the particular time or at a later time, and

  • (iii) at or before the particular time, either

    • (A) the particular trust has acquired property, directly or indirectly in any manner whatever, from

      • [...]

      • (II) another person with whom the particular person or partnership, or a member of the particular partnership, does not deal at arm’s length,

      • (III) a person or partnership with whom the other person referred to in subclause 248(25)(b)(iii)(A)(II) does not deal at arm’s length,

Marginal note:Trust-to-trust transfers

(25.1) If, at any time, a particular trust transfers property to another trust (other than a trust governed by a registered retirement savings plan or by a registered retirement income fund) in circumstances to which paragraph (f) of the definition disposition in subsection (1) applies, without affecting the personal liabilities under this Act of the trustees of either trust or the application of subsection 104(5.8),

• [...]

• (b) for greater certainty, if, as a result of a transaction or event, the property was deemed to be taxable Canadian property of the particular trust by any of paragraphs 51(1)(f), 85(1)(i) and 85.1(1)(a), subsection 85.1(5), paragraph 85.1(8)(b), subsections 87(4) and (5) and paragraphs 97(2)(c) and 107(3.1)(d), the property is also deemed to be, at any time that is within 60 months after the transaction or event, taxable Canadian property of the other trust.

Marginal note:Trusts to ensure obligations fulfilled

(25.2) Except for the purpose of this subsection, where at any time property is transferred to a trust in circumstances to which paragraph (k) of the definition disposition in subsection (1) applies, the trust is deemed to deal with the property as agent for the transferor throughout the period that begins at the time of the transfer and ends at the time of the first change after that time in the beneficial ownership of the property.

(25.3) The cost to a taxpayer of a particular unit of a trust is deemed to be equal to the amount described in paragraph (a) where

• [...]

• (c) either

  • [...]

  • (ii) the particular unit is not capital property and subparagraph 53(2)(h)(i.1) does not apply in respect of the amount described in paragraph (a) but would so apply if that subparagraph were read without reference to clauses 53(2)(h)(i.1)(A) and (B).

(25.4) If at a particular time a taxpayer’s capital interest in a trust includes a right to enforce payment of an amount by the trust, the amount shall be added at the particular time to the cost otherwise determined to the taxpayer of the capital interest where

• [...]

• (c) if the right to enforce payment of the amount had been satisfied by a payment to the taxpayer by the trust, there would have been no disposition of that right for the purposes of this Act because of the application of paragraph (i) of the definition disposition in subsection (1).

[...]

Marginal note:Parts of debt obligations

(27) For greater certainty,

• (a) unless the context requires otherwise, an obligation issued by a debtor includes any part of a larger obligation that was issued by the debtor;

• (b) the principal amount of that part shall be considered to be the portion of the principal amount of that larger obligation that relates to that part; and

• (c) the amount for which that part was issued shall be considered to be the portion of the amount for which that larger obligation was issued that relates to that part.

(28) Unless a contrary intention is evident, no provision of this Act shall be read or construed

• [...]

• (b) to permit the deduction, either directly or indirectly, in computing a taxpayer’s tax payable under any Part of this Act for a taxation year of any amount to the extent that the amount has already been directly or indirectly deducted in computing such tax payable for the year or any preceding taxation year; or

• (c) to consider an amount to have been paid on account of a taxpayer’s tax payable under any Part of this Act for a taxation year to the extent that the amount has already been considered to have been paid on account of such tax payable for the year or any preceding taxation year.

[...]

(32) The amount of the advantage in respect of a gift or monetary contribution by a taxpayer is the total of

• (a) the total of all amounts, other than an amount referred to in paragraph (b), each of which is the value, at the time the gift or monetary contribution is made, of any property, service, compensation, use or other benefit that the taxpayer, or a person or partnership who does not deal at arm’s length with the taxpayer, has received, obtained or enjoyed, or is entitled, either immediately or in the future and either absolutely or contingently, to receive, obtain, or enjoy

  • [...]

  • (ii) that is in gratitude for the gift or monetary contribution, or

[...]

(34) If at any time in a taxation year a taxpayer has paid an amount (in this subsection referred to as the “repaid amount”) on account of the principal amount of an indebtedness which was, before that time, an unpaid principal amount that was a limited-recourse debt referred to in subsection 143.2(6.1) (in this subsection referred to as the “former limited-recourse debt”) in respect of a gift or monetary contribution (in this subsection referred to as the “original gift” or “original monetary contribution”, respectively, as the case may be) of the taxpayer (otherwise than by way of an assignment or transfer of a guarantee, security or similar indemnity or covenant, or by way of a payment in respect of which any taxpayer referred to in subsection 143.2(6.1) has incurred an indebtedness that would be a limited-recourse debt referred to in that subsection if that indebtedness were in respect of a gift or monetary contribution made at the time that that indebtedness was incurred), the following rules apply:

• (a) if the former limited-recourse debt is in respect of the original gift, for the purposes of sections 110.1 and 118.1, the taxpayer is deemed to have made in the taxation year a gift to a qualified donee, the eligible amount of which deemed gift is the amount, if any, by which

  [...]

  • (ii) the total of

    [...]

• (b) if the former limited-recourse debt is in respect of the original monetary contribution, for the purposes of subsection 127(3), the taxpayer is deemed to have made in the taxation year a monetary contribution referred to in that subsection, the eligible amount of which is the amount, if any, by which

  [...]

  • (ii) the total of

    [...]

Marginal note:Deemed fair market value

(35) For the purposes of subsection (31), paragraph 69(1)(b) and subsections 110.1(2.1) and (3) and 118.1(5.4), (6) and (13.2), the fair market value of a property that is the subject of a gift made by a taxpayer to a qualified donee is deemed to be the lesser of the fair market value of the property otherwise determined and the cost or, in the case of capital property, the adjusted cost base or, in the case of a life insurance policy in respect of which the taxpayer is a policyholder, the adjusted cost basis (as defined in subsection 148(9)), of the property to the taxpayer immediately before the gift is made if

• (a) the taxpayer acquired the property under a gifting arrangement that is a tax shelter as defined in subsection 237.1(1); or

• (b) except where the gift is made as a consequence of the taxpayer’s death,

  • [...]

  • (ii) the taxpayer acquired the property less than 10 years before the day that the gift is made and it is reasonable to conclude that, at the time the taxpayer acquired the property, one of the main reasons for the acquisition was to make a gift of the property to a qualified donee.

Marginal note:Non-arm’s length transaction

(36) If a taxpayer acquired a property, otherwise than by reason of the death of an individual, that is the subject of a gift to which subsection (35) applies because of subparagraph (35)(b)(i) or (ii) and the property was, at any time within the 3-year or 10-year period, respectively, that ends when the gift was made, acquired by a person or partnership with whom the taxpayer does not deal at arm’s length, for the purpose of applying subsection (35) to the taxpayer, the cost, or in the case of capital property, the adjusted cost base, of the property to the taxpayer immediately before the gift is made is deemed to be equal to the lowest amount that is the cost, or in the case of capital property, the adjusted cost base, to the taxpayer or any of those persons or partnerships immediately before the property was disposed of by that person or partnership.

(37) Subsection (35) does not apply to a gift

• [...]

• (c) of an object referred to in subparagraph 39(1)(a)(i.1), other than an object acquired under a gifting arrangement (as defined in subsection 237.1(1)) that is a tax shelter;

• [...]

• (e) of a share of the capital stock of a corporation if

  • [...]

  • (ii) immediately before the gift, the corporation was controlled by the donor, a person related to the donor or a group of persons each of whom is related to the donor, and

• (f) by a corporation of property if

  • (i) the property was acquired by the corporation in circumstances to which subsection 85(1) or (2) applied,

  • (ii) immediately before the gift, the shareholder from whom the corporation acquired the property controlled the corporation or was related to a person or each member of a group of persons that controlled the corporation, and

• (g) of a property that was acquired in circumstances where subsection 70(6) or (9) or 73(1), (3) or (4) applied, unless subsection (36) would have applied if this subsection were read without reference to this paragraph.

[...]

Marginal note:Substantive gift

(39) If a taxpayer disposes of a property (in this subsection referred to as the substantive gift) that is a capital property of the taxpayer, to a recipient that is a registered party, a registered association or a candidate, as those terms are defined in the Canada Elections Act, or that is a qualified donee, subsection (35) would have applied in respect of the substantive gift if it had been the subject of a gift by the taxpayer to a qualified donee, and all or a part of the proceeds of disposition of the substantive gift are (or are substituted, directly or indirectly in any manner whatever, for) property that is the subject of a gift or monetary contribution by the taxpayer to the recipient or any person dealing not at arm’s length with the recipient, the following rules apply:

[...]

[...]

Marginal note:Synthetic equity arrangements — disaggregation

(42) For the purposes of the definition synthetic equity arrangement in subsection (1), paragraphs (c) and (d) of the definition dividend rental arrangement in subsection (1) and subsections 112(2.31), (2.32) and (10), an arrangement that reflects the fair market value of more than one type of identical share (as defined in subsection 112(10)) is considered to be a separate arrangement with respect to each type of identical share the value of which the arrangement reflects.