Income Tax Regulations

8901.1 (1) For the purposes of paragraph (f) of the definition eligible entity in subsection 125.7(1) of the Act, the following entities are prescribed:

• (a) a corporation that meets the following conditions:

  • (i) it is described in paragraph 149(1)(d.5) of the Act,

  • (ii) not less than 90% of the shares, or the capital, of the corporation are owned by one or more Aboriginal governments (as defined in subsection 241(10) of the Act) — or similar Indigenous governing bodies — described in paragraph 149(1)(c) of the Act, and

  • (iii) it carries on a business;

• (b) a corporation that meets the following conditions:

  • (i) it is described in paragraph 149(1)(d.6) of the Act,

  • (ii) all of the shares (except directors’ qualifying shares), or the capital, of the corporation are owned by one or more of

    • (A) an Aboriginal government (as defined in subsection 241(10) of the Act) — or a similar Indigenous governing body — described in paragraph 149(1)(c) of the Act, or

    • (B) a corporation described in this paragraph or paragraph (a), and

  • (iii) it carries on a business;

• (c) a partnership, each member of which is

  • (i) an eligible entity, or

  • (ii) an Aboriginal government (as defined in subsection 241(10) of the Act) — or a similar Indigenous governing body — described in paragraph 149(1)(c) of the Act;

• (d) a partnership, in respect of a qualifying period, if 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 a person or partnership other than an eligible entity, and

  B

  is the total fair market value of all interests in the partnership;

• (e) a person described in paragraph 149(1)(g) or (h) of the Act; and

• (f) a person or partnership that operates a private school or private college.

(2) For the purposes of subsection 125.7(1) of the Act, qualifying tourism or hospitality entity, for a qualifying period, means an eligible entity that meets the following conditions:

• (a) the entity has a prior year revenue decline greater than or equal to 40%; and

• (b) the total of all amounts, each of which is the eligible entity’s qualifying revenue for the prior reference period for any of the first qualifying period to the thirteenth qualifying period (but including only one of the tenth qualifying period or the eleventh qualifying period), was earned primarily from carrying on one or more of the following activities:

  • (i) operating or managing a facility providing short-term lodging, such as a hotel, a motel, a cottage, a bed and breakfast or a youth hostel,

  • (ii) preparing and serving meals, snacks and beverages made to order for immediate consumption on or off the premises,

    • (A) such as a restaurant, a food truck, a cafeteria, a caterer, a coffee shop, a food concession, a bar, a pub or a nightclub, and

    • (B) for greater certainty, not including the operation of a facility primarily engaged in retailing food or beverage products, such as a supermarket or a convenience store,

  • (iii) operating a travel agency or as a tour operator, including:

    • (A) acting as an agent for tour operators, transportation companies and short-term lodging establishments in selling travel, tour and accommodation services, or

    • (B) arranging, assembling and marketing tours,

  • (iv) organizing, promoting, hosting, supporting or participating in events that meet the artistic or cultural interests of their patrons, including live performances or exhibits intended for public viewing,

  • (v) preserving and exhibiting objects, sites and natural wonders of historical, cultural or educational value, such as the operation of a museum, a historic and heritage site, a zoo, a botanical garden or a nature park,

  • (vi) organizing, promoting or supporting scenic and sightseeing tours, such as sightseeing or dinner cruises, steam train excursions, horse-drawn sightseeing rides, air-boat rides, hot-air balloon rides or charter fishing services,

  • (vii) providing charter bus services, if

    • (A) the buses do not operate on fixed routes and schedules, and

    • (B) the entire vehicle is rented, rather than individual seats,

  • (viii) operating or managing an amusement or theme park, which includes

    • (A) operating a variety of attractions, such as mechanical rides, water rides, games, shows or theme exhibits, and

    • (B) leasing space on a concession basis for these operations,

  • (ix) operating or managing a facility or providing a service that enables patrons to participate in recreational activities,

    • (A) including

      • (I) fitness and recreational sports centres,

      • (II) downhill and cross-country ski/snowboard areas, and equipment such as ski lifts and tows (including revenues from equipment rental services and ski/snowboard instruction services provided at the area),

      • (III) the operation of docking and storage facilities for pleasure-craft owners, with or without related activities, such as retailing fuel and marine supplies, boat repair and maintenance and rental services,

      • (IV) the operation of recreation and amusement facilities and services including establishments primarily engaged in maintaining non-gambling coin-operated amusement devices, in businesses operated by others, and

      • (V) other amusement activities, such as amateur sports clubs, teams or leagues, archery or shooting, ballroom dancing, river rafting, curling clubs, mini golf and bowling, and

    • (B) excluding

      • (I) golf, golf instruction and the ownership or operation of a facility that is a golf course, a golf driving range, or a golf clubhouse,

      • (II) country clubs, and

      • (III) professional sports clubs, teams or leagues or facilities used primarily by such organizations,

  • (x) operating or managing serviced or unserviced sites to accommodate campers and their equipment for tents, tent trailers, travel trailers and recreational vehicles, excluding mobile home sites,

  • (xi) operating or managing an overnight recreational camp, such as a children’s camp, a family vacation camp or an outdoor adventure retreat,

  • (xii) operating or managing a hunting camp or a fishing camp,

  • (xiii) operating or managing a duty-free retail store at a land border crossing where the only exit route is to the United States,

  • (xiv) operating or managing a facility that is primarily engaged in exhibiting motion pictures, such as a cinema or a drive-in theatre,

  • (xv) operating or managing an amusement arcade, such as a family fun centre, an indoor play area, a pinball arcade or a video game arcade,

  • (xvi) operating a facility allowing passengers to board and leave a cruise ship,

  • (xvii) operating or managing an airport, including renting hangar space and providing baggage handling, cargo handling and aircraft parking services,

  • (xviii) operating or managing a casino,

  • (xix) promoting a destination or region in Canada for the purpose of attracting tourism,

  • (xx) organizing, planning, promoting, hosting or supporting:

    • (A) conventions, trade shows or festivals, or

    • (B) weddings, parties or similar events, and

  • (xxi) promoting the interests of the members of an industry organization or association, if the members are primarily engaged in activities described in any of subparagraphs (i) to (xx).