I-3 - Taxation Act

Section 170 Disposition versions

2015-10-26

170. The proportion to which section 169 refers is the proportion that the amount described in the second paragraph is of the average (in this section referred to as the “average outstanding debts”) of all amounts each of which is, in respect of a month that ends in the year, the greatest amount at any time in the month of the corporation’s or trust’s outstanding debts to specified persons not resident in Canada.

The amount to which the first paragraph refers is equal to the amount by which the corporation’s or trust’s average outstanding debts for the year exceeds the amount equal to 150% of the corporation’s or trust’s equity amount for the year.

1972, c. 23, s. 158; 1997, c. 3, s. 71; 2003, c. 2, s. 56; 2015, c. 21, s. 131; 2015, c. 24, s. 34.

2015-10-21

170. The proportion to which section169 refers is the proportion that the amount referred to in the second paragraph is of the average, in this section referred to as the “average outstanding debts”, of all amounts each of which is, in respect of a month that ends in the year, the greatest amount at any time in the month of the corporation’s outstanding debts to specified persons not resident in Canada.

The amount to which the first paragraph refers is equal to the amount by which the corporation’s average outstanding debts for the year exceeds the amount equal to 150% of the total of

(a)  The amount to which the first paragraph refers is equal to the amount by which the corporation’s average outstanding debts for the year exceeds the amount equal to 150% of the total of

(b)  the average of all amounts each of which is the corporation’s contributed surplus (other than any portion of that contributed surplus that arose in connection with an investment to which subsection 2 of section 212.3 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.) applies) at the beginning of a month that ends in the year, to the extent that it was contributed by a specified shareholder not resident in Canada of the corporation; and

(c)  the average of all amounts each of which is the corporation’s paid-up capital at the beginning of a month that ends in the year, excluding the paid-up capital in respect of shares of any class of the capital stock of the corporation owned by a person other than a specified shareholder not resident in Canada of the corporation.

1972, c. 23, s. 158; 1997, c. 3, s. 71; 2003, c. 2, s. 56; 2015, c. 21, s. 131.

2006-03-01

170. The proportion to which section 169 refers is the proportion that the amount referred to in the second paragraph is of the average, in this section referred to as the “average outstanding debts”, of all amounts each of which is, in respect of a month that ends in the year, the greatest amount at any time in the month of the corporation’s outstanding debts to specified persons not resident in Canada.

The amount to which the first paragraph refers is equal to the amount by which the corporation’s average outstanding debts for the year exceeds the amount equal to twice the total of

(a)  the retained earnings of the corporation at the beginning of the year, except to the extent that those earnings include retained earnings of any other corporation;

(b)  the average of all amounts each of which is the corporation’s contributed surplus at the beginning of a month that ends in the year, to the extent that it was contributed by a specified shareholder not resident in Canada of the corporation; and

(c)  the average of all amounts each of which is the corporation’s paid-up capital at the beginning of a month that ends in the year, excluding the paid-up capital in respect of shares of any class of the capital stock of the corporation owned by a person other than a specified shareholder not resident in Canada of the corporation.

1972, c. 23, s. 158; 1997, c. 3, s. 71; 2003, c. 2, s. 56.