VIII, s. 781998, c. 19, s. 1602001, c. 17, ss. 131, 2152003, c. 15, s. 1142010, c. 25, s. 322013, c. 34, s. 134
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1“134”1973-74, c. 14, s. 431977-78, c. 1, s. 671980-81-82-83, c. 140, s. 921985, c. 45, s. 78
134.1(1)This section applies to a corporation that(a)was a non-resident-owned investment corporation in a taxation year;(b)is not a non-resident-owned investment corporation in the following taxation year (in this section referred to as the corporation’s “first non-NRO year”); and(c)elects in writing filed with the Minister on or before the corporation’s filing-due date for its first non-NRO year to have this section apply.Marginal note:Application(2)For the purposes of applying subsections 104(10) and (11) and 133(6) to (9) (other than the definitionnon-resident-owned investment corporationin subsection 133(8)), section 212 and any tax treaty, a corporation described in subsection (1) is deemed to be a non-resident-owned investment corporation in its first non-NRO year in respect of dividends paid in that year on shares of its capital stock to a non-resident person, to a trust for the benefit of non-resident persons or their unborn issue or to a non-resident-owned investment corporation.
(a)was a non-resident-owned investment corporation in a taxation year;(b)is not a non-resident-owned investment corporation in the following taxation year (in this section referred to as the corporation’s “first non-NRO year”); and(c)elects in writing filed with the Minister on or before the corporation’s filing-due date for its first non-NRO year to have this section apply.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2001, c. 17, s. 1322013, c. 34, s. 281
134.2(1)This section applies to a corporation that(a)revokes at any time (in this section described as the “revocation time”) its election to be taxed under section 133;(b)elects to have this section apply, by filing an election in writing with the Minister on or before the corporation’s filing-due date for the taxation year of the corporation (in this section referred to as the “revocation year”) that would have included the revocation time if the corporation had not so elected; and(c)specifies in the election a time (in this section referred to as the “elected time”) that is in the revocation year and is not after the revocation time.Marginal note:Consequences(2)Where this section applies to a corporation,(a)the corporation’s taxation year that would have included the elected time, if the corporation had not elected to have this section apply, is deemed to end immediately before the elected time;(b)a new taxation year of the corporation is deemed to begin at the elected time; and(c)notwithstanding paragraph (f) of the definitionnon-resident-owned investment corporationin subsection 133(8), the corporation is deemed to be a non-resident-owned investment corporation for the period that begins at the beginning of the revocation year and ends immediately before the elected time.
(a)revokes at any time (in this section described as the “revocation time”) its election to be taxed under section 133;(b)elects to have this section apply, by filing an election in writing with the Minister on or before the corporation’s filing-due date for the taxation year of the corporation (in this section referred to as the “revocation year”) that would have included the revocation time if the corporation had not so elected; and(c)specifies in the election a time (in this section referred to as the “elected time”) that is in the revocation year and is not after the revocation time.
(a)the corporation’s taxation year that would have included the elected time, if the corporation had not elected to have this section apply, is deemed to end immediately before the elected time;(b)a new taxation year of the corporation is deemed to begin at the elected time; and(c)notwithstanding paragraph (f) of the definitionnon-resident-owned investment corporationin subsection 133(8), the corporation is deemed to be a non-resident-owned investment corporation for the period that begins at the beginning of the revocation year and ends immediately before the elected time.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2001, c. 17, s. 132
135(1)Notwithstanding anything in this Part, other than subsections (1.1) to (2.1) and 135.1(3), there may be deducted, in computing the income of a taxpayer for a taxation year, the total of the payments made, pursuant to allocations in proportion to patronage, by the taxpayer(a)within the year or within 12 months thereafter to the taxpayer’s customers of the year; and(b)within the year or within 12 months thereafter to the taxpayer’s customers of a previous year, the deduction of which from income of a previous taxation year was not permitted.Marginal note:Limitation where non-arm’s length customer(1.1)Subsection (1) applies to a payment made by a taxpayer to a customer with whom the taxpayer does not deal at arm’s length only if(a)the taxpayer is a cooperative corporation described in subsection 136(2) or a credit union; or(b)the payment is prescribed.Marginal note:Limitation where non-member customer(2)If a taxpayer has not made allocations in proportion to patronage in respect of all of the taxpayer’s customers of the year, at the same rate, with appropriate differences for different types, classes, grades or qualities of goods, products or services, the amount that may be deducted by the taxpayer under subsection (1) is an amount equal to the lesser of(a)the total of the payments mentioned in that subsection, and(b)the total of(i)the part of the income of the taxpayer for the year attributable to business done with members, and(ii)the allocations in proportion to patronage made to non-member customers of the year.Marginal note:Deduction carried over(2.1)Where, in a taxation year ending after 1985, all or a portion of a payment made by a taxpayer pursuant to an allocation in proportion to patronage to the taxpayer’s customers who are members is not deductible in computing the taxpayer’s income for the year because of the application of subsection 135(2) (in this subsection referred to as the “undeducted amount”), there may be deducted in computing the taxpayer’s income for a subsequent taxation year, an amount equal to the lesser of(a)the undeducted amount, except to the extent that that amount was deducted in computing the taxpayer’s income for any preceding taxation year, and(b)the amount, if any, by which(i)the taxpayer’s income for the subsequent taxation year (computed without reference to this subsection) attributable to business done with the taxpayer’s customers of that year who are membersexceeds(ii)the amount deducted in computing the taxpayer’s income for the subsequent taxation year by virtue of subsection 135(1) in respect of payments made by the taxpayer pursuant to allocations in proportion to patronage to the taxpayer’s customers of that year who are members.Marginal note:Amount to be deducted or withheld from payment to customer(3)Subject to subsection 135.1(6), a taxpayer who makes at any particular time in a calendar year a payment pursuant to an allocation in proportion to patronage to a person who is resident in Canada and is not exempt from tax under section 149 shall, notwithstanding any agreement or any law to the contrary, deduct or withhold from the payment an amount equal to 15% of the lesser of the amount of the payment and the amount, if any, by which(a)the total of the amount of the payment and the amounts of all other payments pursuant to allocations in proportion to patronage made by the taxpayer to that person in the calendar year and before the particular timeexceeds(b)$100,and forthwith remit that amount to the Receiver General on behalf of that person on account of that person’s tax under this Part.Marginal note:Definitions(4)For the purposes of this section and section 135.1,allocation in proportion to patronageallocation in proportion to patronagefor a taxation year means an amount credited by a taxpayer to a customer of that year on terms that the customer is entitled to or will receive payment thereof, computed at a rate in relation to the quantity, quality or value of the goods or products acquired, marketed, handled, dealt in or sold, or services rendered by the taxpayer from, on behalf of or to the customer, whether as principal or as agent of the customer or otherwise, with appropriate differences in the rate for different classes, grades or qualities thereof, if(a)the amount was credited(i)within the year or within 12 months thereafter, and(ii)at the same rate in relation to quantity, quality or value aforesaid as the rate at which amounts were similarly credited to all other customers of that year who were members or to all other customers of that year, as the case may be, with appropriate differences aforesaid for different classes, grades or qualities, and(b)the prospect that amounts would be so credited was held out by the taxpayer to the taxpayer’s customers of that year who were members or non-member customers of that year, as the case may be; (répartition proportionnelle à l’apport commercial)consumer goods or servicesconsumer goods or servicesmeans goods or services the cost of which was not deductible by the taxpayer in computing the income from a business or property; (marchandises de consommation ou services)customercustomermeans a customer of a taxpayer and includes a person who sells or delivers goods or products to the taxpayer, or for whom the taxpayer renders services; (client)income of the taxpayer attributable to business done with membersincome of the taxpayer attributable to business done with membersof any taxation year means that proportion of the income of the taxpayer for the year (before making any deduction under this section) that the value of the goods or products acquired, marketed, handled, dealt in or sold or services rendered by the taxpayer from, on behalf of, or for members, is of the total value of goods or products acquired, marketed, handled, dealt in or sold or services rendered by the taxpayer from, on behalf of, or for all customers during the year; (revenu du contribuable attribuable aux affaires faites avec ses membres)membermembermeans a person who is entitled as a member or shareholder to full voting rights in the conduct of the affairs of the taxpayer (being a corporation) or of a corporation of which the taxpayer is a subsidiary wholly-owned corporation; (membre)non-member customernon-member customermeans a customer who is not a member; (client non membre)paymentpaymentincludes(a)the issue of a certificate of indebtedness or shares of the taxpayer or of a corporation of which the taxpayer is a subsidiary wholly-owned corporation if the taxpayer or that corporation has in the year or within 12 months thereafter disbursed an amount of money equal to the total face value of all certificates or shares so issued in the course of redeeming or purchasing certificates of indebtedness or shares of the taxpayer or that corporation previously issued,(b)the application by the taxpayer of an amount to a member’s liability to the taxpayer (including, without restricting the generality of the foregoing, an amount applied in fulfilment of an obligation of the member to make a loan to the taxpayer and an amount applied on account of payment for shares issued to a member) pursuant to a by-law of the taxpayer, pursuant to statutory authority or at the request of the member, or(c)the amount of a payment or transfer by the taxpayer that, under subsection 56(2), is required to be included in computing the income of a member. (paiement)Marginal note:Holding out prospect of allocations(5)For the purpose of this section a taxpayer shall be deemed to have held out the prospect that amounts would be credited to a customer of a taxation year by way of allocation in proportion to patronage, if(a)throughout the year the statute under which the taxpayer was incorporated or registered, its charter, articles of association or by-laws or its contract with the customer held out the prospect that amounts would be so credited to customers who are members or non-member customers, as the case may be; or(b)prior to the commencement of the year or prior to such other day as may be prescribed for the class of business in which the taxpayer is engaged, the taxpayer has published an advertisement in prescribed form in a newspaper or newspapers of general circulation throughout the greater part of the area in which the taxpayer carried on business holding out that prospect to customers who are members or non-member customers, as the case may be, and has filed copies of the newspapers with the Minister before the end of the 30th day of the taxation year or within 30 days from the prescribed day, as the case may be.Marginal note:Amount of payment to customer(6)For greater certainty, the amount of any payment pursuant to an allocation in proportion to patronage is the amount thereof determined before deducting any amount required by subsection 135(3) to be deducted or withheld from that payment.Marginal note:Payment to customer to be included in income(7)Where a payment pursuant to an allocation in proportion to patronage (other than an allocation in respect of consumer goods or services) has been received by a taxpayer, the amount of the payment shall, subject to subsection 135.1(2), be included in computing the recipient’s income for the taxation year in which the payment was received and, without restricting the generality of the foregoing, where a certificate of indebtedness or a share was issued to a person pursuant to an allocation in proportion to patronage, the amount of the payment by virtue of that issuance shall be included in computing the recipient’s income for the taxation year in which the certificate or share was received and not in computing the recipient’s income for the year in which the indebtedness was subsequently discharged or the share was redeemed.Marginal note:Patronage dividends(8)For the purposes of this section, where(a)a person has sold or delivered a quantity of goods or products to a marketing board established by or pursuant to a law of Canada or a province,(b)the marketing board has sold or delivered the same quantity of goods or products of the same class, grade or quality to a taxpayer of which the person is a member, and(c)the taxpayer has credited that person with an amount based on the quantity of goods or products of that class, grade or quality sold or delivered to it by the marketing board,the quantity of goods or products referred to in paragraph 135(8)(c) shall be deemed to have been sold or delivered by that person to the taxpayer and to have been acquired by the taxpayer from that person.
(a)within the year or within 12 months thereafter to the taxpayer’s customers of the year; and(b)within the year or within 12 months thereafter to the taxpayer’s customers of a previous year, the deduction of which from income of a previous taxation year was not permitted.
(a)the taxpayer is a cooperative corporation described in subsection 136(2) or a credit union; or(b)the payment is prescribed.
(a)the total of the payments mentioned in that subsection, and(b)the total of(i)the part of the income of the taxpayer for the year attributable to business done with members, and(ii)the allocations in proportion to patronage made to non-member customers of the year.
(i)the part of the income of the taxpayer for the year attributable to business done with members, and(ii)the allocations in proportion to patronage made to non-member customers of the year.
(a)the undeducted amount, except to the extent that that amount was deducted in computing the taxpayer’s income for any preceding taxation year, and(b)the amount, if any, by which(i)the taxpayer’s income for the subsequent taxation year (computed without reference to this subsection) attributable to business done with the taxpayer’s customers of that year who are membersexceeds(ii)the amount deducted in computing the taxpayer’s income for the subsequent taxation year by virtue of subsection 135(1) in respect of payments made by the taxpayer pursuant to allocations in proportion to patronage to the taxpayer’s customers of that year who are members.
(i)the taxpayer’s income for the subsequent taxation year (computed without reference to this subsection) attributable to business done with the taxpayer’s customers of that year who are members
(ii)the amount deducted in computing the taxpayer’s income for the subsequent taxation year by virtue of subsection 135(1) in respect of payments made by the taxpayer pursuant to allocations in proportion to patronage to the taxpayer’s customers of that year who are members.
(a)the total of the amount of the payment and the amounts of all other payments pursuant to allocations in proportion to patronage made by the taxpayer to that person in the calendar year and before the particular time
(b)$100,
(a)the amount was credited(i)within the year or within 12 months thereafter, and(ii)at the same rate in relation to quantity, quality or value aforesaid as the rate at which amounts were similarly credited to all other customers of that year who were members or to all other customers of that year, as the case may be, with appropriate differences aforesaid for different classes, grades or qualities, and(b)the prospect that amounts would be so credited was held out by the taxpayer to the taxpayer’s customers of that year who were members or non-member customers of that year, as the case may be; (répartition proportionnelle à l’apport commercial)
(i)within the year or within 12 months thereafter, and(ii)at the same rate in relation to quantity, quality or value aforesaid as the rate at which amounts were similarly credited to all other customers of that year who were members or to all other customers of that year, as the case may be, with appropriate differences aforesaid for different classes, grades or qualities, and
(a)the issue of a certificate of indebtedness or shares of the taxpayer or of a corporation of which the taxpayer is a subsidiary wholly-owned corporation if the taxpayer or that corporation has in the year or within 12 months thereafter disbursed an amount of money equal to the total face value of all certificates or shares so issued in the course of redeeming or purchasing certificates of indebtedness or shares of the taxpayer or that corporation previously issued,(b)the application by the taxpayer of an amount to a member’s liability to the taxpayer (including, without restricting the generality of the foregoing, an amount applied in fulfilment of an obligation of the member to make a loan to the taxpayer and an amount applied on account of payment for shares issued to a member) pursuant to a by-law of the taxpayer, pursuant to statutory authority or at the request of the member, or(c)the amount of a payment or transfer by the taxpayer that, under subsection 56(2), is required to be included in computing the income of a member. (paiement)
(a)throughout the year the statute under which the taxpayer was incorporated or registered, its charter, articles of association or by-laws or its contract with the customer held out the prospect that amounts would be so credited to customers who are members or non-member customers, as the case may be; or(b)prior to the commencement of the year or prior to such other day as may be prescribed for the class of business in which the taxpayer is engaged, the taxpayer has published an advertisement in prescribed form in a newspaper or newspapers of general circulation throughout the greater part of the area in which the taxpayer carried on business holding out that prospect to customers who are members or non-member customers, as the case may be, and has filed copies of the newspapers with the Minister before the end of the 30th day of the taxation year or within 30 days from the prescribed day, as the case may be.
(a)a person has sold or delivered a quantity of goods or products to a marketing board established by or pursuant to a law of Canada or a province,(b)the marketing board has sold or delivered the same quantity of goods or products of the same class, grade or quality to a taxpayer of which the person is a member, and(c)the taxpayer has credited that person with an amount based on the quantity of goods or products of that class, grade or quality sold or delivered to it by the marketing board,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1352005, c. 19, s. 322006, c. 4, s. 79
135.1(1)The following definitions apply in this section and section 135.agricultural businessagricultural businessmeans a business, carried on in Canada, that consists of one or any combination of(a)farming (including, if the person carrying on the business is a corporation described in paragraph (a) of the definitionagricultural cooperative corporation, the production, processing, storing and wholesale marketing of the products of its members’ farming activities); or(b)the provision of goods or services (other than financial services) that are required for farming. (entreprise d’agriculture)agricultural cooperative corporationagricultural cooperative corporationat any time means a corporation(a)that was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations; and(b)that has at that time(i)as its principal business an agricultural business, or(ii)members, making up at least 75% of all members of the corporation, each of whom(A)is an agricultural cooperative corporation, or(B)has as their principal business a farming business. (coopérative agricole)allowable dispositionallowable dispositionmeans a disposition by a taxpayer of a tax deferred cooperative share less than five years after the day on which the share was issued if(a)before the disposition,(i)the agricultural cooperative corporation is notified in writing that the taxpayer has after the share was issued become disabled and permanently unfit for work, or termi­nally ill, or(ii)the taxpayer ceases to be a member of the agricultural cooperative corporation; or(b)the agricultural cooperative corporation is notified in writing that the share is held by a person on whom the share has devolved as a consequence of the death of the taxpayer. (disposition admissible)eligible membereligible memberof an agricultural cooperative corporation means a member who carries on an agricultural business and who is(a)an individual resident in Canada;(b)an agricultural cooperative corporation;(c)a corporation resident in Canada that carries on the business of farming in Canada; or(d)a partnership that carries on the business of farming in Canada, all of the members of which are described in any of paragraphs (a) to (c) or this paragraph. (membre admissible)tax deferred cooperative sharetax deferred cooperative shareat any time means a share(a)issued, after 2005 and before 2026, by an agricultural cooperative corporation to a person or partnership that is at the time the share is issued an eligible member of the agricultural cooperative corporation, pursuant to an allocation in proportion to patronage;(b)the holder of which is not entitled to receive on the redemption, cancellation or acquisition of the share by the agricultural cooperative corporation or by any person with whom the agricultural cooperative corporation does not deal at arm’s length an amount that is greater than the amount that would, if this Act were read without reference to this section, be included under subsection 135(7) in computing the eligible member’s income for their taxation year in which the share was issued;(c)that has not before that time been deemed by subsection (4) to have been disposed of; and(d)that is of a class(i)the terms of which provide that the agricultural cooperative corporation shall not, otherwise than pursuant to an allowable disposition, redeem, acquire or cancel a share of the class before the day that is five years after the day on which the share was issued, and(ii)that is identified by the agricultural cooperative corporation in prescribed form and manner as a class of tax deferred cooperative shares. (part à imposition différée)tax paid balancetax paid balanceof a taxpayer at the end of a particular taxation year of the taxpayer means the amount, if any, by which(a)the total of(i)the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and(ii)the amount, if any, that is included in computing the taxpayer’s income under this Part for the particular taxation year because of an election described in subparagraph (2)(a)(ii),exceeds(b)the total of all amounts each of which is the taxpayer’s proceeds of disposition of a tax deferred cooperative share that the taxpayer disposed of in the particular taxation year. (solde libéré d’impôt)Marginal note:Income inclusion(2)In computing the income of a taxpayer for a particular taxation year, there shall be included under subsection 135(7), in respect of the taxpayer’s receipt, as an eligible member, of tax deferred cooperative shares of an agricultural cooperative corporation in the particular taxation year, only the total of(a)the lesser of(i)the total of all amounts, in respect of the taxpayer’s receipt in the particular taxation year of tax deferred cooperative shares, that would, if this Act were read without reference to this section, be included under subsection 135(7) in computing the taxpayer’s income for the particular taxation year, and(ii)the greater of nil and the amount, if any, specified by the taxpayer in an election in prescribed form that is filed with the taxpayer’s return of income for the particular taxation year, and(b)the amount, if any, by which(i)the total of all amounts each of which is the taxpayer’s proceeds of disposition of a tax deferred cooperative share disposed of by the taxpayer in the particular taxation yearexceeds(ii)the total of(A)the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and(B)the amount, if any, that is included in computing the taxpayer’s income for the particular taxation year because of an election described in subparagraph (a)(ii).Marginal note:Deductibility limit(3)The amount that may be deducted under subsection 135(1) for a particular taxation year by an agricultural cooperative corporation in respect of payments, in the form of tax deferred cooperative shares, made pursuant to allocations in proportion to patronage shall not exceed 85% of the agricultural cooperative corporation’s income of the taxation year attributable to business done with members.Marginal note:Deemed disposition(4)A taxpayer who holds a tax deferred cooperative share is deemed to have disposed of the share, for proceeds of disposition equal to the amount that would, if this Act were read without reference to this section, have been included under subsection 135(7), in respect of the share, in computing the taxpayer’s income for the taxation year in which the share was issued, at the earliest time at which(a)the paid-up capital of the share is reduced otherwise than by way of a redemption of the share; or(b)the taxpayer pledges, or for civil law hypothecates, assigns or in any way alienates the share as security for indebtedness of any kind.Marginal note:Reacquisition(5)A taxpayer who is deemed by subsection (4) to have disposed at any time of a tax deferred cooperative share is deemed to have reacquired the share, immediately after that time, at a cost equal to the taxpayer’s proceeds of disposition from that disposition.Marginal note:Exclusion from withholding obligation(6)Subsection 135(3) does not apply to a payment pursuant to an allocation in proportion to patronage that is paid by an agricultural cooperative corporation through the issuance of a tax deferred cooperative share.Marginal note:Withholding on redemption(7)A person or partnership (in this subsection referred to as the “redeeming entity”) that redeems, acquires or cancels a shareholder’s share shall withhold and forthwith remit to the Receiver General, on account of the shareholder’s tax liability, 15% from the amount otherwise payable on the redemption, acquisition or cancellation, if(a)the share was, at the time it was issued, a tax deferred cooperative share;(b)the redeeming entity is the corporation that issued the share, or a person or partnership with whom the corporation does not deal at arm’s length; and(c)the shareholder is not a trust whose taxable income is exempt from tax under this Part because of paragraph 149(1)(r) or (x).Marginal note:Application of subsections 84(2) and (3)(8)Subsections 84(2) and (3) do not apply to a tax deferred cooperative share.Marginal note:Application of subsection (10)(9)Subsection (10) applies in respect of the disposition, after September 28, 2009, by a taxpayer of a tax deferred cooperative share (in this subsection and subsection (10) referred to as the “old share”) of an agricultural cooperative corporation if(a)the disposition results from the acquisition, cancellation or redemption of the old share in the course of a reorganization of the capital of the corporation;(b)in exchange for the old share the corporation issues to the taxpayer a share (in this subsection and subsection (10) referred to as the “new share”) that is described in all of paragraphs (b) to (d) of the definitiontax deferred cooperative sharein subsection (1); and(c)the amount of paid-up capital, and the amount, if any, that the taxpayer is entitled to receive on a redemption, acquisition or cancellation, of the new share are equal to those amounts, respectively, in respect of the old share.Marginal note:Shares issued on corporate reorganizations(10)If this subsection applies in respect of an exchange of a taxpayer’s old share for a new share, for the purposes of this section (other than subsection (9)),(a)the new share issued in exchange for the old share is deemed to have been issued, pursuant to an allocation in proportion to patronage, at the time the old share was issued; and(b)provided that no person or partnership receives at any time any consideration (other than the new share) in exchange for the old share, for the purposes of subsections (2) and (7) the taxpayer is deemed to have disposed of the old share for nil proceeds.
(a)farming (including, if the person carrying on the business is a corporation described in paragraph (a) of the definitionagricultural cooperative corporation, the production, processing, storing and wholesale marketing of the products of its members’ farming activities); or(b)the provision of goods or services (other than financial services) that are required for farming. (entreprise d’agriculture)
(a)that was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations; and(b)that has at that time(i)as its principal business an agricultural business, or(ii)members, making up at least 75% of all members of the corporation, each of whom(A)is an agricultural cooperative corporation, or(B)has as their principal business a farming business. (coopérative agricole)
(i)as its principal business an agricultural business, or(ii)members, making up at least 75% of all members of the corporation, each of whom(A)is an agricultural cooperative corporation, or(B)has as their principal business a farming business. (coopérative agricole)
(A)is an agricultural cooperative corporation, or(B)has as their principal business a farming business. (coopérative agricole)
(a)before the disposition,(i)the agricultural cooperative corporation is notified in writing that the taxpayer has after the share was issued become disabled and permanently unfit for work, or termi­nally ill, or(ii)the taxpayer ceases to be a member of the agricultural cooperative corporation; or(b)the agricultural cooperative corporation is notified in writing that the share is held by a person on whom the share has devolved as a consequence of the death of the taxpayer. (disposition admissible)
(i)the agricultural cooperative corporation is notified in writing that the taxpayer has after the share was issued become disabled and permanently unfit for work, or termi­nally ill, or(ii)the taxpayer ceases to be a member of the agricultural cooperative corporation; or
(a)an individual resident in Canada;(b)an agricultural cooperative corporation;(c)a corporation resident in Canada that carries on the business of farming in Canada; or(d)a partnership that carries on the business of farming in Canada, all of the members of which are described in any of paragraphs (a) to (c) or this paragraph. (membre admissible)
(a)issued, after 2005 and before 2026, by an agricultural cooperative corporation to a person or partnership that is at the time the share is issued an eligible member of the agricultural cooperative corporation, pursuant to an allocation in proportion to patronage;(b)the holder of which is not entitled to receive on the redemption, cancellation or acquisition of the share by the agricultural cooperative corporation or by any person with whom the agricultural cooperative corporation does not deal at arm’s length an amount that is greater than the amount that would, if this Act were read without reference to this section, be included under subsection 135(7) in computing the eligible member’s income for their taxation year in which the share was issued;(c)that has not before that time been deemed by subsection (4) to have been disposed of; and(d)that is of a class(i)the terms of which provide that the agricultural cooperative corporation shall not, otherwise than pursuant to an allowable disposition, redeem, acquire or cancel a share of the class before the day that is five years after the day on which the share was issued, and(ii)that is identified by the agricultural cooperative corporation in prescribed form and manner as a class of tax deferred cooperative shares. (part à imposition différée)
(i)the terms of which provide that the agricultural cooperative corporation shall not, otherwise than pursuant to an allowable disposition, redeem, acquire or cancel a share of the class before the day that is five years after the day on which the share was issued, and(ii)that is identified by the agricultural cooperative corporation in prescribed form and manner as a class of tax deferred cooperative shares. (part à imposition différée)
(a)the total of(i)the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and(ii)the amount, if any, that is included in computing the taxpayer’s income under this Part for the particular taxation year because of an election described in subparagraph (2)(a)(ii),
(i)the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and(ii)the amount, if any, that is included in computing the taxpayer’s income under this Part for the particular taxation year because of an election described in subparagraph (2)(a)(ii),
(b)the total of all amounts each of which is the taxpayer’s proceeds of disposition of a tax deferred cooperative share that the taxpayer disposed of in the particular taxation year. (solde libéré d’impôt)
(a)the lesser of(i)the total of all amounts, in respect of the taxpayer’s receipt in the particular taxation year of tax deferred cooperative shares, that would, if this Act were read without reference to this section, be included under subsection 135(7) in computing the taxpayer’s income for the particular taxation year, and(ii)the greater of nil and the amount, if any, specified by the taxpayer in an election in prescribed form that is filed with the taxpayer’s return of income for the particular taxation year, and(b)the amount, if any, by which(i)the total of all amounts each of which is the taxpayer’s proceeds of disposition of a tax deferred cooperative share disposed of by the taxpayer in the particular taxation yearexceeds(ii)the total of(A)the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and(B)the amount, if any, that is included in computing the taxpayer’s income for the particular taxation year because of an election described in subparagraph (a)(ii).
(i)the total of all amounts, in respect of the taxpayer’s receipt in the particular taxation year of tax deferred cooperative shares, that would, if this Act were read without reference to this section, be included under subsection 135(7) in computing the taxpayer’s income for the particular taxation year, and(ii)the greater of nil and the amount, if any, specified by the taxpayer in an election in prescribed form that is filed with the taxpayer’s return of income for the particular taxation year, and
(i)the total of all amounts each of which is the taxpayer’s proceeds of disposition of a tax deferred cooperative share disposed of by the taxpayer in the particular taxation year
(ii)the total of(A)the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and(B)the amount, if any, that is included in computing the taxpayer’s income for the particular taxation year because of an election described in subparagraph (a)(ii).
(A)the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and(B)the amount, if any, that is included in computing the taxpayer’s income for the particular taxation year because of an election described in subparagraph (a)(ii).
(a)the paid-up capital of the share is reduced otherwise than by way of a redemption of the share; or(b)the taxpayer pledges, or for civil law hypothecates, assigns or in any way alienates the share as security for indebtedness of any kind.
(a)the share was, at the time it was issued, a tax deferred cooperative share;(b)the redeeming entity is the corporation that issued the share, or a person or partnership with whom the corporation does not deal at arm’s length; and(c)the shareholder is not a trust whose taxable income is exempt from tax under this Part because of paragraph 149(1)(r) or (x).
(a)the disposition results from the acquisition, cancellation or redemption of the old share in the course of a reorganization of the capital of the corporation;(b)in exchange for the old share the corporation issues to the taxpayer a share (in this subsection and subsection (10) referred to as the “new share”) that is described in all of paragraphs (b) to (d) of the definitiontax deferred cooperative sharein subsection (1); and(c)the amount of paid-up capital, and the amount, if any, that the taxpayer is entitled to receive on a redemption, acquisition or cancellation, of the new share are equal to those amounts, respectively, in respect of the old share.
(a)the new share issued in exchange for the old share is deemed to have been issued, pursuant to an allocation in proportion to patronage, at the time the old share was issued; and(b)provided that no person or partnership receives at any time any consideration (other than the new share) in exchange for the old share, for the purposes of subsections (2) and (7) the taxpayer is deemed to have disposed of the old share for nil proceeds.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2006, c. 4, s. 802013, c. 34, s. 2822015, c. 36, s. 132021, c. 23, s. 28
135.2(1)The following definitions apply in this section.application for continuanceapplication for continuancemeans the application for continuance referred to in paragraph (a) of the definitionCanadian Wheat Board continuance. (demande de prorogation)Canadian Wheat BoardCanadian Wheat Boardmeans the corporation referred to in subsection 4(1) of theCanadian Wheat Board (Interim Operations) Act, as it read before its repeal, that is continued under theCanada Business Corporations Actpursuant to the application for continuance. (Commission canadienne du blé)Canadian Wheat Board continuanceCanadian Wheat Board continuancemeans the series of transactions or events that includes(a)the application for continuance under theCanada Business Corporations Actthat is(i)made by the corporation referred to in subsection 4(1) of theCanadian Wheat Board (Interim Operations) Act, as it read before its repeal, and(ii)approved by the Minister of Agriculture and Agri-Food under Part III of theMarketing Freedom for Grain Farmers Act;(b)the issuance of a promissory note or other evidence of indebtedness by the Canadian Wheat Board to the eligible trust; and(c)the disposition of the eligible debt by the eligible trust, in the same taxation year of the trust in which the eligible debt is issued to it, in exchange for consideration that includes the issuance of shares by the Canadian Wheat Board that have a total fair market value at the time of their issuance that is equal to the amount by which the principal amount of the eligible debt exceeds $10 million. (prorogation de la Commission canadienne du blé)eligible debteligible debtmeans the promissory note or other evidence of indebtedness referred to in paragraph (b) of the definitionCanadian Wheat Board continuance. (dette admissible)eligible shareeligible sharemeans a common share of the capital stock of the Canadian Wheat Board that is issued in exchange for the eligible debt, as referred to in paragraph (c) of the definitionCanadian Wheat Board continuance. (action admissible)eligible trusteligible trust, at any time, means a trust that meets the following conditions:(a)it was established in connection with the application for continuance;(b)it is resident in Canada at that time;(c)immediately before it acquired the eligible debt, it held only property of nominal value;(d)it is not exempt because of subsection 149(1) from tax on its taxable income for any period in its taxation year that includes that time;(e)all of the interests of beneficiaries under it at that time are described by reference to units that are eligible units in it;(f)the only persons who have acquired an interest as a beneficiary under the trust from it before that time are persons who were participating farmers at the time they acquired the interest;(g)all or substantially all of the fair market value of its property at that time is based on the value of property that is(i)eligible debt,(ii)shares of the capital stock of the Canadian Wheat Board, or(iii)property described in paragraph (a) or (b) of the definitionqualified investmentif in section 204 or a deposit with a credit union;(h)the property that it has paid or distributed at or before that time to a beneficiary under the trust in satisfaction of the beneficiary’s eligible unit in the trust is(i)money denominated in Canadian dollars, or(ii)shares distributed as an eligible wind-up distribution of the trust; and(i)at no time in its taxation year that includes that time is any other trust an eligible trust. (fiducie admissible)eligible uniteligible unit, in a trust at any time, means a unit that describes all or part of an interest as a beneficiary under the trust, if(a)the total of all amounts each of which is the value of a unit at the time it was issued by the trust to a participating farmer does not exceed the amount by which the principal amount of the eligible debt exceeds $10 million; and(b)all of the interests as a beneficiary under the trust arefixed interestsif (as defined in subsection 251.2(1)) in the trust. (unité admissible)eligible wind-up distributioneligible wind-up distribution, of a trust, means a distribution of property by the trust to a person if(a)the distribution includes a share of the capital stock of the Canadian Wheat Board that is listed on a designated stock exchange;(b)the only property (other than a share described in paragraph (a)) distributed by the trust on the distribution is money denominated in Canadian dollars;(c)the distribution results in the disposition of all of the person’s interest as a beneficiary under the trust; and(d)the trust ceases to exist immediately after the distribution or immediately after the last of a series of eligible wind-up distributions (determined without reference to this paragraph) of the trust that includes the distribution. (distribution admissible sur liquidation)participating farmerparticipating farmer, in respect of a trust at any time, means a person(a)who is eligible to receive units of the trust pursuant to the plan under which the trust directs its trustees to grant units to persons who have delivered grain under a contract with the Canadian Wheat Board on or after August 1, 2013; and(b)engaged in the production of grain or any person entitled, as landlord, vendor or mortgagee or hypothecary creditor, to grain produced by a person engaged in the production of grain or to any share of that grain. (agriculteur participant)personpersonincludes a partnership. (personne)Marginal note:Trust acquires an eligible debt(2)If, at any time, an eligible trust acquires eligible debt, the principal amount of the eligible debt is deemed not to be included in computing the income of the eligible trust for the taxation year of the eligible trust that includes that time.Marginal note:Disposition of eligible debt(3)If, at any time, an eligible trust disposes of eligible debt in exchange for consideration that includes the issuance of eligible shares(a)for the purpose of computing the income of the eligible trust for its taxation year that includes that time(i)an amount, in respect of the disposition of the eligible debt, equal to the fair market value of all property (other than eligible shares) received on the exchange by the trust is included,(ii)no amount in respect of the disposition of the eligible debt is included (other than the amount described in subparagraph (i)), and(iii)no amount in respect of the receipt of the eligible shares is included;(b)the cost to the eligible trust of each eligible share is deemed to be nil;(c)in computing the paid-up capital in respect of the class of the capital stock of the Canadian Wheat Board that includes the eligible shares, at any time after the shares are issued, there shall be deducted an amount equal to the amount of the paid-up capital in respect of that class at the time the shares are issued;(d)subsection 75(2) does not apply to property(i)that is held by the trust in a taxation year that ends at or after that time, and(ii)that is(A)received by the trust on the exchange, or(B)a substitute for property described in subparagraph (i); and(e)subsections 84(2) and (3) and section 85 do not apply at any time to eligible shares.Marginal note:Eligible trust(4)The following rules apply in respect of a trust that is an eligible trust at any time in a taxation year of the trust:(a)in computing the trust’s income for the year(i)no deduction may be made by the trust under subsection 104(6), except to the extent of the income of the trust (determined without reference to subsection 104(6)) for the year that is paid in the year, and(ii)no deduction may be made by the trust under subsection 104(6), if the trust ceased to be an eligible trust at the beginning of the following taxation year;(b)for the purposes of applying Part XII.2 in respect of the year(i)the trust’s designated income for the year is deemed to be the trust’s income for the year determined without reference to subsections 104(6) and (30), and(ii)the designated beneficiaries under the trust at any time in the year are deemed to include any beneficiary under the trust that is at that time(A)non-resident,(B)a partnership (other than a partnership that is, throughout its fiscal period that includes that time, a Canadian partnership), or(C)exempt because of subsection 149(1) from tax under this Part on the person’s taxable income;(c)each property held by the trust that is the eligible debt or an eligible share is deemed to have a cost amount to the trust of nil;(d)if the trust disposes of a property,(i)subject to subsection (14), the disposition is deemed to occur for proceeds equal to the fair market value of the property immediately before the disposition,(ii)the gain, if any, of the trust from the disposition is(A)deemed not to be a capital gain, and(B)to be included in computing the trust’s income for the trust’s taxation year that includes the time of disposition, and(iii)the loss, if any, of the trust from the disposition is(A)deemed not to be a capital loss, and(B)to be deducted in computing the trust’s income for the trust’s taxation year that includes the time of disposition;(e)the trust is deemed not to be a(i)personal trust,(ii)unit trust,(iii)trust prescribed for the purpose of subsection 107(2), or(iv)trust any interest in which is an excluded right or interest in applying section 128.1;(f)anysecurity(in this paragraph and paragraph (g), as defined in subsection 122.1(1)) of the trust that is held by a trust governed by a deferred profit sharing plan, RDSP, RESP, RRIF, RRSP or TFSA (referred to in this paragraph and paragraph (g) as theregistered plan trust) is deemed not to be a qualified investment for the registered plan trust;(g)if a registered plan trust governed by a TFSA acquires at any time a security of the trust, Part XI.01 applies in respect of the security as though the acquisition is an advantage(i)in relation to the TFSA that is extended at that time to the controlling individual of the TFSA, and(ii)that is a benefit the fair market value of which is the fair market value of the security at that time; and(h)paragraph (h) of the definitiondispositionin subsection 248(1) does not apply in respect of eligible units of the trust.Marginal note:Participating farmer — acquisition of eligible unit(5)If, at any time, a participating farmer acquires an eligible unit in an eligible trust from the trust,(a)no amount in respect of the acquisition of the eligible unit is included in computing the income of the participating farmer; and(b)the cost amount to the participating farmer of the eligible unit is deemed to be nil.Marginal note:Eligible unit issued to estate(6)If a participating farmer has, immediately before the participating farmer’s death, not received an eligible unit of an eligible trust for which the participating farmer was eligible — pursuant to the plan under which the eligible trust directs its trustees to grant units to persons who have delivered grain under a contract with the Canadian Wheat Board on or after August 1, 2013 — and the eligible trust issues the unit to the estate that arose on and as a consequence of the death,(a)the participating farmer is deemed to have acquired the unit at the time that is immediately before the time that is immediately before the death, as a participating farmer from the eligible trust, and to own the unit at the time that is immediately before the death;(b)for the purpose of paragraph (f) of the definitioneligible trustin subsection (1), the estate is deemed not to have acquired the unit from the trust; and(c)for the purposes of paragraphs (8)(b) and (c), the estate is deemed to have acquired the eligible unit on and as a consequence of the death.Marginal note:Eligible unit — gain (loss)(7)If a person disposes of an eligible unit in a trust that is an eligible trust at the time of the disposition(a)the gain, if any, of the person from the disposition is(i)deemed not to be a capital gain, and(ii)to be included in computing the person’s income for the person’s taxation year that includes that time; and(b)the loss, if any, of the person from the disposition is(i)deemed not to be a capital loss, and(ii)to be deducted in computing the person’s income for the person’s taxation year that includes that time.Marginal note:Death of a participating farmer(8)If, immediately before an individual’s death, the individual owns an eligible unit that the individual acquired as a participating farmer from an eligible trust(a)the individual is deemed to dispose (referred to in this subsection as theparticular disposition) of the eligible unit immediately before death;(b)if paragraph (d) does not apply,(i)the individual’s proceeds from the particular disposition are deemed to be equal to the unit’s fair market value immediately before the particular disposition,(ii)the gain from the particular disposition is deemed to be included, under subsection 70(1) and not under any other provision, in the individual’s income for the individual’s taxation year in which the individual dies,(iii)subsection 159(5) applies in respect of the individual who has died (determined as though a reference in that subsection to subsection 70(5.2) includes a reference to subsection 70(1) in the application of subsection 159(5) to the gain from the particular disposition) in respect of the particular disposition, and(iv)the person who acquires the eligible unit as a consequence of the individual’s death is deemed to have acquired the eligible unit at the time of the death at a cost equal to the individual’s proceeds, described in subparagraph (i), from the particular disposition;(c)paragraph (d) applies if(i)the individual is resident in Canada immediately before the individual’s death,(ii)the individual’s graduated rate estate acquires the eligible unit on and as a consequence of the death,(iii)the individual’s legal representative elects in prescribed form in the course of administering the individual’s graduated rate estate that paragraph (b) not apply to the individual in respect of the particular disposition,(iv)the election is filed with the individual’s return of income under this Part for the individual’s taxation year in which the death occurred,(v)the estate distributes the eligible unit to the individual’s spouse or common-law partner at a time at which it is the individual’s graduated rate estate,(vi)the individual’s spouse or common-law partner is resident in Canada at the time of the distribution, and(vii)the estate does not dispose of the unit before the distribution; and(d)if this paragraph applies,(i)the individual’s gain from the disposition is deemed to be nil,(ii)the cost amount to the estate of the eligible unit is deemed to be nil,(iii)any amount that is included in the estate’s income (determined without reference to this subparagraph and subsections 104(6) and (12)) for a taxation year from a source that is the eligible unit is, notwithstanding subsection 104(24), deemed(A)to have become payable in that taxation year by the estate to the spouse or common-law partner, and(B)not be have become payable to any other beneficiary,(iv)the distribution is deemed to be a disposition by the estate of the eligible unit for proceeds equal to the cost amount to the estate of the unit,(v)the part of the spouse or common-law partner’s interest as a beneficiary under the estate that is disposed of as a result of the distribution is deemed to be disposed of for proceeds of disposition equal to the cost amount to the spouse or common-law partner of that part immediately before the disposition,(vi)the cost amount to the spouse or common-law partner of the eligible unit is deemed to be nil, and(vii)the spouse or common-law partner is, except for the purposes of paragraph (c), deemed to have acquired the eligible unit as a participating farmer from an eligible trust.Marginal note:Participating farmer — disposition of eligible unit(9)If, at any time, an eligible unit of an eligible trust that was acquired by a participating farmer from the eligible trust is disposed of by the participating farmer (other than a disposition described in paragraph (8)(a), (10)(d) or (11)(b)),(a)the participating farmer’s proceeds from the disposition are deemed to be equal to the fair market value of the unit immediately before its disposition;(b)if the disposition results from a distribution of money denominated in Canadian dollars by the trust to the participating farmer in a taxation year of the trust, the money is proceeds from the disposition in that taxation year by the trust of other property and, at the time of the disposition, the participating farmer is not a person described in any of clauses (4)(b)(ii)(A) to (C), the trust’s gain, if any, from the disposition of the other property is reduced to the extent that the proceeds so distributed would, in the absence of this paragraph, be included under subsection 104(13) in the participating farmer’s income for the taxation year of the participating farmer in which the taxation year of the trust ends; and(c)if the participating farmer is a Canadian-controlled private corporation, for the purposes of section 125, the gain from the disposition is deemed to be income from an active business carried on by the corporation.Marginal note:Eligible wind-up distribution(10)If, at any time, an eligible trust distributes property as an eligible wind-up distribution of the trust to a person(a)subsection 107(2.1) does not apply in respect of the distribution;(b)the trust is deemed to have disposed of the property for proceeds equal to its fair market value at that time;(c)the trust’s gain from the disposition of the property is, notwithstanding subsection 104(24), deemed(i)to have become payable at that time by the trust to the person, and(ii)not to have become payable to any other beneficiary;(d)the person is deemed to acquire the property at a cost equal to the trust’s proceeds from the disposition;(e)the person’s proceeds from the disposition of the eligible unit, or part of it, that results from the distribution are deemed to be equal to the cost amount of the unit to the person immediately before that time; and(f)for greater certainty, no part of the trust’s gain from the disposition is to be included in the cost to the person of the property, other than as determined by paragraph (d).Marginal note:Ceasing to be an eligible trust(11)If a trust ceases to be an eligible trust at a particular time(a)subsection 149(10) applies to the trust as if(i)it ceased at that particular time to be exempt from tax under this Part on its taxable income, and(ii)the list of provisions in paragraph 149(10)(c) included a reference to this section; and(b)each person who holds at the particular time an eligible unit in the trust is deemed to have(i)disposed of, at the time that is immediately before the time that is immediately before the particular time, each of the eligible units for proceeds equal to the cost amount of the unit to the person, and(ii)reacquired the eligible unit at the time that is immediately before the particular time at a cost equal to the fair market value of the unit at the time that is immediately before the particular time.Marginal note:Stock dividends — Canadian Wheat Board shares(12)If, at any time, the eligible trust holds an eligible share (or another share of the Canadian Wheat Board acquired before that time as a stock dividend) and the Canadian Wheat Board issues, as a stock dividend paid in respect of such a share, a share of a class of its capital stock, the amount by which the paid-up capital is increased — in respect of the issuance of all shares paid by the Canadian Wheat Board to the eligible trust as the stock dividend or any other stock dividend paid to other shareholders in connection with that stock dividend — for all classes of shares of the Canadian Wheat Board is, for the purposes of this Act, deemed to be no more than $1.Marginal note:Reorganization of capital — Canadian Wheat Board(13)Subsection (14) applies in respect of the disposition by an eligible trust of all of the shares (in this subsection and subsection (14) referred to collectively as theold sharesand individually as anold share) of a class of the capital stock of the Canadian Wheat Board owned by the eligible trust if(a)the disposition of the old shares results from the acquisition, cancellation or redemption in the course of a reorganization of the capital of the Canadian Wheat Board;(b)the Canadian Wheat Board issues to the eligible trust, in exchange for the old shares, shares (in this subsection and subsection (14) referred to collectively as thenew sharesand individually as anew share) of a class of the capital stock of the Canadian Wheat Board the terms and conditions of which — including the entitlement to receive an amount on a redemption, acquisition or cancellation — are in all material respects the same as those of the old shares;(c)the amount that is the total fair market value of all of the new shares acquired by the eligible trust on the exchange equals the total fair market value of all of the old shares disposed of by the eligible trust; and(d)the amount that is the total paid-up capital in respect of all of the new shares acquired by the eligible trust on the exchange is equal to the amount that is the total paid-up capital in respect of all of the old shares disposed of on the exchange.Marginal note:Rollover of shares on reorganization(14)If this subsection applies in respect of an exchange of an eligible trust’s old share for a new share,(a)the old share is deemed to be disposed of by the eligible trust for proceeds equal to its cost amount to the eligible trust;(b)the new share acquired for the old share referred to in paragraph (a) is deemed to be acquired for a cost equal to the amount referred to in paragraph (a);(c)if the old share was an eligible share, the new share is deemed to be an eligible share; and(d)if new shares are deemed to be eligible shares because of paragraph (c) and those shares are included in a class of shares that also includes other shares that are not eligible shares, those eligible shares are deemed to have been issued in a separate series of the class and the other shares are deemed to have been issued in a separate series of the class.Marginal note:Information filing requirement(15)A trust shall file with the Minister a prescribed form in prescribed manner in respect of each taxation year of the trust in which it is an eligible trust on or before the trust’s filing-due date for the year.Marginal note:Failure to file prescribed form(16)If a trust fails to file the form required by subsection (15) on or before the day that is the trust’s filing-due date for a taxation year,(a)in addition to any other penalty for which the trust may be liable under this Act in respect of the failure, the trust is liable to a penalty equal to the product obtained when $1,000 is multiplied by the number of days during which the failure continues; and(b)if, within 30 days after the trust is served personally or by registered mail with a demand in writing from the Minister for the form to be filed, the trust has not filed the form with the Minister, the trust is deemed to cease to be an eligible trust at the end of the day on which the demand was served.
(a)the application for continuance under theCanada Business Corporations Actthat is(i)made by the corporation referred to in subsection 4(1) of theCanadian Wheat Board (Interim Operations) Act, as it read before its repeal, and(ii)approved by the Minister of Agriculture and Agri-Food under Part III of theMarketing Freedom for Grain Farmers Act;(b)the issuance of a promissory note or other evidence of indebtedness by the Canadian Wheat Board to the eligible trust; and(c)the disposition of the eligible debt by the eligible trust, in the same taxation year of the trust in which the eligible debt is issued to it, in exchange for consideration that includes the issuance of shares by the Canadian Wheat Board that have a total fair market value at the time of their issuance that is equal to the amount by which the principal amount of the eligible debt exceeds $10 million. (prorogation de la Commission canadienne du blé)
(i)made by the corporation referred to in subsection 4(1) of theCanadian Wheat Board (Interim Operations) Act, as it read before its repeal, and(ii)approved by the Minister of Agriculture and Agri-Food under Part III of theMarketing Freedom for Grain Farmers Act;
(a)it was established in connection with the application for continuance;(b)it is resident in Canada at that time;(c)immediately before it acquired the eligible debt, it held only property of nominal value;(d)it is not exempt because of subsection 149(1) from tax on its taxable income for any period in its taxation year that includes that time;(e)all of the interests of beneficiaries under it at that time are described by reference to units that are eligible units in it;(f)the only persons who have acquired an interest as a beneficiary under the trust from it before that time are persons who were participating farmers at the time they acquired the interest;(g)all or substantially all of the fair market value of its property at that time is based on the value of property that is(i)eligible debt,(ii)shares of the capital stock of the Canadian Wheat Board, or(iii)property described in paragraph (a) or (b) of the definitionqualified investmentif in section 204 or a deposit with a credit union;(h)the property that it has paid or distributed at or before that time to a beneficiary under the trust in satisfaction of the beneficiary’s eligible unit in the trust is(i)money denominated in Canadian dollars, or(ii)shares distributed as an eligible wind-up distribution of the trust; and(i)at no time in its taxation year that includes that time is any other trust an eligible trust. (fiducie admissible)
(i)eligible debt,(ii)shares of the capital stock of the Canadian Wheat Board, or(iii)property described in paragraph (a) or (b) of the definitionqualified investmentif in section 204 or a deposit with a credit union;
(i)money denominated in Canadian dollars, or(ii)shares distributed as an eligible wind-up distribution of the trust; and
(a)the total of all amounts each of which is the value of a unit at the time it was issued by the trust to a participating farmer does not exceed the amount by which the principal amount of the eligible debt exceeds $10 million; and(b)all of the interests as a beneficiary under the trust arefixed interestsif (as defined in subsection 251.2(1)) in the trust. (unité admissible)
(a)the distribution includes a share of the capital stock of the Canadian Wheat Board that is listed on a designated stock exchange;(b)the only property (other than a share described in paragraph (a)) distributed by the trust on the distribution is money denominated in Canadian dollars;(c)the distribution results in the disposition of all of the person’s interest as a beneficiary under the trust; and(d)the trust ceases to exist immediately after the distribution or immediately after the last of a series of eligible wind-up distributions (determined without reference to this paragraph) of the trust that includes the distribution. (distribution admissible sur liquidation)
(a)who is eligible to receive units of the trust pursuant to the plan under which the trust directs its trustees to grant units to persons who have delivered grain under a contract with the Canadian Wheat Board on or after August 1, 2013; and(b)engaged in the production of grain or any person entitled, as landlord, vendor or mortgagee or hypothecary creditor, to grain produced by a person engaged in the production of grain or to any share of that grain. (agriculteur participant)
(a)for the purpose of computing the income of the eligible trust for its taxation year that includes that time(i)an amount, in respect of the disposition of the eligible debt, equal to the fair market value of all property (other than eligible shares) received on the exchange by the trust is included,(ii)no amount in respect of the disposition of the eligible debt is included (other than the amount described in subparagraph (i)), and(iii)no amount in respect of the receipt of the eligible shares is included;(b)the cost to the eligible trust of each eligible share is deemed to be nil;(c)in computing the paid-up capital in respect of the class of the capital stock of the Canadian Wheat Board that includes the eligible shares, at any time after the shares are issued, there shall be deducted an amount equal to the amount of the paid-up capital in respect of that class at the time the shares are issued;(d)subsection 75(2) does not apply to property(i)that is held by the trust in a taxation year that ends at or after that time, and(ii)that is(A)received by the trust on the exchange, or(B)a substitute for property described in subparagraph (i); and(e)subsections 84(2) and (3) and section 85 do not apply at any time to eligible shares.
(i)an amount, in respect of the disposition of the eligible debt, equal to the fair market value of all property (other than eligible shares) received on the exchange by the trust is included,(ii)no amount in respect of the disposition of the eligible debt is included (other than the amount described in subparagraph (i)), and(iii)no amount in respect of the receipt of the eligible shares is included;
(i)that is held by the trust in a taxation year that ends at or after that time, and(ii)that is(A)received by the trust on the exchange, or(B)a substitute for property described in subparagraph (i); and
(A)received by the trust on the exchange, or(B)a substitute for property described in subparagraph (i); and
(a)in computing the trust’s income for the year(i)no deduction may be made by the trust under subsection 104(6), except to the extent of the income of the trust (determined without reference to subsection 104(6)) for the year that is paid in the year, and(ii)no deduction may be made by the trust under subsection 104(6), if the trust ceased to be an eligible trust at the beginning of the following taxation year;(b)for the purposes of applying Part XII.2 in respect of the year(i)the trust’s designated income for the year is deemed to be the trust’s income for the year determined without reference to subsections 104(6) and (30), and(ii)the designated beneficiaries under the trust at any time in the year are deemed to include any beneficiary under the trust that is at that time(A)non-resident,(B)a partnership (other than a partnership that is, throughout its fiscal period that includes that time, a Canadian partnership), or(C)exempt because of subsection 149(1) from tax under this Part on the person’s taxable income;(c)each property held by the trust that is the eligible debt or an eligible share is deemed to have a cost amount to the trust of nil;(d)if the trust disposes of a property,(i)subject to subsection (14), the disposition is deemed to occur for proceeds equal to the fair market value of the property immediately before the disposition,(ii)the gain, if any, of the trust from the disposition is(A)deemed not to be a capital gain, and(B)to be included in computing the trust’s income for the trust’s taxation year that includes the time of disposition, and(iii)the loss, if any, of the trust from the disposition is(A)deemed not to be a capital loss, and(B)to be deducted in computing the trust’s income for the trust’s taxation year that includes the time of disposition;(e)the trust is deemed not to be a(i)personal trust,(ii)unit trust,(iii)trust prescribed for the purpose of subsection 107(2), or(iv)trust any interest in which is an excluded right or interest in applying section 128.1;(f)anysecurity(in this paragraph and paragraph (g), as defined in subsection 122.1(1)) of the trust that is held by a trust governed by a deferred profit sharing plan, RDSP, RESP, RRIF, RRSP or TFSA (referred to in this paragraph and paragraph (g) as theregistered plan trust) is deemed not to be a qualified investment for the registered plan trust;(g)if a registered plan trust governed by a TFSA acquires at any time a security of the trust, Part XI.01 applies in respect of the security as though the acquisition is an advantage(i)in relation to the TFSA that is extended at that time to the controlling individual of the TFSA, and(ii)that is a benefit the fair market value of which is the fair market value of the security at that time; and(h)paragraph (h) of the definitiondispositionin subsection 248(1) does not apply in respect of eligible units of the trust.
(i)no deduction may be made by the trust under subsection 104(6), except to the extent of the income of the trust (determined without reference to subsection 104(6)) for the year that is paid in the year, and(ii)no deduction may be made by the trust under subsection 104(6), if the trust ceased to be an eligible trust at the beginning of the following taxation year;
(i)the trust’s designated income for the year is deemed to be the trust’s income for the year determined without reference to subsections 104(6) and (30), and(ii)the designated beneficiaries under the trust at any time in the year are deemed to include any beneficiary under the trust that is at that time(A)non-resident,(B)a partnership (other than a partnership that is, throughout its fiscal period that includes that time, a Canadian partnership), or(C)exempt because of subsection 149(1) from tax under this Part on the person’s taxable income;
(A)non-resident,(B)a partnership (other than a partnership that is, throughout its fiscal period that includes that time, a Canadian partnership), or(C)exempt because of subsection 149(1) from tax under this Part on the person’s taxable income;
(i)subject to subsection (14), the disposition is deemed to occur for proceeds equal to the fair market value of the property immediately before the disposition,(ii)the gain, if any, of the trust from the disposition is(A)deemed not to be a capital gain, and(B)to be included in computing the trust’s income for the trust’s taxation year that includes the time of disposition, and(iii)the loss, if any, of the trust from the disposition is(A)deemed not to be a capital loss, and(B)to be deducted in computing the trust’s income for the trust’s taxation year that includes the time of disposition;
(A)deemed not to be a capital gain, and(B)to be included in computing the trust’s income for the trust’s taxation year that includes the time of disposition, and
(A)deemed not to be a capital loss, and(B)to be deducted in computing the trust’s income for the trust’s taxation year that includes the time of disposition;
(i)personal trust,(ii)unit trust,(iii)trust prescribed for the purpose of subsection 107(2), or(iv)trust any interest in which is an excluded right or interest in applying section 128.1;
(i)in relation to the TFSA that is extended at that time to the controlling individual of the TFSA, and(ii)that is a benefit the fair market value of which is the fair market value of the security at that time; and
(a)no amount in respect of the acquisition of the eligible unit is included in computing the income of the participating farmer; and(b)the cost amount to the participating farmer of the eligible unit is deemed to be nil.
(a)the participating farmer is deemed to have acquired the unit at the time that is immediately before the time that is immediately before the death, as a participating farmer from the eligible trust, and to own the unit at the time that is immediately before the death;(b)for the purpose of paragraph (f) of the definitioneligible trustin subsection (1), the estate is deemed not to have acquired the unit from the trust; and(c)for the purposes of paragraphs (8)(b) and (c), the estate is deemed to have acquired the eligible unit on and as a consequence of the death.
(a)the gain, if any, of the person from the disposition is(i)deemed not to be a capital gain, and(ii)to be included in computing the person’s income for the person’s taxation year that includes that time; and(b)the loss, if any, of the person from the disposition is(i)deemed not to be a capital loss, and(ii)to be deducted in computing the person’s income for the person’s taxation year that includes that time.
(i)deemed not to be a capital gain, and(ii)to be included in computing the person’s income for the person’s taxation year that includes that time; and
(i)deemed not to be a capital loss, and(ii)to be deducted in computing the person’s income for the person’s taxation year that includes that time.
(a)the individual is deemed to dispose (referred to in this subsection as theparticular disposition) of the eligible unit immediately before death;(b)if paragraph (d) does not apply,(i)the individual’s proceeds from the particular disposition are deemed to be equal to the unit’s fair market value immediately before the particular disposition,(ii)the gain from the particular disposition is deemed to be included, under subsection 70(1) and not under any other provision, in the individual’s income for the individual’s taxation year in which the individual dies,(iii)subsection 159(5) applies in respect of the individual who has died (determined as though a reference in that subsection to subsection 70(5.2) includes a reference to subsection 70(1) in the application of subsection 159(5) to the gain from the particular disposition) in respect of the particular disposition, and(iv)the person who acquires the eligible unit as a consequence of the individual’s death is deemed to have acquired the eligible unit at the time of the death at a cost equal to the individual’s proceeds, described in subparagraph (i), from the particular disposition;(c)paragraph (d) applies if(i)the individual is resident in Canada immediately before the individual’s death,(ii)the individual’s graduated rate estate acquires the eligible unit on and as a consequence of the death,(iii)the individual’s legal representative elects in prescribed form in the course of administering the individual’s graduated rate estate that paragraph (b) not apply to the individual in respect of the particular disposition,(iv)the election is filed with the individual’s return of income under this Part for the individual’s taxation year in which the death occurred,(v)the estate distributes the eligible unit to the individual’s spouse or common-law partner at a time at which it is the individual’s graduated rate estate,(vi)the individual’s spouse or common-law partner is resident in Canada at the time of the distribution, and(vii)the estate does not dispose of the unit before the distribution; and(d)if this paragraph applies,(i)the individual’s gain from the disposition is deemed to be nil,(ii)the cost amount to the estate of the eligible unit is deemed to be nil,(iii)any amount that is included in the estate’s income (determined without reference to this subparagraph and subsections 104(6) and (12)) for a taxation year from a source that is the eligible unit is, notwithstanding subsection 104(24), deemed(A)to have become payable in that taxation year by the estate to the spouse or common-law partner, and(B)not be have become payable to any other beneficiary,(iv)the distribution is deemed to be a disposition by the estate of the eligible unit for proceeds equal to the cost amount to the estate of the unit,(v)the part of the spouse or common-law partner’s interest as a beneficiary under the estate that is disposed of as a result of the distribution is deemed to be disposed of for proceeds of disposition equal to the cost amount to the spouse or common-law partner of that part immediately before the disposition,(vi)the cost amount to the spouse or common-law partner of the eligible unit is deemed to be nil, and(vii)the spouse or common-law partner is, except for the purposes of paragraph (c), deemed to have acquired the eligible unit as a participating farmer from an eligible trust.
(i)the individual’s proceeds from the particular disposition are deemed to be equal to the unit’s fair market value immediately before the particular disposition,(ii)the gain from the particular disposition is deemed to be included, under subsection 70(1) and not under any other provision, in the individual’s income for the individual’s taxation year in which the individual dies,(iii)subsection 159(5) applies in respect of the individual who has died (determined as though a reference in that subsection to subsection 70(5.2) includes a reference to subsection 70(1) in the application of subsection 159(5) to the gain from the particular disposition) in respect of the particular disposition, and(iv)the person who acquires the eligible unit as a consequence of the individual’s death is deemed to have acquired the eligible unit at the time of the death at a cost equal to the individual’s proceeds, described in subparagraph (i), from the particular disposition;
(i)the individual is resident in Canada immediately before the individual’s death,(ii)the individual’s graduated rate estate acquires the eligible unit on and as a consequence of the death,(iii)the individual’s legal representative elects in prescribed form in the course of administering the individual’s graduated rate estate that paragraph (b) not apply to the individual in respect of the particular disposition,(iv)the election is filed with the individual’s return of income under this Part for the individual’s taxation year in which the death occurred,(v)the estate distributes the eligible unit to the individual’s spouse or common-law partner at a time at which it is the individual’s graduated rate estate,(vi)the individual’s spouse or common-law partner is resident in Canada at the time of the distribution, and(vii)the estate does not dispose of the unit before the distribution; and
(i)the individual’s gain from the disposition is deemed to be nil,(ii)the cost amount to the estate of the eligible unit is deemed to be nil,(iii)any amount that is included in the estate’s income (determined without reference to this subparagraph and subsections 104(6) and (12)) for a taxation year from a source that is the eligible unit is, notwithstanding subsection 104(24), deemed(A)to have become payable in that taxation year by the estate to the spouse or common-law partner, and(B)not be have become payable to any other beneficiary,(iv)the distribution is deemed to be a disposition by the estate of the eligible unit for proceeds equal to the cost amount to the estate of the unit,(v)the part of the spouse or common-law partner’s interest as a beneficiary under the estate that is disposed of as a result of the distribution is deemed to be disposed of for proceeds of disposition equal to the cost amount to the spouse or common-law partner of that part immediately before the disposition,(vi)the cost amount to the spouse or common-law partner of the eligible unit is deemed to be nil, and(vii)the spouse or common-law partner is, except for the purposes of paragraph (c), deemed to have acquired the eligible unit as a participating farmer from an eligible trust.
(A)to have become payable in that taxation year by the estate to the spouse or common-law partner, and(B)not be have become payable to any other beneficiary,
(a)the participating farmer’s proceeds from the disposition are deemed to be equal to the fair market value of the unit immediately before its disposition;(b)if the disposition results from a distribution of money denominated in Canadian dollars by the trust to the participating farmer in a taxation year of the trust, the money is proceeds from the disposition in that taxation year by the trust of other property and, at the time of the disposition, the participating farmer is not a person described in any of clauses (4)(b)(ii)(A) to (C), the trust’s gain, if any, from the disposition of the other property is reduced to the extent that the proceeds so distributed would, in the absence of this paragraph, be included under subsection 104(13) in the participating farmer’s income for the taxation year of the participating farmer in which the taxation year of the trust ends; and(c)if the participating farmer is a Canadian-controlled private corporation, for the purposes of section 125, the gain from the disposition is deemed to be income from an active business carried on by the corporation.
(a)subsection 107(2.1) does not apply in respect of the distribution;(b)the trust is deemed to have disposed of the property for proceeds equal to its fair market value at that time;(c)the trust’s gain from the disposition of the property is, notwithstanding subsection 104(24), deemed(i)to have become payable at that time by the trust to the person, and(ii)not to have become payable to any other beneficiary;(d)the person is deemed to acquire the property at a cost equal to the trust’s proceeds from the disposition;(e)the person’s proceeds from the disposition of the eligible unit, or part of it, that results from the distribution are deemed to be equal to the cost amount of the unit to the person immediately before that time; and(f)for greater certainty, no part of the trust’s gain from the disposition is to be included in the cost to the person of the property, other than as determined by paragraph (d).
(i)to have become payable at that time by the trust to the person, and(ii)not to have become payable to any other beneficiary;
(a)subsection 149(10) applies to the trust as if(i)it ceased at that particular time to be exempt from tax under this Part on its taxable income, and(ii)the list of provisions in paragraph 149(10)(c) included a reference to this section; and(b)each person who holds at the particular time an eligible unit in the trust is deemed to have(i)disposed of, at the time that is immediately before the time that is immediately before the particular time, each of the eligible units for proceeds equal to the cost amount of the unit to the person, and(ii)reacquired the eligible unit at the time that is immediately before the particular time at a cost equal to the fair market value of the unit at the time that is immediately before the particular time.
(i)it ceased at that particular time to be exempt from tax under this Part on its taxable income, and(ii)the list of provisions in paragraph 149(10)(c) included a reference to this section; and
(i)disposed of, at the time that is immediately before the time that is immediately before the particular time, each of the eligible units for proceeds equal to the cost amount of the unit to the person, and(ii)reacquired the eligible unit at the time that is immediately before the particular time at a cost equal to the fair market value of the unit at the time that is immediately before the particular time.
(a)the disposition of the old shares results from the acquisition, cancellation or redemption in the course of a reorganization of the capital of the Canadian Wheat Board;(b)the Canadian Wheat Board issues to the eligible trust, in exchange for the old shares, shares (in this subsection and subsection (14) referred to collectively as thenew sharesand individually as anew share) of a class of the capital stock of the Canadian Wheat Board the terms and conditions of which — including the entitlement to receive an amount on a redemption, acquisition or cancellation — are in all material respects the same as those of the old shares;(c)the amount that is the total fair market value of all of the new shares acquired by the eligible trust on the exchange equals the total fair market value of all of the old shares disposed of by the eligible trust; and(d)the amount that is the total paid-up capital in respect of all of the new shares acquired by the eligible trust on the exchange is equal to the amount that is the total paid-up capital in respect of all of the old shares disposed of on the exchange.
(a)the old share is deemed to be disposed of by the eligible trust for proceeds equal to its cost amount to the eligible trust;(b)the new share acquired for the old share referred to in paragraph (a) is deemed to be acquired for a cost equal to the amount referred to in paragraph (a);(c)if the old share was an eligible share, the new share is deemed to be an eligible share; and(d)if new shares are deemed to be eligible shares because of paragraph (c) and those shares are included in a class of shares that also includes other shares that are not eligible shares, those eligible shares are deemed to have been issued in a separate series of the class and the other shares are deemed to have been issued in a separate series of the class.
(a)in addition to any other penalty for which the trust may be liable under this Act in respect of the failure, the trust is liable to a penalty equal to the product obtained when $1,000 is multiplied by the number of days during which the failure continues; and(b)if, within 30 days after the trust is served personally or by registered mail with a demand in writing from the Minister for the form to be filed, the trust has not filed the form with the Minister, the trust is deemed to cease to be an eligible trust at the end of the day on which the demand was served.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2016, c. 7, s. 38
136(1)Notwithstanding any other provision of this Act, a cooperative corporation that would, but for this section, be a private corporation is deemed not to be a private corporation except for the purposes of section 15.1, paragraphs 87(2)(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)(e.2)), the definitionsexcessive eligible dividend designation,general rate income poolandlow rate income poolin subsection 89(1), subsections 89(4) to (6) and (8) to (10), sections 123.4, 125, 125.1, 127 and 127.1, the definitionmark-to-market propertyin subsection 142.2(1), sections 152 and 157, subsection 185.2(3), the definitionsmall business corporationin subsection 248(1) (as it applies for the purposes of paragraph 39(1)(c)) and subsection 249(3.1).Definition ofcooperative corporation(2)In this section,cooperative corporationmeans a corporation that was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations, for the purpose of marketing (including processing incident to or connected to the marketing) natural products belonging to or acquired from its members or customers, of purchasing supplies, equipment or household necessaries for or to be sold to its members or customers or of performing services for its members or customers, if(a)the statute by or under which it was incorporated, its charter, articles of association or by-laws or its contracts with its members or its members and customers held out the prospect that payments would be made to them in proportion to patronage;(b)none of its members (except other cooperative corporations) have more than one vote in the conduct of the affairs of the corporation;(c)at least 90% of its members are individuals, other cooperative corporations, or corporations or partnerships that carry on the business of farming; and(d)at least 90% of its shares, if any, are held by members described in paragraph (c) or by trusts governed by registered retirement savings plans, registered retirement income funds, TFSAs or registered education savings plans, the annuitants, holders or subscribers under which are members described in that paragraph.
(a)the statute by or under which it was incorporated, its charter, articles of association or by-laws or its contracts with its members or its members and customers held out the prospect that payments would be made to them in proportion to patronage;(b)none of its members (except other cooperative corporations) have more than one vote in the conduct of the affairs of the corporation;(c)at least 90% of its members are individuals, other cooperative corporations, or corporations or partnerships that carry on the business of farming; and(d)at least 90% of its shares, if any, are held by members described in paragraph (c) or by trusts governed by registered retirement savings plans, registered retirement income funds, TFSAs or registered education savings plans, the annuitants, holders or subscribers under which are members described in that paragraph.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1361994, c. 7, Sch