Eastern Daylight Saving Time, June 18, 1987, the terms or conditions of a share of the capital stock of a corporation that are relevant to any matter referred to in any of subparagraphs (b)(i) to (b)(iv) are established or modified or any agreement in respect of any such matter, to which the corporation or a specified person in relation to the corporation is a party, is changed or entered into, the share shall, for the purpose of determining after the particular time whether it is a taxable preferred share, be deemed to have been issued at that particular time, unless(i)the share is a share described in paragraph (b) of the definitiongrandfathered sharein this subsection, and(ii)the particular time is before December 16, 1987 and before the time at which the share is first issued,(f)an agreement in respect of a share of the capital stock of a corporation shall be read without reference to that part of the agreement under which a person agrees to acquire the share for an amount(i)in the case of a share the agreement in respect of which provides that the share is to be acquired within 60 days after the day on which the agreement was entered into, that does not exceed the greater of the fair market value of the share at the time the agreement was entered into, determined without reference to the agreement, and the fair market value of the share at the time of the acquisition, determined without reference to the agreement, or(ii)that does not exceed the fair market value of the share at the time of the acquisition, determined without reference to the agreement, or for an amount determined by reference to the assets or earnings of the corporation where that determination may reasonably be considered to be used to determine an amount that does not exceed the fair market value of the share at the time of the acquisition, determined without reference to the agreement,(g)where(i)it may reasonably be considered that the dividends that may be declared or paid to a shareholder at any time on a share (other than a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection during the applicable time period referred to in that paragraph) of the capital stock of a corporation issued after December 15, 1987 or acquired after June 15, 1988 are derived primarily from dividends received on taxable preferred shares of the capital stock of another corporation, and(ii)it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1 or VI.1,the share shall be deemed at that time to be a taxable preferred share, and(h)specified person, in relation to any particular person, means another person with whom the particular person does not deal at arm’s length or any partnership or trust of which the particular person or the other person is a member or beneficiary, respectively; (action privilégiée imposable)
(i)this definition were read without reference to paragraph (f),(ii)the other share were issued after June 18, 1987, and(iii)the other share were not a grandfathered share, a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection,
(i)this definition were read without reference to paragraph (f),(ii)the other share were issued after June 18, 1987, and(iii)the other share were not a grandfathered share, a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection,
(i)the share is a share described in paragraph (b) of the definitiongrandfathered sharein this subsection, and(ii)the particular time is before December 16, 1987 and before the time at which the share is first issued,
(i)in the case of a share the agreement in respect of which provides that the share is to be acquired within 60 days after the day on which the agreement was entered into, that does not exceed the greater of the fair market value of the share at the time the agreement was entered into, determined without reference to the agreement, and the fair market value of the share at the time of the acquisition, determined without reference to the agreement, or(ii)that does not exceed the fair market value of the share at the time of the acquisition, determined without reference to the agreement, or for an amount determined by reference to the assets or earnings of the corporation where that determination may reasonably be considered to be used to determine an amount that does not exceed the fair market value of the share at the time of the acquisition, determined without reference to the agreement,
(i)it may reasonably be considered that the dividends that may be declared or paid to a shareholder at any time on a share (other than a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection during the applicable time period referred to in that paragraph) of the capital stock of a corporation issued after December 15, 1987 or acquired after June 15, 1988 are derived primarily from dividends received on taxable preferred shares of the capital stock of another corporation, and(ii)it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1 or VI.1,
(a)it may reasonably be considered, having regard to all the circumstances, that the amount of the dividends that may be declared or paid on the share (in this definition referred to as the “dividend entitlement”) is, by way of a formula or otherwise(i)fixed,(ii)limited to a maximum, or(iii)established to be not less than a minimum, or(b)it may reasonably be considered, having regard to all the circumstances, that the amount that the shareholder is entitled to receive in respect of the share on the dissolution, liquidation or winding-up of the corporation (in this definition referred to as the “liquidation entitlement”) is, by way of formula or otherwise(i)fixed,(ii)limited to a maximum, or(iii)established to be not less than a minimum,
(i)fixed,(ii)limited to a maximum, or(iii)established to be not less than a minimum, or
(i)fixed,(ii)limited to a maximum, or(iii)established to be not less than a minimum,
(c)the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all dividends on the share are determined solely by reference to the dividend entitlement of another share of the capital stock of the corporation or of another corporation that controls the corporation that would not be a taxable preferred share if(i)the definitiontaxable preferred sharein this subsection were read without reference to paragraph (f) of that definition,(ii)the other share were issued after June 18, 1987, and(iii)the other share were not a grandfathered share, a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection,(d)the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all the liquidation entitlement is determinable solely by reference to the liquidation entitlement of another share of the capital stock of the corporation or of another corporation that controls the corporation that would not be a taxable preferred share if(i)the definitiontaxable preferred sharein this subsection were read without reference to paragraph (f) of that definition,(ii)the other share were issued after June 18, 1987, and(iii)the other share were not a grandfathered share, a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection, and(e)where(i)it may reasonably be considered that the dividends that may be declared or paid to a shareholder at any time on a share (other than a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection during the applicable time period referred to in that paragraph) of the capital stock of a corporation issued after December 15, 1987 or acquired after June 15, 1988 are derived primarily from dividends received on taxable RFI shares of the capital stock of another corporation, and(ii)it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1,the share shall be deemed at that time to be a taxable RFI share; (action particulière à une institution financière)
(i)the definitiontaxable preferred sharein this subsection were read without reference to paragraph (f) of that definition,(ii)the other share were issued after June 18, 1987, and(iii)the other share were not a grandfathered share, a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection,
(i)the definitiontaxable preferred sharein this subsection were read without reference to paragraph (f) of that definition,(ii)the other share were issued after June 18, 1987, and(iii)the other share were not a grandfathered share, a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection, and
(i)it may reasonably be considered that the dividends that may be declared or paid to a shareholder at any time on a share (other than a prescribed share or a share described in paragraph (e) of the definitionterm preferred sharein this subsection during the applicable time period referred to in that paragraph) of the capital stock of a corporation issued after December 15, 1987 or acquired after June 15, 1988 are derived primarily from dividends received on taxable RFI shares of the capital stock of another corporation, and(ii)it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1,
(a)a person exempt from tax under section 149,(b)a non-resident person, other than a person to which all amounts paid or credited under a derivative forward agreement, a synthetic equity arrangement or a specified synthetic equity arrangement, as the case may be, may reasonably be attributed to the business carried on by the person in Canada through apermanent establishment(as defined in section 8201 of theIncome Tax Regulations) in Canada,(c)a trust resident in Canada (other than a specified mutual fund trust) if any of the interests as a beneficiary under the trust is not afixed interest(as defined in subsection 251.2(1)) in the trust (in this definition referred to as adiscretionary trust),(d)a partnership more than 10% of the fair market value of all interests in which can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by any combination of persons described in paragraphs (a) to (c), or(e)a trust resident in Canada (other than a specified mutual fund trust or a discretionary trust) if more than 10% of the fair market value of all interests as beneficiaries under the trust can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by any combination of persons described in paragraph (a) or (c); (investisseur indifférent relativement à l’impôt)
(a)an amount is or may become(i)payable, under the terms of a borrowing, to a person or partnership that has been assigned an interest in the policy or in an investment account in respect of the policy, or(ii)payable (within the meaning assigned by the definitionamount payablein subsection 138(12)) under a policy loan (as defined in subsection 148(9)) made in accordance with the terms and conditions of the policy, and(b)either(i)the return credited to an investment account in respect of the policy(A)is determined by reference to the rate of interest on the borrowing or policy loan, as the case may be, described in paragraph (a), and(B)would not be credited to the account if the borrowing or policy loan, as the case may be, were not in existence, or(ii)the maximum amount of an investment account in respect of the policy is determined by reference to the amount of the borrowing or policy loan, as the case may be, described in paragraph (a); (police 10/8)
(i)payable, under the terms of a borrowing, to a person or partnership that has been assigned an interest in the policy or in an investment account in respect of the policy, or(ii)payable (within the meaning assigned by the definitionamount payablein subsection 138(12)) under a policy loan (as defined in subsection 148(9)) made in accordance with the terms and conditions of the policy, and
(i)the return credited to an investment account in respect of the policy(A)is determined by reference to the rate of interest on the borrowing or policy loan, as the case may be, described in paragraph (a), and(B)would not be credited to the account if the borrowing or policy loan, as the case may be, were not in existence, or(ii)the maximum amount of an investment account in respect of the policy is determined by reference to the amount of the borrowing or policy loan, as the case may be, described in paragraph (a); (police 10/8)
(A)is determined by reference to the rate of interest on the borrowing or policy loan, as the case may be, described in paragraph (a), and(B)would not be credited to the account if the borrowing or policy loan, as the case may be, were not in existence, or
(a)under the terms or conditions of the share, any agreement relating to the share or any modification of those terms or conditions or that agreement,(i)the owner thereof may cause the share to be redeemed, acquired or cancelled (unless the owner of the share may cause the share to be redeemed, acquired or cancelled by reason only of a right to convert or exchange the share) or cause its paid-up capital to be reduced,(ii)the issuing corporation or any other person or partnership is or may be required to redeem, acquire or cancel, in whole or in part, the share (unless the requirement to redeem, acquire or cancel the share arises by reason only of a right to convert or exchange the share) or to reduce its paid-up capital,(iii)the issuing corporation or any other person or partnership provides or may be required to provide any form of guarantee, security or similar indemnity or covenant (including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder thereof or any person related thereto) with respect to the share, or(iv)the share is convertible or exchangeable unless(A)it is convertible into or exchangeable for(I)another share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share,(II)a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share, or(III)both a share described in subclause (I) and a right or warrant described in subclause (II), and(B)all the consideration receivable for the share on the conversion or exchange is the share described in subclause (A)(I) or the right or warrant described in subclause (A)(II) or both, as the case may be, and, for the purposes of this clause, where a taxpayer may become entitled on the conversion or exchange of a share to receive any particular consideration (other than consideration described in any of subclauses (A)(I) to (A)(III)) in lieu of a fraction of a share, the particular consideration shall be deemed not to be consideration unless it may reasonably be considered that the particular consideration was receivable as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.1) or 258(3), or(b)the owner thereof acquired the share after October 23, 1979 and is(i)a corporation described in any of paragraphs (a) to (e.1) of the definitionspecified financial institution,(ii)a corporation that is controlled by one or more corporations described in subparagraph (i),(iii)a corporation that acquired the share after December 11, 1979 and is related to a corporation referred to in subparagraph (i) or (ii), or(iv)a partnership or trust of which a corporation referred to in subparagraph (i) or (ii) or a person related thereto is a member or a beneficiary,that (either alone or together with any of such corporations, partnerships or trusts) controls or has an absolute or contingent right to control or to acquire control of the issuing corporation,
(i)the owner thereof may cause the share to be redeemed, acquired or cancelled (unless the owner of the share may cause the share to be redeemed, acquired or cancelled by reason only of a right to convert or exchange the share) or cause its paid-up capital to be reduced,(ii)the issuing corporation or any other person or partnership is or may be required to redeem, acquire or cancel, in whole or in part, the share (unless the requirement to redeem, acquire or cancel the share arises by reason only of a right to convert or exchange the share) or to reduce its paid-up capital,(iii)the issuing corporation or any other person or partnership provides or may be required to provide any form of guarantee, security or similar indemnity or covenant (including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder thereof or any person related thereto) with respect to the share, or(iv)the share is convertible or exchangeable unless(A)it is convertible into or exchangeable for(I)another share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share,(II)a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share, or(III)both a share described in subclause (I) and a right or warrant described in subclause (II), and(B)all the consideration receivable for the share on the conversion or exchange is the share described in subclause (A)(I) or the right or warrant described in subclause (A)(II) or both, as the case may be, and, for the purposes of this clause, where a taxpayer may become entitled on the conversion or exchange of a share to receive any particular consideration (other than consideration described in any of subclauses (A)(I) to (A)(III)) in lieu of a fraction of a share, the particular consideration shall be deemed not to be consideration unless it may reasonably be considered that the particular consideration was receivable as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.1) or 258(3), or
(A)it is convertible into or exchangeable for(I)another share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share,(II)a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share, or(III)both a share described in subclause (I) and a right or warrant described in subclause (II), and(B)all the consideration receivable for the share on the conversion or exchange is the share described in subclause (A)(I) or the right or warrant described in subclause (A)(II) or both, as the case may be, and, for the purposes of this clause, where a taxpayer may become entitled on the conversion or exchange of a share to receive any particular consideration (other than consideration described in any of subclauses (A)(I) to (A)(III)) in lieu of a fraction of a share, the particular consideration shall be deemed not to be consideration unless it may reasonably be considered that the particular consideration was receivable as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.1) or 258(3), or
(I)another share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share,(II)a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the issuing corporation or a corporation related to the issuing corporation that, if issued, would not be a term preferred share, or(III)both a share described in subclause (I) and a right or warrant described in subclause (II), and
(i)a corporation described in any of paragraphs (a) to (e.1) of the definitionspecified financial institution,(ii)a corporation that is controlled by one or more corporations described in subparagraph (i),(iii)a corporation that acquired the share after December 11, 1979 and is related to a corporation referred to in subparagraph (i) or (ii), or(iv)a partnership or trust of which a corporation referred to in subparagraph (i) or (ii) or a person related thereto is a member or a beneficiary,
(c)that was issued after November 16, 1978 and before 1980 pursuant to an agreement in writing to do so made before November 17, 1978 (in this definition referred to as an “established agreement”),(d)that was issued as a stock dividend(i)before April 22, 1980 on a share of the capital stock of a public corporation that was not a term preferred share, or(ii)after April 21, 1980 on a share that was, at the time the stock dividend was paid, a share prescribed for the purposes of paragraph (f),(d.1)that is listed on a designated stock exchange in Canada and was issued before April 22, 1980 by(i)a corporation referred to in any of paragraphs (a) to (d) of the definitionspecified financial institutionin this subsection,(ii)a corporation whose principal business is the lending of money or the purchasing of debt obligations or a combination thereof, or(iii)an issuing corporation associated with a corporation described in subparagraph (i) or (ii),(e)for a period not exceeding ten years and, in the case of a share issued after November 12, 1981, for a period not exceeding five years, from the date of its issuance, which share was issued by a corporation resident in Canada,(i)as part of a proposal to, or an arrangement with, its creditors that had been approved by a court under theBankruptcy and Insolvency Act,(ii)at a time when all or substantially all of its assets were under the control of a receiver, receiver-manager, sequestrator or trustee in bankruptcy, or(iii)at a time when, by reason of financial difficulty, the issuing corporation or another corporation resident in Canada with which it does not deal at arm’s length was in default, or could reasonably be expected to default, on a debt obligation held by a person with whom the issuing corporation or the other corporation was dealing at arm’s length and the share was issued either wholly or in substantial part and either directly or indirectly in exchange or substitution for that obligation or a part thereof,and, in the case of a share issued after November 12, 1981, the proceeds from the issue may reasonably be regarded as having been used by the issuing corporation or a corporation with which it was not dealing at arm’s length in the financing of its business carried on in Canada immediately before the share was issued,(f)that is a prescribed share, or(f.1)that is a taxable preferred share held by a specified financial institution that acquired the share(i)before December 16, 1987, or(ii)before 1989 pursuant to an agreement in writing entered into before December 16, 1987,other than a share deemed by paragraph (c) of the definitionshort-term preferred sharein this subsection or by paragraph (i.2) to have been issued after December 15, 1987 or a share that would be deemed by paragraph (e) of the definitiontaxable preferred sharein this subsection to have been issued after December 15, 1987 if the references therein to “8:00 p.m