I-3 - Taxation Act

Section 11.1.1.4 Disposition versions

2017-02-08

11.1.1.4. For the purposes of sections 11.1.1 to 11.1.1.5,

“eligible entity”, for a taxation year, means

(a)  a corporation that is deemed under section 11.1.1 to be resident in a country other than Canada for the year; or

(b)  a partnership or trust, if

i.  it satisfies the conditions in subparagraph i or ii of paragraph a of section 11.1.1, and

ii.  all or substantially all its gross revenue for the year consists of an amount described in any of subparagraphs i to iii of paragraph b of section 11.1.1;

“eligible interest” means

(a)  in relation to a corporation, shares of the capital stock of the corporation that

i.  give the holders of those shares not less than 25% of the votes that could be cast at an annual meeting of the shareholders of the corporation, and

ii.  have a fair market value that is not less than 25% of the fair market value of all the issued and outstanding shares of the capital stock of the corporation;

(b)  in relation to a trust, an interest as a beneficiary under the trust with a fair market value that is not less than 25% of the fair market value of all the interests as a beneficiary under the trust; and

(c)  in relation to a partnership, an interest as a member of the partnership with a fair market value that is not less than 25% of the fair market value of the interests of all members in the partnership.

2017, c. 1, s. 71.