Income Tax Regulations

8901.1 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.