• (iii) where the particular time is after March 31, 1977, an amount equal to the paid-up capital in respect of that class of shares at the particular time, computed without reference to the provisions of this Act except subsections 51(3) and 66.3(2) and (4), sections 84.1 and 84.2, subsections 85(2.1), 85.1(2.1) and (8), 86(2.1), 87(3) and (9), paragraph 128.1(1)(c.3), subsections 128.1(2) and (3), 138(11.7), 139.1(6) and (7), 192(4.1) and 194(4.1) and sections 212.1 and 212.3,

Marginal note:Shares held by partnership

• 93.1 (1) For the purposes of determining whether a non-resident corporation is a foreign affiliate of a corporation resident in Canada for the purposes of subsections (2) and 20(12), sections 93 and 113, paragraphs 128.1(1)(c.3) and (d), section 212.3 and subsection 219.1(2), (and any regulations made for the purposes of those provisions), section 95 (to the extent that it is applied for the purposes of those provisions) and section 126, if, based on the assumptions contained in paragraph 96(1)(c), at any time shares of a class of the capital stock of a corporation are owned by a partnership or are deemed under this subsection to be owned by a partnership, then each member of the partnership is deemed to own at that time the number of those shares that is equal to the proportion of all those shares that

• Marginal note:Rules if election by partners

  (2) Notwithstanding any other provision of this Act other than subsections (3) and 13(21.2), where a taxpayer at any time disposes of any property that is a capital property, Canadian resource property, foreign resource property, eligible capital property or inventory of the taxpayer to a partnership that immediately after that time is a Canadian partnership of which the taxpayer is a member, if the taxpayer and all the other members of the partnership jointly so elect in prescribed form within the time referred to in subsection 96(4),

• Marginal note:Election not available — section 88

  (3) Subsection (2) does not apply to a disposition of a property by a taxpayer to a particular partnership if

  • (a) as part of a transaction or event or series of transactions or events that includes the disposition

    • (i) control of a taxable Canadian corporation (in this subsection referred to as the “subsidiary”) is acquired by another taxable Canadian corporation (in this paragraph referred to as the “parent”),

    • (ii) the subsidiary is wound up under subsection 88(1) or amalgamated with one or more other corporations under subsection 87(11), and

    • (iii) the parent makes a designation under paragraph 88(1)(d) in respect of an interest in a partnership;

  • (b) the disposition occurs after the acquisition of control of the subsidiary;

  • (c) the property

    • (i) is referred to in clauses (A) to (C) of the description of B in subparagraph 88(1)(d)(ii.1), or

    • (ii) is an interest in a partnership that holds, directly or indirectly through one or more partnerships, property referred to in clauses (A) to (C) of the description of B in subparagraph 88(1)(d)(ii.1); and

  • (d) the subsidiary is the taxpayer or has, before the disposition of the property, directly or indirectly in any manner whatever, an interest in the taxpayer.

Marginal note:Disposition of interest in partnership

• 100. (1) If, as part of a transaction or event or series of transactions or events, a taxpayer disposes of an interest in a partnership and an interest in the partnership is acquired by a person or partnership described in any of paragraphs (1.1)(a) to (d), then notwithstanding paragraph 38(a), the taxpayer’s taxable capital gain for a taxation year from the disposition of the interest is deemed to be the total of

  • (a) 1/2 of such portion of the taxpayer’s capital gain for the year from the disposition as may reasonably be regarded as attributable to increases in the value of any partnership property of the partnership that is capital property other than depreciable property held directly by the partnership or held indirectly by the partnership through one or more other partnerships, and

• Marginal note:Acquisition by certain persons or partnerships

  (1.1) Subject to subsection (1.2), subsection (1) applies in respect of a disposition of a partnership interest by a taxpayer if the interest is acquired by

  • (a) a person exempt from tax under section 149;

  • (b) a non-resident person;

  • (c) another partnership to the extent that the interest can reasonably be considered to be held, at the time of its acquisition by the other partnership, indirectly through one or more partnerships, by a person that is

    • (i) exempt from tax under section 149,

    • (ii) a non-resident, or

    • (iii) a trust resident in Canada (other than a mutual fund trust) if

      • (A) an interest as a beneficiary (in this subsection and subsection (1.2) having the meaning assigned by subsection 108(1)) under the trust is held, directly or indirectly through one or more other partnerships, by a person that is exempt from tax under section 149 or that is a trust (other than a mutual fund trust), and

      • (B) the total fair market value of the interests as beneficiaries under the trust held by persons referred to in clause (A) exceeds 10% of the fair market value of all the interests as beneficiaries under the trust; or

  • (d) a trust resident in Canada (other than a mutual fund trust) to the extent that the trust can reasonably be considered to have a beneficiary that is

    • (i) exempt from tax under section 149,

    • (ii) a partnership, if

      • (A) an interest in the partnership is held, whether directly or indirectly through one or more other partnerships, by one or more persons that are exempt from tax under section 149 or are trusts (other than mutual fund trusts), and

      • (B) the total fair market value of the interests held by persons referred to in clause (A) exceeds 10% of the fair market value of all the interests in the partnership, or

    • (iii) another trust (other than a mutual fund trust), if

      • (A) one or more beneficiaries under the other trust are a person exempt from tax under section 149, a partnership or a trust (other than a mutual fund trust), and

      • (B) the total fair market value of the interests as beneficiaries under the other trust held by the beneficiaries referred to in clause (A) exceeds 10% of the fair market value of all the interests as beneficiaries under the other trust.

• Marginal note:De minimis

  (1.2) Subsection (1) does not apply to a taxpayer’s disposition of a partnership interest to a partnership or trust described in paragraph (1.1)(c) or (d) — other than a trust under which the amount of the income or capital to be distributed at any time in respect of any interest as a beneficiary under the trust depends on the exercise by any person or partnership of, or the failure by any person or partnership to exercise, any discretionary power — if the extent to which subsection (1) would, but for this subsection, apply to the taxpayer’s disposition of the interest because of subsection (1.1) does not exceed 10% of the taxpayer’s interest.

• Marginal note:Exception — non-resident person

  (1.3) Subsection (1) does not apply in respect of a disposition of an interest in a partnership by a taxpayer to a person referred to in paragraph (1.1)(b) if

  • (a) property of the partnership is used, immediately before and immediately after the acquisition of the interest by the non-resident person, in carrying on business through one or more permanent establishments in Canada; and

  • (b) the total fair market value of the property referred to in paragraph (a) equals at least 90% of the total fair market value of all property of the partnership.

• Marginal note:Anti-avoidance — dilution

  (1.4) Subsection (1.5) applies in respect of a taxpayer’s interest in a partnership if

  • (a) it is reasonable to conclude that one of the purposes of a dilution, reduction or alteration of the interest was to avoid the application of subsection (1) in respect of the interest; and

  • (b) as part of a transaction or event or series of transactions or events that includes the dilution, reduction or alteration, there is

    • (i) an acquisition of an interest in the partnership by a person or partnership described in any of paragraphs (1.1)(a) to (d), or

    • (ii) an increase in, or alteration of, an interest in the partnership held by a person or partnership described in any of paragraphs (1.1)(a) to (d).

• Marginal note:Deemed gain — dilution

  (1.5) If this subsection applies in respect of a particular interest in a partnership of a taxpayer, then for the purposes of subsection (1),

  • (a) the taxpayer is deemed to have disposed of an interest in the partnership at the time of the dilution, reduction or alteration;

  • (b) the taxpayer is deemed to have a capital gain from the disposition equal to the amount by which the fair market value of the particular interest immediately before the dilution, reduction or alteration exceeds its fair market value immediately thereafter; and

  • (c) the person or partnership referred to in paragraph (1.4)(b) is deemed to have acquired an interest in the partnership as part of the transaction or event or series of transactions or events that includes the disposition referred to in paragraph (a).

• (a) an amateur athlete trust, an employee life and health trust, an employee trust, a trust described in paragraph 149(1)(o.4) or a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a foreign retirement arrangement, a pooled registered pension plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan or a TFSA,

• (C) to make a contribution to a pooled registered pension plan, registered pension plan or deferred profit sharing plan, or

• (i) a payment in respect of a life annuity out of or under a superannuation or pension plan (other than a pooled registered pension plan) or a specified pension plan,

• (iii.2) an amount included under section 147.5,

• (c) an amount equal to that proportion of the specified amount for the year that the number of days

• (d) the specified percentage for the year of the individual’s income for the year from that employment that is reasonably attributable to duties performed on the days referred to in paragraph (c)

• Marginal note:Specified amount

  (1.01) For the purposes of paragraph (1)(c), the specified amount for a taxation year of an individual is

  • (a) for the 2013 to 2015 taxation years, the amount determined by the formula

    [$80,000 × A/(A + B)] + [C × B/(A + B)]

    where

    A

    is the individual’s income described in paragraph (1)(d) for the taxation year that is earned in connection with a contract that was committed to in writing before March 29, 2012 by a specified employer of the individual,

    B

    is the individual’s income described in paragraph (1)(d) for the taxation year, other than income included in the description of A, and

    C

    is

    • (i) for the 2013 taxation year, $60,000,

    • (ii) for the 2014 taxation year, $40,000, and

    • (iii) for the 2015 taxation year, $20,000; and

  • (b) for the 2016 and subsequent taxation years, nil.

• Marginal note:Specified percentage

  (1.02) For the purposes of paragraph (1)(d), the specified percentage for a taxation year of an individual is

  • (a) for the 2013 to 2015 taxation years, the amount determined by the formula

    [80% × A/(A + B)] + [C × B/(A + B)]

    where

    A

    is the value of A in subsection (1.01),

    B

    is the value of B in subsection (1.01), and

    C

    is

    • (i) for the 2013 taxation year, 60%,

    • (ii) for the 2014 taxation year, 40%, and

    • (iii) for the 2015 taxation year, 20%; and

  • (b) for the 2016 and subsequent taxation years, 0%.

• (i) for or on behalf of a person or partnership entitled to a deduction in respect of the amount because of subparagraph 37(1)(a)(i.01) or (i.1), and

• (b) an amount in respect of an expenditure of a current nature (within the meaning assigned by paragraph 37(8)(d)) of a taxpayer, other than a prescribed amount, payable by a Canadian government or municipality or other Canadian public authority or by a person exempt, because of section 149, from tax under this Part on all or part of the person’s taxable income for scientific research and experimental development to be performed for it or on its behalf;

“first term shared-use-equipment”

« matériel à vocations multiples de première période »

“first term shared-use-equipment”, of a taxpayer, means depreciable property of the taxpayer (other than prescribed depreciable property of a taxpayer) acquired before 2014 that is used by the taxpayer, during its operating time in the period (in this subsection and subsection (11.1) referred to as the “first period”) beginning at the time the property was acquired by the taxpayer and ending at the end of the taxpayer’s first taxation year ending at least 12 months after that time, primarily for the prosecution of scientific research and experimental development in Canada, but does not include general purpose office equipment or furniture;

• (a) the total of all amounts each of which is the specified percentage of the capital cost to the taxpayer of qualified property or qualified resource property acquired by the taxpayer in the year,

• (a.1) 15% of the amount by which the taxpayer’s SR&ED qualified expenditure pool at the end of the year exceeds the total of all amounts each of which is the super-allowance benefit amount for the year in respect of the taxpayer in respect of a province,

• (a.3) if the taxpayer is a taxable Canadian corporation, the total of

  • (i) the specified percentage of the portion of the taxpayer’s pre-production mining expenditure described in subparagraph (a)(i) of the definition “pre-production mining expenditure”, and

  • (ii) the specified percentage of the portion of the taxpayer’s pre-production mining expenditure described in subparagraph (a)(ii) of the definition “pre-production mining expenditure”,

• (a) is a Canadian exploration expense and would be

  • (i) described in paragraph (f) of the definition “Canadian exploration expense” in subsection 66.1(6) if the expression “mineral resource” in that paragraph were defined to mean a mineral deposit from which the principal mineral to be extracted is diamond, a base or precious metal deposit, or a mineral deposit from which the principal mineral to be extracted is an industrial mineral that, when refined, results in a base or precious metal, or

  • (ii) described in paragraph (g), and not in paragraph (f), of the definition “Canadian exploration expense” in subsection 66.1(6) if the expression “mineral resource” in paragraph (g) were defined to mean a mineral deposit from which the principal mineral to be extracted is diamond, a base or precious metal deposit, or a mineral deposit from which the principal mineral to be extracted is an industrial mineral that, when refined, results in a base or precious metal, and

• (a) an amount that is an expenditure incurred in the year by the taxpayer in respect of scientific research and experimental development and is

  • (i) an expenditure described in subparagraph 37(1)(a)(i),

  • (ii) 80% of an expenditure described in any of subparagraphs 37(1)(a)(i.01) to (iii),

  • (iii) an expenditure for first term shared-use-equipment or second term shared-use-equipment, or

  • (iv) an expenditure described in subparagraph 37(1)(b)(i), or

• (b) a prescribed proxy amount of the taxpayer for the year,

“qualified property”

« bien admissible »

“qualified property”, of a taxpayer, means property (other than a qualified resource property) that is

• (b.1) prescribed energy generation and conservation property acquired by the taxpayer after March 28, 2012,

• (iv) storing grain, or

• (v) harvesting peat,

• (c.1) property (other than property described in paragraph (b.1)) to be used by the taxpayer in Canada primarily for the purpose of producing or processing electrical energy or steam in a prescribed area, if

• (d) to be leased by the taxpayer to a lessee (other than a person exempt from tax under this Part because of section 149) who can reasonably be expected to use the property in Canada primarily for any of the purposes referred to in paragraph (c), but this paragraph does not apply to property that is prescribed for the purposes of paragraph (b) or (b.1) unless

• (a.1) in respect of a qualified resource property acquired by a taxpayer primarily for use in Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, the Gaspé Peninsula or the prescribed offshore region, and that is acquired

  • (i) after March 28, 2012 and before 2014, 10%,

  • (ii) after 2013 and before 2017, 10% if the property

    • (A) is acquired by the taxpayer under a written agreement of purchase and sale entered into by the taxpayer before March 29, 2012, or

    • (B) is acquired as part of a phase of a project and

      • (I) the construction of the phase was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

      • (II) the engineering and design work for the construction of the phase, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), and

  • (iii) in any other case,

    • (A) in 2014 and 2015, 5%, and

    • (B) after 2015, 0%,

• (j) in respect of a pre-production mining expenditure of the taxpayer that is described in subparagraph (a)(i) of the definition “pre-production mining expenditure” and that is incurred

  • (i) before 2013, 10%,

  • (ii) in 2013, 5%, and

  • (iii) after 2013, 0%, and

• (k) in respect of a pre-production mining expenditure of the taxpayer that is described in subparagraph (a)(ii) of the definition “pre-production mining expenditure” and that is incurred

  • (i) before 2014, 10%,

  • (ii) after 2013 and before 2016, 10% if the expenditure is incurred

    • (A) under a written agreement entered into by the taxpayer before March 29, 2012, or

    • (B) as part of the development of a new mine and

      • (I) the construction of the mine was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

      • (II) the engineering and design work for the construction of the mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), and

  • (iii) in any other case,

    • (A) in 2014, 7%,

    • (B) in 2015, 4%, and

    • (C) after 2015, 0%;

“phase”

« phase »

“phase”, of a project, means a discrete expansion in the extraction, processing or production capacity of the project of a taxpayer beyond a capacity level that was attained before March 29, 2012 and which expansion in capacity was the taxpayer’s demonstrated intention immediately before that date;

“qualified resource property”

« bien minier admissible »

“qualified resource property”, of a taxpayer, means property that is a prescribed building or prescribed machinery and equipment, that is acquired by the taxpayer after March 28, 2012, that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer and that is

• (a) to be used by the taxpayer in Canada primarily for the purpose of

  • (i) operating an oil or gas well or extracting petroleum or natural gas from a natural accumulation of petroleum or natural gas,

  • (ii) extracting minerals from a mineral resource,

  • (iii) processing

    • (A) ore (other than iron ore or tar sands ore) from a mineral resource to any stage that is not beyond the prime metal stage or its equivalent,

    • (B) iron ore from a mineral resource to any stage that is not beyond the pellet stage or its equivalent, or

    • (C) tar sands ore from a mineral resource to any stage that is not beyond the crude oil stage or its equivalent,

  • (iv) producing industrial minerals,

  • (v) processing heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent,

  • (vi) Canadian field processing,

  • (vii) exploring or drilling for petroleum or natural gas, or

  • (viii) prospecting or exploring for or developing a mineral resource, or

• (b) to be leased by the taxpayer to a lessee (other than a person exempt from tax under this Part because of section 149) who can reasonably be expected to use the property in Canada primarily for any of the purposes referred to in paragraph (a), but this paragraph does not apply to prescribed machinery and equipment unless

  • (i) the property is leased in the ordinary course of carrying on a business in Canada by a corporation whose principal business is any of, or a combination of, leasing property, lending money, purchasing conditional sales contracts, accounts receivable, bills of sale, chattel mortgages or hypothecary claims on movables, bills of exchange or other obligations representing all or part of the sale price of merchandise or services,

  • (ii) the property is manufactured and leased in the ordinary course of carrying on business in Canada by a corporation whose principal business is manufacturing property that it sells or leases, or

  • (iii) the property is leased in the ordinary course of carrying on business in Canada by a corporation the principal business of which is selling or servicing property of that type,

and, for the purpose of this definition, “Canada” includes the offshore region prescribed for the purpose of the definition “specified percentage”;

• Marginal note:Additions to investment tax credit

  (10.1) For the purposes of paragraph (e) of the definition “investment tax credit” in subsection (9), if a corporation was throughout a taxation year a Canadian-controlled private corporation, there shall be added in computing the corporation’s investment tax credit at the end of the year the amount that is 20% of the least of

• Marginal note:Interpretation

  (11) For the purposes of the definitions “qualified property” and “qualified resource property” in subsection (9),

• (b) for greater certainty, the purposes referred to in paragraph (c) of the definition “qualified property” and paragraph (a) of the definition “qualified resource property” in subsection (9) do not include

• (a) qualified property, qualified resource property and first term shared-use-equipment are deemed not to have been acquired, and

• (a) qualified property and qualified resource property are deemed not to have been acquired, and

• (b) expenditures included in an eligible child care space expenditure are deemed not to have been incurred

• (a) the amount of an expenditure (other than a prescribed proxy amount or an amount described in paragraph (b)) incurred by a taxpayer in a taxation year is deemed to be the amount of the expenditure determined under subsection (11.6); and

• Marginal note:Adjustments to qualified expenditures

  (11.5) For the purposes of the definition “qualified expenditure” in subsection (9), the amount of an expenditure (other than a prescribed proxy amount) incurred by a taxpayer in a taxation year is deemed to be the amount of the expenditure determined under subsection (11.6).

the amount of the expenditure incurred by the taxpayer for the service or property and the cost to the taxpayer of the property are deemed to be

• (i) the cost to the taxpayer of the property otherwise determined, and

• Marginal note:Certain non-arm’s length transfers

  (33) Subsections (27) to (29), (34) and (35) do not apply to a taxpayer or partnership (in this subsection referred to as the “transferor”) that disposes of a property to a person or partnership (in this subsection and subsections (34) and (35) referred to as the “purchaser”), that does not deal at arm’s length with the transferor, if the purchaser acquired the property in circumstances where the cost of the property to the purchaser would have been an expenditure of the purchaser described in subclause 37(8)(a)(ii)(A)(III) or (B)(III) (as those subclauses read on March 29, 2012) but for subparagraph 2902(b)(iii) of the Income Tax Regulations.