I-3 - Taxation Act

Section 113.7 Disposition versions

2020-09-24

113.7. In this section and sections 113.4 to 113.6,

“funder”, in respect of a funding arrangement, means

(a)  if the funding arrangement is described in paragraph a of the definition of that expression, the immediate funder;

(b)  if the funding arrangement is described in paragraph b of the definition of that expression, the creditor in respect of the debt or other obligation or the grantor of the specified right, as the case may be; or

(c)  a person or partnership who does not deal at arm’s length with a person or partnership referred to in paragraph a or b;

“funding arrangement” means

(a)  the shareholder debt; and

(b)  each debt or other obligation or specified right, owing by or granted to a funder, in respect of a particular funding arrangement, if the conditions of subparagraph i or ii, as the case may be, of subparagraph b of the second paragraph of section 113.4 are met in respect of the debt or other obligation or specified right;

“specified right” has the meaning assigned by subparagraph b.5.1 of the first paragraph of section 172, with the necessary modifications;

“ultimate funder” means a funder whose substitution to the immediate funder as creditor of the shareholder debt would result in the application of section 113 in respect of the shareholder debt.

2020, c. 16, s. 36.