I-3 - Taxation Act

Section 572.2.3 Disposition versions

2021-06-02

572.2.3. Where section 572.2.2 does not apply in respect of a foreign affiliate of a taxpayer for a taxation year of the affiliate, the affiliate is deemed to be a controlled foreign affiliate of the taxpayer throughout the year if, at a particular time in the year, a tracking interest in respect of the foreign affiliate or a partnership of which the foreign affiliate is a member is held by

(a)  the taxpayer; or

(b)  a person or partnership (in this paragraph referred to as a “holder”), if

i.  the holder does not deal at arm’s length with the taxpayer at the particular time,

ii.  where either the taxpayer or the holder is a partnership and the other party is not, any member of the partnership does not deal at arm’s length with the other party at the particular time, or

iii.  where both the taxpayer and the holder are partnerships, the taxpayer or any member of the taxpayer does not deal at arm’s length with the holder or any member of the holder at the particular time.

2021, c. 14, s. 46.