Foreign Ownership of Land Regulations (SOR/79-416)

5 (1) An ineligible person or foreign controlled corporation may take or acquire, directly or indirectly, an interest in controlled land if as a result of that taking or acquisition the ineligible person or foreign controlled corporation will own or beneficially own interests in controlled land consisting of not more than two parcels containing, in the aggregate, not more than 20 acres.

(2) Subject to subsection (3), an ineligible person or foreign controlled corporation that owns or beneficially owns, as a tenant in common, an interest in a parcel of controlled land is considered to own or beneficially own an interest in that area of controlled land equal to the product obtained by multiplying the area of the parcel by the extent, expressed in a percentage, of the ineligible person’s or foreign controlled corporation’s interest in the parcel of controlled land.

(3) No ineligible person or foreign controlled corporation shall as a tenant in common take or acquire, directly or indirectly, an interest in a parcel of controlled land that is greater than 20 acres in area if as a result of that taking or acquisition more than five ineligible persons or foreign controlled corporations will own or beneficially own, as tenants in common, that interest in the parcel of controlled land.

(4) Foreign controlled corporations that are associated with one another as determined under section 256 of the Income Tax Act (Canada) shall be considered as a single corporation for the purposes of this section, but in determining whether and at what time foreign controlled corporations are associated for the purposes of this section, subsection 256(1) of the Income Tax Act (Canada) shall be read as though the words “at any time in the year” were struck out.