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Income Tax Act

Version of section 248 from 2021-06-29 to 2023-03-31:


Marginal note:Definitions

  •  (1) In this Act,

    active business

    active business, in relation to any business carried on by a taxpayer resident in Canada, means any business carried on by the taxpayer other than a specified investment business or a personal services business; (entreprise exploitée activement)

    additional voluntary contribution

    additional voluntary contribution to a registered pension plan means a contribution that is made by a member to the plan, that is used to provide benefits under a money purchase provision (within the meaning assigned by subsection 147.1(1)) of the plan and that is not required as a general condition of membership in the plan; (cotisation facultative)

    adjusted cost base

    adjusted cost base has the meaning assigned by section 54; (prix de base rajusté)

    adjustment time

    adjustment time[Repealed, 2016, c. 12, s. 63]

    advanced life deferred annuity

    advanced life deferred annuity has the meaning assigned by subsection 146.5(1); (rente viagère différée à un âge avancé)

    aggregate investment income

    aggregate investment income has the meaning assigned by subsection 129(4); (revenu de placement total)

    allowable business investment loss

    allowable business investment loss has the meaning assigned by section 38; (perte déductible au titre d’un placement d’entreprise)

    allowable capital loss

    allowable capital loss has the meaning assigned by section 38; (perte en capital déductible)

    alter ego trust

    alter ego trust means a trust to which paragraph 104(4)(a) would apply if that paragraph were read without reference to subparagraph 104(4)(a)(iii) and clauses 104(4)(a)(iv)(B) and (C); (fiducie en faveur de soi-même)

    amateur athlete trust

    amateur athlete trust has the meaning assigned by subsection 143.1(1.2); (fiducie au profit d’un athlète amateur)

    amortized cost

    amortized cost of a loan or lending asset at any time to a taxpayer means the amount, if any, by which the total of

    • (a) in the case of a loan made by the taxpayer, the total of all amounts advanced in respect of the loan at or before that time,

    • (b) in the case of a loan or lending asset acquired by the taxpayer, the cost of the loan or lending asset to the taxpayer,

    • (c) in the case of a loan or lending asset acquired by the taxpayer, the part of the amount, if any, by which

      • (i) the principal amount of the loan or lending asset at the time it was so acquired

      exceeds

      • (ii) the cost to the taxpayer of the loan or lending asset

      that was included in computing the taxpayer’s income for any taxation year ending at or before that time,

    • (c.1) the total of all amounts each of which is an amount in respect of the loan or lending asset that was included in computing the taxpayer’s income for a taxation year that ended at or before that time in respect of changes in the value of the loan or lending asset attributable to the fluctuation in the value of a currency of a country other than Canada relative to Canadian currency,

    • (d) where the taxpayer is an insurer, any amount in respect of the loan or lending asset that was deemed by reason of paragraph 142(3)(a) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it read in its application to the 1977 taxation year, to be a gain for any taxation year ending at or before that time, and

    • (e) the total of all amounts each of which is an amount in respect of the loan or lending asset that was included under paragraph 12(1)(i) in computing the taxpayer’s income for any taxation year ending at or before that time

    exceeds the total of

    • (f) the part of the amount, if any, by which

      • (i) the amount referred to in subparagraph (c)(ii)

      exceeds

      • (ii) the amount referred to in subparagraph (c)(i)

      that was deducted in computing the taxpayer’s income for any taxation year ending at or before that time,

    • (f.1) the total of all amounts each of which is an amount in respect of the loan or lending asset that was deducted in computing the taxpayer’s income for a taxation year that ended at or before that time in respect of changes in the value of the loan or lending asset attributable to the fluctuation in the value of a currency of a country other than Canada relative to Canadian currency,

    • (g) the total of all amounts that, at or before that time, the taxpayer had received as or on account or in lieu of payment of or in satisfaction of the principal amount of the loan or lending asset,

    • (h) where the taxpayer is an insurer, any amount in respect of the loan or lending asset that was deemed by reason of paragraph 142(3)(b) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it read in its application to the 1977 taxation year, to be a loss for any taxation year ending at or before that time, and

    • (i) the total of all amounts each of which is an amount in respect of the loan or lending asset deducted under paragraph 20(1)(p) in computing the taxpayer’s income for any taxation year ending at or before that time; (coût amorti)

    amount

    amount means money, rights or things expressed in terms of the amount of money or the value in terms of money of the right or thing, except that,

    • (a) notwithstanding paragraph (b), in any case where subsection 112(2.1), 112(2.2) or 112(2.4), or section 187.2 or 187.3 or subsection 258(3) or 258(5) applies to a stock dividend, the amount of the stock dividend is the greater of

      • (i) the amount by which the paid-up capital of the corporation that paid the dividend is increased by reason of the payment of the dividend, and

      • (ii) the fair market value of the share or shares paid as a stock dividend at the time of payment,

    • (b) in any case where section 191.1 applies to a stock dividend, the amount of the stock dividend for the purposes of Part VI.1 is the greater of

      • (i) the amount by which the paid-up capital of the corporation that paid the dividend is increased by reason of the payment of the dividend, and

      • (ii) the fair market value of the share or shares paid as a stock dividend at the time of payment,

      and for any other purpose the amount referred to in subparagraph (i), and

    • (b.1) [Repealed, 2013, c. 34, s. 358]

    • (c) in any other case, the amount of any stock dividend is the amount by which the paid-up capital of the corporation that paid the dividend is increased by reason of the payment of the dividend; (montant)

    annuity

    annuity includes an amount payable on a periodic basis whether payable at intervals longer or shorter than a year and whether payable under a contract, will or trust or otherwise; (rente)

    appropriate percentage

    appropriate percentage, for a taxation year, means the lowest percentage referred to in subsection 117(2) for the taxation year; (taux de base pour l’année)

    assessment

    assessment includes a reassessment; (cotisation)

    authorized foreign bank

    authorized foreign bank has the meaning assigned by section 2 of the Bank Act; (banque étrangère autorisée)

    automobile

    automobile means

    • (a) a motor vehicle that is designed or adapted primarily to carry individuals on highways and streets and that has a seating capacity for not more than the driver and 8 passengers,

    but does not include

    • (b) an ambulance,

    • (b.1) a clearly marked emergency-response vehicle that is used in connection with or in the course of an individual’s office or employment with a fire department or the police;

    • (b.2) a clearly marked emergency medical response vehicle that is used, in connection with or in the course of an individual’s office or employment with an emergency medical response or ambulance service, to carry emergency medical equipment together with one or more emergency medical attendants or paramedics,

    • (c) a motor vehicle acquired primarily for use as a taxi, a bus used in a business of transporting passengers or a hearse used in the course of a business of arranging or managing funerals,

    • (d) except for the purposes of section 6, a motor vehicle acquired to be sold, rented or leased in the course of carrying on a business of selling, renting or leasing motor vehicles or a motor vehicle used for the purpose of transporting passengers in the course of carrying on a business of arranging or managing funerals, and

    • (e) a motor vehicle

      • (i) of a type commonly called a van or pick-up truck, or a similar vehicle, that has a seating capacity for not more than the driver and two passengers and that, in the taxation year in which it is acquired or leased, is used primarily for the transportation of goods or equipment in the course of gaining or producing income,

      • (ii) of a type commonly called a van or pick-up truck, or a similar vehicle, the use of which, in the taxation year in which it is acquired or leased, is all or substantially all for the transportation of goods, equipment or passengers in the course of gaining or producing income, or

      • (iii) of a type commonly called a pick-up truck that is used in the taxation year in which it is acquired or leased primarily for the transportation of goods, equipment or passengers in the course of earning or producing income at one or more locations in Canada that are

        • (A) described, in respect of any of the occupants of the vehicle, in subparagraph 6(6)(a)(i) or (ii), and

        • (B) at least 30 kilometres outside the nearest point on the boundary of the nearest population centre, as defined by the last census dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year; (automobile)

    balance-due day

    balance-due day of a taxpayer for a taxation year means,

    • (a) if the taxpayer is a trust,

      • (i) in the case where the time at which the taxation year ends is determined under paragraph 249(4)(a), the day that is

        • (A) in the case where that time occurs in a calendar year after the end of the trust’s particular taxation year that ends on December 15 of that calendar year because of an election made under paragraph 132.11(1)(a), the balance-due day of the trust for the particular taxation year,

        • (B) in the case where clause (A) does not apply and the trust’s particular taxation year that begins immediately after that time ends in the calendar year that includes that time, the balance-due day of the trust for the particular taxation year, and

        • (C) in any other case, 90 days after the end of the calendar year that includes that time, and

      • (ii) in any other case, the day that is 90 days after the end of the taxation year,

    • (b) where the taxpayer is an individual who died after October in the year and before May in the following taxation year, the day that is 6 months after the day of death,

    • (c) in any other case where the taxpayer is an individual, April 30 in the following taxation year, and

    • (d) where the taxpayer is a corporation,

      • (i) the day that is three months after the day on which the taxation year (in this subparagraph referred to as the “current year”) ends, if

        • (A) an amount was deducted under section 125 in computing the corporation’s tax payable under this Part for the current year or for its preceding taxation year,

        • (B) the corporation is, throughout the current year, a Canadian-controlled private corporation, and

        • (C) either

          • (I) in the case of a corporation that is not associated with another corporation in the current year, its taxable income for its preceding taxation year (determined before taking into consideration the specified future tax consequences for that preceding taxation year) does not exceed its business limit for that preceding taxation year, or

          • (II) in the case of a corporation that is associated with one or more other corporations in the current year, the total of the taxable incomes of the corporation and of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the current year (determined before taking into consideration the specified future tax consequences for those last taxation years) does not exceed the total of the business limits of the corporation and of those other corporations for those last taxation years, and

      • (ii) the day that is two months after the day on which the taxation year ends, in any other case; (date d’exigibilité du solde)

    bank

    bank means a bank within the meaning assigned by section 2 of the Bank Act (other than a federal credit union) or an authorized foreign bank; (banque)

    bankrupt

    bankrupt has the meaning assigned by the Bankruptcy and Insolvency Act; (failli)

    benefit under a deferred profit sharing plan

    benefit under a deferred profit sharing plan received by a taxpayer in a taxation year means the total of all amounts each of which is an amount received by the taxpayer in the year from a trustee under the plan, minus any amounts deductible under subsections 147(11) and 147(12) in computing the income of the taxpayer for the year; (prestation en vertu d’un régime de participation différée aux bénéfices)

    bituminous sands

    bituminous sands means sands or other rock materials containing naturally occurring hydrocarbons (other than coal) which hydrocarbons have

    • (a) a viscosity, determined in a prescribed manner, equal to or greater than 10,000 centipoise, or

    • (b) a density, determined in a prescribed manner, equal to or less than 12 degrees API; (sables bitumineux)

    borrowed money

    borrowed money includes the proceeds to a taxpayer from the sale of a post-dated bill drawn by the taxpayer on a bank; (argent emprunté)

    business

    business includes a profession, calling, trade, manufacture or undertaking of any kind whatever and, except for the purposes of paragraph 18(2)(c), section 54.2, subsection 95(1) and paragraph 110.6(14)(f), an adventure or concern in the nature of trade but does not include an office or employment; (commerce)

    business limit

    business limit of a corporation for a taxation year means the amount determined under section 125 to be its business limit for the year; (plafond des affaires)

    business number

    business number means the number (other than a Social Insurance Number or trust account number) used by the Minister to identify

    • (a) a corporation or partnership, or

    • (b) any other association or taxpayer that carries on a business or is required by this Act to deduct or withhold an amount from an amount paid or credited or deemed to be paid or credited under this Act

    and of which the Minister has notified the corporation, partnership, association or taxpayer; (numéro d’entreprise)

    Canadian banking business

    Canadian banking business means the business carried on by an authorized foreign bank through a permanent establishment (as defined by regulation) in Canada, other than business conducted through a representative office registered or required to be registered under section 509 of the Bank Act; (entreprise bancaire canadienne)

    Canadian-controlled private corporation

    Canadian-controlled private corporation has the meaning assigned by subsection 125(7); (société privée sous contrôle canadien)

    Canadian corporation

    Canadian corporation has the meaning assigned by subsection 89(1); (société canadienne)

    Canadian development expense

    Canadian development expense has the meaning assigned by subsection 66.2(5); (frais d’aménagement au Canada)

    Canadian exploration and development expenses

    Canadian exploration and development expenses has the meaning assigned by subsection 66(15); (frais d’exploration et d’aménagement au Canada)

    Canadian exploration expense

    Canadian exploration expense has the meaning assigned by subsection 66.1(6); (frais d’exploration au Canada)

    Canadian field processing

    Canadian field processing means, except as otherwise prescribed,

    • (a) the processing in Canada of raw natural gas at a field separation and dehydration facility,

    • (b) the processing in Canada of raw natural gas at a natural gas processing plant to any stage that is not beyond the stage of natural gas that is acceptable to a common carrier of natural gas,

    • (c) the processing in Canada of hydrogen sulphide derived from raw natural gas to any stage that is not beyond the marketable sulphur stage,

    • (d) the processing in Canada of natural gas liquids, at a natural gas processing plant where the input is raw natural gas derived from a natural accumulation of natural gas, to any stage that is not beyond the marketable liquefied petroleum stage or its equivalent,

    • (e) the processing in Canada of crude oil (other than heavy crude oil recovered from an oil or gas well or a tar sands deposit) recovered from a natural accumulation of petroleum to any stage that is not beyond the crude oil stage or its equivalent, and

    • (f) prescribed activities

    and for the purposes of paragraphs (b) to (d),

    • (g) gas is not considered to cease to be raw natural gas solely because of its processing at a field separation and dehydration facility until it is received by a common carrier of natural gas, and

    • (h) where all or part of a natural gas processing plant is devoted primarily to the recovery of ethane, the plant, or the part of the plant, as the case may be, is considered not to be a natural gas processing plant; (traitement préliminaire au Canada)

    Canadian oil and gas property expense

    Canadian oil and gas property expense has the meaning assigned by subsection 66.4(5); (frais à l’égard de biens canadiens relatifs au pétrole et au gaz)

    Canadian partnership

    Canadian partnership has the meaning assigned by section 102; (société de personnes canadienne)

    Canadian real, immovable or resource property

    Canadian real, immovable or resource property means

    • (a) a property that would, if this Act were read without reference to the definition real or immovable property in subsection 122.1(1), be a real or immovable property situated in Canada,

    • (b) a Canadian resource property,

    • (c) a timber resource property,

    • (d) a share of the capital stock of a corporation, an income or a capital interest in a trust or an interest in a partnership — other than a taxable Canadian corporation, a SIFT trust (determined without reference to subsection 122.1(2)), a SIFT partnership (determined without reference to subsection 197(8)) or a real estate investment trust (as defined in subsection 122.1(1)) — if more than 50% of the fair market value of the share or interest is derived directly or indirectly from one or any combination of properties described in paragraphs (a) to (c), or

    • (e) any right to or interest in — or, for civil law, any right to or in — any property described in any of paragraphs (a) to (d); (bien canadien immeuble, réel ou minier)

    Canadian resident partnership

    Canadian resident partnership means a partnership that, at any time in respect of which the expression is relevant,

    • (a) is a Canadian partnership,

    • (b) would, if it were a corporation, be resident in Canada (including, for greater certainty, a partnership that has its central management and control in Canada), or

    • (c) was formed under the laws of a province; (société de personnes résidant au Canada)

    Canadian resource property

    Canadian resource property has the meaning assigned by subsection 66(15); (avoir minier canadien)

    capital dividend

    capital dividend has the meaning assigned by section 83; (dividende en capital)

    capital gain

    capital gain for a taxation year from the disposition of any property has the meaning assigned by section 39; (gain en capital)

    capital interest

    capital interest of a taxpayer in a trust has the meaning assigned by subsection 108(1); (participation au capital)

    capital loss

    capital loss for a taxation year from the disposition of any property has the meaning assigned by section 39; (perte en capital)

    capital property

    capital property has the meaning assigned by section 54; (immobilisation)

    cash method

    cash method has the meaning assigned by subsection 28(1); (méthode de comptabilité de caisse)

    cemetery care trust

    cemetery care trust has the meaning assigned by subsection 148.1(1); (fiducie pour l’entretien d’un cimetière)

    common-law partner

    common-law partner, with respect to a taxpayer at any time, means a person who cohabits at that time in a conjugal relationship with the taxpayer and

    • (a) has so cohabited throughout the 12-month period that ends at that time, or

    • (b) would be the parent of a child of whom the taxpayer is a parent, if this Act were read without reference to paragraphs 252(1)(c) and (e) and subparagraph 252(2)(a)(iii),

    and, for the purpose of this definition, where at any time the taxpayer and the person cohabit in a conjugal relationship, they are, at any particular time after that time, deemed to be cohabiting in a conjugal relationship unless they were living separate and apart at the particular time for a period of at least 90 days that includes the particular time because of a breakdown of their conjugal relationship; (conjoint de fait)

    common-law partnership

    common-law partnership means the relationship between two persons who are common-law partners of each other; (union de fait)

    common share

    common share means a share the holder of which is not precluded on the reduction or redemption of the capital stock from participating in the assets of the corporation beyond the amount paid up on that share plus a fixed premium and a defined rate of dividend; (action ordinaire)

    controlled foreign affiliate

    controlled foreign affiliate has, except as expressly otherwise provided in this Act, the meaning assigned by subsection 95(1); (société étrangère affiliée contrôlée)

    corporation

    corporation includes an incorporated company; (société)

    corporation incorporated in Canada

    corporation incorporated in Canada includes a corporation incorporated in any part of Canada before or after it became part of Canada; (société constituée au Canada)

    cost amount

    cost amount to a taxpayer of any property at any time means, except as expressly otherwise provided in this Act,

    • (a) where the property was depreciable property of the taxpayer of a prescribed class, the amount that would be that proportion of the undepreciated capital cost to the taxpayer of property of that class at that time that the capital cost to the taxpayer of the property is of the capital cost to the taxpayer of all property of that class that had not been disposed of by the taxpayer before that time if subsection 13(7) were read without reference to paragraph 13(7)(e) and if

      • (i) paragraph 13(7)(b) were read as follows:

        • “(b) where a taxpayer, having acquired property for some other purpose, has commenced at a later time to use it for the purpose of gaining or producing income, the taxpayer shall be deemed to have acquired it at that later time at a capital cost to the taxpayer equal to the fair market value of the property at that later time;”, and

      • (ii) subparagraph 13(7)(d)(i) were read as follows:

        • “(i) if the use regularly made by the taxpayer of the property for the purpose of gaining or producing income has increased, the taxpayer shall be deemed to have acquired at that time depreciable property of that class at a capital cost equal to the proportion of its fair market value at that time that the amount of the increase in the use regularly made by the taxpayer of the property for that purpose is of the whole of the use regularly made of the property, and”

    • (b) where the property was capital property (other than depreciable property) of the taxpayer, its adjusted cost base to the taxpayer at that time,

    • (c) where the property was property described in an inventory of the taxpayer, its value at that time as determined for the purpose of computing the taxpayer’s income,

    • (c.1) where the taxpayer was a financial institution in its taxation year that includes that time and the property was a mark-to-market property for the year, the cost to the taxpayer of the property,

    • (d) [Repealed, 2016, c. 12, s. 63]

    • (d.1) where the property was a loan or lending asset (other than a net income stabilization account or a property in respect of which paragraph (b), (c), (c.1) or (d.2) applies), the amortized cost of the property to the taxpayer at that time,

    • (d.2) where the taxpayer was a financial institution in its taxation year that includes that time and the property was a specified debt obligation (other than a mark-to-market property for the year), the tax basis of the property to the taxpayer at that time,

    • (e) where the property was a right of the taxpayer to receive an amount, other than property that is

      • (i) a debt the amount of which was deducted under paragraph 20(1)(p) in computing the taxpayer’s income for a taxation year that ended before that time,

      • (ii) a net income stabilization account,

      • (iii) a right in respect of which paragraph (b), (c), (c.1), (d.1) or (d.2) applies, or

      • (iv) a right to receive production (as defined in subsection 18.1(1)) to which a matchable expenditure (as defined in subsection 18.1(1)) relates,

      the amount the taxpayer has a right to receive,

    • (e.1) where the property was a policy loan (within the meaning assigned by subsection 138(12)) of an insurer, nil,

    • (e.2) where the property is an interest of a beneficiary under a qualifying environmental trust, nil, and

    • (f) in any other case, the cost to the taxpayer of the property as determined for the purpose of computing the taxpayer’s income, except to the extent that that cost has been deducted in computing the taxpayer’s income for any taxation year ending before that time;

    and, for the purposes of this definition, financial institution, mark-to-market property and specified debt obligation have the meanings assigned by subsection 142.2(1), and tax basis has the meaning assigned by subsection 142.4(1); (coût indiqué)

    credit union

    credit union has the meaning assigned by subsection 137(6), except for the purposes of Part XV.1; (caisse de crédit)

    cumulative eligible capital

    cumulative eligible capital[Repealed, 2016, c. 12, s. 63]

    death benefit

    death benefit means the total of all amounts received by a taxpayer in a taxation year on or after the death of an employee in recognition of the employee’s service in an office or employment minus

    • (a) where the taxpayer is the only person who has received such an amount and who is a surviving spouse or common-law partner of the employee (which person is, in this definition, referred to as the “surviving spouse or common-law partner”), the lesser of

      • (i) the total of all amounts so received by the taxpayer in the year, and

      • (ii) the amount, if any, by which $10,000 exceeds the total of all amounts received by the taxpayer in preceding taxation years on or after the death of the employee in recognition of the employee’s service in an office or employment, or

    • (b) where the taxpayer is not the surviving spouse or common-law partner of the employee, the lesser of

      • (i) the total of all amounts so received by the taxpayer in the year, and

      • (ii) that proportion of

        • (A) the amount, if any, by which $10,000 exceeds the total of all amounts received by the surviving spouse or common-law partner of the employee at any time on or after the death of the employee in recognition of the employee’s service in an office or employment

        that

        • (B) the amount described in subparagraph (i)

        is of

        • (C) the total of all amounts received by all taxpayers other than the surviving spouse or common-law partner of the employee at any time on or after the death of the employee in recognition of the employee’s service in an office or employment; (prestation consécutive au décès)

    deferred amount

    deferred amount at the end of a taxation year under a salary deferral arrangement in respect of a taxpayer means

    • (a) in the case of a trust governed by the arrangement, any amount that a person has a right under the arrangement at the end of the year to receive after the end of the year where the amount has been received, is receivable or may at any time become receivable by the trust as, on account or in lieu of salary or wages of the taxpayer for services rendered in the year or a preceding taxation year, and

    • (b) in any other case, any amount that a person has a right under the arrangement at the end of the year to receive after the end of the year,

    and, for the purposes of this definition, a right under the arrangement shall include a right that is subject to one or more conditions unless there is a substantial risk that any one of those conditions will not be satisfied; (montant différé)

    deferred profit sharing plan

    deferred profit sharing plan has the meaning assigned by subsection 147(1); (régime de participation différée aux bénéfices)

    depreciable property

    depreciable property has the meaning assigned by subsection 13(21); (bien amortissable)

    derivative forward agreement

    derivative forward agreement, of a taxpayer, means an agreement entered into by the taxpayer to purchase or sell a capital property if

    • (a) the term of the agreement exceeds 180 days or the agreement is part of a series of agreements with a term that exceeds 180 days,

    • (b) in the case of a purchase agreement, the difference between the fair market value of the property delivered on settlement, including partial settlement, of the agreement and the amount paid for the property is attributable, in whole or in part, to an underlying interest (including a value, price, rate, variable, index, event, probability or thing) other than

      • (i) revenue, income or cashflow in respect of the property over the term of the agreement, changes in the fair market value of the property over the term of the agreement, or any similar criteria in respect of the property unless

        • (A) the property is

          • (I) a Canadian security (as defined in subsection 39(6)), or

          • (II) an interest in a partnership the fair market value of which is derived, in whole or in part, from a Canadian security,

        • (B) the agreement is an agreement to acquire property from

          • (I) a tax-indifferent investor, or

          • (II) a financial institution (as defined in subsection 142.2(1)), and

        • (C) it can reasonably be considered that one of the main purposes of the series of transactions or events, or any transaction or event in the series, of which the agreement is part is for all or any portion of the capital gain on a disposition (other than a disposition by the seller to the taxpayer under the agreement) of a Canadian security referred to in clause (A) — as part of the same series of transactions or events — to be attributable to amounts paid or payable on the Canadian security by the issuer of the Canadian security during the term of the agreement as

          • (I) interest,

          • (II) dividends, or

          • (III) income of a trust other than income paid out of the taxable capital gains of the trust,

      • (ii) if the purchase price is denominated in the currency of a country other than Canada, changes in the value of the Canadian currency relative to that other currency, or

      • (iii) an underlying interest that relates to a purchase of currency, if it can reasonably be considered that the purchase is agreed to by the taxpayer in order to reduce its risk of fluctuations in the value of the currency in which a purchase or sale by the taxpayer of a capital property is denominated, in which an obligation that is a capital property of the taxpayer is denominated or from which a capital property of the taxpayer derives its value, and

    • (c) in the case of a sale agreement,

      • (i) the difference between the sale price of the property and the fair market value of the property at the time the agreement is entered into by the taxpayer is attributable, in whole or in part, to an underlying interest (including a value, price, rate, variable, index, event, probability or thing) other than

        • (A) revenue, income or cashflow in respect of the property over the term of the agreement, changes in the fair market value of the property over the term of the agreement, or any similar criteria in respect of the property,

        • (B) if the sale price is denominated in the currency of a country other than Canada, changes in the value of the Canadian currency relative to that other currency, or

        • (C) an underlying interest that relates to a sale of currency, if it can reasonably be considered that the sale is agreed to by the taxpayer in order to reduce its risk of fluctuations in the value of the currency in which a purchase or sale by the taxpayer of a capital property is denominated, in which an obligation that is a capital property of the taxpayer is denominated or from which a capital property of the taxpayer derives its value, and

      • (ii) the agreement is part of an arrangement that has the effect — or would have the effect if the agreements that are part of the arrangement and that were entered into by persons or partnerships not dealing at arm’s length with the taxpayer were entered into by the taxpayer instead of non-arm’s length persons or partnerships — of eliminating a majority of the taxpayer’s risk of loss and opportunity for gain or profit in respect of the property for a period of more than 180 days; (contrat dérivé à terme)

    designated insurance property

    designated insurance property has the meaning assigned by subsection 138(12); (bien d’assurance désigné)

    designated stock exchange

    designated stock exchange means a stock exchange, or that part of a stock exchange, for which a designation by the Minister of Finance under section 262 is in effect; (bourse de valeurs désignée)

    disposition

    disposition of any property, except as expressly otherwise provided, includes

    • (a) any transaction or event entitling a taxpayer to proceeds of disposition of the property,

    • (b) any transaction or event by which,

      • (i) where the property is a share, bond, debenture, note, certificate, mortgage, hypothecary claim, agreement of sale or similar property, or interest, or for civil law a right, in it, the property is in whole or in part redeemed, acquired or cancelled,

      • (ii) where the property is a debt or any other right to receive an amount, the debt or other right is settled or cancelled,

      • (iii) where the property is a share, the share is converted because of an amalgamation or merger,

      • (iv) where the property is an option to acquire or dispose of property, the option expires, and

      • (v) a trust, that can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property (unless the trust is described in any of paragraphs (a) to (e.1) of the definition trust in subsection 108(1)), ceases to act as agent for a beneficiary under the trust with respect to any dealing with any of the trust’s property,

    • (b.1) where the property is an interest in a life insurance policy, a disposition within the meaning of section 148,

    • (c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by paragraph (f) or (k), and

    • (d) where the property is, or is part of, a taxpayer’s capital interest in a trust, except as provided by paragraph (h) or (i), a payment made after 1999 to the taxpayer from the trust that can reasonably be considered to have been made because of the taxpayer’s capital interest in the trust,

    but does not include

    • (e) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, except where the transfer is

      • (i) from a person or a partnership to a trust for the benefit of the person or the partnership,

      • (ii) from a trust to a beneficiary under the trust, or

      • (iii) from one trust maintained for the benefit of one or more beneficiaries under the trust to another trust maintained for the benefit of the same beneficiaries,

    • (f) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, where

      • (i) the transferor and the transferee are trusts that are, at the time of the transfer, resident in Canada,

      • (ii) [Repealed, 2013, c. 34, s. 358]

      • (iii) the transferee does not receive the property in satisfaction of the transferee’s right as a beneficiary under the transferor trust,

      • (iv) the transferee held no property immediately before the transfer (other than property the cost of which is not included, for the purposes of this Act, in computing a balance of undeducted outlays, expenses or other amounts in respect of the transferee),

      • (v) the transferee does not file a written election with the Minister on or before the filing-due date for its taxation year in which the transfer is made (or on such later date as is acceptable to the Minister) that this paragraph not apply,

      • (vi) if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (in this paragraph having the meaning assigned by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan, a registered supplementary unemployment benefit plan or a TFSA, the transferee is the same type of trust, and

      • (vii) the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value,

    • (g) [Repealed, 2005, c. 30, s. 17]

    • (h) where the property is part of a capital interest of a taxpayer in a trust (other than a personal trust or a trust prescribed for the purpose of subsection 107(2)) that is described by reference to units issued by the trust, a payment after 1999 from the trust in respect of the capital interest, where the number of units in the trust that are owned by the taxpayer is not reduced because of the payment,

    • (i) where the property is a taxpayer’s capital interest in a trust, a payment to the taxpayer after 1999 in respect of the capital interest to the extent that the payment

      • (i) is out of the income of the trust (determined without reference to subsection 104(6)) for a taxation year or out of the capital gains of the trust for the year, if the payment was made in the year or the right to the payment was acquired by the taxpayer in the year, or

      • (ii) is in respect of an amount designated in respect of the taxpayer by the trust under subsection 104(20),

    • (j) any transfer of the property for the purpose only of securing a debt or a loan, or any transfer by a creditor for the purpose only of returning property that had been used as security for a debt or a loan,

    • (k) any transfer of the property to a trust as a consequence of which there is no change in the beneficial ownership of the property, where the main purpose of the transfer is

      • (i) to effect payment under a debt or loan,

      • (ii) to provide assurance that an absolute or contingent obligation of the transferor will be satisfied, or

      • (iii) to facilitate either the provision of compensation or the enforcement of a penalty, in the event that an absolute or contingent obligation of the transferor is not satisfied,

    • (l) any issue of a bond, debenture, note, certificate, mortgage or hypothecary claim,

    • (m) any issue by a corporation of a share of its capital stock, or any other transaction that, but for this paragraph, would be a disposition by a corporation of a share of its capital stock, and

    • (n) a redemption, an acquisition or a cancellation of a share or of a right to acquire a share (which share or which right, as the case may be, is referred to in this paragraph as the “security”) of the capital stock of a corporation (referred to in this paragraph as the “issuing corporation”) held by another corporation (referred to in this paragraph as the “disposing corporation”) if

      • (i) the redemption, acquisition or cancellation occurs as part of a merger or combination of two or more corporations (including the issuing corporation and the disposing corporation) to form one corporate entity (referred to in this paragraph as the “new corporation”),

      • (ii) the merger or combination

        • (A) is an amalgamation (within the meaning assigned by subsection 87(1)) to which subsection 87(11) does not apply,

        • (B) is an amalgamation (within the meaning assigned by subsection 87(1)) to which subsection 87(11) applies, if the issuing corporation and the disposing corporation are described by subsection 87(11) as the parent and the subsidiary, respectively,

        • (C) is a foreign merger (within the meaning assigned by subsection 87(8.1)), or

        • (D) would be a foreign merger (within the meaning assigned by subsection 87(8.1)) if subparagraph 87(8.1)(c)(ii) were read without reference to the words “that was resident in a country other than Canada”, and

      • (iii) either

        • (A) the disposing corporation receives no consideration for the security, or

        • (B) in the case where the merger or combination is described by clause (ii)(C) or (D), the disposing corporation receives no consideration for the security other than property that was, immediately before the merger or combination, owned by the issuing corporation and that, on the merger or combination, becomes property of the new corporation; (disposition)

    dividend

    dividend includes a stock dividend (other than a stock dividend that is paid to a corporation or to a mutual fund trust by a non-resident corporation); (dividende)

    dividend rental arrangement

    dividend rental arrangement, of a person or a partnership (each of which is referred to in this definition as the person), means

    • (a) any arrangement entered into by the person where it can reasonably be considered that

      • (i) the main reason for the person entering into the arrangement was to enable the person to receive a dividend on a share of the capital stock of a corporation, other than a dividend on a prescribed share or on a share described in paragraph (e) of the definition term preferred share in this subsection or an amount deemed by subsection 15(3) to be received as a dividend on a share of the capital stock of a corporation, and

      • (ii) under the arrangement someone other than that person bears the risk of loss or enjoys the opportunity for gain or profit with respect to the share in any material respect,

    • (b) for greater certainty, any arrangement under which

      • (i) a corporation at any time receives on a particular share a taxable dividend that would, if this Act were read without reference to subsection 112(2.3), be deductible in computing its taxable income or taxable income earned in Canada for the taxation year that includes that time, and

      • (ii) the corporation or a partnership of which the corporation is a member is obligated to pay to another person or partnership an amount

        • (A) that is compensation for

          • (I) the dividend described in subparagraph (i),

          • (II) a dividend on a share that is identical to the particular share, or

          • (III) a dividend on a share that, during the term of the arrangement, can reasonably be expected to provide to a holder of the share the same or substantially the same proportionate risk of loss or opportunity for gain as the particular share, and

        • (B) that, if paid, would be deemed by subsection 260(5.1) to have been received by that other person or partnership, as the case may be, as a taxable dividend,

    • (c) any synthetic equity arrangement, in respect of a DRA share of the person, and

    • (d) one or more agreements or arrangements (other than agreements or arrangements described in paragraph (c)) entered into by the person, the connected person referred to in paragraph (a) of the definition synthetic equity arrangement or, for greater certainty, by any combination of the person and connected persons, if

      • (i) the agreements or arrangements have the effect, or would have the effect if each agreement or arrangement entered into by a connected person were entered into by the person, of eliminating all or substantially all of the person’s risk of loss and opportunity for gain or profit in respect of a DRA share of the person,

      • (ii) as part of a series of transactions that includes these agreements or arrangements, a tax-indifferent investor, or a group of tax-indifferent investors each member of which is affiliated with every other member, obtains all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share or an identical share (as defined in subsection 112(10)), and

      • (iii) it is reasonable to conclude that one of the purposes of the series of transactions is to obtain the result described in subparagraph (ii); (mécanisme de transfert de dividendes)

    DRA share

    DRA share, of a person or partnership, means a share

    • (a) that is owned by the person or partnership,

    • (b) in respect of which the person or partnership is deemed to have received a dividend under subsection 260(5.1) and is provided with all or substantially all of the risk of loss and opportunity for gain or profit under an agreement or arrangement,

    • (c) that is held by a trust under which the person or partnership is a beneficiary and in respect of which the person or partnership is deemed to have received a dividend as a result of a designation by the trust under subsection 104(19),

    • (d) in respect of which the person or partnership is deemed to have received a dividend under subsection 82(2), or

    • (e) in any other case, in respect of which the person or partnership is (or would be in the absence of subsection 112(2.3)) entitled to a deduction under subsection 112(1) in respect of dividends received on the share; (action de mécanisme de transfert de dividendes ou AMTD)

    eligible capital amount

    eligible capital amount[Repealed, 2016, c. 12, s. 63]

    eligible capital expenditure

    eligible capital expenditure[Repealed, 2016, c. 12, s. 63]

    eligible capital property

    eligible capital property[Repealed, 2016, c. 12, s. 63]

    eligible dividend

    eligible dividend has the meaning assigned by subsection 89(1); (dividende déterminé)

    eligible funeral arrangement

    eligible funeral arrangement has the meaning assigned by subsection 148.1(1); (arrangement de services funéraires)

    eligible relocation

    eligible relocation means a relocation of a taxpayer in respect of which the following apply:

    • (a) the relocation occurs to enable the taxpayer

      • (i) to carry on a business or to be employed at a location (in section 62 and this definition referred to as “the new work location”) that is, except if the taxpayer is absent from but resident in Canada, in Canada, or

      • (ii) to be a student in full-time attendance enrolled in a program at a post-secondary level at a location of a university, college or other educational institution (in section 62 and this definition referred to as “the new work location”),

    • (b) the taxpayer ordinarily resided before the relocation at a residence (in section 62 and this definition referred to as “the old residence”) and ordinarily resided after the relocation at a residence (in section 62 and this definition referred to as “the new residence”),

    • (c) except if the taxpayer is absent from but resident in Canada, both the old residence and the new residence are in Canada, and

    • (d) the distance between the old residence and the new work location is not less than 40 kilometres greater than the distance between the new residence and the new work location; (réinstallation admissible)

    emissions allowance

    emissions allowance means an allowance, credit or similar instrument that represents a unit of emissions that can be used to satisfy a requirement under the laws of Canada or a province governing emissions of a regulated substance, such as greenhouse gas emissions; (droit d’émissions)

    emissions obligation

    emissions obligation means an obligation to surrender an emissions allowance, or an obligation that can otherwise be satisfied through the use of an emissions allowance, under a law of Canada or a province governing emissions of a regulated substance; (obligation d’émissions)

    employed

    employed means performing the duties of an office or employment; (employé (être))

    employee

    employee includes officer; (employé)

    employee benefit plan

    employee benefit plan means an arrangement under which contributions are made by an employer or by any person with whom the employer does not deal at arm’s length to another person (in this Act referred to as the “custodian” of an employee benefit plan) and under which one or more payments are to be made to or for the benefit of employees or former employees of the employer or persons who do not deal at arm’s length with any such employee or former employee (other than a payment that, if section 6 were read without reference to subparagraph 6(1)(a)(ii) and paragraph 6(1)(g), would not be required to be included in computing the income of the recipient or of an employee or former employee), but does not include any portion of the arrangement that is

    • (a) a fund, plan or trust referred to in subparagraph 6(1)(a)(i) or paragraph 6(1)(d) or (f),

    • (b) a trust described in paragraph 149(1)(y),

    • (c) an employee trust,

    • (c.1) a salary deferral arrangement, in respect of a taxpayer, under which deferred amounts are required to be included as benefits under paragraph 6(1)(a) in computing the taxpayer’s income,

    • (c.2) a retirement compensation arrangement,

    • (d) an arrangement the sole purpose of which is to provide education or training for employees of the employer to improve their work or work-related skills and abilities, or

    • (e) a prescribed arrangement; (régime de prestations aux employés)

    employee life and health trust

    employee life and health trust has the meaning assigned by subsection 144.1(2); (fiducie de soins de santé au bénéfice d’employés)

    employee trust

    employee trust means an arrangement (other than an employees profit sharing plan, a deferred profit sharing plan or a plan referred to in subsection 147(15) as a “revoked plan”) established after 1979

    • (a) under which payments are made by one or more employers to a trustee in trust solely to provide to employees or former employees of

      • (i) the employer, or

      • (ii) a person with whom the employer does not deal at arm’s length,

      benefits the right to which vests at the time of each such payment and the amount of which does not depend on the individual’s position, performance or compensation as an employee,

    • (b) under which the trustee has, since the commencement of the arrangement, each year allocated to individuals who are beneficiaries thereunder, in such manner as is reasonable, the amount, if any, by which the total of all amounts each of which is

      • (i) an amount received under the arrangement by the trustee in the year from an employer or from a person with whom the employer does not deal at arm’s length,

      • (ii) the amount that would, if this Act were read without reference to subsection 104(6), be the income of the trust for the year (other than a taxable capital gain from the disposition of property) from a property or other source other than a business, or

      • (iii) a capital gain of the trust for the year from the disposition of property

      exceeds the total of all amounts each of which is

      • (iv) the loss of the trust for the year (other than an allowable capital loss from the disposition of property) from a property or other source other than a business, or

      • (v) a capital loss of the trust for the year from the disposition of property, and

    • (c) the trustee of which has elected to qualify the arrangement as an employee trust in its return of income filed within 90 days from the end of its first taxation year; (fiducie d’employés)

    employees profit sharing plan

    employees profit sharing plan has the meaning assigned by subsection 144(1); (régime de participation des employés aux bénéfices)

    employer

    employer, in relation to an officer, means the person from whom the officer receives the officer’s remuneration; (employeur)

    employment

    employment means the position of an individual in the service of some other person (including Her Majesty or a foreign state or sovereign) and servant or employee means a person holding such a position; (emploi)

    estate

    estate has the meaning assigned by subsection 104(1) and includes, for civil law, a succession; (succession)

    estate of the bankrupt

    estate of the bankrupt has the same meaning as in the Bankruptcy and Insolvency Act; (actifs du failli)

    excessive eligible dividend designation

    excessive eligible dividend designation has the meaning assigned by subsection 89(1); (désignation excessive de dividende déterminé)

    exempt income

    exempt income means property received or acquired by a person in such circumstances that it is, because of any provision of Part I, not included in computing the person’s income, but does not include a dividend on a share or a support amount (as defined in subsection 56.1(4)); (revenu exonéré)

    farming

    farming includes tillage of the soil, livestock raising or exhibiting, maintaining of horses for racing, raising of poultry, fur farming, dairy farming, fruit growing and the keeping of bees, but does not include an office or employment under a person engaged in the business of farming; (agriculture)

    farm loss

    farm loss has the meaning assigned by subsection 111(8); (perte agricole)

    federal credit union

    federal credit union has the meaning assigned by section 2 of the Bank Act; (coopérative de crédit fédérale)

    filing-due date

    filing-due date for a taxation year of a taxpayer means the day on or before which the taxpayer’s return of income under Part I for the year is required to be filed or would be required to be filed if tax under that Part were payable by the taxpayer for the year; (date d’échéance de production)

    fiscal period

    fiscal period[Repealed, 1996, c. 21, s. 60]

    fishing

    fishing includes fishing for or catching shellfish, crustaceans and marine animals but does not include an office or employment under a person engaged in the business of fishing; (pêche)

    flow-through share

    flow-through share has the meaning assigned by subsection 66(15); (action accréditive)

    foreign accrual property income

    foreign accrual property income has the meaning assigned by section 95; (revenu étranger accumulé, tiré de biens)

    foreign affiliate

    foreign affiliate has the meaning assigned by subsection 95(1); (société étrangère affiliée)

    foreign currency

    foreign currency means currency of a country other than Canada; (monnaie étrangère)

    foreign currency debt

    foreign currency debt has the meaning assigned by subsection 111(8); (dette en monnaie étrangère)

    foreign exploration and development expenses

    foreign exploration and development expenses has the meaning assigned by subsection 66(15); (frais d’exploration et d’aménagement à l’étranger)

    foreign resource expense

    foreign resource expense has the meaning assigned by subsection 66.21(1); (frais relatifs à des ressources à l’étranger)

    foreign resource pool expenses

    foreign resource pool expenses of a taxpayer means the taxpayer’s foreign resource expenses in respect of all countries and the taxpayer’s foreign exploration and development expenses; (frais globaux relatifs à des ressources à l’étranger)

    foreign resource property

    foreign resource property has the meaning assigned by subsection 66(15), and a foreign resource property in respect of a country means a foreign resource property that is

    • (a) a right, licence or privilege to explore for, drill for or take petroleum, natural gas or related hydrocarbons in that country,

    • (b) a right, licence or privilege to

      • (i) store underground petroleum, natural gas or related hydrocarbons in that country, or

      • (ii) prospect, explore, drill or mine for minerals in a mineral resource in that country,

    • (c) an oil or gas well in that country or real or immovable property in that country the principal value of which depends on its petroleum or natural gas content (but not including depreciable property),

    • (d) any right to a rental or royalty computed by reference to the amount or value of production from an oil or gas well in that country, or from a natural accumulation of petroleum or natural gas in that country, if the payer of the rental or royalty has an interest in, or for civil law a right in, the well or accumulation, as the case may be, and 90% or more of the rental or royalty is payable out of, or from the proceeds of, the production from the well or accumulation,

    • (e) any right to a rental or royalty computed by reference to the amount or value of production from a mineral resource in that country, if the payer of the rental or royalty has an interest in, or for civil law a right in, the mineral resource and 90% or more of the rental or royalty is payable out of, or from the proceeds of, the production from the mineral resource,

    • (f) a real or immovable property in that country the principal value of which depends upon its mineral resource content (but not including depreciable property),

    • (g) a right to or an interest in — or for civil law a right to or in — any property described in any of paragraphs (a) to (e), other than a right or an interest that the taxpayer has because the taxpayer is a beneficiary under a trust or a member of a partnership, or

    • (h) an interest in real property described in paragraph (f) or a real right in an immovable described in that paragraph, other than an interest or a right that the taxpayer has because the taxpayer is a beneficiary under a trust or a member of a partnership; (avoir minier étranger)

    foreign retirement arrangement

    foreign retirement arrangement means a prescribed plan or arrangement; (mécanisme de retraite étranger)

    former business property

    former business property, in respect of a taxpayer, means a capital property of the taxpayer that was used by the taxpayer or a person related to the taxpayer primarily for the purpose of gaining or producing income from a business, and that was real or immovable property of the taxpayer, an interest of the taxpayer in real property, a right of the taxpayer in an immovable or a property that is the subject of an election under subsection 13(4.2), but does not include

    • (a) a rental property of the taxpayer,

    • (b) land subjacent to a rental property of the taxpayer,

    • (c) land contiguous to land referred to in paragraph (b) that is a parking area, driveway, yard or garden or that is otherwise necessary for the use of the rental property referred to in that paragraph, or

    • (d) a leasehold interest in any property described in paragraphs (a) to (c),

    and for the purpose of this definition, rental property of a taxpayer means real or immovable property owned by the taxpayer, whether jointly with another person or otherwise, and used by the taxpayer in the taxation year in respect of which the expression is being applied principally for the purpose of gaining or producing gross revenue that is rent (other than property leased by the taxpayer to a person related to the taxpayer and used by that related person principally for any other purpose), but, for greater certainty, does not include a property leased by the taxpayer or the related person to a lessee, in the ordinary course of a business of the taxpayer or the related person of selling goods or rendering services, under an agreement by which the lessee undertakes to use the property to carry on the business of selling or promoting the sale of the goods or services of the taxpayer or the related person; (ancien bien d’entreprise)

    fully collateralized arrangement

    fully collateralized arrangement means a securities lending arrangement or a specified securities lending arrangement if, throughout the term of the arrangement, the borrower

    • (a) has provided the lender under the arrangement with money in an amount of, or securities described in paragraph (c) of the definition qualified security in subsection 260(1) that have a fair market value of, not less than 95% of the fair market value of the security that is transferred or lent under the arrangement, and

    • (b) is entitled to enjoy, directly or indirectly, the benefits of all or substantially all income derived from, and opportunity for gain in respect of, the money or securities provided; (mécanisme entièrement garanti)

    functional currency

    functional currency[Repealed, 2009, c. 2, s. 76]

    general rate income pool

    general rate income pool has the meaning assigned by subsection 89(1); (compte de revenu à taux général)

    goods and services tax

    goods and services tax means the tax payable under Part IX of the Excise Tax Act; (taxe sur les produits et services)

    graduated rate estate

    graduated rate estate, of an individual at any time, means the estate that arose on and as a consequence of the individual’s death if

    • (a) that time is no more than 36 months after the death,

    • (b) the estate is at that time a testamentary trust,

    • (c) the individual’s Social Insurance Number (or if the individual had not, before the death, been assigned a Social Insurance Number, such other information as is acceptable to the Minister) is provided in the estate’s return of income under Part I for the taxation year that includes that time and for each of its earlier taxation years that ended after 2015,

    • (d) the estate designates itself as the graduated rate estate of the individual in its return of income under Part I for its first taxation year that ends after 2015, and

    • (e) no other estate designates itself as the graduated rate estate of the individual in a return of income under Part I for a taxation year that ends after 2015; (succession assujettie à l’imposition à taux progressifs)

    grandfathered share

    grandfathered share means

    • (a) a share of the capital stock of a corporation issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 pursuant to an agreement in writing entered into before that time,

    • (b) a share of the capital stock of a corporation issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 and before 1988 as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice filed before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 with a public authority pursuant to and in accordance with the securities legislation of the jurisdiction in which the shares are distributed,

    • (c) a share (in this paragraph referred to as the “new share”) of the capital stock of a corporation that is issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 in exchange for

      • (i) a share of a corporation that was issued before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 or is a grandfathered share, or

      • (ii) a debt obligation of a corporation that was

        • (A) issued before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987, or

        • (B) issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 under an agreement in writing entered into before that time, or after that time and before 1988 as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice filed before that time with a public authority under and in accordance with the securities legislation of the jurisdiction in which the debt obligation is distributed,

      where the right to the exchange and all or substantially all the terms and conditions of the new share were established in writing before that time, and

    • (d) a share of a class of the capital stock of a Canadian corporation listed on a designated stock exchange that is issued after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 on the exercise of a right that

      • (i) was issued before that time, that was issued after that time under an agreement in writing entered into before that time or that was issued after that time and before 1988 as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice filed before that time with a public authority under and in accordance with the securities legislation of the jurisdiction in which the rights were distributed, and

      • (ii) was listed on a designated stock exchange,

      where all or substantially all the terms and conditions of the right and the share were established in writing before that time,

    except that a share that is deemed under the definition short-term preferred share, taxable preferred share or term preferred share in this subsection or under subsection 112(2.22) to have been issued at any time is deemed after that time not to be a grandfathered share for the purposes of that provision; (action de régime transitoire)

    gross revenue

    gross revenue of a taxpayer for a taxation year means the total of

    • (a) all amounts received in the year or receivable in the year (depending on the method regularly followed by the taxpayer in computing the taxpayer’s income) otherwise than as or on account of capital, and

    • (b) all amounts (other than amounts referred to in paragraph (a)) included in computing the taxpayer’s income from a business or property for the year because of subsection 12(3) or (4) or section 12.2 of this Act or subsection 12(8) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952; (revenu brut)

    group term life insurance policy

    group term life insurance policy means a group life insurance policy under which the only amounts payable by the insurer are

    • (a) amounts payable on the death or disability of individuals whose lives are insured in respect of, in the course of or because of, their office or employment or former office or employment, and

    • (b) policy dividends or experience rating refunds; (police d’assurance-vie collective temporaire)

    highest individual percentage

    highest individual percentage, for a taxation year, means the highest percentage referred to in subsection 117(2) for the taxation year; (taux d’imposition supérieur pour l’année)

    home relocation loan

    home relocation loan means a loan received by an individual or the individual’s spouse or common-law partner in circumstances where the individual has commenced employment at a location in Canada (in this definition referred to as the “new work location”) and by reason thereof has moved from the residence in Canada at which, before the move, the individual ordinarily resided (in this definition referred to as the “old residence”) to a residence in Canada at which, after the move, the individual ordinarily resided (in this definition referred to as the “new residence”) if

    • (a) the distance between the old residence and the new work location is at least 40 kilometres greater than the distance between the new residence and the new work location,

    • (b) the loan is used to acquire a dwelling, or a share of the capital stock of a cooperative housing corporation acquired for the sole purpose of acquiring the right to inhabit a dwelling owned by the corporation, where the dwelling is for the habitation of the individual and is the individual’s new residence,

    • (c) the loan is received in the circumstances described in subsection 80.4(1), or would have been so received if subsection 80.4(1.1) had applied to the loan at the time it was received, and

    • (d) the loan is designated by the individual to be a home relocation loan, but in no case shall more than one loan in respect of a particular move, or more than one loan at any particular time, be designated as a home relocation loan by the individual; (prêt à la réinstallation)

    income-averaging annuity contract

    income-averaging annuity contract of an individual means, except for the purposes of section 61, a contract

    • (a) that is an income-averaging annuity contract within the meaning assigned by subsection 61(4), and

    • (b) in respect of which the individual has made a deduction under section 61 in computing the individual’s income for a taxation year; (contrat de rente à versements invariables)

    income bond

    income bond or income debenture of a corporation (in this definition referred to as the “issuing corporation”) means a bond or debenture in respect of which interest or dividends are payable only to the extent that the issuing corporation has made a profit before taking into account the interest or dividend obligation and that was issued

    • (a) before November 17, 1978,

    • (b) 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”), or

    • (c) by an issuing corporation resident in Canada for a term that may not, in any circumstances, exceed 5 years,

      • (i) as part of a proposal to or an arrangement with its creditors that had been approved by a court under the Bankruptcy 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 bond or debenture 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 bond or debenture 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 bond or debenture was issued,

    and, for the purposes of this definition,

    • (d) where the terms or conditions of an established agreement were amended after November 16, 1978, the agreement shall be deemed to have been made after that date, and

    • (e) where

      • (i) at any particular time the terms or conditions of a bond or debenture issued pursuant to an established agreement or of any agreement relating to such a bond or debenture have been changed,

      • (ii) under the terms or conditions of a bond or debenture acquired in the ordinary course of the business carried on by a specified financial institution or a partnership or trust (other than a testamentary trust) or under the terms or conditions of any agreement relating to any such bond or debenture (other than an agreement made before October 24, 1979 to which the issuing corporation or any person related thereto was not a party), the owner thereof could at any particular time after November 16, 1978 require, either alone or together with one or more taxpayers, the repayment, acquisition, cancellation or conversion of the bond or debenture otherwise than by reason of a failure or default under the terms or conditions of the bond or debenture or any agreement that related to, and was entered into at the time of, the issuance of the bond or debenture,

      • (iii) at any particular time after November 16, 1978, the maturity date of a bond or debenture was extended or the terms or conditions relating to the repayment of the principal amount thereof were changed,

      • (iv) at a particular time a specified financial institution (or a partnership or trust of which a specified financial institution or a person related to the institution is a member or beneficiary) acquires a bond or debenture that

        • (A) was issued before November 17, 1978 or under an established agreement,

        • (B) was issued to a person other than a corporation that was, at the time of issue,

          • (I) described in any of paragraphs (a) to (e) of the definition specified financial institution, or

          • (II) a corporation that was controlled by one or more corporations described in subclause (I) and, for the purpose of this subclause, one corporation is controlled by another corporation if more than 50% of its issued share capital (having full voting rights under all circumstances) belongs to the other corporation, to persons with whom the other corporation does not deal at arm’s length, or to the other corporation and persons with whom the other corporation does not deal at arm’s length,

        • (C) was acquired from a person that was, at the time the person last acquired the bond or debenture and at the particular time, a person other than a corporation described in any of paragraphs (a) to (f) of that definition, and

        • (D) was acquired otherwise than under an agreement in writing made before October 24, 1979, or

      • (v) at a particular time after November 12, 1981, a specified financial institution (or a partnership or trust of which a specified financial institution or a person related to the institution is a member or beneficiary) acquires a bond or debenture that

        • (A) was not a bond or debenture referred to in paragraph (c),

        • (B) was acquired from a person that was, at the particular time, a corporation described in any of paragraphs (a) to (f) of the definition specified financial institution, and

        • (C) was acquired subject to or conditional on a guarantee agreement (within the meaning that would be assigned by subsection 112(2.2) if the reference in that subsection to a “share” were read as a reference to an “income bond” or “income debenture”) that was entered into after November 12, 1981,

      the bond or debenture shall, for the purposes of determining at any time after the particular time whether it is an income bond or income debenture, be deemed to have been issued at the particular time otherwise than pursuant to an established agreement; (obligation à intérêt conditionnel)

    income interest

    income interest of a taxpayer in a trust has the meaning assigned by subsection 108(1); (participation au revenu)

    indexed debt obligation

    indexed debt obligation means a debt obligation the terms or conditions of which provide for an adjustment to an amount payable in respect of the obligation for a period during which the obligation was outstanding that is determined by reference to a change in the purchasing power of money; (titre de créance indexé)

    individual

    individual means a person other than a corporation; (particulier)

    insurance corporation

    insurance corporation means a corporation that carries on an insurance business; (compagnie d’assurance)

    insurance policy

    insurance policy includes a life insurance policy; (police d’assurance)

    insurer

    insurer has the meaning assigned by this subsection to the expression insurance corporation; (assureur)

    international shipping

    international shipping means the operation of a ship owned or leased by a person or partnership (in this definition referred to as the “operator”) that is used, either directly or as part of a pooling arrangement, primarily in transporting passengers or goods in international traffic — determined as if, except where paragraph (c) of the definition international traffic in this subsection applies, any port or other place on the Great Lakes or St. Lawrence River is in Canada — including the chartering of the ship, provided that one or more persons related to the operator (if the operator and each such person is a corporation), or persons or partnerships affiliated with the operator (in any other case), has complete possession, control and command of the ship, and any activity incident to or pertaining to the operation of the ship, but does not include

    • (a) the offshore storing or processing of goods,

    • (b) fishing,

    • (c) laying cable,

    • (d) salvaging,

    • (e) towing,

    • (f) tug-boating,

    • (g) offshore oil and gas activities (other than the transportation of oil and gas), including exploration and drilling activities,

    • (h) dredging, or

    • (i) leasing a ship by a lessor to a lessee that has complete possession, control and command of the ship, unless the lessor or a corporation, trust or partnership affiliated with the lessor has an eligible interest (as defined in subsection 250(6.04)) in the lessee; (transport maritime international)

    international traffic

    international traffic means, in respect of a person or partnership carrying on the business of transporting passengers or goods, a voyage made in the course of that business if the principal purpose of the voyage is to transport passengers or goods

    • (a) from Canada to a place outside Canada,

    • (b) from a place outside Canada to Canada, or

    • (c) from a place outside Canada to another place outside Canada; (transport international)

    inter vivos trust

    inter vivos trust has the meaning assigned by subsection 108(1); (fiducie non testamentaire)

    inventory

    inventory means a description of property the cost or value of which is relevant in computing a taxpayer’s income from a business for a taxation year or would have been so relevant if the income from the business had not been computed in accordance with the cash method and includes

    • (a) with respect to a farming business, all of the livestock held in the course of carrying on the business, and

    • (b) an emissions allowance; (inventaire)

    investment corporation

    investment corporation has the meaning assigned by subsection 130(3); (société de placement)

    investment tax credit

    investment tax credit has the meaning assigned by subsection 127(9); (crédit d’impôt à l’investissement)

    joint spousal or common-law partner trust

    joint spousal or common-law partner trust means a trust to which paragraph 104(4)(a) would apply if that paragraph were read without reference to subparagraph 104(4)(a)(iii) and clause 104(4)(a)(iv)(A); (fiducie mixte au profit de l’époux ou du conjoint de fait)

    lawyer

    lawyer has the meaning assigned by subsection 232(1); (avocat)

    legal representative

    legal representative of a taxpayer means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with the property that belongs or belonged to, or that is or was held for the benefit of, the taxpayer or the taxpayer’s estate; (représentant légal)

    lending asset

    lending asset means a bond, debenture, mortgage, hypothecary claim, note, agreement of sale or any other indebtedness or a prescribed share, but does not include a prescribed property; (titre de crédit)

    LIA policy

    LIA policy means a life insurance policy (other than an annuity) where

    • (a) a particular person or partnership becomes obligated after March 20, 2013 to repay an amount to another person or partnership (in this definition referred to as the “lender”) at a time determined by reference to the death of a particular individual whose life is insured under the policy, and

    • (b) the lender is assigned an interest in

      • (i) the policy, and

      • (ii) an annuity contract the terms of which provide that payments are to continue for a period that ends no earlier than the death of the particular individual; (police RAL)

    licensed annuities provider

    licensed annuities provider has the meaning assigned by subsection 147(1); (fournisseur de rentes autorisé)

    life insurance business

    life insurance business includes

    • (a) an annuities business, and

    • (b) the business of issuing contracts all or any part of the issuer’s reserves for which vary in amount depending on the fair market value of a specified group of assets,

    carried on by a life insurance corporation or a life insurer; (entreprise d’assurance-vie)

    life insurance capital dividend

    life insurance capital dividend has the meaning assigned by subsection 83(2.1); (dividende en capital d’assurance-vie)

    life insurance corporation

    life insurance corporation means a corporation that carries on a life insurance business that is not a business described in paragraph (a) or (b) of the definition life insurance business in this subsection, whether or not the corporation also carries on a business described in either of those paragraphs; (compagnie d’assurance-vie)

    life insurance policy

    life insurance policy has the meaning assigned by subsection 138(12); (police d’assurance-vie)

    life insurance policy in Canada

    life insurance policy in Canada has the meaning assigned by subsection 138(12); (police d’assurance-vie au Canada)

    life insurer

    life insurer has the meaning assigned by this subsection to the expression life insurance corporation; (assureur sur la vie)

    limited partnership loss

    limited partnership loss has the meaning assigned by subsection 96(2.1); (perte comme commanditaire)

    limited-recourse amount

    limited-recourse amount means an amount that is a limited-recourse amount under section 143.2; (montant à recours limité)

    listed international agreement

    listed international agreement means

    • (a) the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada, or

    • (b) a comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction; (accord international désigné)

    listed personal property

    listed personal property has the meaning assigned by section 54; (biens meubles déterminés)

    low rate income pool

    low rate income pool has the meaning assigned by subsection 89(1); (compte de revenu à taux réduit)

    majority-interest partner

    majority-interest partner, of a particular partnership at any time, means a person or partnership (in this definition referred to as the “taxpayer”)

    • (a) whose share of the particular partnership’s income from all sources for the last fiscal period of the particular partnership that ended before that time (or, if the particular partnership’s first fiscal period includes that time, for that period) would have exceeded 1/2 of the particular partnership’s income from all sources for that period if the taxpayer had held throughout that period each interest in the partnership that the taxpayer or a person affiliated with the taxpayer held at that time, or

    • (b) whose share, if any, together with the shares of every person with whom the taxpayer is affiliated, of the total amount that would be paid to all members of the particular partnership (otherwise than as a share of any income of the partnership) if it were wound up at that time exceeds 1/2 of that amount; (associé détenant une participation majoritaire)

    mineral

    mineral includes ammonite gemstone, bituminous sands, calcium chloride, coal, kaolin, oil shale and silica, but does not include petroleum, natural gas or a related hydrocarbon not expressly referred to in this definition; (minéral)

    mineral resource

    mineral resource means

    • (a) a base or precious metal deposit,

    • (b) a coal deposit,

    • (c) a bituminous sands deposit or oil shale deposit, or

    • (d) a mineral deposit in respect of which

      • (i) the Minister of Natural Resources has certified that the principal mineral extracted is an industrial mineral contained in a non-bedded deposit,

      • (ii) the principal mineral extracted is ammonite gemstone, calcium chloride, diamond, gypsum, halite, kaolin or sylvite, or

      • (iii) the principal mineral extracted is silica that is extracted from sandstone or quartzite; (matières minéralesressource minérale)

    minerals

    minerals[Repealed, 1994, c. 21, s. 109]

    mining reclamation trust

    mining reclamation trust[Repealed, 1998, c. 19, s. 66]

    Minister

    Minister means the Minister of National Revenue; (ministre)

    money purchase limit

    money purchase limit for a calendar year has the meaning assigned by subsection 147.1(1); (plafond des cotisations déterminées)

    mortgage investment corporation

    mortgage investment corporation has the meaning assigned by subsection 130.1(6); (société de placement hypothécaire)

    motor vehicle

    motor vehicle means an automotive vehicle designed or adapted to be used on highways and streets but does not include

    • (a) a trolley bus, or

    • (b) a vehicle designed or adapted to be operated exclusively on rails; (véhicule à moteur)

    mutual fund corporation

    mutual fund corporation has the meaning assigned by subsection 131(8); (société de placement à capital variable)

    mutual fund trust

    mutual fund trust has the meaning assigned by subsection 132(6); (fiducie de fonds commun de placement)

    net capital loss

    net capital loss has the meaning assigned by subsection 111(8), except as otherwise expressly provided; (perte en capital nette)

    net corporate income tax rate

    net corporate income tax rate in respect of a SIFT trust or SIFT partnership for a taxation year means the amount, expressed as a decimal fraction, by which

    • (a) the percentage rate of tax provided under paragraph 123(1)(a) for the taxation year

    exceeds

    • (b) the total of

      • (i) the percentage that would, if the SIFT trust or SIFT partnership were a corporation, be its general rate reduction percent- age, within the meaning assigned by subsection 123.4(1), for the taxation year, and

      • (ii) the percentage deduction from tax provided under subsection 124(1) for the taxation year; (taux net d’imposition du revenu des sociétés)

    net income stabilization account

    net income stabilization account means an account of a taxpayer

    • (a) under the net income stabilization account program under the Farm Income Protection Act, or

    • (b) that is a prescribed account; (compte de stabilisation du revenu net)

    Newfoundland offshore area

    Newfoundland offshore area has the meaning assigned to the expression offshore area by the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act, chapter 3 of the Statutes of Canada, 1987; (zone extracôtière de Terre-Neuve)

    NISA Fund No. 2

    NISA Fund No. 2 means the portion of a taxpayer’s net income stabilization account

    • (a) that is described in paragraph 8(2)(b) of the Farm Income Protection Act or is a prescribed fund, and

    • (b) that can reasonably be considered to be attributable to a program that allows the funds in the account to accumulate; (second fonds du compte de stabilisation du revenu net)

    non-capital loss

    non-capital loss has the meaning assigned by subsection 111(8); (perte autre qu’une perte en capital)

    non-portfolio property

    non-portfolio property has the same meaning as in subsection 122.1(1); (bien hors portefeuille)

    non-resident

    non-resident means not resident in Canada; (non-résident)

    non-resident-owned investment corporation

    non-resident-owned investment corporation has the meaning assigned by subsection 133(8); (société de placement appartenant à des non-résidents)

    Nova Scotia offshore area

    Nova Scotia offshore area has the meaning assigned to the expression offshore area by the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, chapter 28 of the Statutes of Canada, 1988; (zone extracôtière de la Nouvelle-écosse)

    office

    office means the position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration and includes a judicial office, the office of a minister of the Crown, the office of a member of the Senate or House of Commons of Canada, a member of a legislative assembly or a member of a legislative or executive council and any other office, the incumbent of which is elected by popular vote or is elected or appointed in a representative capacity and also includes the position of a corporation director, and officer means a person holding such an office; (charge)

    oil or gas well

    oil or gas well means any well (other than an exploratory probe or a well drilled from below the surface of the earth) drilled for the purpose of producing petroleum or natural gas or of determining the existence, location, extent or quality of a natural accumulation of petroleum or natural gas, but, for the purpose of applying sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a) in respect of property acquired after March 6, 1996, does not include a well for the extraction of material from a deposit of bituminous sands or oil shales; (puits de pétrole ou de gaz)

    OSFI risk-weighting guidelines

    OSFI risk-weighting guidelines means the guidelines, issued by the Superintendent of Financial Institutions under the authority of section 600 of the Bank Act, requiring an authorized foreign bank to provide to the Superintendent on a periodic basis a return of the bank’s risk-weighted on-balance sheet assets and off-balance sheet exposures, that apply as of August 8, 2000; (lignes directrices du BSIF sur la pondération des risques)

    overseas Canadian Forces school staff

    overseas Canadian Forces school staff means personnel employed outside Canada whose services are acquired by the Minister of National Defence under a prescribed order relating to the provision of educational facilities outside Canada; (personnel scolaire des Forces canadiennes d’outre-mer)

    paid-up capital

    paid-up capital has the meaning assigned by subsection 89(1); (capital versé)

    Part VII refund

    Part VII refund has the meaning assigned by subsection 192(2); (remboursement de la partie VII)

    Part VIII refund

    Part VIII refund has the meaning assigned by subsection 194(2); (remboursement de la partie VIII)

    passenger vehicle

    passenger vehicle means an automobile

    • (a) acquired after June 17, 1987, other than an automobile that is acquired after that date pursuant to an obligation in writing entered into before June 18, 1987 or that is a zero-emission vehicle, or

    • (b) leased under a lease entered into, extended or renewed after June 17, 1987; (voiture de tourisme)

    past service pension adjustment

    past service pension adjustment of a taxpayer for a calendar year in respect of an employer has the meaning assigned by regulation; (facteur d’équivalence pour services passés)

    pension adjustment

    pension adjustment of a taxpayer for a calendar year in respect of an employer has the meaning assigned by regulation; (facteur d’équivalence)

    person

    person, or any word or expression descriptive of a person, includes any corporation, and any entity exempt, because of subsection 149(1), from tax under Part I on all or part of the entity’s taxable income and the heirs, executors, liquidators of a succession, administrators or other legal representatives of such a person, according to the law of that part of Canada to which the context extends; (personne)

    personal or living expenses

    personal or living expenses includes

    • (a) the expenses of properties maintained by any person for the use or benefit of the taxpayer or any person connected with the taxpayer by blood relationship, marriage or common-law partnership or adoption, and not maintained in connection with a business carried on for profit or with a reasonable expectation of profit,

    • (b) the expenses, premiums or other costs of a policy of insurance, annuity contract or other like contract if the proceeds of the policy or contract are payable to or for the benefit of the taxpayer or a person connected with the taxpayer by blood relationship, marriage or common-law partnership or adoption, and

    • (c) expenses of properties maintained by an estate or trust for the benefit of the taxpayer as one of the beneficiaries; (frais personnels ou de subsistance)

    personal services business

    personal services business has the meaning assigned by subsection 125(7); (entreprise de prestation de services personnels)

    personal trust

    personal trust means a trust (other than a trust that is, or was at any time after 1999, a unit trust) that is

    • (a) a graduated rate estate, or

    • (b) a trust in which no beneficial interest was acquired for consideration payable directly or indirectly to

      • (i) the trust, or

      • (ii) any person or partnership that has made a contribution to the trust by way of transfer, assignment or other disposition of property; (fiducie personnelle)

    personal-use property

    personal-use property has the meaning assigned by section 54; (biens à usage personnel)

    pooled pension plan

    pooled pension plan has the same meaning as in subsection 147.5(1); (régime de pension collectif)

    pooled registered pension plan

    pooled registered pension plan or PRPP has the same meaning as in subsection 147.5(1); (régime de pension agréé collectif ou RPAC)

    post-1971 spousal or common-law partner trust

    post-1971 spousal or common-law partner trust means a trust that would be described in paragraph 104(4)(a) if that paragraph were read without reference to subparagraph 104(4)(a)(iv); (fiducie au profit de l’époux ou du conjoint de fait postérieure à 1971)

    preferred share

    preferred share means a share other than a common share; (action privilégiée)

    prescribed

    prescribed means

    • (a) in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister,

    • (a.1) in the case of the manner of making or filing an election, authorized by the Minister, and

    • (b) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation; (prescrit)

    principal amount

    principal amount, in relation to any obligation, means the amount that, under the terms of the obligation or any agreement relating thereto, is the maximum amount or maximum total amount, as the case may be, payable on account of the obligation by the issuer thereof, otherwise than as or on account of interest or as or on account of any premium payable by the issuer conditional on the exercise by the issuer of a right to redeem the obligation before the maturity thereof; (principal)

    private corporation

    private corporation has the meaning assigned by subsection 89(1); (société privée)

    private foundation

    private foundation has the meaning assigned by section 149.1; (fondation privée)

    private health services plan

    private health services plan means

    • (a) a contract of insurance in respect of hospital expenses, medical expenses or any combination of such expenses, or

    • (b) a medical care insurance plan or hospital care insurance plan or any combination of such plans,

    except any such contract or plan established by or pursuant to

    • (c) a law of a province that establishes a health care insurance plan as defined in section 2 of the Canada Health Act, or

    • (d) an Act of Parliament or a regulation made thereunder that authorizes the provision of a medical care insurance plan or hospital care insurance plan for employees of Canada and their dependants and for dependants of members of the Royal Canadian Mounted Police and the regular force where such employees or members were appointed in Canada and are serving outside Canada; (régime privé d’assurance-maladie)

    professional corporation

    professional corporation means a corporation that carries on the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor; (société professionnelle)

    profit sharing plan

    profit sharing plan has the meaning assigned by subsection 147(1); (régime de participation aux bénéfices)

    property

    property means property of any kind whatever whether real or personal, immovable or movable, tangible or intangible, or corporeal or incorporeal and, without restricting the generality of the foregoing, includes

    • (a) a right of any kind whatever, a share or a chose in action,

    • (b) unless a contrary intention is evident, money,

    • (c) a timber resource property,

    • (d) the work in progress of a business that is a profession; and

    • (e) the goodwill of a business, as referred to in subsection 13(34); (biens)

    provincial SIFT tax factor

    provincial SIFT tax factor[Repealed, 2008, c. 28, s. 34]

    provincial SIFT tax rate

    provincial SIFT tax rate of a SIFT trust or a SIFT partnership for a taxation year means the prescribed amount determined in respect of the SIFT trust or SIFT partnership for the taxation year; (taux d’imposition provincial des EIPD)

    public corporation

    public corporation has the meaning assigned by subsection 89(1); (société publique)

    public foundation

    public foundation has the meaning assigned by section 149.1; (fondation publique)

    public market

    public market has the same meaning as in subsection 122.1(1); (marché public)

    qualified Canadian journalism organization

    qualified Canadian journalism organization, at any time, means a corporation, partnership or trust that

    • (a) meets the following conditions:

      • (i) in the case of a corporation,

        • (A) it is incorporated under the laws of Canada or a province,

        • (B) the chairperson or other presiding officer, and at least 3/4 of the directors or other similar officers, are citizens of Canada, and

        • (C) it is resident in Canada,

      • (ii) in the case of a partnership,

        • (A) it is formed under the laws of a province, and

        • (B) individuals who are citizens of Canada or persons, or partnerships, described in any of subparagraphs (i) to (iii) hold interests in the partnership

          • (I) representing in value at least 75% of the total value of the partnership property, and

          • (II) that result in at least 75% of each income or loss of the partnership from any source being included in the determination of their incomes,

      • (iii) in the case of a trust,

        • (A) it is formed under the laws of a province,

        • (B) it is resident in Canada, and

        • (C) if interests as a beneficiary under the trust are held by one or more persons or partnerships, at least 75% of the fair market value of all interests as a beneficiary under the trust are held by

          • (I) individuals who are citizens of Canada, or

          • (II) persons or partnerships described in any of subparagraphs (i) to (iii),

      • (iv) it operates in Canada, including that its content is edited, designed and, except in the case of digital content, published in Canada,

      • (v) it is engaged in the production of original news content, which

        • (A) must be primarily focused on matters of general interest and reports of current events, including coverage of democratic institutions and processes, and

        • (B) must not be primarily focused on a particular topic such as industry-specific news, sports, recreation, arts, lifestyle or entertainment,

      • (vi) it regularly employs two or more journalists who deal at arm’s length with the organization in the production of its content,

      • (vii) it is not significantly engaged in the production of content

        • (A) to promote the interests, or report on the activities, of an organization, an association or its members, or

        • (B) for a government, Crown corporation or government agency, and

        • (C) [Repealed, 2021, c. 23, s. 61]

      • (viii) it is not a Crown corporation, municipal corporation or government agency, and

    • (b) is designated at that time by the Minister and, for this purpose, the Minister shall take into account any recommendations of a body established for the purpose of this definition; (organisation journalistique canadienne qualifiée)

    qualified donee

    qualified donee has the meaning assigned by subsection 149.1(1); (donataire reconnu)

    qualifying environmental trust

    qualifying environmental trust has the meaning assigned by subsection 211.6(1); (fiducie pour l’environnement admissible)

    qualifying share

    qualifying share has the meaning assigned by subsection 192(6); (action admissible)

    qualifying trust annuity

    qualifying trust annuity has the meaning assigned by subsection 60.011(2); (rente admissible de fiducie)

    recognized derivatives exchange

    recognized derivatives exchange means a person or partnership recognized or registered under the securities laws of a province to carry on the business of providing the facilities necessary for the trading of options, swaps, futures contracts or other financial contracts or instruments whose market price, value, delivery obligations, payment obligations or settlement obligations are derived from, referenced to or based on an underlying interest; (bourse reconnue en instruments financiers dérivés)

    recognized stock exchange

    recognized stock exchange means

    • (a) a designated stock exchange, and

    • (b) any other stock exchange, if that other stock exchange is located in Canada or in a country that is a member of the Organisation for Economic Co-operation and Development and that has a tax treaty with Canada; (bourse de valeurs reconnue)

    record

    record includes an account, an agreement, a book, a chart or table, a diagram, a form, an image, an invoice, a letter, a map, a memorandum, a plan, a return, a statement, a telegram, a voucher, and any other thing containing information, whether in writing or in any other form; (registre)

    refundable Part VII tax on hand

    refundable Part VII tax on hand has the meaning assigned by subsection 192(3); (impôt de la partie VII en main remboursable)

    refundable Part VIII tax on hand

    refundable Part VIII tax on hand has the meaning assigned by subsection 194(3); (impôt de la partie VIII en main remboursable)

    registered Canadian amateur athletic association

    registered Canadian amateur athletic association means a Canadian amateur athletic association within the meaning assigned by subsection 149.1(1) that has applied to the Minister in prescribed form for registration, that has been registered and whose registration has not been revoked; (association canadienne enregistrée de sport amateur)

    registered charity

    registered charity at any time means

    • (a) a charitable organization, private foundation or public foundation, within the meanings assigned by subsection 149.1(1), that is resident in Canada and was either created or established in Canada, or

    • (b) a branch, section, parish, congregation or other division of an organization or foundation described in paragraph (a), that is resident in Canada and was either created or established in Canada and that receives donations on its own behalf,

    that has applied to the Minister in prescribed form for registration and that is at that time registered as a charitable organization, private foundation or public foundation; (organisme de bienfaisance enregistré)

    registered disability savings plan

    registered disability savings plan or RDSP has the same meaning as in subsection 146.4(1); (régime enregistré d’épargne-invalidité ou REEI)

    registered education savings plan

    registered education savings plan or RESP has the same meaning as in subsection 146.1(1); (régime enregistré d’épargne-études ou REEE)

    registered investment

    registered investment has the meaning assigned by subsection 204.4(1); (placement enregistré)

    registered journalism organization

    registered journalism organization means a qualifying journalism organization (as defined in subsection 149.1(1)) that has applied to the Minister in prescribed form for registration, that has been registered and whose registration has not been revoked; (organisation journalistique enregistrée)

    registered labour-sponsored venture capital corporation

    registered labour-sponsored venture capital corporation means a corporation that was registered under subsection 204.81(1), the registration of which has not been revoked; (société agréée à capital de risque de travailleurs)

    registered national arts service organization

    registered national arts service organization, at any time, means a national arts service organization that has been registered by the Minister under subsection 149.1(6.4), which registration has not been revoked; (organisme enregistré de services nationaux dans le domaine des arts)

    registered pension plan

    registered pension plan means a pension plan (other than a pooled pension plan) that has been registered by the Minister for the purposes of this Act and whose registration has not been revoked; (régime de pension agréé)

    registered retirement income fund

    registered retirement income fund or RRIF have the same meaning as registered retirement income fund in subsection 146.3(1); (fonds enregistré de revenu de retraite ou FERR)

    registered retirement savings plan

    registered retirement savings plan or RRSP have the same meaning as registered retirement savings plan in subsection 146(1); (régime enregistré d’épargne-retraite ou REER)

    registered securities dealer

    registered securities dealer means a person registered or licensed under the laws of a province to trade in securities, in the capacity of an agent or principal, without any restriction as to the types or kinds of securities in which that person may trade; (courtier en valeurs mobilières inscrit)

    registered supplementary unemployment benefit plan

    registered supplementary unemployment benefit plan has the meaning assigned by subsection 145(1); (régime enregistré de prestations supplémentaires de chômage)

    regulation

    regulation means a regulation made by the Governor in Council under this Act; (réglementaire)

    relevant factor

    relevant factor means

    • (a) for taxation years that end before 2010, 3, and

    • (b) for taxation years that end after 2009, the amount determined by the formula

      1/(A – B)

      where

      A
      is the percentage set out in paragraph 123(1)(a), and
      B
      is the percentage that is the corporation’s general rate reduction percentage (as defined by section 123.4) for the taxation year; (facteur de référence)
    restricted farm loss

    restricted farm loss has the meaning assigned by subsection 31(1.1); (perte agricole restreinte)

    restricted financial institution

    restricted financial institution means

    • (a) a bank,

    • (b) a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,

    • (c) a credit union,

    • (d) an insurance corporation,

    • (e) a corporation whose principal business is the lending of money to persons with whom the corporation is dealing at arm’s length or the purchasing of debt obligations issued by such persons or a combination thereof,

    • (e.1) a corporation described in paragraph (g) of the definition financial institution in subsection 181(1), or

    • (f) a corporation that is controlled by one or more corporations described in any of paragraphs (a) to (e.1); (institution financière véritable)

    retirement compensation arrangement

    retirement compensation arrangement means a plan or arrangement under which contributions (other than payments made to acquire an interest in a life insurance policy) are made by an employer or former employer of a taxpayer, or by a person with whom the employer or former employer does not deal at arm’s length, to another person or partnership (in this definition and in Part XI.3 referred to as the “custodian”) in connection with benefits that are to be or may be received or enjoyed by any person on, after or in contemplation of any substantial change in the services rendered by the taxpayer, the retirement of the taxpayer or the loss of an office or employment of the taxpayer, but does not include

    • (a) a registered pension plan,

    • (a.1) a pooled registered pension plan,

    • (b) a disability or income maintenance insurance plan under a policy with an insurance corporation,

    • (c) a deferred profit sharing plan,

    • (d) an employees profit sharing plan,

    • (e) a registered retirement savings plan,

    • (f) an employee trust,

    • (f.1) an employee life and health trust,

    • (g) a group sickness or accident insurance plan,

    • (h) a supplementary unemployment benefit plan,

    • (i) a vacation pay trust described in paragraph 149(1)(y),

    • (j) a plan or arrangement established for the purpose of deferring the salary or wages of a professional athlete for his services as such with a team that participates in a league having regularly scheduled games (in this definition referred to as an “athlete’s plan”), where

      • (i) the plan or arrangement would, but for paragraph (j) of the definition salary deferral arrangement in this subsection, be a salary deferral arrangement, and

      • (ii) in the case of a Canadian team, the custodian of the plan or arrangement carries on business through a fixed place of business in Canada and is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,

    • (k) a salary deferral arrangement, whether or not deferred amounts thereunder are required to be included as benefits under paragraph 6(1)(a) in computing a taxpayer’s income,

    • (l) a plan or arrangement (other than an athlete’s plan) that is maintained primarily for the benefit of non-residents in respect of services rendered outside Canada,

    • (m) an insurance policy, or

    • (n) a prescribed plan or arrangement,

    and, for the purposes of this definition, where a particular person holds property in trust under an arrangement that, if the property were held by another person, would be a retirement compensation arrangement, the arrangement shall be deemed to be a retirement compensation arrangement of which the particular person is the custodian; (convention de retraite)

    retirement income fund

    retirement income fund has the meaning assigned by subsection 146.3(1); (fonds de revenu de retraite)

    retirement savings plan

    retirement savings plan has the meaning assigned by subsection 146(1); (régime d’épargne-retraite)

    retiring allowance

    retiring allowance means an amount (other than a superannuation or pension benefit, an amount received as a consequence of the death of an employee or a benefit described in subparagraph 6(1)(a)(iv)) received

    • (a) on or after retirement of a taxpayer from an office or employment in recognition of the taxpayer’s long service, or

    • (b) in respect of a loss of an office or employment of a taxpayer, whether or not received as, on account or in lieu of payment of, damages or pursuant to an order or judgment of a competent tribunal,

    by the taxpayer or, after the taxpayer’s death, by a dependant or a relation of the taxpayer or by the legal representative of the taxpayer; (allocation de retraite)

    RRSP deduction limit

    RRSP deduction limit has the meaning assigned by subsection 146(1); (maximum déductible au titre des REER)

    RRSP dollar limit

    RRSP dollar limit has the meaning assigned by subsection 146(1); (plafond REER)

    salary deferral arrangement

    salary deferral arrangement, in respect of a taxpayer, means a plan or arrangement, whether funded or not, under which any person has a right in a taxation year to receive an amount after the year where it is reasonable to consider that one of the main purposes for the creation or existence of the right is to postpone tax payable under this Act by the taxpayer in respect of an amount that is, or is on account or in lieu of, salary or wages of the taxpayer for services rendered by the taxpayer in the year or a preceding taxation year (including such a right that is subject to one or more conditions unless there is a substantial risk that any one of those conditions will not be satisfied), but does not include

    • (a) a registered pension plan,

    • (a.1) a pooled registered pension plan,

    • (b) a disability or income maintenance insurance plan under a policy with an insurance corporation,

    • (c) a deferred profit sharing plan,

    • (d) an employees profit sharing plan,

    • (e) an employee trust,

    • (e.1) an employee life and health trust,

    • (f) a group sickness or accident insurance plan,

    • (g) a supplementary unemployment benefit plan,

    • (h) a vacation pay trust described in paragraph 149(1)(y),

    • (i) a plan or arrangement the sole purpose of which is to provide education or training for employees of an employer to improve their work or work-related skills and abilities,

    • (j) a plan or arrangement established for the purpose of deferring the salary or wages of a professional athlete for the services of the athlete as such with a team that participates in a league having regularly scheduled games,

    • (k) a plan or arrangement under which a taxpayer has a right to receive a bonus or similar payment in respect of services rendered by the taxpayer in a taxation year to be paid within 3 years following the end of the year, or

    • (l) a prescribed plan or arrangement; (entente d’échelonnement du traitement)

    salary or wages

    salary or wages, except in sections 5 and 63 and the definition death benefit in this subsection, means the income of a taxpayer from an office or employment as computed under Subdivision A of Division B of Part I and includes all fees received for services not rendered in the course of the taxpayer’s business but does not include superannuation or pension benefits or retiring allowances; (traitement ou salaire)

    scientific research and experimental development

    scientific research and experimental development means systematic investigation or search that is carried out in a field of science or technology by means of experiment or analysis and that is

    • (a) basic research, namely, work undertaken for the advancement of scientific knowledge without a specific practical application in view,

    • (b) applied research, namely, work undertaken for the advancement of scientific knowledge with a specific practical application in view, or

    • (c) experimental development, namely, work undertaken for the purpose of achieving technological advancement for the purpose of creating new, or improving existing, materials, devices, products or processes, including incremental improvements thereto,

    and, in applying this definition in respect of a taxpayer, includes

    • (d) work undertaken by or on behalf of the taxpayer with respect to engineering, design, operations research, mathematical analysis, computer programming, data collection, testing or psychological research, where the work is commensurate with the needs, and directly in support, of work described in paragraph (a), (b), or (c) that is undertaken in Canada by or on behalf of the taxpayer,

    but does not include work with respect to

    • (e) market research or sales promotion,

    • (f) quality control or routine testing of materials, devices, products or processes,

    • (g) research in the social sciences or the humanities,

    • (h) prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas,

    • (i) the commercial production of a new or improved material, device or product or the commercial use of a new or improved process,

    • (j) style changes, or

    • (k) routine data collection; (activités de recherche scientifique et de développement expérimental)

    scientific research and experimental development financing contract

    scientific research and experimental development financing contract has the meaning assigned by subsection 194(6); (contrat de financement pour des activités de recherche scientifique et de développement expérimental)

    scientific research and experimental development tax credit

    scientific research and experimental development tax credit of a taxpayer for a taxation year has the meaning assigned by subsection 127.3(2); (crédit d’impôt pour des activités de recherche scientifique et de développement expérimental)

    securities lending arrangement

    securities lending arrangement has the meaning assigned by subsection 260(1); (mécanisme de prêt de valeurs mobilières)

    self-contained domestic establishment

    self-contained domestic establishment means a dwelling-house, apartment or other similar place of residence in which place a person as a general rule sleeps and eats; (établissement domestique autonome)

    separation agreement

    separation agreement includes an agreement by which a person agrees to make payments on a periodic basis for the maintenance of a former spouse or common-law partner, children of the marriage or common-law partnership or both the former spouse or common-law partner and children of the marriage or common-law partnership, after the marriage or common-law partnership has been dissolved, whether the agreement was made before or after the marriage or common-law partnership was dissolved; (accord de séparation)

    share

    share, except as the context otherwise requires, means a share or a fraction of a share of the capital stock of a corporation and, for greater certainty, a share of the capital stock of a corporation includes a share of the capital of a cooperative corporation (within the meaning assigned by subsection 136(2)), a share of the capital of an agricultural cooperative corporation (within the meaning assigned by subsection 135.1(1)) and a share of the capital of a credit union; (action)

    shareholder

    shareholder includes a member or other person entitled to receive payment of a dividend; (actionnaire)

    share-purchase tax credit

    share-purchase tax credit of a taxpayer for a taxation year has the meaning assigned by subsection 127.2(6); (crédit d’impôt à l’achat d’actions)

    short-term preferred share

    short-term preferred share of a corporation at any particular time means a share, other than a grandfathered share, of the capital stock of the corporation issued after December 15, 1987 that at that particular time

    • (a) is a share where, under the terms and conditions of the share, any agreement relating to the share or any modification of those terms and conditions or that agreement, the corporation or a specified person in relation to the corporation is or may, at any time within 5 years after the date of its issue, 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 only in the event of the death of the shareholder or by reason only of a right to convert or exchange the share) or to reduce the paid-up capital of the share, and for the purposes of this paragraph

      • (i) 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

        • (A) in the case of a share (other than a share that would, but for that part of the agreement, be a taxable preferred 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

        • (B) 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, and

      • (ii) shareholder includes a shareholder of a shareholder, or

    • (b) is a share that is convertible or exchangeable at any time within 5 years after the date of its issue, unless

      • (i) it is convertible into or exchangeable for

        • (A) another share of the corporation or a corporation related to the corporation that, if issued, would not be a short-term preferred share,

        • (B) a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the corporation or a corporation related to the corporation that, if issued, would not be a short-term preferred share, or

        • (C) both a share described in clause (A) and a right or warrant described in clause (B), and

      • (ii) all the consideration receivable for the share on the conversion or exchange is the share described in clause (A) or the right or warrant described in clause (B) or both, as the case may be, and for the purposes of this subparagraph, 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 clauses (A) to (C)) 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 Part IV.1 or VI.1,

    and, for the purposes of this definition,

    • (c) where at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 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 paragraphs (a), (b), (f) and (h) 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 be deemed after that particular time to have been issued at that particular time,

    • (d) where at any particular time after December 15, 1987 a particular share of the capital stock of a corporation has been issued or its terms or conditions have been modified or an agreement in respect of the share is modified or entered into, and it may reasonably be considered, having regard to all the circumstances, including the rate of interest on any debt obligation or the dividend provided on any short-term preferred share, that

      • (i) but for the existence at any time of such a debt obligation or such a short-term preferred share, the particular share would not have been issued or its terms or conditions modified or the agreement in respect of the share would not have been modified or entered into, and

      • (ii) one of the main purposes for the issue of the particular share or the modification of its terms or conditions or the modification or entering into the agreement in respect of the share was to avoid or limit the tax payable under subsection 191.1(1),

    the particular share shall be deemed after that particular time to have been issued at that particular time and to be a short-term preferred share of the corporation,

    • (e) where at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 1987, the terms or conditions of a share of the capital stock of a corporation are modified or established or any agreement in respect of the share has been changed or entered into, and as a consequence thereof the corporation or a specified person in relation to the corporation may reasonably be expected to redeem, acquire or cancel (otherwise than by reason of the death of the shareholder or by reason only of a right to convert or exchange the share that would not cause the share to be a short-term preferred share by reason of paragraph (b)), in whole or in part, the share, or to reduce its paid-up capital, within 5 years after the particular time, the share shall be deemed to have been issued at that particular time and to be a short-term preferred share of the corporation after the particular time until the time that that reasonable expectation ceases to exist and, for the purposes of this paragraph,

      • (i) 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

        • (A) in the case of a share (other than a share that would, but for that part of the agreement, be a taxable preferred 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

        • (B) 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, and

      • (ii) shareholder includes a shareholder of a shareholder,

    • (f) if a share of the capital stock of a corporation was issued after December 15, 1987 and at the time the share was issued the existence of the corporation was, or there was an arrangement under which it could be, limited to a period that was within five years from the date of its issue, the share is deemed to be a short-term preferred share of the corporation unless

      • (i) the share is a grandfathered share and the arrangement is a written arrangement entered into before December 16, 1987, or

      • (ii) the share is issued to an individual after April 14, 2005 under an agreement referred to in subsection 7(1), if when the individual last acquired a right under the agreement to acquire a share of the capital stock of the corporation, the existence of the corporation was not, and no arrangement was in effect under which it could be, limited to a period that was within five years from the date of that last acquisition,

    • (g) where a share of the capital stock of a corporation is acquired at any time after December 15, 1987 by the corporation or a specified person in relation to the corporation and the share is at any particular time after that time acquired by a person with whom the corporation or a specified person in relation to the corporation was dealing at arm’s length if this Act were read without reference to paragraph 251(5)(b), from the corporation or a specified person in relation to the corporation, the share shall be deemed after that particular time to have been issued at that particular time,

    • (h) where at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 1987, as a result of the terms or conditions of a share of the capital stock of a corporation or any agreement entered into by the corporation or a specified person in relation to the corporation, any person (other than the corporation or an individual other than a trust) was obligated, either absolutely or contingently and either immediately or in the future, to effect any undertaking within 5 years after the day on which the share was issued (in this paragraph referred to as a “guarantee agreement”) including any guarantee, covenant or agreement to purchase or repurchase the share, and including the lending of funds or the placing of amounts on deposit with, or on behalf of the shareholder or a specified person in relation to the shareholder given

      • (i) to ensure that any loss that the shareholder or a specified person in relation to the shareholder may sustain, by reason of the ownership, holding or disposition of the share or any other property is limited in any respect, and

      • (ii) as part of a transaction or event or series of transactions or events that included the issuance of the share,

      the share shall be deemed after that particular time to have been issued at the particular time and to be at and immediately after the particular time a short-term preferred share, and for the purposes of this paragraph, where a guarantee agreement in respect of a share is given at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 1987, the share shall be deemed to have been issued at the particular time and the guarantee agreement shall be deemed to have been given as part of a series of transactions that included the issuance of the share,

    • (i) a share that is, at the time a dividend is paid thereon, a share described in paragraph (e) of the definition term preferred share in this subsection during the applicable time period referred to in that paragraph or a prescribed share shall, notwithstanding any other provision of this definition, be deemed not to be a short-term preferred share at that time, and

    • (j) specified person has the meaning assigned by paragraph (h) of the definition taxable preferred share in this subsection; (action privilégiée à court terme)

    SIFT partnership

    SIFT partnership has the meaning assigned by section 197; (société de personnes intermédiaire de placement déterminée)

    SIFT partnership balance-due day

    SIFT partnership balance-due day, in respect of a taxation year of a SIFT partnership, means the day on or before which the partnership is required to file a return for the taxation year under section 229 of the Income Tax Regulations; (date d’échéance du solde)

    SIFT trust

    SIFT trust has the meaning assigned by section 122.1; (fiducie intermédiaire de placement déterminée)

    SIFT trust wind-up event

    SIFT trust wind-up event means a distribution by a particular trust resident in Canada of property to a taxpayer in respect of which the following conditions are met:

    • (a) the distribution occurs before 2013,

    • (b) there is a resulting disposition of all of the taxpayer’s interest as a beneficiary under the particular trust,

    • (c) the particular trust is

      • (i) a SIFT wind-up entity,

      • (ii) a trust whose only beneficiary throughout the period (referred to in this definition as the “qualifying period”) that begins on July 14, 2008 and that ends at the time of the distribution is another trust that throughout the qualifying period

        • (A) is resident in Canada, and

        • (B) is a SIFT wind-up entity or a trust described by this subparagraph, or

      • (iii) a trust whose only beneficiary at the time of distribution is another trust that throughout the qualifying period

        • (A) is resident in Canada,

        • (B) is a SIFT wind-up entity or a trust described by subparagraph (ii), and

        • (C) is a majority interest beneficiary (within the meaning that would be assigned by section 251.1 if the references in the definition majority interest beneficiary in subsection 251.1(3) to “50%” were read as references to “25%”) of the particular trust,

    • (d) the particular trust ceases to exist immediately after the distribution or immediately after the last of a series of SIFT trust wind-up events (determined without reference to this paragraph) of the particular trust that includes the distribution, and

    • (e) the property was not acquired by the particular trust as a result of a transfer or an exchange

      • (i) that is

        • (A) a qualifying exchange as defined in subsection 132.2(1) or a qualifying disposition as defined in subsection 107.4(1),

        • (B) made after February 2, 2009, and

        • (C) from any person other than a SIFT wind-up entity, or

      • (ii) to which any of sections 51, 85, 85.1, 86, 87, 88, 107.4 or 132.2 applies, of another property acquired as a result of a transfer or an exchange described by subparagraph (i) or this subparagraph; (fait lié à la conversion d’une EIPD-fiducie)

    SIFT wind-up corporation

    SIFT wind-up corporation, in respect of a SIFT wind-up entity, means at any particular time a corporation

    • (a) that, at any time that is after July 13, 2008 and before the earlier of the particular time and January 1, 2013, owns all of the equity in the SIFT wind-up entity, or

    • (b) shares of the capital stock of which are at or before the particular time distributed on a SIFT trust wind-up event of the SIFT wind-up entity; (société de conversion d’EIPD)

    SIFT wind-up entity

    SIFT wind-up entity means a trust or partnership that at any time in the period that began on October 31, 2006 and that ends on July 14, 2008 is

    • (a) a SIFT trust (determined without reference to subsection 122.1(2)),

    • (b) a SIFT partnership (determined without reference to subsection 197(8)), or

    • (c) a real estate investment trust (as defined in subsection 122.1(1)); (EIPD convertible)

    SIFT wind-up entity equity

    SIFT wind-up entity equity, or equity in a SIFT wind-up entity, means

    • (a) if the SIFT wind-up entity is a trust, a capital interest (determined without reference to subsection (25)) in the trust, and

    • (b) if the SIFT wind-up entity is a partnership, an interest as a member of the partnership where, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited,

    except that if all of the interests described in paragraph (a) or (b), as the case may be, in the SIFT wind-up entity are described by reference to units, it means the part of the interest represented by such a unit; (intérêt dans une EIPD convertible)

    small business bond

    small business bond has the meaning assigned by section 15.2; (obligation pour la petite entreprise)

    small business corporation

    small business corporation, at any particular time, means, subject to subsection 110.6(15), a particular corporation that is a Canadian-controlled private corporation all or substantially all of the fair market value of the assets of which at that time is attributable to assets that are

    • (a) used principally in an active business carried on primarily in Canada by the particular corporation or by a corporation related to it,

    • (b) shares of the capital stock or indebtedness of one or more small business corporations that are at that time connected with the particular corporation (within the meaning of subsection 186(4) on the assumption that the small business corporation is at that time a payer corporation within the meaning of that subsection), or

    • (c) assets described in paragraphs (a) and (b),

    including, for the purpose of paragraph 39(1)(c), a corporation that was at any time in the 12 months preceding that time a small business corporation, and, for the purpose of this definition, the fair market value of a net income stabilization account shall be deemed to be nil; (société exploitant une petite entreprise)

    small business development bond

    small business development bond has the meaning assigned by section 15.1; (obligation pour le développement de la petite entreprise)

    specified employee

    specified employee of a person means an employee of the person who is a specified shareholder of the person or who does not deal at arm’s length with the person; (employé déterminé)

    specified financial institution

    specified financial institution, at any time, means

    • (a) a bank,

    • (b) a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,

    • (c) a credit union,

    • (d) an insurance corporation,

    • (e) a corporation whose principal business is the lending of money to persons with whom the corporation is dealing at arm’s length or the purchasing of debt obligations issued by such persons or a combination thereof,

    • (e.1) a corporation described in paragraph (g) of the definition financial institution in subsection 181(1),

    • (f) a corporation that is controlled by one or more corporations described in any of paragraphs (a) to (e.1) and, for the purpose of this paragraph, one corporation is controlled by another corporation if more than 50% of its issued share capital (having full voting rights under all circumstances) belongs to the other corporation, to persons with whom the other corporation does not deal at arm’s length, or to the other corporation and persons with whom the other corporation does not deal at arm’s length, or

    • (g) a corporation that is related to a particular corporation described in any of paragraphs (a) to (f), other than a particular corporation described in paragraph (e) or (e.1) the principal business of which is the factoring of trade accounts receivable that

      • (i) the particular corporation acquired from a related person,

      • (ii) arose in the course of an active business carried on by a person (in this paragraph referred to as the “business entity”) related at that time to the particular corporation, and

      • (iii) at no particular time before that time were held by a person other than a person who was related to the business entity; (institution financière déterminée)

    specified future tax consequence

    specified future tax consequence for a taxation year means

    • (a) the consequence of the deduction or exclusion of an amount referred to in paragraph 161(7)(a),

    • (b) the consequence of a reduction under subsection 66(12.73) of a particular amount purported to be renounced by a corporation after the beginning of the year to a person or partnership under subsection 66(12.6) or 66(12.601) because of the application of subsection 66(12.66), determined as if the purported renunciation would, but for subsection 66(12.73), have been effective only where

      • (i) the purported renunciation occurred in January, February or March of a calendar year,

      • (ii) the effective date of the purported renunciation was the last day of the preceding calendar year,

      • (iii) the corporation agreed in that preceding calendar year to issue a flow-though share to the person or partnership,

      • (iv) the particular amount does not exceed the amount, if any, by which the consideration for which the share is to be issued exceeds the total of all other amounts purported by the corporation to have been renounced under subsection 66(12.6) or 66(12.601) in respect of that consideration,

      • (v) paragraphs 66(12.66)(c) and 66(12.66)(d) are satisfied with respect to the purported renunciation, and

      • (vi) the form prescribed for the purpose of subsection 66(12.7) in respect of the purported renunciation is filed with the Minister before May of the calendar year, and

    • (c) the consequence of an adjustment or a reduction described in subsection 161(6.1); (conséquence fiscale future déterminée)

    specified individual

    specified individual has the meaning assigned by subsection 120.4(1); (particulier déterminé)

    specified investment business

    specified investment business has the meaning assigned by subsection 125(7); (entreprise de placement déterminée)

    specified member

    specified member of a partnership in a fiscal period or taxation year of the partnership, as the case may be, means

    • (a) any member of the partnership who is a limited partner (within the meaning assigned by subsection 96(2.4)) of the partnership at any time in the period or year, and

    • (b) any member of the partnership, other than a member who is

      • (i) actively engaged in those activities of the partnership business that are other than the financing of the partnership business, or

      • (ii) carrying on a similar business as that carried on by the partnership in its taxation year, otherwise than as a member of a partnership,

    on a regular, continuous and substantial basis throughout that part of the period or year during which the business of the partnership is ordinarily carried on and during which the member is a member of the partnership; (associé déterminé)

    specified mutual fund trust

    specified mutual fund trust, at any time, means a mutual fund trust other than a mutual fund trust for which it can reasonably be considered, having regard to all the circumstances, including the terms and conditions of the units of the trust, that the total of all amounts each of which is the fair market value, at that time, of a unit issued by the trust and held by a person exempt from tax under section 149 is all or substantially all of the total of all amounts each of which is the fair market value, at that time, of a unit issued by the trust; (fiducie de fonds commun de placement déterminée)

    specified pension plan

    specified pension plan means a prescribed arrangement; (régime de pension déterminé)

    specified proportion

    specified proportion, of a member of a partnership for a fiscal period of the partnership, means the proportion that the member’s share of the total income or loss of the partnership for the partnership’s fiscal period is of the partnership’s total income or loss for that period and, for the purpose of this definition, where that income or loss for a period is nil, that proportion shall be computed as if the partnership had income for that period in the amount of $1,000,000; (proportion déterminée)

    specified securities lending arrangement

    specified securities lending arrangement has the same meaning as in subsection 260(1); (mécanisme de prêt de valeurs mobilières déterminé)

    specified shareholder

    specified shareholder of a corporation in a taxation year means a taxpayer who owns, directly or indirectly, at any time in the year, not less than 10% of the issued shares of any class of the capital stock of the corporation or of any other corporation that is related to the corporation and, for the purposes of this definition,

    • (a) a taxpayer shall be deemed to own each share of the capital stock of a corporation owned at that time by a person with whom the taxpayer does not deal at arm’s length,

    • (b) each beneficiary of a trust shall be deemed to own that proportion of all such shares owned by the trust at that time that the fair market value at that time of the beneficial interest of the beneficiary in the trust is of the fair market value at that time of all beneficial interests in the trust,

    • (c) each member of a partnership shall be deemed to own that proportion of all the shares of any class of the capital stock of a corporation that are property of the partnership at that time that the fair market value at that time of the member’s interest in the partnership is of the fair market value at that time of the interests of all members in the partnership,

    • (d) an individual who performs services on behalf of a corporation that would be carrying on a personal services business if the individual or any person related to the individual were at that time a specified shareholder of the corporation shall be deemed to be a specified shareholder of the corporation at that time if the individual, or any person or partnership with whom the individual does not deal at arm’s length, is, or by virtue of any arrangement may become, entitled, directly or indirectly, to not less than 10% of the assets or the shares of any class of the capital stock of the corporation or any corporation related thereto, and

    • (e) notwithstanding paragraph (b), where a beneficiary’s share of the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, any discretionary power, the beneficiary shall be deemed to own each share of the capital stock of a corporation owned at that time by the trust; (actionnaire déterminé)

    specified synthetic equity arrangement

    specified synthetic equity arrangement, in respect of a DRA share of a person or partnership, means one or more agreements or other arrangements that

    • (a) have the effect of providing to a person or partnership all or any portion of the risk of loss or opportunity for gain or profit in respect of the DRA share and, for greater certainty, opportunity for gain or profit includes rights to, benefits from and distributions on a share, and

    • (b) can reasonably be considered to have been entered into in connection with a synthetic equity arrangement, in respect of the DRA share, or in connection with another specified synthetic equity arrangement, in respect of the DRA share; (arrangement de capitaux propres synthétiques déterminé)

    specified unitholder

    specified unitholder, of a partnership or trust (referred to in this definition as the “entity”), the interests in which are described by reference to units, means a taxpayer who would be a specified shareholder of the entity if the entity were a corporation and each unit of the entity were a share of a class of the corporation having the same attributes as the unit; (détenteur d’unité déterminé)

    split income

    split income has the meaning assigned by subsection 120.4(1); (revenu fractionné)

    stock dividend

    stock dividend includes any dividend (determined without reference to the definition dividend in this subsection) paid by a corporation to the extent that it is paid by the issuance of shares of any class of the capital stock of the corporation; (dividende en actions)

    subsidiary controlled corporation

    subsidiary controlled corporation means a corporation more than 50% of the issued share capital of which (having full voting rights under all circumstances) belongs to the corporation to which it is subsidiary; (filiale contrôlée)

    subsidiary wholly-owned corporation

    subsidiary wholly-owned corporation means a corporation all the issued share capital of which (except directors’ qualifying shares) belongs to the corporation to which it is subsidiary; (filiale à cent pour cent)

    superannuation or pension benefit

    superannuation or pension benefit includes any amount received out of or under a superannuation or pension fund or plan (including, except for the purposes of subparagraph 56(1)(a)(i), a pooled registered pension plan) and, without restricting the generality of the foregoing, includes any payment made to a beneficiary under the fund or plan or to an employer or former employer of the beneficiary under the fund or plan

    • (a) in accordance with the terms of the fund or plan,

    • (b) resulting from an amendment to or modification of the fund or plan, or

    • (c) resulting from the termination of the fund or plan; (prestation de retraite ou de pension)

    supplementary unemployment benefit plan

    supplementary unemployment benefit plan has the meaning assigned by subsection 145(1); (régime de prestations supplémentaires de chômage)

    synthetic disposition arrangement

    synthetic disposition arrangement, in respect of a property owned by a taxpayer, means one or more agreements or other arrangements that

    • (a) are entered into by the taxpayer or by a person or partnership that does not deal at arm’s length with the taxpayer,

    • (b) have the effect, or would have the effect if entered into by the taxpayer instead of the person or partnership, of eliminating all or substantially all the taxpayer’s risk of loss and opportunity for gain or profit in respect of the property for a definite or indefinite period of time, and

    • (c) can, in respect of any agreement or arrangement entered into by a person or partnership that does not deal at arm’s length with the taxpayer, reasonably be considered to have been entered into, in whole or in part, with the purpose of obtaining the effect described in paragraph (b); (arrangement de disposition factice)

    synthetic disposition period

    synthetic disposition period, of a synthetic disposition arrangement, means the definite or indefinite period of time during which the synthetic disposition arrangement has, or would have, the effect described in paragraph (b) of the definition synthetic disposition arrangement in this subsection; (période de disposition factice)

    synthetic equity arrangement

    synthetic equity arrangement in respect of a DRA share of a person or partnership (referred to in this definition as the particular person),

    • (a) means one or more agreements or other arrangements that

      • (i) are entered into by the particular person, by a person or partnership that does not deal at arm’s length with, or is affiliated with, the particular person (referred to in this definition as a connected person) or, for greater certainty, by any combination of the particular person and connected persons, with one or more persons or partnerships (referred to in this definition as a counterparty and in subsection 112(2.32) as a counterparty or an affiliated counterparty as appropriate),

      • (ii) have the effect, or would have the effect, if each agreement entered into by a connected person were entered into by the particular person, of providing all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share to a counterparty or a group of counterparties each member of which is affiliated with every other member and, for greater certainty, opportunity for gain or profit includes rights to, benefits from and distributions on a share, and

      • (iii) if entered into by a connected person, can reasonably be considered to have been entered into with the knowledge, or where there ought to have been the knowledge, that the effect described in subparagraph (ii) would result, and

    • (b) does not include

      • (i) an agreement that is traded on a recognized derivatives exchange unless it can reasonably be considered that, at the time the agreement is entered into,

        • (A) the particular person or the connected person, as the case may be, knows or ought to know that the agreement is part of a series of transactions that has the effect of providing all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share to a tax-indifferent investor, or a group of tax-indifferent investors each member of which is affiliated with every other member, or

        • (B) one of the main reasons for entering into the agreement is to obtain the benefit of a deduction in respect of a payment, or a reduction of an amount that would otherwise have been included in income, under the agreement, that corresponds to an expected or actual dividend in respect of a DRA share,

      • (ii) one or more agreements or other arrangements that, but for this subparagraph, would be a synthetic equity arrangement, in respect of a share owned by the particular person (in this subparagraph referred to as the synthetic short position), if

        • (A) the particular person has entered into one or more other agreements or other arrangements (other than, for greater certainty, an agreement under which the share is acquired or an agreement or arrangement under which the particular person receives a deemed dividend and is provided with all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share) that have the effect of providing all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share to the particular person (in this subparagraph referred to as the synthetic long position),

        • (B) the synthetic short position has the effect of offsetting all amounts included or deducted in computing the income of the particular person with respect to the synthetic long position, and

        • (C) the synthetic short position was entered into for the purpose of obtaining the effect referred to in clause (B), and

      • (iii) an agreement to purchase the shares of a corporation, or a purchase agreement that is part of a series of agreements to purchase the shares of a corporation, under which a counterparty or a group of counterparties each member of which is affiliated with every other member acquires control of the corporation that has issued the shares being purchased, unless the main reason for establishing, incorporating or operating the corporation is to have this subparagraph apply; (arrangement de capitaux propres synthétiques)

    synthetic equity arrangement chain

    synthetic equity arrangement chain, in respect of a share owned by a person or partnership, means a synthetic equity arrangement — or a synthetic equity arrangement in combination with one or more specified synthetic equity arrangements — where

    • (a) no party to the synthetic equity arrangement or a specified synthetic equity arrangement, if any, is a tax-indifferent investor, and

    • (b) each other party to these agreements or arrangements is affiliated with the person or partnership; (chaîne d’arrangements de capitaux propres synthétiques)

    tar sands

    tar sands means bituminous sands or oil shales extracted, otherwise than by a well, from a mineral resource, but, for the purpose of applying sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a) in respect of property acquired after March 6, 1996, includes material extracted by a well from a deposit of bituminous sands or oil shales; (sables asphaltiques)

    taxable Canadian corporation

    taxable Canadian corporation has the meaning assigned by subsection 89(1); (société canadienne imposable)

    taxable Canadian property

    taxable Canadian property of a taxpayer at any time in a taxation year means a property of the taxpayer that is

    • (a) real or immovable property situated in Canada,

    • (b) property used or held by the taxpayer in, property included in Class 14.1 of Schedule II to the Income Tax Regulations in respect of, or property described in an inventory of, a business carried on in Canada, other than

      • (i) property used in carrying on an insurance business, and

      • (ii) where the taxpayer is non-resident, ships and aircraft used principally in international traffic and personal or movable property pertaining to their operation if the country in which the taxpayer is resident does not impose tax on gains of persons resident in Canada from dispositions of such property,

    • (c) if the taxpayer is an insurer, its designated insurance property for the year,

    • (d) a share of the capital stock of a corporation (other than a mutual fund corporation) that is not listed on a designated stock exchange, an interest in a partnership or an interest in a trust (other than a unit of a mutual fund trust or an income interest in a trust resident in Canada), if, at any particular time during the 60-month period that ends at that time, more than 50% of the fair market value of the share or interest, as the case may be, was derived directly or indirectly (otherwise than through a corporation, partnership or trust the shares or interests in which were not themselves taxable Canadian property at the particular time) from one or any combination of

      • (i) real or immovable property situated in Canada,

      • (ii) Canadian resource properties,

      • (iii) timber resource properties, and

      • (iv) options in respect of, or interests in, or for civil law rights in, property described in any of subparagraphs (i) to (iii), whether or not the property exists,

    • (e) a share of the capital stock of a corporation that is listed on a designated stock exchange, a share of the capital stock of a mutual fund corporation or a unit of a mutual fund trust, if, at any particular time during the 60-month period that ends at that time,

      • (i) 25% or more of the issued shares of any class of the capital stock of the corporation, or 25% or more of the issued units of the trust, as the case may be, were owned by or belonged to one or any combination of

        • (A) the taxpayer,

        • (B) persons with whom the taxpayer did not deal at arm’s length, and

        • (C) partnerships in which the taxpayer or a person referred to in clause (B) holds a membership interest directly or indirectly through one or more partnerships, and

      • (ii) more than 50% of the fair market value of the share or unit, as the case may be, was derived directly or indirectly from one or any combination of properties described under subparagraphs (d)(i) to (iv), or

    • (f) an option in respect of, or an interest in, or for civil law a right in, a property described in any of paragraphs (a) to (e), whether or not the property exists,

    and, for the purposes of section 2, subsection 107(2.001) and sections 128.1 and 150, and for the purpose of applying paragraphs 85(1)(i) and 97(2)(c) to a disposition by a non-resident person, includes

    • (g) a Canadian resource property,

    • (h) a timber resource property,

    • (i) an income interest in a trust resident in Canada,

    • (j) a right to a share of the income or loss under an agreement referred to in paragraph 96(1.1)(a), and

    • (k) a life insurance policy in Canada; (bien canadien imposable)

    taxable capital gain

    taxable capital gain has the meaning assigned by section 38; (gain en capital imposable)

    taxable dividend

    taxable dividend has the meaning assigned by subsection 89(1); (dividende imposable)

    taxable income

    taxable income has the meaning assigned by subsection 2(2), except that in no case may a taxpayer’s taxable income be less than nil; (revenu imposable)

    taxable income earned in Canada

    taxable income earned in Canada means a taxpayer’s taxable income earned in Canada determined in accordance with Division D of Part I, except that in no case may a taxpayer’s taxable income earned in Canada be less than nil; (revenu imposable gagné au Canada)

    taxable net gain

    taxable net gain from dispositions of listed personal property has the meaning assigned by section 41; (gain net imposable)

    taxable preferred share

    taxable preferred share at any particular time means

    • (a) a share issued after December 15, 1987 that is a short-term preferred share at that particular time, or

    • (b) a share (other than a grandfathered share) of the capital stock of a corporation issued after 8:00 p.m Eastern Daylight Saving Time, June 18, 1987 where, at that particular time by reason of the terms or conditions of the share or any agreement in respect of the share or its issue to which the corporation, or a specified person in relation to the corporation, is a party,

      • (i) 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

        • (A) fixed,

        • (B) limited to a maximum, or

        • (C) established to be not less than a minimum (including any amount determined on a cumulative basis) and with respect to the dividend that may be declared or paid on the share there is a preference over any other dividend that may be declared or paid on any other share of the capital stock of the corporation,

      • (ii) 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 or on the redemption, acquisition or cancellation of the share (unless the requirement to redeem, acquire or cancel the share arises only in the event of the death of the shareholder or by reason only of a right to convert or exchange the share) or on a reduction of the paid-up capital of the share by the corporation or by a specified person in relation to the corporation (in this definition referred to as the “liquidation entitlement”) is, by way of a formula or otherwise

        • (A) fixed,

        • (B) limited to a maximum, or

        • (C) established to be not less than a minimum,

        and, for the purposes of this subparagraph, shareholder includes a shareholder of a shareholder,

      • (iii) the share is convertible or exchangeable at any time, unless

        • (A) it is convertible into or exchangeable for

          • (I) another share of the corporation or a corporation related to the corporation that, if issued, would not be a taxable preferred share,

          • (II) a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the corporation or a corporation related to the corporation that, if issued, would not be a taxable 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 (I) or the right or warrant described in subclause (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 (I) to (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 Part IV.1 or VI.1, or

      • (iv) any person (other than the corporation) was, at or immediately before that particular time, obligated, either absolutely or contingently, and either immediately or in the future, to effect any undertaking (in this subparagraph referred to as a “guarantee agreement”), including any guarantee, covenant or agreement to purchase or repurchase the share, and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the shareholder or any specified person in relation to the shareholder given

        • (A) to ensure that any loss that the shareholder or a specified person in relation to the shareholder may sustain by reason of the ownership, holding or disposition of the share or any other property is limited in any respect, or

        • (B) to ensure that the shareholder or a specified person in relation to the shareholder will derive earnings by reason of the ownership, holding or disposition of the share or any other property,

        and the guarantee agreement was given as part of a transaction or event or a series of transactions or events that included the issuance of the share and, for the purposes of this paragraph, where a guarantee agreement in respect of a share is given at any particular time after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987, otherwise than pursuant to a written arrangement to do so entered into before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987, the share shall be deemed to have been issued at the particular time and the guarantee agreement shall be deemed to have been given as part of a series of transactions that included the issuance of the share,

    but does not include a share that is at the particular time a prescribed share or a share described in paragraph (e) of the definition term preferred share in this subsection during the applicable time period referred to in that paragraph and, for the purposes of this definition,

    • (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) 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 definition term preferred share in 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) 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 definition term preferred share in this subsection,

    • (e) where at any particular time after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987, otherwise than pursuant to a written arrangement to do so entered into before 8:00 p.m. 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 definition grandfathered share in 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 definition term preferred share in 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)

    taxable RFI share

    taxable RFI share at any particular time means a share of the capital stock of a corporation issued before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 or a grandfathered share of the capital stock of a corporation, where at the particular time under the terms or conditions of the share or any agreement in respect of the share,

    • (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,

    but does not include a share that is at the particular time a prescribed share, a term preferred share, a share described in paragraph (e) of the definition term preferred share in this subsection during the applicable time period referred to in that paragraph or a taxable preferred share and, for the purposes of this definition,

    • (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 definition taxable preferred share in 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 definition term preferred share in 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 definition taxable preferred share in 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 definition term preferred share in 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 definition term preferred share in 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)

    tax-indifferent investor

    tax-indifferent investor, at any time, means a person or partnership that is at that time

    • (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 a permanent establishment (as defined in section 8201 of the Income 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 a fixed interest (as defined in subsection 251.2(1)) in the trust (in this definition referred to as a discretionary 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)

    taxpayer

    taxpayer includes any person whether or not liable to pay tax; (contribuables)

    tax shelter

    tax shelter has the meaning assigned by subsection 237.1(1); (abri fiscal)

    tax treaty

    tax treaty with a country at any time means a comprehensive agreement or convention for the elimination of double taxation on income, between the Government of Canada and the government of the country, which has the force of law in Canada at that time; (traité fiscal)

    10/8 policy

    10/8 policy means a life insurance policy (other than an annuity) where

    • (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 definition amount payable in 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)

    term preferred share

    term preferred share of a corporation (in this definition referred to as the issuing corporation) means a share of a class of the capital stock of the issuing corporation if the share was issued or acquired after June 28, 1982 and, at the time the share was issued or acquired, the existence of the issuing corporation was, or there was an arrangement under which it could be, limited or, in the case of a share issued after November 16, 1978 if

    • (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 definition specified 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,

    but does not include a share of the capital stock of a corporation

    • (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 definition specified financial institution in 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 the Bankruptcy 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 definition short-term preferred share in 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 definition taxable preferred share in this subsection to have been issued after December 15, 1987 if the references therein to “8:00 p.m. Eastern Daylight Saving Time, June 18, 1987” were read as references to “December 15, 1987”,

    and, for the purposes of this definition,

    • (g) where the terms or conditions of an established agreement were amended after November 16, 1978, the agreement shall be deemed to have been made after that date,

    • (h) where

      • (i) at any particular time the terms or conditions of a share issued pursuant to an established agreement or of any agreement relating to such a share have been changed,

      • (ii) under the terms or conditions of

        • (A) a share of a class of the capital stock of the issuing corporation issued before November 17, 1978 (other than a share that was listed on November 16, 1978 on a prescribed stock exchange in Canada),

        • (B) a share issued pursuant to an established agreement,

        • (C) any agreement between the issuing corporation and the owner of a share described in clause (A) or (B), or

        • (D) any agreement relating to a share described in clause (A) or (B) made after October 23, 1979,

        the owner thereof could at any particular time after November 16, 1978 require, either alone or together with one or more taxpayers, the redemption, acquisition, cancellation, conversion or reduction of the paid-up capital of the share otherwise than by reason of a failure or default under the terms or conditions of the share or any agreement that related to, and was entered into at the time of, the issuance of the share,

      • (iii) in respect of a share issued before November 17, 1978, at any particular time after November 16, 1978 the redemption date was extended or the terms or conditions relating to its redemption, acquisition, cancellation, conversion or reduction of its paid-up capital were changed,

      • (iv) at a particular time after October 23, 1979 and before November 13, 1981, a specified financial institution (or a partnership or trust of which a specified financial institution or a person related to the institution is a member or beneficiary) acquired a share that

        • (A) was issued before November 17, 1978 or under an established agreement,

        • (B) was issued to a person other than a corporation that was, at the time of issue,

          • (I) described in any of paragraphs (a) to (e) of the definition specified financial institution, or

          • (II) a corporation that was controlled by one or more corporations described in subclause (I) and, for the purpose of this subclause, one corporation is controlled by another corporation if more than 50% of its issued share capital (having full voting rights under all circumstances) belongs to the other corporation, to persons with whom the other corporation does not deal at arm’s length, or to the other corporation and persons with whom the other corporation does not deal at arm’s length,

        • (C) was acquired from a person that was, at the particular time, a person other than a corporation described in subclause (B)(I) or (II), and

        • (D) was acquired otherwise than under an agreement in writing made before October 24, 1979,

      • (v) at any particular time after November 12, 1981

        • (A) in respect of

          • (I) a share (other than a share referred to in paragraph (e) or a share listed on November 13, 1981 on a prescribed stock exchange in Canada) issued after November 16, 1978 and before November 13, 1981, or

          • (II) a share issued after November 12, 1981 and before 1983 pursuant to an agreement in writing to do so made before November 13, 1981 (in this definition referred to as a “specified agreement”)

        the owner thereof could require, either alone or together with one or more taxpayers, the redemption, acquisition, cancellation, conversion or reduction of the paid-up capital of the share otherwise than by reason of a failure or default under the terms or conditions of the share or any agreement that related to, and was entered into at the time of, the issuance of the share, or

        • (B) the redemption date of

          • (I) a share issued after November 16, 1978 and before November 13, 1981 or

          • (II) a share issued pursuant to a specified agreement

        was extended or the terms or conditions relating to its redemption, acquisition, cancellation, conversion or reduction of its paid-up capital were changed, or

      • (vi) at a particular time after November 12, 1981, a specified financial institution (or a partnership or trust of which a specified financial institution or a person related to the institution is a member or beneficiary) acquired a share (other than a share referred to in paragraph (e)) that

        • (A) was issued before November 13, 1981 or under a specified agreement,

        • (B) was acquired from a partnership or person, other than a person that was, at the particular time, a corporation described in any of paragraphs (a) to (f) of the definition specified financial institution in this subsection,

        • (C) was acquired in an acquisition that was not subject to nor conditional on a guarantee agreement, within the meaning assigned by subsection 112(2.2), entered into after November 12, 1981, and

        • (D) was acquired otherwise than under an agreement in writing made before October 24, 1979 or a specified agreement,

      the share shall, for the purposes of determining at any time after the particular time whether it is a term preferred share, be deemed to have been issued at the particular time otherwise than pursuant to an established or specified agreement,

    • (i) where the terms or conditions of a share of the capital stock of the issuing corporation are modified or established after June 28, 1982 and as a consequence thereof the issuing corporation, any person related thereto or any partnership or trust of which the issuing corporation or a person related thereto is a member or a beneficiary may reasonably be expected at any time to redeem, acquire or cancel, in whole or in part, the share or to reduce its paid-up capital, the share shall be deemed as from the date of the modification or as from the date of the establishment, as the case may be, to be a share described in paragraph (a),

    • (i.1) where

      • (i) it may reasonably be considered that the dividends that may be declared or paid at any time on a share (other than a prescribed share or a share described in paragraph (e) 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 term 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 subsection 112(2.1) or 138(6),

      the share shall be deemed at that time to be a term preferred share acquired in the ordinary course of business,

    • (i.2) where at any particular time after December 15, 1987, otherwise than pursuant to a written arrangement to do so entered into before December 16, 1987, the terms or conditions of a taxable preferred share of the capital stock of a corporation relating to any matter referred to in subparagraphs (a)(i) to (iv) have been modified or established, or any agreement in respect of the share relating to any such matter has been changed or entered into by the corporation or a specified person (within the meaning assigned by paragraph (h) of the definition taxable preferred share in this subsection) in relation to the corporation, the share shall be deemed after that particular time to have been issued at that particular time, and,

    • (j) where a particular share of the capital stock of a corporation has been issued or its terms and conditions have been modified and it may reasonably be considered, having regard to all circumstances (including the rate of interest on any debt or the dividend provided on any term preferred share), that

      • (i) but for the existence at any time of the debt or the term preferred share, the particular share would not have been issued or its terms or conditions modified, and

      • (ii) one of the main purposes for the issue of the particular share or for the modification of its terms or conditions was to avoid a limitation provided by subsection 112(2.1) or 138(6) in respect of a deduction,

      the particular share shall be deemed after December 31, 1982 to be a term preferred share of the corporation; (action privilégiée à terme)

    testamentary trust

    testamentary trust has the meaning assigned by subsection 108(1); (fiducie testamentaire)

    TFSA

    TFSA, being a tax-free savings account, has the meaning assigned by subsection 146.2(5); (compte d’épargne libre d’impôt)

    timber resource property

    timber resource property has the meaning assigned by subsection 13(21); (avoir forestier)

    total pension adjustment reversal

    total pension adjustment reversal of a taxpayer for a calendar year has the meaning assigned by regulation; (facteur d’équivalence rectifié total)

    Treasury Board

    Treasury Board means the Treasury Board established by section 5 of the Financial Administration Act; (Conseil du Trésor)

    treaty-protected business

    treaty-protected business of a taxpayer at any time means a business in respect of which any income of the taxpayer for a period that includes that time would, because of a tax treaty with another country, be exempt from tax under Part I; (entreprise protégée par traité)

    treaty-protected property

    treaty-protected property of a taxpayer at any time means property any income or gain from the disposition of which by the taxpayer at that time would, because of a tax treaty with another country, be exempt from tax under Part I; (bien protégé par traité)

    trust

    trust has the meaning assigned by subsection 104(1) and, unless the context otherwise requires, includes an estate; (fiducie)

    trust account number

    trust account number means the number (other than a business number)

    • (a) used by the Minister to identify a trust, and

    • (b) of which the Minister has notified the trust; (numéro de compte en fiducie)

    undepreciated capital cost

    undepreciated capital cost to a taxpayer of depreciable property of a prescribed class has the meaning assigned by subsection 13(21); (fraction non amortie du coût en capital)

    unit trust

    unit trust has the meaning assigned by subsection 108(2); (fiducie d’investissement à participation unitaire)

    unused RRSP deduction room

    unused RRSP deduction room of a taxpayer at the end of a taxation year has the meaning assigned by subsection 146(1); (déductions inutilisées au titre des REER)

    unused scientific research and experimental development tax credit

    unused scientific research and experimental development tax credit of a taxpayer for a taxation year has the meaning assigned by subsection 127.3(2); (partie inutilisée du crédit d’impôt pour des activités de recherche scientifique et de développement expérimental)

    unused share-purchase tax credit

    unused share-purchase tax credit of a taxpayer for a taxation year has the meaning assigned by subsection 127.2(6); (partie inutilisée du crédit d’impôt à l’achat d’actions)

    zero-emission passenger vehicle

    zero-emission passenger vehicle, of a taxpayer, means an automobile of the taxpayer that is included in Class 54 of Schedule II to the Income Tax Regulations; (voiture de tourisme zéro émission)

    zero-emission vehicle

    zero-emission vehicle, of a taxpayer, means a motor vehicle that

    • (a) is a plug-in hybrid that meets prescribed conditions or is fully

      • (i) electric, or

      • (ii) powered by hydrogen,

    • (b) is acquired, and becomes available for use, by the taxpayer after March 18, 2019 and before 2028,

    • (c) does not meet any of the following conditions:

      • (i) it is a vehicle in respect of which the taxpayer has, at any time, made an election under subsection 1103(2j) of the Income Tax Regulations,

      • (ii) it is a vehicle in respect of which assistance has been paid by the Government of Canada under a prescribed program, and

      • (iii) if the vehicle was acquired before March 2, 2020, either

        • (A) it has been used, or acquired for use, for any purpose before it was acquired by the taxpayer, or

        • (B) it is a vehicle in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) by another person or partnership, and

    • (d) would be an accelerated investment incentive property of the taxpayer if subsection 1104(4) of the Income Tax Regulations were read without its exclusions for property included in Class 54 or Class 55 of Schedule II to those Regulations. (véhicule zéro émission)

  • Marginal note:Non-disposition before December 24, 1998

    (1.1) A redemption, an acquisition or a cancellation, at any particular time after 1971 and before December 24, 1998, of a share or of a right to acquire a share (which share or which right, as the case may be, is referred to in this subsection as the “security”) of the capital stock of a corporation (referred to in this subsection as the “issuing corporation”) held by another corporation (referred to in this subsection as the “disposing corporation”) is not a disposition (within the meaning of the definition disposition in section 54 as that section read in its application to transactions and events that occurred at the particular time) of the security if

    • (a) the redemption, acquisition or cancellation occurred as part of a merger or combination of two or more corporations (including the issuing corporation and the disposing corporation) to form one corporate entity (referred to in this subsection as the “new corporation”);

    • (b) the merger or combination

      • (i) is an amalgamation (within the meaning assigned by subsection 87(1) as it read at the particular time) to which subsection 87(11) if in force, and as it read, at the particular time did not apply,

      • (ii) is an amalgamation (within the meaning assigned by subsection 87(1) as it read at the particular time) to which subsection 87(11) if in force, and as it read, at the particular time applies, if the issuing corporation and the disposing corporation are described by subsection 87(11) (if in force, and as it read, at the particular time) as the parent and the subsidiary, respectively,

      • (iii) occurred before November 13, 1981 and is a merger of corporations that is described by subsection 87(8) (as it read in respect of the merger or combination), or

      • (iv) occurred after November 12, 1981 and

        • (A) is a foreign merger (within the meaning assigned by subsection 87(8.1) as it read in respect of the merger or combination), or

        • (B) all of the following conditions are met:

          • (I) the merger or combination is not a foreign merger (within the meaning assigned by subsection 87(8.1) as it read in respect of the merger or combination),

          • (II) subsection 87(8.1), as it read in respect of the merger or combination, contained a subparagraph (c)(ii), and

          • (III) the merger or combination would be a foreign merger (within the meaning of subsection 87(8.1), as it read in respect of the merger or combination) if that subparagraph 87(8.1)(c)(ii) were read as follows:

            • “(ii) if, immediately after the merger, the new foreign corporation was controlled by another foreign corporation (in this subsection referred to as the “parent corporation”), shares of the capital stock of the parent corporation,”;

      and

    • (c) either

      • (i) the disposing corporation received no consideration for the security, or

      • (ii) in the case where the merger or combination is described by subparagraph (b)(iv), the disposing corporation received no consideration for the security other than property that was, immediately before the merger or combination, owned by the issuing corporation and that, on the merger or combination, became property of the new corporation.

  • Marginal note:Tax payable

    (2) In this Act, the tax payable by a taxpayer under any Part of this Act by or under which provision is made for the assessment of tax means the tax payable by the taxpayer as fixed by assessment or reassessment subject to variation on objection or on appeal, if any, in accordance with the provisions of that Part.

  • Marginal note:Property subject to certain Quebec institutions and arrangements

    (3) For the purposes of this Act, if property is subject to an institution or arrangement that is described by this subsection and that is governed by the laws of the Province of Quebec, the following rules apply in respect of the property:

    • (a) if at any time property is subject to a usufruct, right of use or habitation, or substitution,

      • (i) the usufruct, right of use or habitation, or substitution, as the case may be, is deemed to be at that time

        • (A) a trust, and

        • (B) where the usufruct, right of use or habitation, or substitution, as the case may be, is created by will, a trust created by will,

      • (ii) the property is deemed

        • (A) where the usufruct, right of use or habitation, or substitution, as the case may be, arises on the death of a testator, to have been transferred to the trust on and as a consequence of the death of the testator, and not otherwise, and

        • (B) where the usufruct, right of use or habitation, or substitution, as the case may be, arises otherwise, to have been transferred (at the time it first became subject to the usufruct, right of use or habitation, or substitution, as the case may be) to the trust by the person that granted the usufruct, right of use or habitation, or substitution, and

      • (iii) the property is deemed to be, throughout the period in which it is subject to the usufruct, right of use or habitation, or substitution, as the case may be, held by the trust, and not otherwise;

    • (b) an arrangement (other than a partnership, a qualifying arrangement or an arrangement that is a trust determined without reference to this paragraph) is deemed to be a trust and property subject to rights and obligations under the arrangement is, if the arrangement is deemed by this paragraph to be a trust, deemed to be held in trust and not otherwise, where the arrangement

      • (i) is established before October 31, 2003 by or under a written contract that

        • (A) is governed by the laws of the Province of Quebec, and

        • (B) provides that, for the purposes of this Act, the arrangement shall be considered to be a trust, and

      • (ii) creates rights and obligations that are substantially similar to the rights and obligations under a trust (determined without reference to this subsection);

    • (c) if the arrangement is a qualifying arrangement,

      • (i) the arrangement is deemed to be a trust,

      • (ii) any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor, and

      • (iii) property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise;

    • (d) a person who has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in paragraph (a) or (b) is deemed to be beneficially interested in the trust; and

    • (e) notwithstanding that a property is at any time subject to a servitude, the property is deemed to be beneficially owned by a person at that time if, at that time, the person has in relation to the property

      • (i) the right of ownership,

      • (ii) a right as a lessee under an emphyteusis, or

      • (iii) a right as a beneficiary in a trust.

  • Marginal note:Gift of bare ownership of immovables

    (3.1) Subsection (3) does not apply in respect of a usufruct or a right of use of an immovable in circumstances where a taxpayer disposes of the bare ownership of the immovable by way of a gift to a qualified donee and retains, for life, the usufruct or the right of use.

  • Marginal note:Qualifying arrangement

    (3.2) For the purposes of paragraphs 248(3)(b) and (c), an arrangement is a qualifying arrangement if it is

    • (a) entered into with a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee;

    • (b) established by or under a written contract that is governed by the laws of the Province of Quebec;

    • (c) presented as a declaration of trust or provides that, for the purposes of this Act, it shall be considered to be a trust; and

    • (d) presented as an arrangement in respect of which the corporation is to take action for the arrangement to become a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA.

  • Marginal note:Interest in real property

    (4) In this Act, an interest in real property includes a leasehold interest in real property but does not include an interest as security only derived by virtue of a mortgage, agreement for sale or similar obligation.

  • Marginal note:Real right in immovables

    (4.1) In this Act, a real right in an immovable includes a lease but does not include a security right derived by virtue of a hypothec, agreement for sale or similar obligation.

  • Marginal note:Substituted property

    (5) For the purposes of this Act, other than paragraph 98(1)(a),

    • (a) where a person has disposed of or exchanged a particular property and acquired other property in substitution therefor and subsequently, by one or more further transactions, has effected one or more further substitutions, the property acquired by any such transaction shall be deemed to have been substituted for the particular property; and

    • (b) any share received as a stock dividend on another share of the capital stock of a corporation shall be deemed to be property substituted for that other share.

  • Marginal note:“Class” of shares issued in series

    (6) In its application in relation to a corporation that has issued shares of a class of its capital stock in one or more series, a reference in this Act to the “class” shall be read, with such modifications as the circumstances require, as a reference to a “series of the class.”

  • Marginal note:Receipt of things mailed

    (7) For the purposes of this Act,

    • (a) anything (other than a remittance or payment described in paragraph 248(7)(b)) sent by first class mail or its equivalent shall be deemed to have been received by the person to whom it was sent on the day it was mailed; and

    • (b) the remittance or payment of an amount

      • (i) deducted or withheld, or

      • (ii) payable by a corporation,

      as required by this Act or a regulation shall be deemed to have been made on the day on which it is received by the Receiver General.

  • Marginal note:Occurrences as a consequence of death

    (8) For the purpose of this Act,

    • (a) a transfer, distribution or acquisition of property under or as a consequence of the terms of the will or other testamentary instrument of a taxpayer or the taxpayer’s spouse or common-law partner or as a consequence of the law governing the intestacy of a taxpayer or the taxpayer’s spouse or common-law partner shall be considered to be a transfer, distribution or acquisition of the property as a consequence of the death of the taxpayer or the taxpayer’s spouse or common-law partner, as the case may be;

    • (b) a transfer, distribution or acquisition of property as a consequence of a disclaimer, release or surrender by a person who was a beneficiary under the will or other testamentary instrument or on the intestacy of a taxpayer or the taxpayer’s spouse or common-law partner shall be considered to be a transfer, distribution or acquisition of the property as a consequence of the death of the taxpayer or the taxpayer’s spouse or common-law partner, as the case may be; and

    • (c) a release or surrender by a beneficiary under the will or other testamentary instrument or on the intestacy of a taxpayer with respect to any property that was property of the taxpayer immediately before the taxpayer’s death shall be considered not to be a disposition of the property by the beneficiary.

  • Marginal note:Definitions

    (9) In subsection 248(8),

    disclaimer

    disclaimer includes a renunciation of a succession made under the laws of the Province of Quebec that is not made in favour of any person, but does not include any disclaimer made after the period ending 36 months after the death of the taxpayer unless written application therefor has been made to the Minister by the taxpayer’s legal representative within that period and the disclaimer is made within such longer period as the Minister considers reasonable in the circumstances; (renonciation)

    release or surrender

    release or surrender means

    • (a) a release or surrender made under the laws of a province (other than the Province of Quebec) that does not direct in any manner who is entitled to benefit therefrom, or

    • (b) a gift inter vivos made under the laws of the Province of Quebec of an interest in, or right to property of, a succession that is made to the person or persons who would have benefited if the donor had made a renunciation of the succession that was not made in favour of any person,

    and that is made within the period ending 36 months after the death of the taxpayer or, where written application therefor has been made to the Minister by the taxpayer’s legal representative within that period, within such longer period as the Minister considers reasonable in the circumstances. (abandon)

  • Marginal note:How trust created

    (9.1) For the purposes of this Act, a trust shall be considered to be created by a taxpayer’s will if the trust is created

    • (a) under the terms of the taxpayer’s will; or

    • (b) by an order of a court in relation to the taxpayer’s estate made under any law of a province that provides for the relief or support of dependants.

  • Marginal note:Vested indefeasibly

    (9.2) For the purposes of this Act, property shall be deemed not to have vested indefeasibly

    • (a) in a trust under which a taxpayer’s spouse or common-law partner is a beneficiary, where the trust is created by the will of the taxpayer, unless the property vested indefeasibly in the trust before the death of the spouse or common-law partner; and

    • (b) in an individual (other than a trust), unless the property vested indefeasibly in the individual before the death of the individual.

  • Marginal note:Series of transactions

    (10) For the purposes of this Act, where there is a reference to a series of transactions or events, the series shall be deemed to include any related transactions or events completed in contemplation of the series.

  • Marginal note:Compound interest

    (11) Interest computed at a prescribed rate under any of subsections 129(2.1) and (2.2), 131(3.1) and (3.2), 132(2.1) and (2.2), 133(7.01) and (7.02), 159(7), 160.1(1), 161(1), (2) and (11), 161.1(5), 164(3) to (4), 181.8(1) and (2) (as those two subsections read in their application to the 1991 and earlier taxation years), 185(2), 187(2) and 189(7), section 190.23 (as it read in its application to the 1991 and earlier taxation years) and subsections 193(3), 195(3), 202(5) and 227(8.3), (9.2) and (9.3) of this Act and subsection 182(2) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952 (as that subsection read in its application to taxation years beginning before 1986) and subsection 191(2) of that Act (as that subsection read in its application to the 1984 and earlier taxation years) shall be compounded daily and, where interest is computed on an amount under any of those provisions and is unpaid or unapplied on the day it would, but for this subsection, have ceased to be computed under that provision, interest at the prescribed rate shall be computed and compounded daily on the unpaid or unapplied interest from that day to the day it is paid or applied and shall be paid or applied as would be the case if interest had continued to be computed under that provision after that day.

  • Marginal note:Identical properties

    (12) For the purposes of this Act, one bond, debenture, bill, note or similar obligation issued by a debtor is identical to another such obligation issued by that debtor if both are identical in respect of all rights (in equity or otherwise, either immediately or in the future and either absolutely or contingently) attaching thereto, except as regards the principal amount thereof.

  • Marginal note:Interests in trusts and partnerships

    (13) Where after November 12, 1981 a person has an interest in a trust or partnership, whether directly or indirectly through an interest in any other trust or partnership or in any manner whatever, the person shall, for the purposes of the definitions income bond, income debenture and term preferred share in subsection 248(1), paragraph (h) of the definition taxable preferred share in that subsection, subsections 84(4.2) and 84(4.3) and 112(2.6) and section 258, be deemed to be a beneficiary of the trust or a member of the partnership, as the case may be.

  • Marginal note:Related corporations

    (14) For the purpose of paragraph (g) of the definition specified financial institution in subsection 248(1), where in the case of 2 or more corporations it can reasonably be considered, having regard to all the circumstances, that one of the main reasons for the separate existence of those corporations in a taxation year is to limit or avoid the application of subsection 112(2.1) or 112(2.2) or 138(6), the 2 or more corporations shall be deemed to be related to each other and to each other corporation to which any such corporation is related.

  • Marginal note:Goods and services tax — change of use

    (15) For the purposes of this Act, where a liability for the goods and services tax is incurred in respect of a change of use at any time of a property, the liability so incurred shall be deemed to have been incurred immediately after that time in respect of the acquisition of the property.

  • Marginal note:Goods and services tax — input tax credit and rebate

    (16) For the purposes of this Act, other than this subsection and subsection 6(8), an amount claimed by a taxpayer as an input tax credit or rebate with respect to the goods and services tax in respect of a property or service is deemed to be assistance from a government in respect of the property or service that is received by the taxpayer

    • (a) where the amount was claimed by the taxpayer as an input tax credit in a return under Part IX of the Excise Tax Act for a reporting period under that Act,

      • (i) at the particular time that is the earlier of the time that the goods and services tax in respect of the input tax credit was paid and the time that it became payable,

        • (A) if the particular time is in the reporting period, or

        • (B) if,

          • (I) the taxpayer’s threshold amount, determined in accordance with subsection 249(1) of the Excise Tax Act, is greater than $500,000 for the taxpayer’s fiscal year (within the meaning assigned by that Act) that includes the particular time, and

          • (II) the taxpayer claimed the input tax credit at least 120 days before the end of the normal reassessment period, as determined under subsection 152(3.1), for the taxpayer in respect of the taxation year that includes the particular time,

      • (ii) at the end of the reporting period, if

        • (A) subparagraph (i) does not apply, and

        • (B) the taxpayer’s threshold amount, determined in accordance with subsection 249(1) of the Excise Tax Act, is $500,000 or less for the fiscal year (within the meaning assigned by that Act) of the taxpayer that includes the particular time, and

      • (iii) in any other case, on the last day of the taxpayer’s earliest taxation year

        • (A) that begins after the taxation year that includes the particular time, and

        • (B) for which the normal reassessment period, as determined under subsection 152(3.1), for the taxpayer ends at least 120 days after the time that the input tax credit was claimed; or

    • (b) where the amount was claimed as a rebate with respect to the goods and services tax, at the time the amount was received or credited.

  • Marginal note:Quebec input tax refund and rebate

    (16.1) For the purpose of this Act, other than this subsection and subsection 6(8), an amount claimed by a taxpayer as an input tax refund or a rebate with respect to the Quebec sales tax in respect of a property or service is deemed to be assistance from a government in respect of the property or service that is received by the taxpayer

    • (a) where the amount was claimed by the taxpayer as an input tax refund in a return under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, for a reporting period under that Act,

      • (i) at the particular time that is the earlier of the time that the Quebec sales tax in respect of the input tax refund was paid and the time that it became payable,

        • (A) if the particular time is in the reporting period, or

        • (B) if,

          • (I) the taxpayer’s threshold amount, determined in accordance with section 462 of that Act is greater than $500,000 for the taxpayer’s fiscal year (within the meaning assigned by that Act) that includes the particular time, and

          • (II) the taxpayer claimed the input tax refund at least 120 days before the end of the normal reassessment period, as determined under subsection 152(3.1), for the taxpayer in respect of the taxation year that includes the particular time,

      • (ii) at the end of the reporting period, if

        • (A) subparagraph (i) does not apply, and

        • (B) the taxpayer’s threshold amount, determined in accordance with section 462 of that Act is $500,000 or less for the fiscal year (within the meaning assigned by that Act) of the taxpayer that includes the particular time, and

      • (iii) in any other case, on the last day of the taxpayer’s earliest taxation year

        • (A) that begins after the taxation year that includes the particular time, and

        • (B) for which the normal reassessment period, as determined under subsection 152(3.1), for the taxpayer ends at least 120 days after the time that the input tax refund was claimed; or

    • (b) where the amount was claimed as a rebate with respect to the Quebec sales tax, at the time the amount was received or credited.

  • Marginal note:Application of subsection (16) to certain vehicles and aircraft

    (17) If the input tax credit of a taxpayer under Part IX of the Excise Tax Act in respect of a passenger vehicle, zero-emission passenger vehicle or aircraft is determined with reference to subsection 202(4) of that Act, subparagraphs (16)(a)(i) to (iii) are to be read as they apply in respect of the vehicle or aircraft, as the case may be, as follows:

    • (i) at the beginning of the first taxation year or fiscal period of the taxpayer commencing after the end of the taxation year or fiscal period, as the case may be, in which the goods and services tax in respect of such property was considered for the purposes of determining the input tax credit to be payable, if the tax was considered for the purposes of determining the input tax credit to have become payable in the reporting period, or

    • (ii) if no such tax was considered for the purposes of determining the input tax credit to have become payable in the reporting period, at the end of the reporting period; or

  • Marginal note:Application of subsection (16.1) to certain vehicles and aircraft

    (17.1) If the input tax refund of a taxpayer under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, in respect of a passenger vehicle, zero-emission passenger vehicle or aircraft is determined with reference to section 252 of that Act, subparagraphs (16.1)(a)(i) to (iii) are to be read as they apply in respect of the vehicle or aircraft, as the case may be, as follows:

    • (i) at the beginning of the first taxation year or fiscal period of the taxpayer that begins after the end of the taxation year or fiscal period, as the case may be, in which the Quebec sales tax in respect of such property was considered for the purposes of determining the input tax refund to be payable, if the tax was considered for the purposes of determining the input tax refund to have become payable in the reporting period, or

    • (ii) if no such tax was considered for the purposes of determining the input tax refund to have become payable in the reporting period, at the end of the reporting period; or

  • Marginal note:Input tax credit on assessment

    (17.2) An amount in respect of an input tax credit that is deemed by subsection 296(5) of the Excise Tax Act to have been claimed in a return or application filed under Part IX of that Act is deemed to have been so claimed for the reporting period under that Act that includes the time when the Minister makes the assessment referred to in that subsection.

  • Marginal note:Quebec input tax refund on assessment

    (17.3) An amount in respect of an input tax refund that is deemed by section 30.5 of the Tax Administration Act, R.S.Q., c. A-6.002, to have been claimed is deemed to have been so claimed for the reporting period under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, that includes the day on which an assessment is issued to the taxpayer indicating that the refund has been allocated under that section 30.5.

  • Marginal note:Goods and services tax — repayment of input tax credit

    (18) For the purposes of this Act, where an amount is added at a particular time in determining the net tax of a taxpayer under Part IX of the Excise Tax Act in respect of an input tax credit relating to property or a service that had been previously deducted in determining the net tax of the taxpayer, that amount shall be deemed to be assistance repaid at the particular time in respect of the property or service pursuant to a legal obligation to repay all or part of that assistance.

  • Marginal note:Repayment of Quebec input tax refund

    (18.1) For the purposes of this Act, if an amount is added at a particular time in determining the net tax of a taxpayer under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, in respect of an input tax refund relating to property or service that had been previously deducted in determining the net tax of the taxpayer, that amount is deemed to be assistance repaid at the particular time in respect of the property or service under a legal obligation to repay all or part of that assistance.

  • Marginal note:When property available for use

    (19) Except as otherwise provided, property shall be considered to have become available for use for the purposes of this Act at the time at which it has, or would have if it were depreciable property, become available for use for the purpose of subsection 13(26).

  • Marginal note:Partition of property

    (20) Subject to subsections (21) to (23), for the purposes of this Act, if at any time a property owned by two or more persons is the subject of a partition, the following rules apply, notwithstanding any retroactive or declaratory effect of the partition:

    • (a) each such person who had, immediately before that time, an interest in, or for civil law a right in, the property (which interest or right in the property is referred to in this subsection and subsection (21) as an “interest” or a “right”, as the case may be) is deemed not to have disposed at that time of that proportion, not exceeding 100%, of the interest or right that the fair market value of that person’s interest or right in the property immediately after that time is of the fair market value of that person’s interest or right in the property immediately before that time,

    • (b) each such person who has an interest or a right in the property immediately after that time is deemed not to have acquired at that time that proportion of the interest or right that the fair market value of that person’s interest or right in the property immediately before that time is of the fair market value of that person’s interest or right in the property immediately after that time,

    • (c) each such person who had an interest or a right in the property immediately before that time is deemed to have had until that time, and to have disposed at that time of, that proportion of the person’s interest or right to which paragraph (a) does not apply,

    • (d) each such person who has an interest or a right in the property immediately after that time is deemed not to have had before that time, and to have acquired at that time, that proportion of the person’s interest or right to which paragraph (b) does not apply, and

    • (e) paragraphs (a) to (d) do not apply if the interest or right of the person is an interest or a right in fungible tangible property, or for civil law fungible corporeal property described in that person’s inventory,

    and, for the purposes of this subsection, if an interest or a right in the property is an undivided interest or right, the fair market value of the interest or right at any time is deemed to be equal to that proportion of the fair market value of the property at that time that the interest or right is of all the undivided interests or rights in the property.

  • Marginal note:Subdivision of property

    (21) If a property that was owned by two or more persons is the subject of a partition among those persons and, as a consequence of it, each such person has, in the property, a new interest or right the fair market value of which immediately after the partition, expressed as a percentage of the fair market value of all the new interests or rights in the property immediately after the partition, is equal to the fair market value of that person’s undivided interest or right immediately before the partition, expressed as a percentage of the fair market value of all the undivided interests or rights in the property immediately before the partition,

    • (a) subsection (20) does not apply to the property, and

    • (b) the new interest or right of each such person is deemed to be a continuation of that person’s undivided interest or right in the property immediately before the partition,

    and, for the purposes of this subsection,

    • (c) subdivisions of a building or of a parcel of land that are established in the course of, or in contemplation of, a partition and that are co-owned by the same persons who co-owned the building or the parcel of land, or by their assignee, shall be regarded as one property, and

    • (d) if an interest or a right in the property is or includes an undivided interest or right, the fair market value of the interest or right shall be determined without regard to any discount or premium that applies to a minority or majority interest or right in the property.

  • Marginal note:Matrimonial regimes

    (22) Where at any time property could, as a consequence of the dissolution of a matrimonial regime between 2 spouses or common-law partners, be the subject of a partition, for the purposes of this Act

    • (a) where that property was owned by one of the spouses or common-law partners immediately before it became subject to that regime and had not subsequently been disposed of before that time, it shall be deemed to be owned at that time by that spouse or common-law partner and not by the other spouse or common-law partner; and

    • (b) in any other case, the property shall be deemed to be owned by the spouse or common-law partner who has the administration of that property at that time and not by the other spouse or common-law partner.

  • Marginal note:Dissolution of a matrimonial regime

    (23) Where, immediately after the dissolution of a matrimonial regime (other than a dissolution occurring as a consequence of death), the owner of a property that was subject to that regime is not the person, or the estate of the person, who is deemed by subsection 248(22) to have been the owner of the property immediately before the dissolution, the person shall be deemed for the purposes of this Act to have transferred the property to the person’s spouse or common-law partner immediately before the dissolution.

  • Marginal note:Transfers after death

    (23.1) If, as a consequence of the laws of a province relating to spouses’ or common-law partners’ interests or rights in respect of property as a result of marriage or common-law partnership, property is, after the death of a taxpayer,

    • (a) transferred or distributed to a person who was the taxpayer’s spouse or common-law partner at the time of the death, or acquired by that person, the property shall be deemed to have been so transferred, distributed or acquired, as the case may be, as a consequence of the death; or

    • (b) transferred or distributed to the taxpayer’s estate, or acquired by the taxpayer’s estate, the property shall be deemed to have been so transferred, distributed or acquired, as the case may be, immediately before the time that is immediately before the death.

  • Marginal note:Accounting methods

    (24) For greater certainty, it is hereby declared that, unless specifically required, neither the equity nor the consolidation method of accounting shall be used to determine any amount for the purposes of this Act.

  • Marginal note:Beneficially interested

    (25) For the purposes of this Act,

    • (a) a person or partnership beneficially interested in a particular trust includes any person or partnership that has any right (whether immediate or future, whether absolute or contingent or whether conditional on or subject to the exercise of any discretion by any person or partnership) as a beneficiary under a trust to receive any of the income or capital of the particular trust either directly from the particular trust or indirectly through one or more trusts or partnerships;

    • (b) except for the purpose of this paragraph, a particular person or partnership is deemed to be beneficially interested in a particular trust at a particular time where

      • (i) the particular person or partnership is not beneficially interested in the particular trust at the particular time,

      • (ii) because of the terms or conditions of the particular trust or any arrangement in respect of the particular trust at the particular time, the particular person or partnership might, because of the exercise of any discretion by any person or partnership, become beneficially interested in the particular trust at the particular time or at a later time, and

      • (iii) at or before the particular time, either

        • (A) the particular trust has acquired property, directly or indirectly in any manner whatever, from

          • (I) the particular person or partnership,

          • (II) another person with whom the particular person or partnership, or a member of the particular partnership, does not deal at arm’s length,

          • (III) a person or partnership with whom the other person referred to in subclause 248(25)(b)(iii)(A)(II) does not deal at arm’s length,

          • (IV) a controlled foreign affiliate of the particular person or of another person with whom the particular person or partnership, or a member of the particular partnership, does not deal at arm’s length, or

          • (V) a non-resident corporation that would, if the particular partnership were a corporation resident in Canada, be a controlled foreign affiliate of the particular partnership, or

        • (B) a person or partnership described in any of subclauses 248(25)(b)(iii)(A)(I) to 248(25)(b)(iii)(A)(V) has given a guarantee on behalf of the particular trust or provided any other financial assistance whatever to the particular trust; and

    • (c) a member of a partnership that is beneficially interested in a trust is deemed to be beneficially interested in the trust.

  • Marginal note:Trust-to-trust transfers

    (25.1) If, at any time, a particular trust transfers property to another trust (other than a trust governed by a registered retirement savings plan or by a registered retirement income fund) in circumstances to which paragraph (f) of the definition disposition in subsection (1) applies, without affecting the personal liabilities under this Act of the trustees of either trust or the application of subsection 104(5.8),

    • (a) the other trust is deemed to be after that time the same trust as, and a continuation of, the particular trust; and

    • (b) for greater certainty, if, as a result of a transaction or event, the property was deemed to be taxable Canadian property of the particular trust by any of paragraphs 51(1)(f), 85(1)(i) and 85.1(1)(a), subsection 85.1(5), paragraph 85.1(8)(b), subsections 87(4) and (5) and paragraphs 97(2)(c) and 107(3.1)(d), the property is also deemed to be, at any time that is within 60 months after the transaction or event, taxable Canadian property of the other trust.

  • Marginal note:Trusts to ensure obligations fulfilled

    (25.2) Except for the purpose of this subsection, where at any time property is transferred to a trust in circumstances to which paragraph (k) of the definition disposition in subsection (1) applies, the trust is deemed to deal with the property as agent for the transferor throughout the period that begins at the time of the transfer and ends at the time of the first change after that time in the beneficial ownership of the property.

  • Marginal note:Cost of trust interest

    (25.3) The cost to a taxpayer of a particular unit of a trust is deemed to be equal to the amount described in paragraph (a) where

    • (a) the trust issues the particular unit to the taxpayer directly in satisfaction of a right to enforce payment of an amount by the trust in respect of the taxpayer’s capital interest in the trust;

    • (b) at the time that the particular unit is issued, the trust is neither a personal trust nor a trust prescribed for the purpose of subsection 107(2); and

    • (c) either

      • (i) the particular unit is capital property and the amount is not proceeds of disposition of a capital interest in the trust, or

      • (ii) the particular unit is not capital property and subparagraph 53(2)(h)(i.1) does not apply in respect of the amount described in paragraph (a) but would so apply if that subparagraph were read without reference to clauses 53(2)(h)(i.1)(A) and (B).

  • Marginal note:Where acquisition by another of right to enforce

    (25.4) If at a particular time a taxpayer’s capital interest in a trust includes a right to enforce payment of an amount by the trust, the amount shall be added at the particular time to the cost otherwise determined to the taxpayer of the capital interest where

    • (a) immediately after the particular time there is a disposition by the taxpayer of the capital interest;

    • (b) as a consequence of the disposition, the right to enforce payment of the amount is acquired by another person or partnership; and

    • (c) if the right to enforce payment of the amount had been satisfied by a payment to the taxpayer by the trust, there would have been no disposition of that right for the purposes of this Act because of the application of paragraph (i) of the definition disposition in subsection (1).

  • Marginal note:Debt obligations

    (26) For greater certainty, where at any time a person or partnership (in this subsection referred to as the “debtor”) becomes liable to repay money borrowed by the debtor or becomes liable to pay an amount (other than interest)

    • (a) as consideration for any property acquired by the debtor or services rendered to the debtor, or

    • (b) that is deductible in computing the debtor’s income,

    for the purposes of applying the provisions of this Act relating to the treatment of the debtor in respect of the liability, the liability shall be considered to be an obligation, issued at that time by the debtor, that has a principal amount at that time equal to the amount of the liability at that time.

  • Marginal note:Parts of debt obligations

    (27) For greater certainty,

    • (a) unless the context requires otherwise, an obligation issued by a debtor includes any part of a larger obligation that was issued by the debtor;

    • (b) the principal amount of that part shall be considered to be the portion of the principal amount of that larger obligation that relates to that part; and

    • (c) the amount for which that part was issued shall be considered to be the portion of the amount for which that larger obligation was issued that relates to that part.

  • Marginal note:Limitation respecting inclusions, deductions and tax credits

    (28) Unless a contrary intention is evident, no provision of this Act shall be read or construed

    • (a) to require the inclusion or permit the deduction, either directly or indirectly, in computing a taxpayer’s income, taxable income or taxable income earned in Canada, for a taxation year or in computing a taxpayer’s income or loss for a taxation year from a particular source or from sources in a particular place, of any amount to the extent that the amount has already been directly or indirectly included or deducted, as the case may be, in computing such income, taxable income, taxable income earned in Canada or loss, for the year or any preceding taxation year;

    • (b) to permit the deduction, either directly or indirectly, in computing a taxpayer’s tax payable under any Part of this Act for a taxation year of any amount to the extent that the amount has already been directly or indirectly deducted in computing such tax payable for the year or any preceding taxation year; or

    • (c) to consider an amount to have been paid on account of a taxpayer’s tax payable under any Part of this Act for a taxation year to the extent that the amount has already been considered to have been paid on account of such tax payable for the year or any preceding taxation year.

  • Marginal note:Farming or fishing business

    (29) For the purposes of subsection 40(1.1) and sections 70, 73 and 110.6, if at any time a person or partnership carries on a farming business and a fishing business, a property used at that time principally in a combination of the activities of the farming business and the fishing business is deemed to be used at that time principally in the course of carrying on a farming or fishing business.

  • Marginal note:Intention to give

    (30) The existence of an amount of an advantage in respect of a transfer of property does not in and by itself disqualify the transfer from being a gift to a qualified donee if

    • (a) the amount of the advantage does not exceed 80% of the fair market value of the transferred property; or

    • (b) the transferor of the property establishes to the satisfaction of the Minister that the transfer was made with the intention to make a gift.

  • Marginal note:Eligible amount of gift or monetary contribution

    (31) The eligible amount of a gift or monetary contribution is the amount by which the fair market value of the property that is the subject of the gift or monetary contribution exceeds the amount of the advantage, if any, in respect of the gift or monetary contribution.

  • Marginal note:Amount of advantage

    (32) The amount of the advantage in respect of a gift or monetary contribution by a taxpayer is the total of

    • (a) the total of all amounts, other than an amount referred to in paragraph (b), each of which is the value, at the time the gift or monetary contribution is made, of any property, service, compensation, use or other benefit that the taxpayer, or a person or partnership who does not deal at arm’s length with the taxpayer, has received, obtained or enjoyed, or is entitled, either immediately or in the future and either absolutely or contingently, to receive, obtain, or enjoy

      • (i) that is consideration for the gift or monetary contribution,

      • (ii) that is in gratitude for the gift or monetary contribution, or

      • (iii) that is in any other way related to the gift or monetary contribution, and

    • (b) the limited-recourse debt, determined under subsection 143.2(6.1), in respect of the gift or monetary contribution at the time the gift or monetary contribution is made.

  • Marginal note:Cost of property acquired by donor

    (33) The cost to a taxpayer of a property, acquired by the taxpayer in circumstances where subsection (32) applies to include the value of the property in computing the amount of the advantage in respect of a gift or monetary contribution, is equal to the fair market value of the property at the time the gift or monetary contribution is made.

  • Marginal note:Repayment of limited-recourse debt

    (34) If at any time in a taxation year a taxpayer has paid an amount (in this subsection referred to as the “repaid amount”) on account of the principal amount of an indebtedness which was, before that time, an unpaid principal amount that was a limited-recourse debt referred to in subsection 143.2(6.1) (in this subsection referred to as the “former limited-recourse debt”) in respect of a gift or monetary contribution (in this subsection referred to as the “original gift” or “original monetary contribution”, respectively, as the case may be) of the taxpayer (otherwise than by way of an assignment or transfer of a guarantee, security or similar indemnity or covenant, or by way of a payment in respect of which any taxpayer referred to in subsection 143.2(6.1) has incurred an indebtedness that would be a limited-recourse debt referred to in that subsection if that indebtedness were in respect of a gift or monetary contribution made at the time that that indebtedness was incurred), the following rules apply:

    • (a) if the former limited-recourse debt is in respect of the original gift, for the purposes of sections 110.1 and 118.1, the taxpayer is deemed to have made in the taxation year a gift to a qualified donee, the eligible amount of which deemed gift is the amount, if any, by which

      • (i) the amount that would have been the eligible amount of the original gift, if the total of all such repaid amounts paid at or before that time were paid immediately before the original gift was made,

      exceeds

      • (ii) the total of

        • (A) the eligible amount of the original gift, and

        • (B) the eligible amount of all other gifts deemed by this paragraph to have been made before that time in respect of the original gift; and

    • (b) if the former limited-recourse debt is in respect of the original monetary contribution, for the purposes of subsection 127(3), the taxpayer is deemed to have made in the taxation year a monetary contribution referred to in that subsection, the eligible amount of which is the amount, if any, by which

      • (i) the amount that would have been the eligible amount of the original monetary contribution, if the total of all such repaid amounts paid at or before that time were paid immediately before the original monetary contribution was made,

      exceeds

      • (ii) the total of

        • (A) the eligible amount of the original monetary contribution, and

        • (B) the eligible amount of all other monetary contributions deemed by this paragraph to have been made before that time in respect of the original monetary contribution.

  • Marginal note:Deemed fair market value

    (35) For the purposes of subsection (31), paragraph 69(1)(b) and subsections 110.1(2.1) and (3) and 118.1(5.4), (6) and (13.2), the fair market value of a property that is the subject of a gift made by a taxpayer to a qualified donee is deemed to be the lesser of the fair market value of the property otherwise determined and the cost or, in the case of capital property, the adjusted cost base or, in the case of a life insurance policy in respect of which the taxpayer is a policyholder, the adjusted cost basis (as defined in subsection 148(9)), of the property to the taxpayer immediately before the gift is made if

    • (a) the taxpayer acquired the property under a gifting arrangement that is a tax shelter as defined in subsection 237.1(1); or

    • (b) except where the gift is made as a consequence of the taxpayer’s death,

      • (i) the taxpayer acquired the property less than three years before the day that the gift is made, or

      • (ii) the taxpayer acquired the property less than 10 years before the day that the gift is made and it is reasonable to conclude that, at the time the taxpayer acquired the property, one of the main reasons for the acquisition was to make a gift of the property to a qualified donee.

  • Marginal note:Non-arm’s length transaction

    (36) If a taxpayer acquired a property, otherwise than by reason of the death of an individual, that is the subject of a gift to which subsection (35) applies because of subparagraph (35)(b)(i) or (ii) and the property was, at any time within the 3-year or 10-year period, respectively, that ends when the gift was made, acquired by a person or partnership with whom the taxpayer does not deal at arm’s length, for the purpose of applying subsection (35) to the taxpayer, the cost, or in the case of capital property, the adjusted cost base, of the property to the taxpayer immediately before the gift is made is deemed to be equal to the lowest amount that is the cost, or in the case of capital property, the adjusted cost base, to the taxpayer or any of those persons or partnerships immediately before the property was disposed of by that person or partnership.

  • Marginal note:Non-application of subsection (35)

    (37) Subsection (35) does not apply to a gift

    • (a) of inventory;

    • (b) of real property or an immovable situated in Canada;

    • (c) of an object referred to in subparagraph 39(1)(a)(i.1), other than an object acquired under a gifting arrangement (as defined in subsection 237.1(1)) that is a tax shelter;

    • (d) of property to which paragraph 38(a.1) or (a.2) applies;

    • (e) of a share of the capital stock of a corporation if

      • (i) the share was issued by the corporation to the donor,

      • (ii) immediately before the gift, the corporation was controlled by the donor, a person related to the donor or a group of persons each of whom is related to the donor, and

      • (iii) subsection (35) would not have applied in respect of the consideration for which the share was issued had that consideration been donated by the donor to the qualified donee when the share was so donated;

    • (f) by a corporation of property if

      • (i) the property was acquired by the corporation in circumstances to which subsection 85(1) or (2) applied,

      • (ii) immediately before the gift, the shareholder from whom the corporation acquired the property controlled the corporation or was related to a person or each member of a group of persons that controlled the corporation, and

      • (iii) subsection (35) would not have applied in respect of the property had the property not been transferred to the corporation and had the shareholder made the gift to the qualified donee when the corporation so made the gift; or

    • (g) of a property that was acquired in circumstances where subsection 70(6) or (9) or 73(1), (3) or (4) applied, unless subsection (36) would have applied if this subsection were read without reference to this paragraph.

  • Marginal note:Artificial transactions

    (38) The eligible amount of a particular gift of property by a taxpayer is nil if it can reasonably be concluded that the particular gift relates to a transaction or series of transactions

    • (a) one of the purposes of which is to avoid the application of subsection (35) to a gift of any property; or

    • (b) that would, if this Act were read without reference to this paragraph, result in a tax benefit to which subsection 245(2) applies.

  • Marginal note:Substantive gift

    (39) If a taxpayer disposes of a property (in this subsection referred to as the substantive gift) that is a capital property of the taxpayer, to a recipient that is a registered party, a registered association or a candidate, as those terms are defined in the Canada Elections Act, or that is a qualified donee, subsection (35) would have applied in respect of the substantive gift if it had been the subject of a gift by the taxpayer to a qualified donee, and all or a part of the proceeds of disposition of the substantive gift are (or are substituted, directly or indirectly in any manner whatever, for) property that is the subject of a gift or monetary contribution by the taxpayer to the recipient or any person dealing not at arm’s length with the recipient, the following rules apply:

    • (a) for the purpose of subsection (31), the fair market value of the property that is the subject of the gift or monetary contribution made by the taxpayer is deemed to be that proportion of the lesser of the fair market value of the substantive gift and the cost, or if the substantive gift is capital property of the taxpayer, the adjusted cost base, of the substantive gift to the taxpayer immediately before the disposition to the recipient, that the fair market value otherwise determined of the property that is the subject of the gift or monetary contribution is of the proceeds of disposition of the substantive gift; and

    • (b) if the substantive gift is capital property of the taxpayer, for the purpose of the definitions proceeds of disposition of property in subsection 13(21) and section 54, the sale price of the substantive gift is to be reduced by the amount by which the fair market value of the property that is the subject of the gift (determined without reference to this section) exceeds the fair market value determined under paragraph (a).

    • (c) [Repealed, 2016, c. 12, s. 63]

  • Marginal note:Inter-charity gifts

    (40) Subsection (30) does not apply in respect of a gift received by a qualified donee from a registered charity.

  • Marginal note:Information not provided

    (41) Notwithstanding subsection (31), the eligible amount of a gift or monetary contribution made by a taxpayer is nil if the taxpayer does not — before a receipt referred to in subsection 110.1(2), 118.1(2) or 127(3), as the case may be, is issued in respect of the gift or monetary contribution — inform the qualified donee or the recipient, as the case may be, of any circumstances in respect of which subsection (31), (35), (36), (38) or (39) requires that the eligible amount of the gift or monetary contribution be less than the fair market value, determined without reference to subsections (35), 110.1(3) and 118.1(6), of the property that is the subject of the gift or monetary contribution.

  • Marginal note:Synthetic equity arrangements — disaggregation

    (42) For the purposes of the definition synthetic equity arrangement in subsection (1), paragraphs (c) and (d) of the definition dividend rental arrangement in subsection (1) and subsections 112(2.31), (2.32) and (10), an arrangement that reflects the fair market value of more than one type of identical share (as defined in subsection 112(10)) is considered to be a separate arrangement with respect to each type of identical share the value of which the arrangement reflects.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 248
  • 1994, c. 7, Sch. II, s. 192, Sch. V, s. 90, Sch. VIII, ss. 139, c. 8, s. 32, c. 21, ss. 109, 138, c. 41, s. 37
  • 1995, c. 3, s. 52, c. 21, ss. 43, 47, 59, 65, 74
  • 1996, c. 21, s. 60
  • 1997, c. 25, s. 71
  • 1998, c. 19, ss. 66, 239
  • 1999, c. 22, s. 80
  • 2000, c. 12, ss. 139, 142, c. 19, s. 67
  • 2001, c. 17, ss. 188, 230
  • 2002, c. 9, s. 44
  • 2003, c. 15, s. 88, c. 28, s. 18
  • 2005, c. 30, s. 17
  • 2007, c. 2, s. 52, c. 29, s. 28, c. 35, ss. 65, 68, 123
  • 2008, c. 28, s. 34
  • 2009, c. 2, s. 76
  • 2010, c. 12, ss. 22, 2109, c. 25, s. 69
  • 2011, c. 24, s. 72
  • 2012, c. 31, s. 55
  • 2013, c. 34, ss. 167, 358, c. 40, s. 89
  • 2014, c. 13, s. 115, c. 20, s. 30, c. 39, s. 71
  • 2016, c. 7, s. 48, c. 11, s. 10, c. 12, s. 63
  • 2017, c. 33, s. 77
  • 2018, c. 12, s. 37
  • 2019, c. 29, s. 43
  • 2021, c. 23, s. 61

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