For this purpose, an entity that has no residence for tax purposes is deemed to be resident in the jurisdiction in which its place of effective management is situated. (personne d’une juridiction soumise à déclaration)reportable personreportable personmeans a reportable jurisdiction person other than(a)a corporation the stock of which is regularly traded on one or more established securities markets;(b)any corporation that is a related entity of a corporation described in paragraph (a);(c)a governmental entity;(d)an international organization;(e)a central bank; or(f)a financial institution. (personne devant faire l’objet d’une déclaration)reporting financial institutionreporting financial institutionmeans a Canadian financial institution that is not a non-reporting financial institution. (institution financière déclarante)specified insurance companyspecified insurance companymeans any entity that is an insurance company (or the holding company of an insurance company) that issues, or is obligated to make payments with respect to, cash value insurance contracts or annuity contracts. (compagnie d’assurance particulière)TINTINmeans(a)the number used by the Minister to identify an individual or entity, including(i)a social insurance number,(ii)a business number, and(iii)an account number issued to a trust; and(b)in respect of a jurisdiction other than Canada, a taxpayer identification number used in that jurisdiction to identify an individual or entity (or a functional equivalent in the absence of a taxpayer identification number). (NIF)USDUSDmeans dollars of the United States of America. (USD)Marginal note:Interpretation(2)This Part relates to the implementation of theCommon Reporting Standardset out in theStandard for Automatic Exchange of Financial Account Information in Tax Mattersapproved by the Council of the Organisation for Economic Co-operation and Development and, unless the context otherwise requires, the provisions in this Part are to be interpreted consistently with theCommon Reporting Standard, as amended from time to time.Marginal note:Interpretation — investment entity(3)For the purposes of the definitioninvestment entityin subsection (1), an entity is considered to be primarily carrying on as a business one or more of the activities described in paragraph (a) of that definition, or an entity’s gross income is primarily attributable to investing, reinvesting or trading in financial assets for the purposes of paragraph (b) of that definition, if the entity’s gross income attributable to the relevant activities equals or exceeds 50% of the entity’s gross income during the shorter of(a)the three-year period that ends at the end of the entity’s last fiscal period, and(b)the period during which the entity has been in existence.Marginal note:Equity or debt interest – deeming rule(4)In the case of a trust that is a financial institution,(a)an equity interest is deemed to be held by any person treated as a settlor or beneficiary of all or a portion of the trust or any other natural person exercising ultimate effective control over the trust, and(b)a reportable person is treated as a beneficiary of a trust if the reportable person has the right to receive directly or indirectly (such as through a nominee) a mandatory distribution from the trust or may receive, directly or indirectly, a discretionary distribution from the trust.
(a)the person listed or identified as the holder of a financial account by the financial institution that maintains the account, other than a person (other than a financial institution) holding a financial account for the benefit of, or on behalf of, another person as agent, custodian, nominee, signatory, investment advisor or intermediary; and(b)in the case of a cash value insurance contract or an annuity contract,(i)any person entitled to access the cash value or change the beneficiary,(ii)if no person can access the cash value or change the beneficiary,(A)any person named as the owner in the contract, and(B)any person with a vested entitlement to payment under the terms of the contract, and(iii)upon maturity of the cash value insurance contract or annuity contract, each person entitled to receive a payment under the contract. (titulaire de compte)
(i)any person entitled to access the cash value or change the beneficiary,(ii)if no person can access the cash value or change the beneficiary,(A)any person named as the owner in the contract, and(B)any person with a vested entitlement to payment under the terms of the contract, and(iii)upon maturity of the cash value insurance contract or annuity contract, each person entitled to receive a payment under the contract. (titulaire de compte)
(A)any person named as the owner in the contract, and(B)any person with a vested entitlement to payment under the terms of the contract, and
(a)less than 50% of the NFE’s gross income for the preceding fiscal period is passive income and less than 50% of the assets held by the NFE during the preceding fiscal period are assets that produce or are held for the production of passive income;(b)either(i)interests in the NFE are regularly traded on an established securities market, or(ii)the NFE is a related entity of an entity interests in which are regularly traded on an established securities market;(c)the NFE is(i)a governmental entity,(ii)an international organization,(iii)a central bank, or(iv)an entity wholly owned by one or more entities described in subparagraphs (i) to (iii);(d)both(i)all or substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more of its subsidiaries that engage in trades or businesses other than the business of a financial institution, and(ii)the NFE does not function as (and is not represented or promoted to the public as) an investment fund, including(A)a private equity fund,(B)a venture capital fund,(C)a leveraged buyout fund, and(D)an investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes;(e)the NFE(i)is not yet operating a business,(ii)has no prior operating history,(iii)is investing capital into assets with the intent to operate a business other than that of a financial institution, and(iv)was initially organized no more than 24 months prior to that time;(f)the NFE has not been a financial institution in any of the past five years and is in the process of liquidating its assets or is reorganizing with the intent to continue or recommence operations in a business other than that of a financial institution;(g)the NFE primarily engages in financing and hedging transactions with, or for, related entities that are not financial institutions, and does not provide financing or hedging services to any entity that is not a related entity, provided that the group of those related entities is primarily engaged in a business other than that of a financial institution; and(h)the NFE meets all of the following requirements:(i)it(A)is established and operated in its jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic or educational purposes, or(B)is established and operated in its jurisdiction of residence and it is a professional organization, business league, chamber of commerce, labour organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare,(ii)it is exempt from income tax in its jurisdiction of residence,(iii)it has no shareholders or members who have a proprietary or beneficial interest in its income or assets,(iv)the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable entity other than pursuant to the conduct of the NFE’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFE has purchased, and(v)the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation documents require that, upon the NFE’s liquidation or dissolution, all of its assets be distributed to a governmental entity or other non-profit organization, or escheat to the government of the NFE’s jurisdiction of residence or any political subdivision thereof. (ENF active)
(i)interests in the NFE are regularly traded on an established securities market, or(ii)the NFE is a related entity of an entity interests in which are regularly traded on an established securities market;
(i)a governmental entity,(ii)an international organization,(iii)a central bank, or(iv)an entity wholly owned by one or more entities described in subparagraphs (i) to (iii);
(i)all or substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more of its subsidiaries that engage in trades or businesses other than the business of a financial institution, and(ii)the NFE does not function as (and is not represented or promoted to the public as) an investment fund, including(A)a private equity fund,(B)a venture capital fund,(C)a leveraged buyout fund, and(D)an investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes;
(A)a private equity fund,(B)a venture capital fund,(C)a leveraged buyout fund, and(D)an investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes;
(i)is not yet operating a business,(ii)has no prior operating history,(iii)is investing capital into assets with the intent to operate a business other than that of a financial institution, and(iv)was initially organized no more than 24 months prior to that time;
(i)it(A)is established and operated in its jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic or educational purposes, or(B)is established and operated in its jurisdiction of residence and it is a professional organization, business league, chamber of commerce, labour organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare,(ii)it is exempt from income tax in its jurisdiction of residence,(iii)it has no shareholders or members who have a proprietary or beneficial interest in its income or assets,(iv)the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable entity other than pursuant to the conduct of the NFE’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFE has purchased, and(v)the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation documents require that, upon the NFE’s liquidation or dissolution, all of its assets be distributed to a governmental entity or other non-profit organization, or escheat to the government of the NFE’s jurisdiction of residence or any political subdivision thereof. (ENF active)
(A)is established and operated in its jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic or educational purposes, or(B)is established and operated in its jurisdiction of residence and it is a professional organization, business league, chamber of commerce, labour organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare,
(a)that is considered to be an annuity contract in accordance with the law, regulation or practice of the jurisdiction in which the contract was issued; and(b)under which the issuer agrees to make payments for a term of years. (contrat de rente)
(a)does not have a single beneficiary with a right to more than 5% of the fund’s assets;(b)is subject to government regulation and provides information reporting to the Minister; and(c)satisfies at least one of the following requirements:(i)the fund is generally exempt from tax on investment income, or taxation of investment income is deferred or taxed at a reduced rate, due to its status as a retirement or pension plan,(ii)the fund receives at least 50% of its total contributions (other than transfers of assets from broad participation retirement funds, narrow participation retirement funds or from retirement and pension accounts described in paragraph (a) of the definitionexcluded account) from the sponsoring employers,(iii)distributions or withdrawals from the fund are(A)allowed only upon the occurrence of specified events related to retirement, disability or death (except rollover distributions to broad participation retirement funds, narrow participation retirement funds and pension funds of a governmental entity, international organization or central bank or retirement and pension accounts described in paragraph (a) of the definitionexcluded account), or(B)subject to penalties if they are made before such specified events, and(iv)contributions (other than permitted make-up contributions) by an employee to the fund(A)are limited by reference to the employee’s remuneration, or(B)must not exceed 50,000 USD annually, applying the rules set forth in subsection 277(3). (fonds de retraite à large participation)
(i)the fund is generally exempt from tax on investment income, or taxation of investment income is deferred or taxed at a reduced rate, due to its status as a retirement or pension plan,(ii)the fund receives at least 50% of its total contributions (other than transfers of assets from broad participation retirement funds, narrow participation retirement funds or from retirement and pension accounts described in paragraph (a) of the definitionexcluded account) from the sponsoring employers,(iii)distributions or withdrawals from the fund are(A)allowed only upon the occurrence of specified events related to retirement, disability or death (except rollover distributions to broad participation retirement funds, narrow participation retirement funds and pension funds of a governmental entity, international organization or central bank or retirement and pension accounts described in paragraph (a) of the definitionexcluded account), or(B)subject to penalties if they are made before such specified events, and(iv)contributions (other than permitted make-up contributions) by an employee to the fund(A)are limited by reference to the employee’s remuneration, or(B)must not exceed 50,000 USD annually, applying the rules set forth in subsection 277(3). (fonds de retraite à large participation)
(A)allowed only upon the occurrence of specified events related to retirement, disability or death (except rollover distributions to broad participation retirement funds, narrow participation retirement funds and pension funds of a governmental entity, international organization or central bank or retirement and pension accounts described in paragraph (a) of the definitionexcluded account), or(B)subject to penalties if they are made before such specified events, and
(A)are limited by reference to the employee’s remuneration, or(B)must not exceed 50,000 USD annually, applying the rules set forth in subsection 277(3). (fonds de retraite à large participation)
(a)either(i)resident in Canada, but excluding any branch of the financial institution that is located outside Canada, or(ii)a branch of a financial institution that is not resident in Canada, if the branch is located in Canada; and(b)alisted financial institutionas defined in subsection 263(1). (institution financière canadienne)
(i)resident in Canada, but excluding any branch of the financial institution that is located outside Canada, or(ii)a branch of a financial institution that is not resident in Canada, if the branch is located in Canada; and
(a)solely by reason of the death of an individual insured under a life insurance contract;(b)as a personal injury or sickness benefit, or other benefit, providing indemnification of an economic loss incurred upon the occurrence of an event insured against;(c)as a refund of a previously paid premium (less any cost of insurance charges whether or not actually imposed) under an insurance contract (other than an investment-linked life insurance or annuity contract) due to the cancellation or termination of the contract, a decrease in risk exposure during the effective period of the contract or arising from the correction of a posting or similar error with regard to the premium for the contract;(d)as a policyholder dividend (other than a termination dividend) if the dividend relates to an insurance contract under which the only benefits payable are described in paragraph (b); or(e)as a return of an advance premium or premium deposit for an insurance contract for which the premium is payable at least annually, if the amount of the advance premium or premium deposit does not exceed the next annual premium that will be payable under the contract. (valeur de rachat)
(a)in the case of a trust,(i)its settlors,(ii)its trustees,(iii)its protectors (if any),(iv)its beneficiaries (for this purpose, a discretionary beneficiary of a trust will only be considered a beneficiary of the trust in a calendar year if a distribution has been paid or made payable to the discretionary beneficiary in the calendar year), and(v)any other natural persons exercising ultimate effective control over the trust; and(b)in the case of a legal arrangement other than a trust, persons in equivalent or similar positions to those described in paragraph (a). (personnes détenant le contrôle)
(i)its settlors,(ii)its trustees,(iii)its protectors (if any),(iv)its beneficiaries (for this purpose, a discretionary beneficiary of a trust will only be considered a beneficiary of the trust in a calendar year if a distribution has been paid or made payable to the discretionary beneficiary in the calendar year), and(v)any other natural persons exercising ultimate effective control over the trust; and
(a)the three-year period that ends at the end of the entity’s last fiscal period, and(b)the period during which the entity has been in existence. (établissement de garde de valeurs)
(a)any commercial, chequing, savings, time or thrift account, or an account that is evidenced by a certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness or other similar instrument maintained by a financial institution in the ordinary course of a banking or similar business; and(b)an amount held by an insurance company under a guaranteed investment contract or similar agreement to pay or credit interest on the contract. (compte de dépôt)
(a)a certificate of residence issued by an authorized government body (such as a government or agency thereof, or a municipality) of the jurisdiction in which the payee claims to be a resident;(b)with respect to an individual (other than a trust), any valid identification issued by an authorized government body that includes the individual’s name and is typically used for identification purposes;(c)with respect to an entity, any official documentation issued by an authorized government body that includes the name of the entity and either the address of its principal office in the jurisdiction in which it claims to be resident or the jurisdiction in which the entity was incorporated or organized; and(d)any audited financial statement, third-party credit report, bankruptcy filing or securities regulator’s report. (preuve documentaire)
(a)is officially recognized and supervised by a governmental authority in which the market is located; and(b)has an annual value of shares traded on the exchange (or a predecessor exchange) exceeding one billion USD during each of the three calendar years immediately preceding the calendar year in which the determination is being made