An appeal does not suspend the execution of the order unless it is so ordered by a judge of the court to which the appeal is made.
Marginal note:Time period not to count
231.8The following periods of time shall not be counted in the computation of the period of time within which an assessment may be made for a taxation year of a taxpayer under subsection 152(4):
(a)where the taxpayer is sent or served with a notice of a requirement under subsection 231.2(1), the period of time between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of; and
(b)where an application is commenced by the Minister under subsection 231.7(1) to order the taxpayer to provide any access, assistance, information or document, the period of time between the day on which the taxpayer files a notice of appearance, or otherwise opposes the application, and the day on which the application is finally disposed of.
Marginal note:Definitions
232(1)In this section,
custodianmeans a person in whose custody a package is placed pursuant to subsection 232(3); (gardien)
judgemeans a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court; (juge)
lawyermeans, in the province of Quebec, an advocate or notary and, in any other province, a barrister or solicitor; (avocat)
officermeans a person acting under the authority conferred by or under sections 231.1 to 231.5; (fonctionnaire)
solicitor-client privilegemeans the right, if any, that a person has in a superior court in the province where the matter arises to refuse to disclose an oral or documentary communication on the ground that the communication is one passing between the person and the person’s lawyer in professional confidence, except that for the purposes of this section an accounting record of a lawyer, including any supporting voucher or cheque, shall be deemed not to be such a communication. (privilège des communications entre client et avocat)
Marginal note:Solicitor-client privilege defence
(2)Where a lawyer is prosecuted for failure to comply with a requirement under section 231.2 with respect to information or a document, the lawyer shall be acquitted if the lawyer establishes to the satisfaction of the court
(a)that the lawyer, on reasonable grounds, believed that a client of the lawyer had a solicitor-client privilege in respect of the information or document; and
(b)that the lawyer communicated to the Minister, or some person duly authorized to act for the Minister, the lawyer’s refusal to comply with the requirement together with a claim that a named client of the lawyer had a solicitor-client privilege in respect of the information or document.
Marginal note:Seizure of certain documents where privilege claimed
(3)Where, pursuant to section 231.3, an officer is about to seize a document in the possession of a lawyer and the lawyer claims that a named client of the lawyer has a solicitor-client privilege in respect of that document, the officer shall, without inspecting, examining or making copies of the document,
(a)seize the document and place it, together with any other document in respect of which the lawyer at the same time makes the same claim on behalf of the same client, in a package and suitably seal and identify the package; and
(b)place the package in the custody of the sheriff of the district or county in which the seizure was made or, if the officer and the lawyer agree in writing on a person to act as custodian, in the custody of that person.
Marginal note:Examination of certain documents where privilege claimed
(3.1)Where, pursuant to section 231.1, an officer is about to inspect or examine a document in the possession of a lawyer or where, pursuant to section 231.2, the Minister has required provision of a document by a lawyer, and the lawyer claims that a named client or former client of the lawyer has a solicitor-client privilege in respect of the document, no officer shall inspect or examine the document and the lawyer shall
(a)place the document, together with any other document in respect of which the lawyer at the same time makes the same claim on behalf of the same client, in a package and suitably seal and identify the package or, if the officer and the lawyer agree, allow the pages of the document to be initialed and numbered or otherwise suitably identified; and
(b)retain it and ensure that it is preserved until it is produced to a judge as required under this section and an order is issued under this section in respect of the document.
Marginal note:Application to judge
(4)Where a document has been seized and placed in custody under subsection 232(3) or is being retained under subsection 232(3.1), the client, or the lawyer on behalf of the client, may
(a)within 14 days after the day the document was so placed in custody or commenced to be so retained apply, on three clear days notice of motion to the Deputy Attorney General of Canada, to a judge for an order
(i)fixing a day, not later than 21 days after the date of the order, and place for the determination of the question whether the client has a solicitor-client privilege in respect of the document, and
(ii)requiring the production of the document to the judge at that time and place;
(b)serve a copy of the order on the Deputy Attorney General of Canada and, where applicable, on the custodian within 6 days of the day on which it was made and, within the same time, pay to the custodian the estimated expenses of transporting the document to and from the place of hearing and of safeguarding it; and
(c)if the client or lawyer has proceeded as authorized by paragraph 232(4)(b), apply at the appointed time and place for an order determining the question.
Marginal note:Disposition of application
(5)An application under paragraph 232(4)(c) shall be heardin camera, and on the application
(a)the judge may, if the judge considers it necessary to determine the question, inspect the document and, if the judge does so, the judge shall ensure that it is repackaged and resealed; and
(b)the judge shall decide the matter summarily and,
(i)if the judge is of the opinion that the client has a solicitor-client privilege in respect of the document, shall order the release of the document to the lawyer, and
(ii)if the judge is of the opinion that the client does not have a solicitor-client privilege in respect of the document, shall order
(A)that the custodian deliver the document to the officer or some other person designated by the Commissioner of Revenue, in the case of a document that was seized and placed in custody under subsection 232(3), or
(B)that the lawyer make the document available for inspection or examination by the officer or other person designated by the Commissioner of Revenue, in the case of a document that was retained under subsection 232(3.1),
and the judge shall, at the same time, deliver concise reasons in which the judge shall identify the document without divulging the details thereof.
Marginal note:Order to deliver or make available
(6)Where a document has been seized and placed in custody under subsection 232(3) or where a document is being retained under subsection 232(3.1) and a judge, on the application of the Attorney General of Canada, is satisfied that neither the client nor the lawyer has made an application under paragraph 232(4)(a) or, having made that application, neither the client nor the lawyer has made an application under paragraph 232(4)(c), the judge shall order
(a)that the custodian deliver the document to the officer or some other person designated by the Commissioner of Revenue, in the case of a document that was seized and placed in custody under subsection 232(3); or
(b)that the lawyer make the document available for inspection or examination by the officer or other person designated by the Commissioner of Revenue, in the case of a document that was retained under subsection 232(3.1).
Marginal note:Delivery by custodian
(7)The custodian shall
(a)deliver the document to the lawyer
(i)in accordance with a consent executed by the officer or by or on behalf of the Deputy Attorney General of Canada or the Commissioner of Revenue, or
(ii)in accordance with an order of a judge under this section; or
(b)deliver the document to the officer or some other person designated by the Commissioner of Revenue
(i)in accordance with a consent executed by the lawyer or the client, or
(ii)in accordance with an order of a judge under this section.
Marginal note:Continuation by another judge
(8)Where the judge to whom an application has been made under paragraph 232(4)(a) cannot for any reason act or continue to act in the application under paragraph 232(4)(c), the application under paragraph 232(4)(c) may be made to another judge.
Marginal note:Costs
(9)No costs may be awarded on the disposition of any application under this section.
Marginal note:Directions
(10)Where any question arises as to the course to be followed in connection with anything done or being done under this section, other than subsection 232(2), 232(3) or 232(3.1), and there is no direction in this section with respect thereto, a judge may give such direction with regard thereto as, in the judge’s opinion, is most likely to carry out the object of this section of allowing solicitor-client privilege for proper purposes.
Marginal note:Prohibition
(11)The custodian shall not deliver a document to any person except in accordance with an order of a judge or a consent under this section or except to any officer or servant of the custodian for the purposes of safeguarding the document.
Marginal note:Idem
(12)No officer shall inspect, examine or seize a document in the possession of a lawyer without giving the lawyer a reasonable opportunity of making a claim under this section.
Marginal note:Authority to make copies
(13)At any time while a document is in the custody of a custodian under this section, a judge may, on anex parteapplication of the lawyer, authorize the lawyer to examine or make a copy of the document in the presence of the custodian or the judge by an order that shall contain such provisions as may be necessary to ensure that the document is repackaged and that the package is resealed without alteration or damage.
Marginal note:Waiver of claim of privilege
(14)Where a lawyer has, for the purpose of subsection 232(2), 232(3) or 232(3.1), made a claim that a named client of the lawyer has a solicitor-client privilege in respect of information or a document, the lawyer shall at the same time communicate to the Minister or some person duly authorized to act for the Minister the address of the client last known to the lawyer so that the Minister may endeavour to advise the client of the claim of privilege that has been made on the client’s behalf and may thereby afford the client an opportunity, if it is practicable within the time limited by this section, of waiving the claim of privilege before the matter is to be decided by a judge or other tribunal.
Marginal note:Compliance
(15)No person shall hinder, molest or interfere with any person doing anything that that person is authorized to do by or pursuant to this section or prevent or attempt to prevent any person doing any such thing and, notwithstanding any other Act or law, every person shall, unless the person is unable to do so, do everything the person is required to do by or pursuant to this section.
Marginal note:Information return
233(1)Every person shall, on written demand from the Minister served personally or otherwise, whether or not the person has filed an information return as required by this Act or the regulations, file with the Minister, within such reasonable time as is stipulated in the demand, the information return if it has not been filed or such information as is designated in the demand.
Marginal note:Partnerships
(2)Every partnership shall, on written demand from the Minister served personally or otherwise on any member of the partnership, file with the Minister, within such reasonable time as is stipulated in the demand, an information return required under section 233.3, 233.4 or 233.6.
Marginal note:Application to members of partnerships
(3)For the purposes of this subsection and subsection 233(2), a person who is a member of a partnership that is a member of another partnership is deemed to be a member of the other partnership.
Marginal note:Definitions
233.1(1)The definitions in this subsection apply in this section.
reportable transactionmeans
(a)in the case of
(i)a reporting person for a taxation year who is not resident in Canada at any time in the year, or
(ii)a reporting partnership for a fiscal period no member of which is resident in Canada in the period,
a transaction or series of transactions that relate in any manner whatever to a business carried on in Canada by the reporting person or partnership in the year or period or a preceding taxation year or period; and
(b)in any other case, a transaction or series of transactions that relate in any manner whatever to a business carried on by a reporting person (other than a business carried on by a reporting person as a member of a partnership) or partnership in a taxation year or fiscal period. (opération à déclarer)
reporting partnershipfor a fiscal period means a partnership
(a)a member of which is resident in Canada in the period; or
(b)that carries on a business in Canada in the period. (société de personnes déclarante)
reporting personfor a taxation year means a person who, at any time in the year,
(a)is resident in Canada; or
(b)is non-resident and carries on a business (other than a business carried on as a member of a partnership) in Canada. (déclarant)
transactionincludes an arrangement or event. (opération)
Marginal note:Reporting person’s information return
(2)Subject to subsection 233.1(4), a reporting person for a taxation year shall, on or before the reporting person’s filing-due date for the year, file with the Minister, in respect of each non-resident person with whom the reporting person does not deal at arm’s length in the year and each partnership of which such a non-resident person is a member, an information return for the year in prescribed form containing prescribed information in respect of the reportable transactions in which the reporting person and the non-resident person or the partnership, as the case may be, participated in the year.
Marginal note:Reporting partnership’s information return
(3)Subject to subsection 233.1(4), a reporting partnership for a fiscal period shall, on or before the day on or before which a return is required by section 229 of theIncome Tax Regulationsto be filed in respect of the period or would be required to be so filed if that section applied to the reporting partnership, file with the Minister, in respect of each non-resident person with whom the reporting partnership, or a member of the reporting partnership, does not deal at arm’s length in the period and each partnership of which such a non-resident person is a member, an information return for the period in prescribed form containing prescribed information in respect of the reportable transactions in which the reporting partnership and the non-resident person or the partnership, as the case may be, participated in the period.
Marginal note:De minimis exception
(4)A reporting person or partnership that, but for this subsection, would be required under subsection 233.1(2) or 233.1(3) to file an information return for a taxation year or fiscal period is not required to file the return unless the total of all amounts, each of which is the total fair market value of the property or services that relate to a reportable transaction in which the reporting person or partnership and any non-resident person with whom the reporting person or partnership, or a member of the reporting partnership, does not deal at arm’s length in the year or period, or a partnership of which such a non-resident person is a member, as the case may be, participated in the year or period, exceeds $1,000,000.
Marginal note:Deemed member of partnership
(5)For the purposes of this section, a person who is a member of a partnership that is a member of another partnership is deemed to be a member of the other partnership.
Marginal note:Definitions
233.2(1)The definitions in this subsection apply in this section.
exempt trustmeans
(a)a trust that is governed by a foreign retirement arrangement;
(b)a trust that
(i)is resident in a country under the laws of which an income tax is imposed,
(ii)is exempt under the laws referred to in subparagraph (i) from the payment of income tax to the government of that country,
(iii)is established principally in connection with, or the principal purpose of which is to administer or provide benefits under, one or more superannuation, pension or retirement funds or plans or any funds or plans established to provide employee benefits, and
(iv)is either
(A)maintained primarily for the benefit of non-resident individuals, or
(B)governed by an employees profit sharing plan; or
(c)a trust
(i)where the interest of each beneficiary under the trust is described by reference to units, and
(ii)that complies with prescribed conditions. (fiducie exonérée)
specified beneficiary[Repealed, 2013, c. 34, s. 21]
specified foreign trust[Repealed, 2013, c. 34, s. 21]
Marginal note:Rule of application
(2)In this section and paragraph 233.5(c.1), subsections 94(1), (2) and (10) to (13) apply, except that the reference to the expression “(other than restricted property)” in the definitionarm’s length transferin subsection 94(1) is to be read as a reference to the expression “(other than property to which paragraph 94(2)(g) applies but not including a unit of a mutual fund trust or of a trust that would be a mutual fund trust if section 4801 of theIncome Tax Regulationswere read without reference to paragraph 4801(b), a share of the capital stock of a mutual fund corporation, or a particular share of the capital stock of a corporation (other than a closely held corporation) which particular share is identical to a share that is, at the transfer time, of a class that is listed on a designated stock exchange)”.
(3)[Repealed, 2013, c. 34, s. 21]
Marginal note:Filing information on foreign trusts
(4)A person shall file an information return in prescribed form, in respect of a taxation year of a particular trust (other than an exempt trust or a trust described in any of paragraphs (c) to (h) of the definitionexempt foreign trustin subsection 94(1)) with the Minister on or before the person’s filing-due date for the person’s taxation year in which the particular trust’s taxation year ends if
(a)the particular trust is non-resident at a specified time in that taxation year of the particular trust;
(b)the person is a contributor, a connected contributor or a resident contributor to the particular trust; and
(c)the person
(i)is resident in Canada at that specified time, and
(ii)is not, at that specified time,
(A)a mutual fund corporation,
(B)an exempt person,
(C)a mutual fund trust,
(D)a trust described in any of paragraphs (a) to (e.1) of the definitiontrustin subsection 108(1),
(E)a registered investment,
(F)a trust in which all persons beneficially interested are persons described in clauses (A) to (E), or
(G)a contributor to the particular trust by reason only of being a contributor to another trust that is resident in Canada and is described in any of clauses (B) to (F).
Marginal note:Similar arrangements
(4.1)In this section and sections 162, 163 and 233.5, a person’s obligations under subsection (4) (except to the extent that they are waived in writing by the Minister) are to be determined as if a contributor described in paragraph (4)(b) were any person who had transferred or loaned property, an arrangement or entity were a non-resident trust throughout the calendar year that includes the time referred to in paragraph (a) and that calendar year were a taxation year of the arrangement or entity, if
(a)the person at any time, directly or indirectly, transferred or loaned the property to be held
(i)under the arrangement and the arrangement is governed by the laws of a country or a political subdivision of a country other than Canada or exists, was formed or organized, or was last continued under the laws of a country or a political subdivision of a country other than Canada, or
(ii)by the entity and the entity is a non-resident entity (as defined by subsection 94.1(2));
(b)the transfer or loan is not an arm’s length transfer;
(c)the transfer or loan is not solely in exchange for property that would be described in paragraphs (a) to (i) of the definitionspecified foreign propertyin subsection 233.3(1) if that definition were read without reference to paragraphs (j) to (q);
(d)the arrangement or entity is not a trust in respect of which the person would, if this Act were read without reference to this subsection, be required to file an information return for a taxation year that includes that time; and
(e)the arrangement or entity is, for a taxation year or fiscal period of the arrangement or entity that includes that time, not
(i)an exempt foreign trust (as defined in subsection 94(1)),
(ii)a foreign affiliate in respect of which the person is a reporting entity (within the meaning assigned by subsection 233.4(1)), or
(iii)an exempt trust.
Marginal note:Joint filing
(5)Where information returns in respect of a trust’s taxation year would, but for this subsection, be required to be filed under subsection 4 by a particular person and another person, and the particular person identifies the other person in an election filed in writing with the Minister, for the purposes of applying this Act to the particular person
(a)the information return filed by the other person shall be treated as if it had been filed by the particular person;
(b)the information required to be provided with the return by the particular person shall be deemed to be the information required to be provided by the other person with the return;
(c)the day on or before which the return is required to be filed by the particular person is deemed to be the later of the day on or before which
(i)the return would, but for this subsection, have been required to have been filed by the particular person, and
(ii)the return is required to have been filed by the other person; and
(d)each act and omission of the other person in respect of the return is deemed to be an act or omission of the particular person.
Marginal note:Definitions
233.3(1)The definitions in this subsection apply in this section.
reporting entityfor a taxation year or fiscal period means a specified Canadian entity for the year or period where, at any time (other than a time when the entity is non-resident) in the year or period, the total of all amounts each of which is the cost amount to the entity of a specified foreign property of the entity exceeds $100,000. (déclarant)
specified Canadian entityfor a taxation year or fiscal period means
(a)a taxpayer resident in Canada in the year that is not
(i)a mutual fund corporation,
(ii)a non-resident-owned investment corporation,
(iii)a person (other than a trust) all of whose taxable income for the year is exempt from tax under Part I,
(iv)a trust all of the taxable income of which for the year is exempt from tax under Part I,
(v)a mutual fund trust,
(vi)a trust described in any of paragraphs (a) to (e.1) of the definitiontrustin subsection 108(1),
(vii)a registered investment, nor
(viii)a trust in which all persons beneficially interested are persons described in subparagraphs (i) to (vii); and
(b)a partnership (other than a partnership all the members of which are taxpayers referred to in any of subparagraphs i) to (viii)) where the total of all amounts, each of which is a share of the partnership’s income or loss for the period of a non-resident member, is less than 90% of the income or loss of the partnership for the period, and, where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000 for the purpose of determining a member’s share of the partnership’s income for the purpose of this paragraph. (entité canadienne déterminée)
specified foreign propertyof a person or partnership means any property of the person or the partnership that is
(a)funds or intangible property, or for civil law incorporeal property, situated, deposited or held outside Canada,
(b)tangible property, or for civil law corporeal property, situated outside Canada,
(c)a share of the capital stock of a non-resident corporation,
(d)an interest in a non-resident trust,
(e)an interest in a partnership that owns or holds specified foreign property,
(f)an interest in, or right with respect to, an entity that is non-resident,
(g)indebtedness owed by a non-resident person,
(h)an interest in, or for civil law a right in, or a right — under a contract in equity or otherwise either immediately or in the future and either absolutely or contingently — to, any property (other than any property owned by a corporation or trust that is not the person) that is specified foreign property, and
(i)property that, under the terms or conditions thereof or any agreement relating thereto, is convertible into, is exchangeable for or confers a right to acquire, property that is specified foreign property,
but does not include
(j)property that is used or held exclusively in the course of carrying on an active business of the person or partnership (determined as if the person or partnership were a corporation resident in Canada),
(k)a share of the capital stock or indebtedness of a non-resident corporation that is a foreign affiliate of the person or partnership for the purpose of section 233.4,
(l)an interest in, or indebtedness of, a non-resident trust that is a foreign affiliate of the person or partnership for the purpose of section 233.4,
(m)an interest in a non-resident trust that was not acquired for consideration by either the person or partnership or a person related to the person or partnership,
(n)an interest in a trust described in paragraph (a) or (b) of the definitionexempt trustin subsection 233.2(1),
(o)an interest in a partnership that is a specified Canadian entity,
(o.1)a right with respect to, or indebtedness of, an authorized foreign bank that is issued by, and payable or otherwise enforceable at, a branch in Canada of the bank,
(p)personal-use property of the person or partnership, and
(q)an interest in, or for civil law a right in, or a right to acquire, a property that is described in any of paragraphs (j) to (p). (bien étranger déterminé)
Marginal note:Application to members of partnerships
(2)For the purpose of this section, a person who is a member of a partnership that is a member of another partnership
(a)is deemed to be a member of the other partnership; and
(b)the person’s share of the income or loss of the other partnership is deemed to be equal to the amount of that income or loss to which the person is directly or indirectly entitled.
Marginal note:Returns respecting foreign property
(3)A reporting entity for a taxation year or fiscal period shall file with the Minister for the year or period a return in prescribed form on or before the day that is
(a)where the entity is a partnership, the day on or before which a return is required by section 229 of theIncome Tax Regulationsto be filed in respect of the fiscal period of the partnership or would be required to be so filed if that section applied to the partnership; and
(b)where the entity is not a partnership, the entity’s filing-due date for the year.
Marginal note:Reporting entity
233.4(1)For the purpose of this section,reporting entityfor a taxation year or fiscal period means
(a)a taxpayer resident in Canada (other than a taxpayer all of whose taxable income for the year is exempt from tax under Part I) of which a non-resident corporation is a foreign affiliate at any time in the year;
(b)a taxpayer resident in Canada (other than a taxpayer all of whose taxable income for the year is exempt from tax under Part I) of which a non-resident trust is a foreign affiliate at any time in the year; and
(c)a partnership
(i)where the total of all amounts, each of which is a share of the partnership’s income or loss for the period of a member that is not resident in Canada or that is a taxpayer all of whose taxable income for the year in which the period ends is exempt from tax under Part I, is less than 90% of the income or loss of the partnership for the period, and, where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000 for the purpose of determining a member’s share of the partnership’s income for the purpose of this subparagraph, and
(ii)of which a non-resident corporation or trust is a foreign affiliate at any time in the fiscal period.
Marginal note:Rules of application
(2)For the purpose of this section, in determining whether a non-resident corporation or trust is a foreign affiliate or a controlled foreign affiliate of a taxpayer resident in Canada or of a partnership
(a)paragraph (b) of the definitionequity percentagein subsection 95(4) shall be read as if the reference to “any corporation” were a reference to “any corporation other than a corporation resident in Canada”;
(b)the definitionsdirect equity percentageandequity percentagein subsection 95(4) shall be read as if a partnership were a person;
(c)the definitionscontrolled foreign affiliateandforeign affiliatein subsection 95(1) shall be read as if a partnership were a taxpayer resident in Canada; and
(d)if the taxpayer is a member of one or more partnerships described in subparagraph (1)(c)(i) of which a non-resident corporation or trust is a foreign affiliate, and the taxpayer does not have any direct or indirect interest (determined without reference to subsection 93.1(1)) in the non-resident corporation or trust other than through its interest in the partnerships, then the non-resident corporation or trust is deemed not to be a foreign affiliate of the taxpayer.
Marginal note:Application to members of partnerships
(3)For the purpose of this section, a person who is a member of a partnership that is a member of another partnership
(a)is deemed to be a member of the other partnership; and
(b)the person’s share of the income or loss of the other partnership is deemed to be equal to the amount of that income or loss to which the person is directly or indirectly entitled.
Marginal note:Returns respecting foreign affiliates
(4)A reporting entity for a taxation year or fiscal period shall file with the Minister for the year or period a return in prescribed form in respect of each foreign affiliate of the entity in the year or period within 10 months after the end of the year or period.
Marginal note:Due diligence exception
233.5The information required in a return filed under section 233.2 or 233.4 does not include information that is not available, on the day on which the return is filed, to the person or partnership required to file the return where
(a)there is a reasonable disclosure in the return of the unavailability of the information;
(b)before that day, the person or partnership exercised due diligence in attempting to obtain the information;
(c)if the return is required to be filed under section 233.2 in respect of a trust, at the time of each transaction, if any, entered into by the person or partnership after March 5, 1996 and before June 23, 2000 that gave rise to the requirement to file a return for a taxation year of the trust that ended before 2007 or that affects the information to be reported in the return, it was reasonable to expect that sufficient information would be available to the person or partnership to comply with section 233.2 in respect of each taxation year of the trust that ended before 2007;
(c.1)if the return is required to be filed under section 233.2, at the time of each contribution (determined with reference to subsection 233.2(2)) made by the person or partnership after June 22, 2000 that gives rise to the requirement to file the return or that affects the information to be reported in the return, it was reasonable to expect that sufficient information would be available to the person or partnership to comply with section 233.2;
(c.2)if the return is required to be filed under section 233.4 by a person or partnership in respect of a corporation that is a controlled foreign affiliate for the purpose of that section of the person or partnership, at the time of each transaction, if any, entered into by the person or partnership after March 5, 1996 that gives rise to the requirement to file the return or that affects the information to be reported in the return, it was reasonable to expect that sufficient information would be available to the person or partnership to comply with section 233.4; and
(d)if the information subsequently becomes available to the person or partnership, it is filed with the Minister not more than 90 days after it becomes so available.
Marginal note:Returns respecting distributions from non-resident trusts
233.6(1)Where a specified Canadian entity (as defined by subsection 233.3(1)) for a taxation year or fiscal period receives a distribution of property from, or is indebted to, a non-resident trust (other than a trust that was an excluded trust in respect of the year or period of the entity or an estate that arose on and as a consequence of the death of an individual) in the year or period and the entity is beneficially interested in the trust at any time in the year or period, the entity shall file with the Minister for the year or period a return in prescribed form on or before the day that is
(a)where the entity is a partnership, the day on or before which a return is required by section 229 of theIncome Tax Regulationsto be filed in respect of the fiscal period of the partnership or would be required to be so filed if that section applied to the partnership; and
(b)where the entity is not a partnership, the entity’s filing-due date for the year.
Marginal note:Excluded trust defined
(2)For the purpose of subsection 233.6(1), an excluded trust in respect of the taxation year or fiscal period of an entity means
(a)a trust described in paragraph (a) or (b) of the definitionexempt trustin subsection 233.2(1) throughout the portion of the year or period during which the trust was extant;
(b)a trust in respect of which the entity is required by section 233.2 to file a return in respect of each taxation year of the trust that ends in the entity’s year;
(c)a trust an interest in which is at any time in the year or period specified foreign property (as defined by subsection 233.3(1)) of the entity, where the entity is a reporting entity (as defined by subsection 233.3(1)) for the year or period; and
(d)a trust in respect of which the entity is required by section 233.4 to file a return for the year or period.
Marginal note:Exception for first-year residents
233.7Notwithstanding sections 233.2, 233.3, 233.4 and 233.6, a person who, but for this section, would be required under any of those sections to file an information return for a taxation year, is not required to file the return if the person is an individual (other than a trust) who first became resident in Canada in the year.
Marginal note:Country-by-country report — definitions
233.8(1)The following definitions apply in this section.
business entitymeans
(a)a person (other than an individual that is not a trust) or partnership; and
(b)a business that is carried on through a permanent establishment, if a separate financial statement for the business is prepared for financial reporting, regulatory, tax reporting or internal management control purposes. (entité)
consolidated financial statementsmeans financial statements in which the assets, liabilities, income, expenses and cash flows of the members of a group are presented as those of a single economic entity. (états financiers consolidés)
constituent entity, of an MNE group, means
(a)any business entity of the MNE group that
(i)is included in the consolidated financial statements of the MNE group for financial reporting purposes, or
(ii)would be required to be included if equity interests in any of the business entities in the MNE group were traded on a public securities exchange; and
(b)any business entity that is excluded from the MNE group’s consolidated financial statements solely because of size or materiality. (entité constitutive)
excluded MNE groupmeans two or more business entities that meet the conditions in paragraphs (a) and (b) of the definitionMNE group, if, with respect to a particular fiscal year of the MNE group, it has a total consolidated group revenue of less than €750 million during the fiscal year immediately preceding the particular fiscal year, as reflected in its consolidated financial statements for the preceding fiscal year. (groupe d’entreprises multinationales exclu)
fiscal year, of an MNE group, means an annual accounting period with respect to which the ultimate parent entity of the MNE group prepares its financial statements. (exercice)
multinational enterprise grouporMNE groupmeans two or more business entities, if
(a)they are either required to prepare consolidated financial statements for financial reporting purposes under applicable accounting principles or would be so required if equity interests in any of the business entities were traded on a public securities exchange;
(b)one of the business entities is resident in a particular jurisdiction and
(i)another business entity resides in a different jurisdiction, or
(ii)is subject to tax in a different jurisdiction with respect to a business carried on by it through a business entity — described in paragraph (b) of the definitionbusiness entity— in that other jurisdiction; and
(c)they are not an excluded MNE group. (groupe d’entreprises multinationales)
permanent establishmenthas the meaning assigned by regulation. (établissement stable)
qualifying competent authority agreementmeans an agreement that
(a)is between authorized representatives of those jurisdictions that are parties to a listed international agreement; and
(b)requires the automatic exchange of country-by-country reports between the party jurisdictions. (accord admissible)
reporting fiscal yearmeans a fiscal year, if the financial and operational results of the fiscal year are reflected in the country-by-country report. (exercice déclarable)
surrogate parent entitymeans a constituent entity of an MNE group that has been appointed by the MNE group — in substitution for the ultimate parent entity — to file the country-by-country report on behalf of the MNE group, if one or more of the conditions in subparagraph (3)(b)(ii) applies. (entité mère de substitution)
systemic failuremeans, with respect to a jurisdiction, that the jurisdiction has a qualifying competent authority agreement in effect with Canada, but
(a)has suspended automatic exchange (for reasons other than those that are in accordance with the terms of the agreement); or
(b)has persistently failed to automatically provide country-by-country reports in its possession — in respect of MNE groups that have constituent entities in Canada — to Canada. (défaillance systémique)
ultimate parent entitymeans a constituent entity of an MNE group that meets the following conditions:
(a)the constituent entity holds directly or indirectly a sufficient interest in one or more constituent entities of the MNE group so that it is required to prepare consolidated financial statements under accounting principles generally applied in its jurisdiction of residence, or would be so required if its equity interests were traded on a public securities exchange in its jurisdiction of residence; and
(b)no other constituent entity of the MNE group holds, directly or indirectly, an interest in it that is described in paragraph (a). (entité mère ultime)
Marginal note:Determination of residence — ultimate parent entity
(2)For the purposes of this section, if an ultimate parent entity is a partnership, it is deemed to be resident
(a)if it is, under the laws of another jurisdiction, resident in that other jurisdiction for tax purposes, in that other jurisdiction; and
(b)in any other case, in the jurisdiction under the laws of which it was organized.
Marginal note:Filing obligations
(3)A report in prescribed form (this report, along with each substantially similar report required to be filed in a jurisdiction other than Canada, collectively referred to in this section as acountry-by-country report), in respect of a reporting fiscal year of an MNE group, shall be filed in prescribed manner with the Minister on or before the date specified in subsection (6) by
(a)the ultimate parent entity of the MNE group, if it is resident in Canada in the reporting fiscal year; or
(b)a constituent entity of the MNE group — which is not the ultimate parent entity of the MNE group — with respect to the reporting fiscal year of the MNE group, if the following conditions are satisfied:
(i)the constituent entity is resident in Canada in the reporting fiscal year, and
(ii)one of the following conditions applies:
(A)the ultimate parent entity of the MNE group is not obligated to file a country-by-country report in its jurisdiction of residence,
(B)the jurisdiction of residence of the ultimate parent entity of the MNE group does not have a qualifying competent authority agreement in effect to which Canada is a party on or before the time specified in subsection (6) for filing the country-by-country report for the reporting fiscal year, or
(C)there has been a systemic failure of the jurisdiction of residence of the ultimate parent entity and the Minister has notified the constituent entity of the systemic failure.
Marginal note:Designation for multiple constituent entities
(4)If more than one constituent entity of an MNE group is described in paragraph (3)(b) in respect of a reporting fiscal year, one of those constituent entities may be designated — on or before the date specified in subsection (6) in respect of the reporting fiscal year — so that it is entitled to file a country-by-country report for the reporting fiscal year with the Minister on behalf of all such constituent entities in the MNE group.
Marginal note:Surrogate filing
(5)Notwithstanding subsection (3), a constituent entity of an MNE group described in paragraph (3)(b) is not required to file a country-by-country report with the Minister with respect to a reporting fiscal year if
(a)a surrogate parent entity of the MNE group files a country-by-country report in respect of the reporting fiscal year with the tax authority of its jurisdiction of residence on or before the date specified in subsection (6); and
(b)the jurisdiction of residence of the surrogate parent entity
(i)requires filing of country-by-country reports,
(ii)has a qualifying competent authority agreement in effect to which Canada is a party on or before the time specified in subsection (6) for filing the country-by-country report in respect of the reporting fiscal year,
(iii)is not in a position of systemic failure, and
(iv)has been notified by the surrogate parent entity that it is the surrogate parent entity.
Marginal note:Time for filing
(6)A country-by-country report in respect of a reporting fiscal year of an MNE group that is required to be filed by a constituent entity under this section shall be filed on or before the later of
(a)if notification of systemic failure has been received by the constituent entity, 30 days after receipt of the notification, and
(b)12 months after the last day of the reporting fiscal year.
Marginal note:Ownership certificates
234(1)Before the bearer coupon or warrant representing either interest or dividends payable by any debtor or cheque representing dividends or interest payable by a non-resident debtor is negotiated by or on behalf of a resident of Canada, there shall be completed by or on behalf of the resident an ownership certificate in prescribed form.
Marginal note:Idem
(2)An ownership certificate completed pursuant to subsection 234(1) shall be delivered in such manner, at such time and at such place as may be prescribed.
Marginal note:Idem
(3)The operation of this section may be extended by regulation to bearer coupons or warrants negotiated by or on behalf of non-resident persons.
Marginal note:Penalty for failing to file corporate returns
235Every large corporation (within the meaning assigned by subsection 225.1(8)) that fails to file a return for a taxation year as and when required by section 150 or 190.2 is liable, in addition to any penalty otherwise provided, to a penalty for each such failure equal to the amount determined by the formula
A × B
where
(a)0.0005% of the corporation’s taxable capital employed in Canada at the end of the taxation year, and
(b)0.25% of the tax that would be payable under Part VI by the corporation for the year if this Act were read without reference to subsection 190.1(3); and
Marginal note:Execution of documents by corporations
236A return, certificate or other document made by a corporation pursuant to this Act or a regulation shall be signed on its behalf by the President, Secretary or Treasurer of the corporation or by any other officer or person thereunto duly authorized by the Board of Directors or other governing body of the corporation.
Marginal note:Social Insurance Number
237(1)Every individual (other than a trust) who was resident or employed in Canada at any time in a taxation year and who files a return of income under Part I for the year, or in respect of whom an information return is to be made by a person pursuant to a regulation made under paragraph 221(1)(d), shall,
(a)on or before the first day of February of the year immediately following the year for which the return of income is filed, or
(b)within 15 days after the individual is requested by the person to provide his Social Insurance Number,
apply to the Canada Employment Insurance Commission in prescribed form and manner for the assignment to the individual of a Social Insurance Number unless the individual has previously been assigned, or made application to be assigned, a Social Insurance Number.
Marginal note:Production of number
(1.1)Every person and partnership shall provide their designated number
(a)in any return filed under this Act; and
(b)to another person or partnership at the request of the other person or partnership, if the other person or partnership is required to make an information return pursuant to this Act or the Regulations requiring the designated number.
Marginal note:Designated number
(1.2)For the purpose of subsection (1.1),designated number, of a person or partnership, means
(a)in the case of an individual (other than a trust), their Social Insurance Number;
(b)in the case of a trust, its trust account number; and
(c)in any other case, the person’s or partnership’s business number.
Marginal note:Number required in information returns
(2)For the purposes of this Act and the Regulations, a person or partnership required to make an information return requiring a business number, Social Insurance Number or trust account number of another person or partnership
(a)shall make a reasonable effort to obtain the number from the other person or partnership; and
(b)shall not knowingly use, communicate or allow to be communicated, otherwise than as required or authorized under this Act or a regulation, the number without the written consent of the other person or partnership.
Marginal note:Authority to communicate number
(3)A particular person may communicate, or allow to be communicated, a business number, Social Insurance Number or trust account number to another person related to the particular person where the other person is required, by this Act or the Regulations, to make an information return that requires the number.
Marginal note:Authority to communicate number
(4)An insurance corporation may communicate, or allow to be communicated, to another person the business number, Social Insurance Number or trust account number of a particular person or partnership if
(a)the other person became the holder of a share of the capital stock of the insurance corporation, or of a holding corporation (in this subsection having the meaning assigned by subsection 139.1(1)) in respect of the insurance corporation, on the share’s issuance in connection with the demutualization (as defined by subsection 139.1(1)) of the insurance corporation;
(b)the other person became the holder of the share in the other person’s capacity as nominee or agent for the particular person or partnership pursuant to an arrangement established by the insurance corporation or a holding corporation in respect of the insurance corporation; and
(c)the other person is required, by this Act or the Regulations, to make an information return, in respect of the disposition of the share or income from the share, that requires the number.
Marginal note:Definitions
237.1(1)In this section,
gifting arrangementmeans any arrangement under which it may reasonably be considered, having regard to statements or representations made or proposed to be made in connection with the arrangement, that if a person were to enter into the arrangement, the person would
(a)make a gift to a qualified donee, or a contribution referred to in subsection 127(4.1), of property acquired by the person under the arrangement; or
(b)incur a limited-recourse debt, determined under subsection 143.2(6.1), that can reasonably be considered to relate to a gift to a qualified donee or a monetary contribution referred to in subsection 127(4.1); (arrangement de don)
personincludes a partnership; (personne)
promoterin respect of a tax shelter means a person who in the course of a business
(a)sells or issues, or promotes the sale, issuance or acquisition of, the tax shelter,
(b)acts as an agent or adviser in respect of the sale or issuance, or the promotion of the sale, issuance or acquisition, of the tax shelter, or
(c)accepts, whether as a principal or agent, consideration in respect of the tax shelter,
and more than one person may be a tax shelter promoter in respect of the same tax shelter; (promoteur)
tax sheltermeans
(a)a gifting arrangement described by paragraph (b) of the definitiongifting arrangement; and
(b)a gifting arrangement described by paragraph (a) of the definitiongifting arrangement, or a property (including any right to income) other than a flow-through share or a prescribed property, in respect of which it can reasonably be considered, having regard to statements or representations made or proposed to be made in connection with the gifting arrangement or the property, that, if a person were to enter into the gifting arrangement or acquire an interest in the property, at the end of a particular taxation year that ends within four years after the day on which the gifting arrangement is entered into or the interest is acquired,
(i)the total of all amounts each of which is
(A)an amount, or a loss in the case of a partnership interest, represented to be deductible in computing the person’s income for the particular year or any preceding taxation year in respect of the gifting arrangement or the interest in the property (including, if the property is a right to income, an amount or loss in respect of that right that is stated or represented to be so deductible), or
(B)any other amount stated or represented to be deemed under this Act to be paid on account of the person’s tax payable, or to be deductible in computing the person’s income, taxable income or tax payable under this Act, for the particular year or any preceding taxation year in respect of the gifting arrangement or the interest in the property, other than an amount so stated or represented that is included in computing a loss described in clause (A),
would equal or exceed
(ii)the amount, if any, by which
(A)the cost to the person of the property acquired under the gifting arrangement, or of the interest in the property at the end of the particular year, determined without reference to section 143.2,
would exceed
(B)the total of all amounts each of which is the amount of any prescribed benefit that is expected to be received or enjoyed, directly or indirectly, in respect of the property acquired under the gifting arrangement, or of the interest in the property, by the person or another person with whom the person does not deal at arm’s length. (abri fiscal)
Marginal note:Application
(2)A promoter in respect of a tax shelter shall apply to the Minister in prescribed form for an identification number for the tax shelter unless an identification number therefor has previously been applied for.
Marginal note:Identification
(3)On receipt of an application under subsection 237.1(2) for an identification number for a tax shelter, together with prescribed information and an undertaking satisfactory to the Minister that books and records in respect of the tax shelter will be kept and retained at a place in Canada that is satisfactory to the Minister, the Minister shall issue an identification number for the tax shelter.
Marginal note:Sales prohibited
(4)A person may, at any time, whether as a principal or an agent, sell or issue, or accept consideration in respect of, a tax shelter only if
(a)the Minister has issued before that time an identification number for the tax shelter; and
(b)that time is during the calendar year designated by the Minister as being applicable to the identification number.
Marginal note:Providing tax shelter number
(5)Every promoter in respect of a tax shelter shall
(a)make reasonable efforts to ensure that all persons who acquire or otherwise invest in the tax shelter are provided with the identification number issued by the Minister for the tax shelter;
(b)prominently display on the upper right-hand corner of any statement of earnings prepared by or on behalf of the promoter in respect of the tax shelter the identification number issued for the tax shelter; and
(c)on every written statement made after 1995 by the promoter that refers either directly or indirectly and either expressly or impliedly to the issuance by the Canada Revenue Agency of an identification number for the tax shelter, as well as on the copies of the portion of the information return to be forwarded pursuant to subsection 237.1(7.3), prominently display
(i)where the statement or return is wholly or partly in English, the following:
“ ‘The identification number issued for this tax shelter shall be included in any income tax return filed by the investor