I-3 - Taxation Act

Section 159 Disposition versions

2010-04-20

159. In this subdivision,

“Canadian citizen” includes the following persons and entities:

(a)  a corporation or trust described in paragraph c.1 or d of section 998 formed in connection with a pension plan that exists for the benefit of individuals a majority of whom are Canadian citizens;

(b)  a trust described in paragraph h or i.1 of section 998 the annuitant in respect of which is a Canadian citizen;

(c)  a mutual fund trust, other than a mutual fund trust the majority of the units of which are held by citizens or subjects of a country other than Canada;

(d)  a trust, each beneficiary of which is a person, partnership, association or society described in any of paragraphs a to e of the definition of “Canadian newspaper” ; and

(e)  an association, society or person described in paragraph c or d of the definition of “Canadian newspaper” ;

“Canadian issue” of a newspaper means an issue, including a special issue, that is typeset, printed and published in Canada and that is edited in Canada by individuals resident in Canada;

“Canadian newspaper” means a newspaper the exclusive right to produce and publish issues of which is held by one or more of the following persons or entities:

(a)  a Canadian citizen;

(b)  a partnership in which interests representing in value at least 3/4 of the total value of the partnership property are beneficially owned by one or more corporations described in paragraph e, one or more Canadian citizens or any combination thereof, and at least 3/4 of each income or loss of the partnership from any source is included in computing the income of one or more of those persons;

(c)  an association or society of which at least 3/4 of the members are Canadian citizens;

(d)  the State, Her Majesty in right of Canada or a province, other than Québec, or a municipality in Canada;

(e)  a corporation that is incorporated under the laws of Canada or a province of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens and that, if it is a corporation having capital stock, is

i.  a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange located in Canada other than a corporation controlled by citizens or subjects of a country other than Canada, or

ii.  a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange located in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada;

“United States” means

(a)  the United States of America, but does not include Puerto Rico, the Virgin Islands, Guam or any other United States territory or possession; and

(b)  any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic laws, the United States may exercise rights with respect to the sea-bed and subsoil and the natural resources of those areas.

For the purposes of the definition of “Canadian issue” in the first paragraph, a newspaper issue is a Canadian issue of that newspaper even if the type for the advertisements and features is not set in Canada and if the comics supplements of that issue are not printed in Canada.

For the purposes of subparagraph ii of paragraph e of the definition of “Canadian newspaper” in the first paragraph, the following rules apply:

(a)  where shares of a class of the capital stock of a corporation are owned, or deemed under this paragraph to be owned, at any time by another corporation, other than a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange located in Canada, each shareholder of that other corporation shall be deemed to own at that time that proportion of the number of such shares of that class that the fair market value of the shares of the capital stock of the other corporation owned at that time by the shareholder is of the fair market value of all the issued shares of the capital stock of the other corporation outstanding at that time; and

(b)  where at any time shares of a class of the capital stock of a corporation are owned, or deemed under this paragraph to be owned, by a partnership, each member of the partnership shall be deemed to own at that time the least proportion of the number of such shares of that class that the member’s share of the income or loss of the partnership from any source for its fiscal period that includes that time is of the income or loss of the partnership from that source for its fiscal period that includes that time.

For the purposes of subparagraph b of the third paragraph, where the income and loss of a partnership from any source for a fiscal period are nil, the partnership shall be deemed to have had income from that source for that fiscal period in the amount of $1,000,000.

1972, c. 23, s. 147; 1977, c. 26, s. 17; 1997, c. 31, s. 19; 2003, c. 2, s. 54; 2010, c. 5, s. 22.

2006-03-01

159. In this subdivision,

“Canadian citizen” includes the following persons and entities:

(a)  a corporation or trust described in paragraph c.1 or d of section 998 formed in connection with a pension plan that exists for the benefit of individuals a majority of whom are Canadian citizens;

(b)  a trust described in paragraph h or i.1 of section 998 the annuitant in respect of which is a Canadian citizen;

(c)  a mutual fund trust, other than a mutual fund trust the majority of the units of which are held by citizens or subjects of a country other than Canada;

(d)  a trust, each beneficiary of which is a person, partnership, association or society described in any of paragraphs a to e of the definition of “Canadian newspaper” ; and

(e)  an association, society or person described in paragraph c or d of the definition of “Canadian newspaper” ;

“Canadian issue” of a newspaper means an issue, including a special issue, that is typeset, printed and published in Canada and that is edited in Canada by individuals resident in Canada;

“Canadian newspaper” means a newspaper the exclusive right to produce and publish issues of which is held by one or more of the following persons or entities:

(a)  a Canadian citizen;

(b)  a partnership in which interests representing in value at least 3/4 of the total value of the partnership property are beneficially owned by one or more corporations described in paragraph e, one or more Canadian citizens or any combination thereof, and at least 3/4 of each income or loss of the partnership from any source is included in computing the income of one or more of those persons;

(c)  an association or society of which at least 3/4 of the members are Canadian citizens;

(d)  the State, Her Majesty in right of Canada or a province, other than Québec, or a municipality in Canada;

(e)  a corporation that is incorporated under the laws of Canada or a province of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens and that, if it is a corporation having capital stock, is

i.  a public corporation a class or classes of shares of the capital stock of which are listed on a Canadian stock exchange other than a corporation controlled by citizens or subjects of a country other than Canada, or

ii.  a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a Canadian stock exchange, other than a public corporation controlled by citizens or subjects of a country other than Canada;

“United States” means

(a)  the United States of America, but does not include Puerto Rico, the Virgin Islands, Guam or any other United States territory or possession; and

(b)  any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic laws, the United States may exercise rights with respect to the sea-bed and subsoil and the natural resources of those areas.

For the purposes of the definition of “Canadian issue” in the first paragraph, a newspaper issue is a Canadian issue of that newspaper even if the type for the advertisements and features is not set in Canada and if the comics supplements of that issue are not printed in Canada.

For the purposes of subparagraph ii of paragraph e of the definition of “Canadian newspaper” in the first paragraph, the following rules apply:

(a)  where shares of a class of the capital stock of a corporation are owned, or deemed under this paragraph to be owned, at any time by another corporation, other than a public corporation a class or classes of shares of the capital stock of which are listed on a Canadian stock exchange, each shareholder of that other corporation shall be deemed to own at that time that proportion of the number of such shares of that class that the fair market value of the shares of the capital stock of the other corporation owned at that time by the shareholder is of the fair market value of all the issued shares of the capital stock of the other corporation outstanding at that time; and

(b)  where at any time shares of a class of the capital stock of a corporation are owned, or deemed under this paragraph to be owned, by a partnership, each member of the partnership shall be deemed to own at that time the least proportion of the number of such shares of that class that the member’s share of the income or loss of the partnership from any source for its fiscal period that includes that time is of the income or loss of the partnership from that source for its fiscal period that includes that time.

For the purposes of subparagraph b of the third paragraph, where the income and loss of a partnership from any source for a fiscal period are nil, the partnership shall be deemed to have had income from that source for that fiscal period in the amount of $1,000,000.

1972, c. 23, s. 147; 1977, c. 26, s. 17; 1997, c. 31, s. 19; 2003, c. 2, s. 54.