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  1. Income Tax Act - R.S.C., 1985, c. 1 (5th Supp.) (Section 122.1)
    Marginal note:Definitions
    •  (1) The following definitions apply in this section and in sections 104 and 122.

      gross REIT revenue

      gross REIT revenue , of an entity for a taxation year, means the amount, if any, by which the total of all amounts received or receivable in the year (depending on the method regularly followed by the entity in computing the entity’s income) by the entity exceeds the total of all amounts each of which is the cost to the entity of a property disposed of in the year. (revenu brut de FPI)

      qualified REIT property

      qualified REIT property , of a trust at any time, means a property that, at that time, is held by the trust and is

      • [...]

      • (b) a security of a subject entity all or substantially all of the gross REIT revenue of which, for its taxation year that ends in the trust’s taxation year that includes that time, is from maintaining, improving, leasing or managing real or immovable properties that are capital properties of the trust or of an entity of which the trust holds a share or an interest, including real or immovable properties that the trust, or an entity of which the trust holds a share or an interest, holds together with one or more other persons or partnerships;

      real estate investment trust

      real estate investment trust , for a taxation year, means a trust that is resident in Canada throughout the taxation year, if

      • (a) at each time in the taxation year the total fair market value at that time of all non-portfolio properties that are qualified REIT properties held by the trust is at least 90% of the total fair market value at that time of all non-portfolio properties held by the trust;

      • (b) not less than 90% of the trust’s gross REIT revenue for the taxation year is from one or more of the following:

        [...]

      • (c) not less than 75% of the trust’s gross REIT revenue for the taxation year is from one or more of the following:

        [...]

    • (1.1) Subsection (1.2) applies to an entity for a taxation year in respect of an amount and another entity (referred to in this subsection and subsection (1.2) as the “parent entity”, “specified amount” and “source entity”, respectively), if

      • [...]

      • (b) the specified amount is included in computing the parent entity’s gross REIT revenue for the taxation year in respect of a security of the source entity held by the parent entity; and

      • (c) in the case of a source entity that is a subject entity described in paragraph (b) of the definition qualified REIT property in subsection (1) in respect of the parent entity at each time during the taxation year at which the parent entity holds securities of the source entity, the specified amount cannot reasonably be considered to be derived from the source entity’s gross REIT revenue from maintaining, improving, leasing or managing real or immovable properties that are capital properties of the parent entity or of an entity of which the parent entity holds a share or an interest, including real or immovable properties that the parent entity, or an entity of which the parent entity holds a share or an interest, holds together with one or more other persons or partnerships.

    • Marginal note:Character preservation rule

      (1.2) If this subsection applies to a parent entity for a taxation year in respect of a specified amount and a source entity, then for the purposes of the definition real estate investment trust in subsection (1), to the extent that the specified amount can reasonably be considered to be derived from gross REIT revenue of the source entity having a particular character, the specified amount is deemed to be gross REIT revenue of the parent entity having the same character and not having any other character.

    • (1.3) For the purposes of the definition real estate investment trust in subsection (1),

      • (a) if an amount is included in gross REIT revenue of a trust for a taxation year and it results from an agreement that can reasonably be considered to have been made by the trust to reduce its risk from fluctuations in interest rates in respect of debt incurred by the trust to acquire or refinance real or immovable property, the amount is deemed to have the same character as gross REIT revenue in respect of the real or immovable property and not any other character; and

      • (b) if a real or immovable property is situated in a country other than Canada and an amount included in gross REIT revenue of a trust for a taxation year

        [...]

        the amount is deemed to have the same character as gross REIT revenue in respect of the real or immovable property and not any other character.

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