VIII, s. 8, c. 21, s. 111995, c. 3, s. 6, c. 21, ss. 5 and 481996, c. 21. s. 51997, c. 25, s. 41998, c. 19, ss. 3 and 792001, c. 17, ss. 9, 2012003, c. 28, s. 22006, c. 4, s. 1612007, c. 35, ss. 11, 1022008, c. 28, s. 22010, c. 25, s. 52011, c. 24, s. 22012, c. 31, s. 72013, c. 33, s. 2, c. 34, ss. 56, 95, 178, 427, c. 40, s. 82014, c. 39, s. 62016, c. 12, s. 62017, c. 20, s. 3, c. 33, s. 52018, c. 27, s. 32022, c. 5, s. 272022, c. 10, s. 1582022, c. 10, s. 1732022, c. 19, s. 3
18.1(1)The definitions in this subsection apply in this section.matchable expenditurematchable expenditureof a taxpayer means the amount of an expenditure that is made by the taxpayer to(a)acquire a right to receive production,(b)fulfil a covenant or obligation arising in circumstances in which it is reasonable to conclude that a relationship exists between the covenant or obligation and a right to receive production, or(c)preserve or protect a right to receive production,but does not include an amount for which a deduction is provided under section 20 in computing the taxpayer’s income. (dépense à rattacher)right to receive productionright to receive productionmeans a right under which a taxpayer is entitled, either immediately or in the future and either absolutely or contingently, to receive an amount all or a portion of which is computed by reference to use of property, production, revenue, profit, cash flow, commodity price, cost or value of property or any other similar criterion or by reference to dividends paid or payable to shareholders of any class of shares where the amount is in respect of another taxpayer’s activity, property or business but such a right does not include an income interest in a trust, a Canadian resource property or a foreign resource property. (droit aux produits)tax benefittax benefitmeans a reduction, avoidance or deferral of tax or other amount payable under this Act or an increase in a refund of tax or other amount under this Act. (avantage fiscal)tax sheltertax sheltermeans a property that would be a tax shelter (as defined in subsection 237.1(1)) if(a)the cost of a right to receive production were the total of all amounts each of which is a matchable expenditure to which the right relates; and(b)subsections 18.1(2) to 18.1(13) did not apply for the purpose of computing an amount, or in the case of a partnership a loss, represented to be deductible. (abri fiscal)taxpayertaxpayerincludes a partnership. (contribuable)Marginal note:Limitation on the deductibility of matchable expenditure(2)In computing a taxpayer’s income from a business or property for a taxation year, no amount of a matchable expenditure may be deducted except as provided by subsection 18.1(3).Marginal note:Deduction of matchable expenditure(3)If a taxpayer’s matchable expenditure would, but for subsection 18.1(2) and this subsection, be deductible in computing the taxpayer’s income, there may be deducted in respect of the matchable expenditure in computing the taxpayer’s income for a taxation year the amount that is determined under subsection 18.1(4) for the year in respect of the expenditure.Marginal note:Amount of deduction(4)For the purpose of subsection 18.1(3), the amount determined under this subsection for a taxation year in respect of a taxpayer’s matchable expenditure is the amount, if any, that is the least of(a)the total of(i)the lesser of(A)1/5 of the matchable expenditure, and(B)the amount determined by the formula(A/B) × CwhereAis the number of months that are in the year and after the day on which the right to receive production to which the matchable expenditure relates is acquired,Bis the lesser of 240 and the number of months that are in the period that begins on the day on which the right to receive production to which the matchable expenditure relates is acquired and that ends on the day the right is to terminate, andCis the amount of the matchable expenditure, and(ii)the amount, if any, by which the amount determined under this paragraph for the preceding taxation year in respect of the matchable expenditure exceeds the amount of the matchable expenditure deductible in computing the taxpayer’s income for that preceding year,(b)the total of(i)all amounts each of which is included in computing the taxpayer’s income for the year (other than any portion of such amount that is the subject of a reserve claimed by the taxpayer for the year under this Act) in respect of the right to receive production to which the matchable expenditure relates, and(ii)the amount by which the amount determined under this paragraph for the preceding taxation year in respect of the matchable expenditure exceeds the amount of the matchable expenditure deductible in computing the taxpayer’s income for that preceding year, and(c)the amount, if any, by which(i)the total of all amounts each of which is an amount of the matchable expenditure that would, but for this section, have been deductible in computing the taxpayer’s income for the year or a preceding taxation yearexceeds(ii)the total of all amounts each of which is an amount of the matchable expenditure deductible under subsection 18.1(3) in computing the taxpayer’s income for a preceding taxation year.Marginal note:Special rules(5)For the purpose of this section,(a)where a taxpayer’s matchable expenditure is made before the day on which the related right to receive production is acquired by the taxpayer, the expenditure is deemed to have been made on that day;(b)where a taxpayer has one or more rights to renew a particular right to receive production to which a matchable expenditure relates for one or more additional terms, after the term that includes the time at which the particular right was acquired, the particular right is deemed to terminate on the latest day on which the latest possible such term could terminate if all rights to renew the particular right were exercised;(c)where a taxpayer has 2 or more rights to receive production that can reasonably be considered to be related to each other, the rights are deemed to be one right; and(d)where the term of a taxpayer’s right to receive production is for an indeterminate period, the right is deemed to terminate 240 months after it is acquired.Marginal note:Proceeds of disposition considered income(6)Where in a taxation year a taxpayer disposes of all or part of a right to receive production to which a matchable expenditure relates, the proceeds of the disposition shall be included in computing the taxpayer’s income for the year.Marginal note:Arm’s length disposition(7)Subject to subsections 18.1(8) to 18.1(10), where in a taxation year a taxpayer disposes (otherwise than in a disposition to which subsection 87(1) or 88(1) applies) of all of the taxpayer’s right to receive production to which a matchable expenditure (other than an expenditure no portion of which would, if this section were read without reference to this subsection, be deductible under subsection 18.1(3) in computing the taxpayer’s income) relates, or the taxpayer’s right expires, the amount deductible in respect of the expenditure under subsection 18.1(3) in computing the taxpayer’s income for the year is deemed to be the amount, if any, determined under paragraph 18.1(4)(c) for the year in respect of the expenditure.Marginal note:Non-arm’s length disposition(8)Subsection 18.1(10) applies where(a)a taxpayer’s particular right to receive production to which a matchable expenditure (other than an expenditure no portion of which would, if this section were read without reference to subsections 18.1(7) and 18.1(10), be deductible under subsection 18.1(3) in computing the taxpayer’s income) relates has expired or the taxpayer has disposed of all of the right (otherwise than in a disposition to which subsection 87(1) or 88(1) applies);(b)during the period that begins 30 days before and ends 30 days after the disposition or expiry, the taxpayer or a person affiliated, or who does not deal at arm’s length, with the taxpayer acquires a right to receive production (in this subsection and subsection 18.1(10) referred to as the “substituted property”) that is, or is identical to, the particular right; and(c)at the end of the period, the taxpayer or a person affiliated, or who does not deal at arm’s length, with the taxpayer owns the substituted property.Marginal note:Special case(9)Subsection 18.1(10) applies where(a)a taxpayer’s particular right to receive production to which a matchable expenditure (other than an expenditure no portion of which would, if this section were read without reference to subsections 18.1(7) and 18.1(10), be deductible under subsection 18.1(3) in computing the taxpayer’s income) relates has expired or the taxpayer has disposed of all of the right (otherwise than in a disposition to which subsection 87(1) or 88(1) applies); and(b)during the period that begins at the time of the disposition or expiry and ends 30 days after that time, a taxpayer that had an interest, directly or indirectly, in the right has another interest, directly or indirectly, in another right to receive production, which other interest is a tax shelter or a tax shelter investment (as defined by section 143.2).Marginal note:Amount of deduction if non-arm’s length disposition(10)Where this subsection applies because of subsection 18.1(8) or 18.1(9) to a disposition or expiry in a taxation year or a preceding taxation year of a taxpayer’s right to receive production to which a matchable expenditure relates,(a)the amount deductible under subsection 18.1(3) in respect of the expenditure in computing the taxpayer’s income for a taxation year that ends at or after the disposition or expiry of the right is the least of the amounts determined under subsection 18.1(4) for the year in respect of the expenditure; and(b)the least of the amounts determined under subsection 18.1(4) in respect of the expenditure for a taxation year is deemed to be the amount, if any, determined under paragraph 18.1(4)(c) in respect of the expenditure for the year where the year includes the time that is immediately before the first time, after the disposition or expiry,(i)at which the right would, if it were owned by the taxpayer, be deemed by section 128.1 or subsection 149(10) to have been disposed of by the taxpayer,(ii)that is immediately before the taxpayer is subject to a loss restriction event,(iii)at which winding-up of the taxpayer begins (other than a winding-up to which subsection 88(1) applies), if the taxpayer is a corporation,(iv)if subsection 18.1(8) applies, at which a 30-day period begins throughout which neither the taxpayer nor a person affiliated, or who does not deal at arm’s length, with the taxpayer owns(A)the substituted property, or(B)a property that is identical to the substituted property and that was acquired after the day that is 31 days before the period began, or(v)if subsection 18.1(9) applies, at which a 30-day period begins throughout which no taxpayer who had an interest, directly or indirectly, in the right has an interest, directly or indirectly, in another right to receive production if one or more of those direct or indirect interests in the other right is a tax shelter or tax shelter investment (as defined by section 143.2).Marginal note:Partnerships(11)For the purpose of paragraph 18.1(10)(b), where a partnership otherwise ceases to exist at any time after a disposition or expiry referred to in subsection 18.1(10), the partnership is deemed not to have ceased to exist, and each taxpayer who was a member of the partnership immediately before the partnership would, but for this subsection, have ceased to exist is deemed to remain a member of the partnership until the time that is immediately after the first of the times described in subparagraphs 18.1(10)(b)(i) to 18.1(10)(b)(v).Marginal note:Identical property(12)For the purposes of subsections (8) and (10), a right to acquire a particular right to receive production (other than a right, as security only, derived from a mortgage, hypothec, agreement of sale or similar obligation) is deemed to be a right to receive production that is identical to the particular right.Marginal note:Application of section 143.2(13)For the purpose of applying section 143.2 to an amount that would, if this section were read without reference to this subsection, be a matchable expenditure any portion of the cost of which is deductible under subsection 18.1(3), the expenditure is deemed to be a tax shelter investment and that section shall be read without reference to subparagraph 143.2(6)(b)(ii).Marginal note:Debt obligations(14)Where the rate of return on a taxpayer’s right to receive production to which a matchable expenditure (other than an expenditure no portion of which would, if this section were read without reference to this subsection, be deductible under subsection 18.1(3) in computing the taxpayer’s income) relates is reasonably certain at the time the taxpayer acquires the right,(a)the right is, for the purposes of subsection 12(9) and Part LXX of theIncome Tax Regulations, deemed to be a debt obligation in respect of which no interest is stipulated to be payable in respect of its principal amount and the obligation is deemed to be satisfied at the time the right terminates for an amount equal to the total of the return on the obligation and the amount that would otherwise be the matchable expenditure that is related to the right; and(b)notwithstanding subsection 18.1(3), no amount may be deducted in computing the taxpayer’s income in respect of any matchable expenditure that relates to the right.Marginal note:Non-application — risks ceded between insurers(15)Subsections (2) to (13) do not apply to a taxpayer’s matchable expenditure in respect of a right to receive production if(a)the expenditure is in respect of commissions, or other expenses, related to the issuance of an insurance policy for which all or a portion of a risk has been ceded to the taxpayer; and(b)the taxpayer and the person to whom the expenditure is made, or is to be made, are both insurers who are subject to the supervision of(i)the Superintendent of Financial Institutions, if the taxpayer or that person, as the case may be, is an insurer who is required by law to report to the Superintendent of Financial Institutions, or(ii)the Superintendent of Insurance, or other similar officer or authority, of the province under whose laws the insurer is incorporated, in any other case.Marginal note:Non-application — no rights, tax benefits or shelters(16)Subsections (2) to (13) do not apply to a taxpayer’s matchable expenditure in respect of a right to receive production if(a)no portion of the matchable expenditure can reasonably be considered to have been paid to another taxpayer, or to a person or partnership with whom the other taxpayer does not deal at arm’s length, to acquire the right from the other taxpayer;(b)no portion of the matchable expenditure can reasonably be considered to relate to a tax shelter or a tax shelter investment (within the meaning assigned by subsection 143.2(1)); and(c)none of the main purposes for making the matchable expenditure can reasonably be considered to have been to obtain a tax benefit for the taxpayer, a person or partnership with whom the taxpayer does not deal at arm’s length, or a person or partnership that holds, directly or indirectly, an interest in the taxpayer.Marginal note:Revenue exception(17)Paragraph (4)(a) does not apply in determining the amount for a taxation year that may be deducted in respect of a taxpayer’s matchable expenditure in respect of a right to receive production if(a)before the end of the taxation year in which the matchable expenditure is made, the total of all amounts each of which is included in computing the taxpayer’s income for the year (other than any portion of any of those amounts that is the subject of a reserve claimed by the taxpayer for the year under this Act) in respect of the right to receive production that relates to the matchable expenditure exceeds 80% of the matchable expenditure; and(b)no portion of the matchable expenditure can reasonably be considered to have been paid to another taxpayer, or to a person or partnership with whom the other taxpayer does not deal at arm’s length, to acquire the right from the other taxpayer.
(a)acquire a right to receive production,(b)fulfil a covenant or obligation arising in circumstances in which it is reasonable to conclude that a relationship exists between the covenant or obligation and a right to receive production, or(c)preserve or protect a right to receive production,
(a)the cost of a right to receive production were the total of all amounts each of which is a matchable expenditure to which the right relates; and(b)subsections 18.1(2) to 18.1(13) did not apply for the purpose of computing an amount, or in the case of a partnership a loss, represented to be deductible. (abri fiscal)
(a)the total of(i)the lesser of(A)1/5 of the matchable expenditure, and(B)the amount determined by the formula(A/B) × CwhereAis the number of months that are in the year and after the day on which the right to receive production to which the matchable expenditure relates is acquired,Bis the lesser of 240 and the number of months that are in the period that begins on the day on which the right to receive production to which the matchable expenditure relates is acquired and that ends on the day the right is to terminate, andCis the amount of the matchable expenditure, and(ii)the amount, if any, by which the amount determined under this paragraph for the preceding taxation year in respect of the matchable expenditure exceeds the amount of the matchable expenditure deductible in computing the taxpayer’s income for that preceding year,(b)the total of(i)all amounts each of which is included in computing the taxpayer’s income for the year (other than any portion of such amount that is the subject of a reserve claimed by the taxpayer for the year under this Act) in respect of the right to receive production to which the matchable expenditure relates, and(ii)the amount by which the amount determined under this paragraph for the preceding taxation year in respect of the matchable expenditure exceeds the amount of the matchable expenditure deductible in computing the taxpayer’s income for that preceding year, and(c)the amount, if any, by which(i)the total of all amounts each of which is an amount of the matchable expenditure that would, but for this section, have been deductible in computing the taxpayer’s income for the year or a preceding taxation yearexceeds(ii)the total of all amounts each of which is an amount of the matchable expenditure deductible under subsection 18.1(3) in computing the taxpayer’s income for a preceding taxation year.
(i)the lesser of(A)1/5 of the matchable expenditure, and(B)the amount determined by the formula(A/B) × CwhereAis the number of months that are in the year and after the day on which the right to receive production to which the matchable expenditure relates is acquired,Bis the lesser of 240 and the number of months that are in the period that begins on the day on which the right to receive production to which the matchable expenditure relates is acquired and that ends on the day the right is to terminate, andCis the amount of the matchable expenditure, and(ii)the amount, if any, by which the amount determined under this paragraph for the preceding taxation year in respect of the matchable expenditure exceeds the amount of the matchable expenditure deductible in computing the taxpayer’s income for that preceding year,
(A)1/5 of the matchable expenditure, and(B)the amount determined by the formula(A/B) × CwhereAis the number of months that are in the year and after the day on which the right to receive production to which the matchable expenditure relates is acquired,Bis the lesser of 240 and the number of months that are in the period that begins on the day on which the right to receive production to which the matchable expenditure relates is acquired and that ends on the day the right is to terminate, andCis the amount of the matchable expenditure, and
(i)all amounts each of which is included in computing the taxpayer’s income for the year (other than any portion of such amount that is the subject of a reserve claimed by the taxpayer for the year under this Act) in respect of the right to receive production to which the matchable expenditure relates, and(ii)the amount by which the amount determined under this paragraph for the preceding taxation year in respect of the matchable expenditure exceeds the amount of the matchable expenditure deductible in computing the taxpayer’s income for that preceding year, and
(i)the total of all amounts each of which is an amount of the matchable expenditure that would, but for this section, have been deductible in computing the taxpayer’s income for the year or a preceding taxation year
(ii)the total of all amounts each of which is an amount of the matchable expenditure deductible under subsection 18.1(3) in computing the taxpayer’s income for a preceding taxation year.
(a)where a taxpayer’s matchable expenditure is made before the day on which the related right to receive production is acquired by the taxpayer, the expenditure is deemed to have been made on that day;(b)where a taxpayer has one or more rights to renew a particular right to receive production to which a matchable expenditure relates for one or more additional terms, after the term that includes the time at which the particular right was acquired, the particular right is deemed to terminate on the latest day on which the latest possible such term could terminate if all rights to renew the particular right were exercised;(c)where a taxpayer has 2 or more rights to receive production that can reasonably be considered to be related to each other, the rights are deemed to be one right; and(d)where the term of a taxpayer’s right to receive production is for an indeterminate period, the right is deemed to terminate 240 months after it is acquired.
(a)a taxpayer’s particular right to receive production to which a matchable expenditure (other than an expenditure no portion of which would, if this section were read without reference to subsections 18.1(7) and 18.1(10), be deductible under subsection 18.1(3) in computing the taxpayer’s income) relates has expired or the taxpayer has disposed of all of the right (otherwise than in a disposition to which subsection 87(1) or 88(1) applies);(b)during the period that begins 30 days before and ends 30 days after the disposition or expiry, the taxpayer or a person affiliated, or who does not deal at arm’s length, with the taxpayer acquires a right to receive production (in this subsection and subsection 18.1(10) referred to as the “substituted property”) that is, or is identical to, the particular right; and(c)at the end of the period, the taxpayer or a person affiliated, or who does not deal at arm’s length, with the taxpayer owns the substituted property.
(a)a taxpayer’s particular right to receive production to which a matchable expenditure (other than an expenditure no portion of which would, if this section were read without reference to subsections 18.1(7) and 18.1(10), be deductible under subsection 18.1(3) in computing the taxpayer’s income) relates has expired or the taxpayer has disposed of all of the right (otherwise than in a disposition to which subsection 87(1) or 88(1) applies); and(b)during the period that begins at the time of the disposition or expiry and ends 30 days after that time, a taxpayer that had an interest, directly or indirectly, in the right has another interest, directly or indirectly, in another right to receive production, which other interest is a tax shelter or a tax shelter investment (as defined by section 143.2).
(a)the amount deductible under subsection 18.1(3) in respect of the expenditure in computing the taxpayer’s income for a taxation year that ends at or after the disposition or expiry of the right is the least of the amounts determined under subsection 18.1(4) for the year in respect of the expenditure; and(b)the least of the amounts determined under subsection 18.1(4) in respect of the expenditure for a taxation year is deemed to be the amount, if any, determined under paragraph 18.1(4)(c) in respect of the expenditure for the year where the year includes the time that is immediately before the first time, after the disposition or expiry,(i)at which the right would, if it were owned by the taxpayer, be deemed by section 128.1 or subsection 149(10) to have been disposed of by the taxpayer,(ii)that is immediately before the taxpayer is subject to a loss restriction event,(iii)at which winding-up of the taxpayer begins (other than a winding-up to which subsection 88(1) applies), if the taxpayer is a corporation,(iv)if subsection 18.1(8) applies, at which a 30-day period begins throughout which neither the taxpayer nor a person affiliated, or who does not deal at arm’s length, with the taxpayer owns(A)the substituted property, or(B)a property that is identical to the substituted property and that was acquired after the day that is 31 days before the period began, or(v)if subsection 18.1(9) applies, at which a 30-day period begins throughout which no taxpayer who had an interest, directly or indirectly, in the right has an interest, directly or indirectly, in another right to receive production if one or more of those direct or indirect interests in the other right is a tax shelter or tax shelter investment (as defined by section 143.2).
(i)at which the right would, if it were owned by the taxpayer, be deemed by section 128.1 or subsection 149(10) to have been disposed of by the taxpayer,(ii)that is immediately before the taxpayer is subject to a loss restriction event,(iii)at which winding-up of the taxpayer begins (other than a winding-up to which subsection 88(1) applies), if the taxpayer is a corporation,(iv)if subsection 18.1(8) applies, at which a 30-day period begins throughout which neither the taxpayer nor a person affiliated, or who does not deal at arm’s length, with the taxpayer owns(A)the substituted property, or(B)a property that is identical to the substituted property and that was acquired after the day that is 31 days before the period began, or(v)if subsection 18.1(9) applies, at which a 30-day period begins throughout which no taxpayer who had an interest, directly or indirectly, in the right has an interest, directly or indirectly, in another right to receive production if one or more of those direct or indirect interests in the other right is a tax shelter or tax shelter investment (as defined by section 143.2).
(A)the substituted property, or(B)a property that is identical to the substituted property and that was acquired after the day that is 31 days before the period began, or
(a)the right is, for the purposes of subsection 12(9) and Part LXX of theIncome Tax Regulations, deemed to be a debt obligation in respect of which no interest is stipulated to be payable in respect of its principal amount and the obligation is deemed to be satisfied at the time the right terminates for an amount equal to the total of the return on the obligation and the amount that would otherwise be the matchable expenditure that is related to the right; and(b)notwithstanding subsection 18.1(3), no amount may be deducted in computing the taxpayer’s income in respect of any matchable expenditure that relates to the right.
(a)the expenditure is in respect of commissions, or other expenses, related to the issuance of an insurance policy for which all or a portion of a risk has been ceded to the taxpayer; and(b)the taxpayer and the person to whom the expenditure is made, or is to be made, are both insurers who are subject to the supervision of(i)the Superintendent of Financial Institutions, if the taxpayer or that person, as the case may be, is an insurer who is required by law to report to the Superintendent of Financial Institutions, or(ii)the Superintendent of Insurance, or other similar officer or authority, of the province under whose laws the insurer is incorporated, in any other case.
(i)the Superintendent of Financial Institutions, if the taxpayer or that person, as the case may be, is an insurer who is required by law to report to the Superintendent of Financial Institutions, or(ii)the Superintendent of Insurance, or other similar officer or authority, of the province under whose laws the insurer is incorporated, in any other case.
(a)no portion of the matchable expenditure can reasonably be considered to have been paid to another taxpayer, or to a person or partnership with whom the other taxpayer does not deal at arm’s length, to acquire the right from the other taxpayer;(b)no portion of the matchable expenditure can reasonably be considered to relate to a tax shelter or a tax shelter investment (within the meaning assigned by subsection 143.2(1)); and(c)none of the main purposes for making the matchable expenditure can reasonably be considered to have been to obtain a tax benefit for the taxpayer, a person or partnership with whom the taxpayer does not deal at arm’s length, or a person or partnership that holds, directly or indirectly, an interest in the taxpayer.
(a)before the end of the taxation year in which the matchable expenditure is made, the total of all amounts each of which is included in computing the taxpayer’s income for the year (other than any portion of any of those amounts that is the subject of a reserve claimed by the taxpayer for the year under this Act) in respect of the right to receive production that relates to the matchable expenditure exceeds 80% of the matchable expenditure; and(b)no portion of the matchable expenditure can reasonably be considered to have been paid to another taxpayer, or to a person or partnership with whom the other taxpayer does not deal at arm’s length, to acquire the right from the other taxpayer.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1998, c. 19, s. 802001, c. 17, ss. 10, 202(E)2013, c. 34, ss. 96(F), 179, c. 40, s. 9
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2007, c. 35, s. 122009, c. 2, s. 6
18.3(1)The following definitions apply in this section.entityentityhas the same meaning as in subsection 122.1(1). (entité)equity valueequity valuehas the same meaning as in subsection 122.1(1). (valeur des capitaux propres)real estate investment trustreal estate investment trusthas the same meaning as in subsection 122.1(1). (fiducie de placement immobilier)securitysecurity, of an entity, means(a)a liability of the entity;(b)if the entity is a corporation,(i)a share of the capital stock of the corporation, and(ii)a right to control in any manner whatever the voting rights of a share of the capital stock of the corporation if it can reasonably be concluded that one of the reasons that a person or partnership holds the right to control is to avoid the application of subsection (3) or 12.6(3);(c)if the entity is a trust, an income or a capital interest in the trust; and(d)if the entity is a partnership, an interest as a member of the partnership. (titre)stapled securitystapled security, of a particular entity at any time, means a particular security of the particular entity if at that time(a)another security (referred to in this section as the “reference security”)(i)is or may be required to be transferred together or concurrently with the particular security as a term or condition of the particular security, the reference security, or an agreement or arrangement to which the particular entity (or if the reference security is a security of another entity, the other entity) is a party, or(ii)is listed or traded with the particular security on a stock exchange or other public market under a single trading symbol;(b)the particular security or the reference security is listed or traded on a stock exchange or other public market; and(c)any of the following applies:(i)the reference security and the particular security are securities of the particular entity and the particular entity is a corporation, SIFT partnership or SIFT trust,(ii)the reference security is a security of another entity, one of the particular entity or the other entity is a subsidiary of the other, and the particular entity or the other entity is a corporation, SIFT partnership or SIFT trust, or(iii)the reference security is a security of another entity and the particular entity or the other entity is a real estate investment trust or a subsidiary of a real estate investment trust. (titre agrafé)subsidiarysubsidiary, of a particular entity at any time, means(a)an entity in which the particular entity holds at that time securities that have a total fair market value greater than 10% of the equity value of the entity; and(b)an entity that at that time is a subsidiary of an entity that is a subsidiary of the particular entity. (filiale)transition periodtransition period, of an entity, means(a)if one or more securities of the entity would have been stapled securities of the entity on October 31, 2006 and July 19, 2011 had the definitionstapled securityin this subsection come into force on October 31, 2006, the period that begins on July 20, 2011 and ends on the earliest of(i)January 1, 2016,(ii)the first day after July 20, 2011 on which any of those securities is materially altered, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011;(b)if paragraph (a) does not apply to the entity and one or more securities of the entity would have been stapled securities of the entity on July 19, 2011 had the definitionstapled securityin this subsection come into force on July 19, 2011, the period that begins on July 20, 2011 and ends on the earliest of(i)July 20, 2012,(ii)the first day after July 20, 2011 on which any of those securities is materially altered, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011; and(c)in any other case, if the entity is a subsidiary of another entity on July 20, 2011 and the other entity has a transition period, the period that begins on July 20, 2011 and ends on the earliest of(i)the day on which the other entity’s transition period ends,(ii)the first day after July 20, 2011 on which the entity ceases to be a subsidiary of the other entity, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011. (période de transition)Marginal note:Property representing security(2)For the purpose of determining whether a particular security of an entity is a stapled security, if a receipt or similar property (referred to in this subsection as the “receipt”) represents all or a portion of the particular security and the receipt would be described in paragraphs (a) and (b) of the definitionstapled securityin subsection (1) if it were a security of the entity, then(a)the particular security is deemed to be described in those paragraphs; and(b)a security that would be a reference security in respect of the receipt is deemed to be a reference security in respect of the particular security.Marginal note:Amounts not deductible(3)Notwithstanding any other provision of this Act, in computing the income of a particular entity for a taxation year from a business or property, no deduction may be made in respect of an amount(a)that is paid or payable after July 19, 2011, unless the amount is paid or payable in respect of the entity’s transition period; and(b)that is(i)interest paid or payable on a liability of the particular entity that is a stapled security, unless each reference security in respect of the stapled security is a liability, or(ii)if a security of the particular entity, a subsidiary of the particular entity or an entity of which the particular entity is a subsidiary is a reference security in respect of a stapled security of a real estate investment trust or a subsidiary of a real estate investment trust, an amount paid or payable to(A)the real estate investment trust,(B)a subsidiary of the real estate investment trust, or(C)any person or partnership on condition that any person or partnership pays or makes payable an amount to the real estate investment trust or a subsidiary of the real estate investment trust.
(a)a liability of the entity;(b)if the entity is a corporation,(i)a share of the capital stock of the corporation, and(ii)a right to control in any manner whatever the voting rights of a share of the capital stock of the corporation if it can reasonably be concluded that one of the reasons that a person or partnership holds the right to control is to avoid the application of subsection (3) or 12.6(3);(c)if the entity is a trust, an income or a capital interest in the trust; and(d)if the entity is a partnership, an interest as a member of the partnership. (titre)
(i)a share of the capital stock of the corporation, and(ii)a right to control in any manner whatever the voting rights of a share of the capital stock of the corporation if it can reasonably be concluded that one of the reasons that a person or partnership holds the right to control is to avoid the application of subsection (3) or 12.6(3);
(a)another security (referred to in this section as the “reference security”)(i)is or may be required to be transferred together or concurrently with the particular security as a term or condition of the particular security, the reference security, or an agreement or arrangement to which the particular entity (or if the reference security is a security of another entity, the other entity) is a party, or(ii)is listed or traded with the particular security on a stock exchange or other public market under a single trading symbol;(b)the particular security or the reference security is listed or traded on a stock exchange or other public market; and(c)any of the following applies:(i)the reference security and the particular security are securities of the particular entity and the particular entity is a corporation, SIFT partnership or SIFT trust,(ii)the reference security is a security of another entity, one of the particular entity or the other entity is a subsidiary of the other, and the particular entity or the other entity is a corporation, SIFT partnership or SIFT trust, or(iii)the reference security is a security of another entity and the particular entity or the other entity is a real estate investment trust or a subsidiary of a real estate investment trust. (titre agrafé)
(i)is or may be required to be transferred together or concurrently with the particular security as a term or condition of the particular security, the reference security, or an agreement or arrangement to which the particular entity (or if the reference security is a security of another entity, the other entity) is a party, or(ii)is listed or traded with the particular security on a stock exchange or other public market under a single trading symbol;
(i)the reference security and the particular security are securities of the particular entity and the particular entity is a corporation, SIFT partnership or SIFT trust,(ii)the reference security is a security of another entity, one of the particular entity or the other entity is a subsidiary of the other, and the particular entity or the other entity is a corporation, SIFT partnership or SIFT trust, or(iii)the reference security is a security of another entity and the particular entity or the other entity is a real estate investment trust or a subsidiary of a real estate investment trust. (titre agrafé)
(a)an entity in which the particular entity holds at that time securities that have a total fair market value greater than 10% of the equity value of the entity; and(b)an entity that at that time is a subsidiary of an entity that is a subsidiary of the particular entity. (filiale)
(a)if one or more securities of the entity would have been stapled securities of the entity on October 31, 2006 and July 19, 2011 had the definitionstapled securityin this subsection come into force on October 31, 2006, the period that begins on July 20, 2011 and ends on the earliest of(i)January 1, 2016,(ii)the first day after July 20, 2011 on which any of those securities is materially altered, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011;(b)if paragraph (a) does not apply to the entity and one or more securities of the entity would have been stapled securities of the entity on July 19, 2011 had the definitionstapled securityin this subsection come into force on July 19, 2011, the period that begins on July 20, 2011 and ends on the earliest of(i)July 20, 2012,(ii)the first day after July 20, 2011 on which any of those securities is materially altered, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011; and(c)in any other case, if the entity is a subsidiary of another entity on July 20, 2011 and the other entity has a transition period, the period that begins on July 20, 2011 and ends on the earliest of(i)the day on which the other entity’s transition period ends,(ii)the first day after July 20, 2011 on which the entity ceases to be a subsidiary of the other entity, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011. (période de transition)
(i)January 1, 2016,(ii)the first day after July 20, 2011 on which any of those securities is materially altered, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011;
(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011;
(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or
(i)July 20, 2012,(ii)the first day after July 20, 2011 on which any of those securities is materially altered, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011; and
(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011; and
(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or
(i)the day on which the other entity’s transition period ends,(ii)the first day after July 20, 2011 on which the entity ceases to be a subsidiary of the other entity, and(iii)the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011. (période de transition)
(A)a transaction(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or(B)the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011. (période de transition)
(I)that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and(II)that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or
(a)the particular security is deemed to be described in those paragraphs; and(b)a security that would be a reference security in respect of the receipt is deemed to be a reference security in respect of the particular security.
(a)that is paid or payable after July 19, 2011, unless the amount is paid or payable in respect of the entity’s transition period; and(b)that is(i)interest paid or payable on a liability of the particular entity that is a stapled security, unless each reference security in respect of the stapled security is a liability, or(ii)if a security of the particular entity, a subsidiary of the particular entity or an entity of which the particular entity is a subsidiary is a reference security in respect of a stapled security of a real estate investment trust or a subsidiary of a real estate investment trust, an amount paid or payable to(A)the real estate investment trust,(B)a subsidiary of the real estate investment trust, or(C)any person or partnership on condition that any person or partnership pays or makes payable an amount to the real estate investment trust or a subsidiary of the real estate investment trust.
(i)interest paid or payable on a liability of the particular entity that is a stapled security, unless each reference security in respect of the stapled security is a liability, or(ii)if a security of the particular entity, a subsidiary of the particular entity or an entity of which the particular entity is a subsidiary is a reference security in respect of a stapled security of a real estate investment trust or a subsidiary of a real estate investment trust, an amount paid or payable to(A)the real estate investment trust,(B)a subsidiary of the real estate investment trust, or(C)any person or partnership on condition that any person or partnership pays or makes payable an amount to the real estate investment trust or a subsidiary of the real estate investment trust.
(A)the real estate investment trust,(B)a subsidiary of the real estate investment trust, or(C)any person or partnership on condition that any person or partnership pays or makes payable an amount to the real estate investment trust or a subsidiary of the real estate investment trust.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2013, c. 40, s. 10
19(1)In computing income, no deduction shall be made in respect of an otherwise deductible outlay or expense of a taxpayer for advertising space in an issue of a newspaper for an advertisement directed primarily to a market in Canada unless(a)the issue is a Canadian issue of a Canadian newspaper; or(b)the issue is an issue of a newspaper that would be a Canadian issue of a Canadian newspaper except that(i)its type has been wholly set in the United States or has been partly set in the United States with the remainder having been set in Canada, or(ii)it has been wholly printed in the United States or has been partly printed in the United States with the remainder having been printed in Canada.Marginal note:Where s. (1) does not apply(3)Subsection 19(1) does not apply with respect to an advertisement in a special issue or edition of a newspaper that is edited in whole or in part and printed and published outside Canada if that special issue or edition is devoted to features or news related primarily to Canada and the publishers thereof publish such an issue or edition not more frequently than twice a year.Marginal note:Definitions(5)In this section,Canadian issueCanadian issueof a newspaper means an issue, including a special issue,(a)the type of which, other than the type for advertisements or features, is set in Canada,(b)all of which, exclusive of any comics supplement, is printed in Canada,(c)that is edited in Canada by individuals resident in Canada, and(d)that is published in Canada; (édition canadienne)Canadian newspaperCanadian newspapermeans a newspaper the exclusive right to produce and publish issues of which is held by one or more of the following:(a)a Canadian citizen,(b)a partnership(i)in which interests representing in value at least 3/4 of the total value of the partnership property are beneficially owned by, and(ii)at least 3/4 of each income or loss of which from any source is included in the determination of the income of,corporations described in paragraph (e) or Canadian citizens or any combination thereof,(c)an association or society of which at least 3/4 of the members are Canadian citizens,(d)Her Majesty in right of Canada or a province, or a municipality in Canada, or(e)a corporation(i)that is incorporated under the laws of Canada or a province,(ii)of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens, and(iii)that, if it is a corporation having share capital, is(A)a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a corporation controlled by citizens or subjects of a country other than Canada, or(B)a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value in total of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada,and, for the purposes of clause (B), where shares of a class of the capital stock of a corporation are owned, or deemed by this definition to be owned, at any time by another corporation (in this definition referred to as the “holding corporation”), other than a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, each shareholder of the holding corporation shall be deemed to own at that time that proportion of the number of such shares of that class that(C)the fair market value of the shares of the capital stock of the holding corporation owned at that time by the shareholderis of(D)the fair market value of all the issued shares of the capital stock of the holding corporation outstanding at that time,and where at any time shares of a class of the capital stock of a corporation are owned, or are deemed by this definition to be owned, by a partnership, each member of the partnership shall be deemed to own at that time the least proportion of the number of such shares of that class that(E)the member’s share of the income or loss of the partnership from any source for its fiscal period that includes that timeis of(F)the income or loss of the partnership from that source for its fiscal period that includes that time,and for this purpose, where the income and loss of a partnership from any source for a fiscal period are nil, the partnership shall be deemed to have had income from that source for that period in the amount of $1,000,000; (journal canadien)substantially the samesubstantially the same[Repealed, 2001, c. 17, s. 11(2)]United StatesUnited Statesmeans(a)the United States of America, but does not include Puerto Rico, the Virgin Islands, Guam or any other United States possession or territory, and(b)any areas beyond the territorial sea of the United States within which, in accordance with international law and its domestic laws, the United States may exercise rights with respect to the seabed and subsoil and the natural resources of those areas. (États-Unis)Marginal note:Interpretation(5.1)In this section, each of the following is deemed to be a Canadian citizen:(a)a trust or corporation described in paragraph 149(1)(o) or (o.1) formed in connection with a pension plan that exists for the benefit of individuals a majority of whom are Canadian citizens;(b)a trust described in paragraph 149(1)(r) or (x), the annuitant in respect of which is a Canadian citizen;(c)a mutual fund trust, within the meaning assigned by subsection 132(6), other than a mutual fund trust the majority of the units of which are held by citizens or subjects of a country other than Canada;(d)a trust, each beneficiary of which is a person, partnership, association or society described in any of paragraphs (a) to (e) of the definitionCanadian newspaperin subsection (5); and(e)a person, association or society described in paragraph (c) or (d) of the definitionCanadian newspaperin subsection (5).Marginal note:Trust property(6)Where the right that is held by any person, partnership, association or society described in the definitionCanadian newspaperin subsection (5) to produce and publish issues of a newspaper is held as property of a trust or estate, the newspaper is not a Canadian newspaper unless each beneficiary under the trust or estate is a person, partnership, association or society described in that definition.Marginal note:Grace period(7)A Canadian newspaper that would, but for this subsection, cease to be a Canadian newspaper, is deemed to continue to be a Canadian newspaper until the end of the 12th month that follows the month in which it would, but for this subsection, have ceased to be a Canadian newspaper.Marginal note:Non-Canadian newspaper(8)Where at any time one or more persons or partnerships that are not described in any of paragraphs (a) to (e) of the definitionCanadian newspaperin subsection (5) have any direct or indirect influence that, if exercised, would result in control in fact of a person or partnership that holds a right to produce or publish issues of a newspaper, the newspaper is deemed not to be a Canadian newspaper at that time.
(a)the issue is a Canadian issue of a Canadian newspaper; or(b)the issue is an issue of a newspaper that would be a Canadian issue of a Canadian newspaper except that(i)its type has been wholly set in the United States or has been partly set in the United States with the remainder having been set in Canada, or(ii)it has been wholly printed in the United States or has been partly printed in the United States with the remainder having been printed in Canada.
(i)its type has been wholly set in the United States or has been partly set in the United States with the remainder having been set in Canada, or(ii)it has been wholly printed in the United States or has been partly printed in the United States with the remainder having been printed in Canada.
(a)the type of which, other than the type for advertisements or features, is set in Canada,(b)all of which, exclusive of any comics supplement, is printed in Canada,(c)that is edited in Canada by individuals resident in Canada, and(d)that is published in Canada; (édition canadienne)
(a)a Canadian citizen,(b)a partnership(i)in which interests representing in value at least 3/4 of the total value of the partnership property are beneficially owned by, and(ii)at least 3/4 of each income or loss of which from any source is included in the determination of the income of,corporations described in paragraph (e) or Canadian citizens or any combination thereof,(c)an association or society of which at least 3/4 of the members are Canadian citizens,(d)Her Majesty in right of Canada or a province, or a municipality in Canada, or(e)a corporation(i)that is incorporated under the laws of Canada or a province,(ii)of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens, and(iii)that, if it is a corporation having share capital, is(A)a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a corporation controlled by citizens or subjects of a country other than Canada, or(B)a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value in total of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada,and, for the purposes of clause (B), where shares of a class of the capital stock of a corporation are owned, or deemed by this definition to be owned, at any time by another corporation (in this definition referred to as the “holding corporation”), other than a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, each shareholder of the holding corporation shall be deemed to own at that time that proportion of the number of such shares of that class that(C)the fair market value of the shares of the capital stock of the holding corporation owned at that time by the shareholderis of(D)the fair market value of all the issued shares of the capital stock of the holding corporation outstanding at that time,and where at any time shares of a class of the capital stock of a corporation are owned, or are deemed by this definition to be owned, by a partnership, each member of the partnership shall be deemed to own at that time the least proportion of the number of such shares of that class that(E)the member’s share of the income or loss of the partnership from any source for its fiscal period that includes that timeis of(F)the income or loss of the partnership from that source for its fiscal period that includes that time,and for this purpose, where the income and loss of a partnership from any source for a fiscal period are nil, the partnership shall be deemed to have had income from that source for that period in the amount of $1,000,000; (journal canadien)
(i)in which interests representing in value at least 3/4 of the total value of the partnership property are beneficially owned by, and(ii)at least 3/4 of each income or loss of which from any source is included in the determination of the income of,
(i)that is incorporated under the laws of Canada or a province,(ii)of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens, and(iii)that, if it is a corporation having share capital, is(A)a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a corporation controlled by citizens or subjects of a country other than Canada, or(B)a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value in total of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada,and, for the purposes of clause (B), where shares of a class of the capital stock of a corporation are owned, or deemed by this definition to be owned, at any time by another corporation (in this definition referred to as the “holding corporation”), other than a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, each shareholder of the holding corporation shall be deemed to own at that time that proportion of the number of such shares of that class that(C)the fair market value of the shares of the capital stock of the holding corporation owned at that time by the shareholderis of(D)the fair market value of all the issued shares of the capital stock of the holding corporation outstanding at that time,and where at any time shares of a class of the capital stock of a corporation are owned, or are deemed by this definition to be owned, by a partnership, each member of the partnership shall be deemed to own at that time the least proportion of the number of such shares of that class that(E)the member’s share of the income or loss of the partnership from any source for its fiscal period that includes that timeis of(F)the income or loss of the partnership from that source for its fiscal period that includes that time,and for this purpose, where the income and loss of a partnership from any source for a fiscal period are nil, the partnership shall be deemed to have had income from that source for that period in the amount of $1,000,000; (journal canadien)
(A)a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a corporation controlled by citizens or subjects of a country other than Canada, or(B)a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value in total of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada,
(C)the fair market value of the shares of the capital stock of the holding corporation owned at that time by the shareholder
(D)the fair market value of all the issued shares of the capital stock of the holding corporation outstanding at that time,
(E)the member’s share of the income or loss of the partnership from any source for its fiscal period that includes that time
(F)the income or loss of the partnership from that source for its fiscal period that includes that time,
(a)the United States of America, but does not include Puerto Rico, the Virgin Islands, Guam or any other United States possession or territory, and(b)any areas beyond the territorial sea of the United States within which, in accordance with international law and its domestic laws, the United States may exercise rights with respect to the seabed and subsoil and the natural resources of those areas. (États-Unis)
(a)a trust or corporation described in paragraph 149(1)(o) or (o.1) formed in connection with a pension plan that exists for the benefit of individuals a majority of whom are Canadian citizens;(b)a trust described in paragraph 149(1)(r) or (x), the annuitant in respect of which is a Canadian citizen;(c)a mutual fund trust, within the meaning assigned by subsection 132(6), other than a mutual fund trust the majority of the units of which are held by citizens or subjects of a country other than Canada;(d)a trust, each beneficiary of which is a person, partnership, association or society described in any of paragraphs (a) to (e) of the definitionCanadian newspaperin subsection (5); and(e)a person, association or society described in paragraph (c) or (d) of the definitionCanadian newspaperin subsection (5).
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 191994, c. 7, Sch