I-3 - Taxation Act

Section 576.2 Disposition versions

2020-09-24

576.2. In this chapter,

“eligible bank affiliate” has the meaning assigned by subsection 15 of section 90 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.));

“eligible Canadian bank” has the meaning assigned by subsection 15 of section 90 of the Income Tax Act;

“specified amount” in respect of a loan or indebtedness that is required by section 577.5 to be included in computing the income of a taxpayer for a taxation year means an amount equal to the amount that is required by subsection 6 of section 90 of the Income Tax Act to be included in computing the income of the taxpayer for the year, in respect of the loan or indebtedness;

“specified debtor” at any time, in respect of a taxpayer resident in Canada, means

(a)  the taxpayer;

(b)  a person with which the taxpayer does not, at that time, deal at arm’s length, other than

i.  a corporation not resident in Canada that is, at that time, a controlled foreign affiliate, within the meaning of section 127.1, of the taxpayer, or

ii.  a corporation not resident in Canada (other than a corporation described in subparagraph i) that is, at that time, a foreign affiliate of the taxpayer, if each share of the capital stock of the affiliate is owned at that time by any of

(1)  the taxpayer,

(2)  a person resident in Canada,

(3)  a person not resident in Canada that deals at arm’s length with the taxpayer,

(4)  a person described in subparagraph i,

(5)  a partnership each member of which is a partnership described in this subparagraph 5 or a person described in any of subparagraphs 1 to 4 and 6, and

(6)  a corporation each shareholder of which is a partnership described in subparagraph 5 or a person described in any of subparagraphs 1 to 4 or in this subparagraph 6;

(c)  a partnership a member of which is, at that time, a person or partnership that is a specified debtor in respect of the taxpayer because of paragraph a or b; and

(d)  if the taxpayer is a partnership,

i.  any member of the partnership that is a corporation resident in Canada if the creditor affiliate or a member of the creditor partnership, as the case may be, within the meaning assigned to those expressions in section 577.5, is, at that time, a foreign affiliate of the corporation,

ii.  a person with which a corporation referred to in subparagraph i does not, at that time, deal at arm’s length, other than a controlled foreign affiliate, within the meaning of section 127.1, of the partnership or of a member of the partnership that holds, directly or indirectly, an interest in the partnership representing at least 90% of the fair market value of all such interests, or

iii.  a partnership a member of which is, at that time, a specified debtor in respect of the taxpayer because of subparagraph i or ii;

“upstream deposit” has the meaning assigned by subsection 15 of section 90 of the Income Tax Act.

2015, c. 21, s. 190; 2017, c. 1, s. 139; 2020, c. 16, s. 81.

2017-02-08

576.2. In this chapter,

“eligible bank affiliate” has the meaning assigned by subsection 15 of section 90 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.));

“eligible Canadian bank” has the meaning assigned by subsection 15 of section 90 of the Income Tax Act;

“specified amount” in respect of a loan or indebtedness that is required by section 577.5 to be included in computing the income of a taxpayer for a taxation year means an amount equal to the amount that is required by subsection 6 of section 90 of the Income Tax Act to be included in computing the income of the taxpayer for the year, in respect of the loan or indebtedness;

“specified debtor” at any time, in respect of a taxpayer resident in Canada, means

(a)  the taxpayer;

(b)  a person with which the taxpayer does not, at that time, deal at arm’s length, other than a corporation not resident in Canada that is, at that time, a controlled foreign affiliate, within the meaning of section 127.1, of the taxpayer;

(c)  a partnership a member of which is, at that time, a person or partnership that is a specified debtor in respect of the taxpayer because of paragraph a or b; and

(d)  if the taxpayer is a partnership,

i.  any member of the partnership that is a corporation resident in Canada if the creditor affiliate or a member of the creditor partnership, as the case may be, within the meaning assigned to those expressions in section 577.5, is, at that time, a foreign affiliate of the corporation,

ii.  a person with which a corporation referred to in subparagraph i does not, at that time, deal at arm’s length, other than a controlled foreign affiliate, within the meaning of section 127.1, of the partnership or of a member of the partnership that holds, directly or indirectly, an interest in the partnership representing at least 90% of the fair market value of all such interests, or

iii.  a partnership a member of which is, at that time, a specified debtor in respect of the taxpayer because of subparagraph i or ii;

“upstream deposit” has the meaning assigned by subsection 15 of section 90 of the Income Tax Act.

2015, c. 21, s. 190; 2017, c. 1, s. 139.

2015-10-21

576.2. In this chapter,

“specified amount” in respect of a loan or indebtedness that is required by section 577.5 to be included in computing the income of a taxpayer for a taxation year means an amount equal to the amount that is required by subsection 6 of section 90 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) to be included in computing the income of the taxpayer for the year, in respect of the loan or indebtedness;

“specified debtor” at any time, in respect of a taxpayer resident in Canada, means

(a)  the taxpayer;

(b)  a person with which the taxpayer does not, at that time, deal at arm’s length, other than a corporation not resident in Canada that is, at that time, a controlled foreign affiliate, within the meaning of section 127.1, of the taxpayer;

(c)  a partnership a member of which is, at that time, a person or partnership that is a specified debtor in respect of the taxpayer because of paragraph a or b; and

(d)  if the taxpayer is a partnership,

i.  any member of the partnership that is a corporation resident in Canada if the creditor affiliate or a member of the creditor partnership, as the case may be, within the meaning assigned to those expressions in section 577.5, is, at that time, a foreign affiliate of the corporation,

ii.  a person with which a corporation referred to in subparagraph i does not, at that time, deal at arm’s length, other than a controlled foreign affiliate, within the meaning of section 127.1, of the partnership or of a member of the partnership that holds, directly or indirectly, an interest in the partnership representing at least 90% of the fair market value of all such interests, or

iii.  a partnership a member of which is, at that time, a specified debtor in respect of the taxpayer because of subparagraph i or ii.

2015, c. 21, s. 190.