C.R.C., c. 94520259
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INCOME TAX ACTIncome Tax RegulationsIncome Tax Regulations[Note: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.]Short Title
These Regulations may be cited as the Income Tax Regulations.
Interpretation
In these Regulations, Act means the Income Tax Act.
Tax DeductionsInterpretation
In this Part and in Schedule I,employee means any person receiving remuneration; (employé)employer means any person paying remuneration; (employeur)estimated deductions means, in respect of a taxation year, the total of the amounts estimated to be deductible by an employee for the year under any of paragraphs 8(1)(f), (h), (h.1), (i) and (j) of the Act and determined by the employee for the purpose of completing the form referred to in subsection 107(2); (déductions estimatives)exemptions[Repealed, SOR/89-508, s. 1]pay period includesa day,a week,a two week period,a semi-monthly period,a month,a four week period,one tenth of a calendar year, orone twenty-second of a calendar year; (période de paie)personal credits means, in respect of a particular taxation year, the greater ofthe amount referred to in paragraph 118(1)(c) of the Act, andthe aggregate of the credits which the employee would be entitled to claim for the year undersubsections 118(1), (2) and (3) of the Act if the description of A in those subsections were read as “is equal to one”,subsections 118.3(1) and (2) of the Act if the description of A in subsection 118.3(1) of the Act were read as “is equal to one” and if subsection 118.3(1) of the Act were read without reference to paragraph (c) thereof,subsections 118.5(1) and 118.6(2) of the Act if subsection 118.5(1) of the Act were read without reference to “the product obtained when the appropriate percentage for the year is multiplied by” and the description of A in subsection 118.6(2) of the Act were read as “is equal to one”, and after deducting from the aggregate of the amounts determined under those subsections the excess over $3,000 of the aggregate of amounts that the employee claims to expect to receive in the year on account of a scholarship, fellowship or bursary,section 118.8 of the Act if the formula A + B - C in that section were read as(A + B) / CwhereAis the value of A in that section,Bis the value of B in that section, andCis the appropriate percentage for the year,section 118.9 of the Act if the formula A - B in section 118.81 of the Act were read asA / BwhereAis the value of A set out in that section, andBis the appropriate percentage for the year. (crédits d’impôts personnels)remuneration includes any payment that isin respect ofsalary or wages, orcommissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated (referred to as commissions in this Part)paid to an officer or employee or former officer or employee,in respect of an employee’s gratuities required under provincial legislation to be declared to the employee’s employer,a superannuation or pension benefit (including an annuity payment made pursuant to or under a superannuation or pension fund or plan) other than a distributionthat is made from a pooled registered pension plan and is not required to be included in computing a taxpayer’s income under paragraph 56(1)(z.3) of the Act, orthat subsection 147.5(14) of the Act deems to have been made,an amount of a distribution out of or under a retirement compensation arrangement,a retiring allowance,a death benefit,a benefit under a supplementary unemployment benefit plan,a payment under a deferred profit sharing plan or a plan referred to in section 147 of the Act as a revoked plan, reduced, if applicable, by amounts determined under subsections 147(10.1), (11) and (12) of the Act,a benefit under the Employment Insurance Act,an amount that is required by paragraph 56(1)(a.3) of the Act to be included in computing a taxpayer’s income,an amount that is required by paragraph 56(1)(r) of the Act to be included in computing a taxpayer’s income, except the portion of the amount that relates to child care expenses and tuition costs,an amount that is required by paragraph 56(1)(z.2) of the Act to be included in computing a taxpayer’s income,a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of that annuitant, other thana periodic annuity payment, ora payment made by a person who has reasonable grounds to believe that the payment may be deducted under subsection 146(8.2) of the Act in computing the income of any taxpayer,a payment out of or under a plan referred to in subsection 146(12) of the Act as an amended plan other thana periodic annuity payment, orwhere paragraph 146(12)(a) of the Act applied to the plan after May 25, 1976, a payment made in a year subsequent to the year in which that paragraph applied to the plan,a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146.3(1) of the Act under a registered retirement income fund of that annuitant, other than a particular payment to the extent thatthe particular payment is in respect of the minimum amount (in this paragraph having the meaning assigned by subsection 146.3(1) of the Act) under the fund for a year, orwhere the fund governs a trust, the particular payment would be in respect of the minimum amount under the fund for a year if each amount that, at the beginning of the year, is scheduled to be paid after the time of the particular payment and in the year to the trust under an annuity contract that is held by the trust both at the beginning of the year and at the time of the particular payment, is paid to the trust in the year,a benefit described in section 5502,an amount as, on account or in lieu of payment of, or in satisfaction of, proceeds of the surrender, cancellation or redemption of an income-averaging annuity contract,in respect of an amount that can reasonably be regarded as having been received, in whole or in part, as consideration or partial consideration for entering into a contract of service, where the service is to be performed in Canada, or for an undertaking not to enter into such a contract with another party,a payment out of a registered education savings plan other thana refund of payments,an educational assistance payment, oran amount, up to $50,000, of an accumulated income payment that is made to a subscriber, as defined in subsection 204.94(1) of the Act, or if there is no subscriber at that time, that is made to a person that has been a spouse or common-law partner of an individual who was a subscriber, ifthat amount is transferred to an RRSP in which the annuitant is either the recipient of the payment or the recipient’s spouse or common-law partner, andit is reasonable for the person making the payment to believe that that amount is deductible for the year by the recipient of the payment within the limits provided for in subsection 146(5) or (5.1) of the Act,an amount of a disability assistance payment made under a registered disability savings plan that is required by paragraph 56(1)(q.1) of the Act to be included in computing a taxpayer’s income,an amount that is required by paragraph 56(1)(z.5) of the Act to be included in computing a taxpayer’s income,a payment described in paragraph 153(1)(v) of the Act, oran amount that is required by subparagraph 56(1)(a)(viii) of the Act to be included in computing the taxpayer’s income; (rémunération)total remuneration means, in respect of a taxation year, the total of all amounts each of which is an amount referred to in paragraph (a) or (a.1) of the definition remuneration. (rémunération totale)Where the amount of any credit referred to in paragraph (a) or (b) of the definition personal credits in subsection (1) is subject to an annual adjustment under section 117.1 of the Act, such amount shall, in a particular taxation year, be subject to that annual adjustment.For the purposes of this Part, where an employer deducts or withholds from a payment of remuneration to an employee one or more of the following amounts, the balance remaining after the deducting or withholding of the amount or amounts shall be deemed to be the amount of that payment of remuneration:a contribution to or under a pooled registered pension plan, a registered pension plan or a specified pension plan,dues described in subparagraph 8(1)(i)(iv), (v) or (vi) of the Act paid on account of the employee,a contribution by the employee under subparagraph 8(1)(m.2) of the Act,a premium under a registered retirement savings plan, to the extent that the employer believes on reasonable grounds that the premium is deductible under paragraph 60(j.1) or subsection 146(5) or (5.1) of the Act in computing the employee’s income for the taxation year in which the payment of remuneration is made,a contribution to or under a FHSA, to the extent that the employer believes on reasonable grounds that the contribution is deductible under subsection 146.6(5) of the Act in computing the employee’s income for the taxation year in which the payment of remuneration is made,an amount that is deductible under paragraph 60(b) of the Act,an amount that is deductible under paragraph 60(e.1) of the Act, oran amount that is deductible under paragraph 60(l) of the Act.For the purposes of this Part, where an employee has claimed a deduction for a taxation year under paragraph 110.7(1)(b) of the Act as shown on the return most recently filed by the employee with the employee’s employer pursuant to subsection 227(2) of the Act, the amount of remuneration otherwise determined, including the amount deemed by subsection (3) to be the amount of that payment of remuneration, paid to the employee for a pay period shall be reduced by an amount equal to the amount of the deduction divided by the maximum number of pay periods in the year in respect of the appropriate pay period.[Repealed, SOR/2001-209, s. 1]For the purposes of this Part, where an employee is not required to report for work at any establishment of the employer, he shall be deemed to report for workin respect of remuneration that is salary, wages or commissions, at the establishment of the employer from which the remuneration is paid; orin respect of remuneration other than salary, wages or commissions, at the establishment of the employer in the province where the employee resides at the time the remuneration is paid but, if the employer does not have an establishment in that province at that time, he shall, for the purposes of this paragraph, be deemed to have an establishment in that province.For the purposes of this Part, where an employer deducts or withholds from a payment of remuneration to an employee an amount in respect of the acquisition by the employee of an approved share, as defined in subsection 127.4(1) of the Act, there shall be deducted from the amount determined under paragraph 102(1)(e) or (2)(e), as the case may be, in respect of that payment the lesser of$750, and15% of the amount deducted or withheld in respect of the acquisition of an approved share.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-2, s. 1; SOR/78-331, s. 1; SOR/80-382, s. 1; SOR/80-502, s. 1; SOR/80-683, s. 1; SOR/80-901, s. 1; SOR/80-941, s. 1; SOR/81-471, s. 1; SOR/83-349, s. 1; SOR/83-692, s. 1; SOR/86-629, s. 1; SOR/87-471, s. 1; SOR/87-638, s. 1; SOR/88-312, s. 1; SOR/89-147, s. 1; SOR/89-508, s. 1; SOR/92-51, ss. 1, 8; SOR/94-238, s. 1; SOR/95-298, s. 1; SOR/97-470, s. 1; SOR/98-259, s. 1; SOR/99-17, s. 1; SOR/99-22, s. 1; SOR/2000-63, s. 1; SOR/2001-188, s. 14; SOR/2001-209, s. 1; SOR/2001-216, s. 10(F); SOR/2001-221, s. 1; SOR/2005-185, s. 1; 2012, c. 27, s. 30, c. 31, s. 58; SOR/2016-30, s. 12021, c. 23, s. 812022, c. 19, s. 70SOR/2022-42, s. 12024, c. 17, s. 77SOR/2024-231, s. 1
Deductions and Remittances
Every person who makes a payment described in subsection 153(1) of the Act in a taxation year shall deduct or withhold therefrom, and remit to the Receiver General, such amount, if any, as is determined in accordance with rules prescribed in this Part.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-471, s. 2
Periodic Payments
Except as otherwise provided in this Part, the amount to be deducted or withheld by an employerfrom any payment of remuneration (in this subsection referred to as the payment) made to an employee in his taxation year where he reports for work at an establishment of the employer in a province, in Canada beyond the limits of any province or outside Canada, andfor any pay period in which the payment is made by the employershall be determined for each payment in accordance with the following rules:an amount that is a notional remuneration for the year in respect ofa payment to the employee, andthe amount, if any, of gratuities referred to in paragraph (a.1) of the definition remuneration in subsection 100(1)is deemed to be the amount determined by the formulaA × BwhereAis the amount that is deemed for the purpose of this paragraph to be the mid-point of the applicable range of remuneration for the pay period, as provided in Schedule I, in which falls the total ofthe payment referred to in subparagraph (i) made in the pay period, andthe amount of gratuities referred to in subparagraph (ii) declared by the employee for the pay period, andBis the maximum number of such pay periods in that year;if the employee is not resident in Canada at the time of the payment, no personal credits will be allowed for the purposes of this subsection and, if the employee is resident in Canada at the time of the payment, the employee’s personal credits for the year are deemed to be the mid-point of the range of amounts of personal credits for a taxation year as provided for in section 2 of Schedule I;an amount (in this subsection referred to as the notional tax for the year) shall be computed in respect of that employee bycalculating the amount of tax payable for the year, as if that amount were calculated under subsection 117(2) of the Act and adjusted annually pursuant to section 117.1 of the Act, on the amount determined in accordance with paragraph (c) as if that amount represented the employee’s amount taxable for that year,and deducting the aggregate ofthe amount determined in accordance with paragraph (d) multiplied by the appropriate percentage for the year,an amount equal tothe amount determined in accordance with paragraph (c) multiplied by the employee’s premium rate for the year under the Employment Insurance Act, not exceeding the maximum amount of the premiums payable by the employee for the year under that Act,multiplied bythe appropriate percentage for the year, andan amount equal tothe product obtained when the difference between the amount determined in accordance with paragraph (c) and the amount determined under section 20 of the Canada Pension Plan for the year is multiplied by the employee’s contribution rate for the year under the Canada Pension Plan or under a provincial pension plan as defined in subsection 3(1) of that Act, not exceeding the maximum amount of such contributions payable by the employee for the year under the plan,multiplied bythe appropriate percentage for the year;the amount determined in accordance with paragraph (e) shall be increased by, where applicable, the tax as determined under subsection 120(1) of the Act;where the amount of notional remuneration for the year is income earned in the Province of Quebec, the amount determined in accordance with paragraph (e) shall be reduced by an amount that is the aggregate ofthe amount that is deemed to be paid under subsection 120(2) of the Act as if there were no other source of income or loss for the year, andthe amount by which the amount referred to in subparagraph (i) is increased by virtue of section 27 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act; and[Repealed, SOR/92-667, s. 1]the amount to be deducted or withheld shall be computed bydividing the amount of the notional tax for the year by the maximum number of pay periods for the year in respect of the appropriate pay period, androunding the amount determined under subparagraph (i) to the nearest multiple of five cents or, if such amount is equidistant from two such multiples, to the higher multiple.Where an employee has elected pursuant to subsection 107(2) and has not revoked such election, the amount to be deducted or withheld by the employer from any payment of remuneration (in this subsection referred to as the payment) that isa payment in respect of commissions or is a combined payment of commissions and salary or wages, ora payment in respect of salary or wages where that employee receives a combined payment of commissions and salary or wages,made to that employee in his taxation year where he reports for work at an establishment of the employer in a province, in Canada beyond the limits of any province or outside Canada, shall be determined for each payment in accordance with the following rules:an employee’s estimated annual taxable income shall be determined by using the formulaA - BwhereAis the amount of that employee’s total remuneration in respect of the year as recorded by the employee on the form referred to in subsection 107(2), andBis the amount of that employee’s expenses in respect of the year as recorded by that employee on that form;if the employee is not resident in Canada at the time of the payment, no personal credits will be allowed for the purposes of this subsection and if the employee is resident in Canada at the time of the payment, the employee’s personal credits for the year shall be the total claim amount as recorded by that employee on the return for the year referred to in subsection 107(1);an amount (in this subsection referred to as the notional tax for the year) shall be calculated in respect of that employee by using the formulaC - [(D + E + F) × G] + H - IwhereCis the amount of tax payable for the year, calculated as if that amount of tax were computed under subsection 117(2) of the Act and adjusted annually pursuant to section 117.1 of the Act, on the amount determined under paragraph (c) as if that amount represented the employee’s amount taxable for that year,Dis the amount determined in accordance with paragraph (d),Eis the amount determined in the description of A in paragraph (c) multiplied by the employee’s premium rate for the year under the Employment Insurance Act, not exceeding the maximum amount of the premiums payable by the employee for the year under that Act,Fis the amount determined in the description of A in paragraph (c) less the amount for the year determined under section 20 of the Canada Pension Plan multiplied by the employee’s contribution rate for the year under that Act or under a provincial pension plan as defined in section 3 of that Act, not exceeding the maximum amount of such contributions payable by the employee for the year under the plan,Gis the appropriate percentage for the year,His, where applicable, the tax as determined under subsection 120(1) of the Act,Iis, where the amount of total remuneration for the year is income earned in the Province of Quebec, an amount equal to the aggregate ofthe amount that would be deemed to have been paid under subsection 120(2) of the Act with respect to the employee if the notional tax for the year for the employee were determined without reference to the elements H, I and J in this formula and if that tax were that employee’s tax payable under Part I of the Act for that year, as if there were no other source of income or loss for the year, andthe amount by which the amount referred to in subparagraph (i) is increased by virtue of section 27 of the Federal-Provincial Fiscal Arrangements Act;the employee’s notional rate of tax for a year is calculated by dividing the amount determined under paragraph (e) by the amount referred to in the description of A in paragraph (c) in respect of that employee and expressed as a decimal fraction rounded to the nearest hundredth, or where the third digit is equidistant from two consecutive one-thousandths, to the higher thereof;the amount to be deducted or withheld in respect of any payment made to that employee shall be determined by multiplying the payment by the appropriate decimal fraction determined pursuant to paragraph (f).[Repealed, SOR/2001-221, s. 2][Repealed, SOR/89-508, s. 2][Repealed, SOR/81-471, s. 3]Notwithstanding subsections (1) and (2), no amount shall be deducted or withheld in the year by an employer from a payment of remuneration to an employee in respect of commissions earned by the employee in the immediately preceding year where those commissions were previously reported by the employer as remuneration of the employee in respect of that year on an information return.Despite subsection (1), no amount shall be deducted or withheld in the year by an employer from an amount determined in accordance with subparagraph 110(1)(f)(iii), (iv) or (v) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-331, s. 2; SOR/78-449, s. 1; SOR/78-625, s. 1; SOR/79-359, s. 1; SOR/79-694, s. 1; SOR/80-187, s. 1; SOR/80-683, s. 2; SOR/80-941, s. 2; SOR/81-471, s. 3; SOR/83-349, s. 2; SOR/83-692, ss. 2 to 4; SOR/84-913, s. 1; SOR/84-966, s. 1; SOR/85-453, ss. 1, 2; SOR/86-629, s. 2; SOR/87-471, s. 2; SOR/88-310, s. 1; SOR/89-508, s. 2; SOR/90-161, s. 1; SOR/91-150, s. 1; SOR/91-279, s. 1; SOR/91-536, s. 1; SOR/92-138, s. 1; SOR/92-667, s. 1; SOR/94-238, s. 2; SOR/94-569, s. 1; SOR/98-259, s. 2; SOR/99-17, s. 2; SOR/2001-221, s. 2; SOR/2005-185, s. 2; 2014, c. 39, s. 78
Non-Periodic Payments
Where a payment in respect of a bonus or retroactive increase in remuneration is made by an employer to an employee whose total remuneration from the employer (including the bonus or retroactive increase) may reasonably be expected not to exceed $5,000 in the taxation year of the employee in which the payment is made, the employer shall deduct or withhold, in the case of an employee who reports for work at an establishment of the employerin any province, 10 per cent, orin Canada beyond the limits of any province or outside Canada, 15 per cent,[Repealed, SOR/2001-221, s. 3]of such payment in lieu of the amount determined under section 102.Where a payment in respect of a bonus is made by an employer to an employee whose total remuneration from the employer (including the bonus) may reasonably be expected to exceed $5,000 in the taxation year of the employee in which the payment is made, the amount to be deducted or withheld therefrom by the employer isthe amount determined under section 102 in respect of an assumed remuneration equal to the aggregate ofthe amount of regular remuneration paid by the employer to the employee in the pay period in which the remuneration is paid, andan amount equal to the bonus payment divided by the number of pay periods in the taxation year of the employee in which the payment is mademinusthe amount determined under section 102 in respect of the amount of regular remuneration paid by the employer to the employee in the pay periodmultiplied bythe number of pay periods in the taxation year of the employee in which the payment is made.Where a payment in respect of a retroactive increase in remuneration is made by an employer to an employee whose total remuneration from the employer (including the retroactive increase) may reasonably be expected to exceed $5,000 in the taxation year of the employee in which the payment is made, the amount to be deducted or withheld therefrom by the employer isthe amount determined under section 102 in respect of the new rate of remunerationminusthe amount determined under section 102 in respect of the previous rate of remunerationmultiplied bythe number of pay periods in respect of which the increase in remuneration is retroactive.Subject to subsections (4.1) and (5), where a lump sum payment is made by an employer to an employee who is a resident of Canada,if the payment does not exceed $5,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employerin Quebec, 5 per cent,in any other province, 7 per cent, orin Canada beyond the limits of any province or outside Canada, 10 per cent,[Repealed, SOR/2001-221, s. 3]of such payment in lieu of the amount determined under section 102;if the payment exceeds $5,000 but does not exceed $15,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employerin Quebec, 10 per cent,in any other province, 13 per cent, orin Canada beyond the limits of any province or outside Canada, 20 per cent,[Repealed, SOR/2001-221, s. 3]of such payment in lieu of the amount determined under section 102; andif the payment exceeds $15,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employerin Quebec, 15 per cent,in any other province, 20 per cent, orin Canada beyond the limits of any province or outside Canada, 30 per cent,[Repealed, SOR/2001-221, s. 3]of such payment in lieu of the amount determined under section 102.For the purposes of a lump sum payment described in paragraph (6)(h), subsection (4) is to be read without reference to its paragraphs (b) and (c) and the portion of subsection (4) before subparagraph (a)(i) is to be read as follows:Where a lump sum payment is made by an employer to an employee,the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employerWhere the payment referred to in subsection (4) would be pension income or qualified pension income of the employee in respect of which subsection 118(3) of the Act would apply if the definition pension income in subsection 118(7) of the Act were read without reference to subparagraphs (a)(ii) and (iii) thereof, the payment shall be deemed to be the amount of the payment minuswhere the payment does not exceed the amount taxable referred to in paragraph 117(2)(a) of the Act, as adjusted annually pursuant to section 117.1 of the Act, the lesser of $1,000 and the amount of the payment;where the payment exceeds the amount referred to in paragraph (a) but does not exceed $61,509, $727;where the payment exceeds $61,509 but does not exceed $100,000, $615; andwhere the payment exceeds $100,000, $552.For the purposes of subsection (4), a lump sum payment means a payment that isa payment described in subparagraph 40(1)(a)(i) or (iii) or paragraph 40(1)(c) of the Income Tax Application Rules,a payment under a deferred profit sharing plan or a plan referred to in section 147 of the Act as a revoked plan, except a payment referred to in subparagraph 147(2)(k)(v) of the Act,a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of that annuitant, other thana periodic annuity payment, ora payment made by a person who has reasonable grounds to believe that the payment may be deducted under subsection 146(8.2) of the Act in computing the income of any taxpayer,a payment out of or under a plan referred to in subsection 146(12) of the Act as an amended plan other thana periodic annuity payment, orwhere paragraph 146(12)(a) of the Act applied to the plan after May 25, 1976, a payment made in a year subsequent to the year in which that paragraph applied to the plan,a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146.3(1) of the Act under a registered retirement income fund of that annuitant, other than a payment to the extent that it is in respect of the minimum amount (within the meaning assigned by subsection 146.3(1) of the Act) under the fund for a year,a retiring allowance,a payment of an amount as, on account or in lieu of payment of, or in satisfaction of, proceeds of the surrender, cancellation or redemption of an income-averaging annuity contract,a payment described in paragraph (n) of the definition remuneration in subsection 100(1),a payment made under theCanada Recovery Benefits Act, orCanada Worker Lockdown Benefit Act, ora payment described in paragraph 153(1)(v) of the Act.For the purposes of subsection 153(1) of the Act, the amount to be deducted or withheld by a person shall be 50 per centof the contribution made by the person under a retirement compensation arrangement, other thana contribution made by the person as an employee,a contribution made to a plan or arrangement that is a prescribed plan or arrangement for the purposes of subsection 207.6(6) of the Act,a contribution made by way of a transfer from another retirement compensation arrangement under circumstances in which subsection 207.6(7) of the Act applies, ora contribution that is an excluded contribution (as defined in subsection 207.5(1) of the Act); orof the payment by the person to a resident of Canada of an amount on account of the purchase price of an interest in a retirement compensation arrangement.Every employer making a payment described in paragraph (n) of the definition remuneration in subsection 100(1) shall withhold — in addition to any other amount required to be withheld under Part I of these Regulations — on account of the tax payable under Part X.5 of the Act, an amount equal towhere the amount is paid in the province of Quebec, 12 per cent of the payment, andin any other case, 20 per cent of the payment.The amount to be deducted or withheld by a person from any payment of an amount described in paragraph 56(1)(z.4) of the Act isin the case of a payment to a resident of Quebec, 30% of the payment; orin the case of a payment to a resident of Canada who is not a resident of Quebec, 50% of the payment.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-2, s. 2; SOR/78-331, s. 3; SOR/78-449, s. 2; SOR/78-625, s. 2; SOR/79-359, s. 2; SOR/79-694, s. 2; SOR/80-382, s. 2; SOR/80-502, s. 2; SOR/80-683, s. 3; SOR/80-901, s. 2; SOR/80-941, s. 3; SOR/81-471, s. 4; SOR/83-349, s. 3; SOR/83-360, s. 1; SOR/83-692, s. 5; SOR/84-223, s. 1; SOR/84-913, s. 2; SOR/85-979, s. 1; SOR/86-629, s. 3; SOR/87-256, s. 1; SOR/87-471, s. 3; SOR/87-638, s. 2; SOR/88-153, s. 1; SOR/88-310, s. 2; SOR/89-147, s. 2; SOR/89-508, s. 3; SOR/90-161, s. 2; SOR/91-150, s. 2; SOR/91-279, s. 2; SOR/91-536, s. 2; SOR/92-51, s. 2; SOR/92-138, s. 2; SOR/92-667, s. 2; SOR/93-399, s. 1; SOR/94-238, s. 3; SOR/94-569, s. 2; SOR/94-686, s. 48; SOR/96-205, s. 1; SOR/96-464, s. 1; SOR/97-137, s. 1; SOR/97-531, s. 1; SOR/99-17, s. 3; SOR/99-18, s. 1; SOR/99-22, s. 2; SOR/2000-10, s. 1; SOR/2000-12, s. 1; SOR/2000-329, s. 1; SOR/2001-216, s. 10(F); SOR/2001-221, s. 3; 2014, c. 20, s. 322020, c. 12, s. 2 “44”2021, c. 26, s. 82022, c. 19, s. 712024, c. 15, s. 73
For the purpose of the description of C in subsection (2), plan payment meansin the case of a disability assistance payment that is a lifetime disability assistance payment, the total amount of all the lifetime disability assistance payments that have been made or that may reasonably be expected to be made to the employee under the plan in their taxation year and that the employer has reasonable grounds to believe are described in paragraph (o) of the definition remuneration in subsection 100(1); orin the case of a disability assistance payment that is other than a lifetime disability assistance payment, the amount of the payment that is made to the employee under the plan and that is described in paragraph (o) of the definition remuneration in subsection 100(1).If an employer makes a disability assistance payment under a registered disability savings plan to an employee who is a resident of Canada, the employer shall, in lieu of the amount determined under section 102, deduct or withhold from the payment an amount determined by the formula(A – B) × CwhereAis the amount of the disability assistance payment that is made to the employee and that is described in paragraph (o) of the definition remuneration in subsection 100(1);Bisif the beneficiary of the plan is deceased, nil, orthe amount by which the total of the following amounts exceeds the total amount of all the disability assistance payments previously made to the employee in their taxation year and that are described in paragraph (o) of the definition remuneration in subsection 100(1):the amount determined for F in subsection 118(1.1) of the Act for the taxation year, andthe amount used under the description of B in subsection 118.3(1) of the Act for the taxation year; andCisif the plan payment does not exceed $5,000 and the amount is paidin Quebec, 5 per cent,in any other province, 7 per cent, orin Canada beyond the limits of any province or outside Canada, 10 per cent,if the plan payment exceeds $5,000 but does not exceed $15,000 and the amount is paidin Quebec, 10 per cent,in any other province, 13 per cent, orin Canada beyond the limits of any province or outside Canada, 20 per cent, orif the plan payment exceeds $15,000 and the amount is paidin Quebec, 15 per cent,in any other province, 20 per cent, orin Canada beyond the limits of any province or outside Canada, 30 per cent.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2016-30, s. 22021, c. 23, s. 82
Deductions not Required
[Repealed, SOR/2001-221, s. 4]No amount shall be deducted or withheld from a payment in accordance with any of sections 102 to 103.1 in respect of an employee who was neither employed nor resident in Canada at the time of payment except in respect ofremuneration described in subparagraph 115(2)(e)(i) of the Act that is paid to a non-resident person who has in the year, or had in any previous year, ceased to be resident in Canada; orremuneration reasonably attributable to the duties of any office or employment performed or to be performed in Canada by the non-resident person.No amount shall be deducted or withheld from a payment made by a person during the lifetime of an annuitant referred to in paragraph (a) of the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of the annuitant where, at the time of the payment, the annuitant has certified in prescribed form to the person thata written agreement has been entered into to acquire a home by eitherthe annuitant, ora disabled person who is related to the annuitant and who is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act;the annuitant intends that the home be used as a principal place of residence in Canada for the annuitant or the disabled person, as the case may be, within one year after its acquisition;the home has not been previously owned by the annuitant, the annuitant’s spouse or common-law partner, the disabled person or the spouse or common-law partner of that person;the annuitant was resident in Canada;the total amount of the payment and all other such payments received by the annuitant in respect of the home at or before the time of the payment does not exceed the dollar amount specified in paragraph (h) of the definition regular eligible amount in subsection 146.01(1) of the Act;except where the annuitant certifies that he or she is a disabled person entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act or certifies that the payment is being withdrawn for the benefit of such a disabled person, the annuitant is a qualifying homebuyer at the time of the certification; andwhere the annuitant has withdrawn an eligible amount, within the meaning assigned by subsection 146.01(1) of the Act, before the calendar year of the certification, the total of all eligible amounts received by the annuitant before that calendar year does not exceed the total of all amounts previously designated under subsection 146.01(3) of the Act or included in computing the annuitant’s income under subsection 146.01(4) or (5) of the Act.For the purpose of subsection (3), the annuitant is a qualifying homebuyer at a particular time unlessthe annuitant had an owner-occupied home in the period beginning on January 1 of the fourth calendar year preceding the particular time, and ending on the thirty-first day before the particular time; orthe annuitant’s spouse or common-law partner, in the period referred to in paragraph (a), had an owner-occupied home that was inhabited by the annuitant at any time during the annuitant’s marriage to the spouse or the annuitant’s common-law partnership with the common-law partner.For the purpose of subsection (3.01), an individual shall be considered to have had an owner-occupied home at any time where the home was owned, whether jointly with another person or otherwise, by the individual at that time and inhabited by the individual as the individual’s principal place of residence at that time.For the purposes of subsections (3), (3.01) and (3.1), home meansa housing unit;a share of the capital stock of a cooperative housing corporation, where the holder of the share is entitled to possession of a housing unit; andwhere the context so requires, the housing unit to which a share described in paragraph (b) relates.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-449, s. 3; SOR/78-754, s. 1; SOR/89-508, s. 4; SOR/92-176, s. 1; SOR/92-667, s. 3; SOR/93-81, s. 1; SOR/94-238, s. 4; SOR/94-246, s. 1; SOR/94-686, ss. 49(F), 79(F); SOR/97-470, s. 2; SOR/99-19, s. 1; SOR/2001-188, ss. 1, 14; SOR/2001-221, s. 4; 2013, c. 34, s. 376; SOR/2016-30, s. 3
Lifelong Learning Plan
No amount shall be deducted or withheld from a payment made by a person during the lifetime of an annuitant referred to in paragraph (a) of the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of the annuitant where, at the time of the payment, the annuitant has certified in prescribed form to the person thatat the time of certification, the annuitant or the annuitant’s spouse or common-law partneris a full-time student in a qualifying educational program,is a part-time student in a qualifying educational program and is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act, orhas received notification in writing of his or her entitlement, either absolutely or conditionally, to enrol before March of the year that follows the year of certification asa full-time student in a qualifying educational program, ora part-time student in a qualifying educational program where the annuitant or the annuitant’s spouse or common-law partner is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act;the annuitant is resident in Canada;the total amount of the payment and all other such payments received by the annuitant for a year at or before that time does not exceed $10,000; andthe total payments received by the annuitant do not exceed $20,000 throughout the period in which the annuitant participates in the Lifelong Learning Plan.For the purpose of subsection (1), a qualifying educational program means a qualifying educational program at a designated educational institution (as those expressions are defined in subsection 118.6(1) of the Act), except that a reference to a qualifying educational program shall be readwithout reference to paragraphs (a) and (b) of that definition; andas if the reference to “3 consecutive weeks” in that definition were a reference to “3 consecutive months”.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-19, s. 2; SOR/2001-188, s. 14
Non-Residents
Every person paying to a non-resident person a fee, commission or other amount in respect of services rendered in Canada, of any nature whatever, shall deduct or withhold 15 per cent of such payment.Subsection (1) does not apply to a paymentdescribed in the definition remuneration in subsection 100(1);made to a registered non-resident insurer (within the meaning assigned by section 804); ormade to an authorized foreign bank in respect of its Canadian banking business.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 49(F); SOR/2009-302, s. 1
Fishermen’s Election
Notwithstanding section 100, in this section,amount of remuneration paid to a fisherman meanswhere a boat crewed by one or more fishermen engaged in making a catch is owned, together with the gear, by a person, other than a member of the crew, to whom the catch is to be delivered for subsequent sale or other disposition, such portion of the proceeds from the disposition of the catch that is payable to the fisherman in accordance with an arrangement under which the proceeds of disposition of the catch are to be distributed (in this section referred to as a “share arrangement”),where the boat or gear used in making a catch is owned or leased by a fisherman who alone or with another individual engaged under a contract of service makes the catch, such portion of the proceeds from the disposition of the catch that remains after deducting therefromthe amount in respect of any portion of the catch not caught by the fisherman or the other individual,the amount payable to the other individual under the contract of service, andthe amount of such proportionate share of the catch as is attributable to the expenses of the operation of the boat or its gear pursuant to their share arrangement,where a crew includes the owner of the boat or gear (in this paragraph referred to as the owner) and any other fisherman engaged in making a catch, such portion of the proceeds from the disposition of the catch that remains after deducting therefromin the case of an owner,the amount in respect of that portion of the catch not caught by the crew or an owner,the aggregate of all amounts each of which is an amount payable to a crew member (other than the owner) pursuant to their share arrangement or to an individual engaged under a contract of service, andthe amount of such proportionate share of the catch as is attributable to the expenses of the owner’s operation of the boat or its gear pursuant to their share arrangement, orin the case of any other crew member, such proceeds from the disposition of the catch as is payable to him in accordance with their share arrangement, orin any other case, the proceeds of disposition of the catch payable to the fisherman; (montant de rémunération)catch means a catch of shell fish, crustaceans, aquatic animals or marine plants caught or taken from any body of water; (pêche)crew means one or more fishermen engaged in making a catch; (équipe)fisherman means an individual engaged in making a catch other than under a contract of service. (pêcheur)Every person paying at any time in a taxation year an amount of remuneration to a fisherman who, pursuant to paragraph 153(1)(n) of the Act, has elected for the year in prescribed form in respect of all such amounts shall deduct or withhold 20% of each such amount paid to the fisherman while the election is in force.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-692, s. 6; SOR/88-165, s. 31(F)
Variations in Deductions
Where an employer makes a payment of remuneration to an employee in his taxation yearfor a period for which no provision is made in Schedule I, orfor a pay period referred to in Schedule I in an amount that is greater than any amount provided for therein,[Repealed, SOR/2001-221, s. 5]the amount to be deducted or withheld by the employer from any such payment is that proportion of the payment that the tax that may reasonably be expected to be payable under the Act by the employee with respect to the aggregate of all remuneration that may reasonably be expected to be paid by the employer to the employee in respect of that taxation year is of such aggregate.[Repealed, SOR/84-913, s. 3][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-941, s. 4; SOR/81-471, s. 5; SOR/83-349, s. 4; SOR/83-692, s. 7; SOR/84-913, s. 3; SOR/85-453, s. 3; SOR/89-508, s. 5; SOR/2001-221, s. 5
Employee’s Returns
The return required to be filed by an employee under subsection 227(2) of the Act shall be filed by the employee with the employer when the employee commences employment with that employer and a new return shall be filed thereunder within 7 days after the date on which a change occurs that may reasonably be expected to result in a change in the employee’s personal credits for the year.Notwithstanding subsection (1), where, in a year, an employee receives payments in respect of commissions or in respect of commissions and salary or wages, and the employee elects to file a prescribed form for the year in addition to the return referred to in that subsection, that form shall be filed with the employee’s continuing employer on or before January 31 of that year and, where applicable, within one month after the employee commences employment with a new employer or within one month after the date on which a change occurs that may reasonably be expected to result in a substantial change in the employee’s estimated total remuneration for the year or estimated deductions for the year.Where, in a taxation year, an employee has elected to file the prescribed form referred to in subsection (2) and has filed such form with his employer, the employee may at any time thereafter in the year revoke that election and such revocation is effective from the date that he notifies his employer in writing of his intention.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-941, s. 5; SOR/81-471, s. 6; SOR/89-508, s. 6; SOR/2001-221, s. 6
Remittances to Receiver General
Subject to subsections (1.1) to (1.13), amounts deducted or withheld in a month under subsection 153(1) of the Act shall be remitted to the Receiver General on or before the 15th day of the following month.Subject to subsection (1.11), where the average monthly withholding amount of an employer for the second calendar year preceding a particular calendar year isequal to or greater than $25,000 and less than $100,000, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver Generalin respect of payments made before the 16th day of the month, on or before the 25th day of the month, andin respect of payments made after the 15th day of the month, on or before the 10th day of the following month; orequal to or greater than $100,000, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of the following periods in which the payments were made,the period beginning on the first day and ending on the 7th day of the month,the period beginning on the 8th day and ending on the 14th day of the month,the period beginning on the 15th day and ending on the 21st day of the month, andthe period beginning on the 22nd day and ending on the last day of the month.Where an employer referred to in paragraph (1.1)(a) or (b) would otherwise be required to remit in accordance with that paragraph the amounts withheld or deducted under subsection 153(1) of the Act in respect of a particular calendar year, the employer may elect to remit those amountsin accordance with subsection (1), if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is less than $25,000 and the employer has advised the Minister that the employer has so elected; orif the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is equal to or greater than $25,000 and less than $100,000 and the employer has advised the Minister that the employer has so elected,in respect of payments made before the 16th day of a month in the particular calendar year, on or before the 25th day of the month, andin respect of payments made after the 15th day of a month in particular calendar year, on or before the 10th day of the following month.If at any timethe average monthly withholding amount in respect of an employer for either the first or the second calendar year before the particular calendar year that includes that time is less than $3,000,throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, under subsection 21(1) of the Canada Pension Plan, under subsection 82(1) of the Employment Insurance Act or under Part IX of the Excise Tax Act, andthroughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under this Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts,all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made by the employer in a month that ends after that time and that is in the particular calendar year may be remitted to the Receiver Generalin respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular year,in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular year,in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular year, andin respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular year.If an employer is a new employer throughout a particular month in a particular calendar year, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made by the employer in the month may be remitted to the Receiver Generalin respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; andin respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.For the purposes of this section, average monthly withholding amount, in respect of an employer for a particular calendar year, is the quotient obtained whenthe aggregate of all amounts each of which is an amount required to be remitted with respect to the particular year undersubsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, where the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1),subsection 21(1) of the Canada Pension Plan, orsubsection 82(1) of the Employment Insurance Act,by the employer or, where the employer is a corporation, by each corporation associated with the corporation in a taxation year of the employer ending in the second calendar year following the particular yearis divided bythe number of months in the particular year, not exceeding twelve, for which such amounts were required to be remitted by the employer and, where the employer is a corporation, by each corporation associated with it in a taxation year of the employer ending in the second calendar year following the particular year.For the purposes of subsection (1.4), the monthly withholding amount, in respect of an employer for a month, is the total of all amounts each of which is an amount required to be remitted with respect to the month by the employer or, if the employer is a corporation, by each corporation associated with the corporation, undersubsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, if the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1);subsection 21(1) of the Canada Pension Plan; orsubsection 82(1) of the Employment Insurance Act.For the purposes of subsection (1.2), where a particular employer that is a corporation has acquired in a taxation year of the corporation ending in a particular calendar year all or substantially all of the property of another employer used by the other employer in a businessin a transaction in respect of which an election was made under subsection 85(1) or (2) of the Act,by virtue of an amalgamation within the meaning assigned to that term by section 87 of the Act, oras the result of a winding-up in respect of which subsection 88(1) of the Act is applicable,the other employer shall be deemed to be a corporation associated with the particular employer in the taxation year and each taxation year ending at any time in the next two following calendar years.For the purposes of subsection (1.13) an employerbecomes a new employer at the beginning of any month after 2015 in which the employer first becomes an employer; andceases to be a new employer at a specified time in a particular year, if in a particular month the employer does not meet any of the following conditions:the monthly withholding amount in respect of the employer for the particular month is less than $1,000,throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, subsection 21(1) of the Canada Pension Plan, subsection 82(1) of the Employment Insurance Act or Part IX of the Excise Tax Act, andthroughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under the Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts.For the purposes of subsection (1.4), the specified time is the end ofMarch of the particular year, if the particular month is January, February or March of that year;June of the particular year, if the particular month is April, May or June of that year;September of the particular year, if the particular month is July, August or September of that year; andDecember of the particular year, if the particular month is October, November or December of that year.Where an employer has ceased to carry on business, any amount deducted or withheld under subsection 153(1) of the Act that has not been remitted to the Receiver General shall be paid within 7 days of the day when the employer ceased to carry on business.Remittances made to the Receiver General under subsection 153(1) of the Act shall be accompanied by a return in prescribed form.Amounts deducted or withheld under subsection 153(4) of the Act shall be remitted to the Receiver General within 60 days after the end of the taxation year subsequent to the 12-month period referred to in that subsection.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/87-718, s. 1; SOR/88-165, s. 31(F); SOR/89-579, s. 1; SOR/91-536, s. 3; SOR/93-93, s. 1; SOR/94-686, s. 79(F); SOR/97-472, s. 3; SOR/99-17, s. 4; 2007, c. 35, s. 71; 2014, c. 20, s. 33; 2015, c. 36, s. 20
Elections To Increase Deductions
Any election under subsection 153(1.2) of the Act shall be made by filing with the person making the payment or class of payments referred to therein (in this section referred to as the payer) the form prescribed by the Minister for that purpose.A taxpayer who has made an election in the manner prescribed by subsection (1) may require that the amount deducted or withheld pursuant to that election be varied by filing with the payer the form prescribed by the Minister for that purpose.An election made in the manner prescribed by subsection (1) or a variation made pursuant to subsection (2) need not be taken into account by the payer in respect of the first payment to be made to the taxpayer after the election or variation, as the case may be, unless the election or variation, as the case may be, is made within such time, in advance of the payment, as may reasonably be required by the payer.
Prescribed Persons
The following are prescribed persons for the purposes of subsection 153(1) of the Act:an employer who is required, under subsection 153(1) of the Act and in accordance with paragraph 108(1.1)(b), to remit amounts deducted or withheld; anda person or partnership who, acting on behalf of one or more employers, remits the following amounts in a particular calendar year and whose average monthly remittance, in respect of those amounts, for the second calendar year preceding the particular calendar year, is equal to or greater than $50,000,amounts required to be remitted under subsection 153(1) of the Act and a similar provision of a law of a province that imposes a tax on the income of individuals, where the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1),amounts required to be remitted under subsection 21(1) of the Canada Pension Plan, andamounts required to be remitted under subsection 82(1) of the Employment Insurance Act or subsection 53(1) of the Unemployment Insurance Act.For the purposes of paragraph (1)(b), the average monthly remittance made by a person or partnership on behalf of all the employers for whom that person or partnership is acting, for the second calendar year preceding the particular calendar year, is the quotient obtained when the aggregate, for that preceding year, of all amounts referred to in subparagraphs (1)(b)(i) to (iii) remitted by the person or partnership on behalf of those employers is divided by the number of months, in that preceding year, for which the person or partnership remitted those amounts.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-535, s. 1; SOR/99-17, s. 5
Deemed Remittance
For the purpose of subsection 153(1.02) of the Act$25,000 is the amount prescribed for the purpose of the description of A in paragraph 153(1.02)(a) of the Act;10%, or a lower percentage elected by the eligible employer, as defined in subsection 153(1.03), is the percentage prescribed for the purpose of the description of C in paragraph 153(1.02)(b) of the Act; and$1,375 is the amount prescribed for the purpose of the description of E in paragraph 153(1.02)(c) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2020-106, s. 1
Information ReturnsRemuneration and Benefits
Subject to subsection (1.1), every person who makes a payment described in subsection 153(1) of the Act (including an amount paid that is described in subparagraph 153(1)(a)(ii) of the Act) shall make an information return in prescribed form in respect of the payment unless an information return in respect of the payment has been made under sections 202, 214, 237 or 238.Subsection (1) does not apply in respect ofan annuity payment in respect of an interest in an annuity contract to which subsection 201(5) applies; oran amount paid by a qualifying non-resident employer to a qualifying non-resident employee that is exempted under subparagraph 153(1)(a)(ii) of the Act if the employer, after reasonable inquiry, has no reason to believe that the employee’s total amount of taxable income earned in Canada under Part I of the Act during the calendar year that includes the time of this payment (including an amount described in paragraph 110(1)(f) of the Act) is more than $10,000.Every person who makes a payment as or on account of, or who confers a benefit or allocates an amount that is,a scholarship, fellowship or bursary, or a prize for achievement in a field of endeavour ordinarily carried on by the recipient thereof (other than a prize prescribed by section 7700),a grant to enable the recipient thereof to carry on research or any similar work,an amount that is required by paragraph 56(1)(n.1) of the Act to be included in computing a taxpayer’s income,an amount that is required by paragraph 56(1)(r) of the Act to be included in computing a taxpayer’s income,a benefit under regulations made under an appropriation Act providing for a scheme of transitional assistance benefits to persons employed in the production of products to which the Canada-United States Agreement on Automotive Products, signed on January 16, 1965, applies,a benefit described in section 5502,an amount payable to a taxpayer on a periodic basis in respect of the loss of all or any part of his income from an office or employment, pursuant toa sickness or accident insurance plan,a disability insurance plan, oran income maintenance insurance plan,to or under which his employer has made a contribution,an amount or benefit the value of which is required by paragraph 6(1)(a), (e) or (h) or subsection 6(9) of the Act to be included in computing a taxpayer’s income from an office or employment, other than a payment referred to in subsection (1),a benefit the amount of which is required by virtue of subsection 15(5) of the Act to be included in computing a shareholder’s income,a benefit deemed by subsection 15(9) of the Act to be a benefit conferred on a shareholder by a corporation, ora payment out of a registered education savings plan, other than a refund of payments,shall make an information return in prescribed form in respect of such payment or benefit except where subsection (3) or (4) applies with respect to the payment or benefit.Where a benefit is included in computing a taxpayer’s income from an office or employment pursuant to paragraph 6(1)(a) or (e) of the Act in respect of an automobile made available to the taxpayer or to a person related to the taxpayer by a person related to the taxpayer’s employer, the employer shall make an information return in prescribed form in respect of the benefit.Where a benefit is included in computing the income of a shareholder of a corporation by virtue of subsection 15(5) of the Act in respect of an automobile made available to the shareholder or to a person related to the shareholder by a person related to the corporation, the corporation shall make an information return in prescribed form in respect of the benefit.Where a particular qualifying person (within the meaning assigned by subsection 7(7) of the Act) has agreed to sell or issue a security (within the meaning assigned by that subsection) of the particular qualifying person (or of a qualifying person with which it does not deal at arm’s length) to a taxpayer who is an employee of the particular qualifying person (or of a qualifying person with which it does not deal at arm’s length) and the taxpayer has acquired the security under the agreement in circumstances to which subsection 7(8) of the Act applied, each of the particular qualifying person, the qualifying person of which the security is acquired and the qualifying person which is the taxpayer’s employer shall, for the particular taxation year in which the security is acquired, make an information return in the prescribed form in respect of the benefit from employment that the taxpayer would be deemed to have received in the particular taxation year in respect of the acquisition of the security if the Act were read without reference to subsection 7(8) and, for this purpose, an information return made by one of the qualifying persons in respect of the taxpayer’s acquisition of the security is deemed to have been made by each of the qualifying persons.Every person who makes a payment as or on account of an amount that is required by subsection 56(6) of the Act to be included in computing a taxpayer’s income shall make an information return in prescribed form in respect of that payment.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-909, s. 1; SOR/79-939, s. 1; SOR/81-936, s. 1; SOR/83-866, s. 1; SOR/83-867, s. 1; SOR/88-165, s. 31(F); SOR/89-473, s. 1; SOR/94-686, s. 79(F); SOR/95-298, s. 2; SOR/99-17, s. 6; SOR/99-22, s. 3; SOR/2003-5, s. 1; SOR/2003-328, s. 1; SOR/2011-188, s. 1(F); SOR/2015-170, s. 1; 2016, c. 7, s. 55
Investment Income
Every person who makes a payment to a resident of Canada as or on account ofa dividend or an amount deemed by the Act to be a dividend (other than a dividend deemed to have been paid to a person under any of subsections 84(1) to (4) of the Act where, pursuant to subsection 84(8) of the Act, those subsections do not apply to deem the dividend to have been received by the person),interest (other than the portion of the interest to which any of subsections (4) to (4.2) applies)on a fully registered bond or debenture,in respect ofmoney on loan to an association, corporation, institution, organization, partnership or trust,money on deposit with an association, corporation, institution, organization, partnership or trust, orproperty deposited or placed with an association, corporation, institution, organization, partnership or trust,in respect of an account with an investment dealer or broker,paid by an insurer in connection with an insurance policy or an annuity contract, oron an amount owing in respect of compensation for property expropriated,a royalty payment in respect of the use of a work or invention or a right to take natural resources,a payment referred to in subsection 16(1) of the Act that can reasonably be regarded as being in part a payment of interest or other payment of an income nature and in part a payment of a capital nature, where the payment is made by a corporation, association, organization or institution,an amount paid from a person’s NISA Fund No. 2,an amount that is required by subsection 148.1(3) of the Act to be added in computing a person’s income for a taxation year, orthe portion of the price for which a debt obligation was assigned or otherwise transferred that is deemed by subsection 20(14.2) of the Act to be interest that accrued on the debt obligation to which the transferee has become entitled to for a period commencing before the time of the transfer and ending at that particular time that is not payable until after that particular time if the payment is made by a person that is a financial company (whether acting as principal or as agent for the transferee) for the purposes of section 211shall make an information return in prescribed form in respect of the portion of such payment for which an information return has not previously been made under this section.Every person who receives as nominee or agent for a person resident in Canada a payment to which subsection (1) applies shall make an information return in prescribed form in respect of such payment.Where a person negotiates a bearer coupon, warrant or cheque representing interest or dividends referred to in subsection 234(1) of the Act for another person resident in Canada and the name of the beneficial owner of the interest or dividends is not disclosed on an ownership certificate completed pursuant to that subsection, the person negotiating the coupon, warrant or cheque, as the case may be, shall make an information return in prescribed form in respect of the payment received.A person or partnership that is indebted in a calendar year under a debt obligation in respect of which subsection 12(4) of the Act and paragraph (1)(b) apply with respect to a taxpayer shall make an information return in prescribed form in respect of the amount (other than an amount to which paragraph (1)(g) applies) that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year.A person or partnership that is indebted in a calendar year under an indexed debt obligation in respect of which paragraph (1)(b) applies shall, for each taxpayer who holds an interest in the debt obligation at any time in the year, make an information return in prescribed form in respect of the amount that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year.Where, at any time in a calendar year, a person or partnership holds, as nominee or agent for a taxpayer resident in Canada, an interest in a debt obligation referred to in paragraph (1)(b) that isan obligation in respect of which subsection 12(4) of the Act applies with respect to the taxpayer, oran indexed debt obligation,that person or partnership shall make an information return in prescribed form in respect of the amount that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year.Every insurer, within the meaning assigned by paragraph 148(10)(a) of the Act, who is a party to a life insurance policy in respect of which an amount is to be included in computing a taxpayer’s income under subsection 12.2(1) or (5) of the Act shall make an information return in prescribed form in respect of that amount.Subsection (5) applies to an insurer in respect of an LIA policy in respect of a calendar year only ifthe insurer is notified in writing — before the end of the calendar year and by, or on behalf, of the policyholder — that the policy is an LIA policy; orit is reasonable to conclude that the insurer knew, or ought to have known, before the end of the calendar year, that the policy is an LIA policy.Every person who makes a payment to, or acts as a nominee or agent for, an individual resident in Canada in respect of the disposition or redemption of a debt obligation in bearer form shall make an information return in prescribed form in respect of the transaction indicating the proceeds of disposition or the redemption amount and such other information as may be required by the prescribed form.For the purposes of subsection (6), debt obligation in bearer form means any debt obligation in bearer form other thana debt obligation that is redeemed for the amount for which the debt obligation was issued;a debt obligation described in paragraph 7000(1)(b); anda coupon, warrant or cheque referred to in subsection 207(1).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-939, s. 2; SOR/83-866, s. 2; SOR/83-867, s. 2; SOR/86-426, s. 1; SOR/86-1092, s. 1(F); SOR/88-165, s. 31(F); SOR/88-554, s. 1; SOR/91-123, s. 1; SOR/93-527, s. 1; SOR/94-686, ss. 1(F), 78(F), 79(F); SOR/96-283, s. 1; SOR/96-435, s. 1; SOR/2010-93, s. 1; 2013, c. 40, s. 96; 2016, c. 12, s. 74; 2018, c. 12, s. 42
Payments to Non-Residents
In addition to any other return required by the Act or these Regulations, every person resident in Canada shall make an information return in prescribed form in respect of any amount that the person pays or credits, or is deemed under Part I, XIII or XIII.2 of the Act to pay or credit, to a non-resident person as, on account or in lieu of payment of, or in satisfaction of,a management or administration fee or charge;interest;income of or from an estate or trust;rent, royalty or a similar payment referred to in paragraph 212(1)(d) of the Act, including any payment described in any of subparagraphs 212(1)(d)(i) to (viii) of the Act;a timber royalty as described in paragraph 212(1)(e) of the Act;an assessable distribution, as defined in subsection 218.3(1) of the Act;a dividend, including a patronage dividend as described in paragraph 212(1) (g) of the Act; ora payment for a right in or to the use ofa motion picture film, ora film or video tape for use in connection with television.[Repealed, SOR/88-165, s. 1]Every person who pays or credits an amount, or provides a benefit to or on behalf of a person who is either a non-resident individual who is an actor or that is a corporation related to such an individual, for the provision in Canada of acting services of the actor in a film or video production, shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of such payment, credit or benefit.Every person resident in Canada who pays or credits, or is deemed by Part I or Part XIII of the Act to pay or credit, to a non-resident person an amount as, on account or in lieu of payment of, or in satisfaction of,a payment of a superannuation or pension benefit,a payment of any allowance or benefit described in any of subparagraphs 56(1)(a)(ii) to (vi) of the Act,a payment by a trustee under a registered supplementary unemployment benefit plan,a payment out of or under a registered retirement savings plan or a plan referred to in subsection 146(12) of the Act as an amended plan,a payment under a deferred profit sharing plan or a plan referred to in subsection 147(15) of the Act as a revoked plan,a payment under an income-averaging annuity contract, any proceeds of the surrender, cancellation, redemption, sale or other disposition of an income-averaging annuity contract, or any amount deemed by subsection 61.1(1) of the Act to have been received by the non-resident person as proceeds of the disposition of an income-averaging annuity contract,an annuity payment not described in any other paragraph of this subsection or subsection (1),a payment to which paragraph 212(1)(p) of the Act applies,a payment out of or under a registered retirement income fund,a payment that is or that would be, if paragraph 212(1)(r) of the Act were read without reference to subparagraph 212(1)(r)(ii), a payment described in that paragraph in respect of a registered education savings plan,a grant under a program prescribed for the purposes of paragraph 212(1)(s) of the Act,a payment described in paragraph 212(1)(j) of the Act in respect of a retirement compensation arrangement,a payment described in paragraph 212(1)(v) or (x) of the Act, ora payment described in paragraph 212(1)(r.1) of the Act,shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of such amount.Every person resident in Canada who pays an amount to a non-resident person from a NISA Fund No. 2 shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of the amount.Every person who is paid or credited with an amount referred to in subsection (1), (2) or (2.1) for or on behalf of a non-resident person shall make an information return in prescribed form in respect of the amount.A non-resident person who is deemed, under subsection 212(13) of the Act, to be a person resident in Canada for the purposes of section 212 of the Act shall be deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2).A partnership that is deemed, under paragraph 212(13.1)(a) of the Act, to be a person resident in Canada for the purposes of Part XIII of the Act shall be deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2).A non-resident person, or an authorized foreign bank, that is deemed under subsection 212(13.2) or paragraph 212(13.3)(a) of the Act to be a person resident in Canada for the purposes of Part XIII of the Act, is deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2).A trust that is deemed by subsection 94(3) of the Act to be resident in Canada for a taxation year for the purposes of computing its income, is deemed, in respect of amounts (other than an exempt amount as defined in subsection 94(1) of the Act) paid or credited by it, to be a person resident in Canada for the taxation year for the purposes of subsections (1) and (2).Subject to subsection (8), an information return required under this section shall be filed on or before March 31 and shall be in respect of the preceding calendar year.Where an amount referred to in subsection (1) or (2) is income of or from an estate or trust, the information return required under this section in respect thereof shall be filed within 90 days from the end of the taxation year of the estate or trust in which the amount was paid or credited and shall be in respect of that taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-487, s. 1; SOR/80-382, ss. 3, 4; SOR/81-936, s. 2; SOR/83-866, s. 3; SOR/86-522, s. 1; SOR/88-165, ss. 1, 31(F); SOR/88-395, s. 1; SOR/93-527, s. 2; SOR/94-686, ss. 50(F), 78(F); SOR/99-22, s. 4; SOR/2000-13, s. 1; SOR/2001-216, s. 10(F); SOR/2003-5, s. 2; SOR/2005-123, s. 1; 2009, c. 2, s. 83; SOR/2011-188, s. 2; 2013, c. 34, s. 27; 2014, c. 20, s. 34; SOR/2016-30, s. 42023, c. 26, s. 96
Requirement to fileEvery institution that is a designated educational institution (as defined in subsection 118.6(1) of the Act) because of paragraph (a) of that definition shall make an information return in prescribed form in respect of each individual enrolled at that institution who is a qualifying student (as defined in subsection 118.6(1)) for a month in a taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2003-5, s. 3; 2018, c. 27, s. 35
Estates and Trusts
Every person having the control of, or receiving income, gains or profits in a fiduciary capacity, or in a capacity analogous to a fiduciary capacity, shall make a return in prescribed form in respect thereof.The return required under this section shall be filed within 90 days from the end of the taxation year and shall be in respect of the taxation year.Subsection (1) does not require a trust to make a return for a taxation year at the end of which it isgoverned by a deferred profit sharing plan or by a plan referred to in subsection 147(15) of the Act as a revoked plan;governed by an employees profit sharing plan;a registered charity;governed by an eligible funeral arrangement;a cemetery care trust;governed by a registered education savings plan;governed by a TFSA or by an arrangement that is deemed by paragraph 146.2(9)(a) of the Act to be a TFSA;governed by a registered disability savings plan, except if paragraph 146.4(5)(a) or (b) of the Act applies; orgoverned by a FHSA.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 31(F); SOR/94-686, s. 51(F); SOR/96-283, s. 2; SOR/99-22, s. 5; SOR/2000-13, s. 2; SOR/2001-216, s. 10(F); 2009, c. 2, s. 84; SOR/2016-30, s. 52024, c. 15, s. 74
Interpretation
The following definitions apply in this section.public investment trust, at any time, means a public trust all or substantially all of the fair market value of the property of which is, at that time, attributable to the fair market value of property of the trust that isunits of public trusts;partnership interests in public partnerships (as defined in subsection 229.1(1));shares of the capital stock of public corporations; orany combination of properties referred to in paragraphs (a) to (c). (fiducie de placement ouverte)public trust, at any time, means a mutual fund trust the units of which are, at that time, listed on a designated stock exchange in Canada. (fiducie ouverte)Required Information DisclosureA trust that is, at any time in a taxation year of the trust, a public trust shall, within the time required by subsection (3),make public, in prescribed form, information in respect of the trust for the taxation year by posting that prescribed form, in a manner that is accessible to the general public, on the Internet website of CDS Innovations Inc.; andnotify the Minister in writing as to when the posting of the prescribed form, as required by paragraph (a), has been made.Required Disclosure TimeThe time required for a public trust to satisfy the requirements of subsection (2) in respect of the public trust for a taxation year of the public trust issubject to paragraph (b), on or before the day that is 60 days after the end of the taxation year; andwhere the public trust is, at any time in the taxation year, a public investment trust, on or before the day that is 67 days after the end of the calendar year in which the taxation year ends.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2007, c. 35, s. 72
Additional Reporting — Trusts
For the purposes of subsection 150(1) of the Act, every person having the control of, or receiving income, gains or profits in a fiduciary capacity, or in a capacity analogous to a fiduciary capacity, shall provide information in respect of a trust, unless the trust is subject to one of the exceptions listed in paragraphs 150(1.2)(a) to (o) of the Act, that includes the name, address, date of birth (in the case of an individual other than a trust), jurisdiction of residence and TIN (as defined in subsection 270(1) of the Act) for each person who, in the year,is a trustee, beneficiary (subject to subsection (2)) or settlor (as defined in subsection 17(15) of the Act) of the trust; orhas the ability (through the terms of the trust or a related agreement) to exert influence over trustee decisions regarding the appointment of income or capital of the trust.For the purposes of subsection (1), the requirement in paragraph (1)(a) to provide required information in respect of beneficiaries of a trust in a return is met ifthe required information is provided in respect of each beneficiary of the trust whose identity is known or ascertainable with reasonable effort by the person making the return at the time of filing the return;in respect of a trust, the beneficiaries of which are all of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982, or an identifiable class of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982, the person making the return provides a sufficiently detailed description of the class of beneficiaries to determine with certainty whether any particular person is a member of that class of beneficiaries;in respect of a trust that is not described in paragraph 150(1.2)(h) of the Act but which has one or more classes of units that are listed on a designated stock exchange, the person making the return provides the required information regarding the beneficiaries of those classes of units that are not listed on a designated stock exchange; andin respect of beneficiaries not described in paragraphs (a) to (c), the person making the return provides sufficiently detailed information to determine with certainty whether any particular person is a beneficiary of the trust.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2022, c. 19, s. 72
Date Returns To Be Filed
All returns required under this Part shall be filed with the Minister without notice or demand and, unless otherwise specifically provided, on or before the last day of February in each year and shall be in respect of the preceding calendar year.Where a person who is required to make a return under this Part discontinues his business or activity, the return shall be filed within 30 days of the day of the discontinuance of the business or activity and shall be in respect of any calendar year or a portion thereof prior to the discontinuance of the business or activity for which a return has not previously been filed.For the purpose of subsection 162(7.01) of the Act, the following types of information returns are prescribed:First Home Savings Account StatementT4FHSAGovernment Service Contract PaymentsT1204International Electronic Funds Transfer ReportInternational Exchange of Information on Financial Accounts Information Return (Part XVIII of the Act)Part XX Information Return – Digital Platform OperatorsPast Service Pension Adjustment (PSPA) Exempt from Certification or Permitted Corrective Contribution (PCC)T215Pension Adjustment Reversal (PAR) or Pension Adjustment Correction (PAC)T10Pooled Registered Pension Plan (PRPP) Contribution Information ReturnRegistered Retirement Savings Plan (RRSP) Contribution Information ReturnStatement of Amounts Paid or Credited to Non-residents of CanadaNR4Statement of BenefitsT5007Statement of Canada Pension Plan BenefitsT4A(P)Statement of Contract PaymentsT5018Statement of Distributions from a Retirement Compensation Arrangement (RCA)T4A-RCAStatement of Employee Profit Sharing Plan Allocations and PaymentsT4PSStatement of Employment Insurance and Other BenefitsT4EStatement of Farm-support PaymentsAGR-1Statement of Fees, Commissions, or Other Amounts Paid to Non-residents for Services Rendered in CanadaT4A-NRStatement of Income from a Registered Retirement Income FundT4RIFStatement of Investment IncomeT5Statement of Old Age SecurityT4A(OAS)Statement of Pension, Retirement, Annuity and Other IncomeT4AStatement of Registered Retirement Savings Plan (RRSP) IncomeT4RSPStatement of Remuneration PaidT4Statement of Securities TransactionsT5008Statement of Trust Income Allocations and DesignationsT3Tax-free Savings Account (TFSA) Annual Information ReturnTuition and Enrolment CertificateUniversal Child Care Benefit StatementRC62
[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2013-199, s. 1; SOR/2015-170, s. 2; 2018, c. 27, s. 362022, c. 19, s. 732023, c. 26, s. 972024, c. 15, s. 75SOR/2024-231, s. 2
Electronic Filing
For the purpose of subsection 162(7.02) of the Act, the following types of information returns are prescribed and must be filed electronically if more than five information returns of that type are required to be filed for a calendar year:First Home Savings Account StatementT4FHSAGovernment Service Contract PaymentsT1204International Electronic Funds Transfer ReportPart XVIII Information Return — International Exchange of Information on Financial AccountsPooled Registered Pension Plan (PRPP) Contribution Information ReturnRegistered Retirement Savings Plan (RRSP) Contribution Information ReturnRegistered Retirement Savings Plans and Registered Retirement Income Funds Non-qualified InvestmentsStatement of Amounts Paid or Credited to Non-residents of CanadaNR4Statement of BenefitsT5007Statement of Canada Pension Plan BenefitsT4A(P)Statement of Contract PaymentsT5018Statement of Employment Insurance and Other BenefitsT4EStatement of Farm-support PaymentsAGR-1Statement of Fees, Commissions, or Other Amounts Paid to Non-residents for Services Rendered in CanadaT4A-NRStatement of Income from a Registered Retirement Income Fund (RIF)T4RIFStatement of Investment IncomeT5Statement of Old Age SecurityT4A(OAS)Statement of Partnership IncomeT5013Statement of Pension, Retirement, Annuity and Other IncomeT4AStatement of Remuneration PaidT4Statement of Registered Retirement Savings Plan (RRSP) IncomeT4RSPStatement of Securities TransactionsT5008Statement of Trust Income Allocations and DesignationsT3Tax-free Savings Account (TFSA) Annual Information ReturnTuition and Enrolment CertificateUniversal Child Care Benefit StatementRC62
For purposes of subsection 150.1(2.1) of the Act, a prescribed corporation is any corporation exceptan insurance corporation as defined in subsection 248(1) of the Act;a non-resident corporation;a corporation reporting in functional currency as defined in subsection 261(1) of the Act; ora corporation that is exempt under section 149 of the Act from tax payable.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-20, s. 1; SOR/2011-295, s. 1; SOR/2015-140, s. 1; 2018, c. 27, s. 372022, c. 19, s. 742023, c. 26, s. 982024, c. 15, s. 76SOR/2024-231, s. 3
Legal Representatives and Others
Where a person, who is required to make a return under this Part, has died, such return shall be filed by his legal representative within 90 days of the date of death and shall be in respect of any calendar year or a portion thereof prior to the date of death for which a return has not previously been filed.Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or income of a person who has not filed a return as required by this Part shall file such return.
Ownership Certificates
An ownership certificate completed pursuant to section 234 of the Act shall be delivered to the debtor or encashing agent at the time the coupon, warrant or cheque referred to in that section is negotiated.The debtor or encashing agent to whom an ownership certificate has been delivered pursuant to subsection (1) shall forward it to the Minister on or before the 15th day of the month following the month the coupon, warrant or cheque, as the case may be, was negotiated.The operation of section 234 of the Act is extended to a bearer coupon or warrant negotiated by or on behalf of a non-resident person who is subject to tax under Part XIII of the Act in respect of such a coupon or warrant.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 50(F)
[Repealed, SOR/2010-93, s. 2][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-866, s. 4; SOR/88-165, s. 31(F); SOR/2010-93, s. 2
Distribution of Taxpayers Portions of Returns
A person who is required by section 200, 201, 202, 203, 204, 212, 214 (other than subsection 214(1.1)), 215 (other than subsection 215(2.1)), 217 or 218, subsection 219(2) or 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer.The copies referred to in subsection (1) shall be sent to the taxpayer at his last known address or delivered to him in person, on or before the date the return is required to be filed with the Minister.A person may send a document, as required under subsection (1), in an electronic format if the person has received the express consent of the taxpayer, and in that case, the person shall send a single copy to the taxpayer, on or before the date on which the return referred to in subsection (1) is to be filed with the Minister.In subsection (3), express consent means consent given in writing or in an electronic format.A person may provide a Statement of Remuneration Paid (T4) information return, a Tuition and Enrolment Certificate, a First Home Savings Account Statement (T4FHSA) information return, a Statement of Pension, Retirement, Annuity, and Other Income (T4A) information return or a Statement of Investment Income (T5) information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unlessthe specified criteria referred to in section 221.01 of the Act are not met;the taxpayer has requested that the information return be provided in paper format; orat the time the return is required to be issued,if the return is a T4, the taxpayer is on extended leave or is no longer an employee of the person, orthe taxpayer cannot reasonably be expected to have access to the information return in electronic format.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-160, s. 1; SOR/87-512, s. 1; SOR/89-519, s. 1; SOR/92-455, s. 1; SOR/93-527, s. 3; SOR/2003-5, s. 4; 2009, c. 2, s. 85; SOR/2010-93, s. 3; 2017, c. 20, s. 31; 2018, c. 27, s. 382022, c. 19, s. 752023, c. 26, s. 992024, c. 15, s. 77
Tax Deduction Information
Every person who makes a payment described in section 153 of the Act (including an amount paid that is described in subparagraph 153(1)(a)(ii) of the Act), or who pays or credits, or is deemed by any of Part I, XIII and XIII.2 of the Act to have paid or credited, an amount described in that section, Part XIII or XIII.2 of the Act, shall, on demand by registered letter from the Minister, make an information return in prescribed form containing the information required in the return and shall file the return with the Minister within such reasonable time as is stipulated in the registered letter.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 31(F); SOR/2011-188, s. 3; 2016, c. 7, s. 56
Accrued Bond Interest
Every financial company making a payment in respect of accrued interest by virtue of redemption, assignment or other transfer of a bond, debenture or similar security (other than an income bond, an income debenture or an investment contract in respect of which subsection 201(4) applies) shall make an information return in prescribed form.The return referred to in subsection (1) shall be forwarded to the Minister on or before the 15th day of the month following the month in which the payment referred to in subsection (1) is made.For the purposes of this section, a financial company includes a bank, an investment dealer, a stockbroker, a trust company and an insurance company.The provisions of subsection (1) do not apply to a payment made by one financial company to another financial company.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 31(F); SOR/91-123, s. 2; SOR/94-686, s. 52(F)
Employees Profit Sharing Plans
Every trustee of an employees profit sharing plan shall make an information return in prescribed form.Notwithstanding subsection (1), the return required under this section may be filed by the employer instead of by the trustee.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 31(F)
Pooled Registered Pension Plans
An administrator of a PRPP must file with the Minister an information return for each calendar year in prescribed form in respect of the PRPPif an agreement concerning annual information returns has been entered into by the Minister and an authority responsible for the supervision of the PRPP under the Pooled Registered Pension Plans Act or a similar law of a province, on or before the day on which an information return required by that authority is to be filed for the calendar year; andin any other case, on or before May 1 of the following calendar year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 31(F); SOR/94-686, s. 79(F); SOR/2010-93, s. 4; 2012, c. 31, s. 59
Registered Retirement Savings Plans
Every person who pays any of the following amounts shall make an information return in prescribed form:an amount that is required by subsection 146(8) of the Act to be included in computing the income of a taxpayer for a taxation year;an amount that is an eligible amount, within the meaning of subsection 146.01(1) of the Act; oran amount that is an eligible amount, within the meaning of subsection 146.02(1) of the Act.The issuer of a registered retirement savings plan shall make an information return in prescribed form for each calendar year containing the total fair market value of all property held by the plan at the end of the year.If, in a taxation year, subsection 146(7), (9) or (10) of the Act or, in relation to a non-qualified investment, subsection 207.04(1) or (4) of the Act applies in respect of a trust governed by a registered retirement savings plan, the trustee of the plan shall make an information return in prescribed form.Where, in respect of an amended plan referred to in subsection 146(12) of the Act, an amount is required to be included in computing the income of a taxpayer for a taxation year, the issuer of the plan shall make an information return in prescribed form.Where subsection 146(8.8) of the Act deems an amount to be received by an annuitant as a benefit out of or under a registered retirement savings plan and such amount is required by subsection 146(8) of the Act to be included in computing the income of that annuitant for a taxation year, the issuer of the plan shall make an information return in prescribed form.If a payment or transfer of property to which paragraph 146(16)(b) of the Act applies is made from a plan, the issuer of the plan shall make an information return in prescribed form in respect of the payment or transfer.Where an amount may be deducted under subsection 146(8.92) of the Act in computing the income of a deceased annuitant under a registered retirement savings plan, the issuer of the plan shall make an information return in prescribed form in respect of the amount.In this section, annuitant and issuer have the meanings assigned by subsection 146(1) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-502, s. 3; SOR/83-866, s. 5; SOR/88-165, s. 31(F); SOR/92-51, s. 3; SOR/2001-188, s. 2; SOR/2003-5, s. 5; SOR/2005-264, s. 1; 2009, c. 2, s. 86; 2011, c. 24, s. 762023, c. 26, s. 100
The issuer of a registered retirement savings plan shall make an information return in prescribed form in respect of the amounts that have been paid by the annuitant, or by the spouse or common-law partner of the annuitant, under the plan in a contribution yearas consideration for any contract referred to in paragraph (a) of the definition retirement savings plan in subsection 146(1) of the Act to pay a retirement income; oras a contribution or deposit referred to in paragraph (b) of that definition for the purpose stated in that paragraph.For greater certainty and for the purposes of subsection (1), amounts that have been paid do not include amounts that have been paid or transferred under the plan in accordance with subsection 146(16) of the Act, or those that have been transferred under the plan in accordance with any of subsections 146(21), 146.3(14), 147(19) or 147.3(1), (4) or (5) to (7) of the Act.The return shall be filed with the Minister on or before the 1st day of May of the year in which the contribution year ends and shall be in respect of the contribution year.The following definitions apply in this section.contribution year means the period beginning on the 61st day of one year and ending on the 60th day of the following year. (année de contribution)issuer has the same meaning as in subsection 146(1) of the Act, with any modifications that the circumstances require. (émetteur)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-123, s. 2
The administrator of a pooled registered pension plan shall make an information return in prescribed form in respect of the amount of contributions made to the account of a member of the plan bythe member in a contribution year; oran employer of the member in the taxation year of the member that ends in the contribution year.For greater certainty and for the purposes of subsection (1), amounts contributed to the member’s account do not include amounts that have been transferred to the account in accordance with any of subsections 146(16) and (21), 146.3(14), 147(19), 147.3(1), (4) and (5) to (7) and 147.5(21) of the Act.The return shall be filed with the Minister on or before the 1st day of May of the year in which the contribution year ends and shall be in respect ofthe contribution year in the case of contributions made by the member; andthe taxation year of the member that ends in the contribution year in the case of contributions made by an employer.The following definitions apply in this section.administrator has the same meaning as in subsection 147.5(1) of the Act. (administrateur)contribution year means the period beginning on the 61st day of one year and ending on the 60th day of the following year. (année de contribution)member has the same meaning as in subsection 147.5(1) of the Act. (participant)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2024-231, s. 4
Registered Retirement Income Funds
In this section, annuitant and carrier have the meanings assigned by subsection 146.3(1) of the Act.Every carrier of a registered retirement income fund who pays out of or under it an amount any portion of which is required under subsection 146.3(5) of the Act to be included in computing the income of a taxpayer shall make an information return in prescribed form in respect of the amount.Every carrier of a registered retirement income fund shall make an information return in prescribed form for each calendar year containing the total fair market value of all property held by the fund at the end of the year.If subsection 146.3(4), (7) or (10) of the Act or, in relation to a non-qualified investment, subsection 207.04(1) or (4) of the Act applies in respect of any transaction or event with respect to property of a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the transaction or event.Where an amount is deemed under subsection 146.3(6) or (12) of the Act to be received by an annuitant out of or under a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the amount.If a transfer of an amount to which subsection 146.3(14) of the Act applies is made from a fund, the carrier of the fund shall make an information return in prescribed form in respect of the transfer.Where an amount may be deducted under subsection 146.3(6.3) of the Act in computing the income of a deceased annuitant under a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the amount.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/84-948, s. 1; SOR/84-967, s. 1; SOR/88-165, s. 31(F); SOR/2003-5, s. 6; SOR/2005-264, s. 2; 2009, c. 2, s. 87; 2011, c. 24, s. 772023, c. 26, s. 101
Advanced Life Deferred Annuity
In this section, designated entity meansan administrator of a registered pension plan;an administrator of a pooled registered pension plan;an issuer of a registered retirement savings plan;a carrier of a registered retirement income fund; anda trustee of a deferred profit sharing plan.A designated entity that transfers an amount to acquire an advanced life deferred annuity for an individual shall make an information return in prescribed form in respect of the year in which the transfer was made.A licensed annuities provider shall make an information return in prescribed form in respect of a year in whicha payment is made that is required by section 146.5 of the Act to be included in computing the income of a taxpayer; ora refund described in paragraph (g) of the definition advanced life deferred annuity in subsection 146.5(1) of the Act was received by a taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-936, s. 3(F); SOR/86-1092, s. 2; SOR/94-686, s. 81(F); 2011, c. 24, s. 782021, c. 23, s. 83
Dispositon of Interest in Annuities and Life Insurance Policies
In this section,disposition has the meaning assigned by subsection 148(9) of the Act and includes anything deemed to be a disposition of a life insurance policy under subsection 148(2) of the Act; (disposition)insurer has the meaning assigned by paragraph 148(10)(a) of the Act; (assureur)life insurance policy[Repealed, SOR/2011-188, s. 4]Where by reason of a disposition of an interest in a life insurance policy an amount is required, pursuant to paragraph 56(1)(j) of the Act, to be included in computing the income of a taxpayer and the insurer that is the issuer of the policy is a party to, or is notified in writing of, the disposition, the insurer shall make an information return in prescribed form in respect of the amount.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-449, s. 4; SOR/84-967, s. 2; SOR/88-165, s. 31(F); SOR/2003-5, s. 7; SOR/2010-93, s. 5(F); SOR/2011-188, s. 4
Patronage Payments
Every person who, within the meaning of section 135 of the Act, makes payments to residents of Canada pursuant to an allocation in proportion to patronage shall make an information return in prescribed form in respect of payments so made.Every person who receives a payment referred to in subsection (1) as nominee or agent for another person resident in Canada shall make an information return in prescribed form in respect of the payment so received.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 31(F)
First Home Savings Account
An issuer of a FHSA shall make an information return for each calendar year in prescribed form and manner in respect of the FHSA.An issuer of a FHSA shall make an information return in prescribed form and manner in respect of any calendar year in which one or more of the following occurs:the holder makes a contribution to the FHSA;an amount has been transferred to the FHSA from an RRSP under which the holder is an annuitant;an amount is required to be included in the income of a taxpayer under section 146.6 of the Act;the holder makes a qualifying withdrawal from the FHSA; orthe holder designates an amount under the definition designated amount in subsection 207.01(1) of the Act.An issuer of a FHSA that governs a trust shall notify the holder of the FHSA in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year,the trust acquires or disposes of property that is a non-qualified investment (as defined in subsection 207.01(1) of the Act) for the trust; orproperty held by the trust becomes or ceases to be a non-qualified investment (as defined in subsection 207.01(1) of the Act) for the trust.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2022, c. 19, s. 76
Cash Bonus Payments on Canada Savings Bonds
Every person authorized to redeem Canada Savings Bonds (in this section referred to as the “redemption agent”) who pays an amount in respect of a Canada Savings Bond as a cash bonus that the Government of Canada has undertaken to pay (other than an amount of interest, bonus or principal agreed to be paid at the time of the issue of the bond under the terms of the bond) shall make an information return in prescribed form in respect of such payment.Every redemption agent required by subsection (1) to make an information return shallissue to the payee, at the time the cash bonus is paid, two copies of the portion of the return relating to him; andfile the return with the Minister on or before the 15th day of the month following the month in which the cash bonus was paid.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 31(F)
Qualified Investments[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-264, s. 3
In this section, reporting person meansa mutual fund corporation;an investment corporation;a mutual fund trust;[Repealed, SOR/2005-264, s. 4]a trust that would be a mutual fund trust if Part XLVIII were read without reference to paragraph 4801(b); or[Repealed, SOR/2005-264, s. 4]a small business investment trust (within the meaning assigned by subsection 5103(1)).[Repealed, SOR/2005-264, s. 4]Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 146.4, 204 or 207.01 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form.[Repealed, SOR/2005-264, s. 4][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-160, s. 2; SOR/88-165, s. 31(F); SOR/94-686, s. 79(F); SOR/2000-62, s. 1; SOR/2001-216, s. 1; SOR/2005-264, s. 4; 2007, c. 35, s. 125; 2009, c. 2, s. 88; SOR/2010-93, s. 6(E); 2017, c. 33, s. 83
The issuer of a RDSP, or the promoter of a RESP, that governs a trust shall notify the holders of the RDSP, or subscribers of the RESP, in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year,the trust acquires or disposes of property that is a not a qualified investment for the trust; orproperty held by the trust becomes or ceases to be a qualified investment for the trust.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2000-62, s. 1; 2017, c. 33, s. 84
TFSAs
An issuer of a TFSA shall make an information return for each calendar year in prescribed form in respect of the TFSA.An issuer of a TFSA who makes a payment of an amount that is required because of paragraph 146.2(9)(b) of the Act to be included in computing the income of a taxpayer for a taxation year shall make an information return in prescribed form.An issuer of a TFSA that governs a trust shall notify the holder of the TFSA in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year,the trust acquires or disposes of property that is a non-qualified investment for the trust; orproperty held by the trust becomes or ceases to be a non-qualified investment for the trust.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-866, s. 6; SOR/86-522, s. 2; SOR/88-165, s. 31(F); 2009, c. 2, s. 89
Canadian Home Insulation Program and Canada Oil Substitution Program
Where an amount has been paid to a person pursuant to a program prescribed for the purposes of paragraphs 12(1)(u), 56(1)(s) and 212(1)(s) of the Act, the payor shallmake an information return in prescribed form in respect of such payment; andforward to the person at his latest known address on or before the date the return is required to be filed with the Minister two copies of the portion of the return relating to that person.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-348, s. 1; SOR/81-936, s. 4; SOR/88-165, s. 31(F)
Certified Films and Video Tapes
Where principal photography or taping of a film or tape (within the meanings assigned by subsection 1100(21)) has occurred during a year or has been completed within 60 days after the end of the year, the producer of the film or tape or production company that produced the film or tape, or an agent of the producer or production company, shallmake an information return in prescribed form in respect of any person who owns an interest in the film or tape at the end of the year; andforward to the person referred to in paragraph (a) at his latest known address on or before the date the return is required to be filed with the Minister two copies of the portion of the return relating to that person.The return required under this section shall be filed on or before March 31st and shall be in respect of the preceding calendar year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/82-182, s. 1; SOR/88-165, s. 31(F)
Scientific Research Tax Credits
In this section,administrator has the meaning assigned by paragraph 47.1(1)(a) of the Act; (administrateur)designated security means a security issued or granted by a corporation in respect of which the corporation has designated an amount pursuant to subsection 194(4) of the Act; (titre désigné)first purchaser in relation to a designated security, means the first person (other than a trader or dealer in securities) to be the registered holder of the designated security; (premier acheteur)security meansa share of the capital stock of a corporation,a debt obligation issued by a corporation, ora right granted by a corporation under a scientific research financing contract; (titre)trader or dealer in securities has the meaning assigned by paragraph 47.1(1)(l) of the Act. (négociant ou courtier en valeurs)Each corporation that has designated an amount under subsection 194(4) of the Act in respect of a security issued or granted by it shall make an information return in prescribed form in respect of each such security.Each trader or dealer in securities who has acquired and disposed of a designated security during the course of the primary distribution thereof pursuant to a public offering shall make an information return in prescribed form in respect of each such designated security.Each bank, credit union and trust company that, as agent, acquired a designated security for the first purchaser thereof shall make an information return in prescribed form in respect of each such designated security.Each trader or dealer in securities who, as administrator of an indexed security investment plan, acquired a designated security for the first purchaser thereof shall make an information return in prescribed form in respect of each such designated security.Notwithstanting subsection 205(1), any return required to be madeunder subsection (2), in respect of a security issued by a corporation before March 1, 1984,under subsection (3), in respect of a designated security disposed of as described in subsection (3) before March 1, 1984, orunder subsection (4) or (5), in respect of a designated security acquired as described in subsection (4) or (5), as the case may be, before March 1, 1984,shall be filed on or before March 31, 1984.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-160, s. 3; SOR/88-165, s. 31(F); SOR/94-686, ss. 52(F), 79(F)
Share Purchase Tax Credits
In this section,administrator has the meaning assigned by paragraph 47.1(1)(a) of the Act; (administrateur)designated share means a share of the capital stock of a corporation in respect of which the corporation has designated an amount pursuant to subsection 192(4) of the Act; (action désignée)first purchaser, in relation to a designated share, means the first person (other than a trader or dealer in securities) to be the registered holder of the share; (premier acheteur)trader or dealer in securities has the meaning assigned by paragraph 47.1(1)(l) of the Act. (négociant ou courtier en valeurs)Each corporation that has designated an amount under subsection 192(4) of the Act in respect of a share issued by it shall make an information return in prescribed form in respect of each such share.Each trader or dealer in securities who has acquired and disposed of a designated share during the course of the primary distribution thereof pursuant to a public offering shall make an information return in prescribed form in respect of each such designated share.Each bank, credit union and trust company that, as agent, acquired a designated share for the first purchaser thereof shall make an information return in prescribed form in respect of each such designated share.Each trader or dealer in securities who, as administrator of an indexed security investment plan, acquired a designated share for the first purchaser thereof shall make an information return in prescribed form in respect of each such designated share.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-160, s. 3; SOR/88-165, s. 31(F); SOR/94-686, ss. 52(F), 79(F)
Resource Flow-Through Shares
Each corporation that has renounced an amount under subsection 66(12.6), (12.601), (12.62) or (12.64) of the Act to a person shall make an information return in prescribed form in respect of the amount renounced.The return required under subsection (1) shall be filed with the Minister together with the prescribed form required to be filed under subsection 66(12.7) of the Act in respect of the amount renounced.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/87-512, s. 2; SOR/94-686, s. 79(F); SOR/96-199, s. 1
Partnership Return[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 78(F)
Every member, of a partnership that carries on a business in Canada at any time in a fiscal period of the partnership (other than a member that is, because of subsection 115.2(2) of the Act, not considered to be carrying on business in Canada at that time), or of a partnership that is at any time in a fiscal period of the partnership, a Canadian partnership or a SIFT partnership, shall make for that period an information return in prescribed form containing the following information:the income or loss of the partnership for the fiscal period;in respect of each member of the partnership who is entitled to a share referred to in paragraph (c) or (d) for the fiscal period, the member’sname,address, andbusiness number, Social Insurance Number or trust account number, as the case may be;the share of each member of the income or loss of the partnership for the fiscal period;the share of each member for the fiscal period of each deduction, credit or other amount in respect of the partnership that is relevant in determining the member’s income, taxable income, tax payable or other amount under the Act;the prescribed information contained in the form prescribed for the purposes of subsection 37(1) of the Act, where the partnership has made an expenditure in respect of scientific research and experimental development in the fiscal period; andsuch other information as may be required by the prescribed form.For the purposes of subsection (1), an information return made by any member of a partnership shall be deemed to have been made by each member of the partnership.Every person who holds an interest in a partnership as nominee or agent for another person shall make an information return in prescribed form in respect of that interest.[Repealed, SOR/93-443, s. 1]Subject to subsection (6), a return required by this section shall be filed with the Minister without notice or demandin the case of a fiscal period of a partnership all the members of which are corporations throughout the fiscal period, within five months after the end of the fiscal period;in the case of a fiscal period of a partnership all the members of which are individuals throughout the fiscal period, on or before the last day of March in the calendar year immediately following the calendar year in which the fiscal period ended or with which the fiscal period ended coincidentally; andin the case of any other fiscal period of a partnership, on or before the earlier ofthe day that is five months after the end of the fiscal period, andthe last day of March in the calendar year immediately following the calendar year in which the fiscal period ended or with which the fiscal period ended coincidentally.Where a partnership discontinues its business or activity, the return required under this section shall be filed, in respect of any fiscal period or portion thereof prior to the discontinuance of the business or activity for which a return has not previously been filed under this section, on or before the earlier ofthe day that is 90 days after the discontinuance of the business or activity, andthe day the return is required to be filed under subsection (5).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-519, s. 2; SOR/93-443, s. 1; SOR/94-686, ss. 53(F), 78(F), 79(F), 81(F); 2007, c. 29, s. 30; 2013, c. 34, s. 377; 2018, c. 12, s. 43
Definitions
The definitions in this subsection apply in this section.public investment partnership, at any time, means a public partnership all or substantially all of the fair market value of the property of which is, at that time, attributable to the fair market value of property of the partnership that isunits of public trusts (as defined in subsection 204.1(1));partnership interests in public partnerships;shares of the capital stock of public corporations; orany combination of properties referred to in paragraphs (a) to (c). (société de personnes de placement ouverte)public partnership, at any time, means a partnership the partnership interests in which are, at that time, listed on a designated stock exchange in Canada if, at that time, the partnership carries on a business in Canada or is a Canadian partnership. (société de personnes ouverte)Required Information DisclosureEvery member of a partnership that is, at any time in a fiscal period of the partnership, a public partnership shall, within the time required by subsection (3),make public, in prescribed form, information in respect of the public partnership for the fiscal period by posting the prescribed form, in a manner that is accessible to the general public, on the Internet website of CDS Innovations Inc.; andnotify the Minister in writing as to when the posting of the prescribed form, as required by paragraph (a), has been made.Required Disclosure TimeThe time required for the members of a public partnership to satisfy the requirements of subsection (2) in respect of the public partnership for a fiscal period of the public partnership issubject to paragraph (b), on or before the day that is the earlier of60 days after the end of the calendar year in which the fiscal period ends, andfour months after the end of the fiscal period; andwhere the public partnership is, at any time in the fiscal period, a public investment partnership, on or before the day that is 67 days after the end of the calendar year in which the fiscal period ends.Obligation Fulfilled by One Partner Deemed Fulfilled by AllEvery member of a partnership that is required to satisfy the requirements of subsection (2) in respect of the partnership for a fiscal period of the partnership will be deemed to have satisfied those requirements if a particular member of the partnership, who has authority to act for the partnership, has satisfied those requirements in respect of the partnership for the fiscal period.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2007, c. 35, s. 73
Security Transactions
In this section,publicly traded means, with respect to any security,a security that is listed or posted for trading on a stock exchange, commodity exchange, futures exchange or any other exchange, ora security in respect of the sale and distribution of which a prospectus, registration statement or similar document has been filed with a public authority; (négocié sur le marché)sale includes the granting of an option and a short sale; (vente)security meansa publicly traded share of the capital stock of a corporation,a publicly traded debt obligation,a debt obligation of or guaranteed bythe Government of Canada,the government of a province or an agent thereof,a municipality in Canada,a municipal or public body performing a function of government in Canada, orthe government of a foreign country or of a political subdivision of a foreign country or a local authority of such a government,a debt obligation that is, at any time, described in paragraph 7000(1)(d),a publicly traded interest in a trust,a publicly traded interest in a partnership,an option or contract in respect of any property described in any of paragraphs (a) to (e), ora publicly traded option or contract in respect of any property including any commodity, financial futures, foreign currency or precious metal or in respect of any index relating to any property; (titre)trader or dealer in securities meansa person who is registered or licensed under the laws of a province to trade in securities, ora person who in the ordinary course of business makes sales of securities as agent on behalf of others. (négociant ou courtier en valeurs)Every trader or dealer in securities who, in a calendar year, purchases a security as principal or sells a security as agent for any vendor shall make an information return for the year in prescribed form in respect of the purchase or sale.Every person (other than an individual who is not a trust) who in a calendar year redeems, acquires or cancels in any manner whatever any securities issued by that person shall make an information return for the year in prescribed form in respect of each such transaction, other than a transaction to which section 51, 51.1, 86 (if there is no consideration receivable other than new shares) or 87 or subsection 98(3) or (6) of the Act applies.Subsection (3) applies toHer Majesty in right of Canada or a province;a municipal or public body performing a function of government in Canada; andan agent of a person referred to in paragraph (a) or (b).Every person who, in the ordinary course of a business of buying and selling precious metals in the form of certificates, bullion or coins, makes a payment in a calendar year to another person in respect of a sale by that other person of any such property shall make an information return for that year in prescribed form in respect of each such sale.Every person who, while acting as nominee or agent for another person in respect of a sale or other transaction to which subsection (2), (3) or (5) applies, receives the proceeds of the sale or other transaction shall, where the transaction is carried out in the name of the nominee or agent, make an information return in prescribed form in respect of the sale or other transaction.This section does not apply in respect ofa purchase of a security by a trader or dealer in securities from another trader or dealer in securities other than a non-resident trader or dealer in securities;a sale of currencies or precious metals in the form of jewellery, works of art or numismatic coins;a sale of precious metals by a person who, in the ordinary course of business, produces or sells precious metals in bulk or in commercial quantities;a sale of securities by a trader or dealer in securities on behalf of a person who is exempt from tax under Part I of the Act; ora redemption by the issuer or an agent of the issuer of a debt obligation wherethe debt obligation was issued for its principal amount,the redemption satisfies all of the issuer’s obligations in respect of the debt obligation,each person with an interest in the debt obligation is entitled in respect thereof to a proportion of all payments of principal equal to the proportion to which the person is entitled of all payments other than principal, andan information return is required under another section of this Part to be made as a result of the redemption in respect of each person with an interest in the debt obligation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-519, s. 2; SOR/94-686, ss. 54(F), 78(F), 79(F); SOR/2003-5, s. 9; 2016, c. 12, s. 75
[Repealed, SOR/2011-188, s. 5][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-519, s. 2; SOR/92-51, s. 8; SOR/2000-248, s. 1; SOR/2001-295, s. 1(E); SOR/2003-5, s. 10; SOR/2011-188, s. 5
Worker’s Compensation
Every person who pays an amount in respect of compensation described in subparagraph 110(1)(f)(ii) of the Act shall make an information return in prescribed form in respect of that payment.Where a worker’s compensation board, or a similar body, adjudicates a claim for compensation described in subparagraph 110(1)(f)(ii) of the Act and stipulates the amount of the award, that board or body shall make an information return in prescribed form in respect of the amount of the award.A return required under this section must be filed on or before the last day of February of each year and shall be in respect ofthe preceding calendar year, if the return is required under subsection (1); andthe amount of the award that pertains to the preceding calendar year, if the return is required under subsection (2).Subsections (1) and (2) are not applicable in respect of a payment or an award in respect ofmedical expenses incurred by or on behalf of the employee;funeral expenses in respect of the employee;legal expenses in respect of the employee;job training or counselling of the employee; orthe death of the employee, other than periodic payments made after the death of the employee.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-455, s. 2
Social Assistance
Every person who makes a payment described in paragraph 56(1)(u) of the Act shall make an information return in prescribed form in respect of the payment.Subsection (1) is not applicable in respect of a payment thatis in respect of medical expenses incurred by or on behalf of the payee;is in respect of child care expenses, as defined in subsection 63(3) of the Act, incurred by or on behalf of the payee or a person related to the payee;is in respect of funeral expenses in respect of a person related to the payee;is in respect of legal expenses incurred by or on behalf of the payee or a person related to the payee;is in respect of job training or counselling of the payee or a person related to the payee;is paid in a particular year as a part of a series of payments, the total of which in the particular year does not exceed $500; oris not a part of a series of payments.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-455, s. 2; SOR/2010-93, s. 7
Farm Support Payments
Every government, municipality or municipal or other public body (in sections 235 and 236 referred to as the “government payer”) or producer organization or association that makes a payment of an amount that is a farm support payment (other than an amount paid out of a net income stabilization account) to a person or partnership shall make an information return in prescribed form in respect of the amount.For the purposes of subsection (1) farm support payment includesa payment that is computed with respect to an area of farm land;a payment that is made in respect of a unit of farm commodity grown or disposed of or a farm animal raised or disposed of; anda rebate of, or compensation for, all or a portion ofa cost or capital cost incurred in respect of farming, orunsowed or unplanted land or crops, or destroyed crops, farm animals or other farm output.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-527, s. 4; SOR/94-686, s. 78(F)
Identifier Information
Every corporation or trust for which an information return is required to be made under these Regulations by a government payer or by a producer organization or association shall provide its legal name, address and income tax identification number to the government payer or the producer organization or association, as the case may be.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-527, s. 4; SOR/94-686, s. 79(F)
Every person who is a member of a partnership for which an information return is required to be made under these Regulations by a government payer or by a producer organization or association shall provide the government payer or the producer organization or association, as the case may be, with the following information:the person’s legal name, address and Social Insurance Number, or, where the person is a trust or is not an individual, the person’s income tax identification number; andthe partnership’s name and business address.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-527, s. 4; SOR/94-686, s. 78(F)
Contract for Goods and Services
The definitions in this subsection apply in this section.federal body means a department or a Crown corporation, within the meaning of section 2 of the Financial Administration Act. (organisme fédéral)payee means a person or partnership to whom an amount is paid or credited in respect of goods for sale or lease, or services rendered, by or on behalf of the person or the partnership. (bénéficiaire)A federal body that pays or credits an amount to a payee shall file an information return in prescribed form in respect of the amount on or before March 31 in each year in respect of the preceding calendar year.Subsection (2) does not apply in respect of an amountall or substantially all of which is paid or credited in the year in respect of goods for sale or lease by the payee;to which section 212 of the Act applies;that is not required to be included in computing the income of the payee, if the payee is an employee of the federal body;that is paid or credited in respect of services rendered outside Canada by a payee who was not resident in Canada during the period in which the services were rendered; orthat is paid or credited in respect of a program administered under the Witness Protection Program Act or any other similar program.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-21, s. 1; SOR/2003-5, s. 11
Reporting of Payments in Respect of Construction Activities
In this section, construction activities includes the erection, excavation, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of all or any part of a building, structure, surface or sub-surface construction, or any similar property.Every person or partnership that pays or credits, in a reporting period, an amount in respect of goods or services rendered on their behalf in the course of construction activities shall make an information return in the prescribed form in respect of that amount, if the person’s or partnership’s business income for that reporting period is derived primarily from those activities.The reporting period may be either on a calendar year basis or a fiscal period basis. Once a period is chosen, it cannot be changed for subsequent years, unless the Minister authorizes it.The return shall be filed within six months after the end of the reporting period to which it pertains.Subsection (2) does not apply in respect of an amountall of which is paid or credited in the reporting period in respect of goods for sale or lease by the person or partnership;to which section 212 of the Act applies; orthat is paid or credited in respect of services rendered outside Canada by a person or partnership who was not resident in Canada during the period in which the services were rendered.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2000-9, s. 1; SOR/2003-5, s. 11
Annuities and Life Insurance PoliciesCapital Element of Annuity Payments
For the purposes of paragraphs 32.1(3)(b) and 60(a) of the Act, where an annuity is paid under a contract (other than an income-averaging annuity contract or an annuity contract purchased pursuant to a deferred profit sharing plan or pursuant to a plan referred to in subsection 147(15) of the Act as a “revoked plan”) at a particular time, that part of the annuity payment determined in prescribed manner to be a return of capital is that proportion of a taxpayer’s interest in the annuity payment that the adjusted purchase price of the taxpayer’s interest in the contract at that particular time is of his interest, immediately before the commencement under the contract of payments to which paragraph 56(1)(d) of the Act applies, in the total of the paymentsto be made under the contract, in the case of a contract for a term of years certain; orexpected to be made under the contract, in the case of a contract under which the continuation of the payments depends in whole or in part on the survival of an individual.For the purposes of subsections (1) and (2), “annuity payment” does not include any portion of a payment under a contract the amount of which cannot be reasonably determined immediately before the commencement of payments under the contract except where the payment of such portion cannot be so determined because the continuation of the annuity payments under the contract depends in whole or in part on the survival of an individual.For the purposes of this section, if the continuance of the annuity payments under a contract depends in whole or in part on the survival of an individual,the total of the payments expected to be made under the contract isin the case of a contract that provides for equal payments and does not provide for a guaranteed period of payment, to be equal to the product obtained by multiplying the total of the annuity payments expected to be received throughout a year under the contract by the complete expectations of life determinedusing the table of mortality known as the 1971 Individual Annuity Mortality Table as published in Volume XXIII of the Transactions of the Society of Actuaries, if the annuity rates in respect of the contract were fixed and determined before 2017, andannuity payments under the contract commenced before 2017, oron December 31, 2016, the contract would be a prescribed annuity contract if paragraph 304(1)(c) were read without reference to its subparagraph (i) and the contract cannot be terminated other than on the death of an individual on whose life payments under the contract are contingent, andin any other case, using the table of mortality known as the Annuity 2000 Basic Table as published in the Transactions of Society of Actuaries, 1995–96 Reports, andin any other case, to be calculated in accordance with subparagraph (i) with such modifications as the circumstances may require;the age of the individual on any particular date as of which a calculation is being made isif the life insured was determined by the insurer that issued the contract to be a substandard life at the time the contract was issued and the Annuity 2000 Basic Table as published in the Transactions of Society of Actuaries, 1995–96 Reports applies to determine the total of the payments expected to be made under the contract, the age that is equal to the total of the age used for the purpose of determining the annuity rate under the policy at the date of issue of the contract and the number determined by subtracting the calendar year in which the contract was issued from the calendar year in which the particular date occurs, andin any other case, determined by subtracting the calendar year of the individual’s birth from the calendar year in which the particular date occurs; andif, in the event of the death of the individual before the annual payments total a stated sum, the contract provides that the unpaid balance of the stated sum is to be paid in a lump sum or instalments, then for the purpose of determining the expected term of the contract, the contract is deemed to provide for the continuance of the payments under the contract for a minimum term certain equal to the nearest whole number of years required to complete the payment of the stated sum.Wherean annuity contract is a life annuity contract entered into before November 17, 1978 under which the annuity payments commence on the death of an individual,[Repealed, SOR/83-865, s. 1]an annuity contract (other than an annuity contract described in paragraph (a)) isa life annuity contract entered into before October 23, 1968, orany other annuity contract entered into before January 4, 1968,under which the annuity payments commenceon the expiration of a term of years, andbefore the later of January 1, 1970 and the tax anniversary date of the annuity contract,the adjusted purchase price of a taxpayer’s interest in the annuity contract shall bethe lump sum, if any, that the person entitled to the annuity payments might have accepted in lieu thereof, at the date the annuity payments commence;if no lump sum described in paragraph (c) is provided for in the contract, the sum ascertainable from the contract as the present value of the annuity at the date the annuity payments commence; andif no lump sum described in paragraph (c) is provided for in the contract and no sum is ascertainable under paragraph (d),in the case of a contract issued under the Government Annuities Act, the premiums paid, accumulated with interest at the rate of four per cent per annum to the date the annuity payments commence, andin the case of any other contract, the present value of the annuity payments at the date on which payments under the contract commence, computed by applyinga rate of interest of four per cent per annum where the payments commence before 1972 and 5 1/2 per cent per annum where the payments commence after 1971, andthe provisions of subsection (2) where the payments depend on the survival of a person.Where an annuity contract would be described in paragraph (3)(b) if the reference in subparagraph (iv) thereof to “before the later of” were read as a reference to “on or after the later of”, the adjusted purchase price of a taxpayer’s interest in the annuity contract at a particular time shall be the greater ofthe aggregate ofthe amount that would be determined in respect of that interest under paragraph (3)(c), (d) or (e), as the case may be, if the date referred to therein was the tax anniversary date of the contract and not the date the annuity payments commence, andthe adjusted purchase price that would be determined in respect of that interest if the expression “before that time” in the descriptions of A, B, C, D and H in the definition adjusted cost basis in subsection 148(9) of the Act were read as “before that time and after the tax anniversary date”; andthe amount determined under paragraph (2)(b) in respect of that interest.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/82-499, s. 1; SOR/82-874, s. 1(E); SOR/83-865, s. 1; SOR/2001-216, s. 10(F); SOR/2011-188, s. 6; 2014, c. 39, s. 79
Life Annuity Contracts
For the purposes of this Part and section 148 of the Act, life annuity contract means a contract under which a person authorized under the laws of Canada or of a province to carry on in Canada an annuities business agrees to make annuity payments to one person or partnership (in this section referred to as “the annuitant”) or jointly to two or more annuitants, which annuity payments are, under the terms of the contract,to be paid annually or at more frequent periodic intervals;to commence on a specified day; andto continue throughout the lifetime of one or more individuals (each of whom is referred to in this section as “the identified individual”).For the purposes of subsection (1), a contract shall not fail to be a life annuity contract by reason thatthe contract provides that the annuity payments may be assigned by the annuitant or owner;the contract provides for annuity payments to be made for a period ending on the death of the identified individual or for a specified period of not less than 10 years, whichever is the lesser;the contract provides for annuity payments to be made for a specified period or throughout the lifetime of the identified individual, whichever is longer, to the annuitant and, if the specified period is longer, to a specified person after that period;the contract provides, in addition to the annuity payments to be made throughout the lifetime of the identified individual, for a payment to be made on the death of the identified individual;the contract provides that the dateon which the annuity payments commence, oron which the contract holder becomes entitled to proceeds of the disposition,may be changed with respect to the whole contract or any portion thereof at the option of the annuitant or owner; orthe contract provides that all or a portion of the proceeds payable at any particular time under the contract may be received in the form of an annuity contract other than a life annuity contract.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-341, s. 1; SOR/82-499, s. 2; SOR/83-865, s. 2; SOR/2011-188, s. 7
[Repealed, SOR/83-865, s. 3][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-865, s. 3
Where in a taxation year the rights of a holder under an annuity contract cease upon termination or cancellation of the contract andthe aggregate of all amounts, each of which is an amount in respect of the contract that was included in computing the income of the holder for the year or any previous taxation year by virtue of subsection 12(3) of the Actexceeds the aggregate ofsuch proportion of the amount determined under paragraph (a) that the annuity payments made under the contract before the rights of the holder have ceased is of the total of the payments expected to be made under the contract, andthe aggregate of all amounts, each of which is an amount in respect of the contract that was deductible in computing the income of the holder for the year or any previous year by virtue of subsection (2),the amount of such excess may be deducted by the holder under subsection 20(19) of the Act in computing his income for the year.For the purposes of subsection 20(19) of the Act, where an annuity contract was acquired after December 19, 1980 and annuity payments under the contract commenced before 1982, the amount that may be deducted by a holder under that subsection in respect of an annuity contract for a taxation year is that proportion ofthe aggregate of all amounts, each of which is an amount that was included in computing the income of the holder for any previous taxation year by virtue of subsection 12(3) of the Act in respect of the contractthatthe aggregate of all annuity payments received by the holder in the year in respect of the contractis ofthe total of the payments determined under paragraph 300(1)(a) or (b) in respect of the holder’s interest in the contract.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/82-499, s. 3; SOR/83-865, s. 4
Prescribed Annuity Contracts
For the purposes of this Part and of subsections 12.2(1) and 20(20) and paragraph 148(2)(b) of the Act, prescribed annuity contract, for a taxation year, meansan annuity contract that is, or is issued pursuant to, an arrangement described in any of paragraphs 148(1)(a) to (b.4) and (d) of the Act;an annuity contract described in paragraph 148(1)(c) or (e) of the Act; andan annuity contractunder which annuity payments have commenced in the taxation year or a preceding taxation year,issued by any one of the following (referred to in this section as the “issuer”):a life insurance corporation,a registered charity,a corporation referred to in any of paragraphs (a) to (c) of the definition specified financial institution in subsection 248(1) of the Act,a corporation referred to in subparagraph (b)(ii) of the definition retirement savings plan in subsection 146(1) of the Act, anda corporation (other than a mutual fund corporation or a mortgage investment corporation) the principal business of which is the making of loans,each holder of whichisan individual other than a trust,a trust described in paragraph 104(4)(a) of the Act (in this paragraph referred to as a “specified trust”),a trust that is a qualified disability trust (as defined in subsection 122(3) of the Act) for the taxation year in which the annuity is issued, orif the annuity is issued before 2016, a trust that is a testamentary trust at the time the annuity is issued,is an annuitant under the contract, andthroughout the taxation year, dealt at arm’s length with the issuer,the terms and conditions of which require that, from the time the contract meets the requirements of this paragraph,all payments made out of the contract be equal annuity payments made at regular intervals but not less frequently than annually, subject to the holder’s right to vary the frequency and quantum of payments to be made out of the contract in any taxation year without altering the present value at the beginning of the year of the total payments to be made in that year out of the contract,the annuity payments thereunder continue for a fixed term orif the holder is an individual (other than a trust), for the life of the first holder or until the day of the later of the death of the first holder and the death of any of the spouse, common-law partner, former spouse, former common-law partner, brothers and sisters (in this subparagraph referred to as “the survivor”) of the first holder, orif the holder is a trustin the case of a specified trust, for the life of an individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death, or, in the case of a joint spousal or common-law partner trust, until the day of the later of the death of the individual and the death of the beneficiary under the trust who is the individual’s spouse or common-law partner,in the case of a qualified disability trust, for the life of an individual who is an electing beneficiary (as defined in subsection 122(3) of the Act) of the trust for the taxation year in which the annuity is issued,in the case of a trust (other than a qualified disability trust or specified trust) where the annuity is issued before October 24, 2012, for the life of an individual who is entitled to receive income from the trust, andin the case of a trust (other than a qualified disability trust or specified trust) where the annuity is issued after October 23, 2012, for the life of an individual who was entitled when the contract was first held to receive all of the trust’s income that is from an amount received by the trust on or before the individual’s death as a payment under the annuity,if the annuity payments are to be made over a term that is guaranteed or fixed, the guaranteed or fixed term not exceed 91 years minus the age, when the contract was first held, in whole years of the following individual:if the holder is not a trust, the individual who isin the case of a joint and last survivor annuity, the younger of the first holder and the survivor,in the case of a contract that is held jointly, the younger of the first holders, andin any other case, the first holder,if the holder is a specified trust, the individual who isin the case of a joint and last survivor annuity held by a joint spousal or common-law partner trust, the younger of the individuals referred to in paragraph 104(4)(a) of the Act who are in combination entitled to receive all of the income of the trust that arose before the later of their deaths, andin the case of an annuity that is not a joint and last survivor annuity, the individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death,if the holder is a qualified disability trust, an individual who is an electing beneficiary of the trust for the taxation year in which the annuity is issued, andif the holder is a trust (other than a qualified disability trust or specified trust) and the annuity is issued before 2016, the individual who was the youngest beneficiary under the trust when the contract was first held,no loans exist under the contract,the holder’s rights under the contract not be disposed of otherwise thanif the holder is an individual, on the holder’s death,if the holder is a specified trust (other than a joint spousal or common-law partner trust), on the death of the individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death,if the holder is a specified trust that is a joint spousal or common-law partner trust, on the later of the deaths of the individuals referred to in paragraph 104(4)(a) of the Act who are in combination entitled to receive all of the income of the trust that arose before the later of their deaths, andif the holder is a trust, other than a specified trust, and the contract is first held after October 2011, on the earlier ofthe time at which the trust ceases to be a testamentary trust, andthe death of the individual referred to in subclause (B)(II) or (C)(III) or (IV), as the case may be, in respect of the trust, andno payments be made out of the contract other than as permitted by this section,none of the terms and conditions of which provide for any recourse against the issuer for failure to make any payment under the contract, andwhere annuity payments under the contract have commencedbefore 1987, in respect of which a holder thereof has notified the issuer in writing, before the end of the taxation year, that the contract is to be treated as a prescribed annuity contract,after 1986, in respect of which a holder thereof has not notified the issuer in writing, before the end of the taxation year in which the annuity payments under the contract commenced, that the contract is not to be treated as a prescribed annuity contract, orafter 1986, in respect of which a holder thereof has notified the issuer in writing, before the end of the taxation year in which the annuity payments under the contract commenced, that the contract is not to be treated as a prescribed annuity contract and a holder thereof has rescinded the notification by so notifying the issuer in writing before the end of the taxation year.Notwithstanding subsection (1), an annuity contract shall not fail to be a prescribed annuity contract by reason thatwhere the contract provides for a joint and last survivor annuity or is held jointly, the terms and conditions thereof provide that there will be a decrease in the amount of the annuity payments to be made under the contract from the time of death of one of the annuitants thereunder;the terms and conditions thereof provide that where the holder thereof dies at or before the time he attains the age of 91 years, the contract will terminate and an amount will be paid out of the contract not exceeding the amount, if any, by which the total premiums paid under the contract exceeds the total annuity payments made under the contract;where the annuity payments are to be made over a term that is guaranteed or fixed, the terms and conditions thereof provide that as a consequence of the death of the holder thereof during the guaranteed or fixed term any payments that, but for the death of the holder, would be made during the term may be commuted into a single payment; orthe terms and conditions thereof, as they read on December 1, 1982 and at all subsequent times, provide that the holder participates in the investment earnings of the issuer and that the amount of such participation is to be paid within 60 days after the end of the year in respect of which it is determined.For the purposes of this section, the annuitant under an annuity contract is deemed to be the holder of the contract wherethe contract is held by another person in trust for the annuitant; orthe contract was acquired by the annuitant under a group term life insurance policy under which life insurance was effected on the life of another person in respect of, in the course of, or by virtue of the office or employment or former office or employment of that other person.In this section, annuitant under an annuity contract, at any time, means a person who, at that time, is entitled to receive annuity payments under the contract.For the purpose of this section, spouse and former spouse of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/82-499, s. 3; SOR/83-865, s. 5; SOR/86-488, s. 1; SOR/88-165, s. 2; SOR/88-319, s. 1; SOR/94-415, s. 1; SOR/94-686, s. 2(F); SOR/2001-188, s. 3; SOR/2001-216, s. 10(F); SOR/2007-116, s. 1; 2009, c. 2, s. 90; SOR/2009-222, s. 1; SOR/2011-188, s. 8; 2012, c. 31, s. 60; 2013, c. 34, s. 378; 2014, c. 39, s. 802024, c. 15, s. 78
[Repealed, SOR/2011-188, s. 9][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-865, s. 5; SOR/2011-188, s. 9
Exempt Policies
For the purposes of this Part and subsection 12.2(11) of the Act, exempt policy at any time means a life insurance policy (other than an annuity contract, LIA policy or a deposit administration fund policy) in respect of which the following conditions are met at that time:if that time is a policy anniversary of the policy, the accumulating fund of the policy at that time (determined without regard to any policy loan) does not exceed the total of the accumulating funds at that time of the exemption test policies issued at or before that time in respect of the policy;assuming that the terms and conditions of the policy do not change from those in effect on the last policy anniversary of the policy at or before that time and, where necessary, making reasonable assumptions about all other factors (including, in the case of a participating life insurance policy within the meaning assigned by subsection 138(12) of the Act, the assumption that the amounts of dividends paid will be as shown in the dividend scale),if the policy is issued before 2017, it is reasonable to expect that the condition in paragraph (a) will be met on each policy anniversary of the policy on which the policy could remain in force after that time and before the endowment date of the exemption test policies issued in respect of the policy, andif the policy is issued after 2016, it is reasonable to expect — without reference to any automatic adjustments under the policy that may be made after that time to ensure that the policy is an exempt policy and, where applicable, making projections using the most recent values that are used to calculate the accumulating fund in respect of the policy or in respect of each exemption test policy issued in respect of a coverage under the policy, as the case may be — that the condition in paragraph (a) will be met on the policy’s next policy anniversary;the condition in paragraph (a) was met on all policy anniversaries of the policy before that time; andthe condition in paragraph (b) was met at all times on and after the first policy anniversary of the policy and before that time.For the purposes of subsection (1), a life insurance policy that is an exempt policy on its first policy anniversary shall be deemed to have been an exempt policy from the time of its issue until that anniversary.For the purposes of this section and section 307,in the case of a life insurance policy issued before 2017, a separate exemption test policy is deemed, subject to subsection (7), to be issued in respect of the life insurance policyon the date of issue of the life insurance policy, andon each policy anniversary of the life insurance policy on whichthe amount of the benefit on death under the life insurance policyexceeds108% of the amount of the benefit on death under the life insurance policy on the later of the life insurance policy’s date of issue and the date of the life insurance policy’s preceding policy anniversary, if any; andin the case of a life insurance policy issued after 2016, a separate exemption test policy is deemed, subject to subsection (7), to be issued in respect of each coverage under the life insurance policyon the date ofissue of the life insurance policy, if the coverage is issued before the first policy anniversary of the life insurance policy,issue of the coverage, if the coverage is issued on a policy anniversary of the life insurance policy, orthe life insurance policy’s preceding policy anniversary, if the coverage is issued on any date that is after the policy’s first policy anniversary and that is not a policy anniversary,on each policy anniversary of the life insurance policy on whichthe amount of the benefit on death under the coverage on that policy anniversaryexceeds108% of the amount of the benefit on death under the coverage, on the later of the coverage’s date of issue and the date of the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the coverage’s date of issue), andon each policy anniversary of the life insurance policy — except to the extent that another exemption test policy has been issued on that date under this subparagraph in respect of a coverage under the life insurance policy — on whichthe amount by which the fund value benefit under the life insurance policy on that policy anniversary exceeds the fund value benefit under the life insurance policy on the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the date of issue of the policy)exceedsthe amount by which8% of the amount of the benefit on death under the life insurance policy on the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the date of issue of the policy)exceedsthe total of all amounts each of which is, in respect of a coverage under the policy, the lesser ofthe amount by which the amount of the benefit on death under the coverage on that policy anniversary exceeds the amount of the benefit on death under the coverage on the later of the coverage’s date of issue and the date of the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the coverage’s date of issue), and8% of the amount of the benefit on death under the coverage on the later of the coverage’s date of issue and the date of the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the coverage’s date of issue).For the purpose of determining whether the condition in paragraph (1)(a) is met on a policy anniversary of a life insurance policy, each exemption test policy issued in respect of the life insurance policy, or in respect of a coverage under the life insurance policy, is deemedto have a benefit on death that is uniform throughout the term of the exemption test policy and that, subject to subsection (5), is equal toif the date on which the exemption test policy is issued is determined by subparagraph (3)(a)(i), the amount by which the amount on that policy anniversary of the benefit on death under the life insurance policy exceeds the total of all amounts each of which is the amount, if any, on that policy anniversary of the benefit on death under another exemption test policy issued on or before that policy anniversary in respect of the life insurance policy,if the date on which the exemption test policy is issued is determined by subparagraph (3)(a)(ii), the amount of the excess referred to in that subparagraph on that date in respect of the life insurance policy,if the date on which the exemption test policy is issued is determined by subparagraph (3)(b)(i), the amount determined by the formulaA + B – CwhereAis the amount on that policy anniversary of the benefit on death under the coverage,Bisif the benefit on death under the life insurance policy includes a fund value benefit on that policy anniversary, the portion of the fund value benefit on that policy anniversary that is equal to the lesser ofthe maximum amount of the fund value benefit that could be payable on that policy anniversary if no other coverage were offered under the life insurance policy and the life insurance policy were an exempt policy, andthe amount by which the fund value benefit on that policy anniversary exceeds the total of all amounts each of which is the portion of the fund value benefit allocated to other coverages under the life insurance policy, andin any other case, nil, andCis the total of all amounts each of which is the amount, if any, on that policy anniversary of the benefit on death under another exemption test policy issued on or before that policy anniversary in respect of the coverage,if the date on which the exemption test policy is issued is determined by subparagraph (3)(b)(ii), the amount of the excess referred to in that subparagraph on that date in respect of the coverage, andif the date on which the exemption test policy is issued is determined by subparagraph (3)(b)(iii), the lesser ofthe amount by which the amount determined under clause (3)(b)(iii)(A) exceeds the amount determined under clause (3)(b)(iii)(B) on that date in respect of the coverage, andthe amount determined in respect of the coverage under subclause (A)(I) of the description of B in subparagraph (iii) on that date; andto pay the amount of its benefit on death on the earlier ofif the life insurance policyis issued before 2017, the date of death of the individual whose life is insured under the life insurance policy, oris issued after 2016,if two or more lives are jointly insured under the coverage, the date at which the benefit would be payable as a result of the death of any of the lives, andin any other case, the date of death of the individual whose life is insured under the coverage, andthe exemption test policy’s endowment date.For the purpose of determining the amount of a benefit on death under an exemption test policy,if the exemption test policy is issued in respect of a life insurance policy issued before 2017 and at any time the amount of a benefit on death under the life insurance policy is reduced, a particular amount that is equal to the reduction is to be applied at that time to reduce the amount of the benefit on death under each exemption test policy issued before that time in respect of the life insurance policy (other than the exemption test policy the date of issue of which is determined under subparagraph (3)(a)(i)) in the order in which the dates of their issuance are proximate to that time, by an amount equal to the lesser ofthe portion, if any, of the particular amount not applied to reduce the benefit on death under one or more other such exemption test policies, andthe amount, immediately before that time, of the benefit on death under the relevant exemption test policy; andif the exemption test policy is issued in respect of a coverage under a life insurance policy issued after 2016 and at any time there is a particular reduction in the amount of a benefit on death under the coverage, or the portion, if any, of the fund value benefit referred to in clause (A) of the description of B in subparagraph (4)(a)(iii) in respect of the coverage, the amount of the benefit on death under each exemption test policy issued before that time in respect of the coverage (other than the exemption test policy the date of issue of which is determined under subparagraph (3)(b)(i)) is reduced at that time by an amount equal to the least ofthe particular reduction,the amount, immediately before that time, of the benefit on death under the relevant exemption test policy, andthe portion, if any, of the particular reduction not applied to reduce the benefit on death under one or more other such exemption test policies issued on or after the date of issue of the relevant exemption test policy.Subsection (7) applies at any time in respect of a life insurance policy ifthat time is on its tenth or a later policy anniversary;the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds 250% ofin the case where the particular time at which the policy is issued is determined under subsection 148(11) of the Act and the policy’s third preceding policy anniversary is before the particular time, the accumulating fund (computed without regard to any amount payable in respect of a policy loan and as though the policy were issued after 2016) in respect of the policy on that third preceding policy anniversary, andin any other case, the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy on its third preceding policy anniversary; andwhere that time is after 2016,the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds the total of all amounts each of which isif the policy is issued before 2017, 3/20 of the accumulating fund, at that time, in respect of an exemption test policy issued in respect of the policy, andif the policy is issued after 2016, 3/8 of the accumulating fund, at that time, in respect of an exemption test policy issued in respect of a coverage under the policy, andsubsection (7) did not apply on any of the policy’s six preceding policy anniversaries.If this subsection applies at any time in respect of a life insurance policy, each exemption test policy issued before that time in respect of the life insurance policy is at and after that time deemed to be issued (except for purposes of this subsection, paragraph (4)(a) and subsection (5))on the later ofthe date of the third preceding policy anniversary described in paragraph (6)(b) in respect of the policy, andthe date on which it was deemed by subsection (3) or (10), as the case may be, to be issued (determined immediately before that time); andnot at any other time.A life insurance policy that would, in the absence of this subsection, cease (other than by reason of its conversion into an annuity contract) on a policy anniversary of the policy to be an exempt policy is deemed to be an exempt policy on that policy anniversary ifhad that policy anniversary occurred on the particular day that is 60 days after that policy anniversary, the policy would have been an exempt policy on the particular day; orthe person whose life is insured under the policy dies on that policy anniversary or within 60 days after that policy anniversary.A life insurance policy (other than an annuity contract or deposit administration fund policy) issued before December 2, 1982 is deemed to be an exempt policy at all times from the date of its issue until the first time after December 1, 1982 at whicha prescribed premium is paid by a taxpayer in respect of an interest, last acquired before December 2, 1982, in the policy; oran interest in the policy is acquired by a taxpayer from the person who held the interest continuously since December 1, 1982.Notwithstanding subsections (3) and (4), if a life insurance policy is issued for any purpose at a particular time determined under subsection 148(11) of the Act, then for the purposes of applying this section (other than this subsection and subsection (9)) and section 307 in respect of the life insurance policy at and after the particular time,in respect of each coverage issued before the particular time under the life insurance policy, a separate exemption test policy is deemed to be issued in respect of a coverage under the life insurance policyon the date of issue of the life insurance policy, andon each policy anniversary that ends before the particular time of the life insurance policy on whichthe amount of the benefit on death under the life insurance policyexceeds108% of the amount of the benefit on death under the life insurance policy on the later of the life insurance policy’s date of issue and the date of the life insurance policy’s preceding policy anniversary, if any;in respect of each coverage issued before the particular time under the life insurance policy, subsection (3) does not apply to deem an exemption test policy to be issued in respect of the policy, or in respect of a coverage under the policy, at any time before the particular time;in respect of each exemption test policy the date of issuance of which is determined under subparagraph (a)(i), the references in subparagraph (4)(a)(iii) and paragraph (5)(b) to “subparagraph (3)(b)(i)” are to be read as references to “subparagraph (10)(a)(i)”;in respect of each exemption test policy the date of issuance of which is determined under subparagraph (a)(ii), subparagraph (4)(a)(iv) is to be read as follows:if the date on which the exemption test policy is issued is determined by subparagraph (10)(a)(ii) at a time before a particular time, the portion of the amount – that amount being the amount that would be determined, at the time immediately before the particular time, under subparagraph (a)(ii), if the exemption test policy were issued in respect of the policy on the same date as the date determined for it under subparagraph (10)(a)(ii) – that can be reasonably allocated to the coverage in the circumstances (and for these purposes, an allocation is considered not to be reasonable if the total of the amounts determined for A and B in subparagraph (a)(iii) is less than the amount determined for C in that subparagraph in respect of the exemption test policy the date of issuance of which is determined under subparagraph (10)(a)(i) in respect of the coverage), andandin applying paragraph (5)(b), the reference in that paragraph to “any time” is to be read as “any time at or after the particular time referred to in subsection (10) in respect of the life insurance policy”.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-865, s. 5; SOR/94-415, s. 2; SOR/94-686, ss. 55(F), 56(F); 2013, c. 40, s. 97; 2014, c. 39, s. 81; 2017, c. 33, s. 85
Accumulating Funds
For the purposes of this Part and sections 12.2 and 148 of the Act, accumulating fund, at any particular time, meansin respect of a taxpayer’s interest in an annuity contract (other than a contract issued by a life insurer), the amount that is the greater ofthe amount, if any, by which the cash surrender value of the taxpayer’s interest at that time exceeds the amount payable, if any, in respect of a loan outstanding at that time made under the contract in respect of the interest, andthe amount, if any, by whichthe present value at that time of future payments to be made out of the contract in respect of the taxpayer’s interestexceedsthe total ofthe present value at that time of future premiums to be paid under the contract in respect of the taxpayer’s interest, andthe amount payable, if any, in respect of a loan outstanding at that time, made under the contract in respect of the taxpayer’s interest;in respect of a taxpayer’s interest in a life insurance policy (other than an exemption test policy or an annuity contract to which paragraph (1)(a) applies), the product obtained when,where the policy is not a deposit administration fund policy and the particular time is immediately after the death of any person on whose life the life insurance policy is issued or effected, the aggregate of the maximum amounts that could be determined by the life insurer immediately before the death in respect of the policy under paragraph 1401(1)(c) and subparagraph 1401(1)(d)(i) if the mortality rates used were adjusted to reflect the assumption that the death would occur at the time and in the manner that it did occur, andin any other case, the maximum amount that could be determined at that particular time by the life insurer under paragraph 1401(1)(a), computed as though there were only one deposit administration fund policy, or under paragraph 1401(1)(c), as the case may be, in respect of the policyis multiplied bythe taxpayer’s proportionate interest in the policy; andin respect of an exemption test policy,if the particular time is during the exemption test policy’s pay period, the amount determined by the formulaA × B/CwhereAis the amount that would be determined under subparagraph (ii) in respect of the exemption test policyif the exemption test policy’s pay period is determined by subparagraph (b)(i) or (ii) of the definition pay period in section 310, on the first policy anniversary that is on or after the day on which the individual whose life is insured would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, andin any other case, on the exemption test policy’s policy anniversary represented by the adjectival form of the number of years in its pay period,Bis the number of years since the exemption test policy was issued, andCis the number of years in the exemption test policy’s pay period,if the particular time is after the exemption test policy’s pay period and before its endowment date, the amount that is the present value at the particular time of the future benefit on death under the exemption test policy, andif the particular time is on or after the exemption test policy’s endowment date and the relevant life insurance policy is issued after 2016, the amount that is the benefit on death under the exemption test policy at the particular time.For the purposes of subsection (1), when computing the accumulating fund in respect ofan interest described in paragraph (1)(a), the amounts determined under clauses (1)(a)(ii)(A) and (B) are to be computed using,where an interest rate for a period used by the issuer when the contract was issued in determining the terms of the contract was less than any rate so used for a subsequent period, the single rate that would, if it applied for each period, have produced the same terms, andin any other case, the rates used by the issuer when the contract was issued in determining the terms of the contract;an interest described in paragraph (1)(b) in respect of a life insurance policy issued before 2017 or an annuity contract, if an interest rate used for a period by a life insurer in computing the relevant amounts in paragraph 1403(1)(a) or (b) is determined under paragraph 1403(1)(c), (d) or (e), as the case may be, and that rate is less than an interest rate so determined for a subsequent period, the single rate that could, if it applied for each period, have been used in determining the premiums for the policy is to be used;an exemption test policy issued in respect of a life insurance policy issued before 2017,the rates of interest and mortality used and the age of the person whose life is insured shall be the same as those used in computing the amounts described in paragraph 1403(1)(a) or (b) in respect of the life insurance policy in respect of which the exemption test policy was issued except thatwhere the life insurance policy is one to which paragraph 1403(1)(e) applies and the amount determined under subparagraph 1401(1)(c)(i) in respect of that policy is greater than the amount determined under subparagraph 1401(1)(c)(ii) in respect thereof, the rates of interest and mortality used may be those used in computing the cash surrender values of that policy, andwhere an interest rate for a period otherwise determined under this subparagraph in respect of that interest is less than an interest rate so determined for a subsequent period, the single rate that could, if it applied for each period, have been used in determining the premiums for the life insurance policy shall be used, andnotwithstanding subparagraph (i),where the rates referred to in subparagraph (i) do not exist, the minimum guaranteed rates of interest used under the life insurance policy to determine cash surrender values and the rates of mortality under the Commissioners 1958 Standard Ordinary Mortality Table, as published in Volume X of the Transactions of the Society of Actuaries, relevant to the person whose life is insured under the life insurance policy shall be used, orwhere, in respect of the life insurance policy, the particular period over which the amount determined under clause (B) of the description of A in subparagraph 1401(1)(c)(ii) does not extend to the exemption test policy’s endowment date, the weighted arithmetic mean of the interest rates used to determine the amount is to be used for the period that is after the particular period and before that date,notwithstanding subparagraphs (i) and (ii), no rate of interest used for the purpose of determining the accumulating fund in respect of an exemption test policy issued in respect of the life insurance policy is to be less thanif the life insurance policy is issued after April 1985, 4% per annum, andif the life insurance policy is issued before May 1985, 3% per annum, andeach amount of a benefit on death is to be determined net of any portion in respect of the benefit on death of the exemption test policy related to a segregated fund; andan exemption test policy issued in respect of a coverage under a life insurance policy issued after 2016,the rates of interest and mortality used and the age of the individual whose life is insured under the coverage are to be the same as those used in computing amounts under paragraph 1401(1)(c) in respect of the policy, andeach amount of a benefit on death is to be determined net of any portion in respect of the benefit on death of the exemption test policy related to a segregated fund.[Repealed, 2014, c. 39, s. 82]In this section, any amount determined by reference to section 1401 shall be determinedwithout regard to section 1402; andas if each reference to “policy loan” in section 1401 were read as a reference to “policy loan, as defined in subsection 148(9) of the Act,”.[Repealed, 2014, c. 39, s. 82][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-865, s. 5; SOR/84-948, s. 2; SOR/91-290, s. 1; SOR/94-686, ss. 3(F), 55(F); SOR/2011-188, s. 10; 2014, c. 39, s. 82
Net Cost of Pure Insurance and Mortality Gains and Losses
For the purposes of subparagraph 20(1)(e.2)(ii) and paragraph (a) of the description of L in the definition adjusted cost basis in subsection 148(9) of the Act, the net cost of pure insurance for a year in respect of a taxpayer’s interest in a life insurance policy isif, determined at the end of the year, the policy was issued before 2017, the amount determined by the formulaA × (B – C)whereAis the probability, computed on the basis of the rates of mortality under the 1969–75 mortality tables of the Canadian Institute of Actuaries published in Volume XVI of the Proceedings of the Canadian Institute of Actuaries, or on the basis described in subsection (1.1), that an individual who has the same relevant characteristics as the individual whose life is insured will die in the year,Bis the benefit on death in respect of the interest at the end of the year, andCis the accumulating fund (determined without regard to any amount payable in respect of the policy loan) in respect of the interest at the end of the year or the interest’s cash surrender value at the end of the year, depending on the method regularly followed by the life insurer in computing amounts under this subsection; andif, determined at the end of the year, the policy was issued after 2016, the total of all amounts each of which is an amount determined in respect of a coverage in respect of the interest by the formulaA × (B – C)whereAis the probability, computed on the basis of the rates of mortality determined in accordance with paragraph 1401(4)(b), or on the basis described in subsection (1.2), that an individual whose life is insured under the coverage will die in the year,Bis the benefit on death under the coverage in respect of the interest at the end of the year, andCis the amount determined by the formulaD + EwhereDis the portion, in respect of the coverage in respect of the interest, of the amount that would be the present value, determined for the purposes of section 307, on the last policy anniversary that is on or before the last day of the year, of the fund value of the coverage if the fund value of the coverage were equal to the fund value of the coverage at the end of the year, andEis the portion, in respect of the coverage in respect of the interest, of the amount that would be determined, on that policy anniversary, for paragraph (a) of the description of C in the definition net premium reserve in subsection 1401(3) in respect of the coverage, if the benefit on death under the coverage, and the fund value of the coverage, on that policy anniversary were equal to the benefit on death under the coverage and the fund value of the coverage, respectively, at the end of the year.If premiums for a life insurance policy do not depend directly on smoking or sex classification, the probability referred to in paragraph (1)(a) may be determined using rates of mortality otherwise determined, provided that for each age for the policy, the expected value of the aggregate net cost of pure insurance, calculated using those rates of mortality, is equal to the expected value of the aggregate net cost of pure insurance, calculated using the rates of mortality under the 1969–75 mortality tables of the Canadian Institute of Actuaries published in Volume XVI of the Proceedings of the Canadian Institute of Actuaries.If premiums or costs of insurance charges for a coverage under a life insurance policy do not depend directly on smoking or sex classification, the probability referred to in paragraph (1)(b) may be determined using rates of mortality otherwise determined, provided that for each age for the coverage, the expected value of the aggregate net cost of pure insurance, calculated using those rates of mortality, is equal to the expected value of the aggregate net cost of pure insurance, calculated using the rates of mortality that would be calculated under paragraph (1)(b) in respect of the coverage using the mortality tables described in paragraph 1401(4)(b).Subject to subsection (4), for the purposes of this section and of the description of G in the definition adjusted cost basis in subsection 148(9) of the Act, a mortality gain immediately before the end of any calendar year after 1982 in respect of a taxpayer’s interest in a life annuity contract means such reasonable amount in respect of the taxpayer’s interest in the life annuity contract at that time that the life insurer determines to be the increase to the accumulating fund in respect of the interest that occurred during that year as a consequence of the survival to the end of the year of one or more of the annuitants under the life annuity contract.Subject to subsection (4), for the purposes of this section and of paragraph (c) of the description of L in the definition adjusted cost basis in subsection 148(9) of the Act, a mortality loss immediately before a particular time after 1982 in respect of an interest in a life annuity contract disposed of immediately after that particular time as a consequence of the death of an annuitant under the life annuity contract means such reasonable amount that the life insurer determines to be the decrease, as a consequence of the death, in the accumulating fund in respect of the interest assuming that, in determining such decrease, the accumulating fund immediately after the death is determined in the manner described in subparagraph 307(1)(b)(i).In determining an amount for a year in respect of an interest in a life annuity contract under subsection (2) or (3), the expected value of the mortality gains in respect of the interest for the year shall be equal to the expected value of the mortality losses in respect of the interest for the year and the mortality rates for the year used in computing those expected values shall be those that would be relevant to the interest and that are specified under such of paragraphs 1403(1)(c), (d) and (e) as are applicable.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-865, s. 5; SOR/91-290, s. 2; SOR/94-415, s. 3; SOR/94-686, s. 55(F); SOR/2011-188, s. 11; 2014, c. 39, s. 83
Prescribed Premiums and Prescribed Increases[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2011-188, s. 12(F)
For the purposes of this section and section 306, and of subsection 89(2) of the Act, a premium at any time under a life insurance policy is a “prescribed premium” if the total amount of one or more premiums paid at that time under the policy exceeds the amount of premium that, under the policy, was scheduled to be paid at that time and that was fixed and determined on or before December 1, 1982, adjusted for such of the following transactions and events that have occurred after that date in respect of the policy:a change in underwriting class;a change in premium due to a change in frequency of premium payments within a year that does not alter the present value, at the beginning of the year, of the total premiums to be paid under the policy in the year;an addition or deletion of accidental death or guaranteed purchase option benefits or disability benefits that provide for annuity payments or waiver of premiums;a premium adjustment as a result of interest, mortality or expense considerations, or of a change in the benefit on death under the policy relating to an increase in the Consumer Price Index (as published by Statistics Canada under the authority of the Statistics Act) where such adjustmentis made by the life insurer on a class basis pursuant to the policy’s terms as they read on December 1, 1982, andis not made as a result of the exercise of a conversion privilege under the policy;a change arising from the provision of an additional benefit on death under a participating life insurance policy, as defined in subsection 138(12) of the Act, as, on account or in lieu of payment of, or in satisfaction ofpolicy dividends or other distributions of the life insurer’s income from its participating life insurance business, orinterest earned on policy dividends that are held on deposit by the life insurer;redating lapsed policies, if the policy was reinstated not later than 60 days after the end of the calendar year in which the lapse occurred, or redating for policy loan indebtedness;a change in premium due to a correction of erroneous information contained in the application for the policy;payment of a premium after its due date, or payment of a premium no more than 30 days before its due date, as established on or before December 1, 1982; andthe payment of interest described in paragraph (a) of the definition premium in subsection 148(9) of the Act.For the purposes of subsections 12.2(9) and 89(2) of the Act, a “prescribed increase” in a benefit on death under a life insurance policy has occurred at any time where the amount of the benefit on death under the policy at that time exceeds the amount of the benefit on death at that time under the policy that was fixed and determined on or before December 1, 1982, adjusted for such of the following transactions and events that have occurred after that date in respect of the policy:an increase resulting from a change described in paragraph (1)(e);a change as a result of interest, mortality or expense considerations, or an increase in the Consumer Price Index (as published by Statistics Canada under the authority of the Statistics Act) where such change is made by the life insurer on a class basis pursuant to the policy’s terms as they read on December 1, 1982;an increase in consequence of the prepayment of premiums (other than prescribed premiums) under the policy where such increase does not exceed the aggregate of the premiums that would otherwise have been paid;an increase in respect of a policy for whichthe benefit on death was, at December 1, 1982, a specific mathematical function of the policy’s cash surrender value or factors including the policy’s cash surrender value, andthat function has not changed since that date,unless any part of such increase is attributable to a prescribed premium paid in respect of a policy or to income earned on such a premium; andan increase that is granted by the life insurer on a class basis without consideration and not pursuant to any term of the contract.For the purposes of subsections (1) and (2), a life insurance policy that is issued as a result of the exercise of a renewal privilege provided under the terms of another policy as they read on December 1, 1982 shall be deemed to be a continuation of that other policy.For the purposes of subsection (2), a life insurance policy that is issued as a result of the exercise of a conversion privilege provided under the terms of another policy as they read on December 1, 1982 shall be deemed to be a continuation of that other policy except that any portion of the policy relating to the portion of the benefit on death, immediately before the conversion, that arose as a consequence of an event occurring after December 1, 1982 and described in paragraph (1)(e) shall be deemed to be a separate life insurance policy issued at the time of the conversion.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-865, s. 5; SOR/88-165, s. 30(F); SOR/94-686, s. 55(F); SOR/2011-188, s. 13; 2013, c. 34, s. 379
Income from Participating Life Insurance Businesses
For the purpose of subparagraph 309(1)(e)(i), in computing a life insurer’s income for a taxation year from its participating life insurance business carried on in Canada,there shall be included the amount determined by the formulaA × B/CwhereAis the insurer’s gross Canadian life investment income (in this section as defined in subsection 2400(1)) for the year,Bis the total ofthe insurer’s mean maximum tax actuarial reserve (in this section as defined in subsection 2400(1)) for the year in respect of participating life insurance policies in Canada, and1/2 of the total ofall amounts on deposit with the insurer as at the end of the year in respect of policies described in subparagraph (i), andall amounts on deposit with the insurer as at the end of the immediately preceding taxation year in respect of policies described in subparagraph (i), andCthe total of all amounts, each of which isthe insurer’s mean maximum tax actuarial reserve for the year in respect of a class of life insurance policies in Canada, or1/2 of the total ofall amounts on deposit with the insurer as at the end of the year in respect of a class of policies described in subparagraph (i), andall amounts on deposit with the insurer as at the end of the immediately preceding taxation year in respect of a class of policies described in subparagraph (i);there shall be included the insurer’s maximum tax actuarial reserve (in this section as defined in subsection 138(12) of the Act) for the immediately preceding taxation year in respect of participating life insurance policies in Canada;there shall not be included any amount in respect of the insurer’s participating life insurance policies in Canada that was deducted under subparagraph 138(3)(a)(i) of the Act in computing its income for the immediately preceding taxation year;subject to paragraph (a),there shall not be included any amountas a reserve that was deducted under paragraph 20(1)(l) of the Act in computing the insurer’s income for the immediately preceding taxation year, orthat was included in determining the insurer’s gross Canadian life investment income for the year, andno deduction shall be made in respect of any amounttaken into account in determining the insurer’s gross Canadian life investment income for the year, ordeductible under paragraph 20(1)(l) of the Act in computing the insurer’s income for the year;there shall be deducted the insurer’s maximum tax actuarial reserve for the year in respect of participating life insurance policies in Canada;no deduction shall be made in respect of any amount deductible under subparagraph 138(3)(a)(iii) of the Act in computing the insurer’s income for the year;except as otherwise provided in paragraph (e), no deduction shall be made in respect of a reserve deductible under subparagraph 138(3)(a)(i) of the Act in computing the insurer’s income for the year; andexcept as otherwise provided in this section, the provisions of the Act relating to the computation of income from a source shall apply.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 3802022, c. 19, s. 77
Interpretation
The following definitions apply for the purposes of this section and sections 300, 301 and 304 to 309.adjusted purchase price, of a taxpayer’s interest in an annuity contract at any time, means, subject to subsections 300(3) and (4), the amount that would be determined at that time in respect of the interest under the definition adjusted cost basis in subsection 148(9) of the Act if the formula in that definition were read without reference to K. (prix d’achat rajusté)amount payable has the same meaning as in subsection 138(12) of the Act. (montant payable)benefit on death has the same meaning as in subsection 1401(3). (prestation de décès)cash surrender value has the same meaning as in subsection 148(9) of the Act. (valeur de rachat)coverage, under a life insurance policy,for the purposes of section 306, means all life insurance (other than a fund value benefit) under the policy in respect of a specific life, or two or more specific lives jointly insured; andfor the purposes of sections 307 and 308, has the same meaning as in subsection 1401(3). (protection)endowment date, of an exemption test policy, meanswhere the exemption test policy is issued in respect of a life insurance policy issued before 2017, the later of10 years after the date of issue of the life insurance policy, andthe first policy anniversary that is on or after the day on which the individual whose life is insured under the life insurance policy would, if the individual survived, attain the age of 85 years, as defined under the terms of the policy; andwhere the exemption test policy is issued in respect of a coverage under a life insurance policy issued after 2016,if two or more lives are jointly insured under the coverage, the date that would be determined under subparagraph (ii) using the equivalent single age, determined on the coverage’s date of issue and in accordance with accepted actuarial principles and practices, that reasonably approximates the mortality rates of those lives, andin any other case, the later ofthe earlier of15 years after the date of issue of the exemption test policy, andthe first policy anniversary that is on or after the day on which the individual whose life is insured under the coverage would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, andthe first policy anniversary that is on or after the day on which the individual whose life is insured under the coverage would, if the individual survived, attain the age of 90 years, as defined under the terms of the policy. (date d’échéance)fund value benefit has the same meaning as in subsection 1401(3). (bénéfice au titre de la valeur du fonds)fund value of a coverage has the same meaning as in subsection 1401(3). (valeur du fonds d’une protection)pay period, of an exemption test policy, meanswhere the exemption test policy is issued in respect of a life insurance policy issued before 2017,if on the date of issue of the exemption test policy, the individual whose life is insured has attained the age of 66 years, as defined under the terms of the policy, but not the age of 75 years, as defined under the terms of the policy, the period that starts on that date and that ends after the number of years obtained when the number of years by which the age of the individual exceeds 65 years, as defined under the terms of the policy, is subtracted from 20,if on the date of issue of the exemption test policy, the individual whose life is insured has attained the age of 75 years, as defined under the terms of the policy, the 10-year period that starts on that date, andin any other case, the 20-year period that starts on the date of issue of the exemption test policy; andwhere the exemption test policy is issued in respect of a coverage under a life insurance policy issued after 2016,subject to subparagraph (ii), if the individual whose life is insured under the coverage would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, within the eight-year period that starts on the date of issue of the exemption test policy, the period that starts on that date and that ends on the first policy anniversary that is on or after the day on which the individual would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy,if two or more lives are jointly insured under the coverage and an individual of an age equal to the equivalent single age on the date of the issue of the coverage would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, within the eight-year period that starts on the date of issue of the exemption test policy, the period that starts on that date and that ends on the first policy anniversary that is on or after the day on which the individual would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, andin any other case, the eight-year period that starts on the date of issue of the exemption test policy. (période de paiement)policy anniversary includes, in the case of a life insurance policy that is in existence throughout a calendar year and that would not otherwise have a policy anniversary for the calendar year, the end of the calendar year. (anniversaire de la police)policy loan has the same meaning as in subsection 148(9) of the Act. (avance sur police)proceeds of the disposition has the same meaning as in subsection 148(9) of the Act. (produit de la disposition)tax anniversary date, in relation to an annuity contract, means the second anniversary date of the contract to occur after October 22, 1968. (jour anniversaire d’imposition)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-865, s. 5; SOR/94-686, s. 55(F); SOR/2011-188, s. 14; 2014, c. 39, s. 84
Taxable Income Earned in a Province by a Corporation[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)Interpretation
In applying the definition taxable income earned in the year in a province in subsection 124(4) of the Act for a corporation’s taxation yearthe prescribed rules referred to in that definition are the rules in this Part; andthe amount determined under those prescribed rules means the total of all amounts each of which is the taxable income of the corporation earned in the taxation year in a particular province as determined under this Part.[Repealed, 2013, c. 33, s. 32]For the purposes of this Part, permanent establishment in respect of a corporation means a fixed place of business of the corporation, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, andwhere the corporation does not have any fixed place of business it means the principal place in which the corporation’s business is conducted;where a corporation carries on business through an employee or agent, established in a particular place, who has general authority to contract for his employer or principal or who has a stock of merchandise owned by his employer or principal from which he regularly fills orders which he receives, the corporation shall be deemed to have a permanent establishment in that place;an insurance corporation is deemed to have a permanent establishment in each province and country in which the corporation is registered or licensed to do business;where a corporation, otherwise having a permanent establishment in Canada, owns land in a province, such land shall be deemed to be a permanent establishment;where a corporation uses substantial machinery or equipment in a particular place at any time in a taxation year it shall be deemed to have a permanent establishment in that place;if, but for this paragraph, a corporation would not have a permanent establishment, the corporation is deemed to have a permanent establishment at the place designated in its incorporating documents or bylaws as its head office or registered office;the fact that a corporation has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise shall not of itself be held to mean that the corporation has a permanent establishment; andthe fact that a corporation has a subsidiary controlled corporation in a place or a subsidiary controlled corporation engaged in trade or business in a place shall not of itself be held to mean that the corporation is operating a permanent establishment in that place.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-772, s. 1; SOR/81-267, s. 1; SOR/86-390, s. 1; SOR/94-140, s. 1; SOR/94-686, ss. 4(F), 57(F), 79(F); 2009, c. 2, s. 91; SOR/2010-93, s. 8(F); 2013, c. 33, s. 32
Computation of Taxable Income
This Part applies to determine the amount of taxable income of a corporation earned in a taxation year in a particular province.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F); 2009, c. 2, s. 92
General Rules
Where, in a taxation year, a corporation had a permanent establishment in a particular province and had no permanent establishment outside that province, the whole of its taxable income for the year shall be deemed to have been earned therein.Where, in a taxation year, a corporation had no permanent establishment in a particular province, no part of its taxable income for the year shall be deemed to have been earned therein.Except as otherwise provided, where, in a taxation year, a corporation had a permanent establishment in a province and a permanent establishment outside that province, the amount of its taxable income that shall be deemed to have been earned in the year in the province isin any case other than a case specified in paragraph (b) or (c), 1/2 the aggregate ofthat proportion of its taxable income for the year that the gross revenue for the year reasonably attributable to the permanent establishment in the province is of its total gross revenue for the year, andthat proportion of its taxable income for the year that the aggregate of the salaries and wages paid in the year by the corporation to employees of the permanent establishment in the province is of the aggregate of all salaries and wages paid in the year by the corporation;in any case where the gross revenue for the year of the corporation is nil, that proportion of its taxable income for the year that the aggregate of the salaries and wages paid in the year by the corporation to employees of the permanent establishment in the province is of the aggregate of all salaries and wages paid in the year by the corporation; andin any case where the aggregate of the salaries and wages paid in the year by the corporation is nil, that proportion of its taxable income for the year that the gross revenue for the year reasonably attributable to the permanent establishment in the province is of its total gross revenue for the year.For the purpose of determining the gross revenue for the year reasonably attributable to a permanent establishment in a province or country other than Canada, within the meaning of subsection (3), the following rules shall apply:where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in the particular province or country, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province or country;except as provided in paragraph (c), where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the sale may reasonably be regarded as being attached to the permanent establishment in the particular province or country, the gross revenue derived therefrom shall be attributable to that permanent establishment;where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in a country other than Canada in which the taxpayer has no permanent establishment,if the merchandise was produced or manufactured or produced and manufactured, entirely in the particular province by the taxpayer, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province, orif the merchandise was produced or manufactured, or produced and manufactured, partly in the particular province and partly in another place by the taxpayer, the gross revenue derived therefrom attributable to the permanent establishment in the province shall be that proportion thereof that the salaries and wages paid in the year to employees of the permanent establishment in the province where the merchandise was partly produced or manufactured (or partly produced and manufactured) is of the aggregate of the salaries and wages paid in the year to employees of the permanent establishments where the merchandise was produced or manufactured (or produced and manufactured);where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in the particular province or country, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province or country;except as provided in paragraph (f), where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the sale may reasonably be regarded as being attached to the permanent establishment in the particular province or country, the gross revenue derived therefrom shall be attributable to that permanent establishment;where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in a country other than Canada in which the taxpayer has no permanent establishment,if the merchandise was produced or manufactured, or produced and manufactured, entirely in the particular province by the taxpayer, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province, orif the merchandise was produced or manufactured, or produced and manufactured, partly in the particular province and partly in another place by the taxpayer, the gross revenue derived therefrom attributable to the permanent establishment in the province shall be that proportion thereof that the salaries and wages paid in the year to employees of the permanent establishment in the province where the merchandise was partly produced or manufactured (or partly produced and manufactured) is of the aggregate of the salaries and wages paid in the year to employees of the permanent establishments where the merchandise was produced or manufactured (or produced and manufactured);where gross revenue is derived from services rendered in the particular province or country, the gross revenue shall be attributable to the permanent establishment in the province or country;where gross revenue is derived from services rendered in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the contract may reasonably be regarded as being attached to the permanent establishment of the taxpayer in the particular province or country, the gross revenue shall be attributable to that permanent establishment;where standing timber or the right to cut standing timber is sold and the timber limit on which the timber is standing is in the particular province or country, the gross revenue from such sale shall be attributable to the permanent establishment of the taxpayer in the province or country; andgross revenue which arises from leasing land owned by the taxpayer in a province and which is included in computing its income under Part I of the Act shall be attributable to the permanent establishment, if any, of the taxpayer in the province where the land is situated.For the purposes of subsections (3) and (4), where, in a taxation year,the destination of a shipment of merchandise to a customer to whom the merchandise is sold by a corporation is in a country other than Canada or the customer to whom merchandise is sold by a corporation instructs that the shipment of merchandise be made by the corporation to another person and the customer’s office with which the sale was negotiated is located in a country other than Canada,the corporation has a permanent establishment in the other country, andthe corporation is not subject to taxation on its income under the laws of the other country, or its gross revenue derived from the sale is not included in computing the income or profit or other base for income or profits taxation by the other country, because ofthe provisions of any taxing statute of the other country, orthe operation of any tax treaty or convention between Canada and the other country,the following rules apply:with respect to the gross revenue derived from the sale,paragraphs (4)(a) and (d) do not apply,that portion of paragraph (4)(c) preceding subparagraph (i) thereof shall be read as follows:where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in a country other than Canada,” andthat portion of paragraph (4)(f) preceding subparagraph (i) thereof shall be read as follows:where a customer to whom the merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in a country other than Canada,”; andfor the purposes of subparagraph (3)(a)(ii), paragraph (3)(b) and subparagraphs (4)(c)(ii) and (f)(ii), salaries and wages paid in the year to employees of any permanent establishment of the corporation located in that other country” shall be deemed to be nil.For the purposes of subsection (3), “gross revenue” does not include interest on bonds, debentures or mortgages, dividends on shares of capital stock, or rentals or royalties from property that is not used in connection with the principal business operations of the corporation.For the purposes of subsection (3), where part of the corporation’s operations were conducted in partnership with one or more other personsthe corporation’s gross revenue for the year, andthe salaries and wages paid in the year by the corporation,shall include, in respect of those operations, only that proportion ofthe total gross revenue of the partnership for its fiscal period ending in or coinciding with the year, andthe total salaries and wages paid by the partnership in its fiscal period ending in or coinciding with the year,respectively, thatthe corporation’s share of the income or loss of the partnership for the fiscal period ending in or coinciding with the year,is ofthe total income or loss of the partnership for the fiscal period ending in or coinciding with the year.Where a corporation pays a fee to another person under an agreement pursuant to which that other person or employees of that other person perform services for the corporation that would normally be performed by employees of the corporation, the fee so paid shall be deemed to be salary paid in the year by the corporation and that part of the fee that may reasonably be regarded as payment in respect of services rendered at a particular permanent establishment of the corporation shall be deemed to be salary paid to an employee of that permanent establishment.For the purposes of subsection (7), a fee does not include a commission paid to a person who is not an employee of the corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-949, s. 1; SOR/94-327, s. 1; SOR/94-686, ss. 78(F), 79(F), 81(F); SOR/2010-93, s. 9(F); SOR/2011-195, s. 1(F)
Central Paymaster
In this Part, if an individual (referred to in this section as the “employee”) is employed by a person (referred to in this section as the “employer”) and performs a service in a particular province for the benefit of or on behalf of a corporation that is not the employer, an amount that may reasonably be regarded as equal to the amount of salary or wages earned by the employee for the service (referred to in this section as the “particular salary”) is deemed to be salary paid by the corporation to an employee of the corporation in the corporation’s taxation year in which the particular salary is paid ifat the time the service is performed,the corporation and the employer do not deal at arm’s length, andthe corporation has a permanent establishment in the particular province;the serviceis performed by the employee in the normal course of the employee’s employment by the employer,is performed for the benefit of or on behalf of the corporation in the ordinary course of a business carried on by the corporation, andis of a type that could reasonably be expected to be performed by employees of the corporation in the ordinary course of the business referred to in subparagraph (ii); andthe amount is not otherwise included in the aggregate, determined for the purposes of this Part, of the salaries and wages paid by the corporation.In this Part, an amount deemed under subsection (1) to be salary paid by a corporation to an employee of the corporation for a service performed in a particular province is deemed to have been paid,if the service was performed at one or more permanent establishments of the corporation in the particular province, to an employee of the permanent establishment or establishments; orif paragraph (a) does not apply, to an employee of any other permanent establishment (as is reasonably determined in the circumstances) of the corporation in the particular province.In determining under this Part the amount of salaries and wages paid in a year by an employer, there shall be deducted the total of all amounts each of which is a particular salary paid by the employer in the year.Despite subparagraph (1)(a)(i), this section applies to a corporation and an employer that deal at arm’s length if the Minister determines that the corporation and the employer have entered into an arrangement the purpose of which is to reduce, through the provision of services as described in subsection (1), the total amount of income tax payable by the corporation under a law of the particular province referred to in subsection (1).For the purposes of this section, a partnership is deemed to be a corporation and the corporation’s taxation year is deemed to be the partnership’s fiscal period.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-772, s. 2; SOR/94-686, s. 79(F); 2009, c. 2, s. 93
[Repealed, 2009, c. 2, s. 93][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-267, s. 2; SOR/94-686, s. 79(F); 2009, c. 2, s. 93
Insurance Corporations
Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned in a taxation year in a particular province by an insurance corporation is that proportion of its taxable income for the year that the aggregate ofits net premiums for the year in respect of insurance on property situated in the province, andits net premiums for the year in respect of insurance, other than on property, from contracts with persons resident in the province,is of the total of such of its net premiums for the year as are included in computing its income for the purposes of Part I of the Act.In this section, net premiums of a corporation for a taxation year means the aggregate of the gross premiums received by the corporation in the year (other than consideration received for annuities), minus the aggregate for the year ofpremiums paid for reinsurance,dividends or rebates paid or credited to policyholders, andrebates or returned premiums paid in respect of the cancellation of policies,by the corporation.For the purposes of subsection (1), where an insurance corporation had no permanent establishment in a taxation year in a particular province,each net premium for that year in respect of insurance on property situated in the particular province shall be deemed to be a net premium in respect of insurance on property situated in the province in which the permanent establishment of the corporation to which the net premium is reasonably attributable is situated; andeach net premium for that year in respect of insurance, other than on property, from contracts with persons resident in the particular province shall be deemed to be a net premium in respect of insurance, other than on property, from contracts with persons resident in the province in which the permanent establishment of the corporation to which the net premium is reasonably attributable is situated.For the purposes of subsection (1), if in a taxation year an insurance corporation has no permanent establishment in a particular country other than Canada, but provides insurance on property in the particular country or has a contract for insurance, other than on property, with a person resident in the particular country, each net premium for the taxation year in respect of the insurance is deemed to be a net premium in respect of insurance on property situated in, or from contracts with persons resident in, as the case may be, the province in Canada or country other than Canada in which is situated the permanent establishment of the corporation to which the net premium is reasonably attributable in the circumstances.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 5(F), 57(F); 2009, c. 2, s. 94
Banks[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-302, s. 2
Notwithstanding subsections 402(3) and (4), the amount of taxable income that is deemed to have been earned by a bank in a taxation year in a province in which it had a permanent establishment is 1/3 of the total ofthe proportion of its taxable income for the year that the total of the salaries and wages paid in the year by the bank to employees of its permanent establishment in the province is of the total of all salaries and wages paid in the year by the bank; andtwice the proportion of its taxable income for the year that the total amount of loans and deposits of its permanent establishment in the province for the year is of the total amount of all loans and deposits of the bank for the year.For the purposes of subsection (1), the amount of loans for a taxation year is 1/12 of the total of the amounts outstanding, on the loans made by the bank, at the close of business on the last day of each month in the year.For the purposes of subsection (1), the amount of deposits for a taxation year is 1/12 of the total of the amounts on deposit with the bank at the close of business on the last day of each month in the year.For the purposes of subsections (2) and (3), loans and deposits do not include bonds, stocks, debentures, items in transit and deposits in favour of Her Majesty in right of Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-949, s. 2; SOR/2009-302, s. 3; 2017, c. 33, s. 86
Notwithstanding subsections 402(3) and (4), the amount of taxable income that is deemed to have been earned by a federal credit union in a taxation year in a province in which it had a permanent establishment is 1/3 of the total ofthe proportion of its taxable income for the year that the total of the salaries and wages paid in the year by the federal credit union to employees of its permanent establishment in the province is of the total of all salaries and wages paid in the year by the federal credit union, andtwice the proportion of its taxable income for the year that the total amount of loans and deposits of its permanent establishment in the province for the year is of the total amount of all loans and deposits of the federal credit union for the year.For the purposes of subsection (1), the amount of loans for a taxation year is 1/12 of the total of the amounts outstanding, on the loans made by the federal credit union, at the close of business on the last day of each month in the year.For the purposes of subsection (1), the amount of deposits for a taxation year is 1/12 of the total of the amounts on deposit with the federal credit union at the close of business on the last day of each month in the year.For the purposes of subsections (2) and (3), loans and deposits do not include bonds, stocks, debentures, items in transit and deposits in favour of Her Majesty in right of Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2017, c. 33, s. 87
Trust and Loan Corporations[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned in a taxation year by a trust and loan corporation, trust corporation or loan corporation in a province in which it had a permanent establishment is that proportion of its taxable income for the year that the gross revenue for the year of its permanent establishment in the province is of the total gross revenue for the year of the corporation.In subsection (1), gross revenue for the year of its permanent establishment in the province means the aggregate of the gross revenue of the corporation for the year arising fromloans secured by lands situated in the province;loans, not secured by land, to persons residing in the province;loansto persons residing in a province or country other than Canada in which the corporation has no permanent establishment, andadministered by a permanent establishment in the province,except loans secured by land situated in a province or country other than Canada in which the corporation has a permanent establishment; andbusiness conducted at the permanent establishment in the province, other than revenue in respect of loans.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-949, s. 3; SOR/94-686, s. 79(F); SOR/2011-195, s. 2(F)
Railway Corporations[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 57(F)
Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned by a railway corporation in a taxation year in a province in which it had a permanent establishment is, unless subsection (2) applies, 1/2 the aggregate ofthat proportion of the taxable income of the corporation for the year that the equated track miles of the corporation in the province is of the equated track miles of the corporation in Canada; andthat proportion of the taxable income of the corporation for the year that the gross ton miles of the corporation for the year in the province is of the gross ton miles of the corporation for the year in Canada.Where a corporation to which subsection (1) would apply, if this subsection did not apply thereto, operates an airline service, ships or hotels or receives substantial revenues that are petroleum or natural gas royalties, or does a combination of two or more of those things, the amount of its taxable income that shall be deemed to have been earned in a taxation year in a province in which it had a permanent establishment is the aggregate of the amounts computedby applying the provisions of section 407 to that part of its taxable income for the year that may reasonably be considered to have arisen from the operation of the airline service;by applying the provisions of section 410 to that part of its taxable income for the year that may reasonably be considered to have arisen from the operation of the ships;by applying the provisions of section 402 to that part of its taxable income for the year that may reasonably be considered to have arisen from the operation of the hotels;by applying the provisions of section 402 to that part of its taxable income for the year that may reasonably be considered to have arisen from the ownership by the taxpayer of petroleum or natural gas rights or any interest therein; andby applying the provisions of subsection (1) to the remaining portion of its taxable income for the year.In this section, equated track miles in a specified place means the aggregate ofthe number of miles of first main track,80 per cent of the number of miles of other main tracks, and50 per cent of the number of miles of yard tracks and sidings,in that place.For the purpose of making an allocation under paragraph (2)(b), a reference in section 410 to “salaries and wages paid in the year by the corporation to employees” shall be read as a reference to salaries and wages paid by the corporation to employees employed in the operation of permanent establishments (other than ships) maintained for the shipping business.For the purpose of making an allocation under paragraph (2)(c),a reference in section 402 to “gross revenue for the year reasonably attributable to the permanent establishment in the province” shall be read as a reference to the gross revenue of the taxpayer from operating hotels therein;a reference in section 402 to “total gross revenue for the year” shall be read as a reference to the total gross revenue of the taxpayer for the year from operating hotels; anda reference in section 402 to “salaries and wages paid in the year by the corporation to employees” shall be read as a reference to salaries and wages paid to employees engaged in the operations of its hotels.Notwithstanding subsection 402(5), for the purpose of making an allocation under paragraph (2)(d),a reference in section 402 to “gross revenue for the year reasonably attributable to the permanent establishment in the province” shall be read as a reference to the gross revenue of the taxpayer from the ownership by the taxpayer of petroleum and natural gas rights in lands in the province and any interest therein;a reference in section 402 to “total gross revenue for the year” shall be read as a reference to the total gross revenue of the taxpayer from ownership by the taxpayer of petroleum and natural gas rights and any interest therein; anda reference in section 402 to “salaries and wages paid in the year by the corporation to employees” shall be read as a reference to salaries and wages paid to employees employed in connection with the corporation’s petroleum and natural gas rights and interests therein.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-949, s. 4; SOR/94-686, ss. 57(F), 79(F); SOR/2011-195, s. 3(F)
Airline Corporations
Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned in a taxation year by an airline corporation in a province in which it had a permanent establishment is the amount that is equal to 1/4 of the aggregate ofthat proportion of its taxable income for the year that the capital cost of all the corporation’s fixed assets, except aircraft, in the province at the end of the year is of the capital cost of all its fixed assets, except aircraft, in Canada at the end of the year; andthat proportion of its taxable income for the year that three times the number of revenue plane miles flown by its aircraft during the year in the province is of the total of all amounts, each of which is the total number of revenue plane miles flown by its aircraft during the year in a province in which the corporation had a permanent establishment.For the purposes of this section, “revenue plane miles flown” shall be weighted according to take-off weight of the aircraft operated.For the purposes of this section, take-off weight of an aircraft meansfor an aircraft in respect of which an application form for a Certificate of Airworthiness has been submitted to and accepted by the Department of Transport, the maximum permissible take-off weight, in pounds, shown on the form; andfor any other aircraft, the weight, in pounds, that may reasonably be considered to be the equivalent of the weight referred to in paragraph (a).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-326, s. 1; SOR/80-949, s. 5; SOR/94-327, s. 2; SOR/94-686, s. 6(F); 2013, c. 34, s. 381
Grain Elevator Operators
Notwithstanding subsections 402(3) and (4), the amount of taxable income of a corporation whose chief business is the operation of grain elevators that shall be deemed to have been earned by that corporation in a taxation year in a province in which it had a permanent establishment is 1/2 of the aggregate ofthat proportion of its taxable income for the year that the number of bushels of grain received in the year in the elevators operated by the corporation in the province is of the total number of bushels of grain received in the year in all the elevators operated by the corporation; andthat proportion of its taxable income for the year that the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishment in the province is of the aggregate of all salaries and wages paid in the year by the corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-949, s. 6; SOR/94-686, s. 79(F)
Bus and Truck Operators
Notwithstanding subsections 402(3) and (4), the amount of taxable income of a corporation whose chief business is the transportation of goods or passengers (other than by the operation of a railway, ship or airline service) that shall be deemed to have been earned by that corporation in a taxation year in a province in which it had a permanent establishment is 1/2 of the aggregate ofthat proportion of its taxable income for the year that the number of kilometres driven by the corporation’s vehicles, whether owned or leased, on roads in the province in the year is of the total number of kilometres driven by those vehicles in the year on roads other than roads in provinces or countries in which the corporation had no permanent establishment; andthat proportion of its taxable income for the year that the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishment in the province is of the aggregate of all salaries and wages paid in the year by the corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-949, s. 7; SOR/86-585, s. 1; SOR/94-686, s. 79(F)
Ship Operators
Notwithstanding subsections 402(3) and (4), the amount of taxable income of a corporation whose chief business is the operation of ships that shall be deemed to have been earned by the corporation in a taxation year in a province in which it had a permanent establishment is the aggregate of,that proportion of its allocable income for the year that its port-call-tonnage in the province is of its total port-call-tonnage in all the provinces in which it had a permanent establishment; andif its taxable income for the year exceeds its allocable income for the year, that proportion of the excess that the aggregate of the salaries and wages paid in the year by the corporation to employees of the permanent establishment (other than a ship) in the province is of the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishments (other than ships) in Canada.In this section,allocable income for the year means that proportion of the taxable income of the corporation for the year that its total port-call-tonnage in Canada is of its total port-call-tonnage in all countries; andport-call-tonnage in a province or country means the aggregate of the products obtained by multiplying, for each ship operated by the corporation, the number of calls made in the year by that ship at ports in that province or country by the number of tons of the registered net tonnage of that ship.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-949, s. 7; SOR/94-686, s. 79(F)
Pipeline Operators
Notwithstanding subsections 402(3) and (4), the amount of taxable income of a corporation whose chief business is the operation of a pipeline that shall be deemed to have been earned by that corporation in a taxation year in a province in which it had a permanent establishment is 1/2 of the aggregate ofthat proportion of its taxable income for the year that the number of miles of pipeline of the corporation in the province is of the number of miles of pipeline of the corporation in all the provinces in which it had a permanent establishment; andthat proportion of its taxable income for the year that the aggregate of the salaries and wages paid in the year by the corporation to employees of its permanent establishment in the province is of the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishments in Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-949, s. 7; SOR/94-686, s. 79(F)
Divided Businesses
If part of the business of a corporation for a taxation year, other than a corporation described in any of sections 403, 404, 404.1, 405, 406, 407, 408, 409, 410 and 411, consisted of operations normally conducted by a corporation described in one of those sections, the corporation and the Minister may agree to determine the amount of taxable income deemed to have been earned in the year in a particular province to be the total of the amounts computedby applying the provisions of such of those sections as would have been applicable if it had been a corporation described therein to the portion of its taxable income for the year that might reasonably be considered to have arisen from that part of the business; andby applying the provisions of section 402 to the remaining portion of its taxable income for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F); 2017, c. 33, s. 88
Non-Resident Corporations[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
In this Part, if a corporation is not resident in Canada“salaries and wages paid in the year” by the corporation does not include salaries and wages paid to employees of a permanent establishment outside Canada; and“taxable income” of the corporation is deemed to refer to the corporation’s taxable income earned in Canada.For the purposes of paragraph 402(3)(a), where a corporation is not resident in Canada, “total gross revenue for the year” of the corporation does not include gross revenue reasonably attributable to a permanent establishment outside Canada.For the purpose of paragraph 404(1)(b), in the case of an authorized foreign bank, “all loans and deposits of the bank for the year” is to be read as a reference to “all loans and deposits of the bank for the year in respect of its Canadian banking business”.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F); 2009, c. 2, s. 95; SOR/2009-302, s. 4; SOR/2011-195, s. 4(F); 2013, c. 33, s. 33
[Repealed, 2013, c. 33, s. 34][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 96; 2013, c. 33, s. 34
Provincial SIFT Tax Rate
The following definitions apply in this section.general corporate income tax rate, in a province for a taxation year, meansfor Quebec, 0%;for the Newfoundland offshore area, the highest percentage rate of tax imposed under the laws of Newfoundland and Labrador on the taxable income of a public corporation earned in the taxation year in Newfoundland and Labrador;for the Nova Scotia offshore area, the highest percentage rate of tax imposed under the laws of Nova Scotia on the taxable income of a public corporation earned in the taxation year in Nova Scotia; andfor each other province, the highest percentage rate of tax imposed under the laws of the province on the taxable income of a public corporation earned in the taxation year in the province. (taux général d’imposition du revenu des sociétés)province includes the Newfoundland offshore area and the Nova Scotia offshore area. (province)taxable SIFT distributions, for a taxation year, meansin the case of a SIFT trust, its non-deductible distributions amount for the taxation year; andin the case of a SIFT partnership, its taxable non-portfolio earnings for the taxation year. (montant des distributions imposables)In determining the amount of a SIFT trust’s or SIFT partnership’s taxable SIFT distributions for a taxation year earned in a provinceexcept as provided in paragraph (b), this Part applies in respect of the SIFT trust or SIFT partnership as thougheach reference to “corporation” (other than in the expression “subsidiary controlled corporation”) were read as a reference to “SIFT trust” or “SIFT partnership”, as the case may be,each reference to “taxable income” were read as a reference to “taxable SIFT distributions”,each reference to “its incorporating documents or bylaws” were read as a reference to “the agreement governing the SIFT trust” or “the agreement governing the SIFT partnership”, as the case may be, and“subsidiary controlled corporation” in respect of a SIFT trust or a SIFT partnership meant a corporation more than 50% of the issued share capital of which (having full voting rights under all circumstances) belongs to the SIFT trust or SIFT partnership, as the case may be; andsubsection 400(1), section 401, subsections 402(1) and (2) and sections 403 to 413 do not apply.Subject to subsection (4), in applying the definition provincial SIFT tax rate in subsection 248(1) of the Act in respect of a SIFT trust or SIFT partnership for a taxation year, the prescribed amount determined in respect of the SIFT trust or SIFT partnership for the taxation year isif the SIFT trust or SIFT partnership has no permanent establishment in a province in the taxation year, 0.10;if the SIFT trust or SIFT partnership has a permanent establishment in a province in the taxation year and has no permanent establishment outside that province in the taxation year, the decimal fraction equivalent of the general corporate income tax rate in the province for the taxation year; andif the SIFT trust or SIFT partnership has a permanent establishment in the taxation year in a province, and has a permanent establishment outside that province in the taxation year, the amount, expressed as a decimal fraction, determined by the formulaA + BwhereAis the total of all amounts, if any, each of which is in respect of a province in which the SIFT trust or SIFT partnership has a permanent establishment in the taxation year and is determined by the formulaC/D × EwhereCis its taxable SIFT distributions for the taxation year earned in the province,Dis its total taxable SIFT distributions for the taxation year, andEis the decimal fraction equivalent of the general corporate income tax rate in the province for the taxation year, andBis the amount determined by the formula(1 – F/D) × 0.1whereFis the total of all amounts each of which is an amount determined under the description of C in the description of A in respect of a province in which the SIFT trust or SIFT partnership has a permanent establishment in the taxation year.If a SIFT trust or a SIFT partnership has a permanent establishment in Quebec in a taxation year, paragraph (a) of the definition general corporate income tax rate in subsection (1) does not apply in determining the prescribed amount under subsection (3) in respect of the SIFT trust or the SIFT partnership for the taxation year for the purposes of applying the definition provincial SIFT tax rate in determining:in the case of the SIFT partnership, the amount of a dividend deemed by paragraph 96(1.11)(b) of the Act to have been received by it in the taxation year; andin the case of the SIFT trust, the amount of its taxable SIFT trust distributions for the taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-741, s. 1; SOR/94-686, s. 79(F); 2009, c. 2, s. 97
[Repealed, 2009, c. 2, s. 97][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-741, s. 1; 2009, c. 2, s. 97
Non-Resident-Owned Investment Corporations[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)Elections
Any election by a corporation to be taxed under section 133 of the Act shall be made by forwarding by registered mail to the Director — Taxation at the District Office of the Department of National Revenue, Taxation that serves the area in which the head office of the corporation is located the following documents:a letter stating that the corporation elects to be taxed under the said section 133;a certified copy of the resolution of the directors of the corporation authorizing the election to be made; anda certified list showingthe names and addresses of the registered shareholders and the number of shares of each class held by each,the names and addresses of the holders of the corporation’s bonds, debentures, or other funded indebtedness, if any, andthe names and addresses of the beneficial owners of shares, bonds, debentures, or other funded indebtedness in cases where the registered shareholders or holders, as the case may be, are not the beneficial owners.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-268, s. 1; SOR/94-686, ss. 7(F), 79(F)
Elections Revoked
Any election to be taxed under section 133 of the Act shall be revoked by a corporation by forwarding by registered mail to the Deputy Minister of National Revenue for Taxation at Ottawa the following documents in duplicate:a letter stating that the corporation revokes its election; anda certified copy of the resolution of the directors of the corporation authorizing the election to be revoked.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
Certificates of Changes of Ownership
A corporation which is taxable under section 133 of the Act shall attach to its return of income required to be filed under subsection 150(1) of the Act, a certified statement showing any changes during the taxation year in the information referred to in paragraph 500(c).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
[Repealed, SOR/80-140, s. 1][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-140, s. 1
Elections
For the purposes of paragraphs 220(3.2)(a) and (b) of the Act, the following are prescribed provisions:section 21 of the Act;subsections 13(4), (7.4) and (29), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 91(1.4), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act;paragraphs 12(2.2)(b), 66.7(7)(c), (d) and (e) and (8)(c), (d) and (e), 80.01(4)(c), 86.1(2)(f) and 128.1(4)(d), (6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act;subsections 1103(1), (2) and (2d) and 5907(2.1) of these Regulations.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-265, s. 1; SOR/93-530, s. 1; SOR/95-367, s. 1; SOR/96-128, s. 1; SOR/97-471, s. 1; SOR/99-17, s. 7; SOR/2001-216, s. 2; SOR/2002-144, s. 1; SOR/2005-123, s. 3; SOR/2005-185, s. 3; SOR/2006-200, s. 1; SOR/2010-96, s. 1; 2013, c. 34, s. 382, c. 40, s. 98; 2016, c. 12, s. 76; 2017, c. 33, s. 89
Logging Taxes on Income[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 1Logging
Except as provided in subsection (2), for the purposes of paragraph 127(2)(a) of the Act income for the year from logging operations in the province means the aggregate ofwhere standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer and the logs so obtained are sold by the taxpayer in the province before or on delivery to a sawmill, pulp or paper plant or other place for processing logs, the taxpayer’s income for the year from the sale, other than any portion thereof that was included in computing the taxpayer’s income from logging operations in the province for a previous year;where standing timber in the province or the right to cut standing timber in the province is sold by the taxpayer, the taxpayer’s income for the year from the sale, other than any portion thereof that was included in computing the taxpayer’s income from logging operations in the province for a previous year;where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer, if the logs so obtained areexported from the province and are sold by him prior to or on delivery to a sawmill, pulp or paper plant or other place for processing logs, orexported from Canada,the amount computed by deducting from the value, as determined by the province, of the logs so exported in the year, the aggregate of the costs of acquiring, cutting, transporting and selling the logs; andwhere standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer, if the logs are processed by the taxpayer or by a person on his behalf in a sawmill, pulp or paper plant or other place for processing logs in Canada, the income of the taxpayer for the year from all sources minus the aggregate ofhis income from sources other than logging operations carried on in Canada and other than the processing in Canada by him or on his behalf and sale by him of logs, timber and products produced therefrom,each amount included in the aggregate determined under this subsection by virtue of paragraph (a), (b) or (c), andan amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of logs or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after making the deductions under subparagraphs (i) and (ii), 65 per cent of the income so remaining or, if the amount so determined is less than 35 per cent of the income so remaining, 35 per cent of the income so remaining.Where the taxpayer cuts standing timber or acquires logs cut from standing timber in more than one province, for the purposes of paragraph 127(2)(a) of the Act income for the year from logging operations in the province means the aggregate ofthe amounts determined in respect of that province in accordance with paragraphs (1)(a), (b) and (c); andwhere the logs are processed by the taxpayer or by a person on his behalf in a sawmill, pulp or paper plant or other place for processing logs in Canada, an amount equal to the proportion of the income of the taxpayer for the year from all sources minus the aggregate ofhis income from sources other than logging operations carried on in Canada and other than the processing in Canada by him or on his behalf and sale by him of logs, timber and products produced therefrom,the aggregate of amounts determined in respect of each province in accordance with paragraphs (1)(a), (b) and (c), andan amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of logs or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after making the deductions under subparagraphs (i) and (ii), 65 per cent of the income so remaining or, if the amount so determined is less than 35 per cent of the income so remaining, 35 per cent of the income so remaining,thatthe quantity of standing timber cut in the province in the year by the taxpayer and logs cut from standing timber in the province acquired by the taxpayer in the year,is ofthe total quantity of standing timber cut and logs acquired in the year by the taxpayer.For the purpose of the definition logging tax in subsection 127(2) of the Act, each of the following is declared to be a tax of general application on income from logging operations:the tax imposed by the Province of British Columbia under the Logging Tax Act, R.S.B.C. 1996, c. 277; andthe tax imposed by the Province of Quebec under Part VII of the Taxation Act, R.S.Q., c. I-3.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-20, s. 1; SOR/87-668, s. 1; SOR/92-516, s. 1; SOR/2010-93, s. 10
[Repealed, SOR/78-377, s. 2][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 2
Non-Resident TaxesRegistered Non-Resident Insurers
Subsections 215(1), (2) and (3) of the Act do not apply to amounts paid or credited to a registered non-resident insurer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-424, s. 1; SOR/2009-302, s. 5
Filing of Returns by Registered Non-Resident Insurers
A taxpayer that is a registered non-resident insurer in a taxation year shall file a return for the taxation year in prescribed form with the Minister on or before its filing-due date for the taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-424, s. 1; SOR/88-165, s. 31(F); SOR/90-661, s. 1; SOR/2009-302, ss. 5, 14
Amounts Taxable
The amounts that are taxable under Part XIII of the Act in a taxation year of a taxpayer that is a registered non-resident insurer in the taxation year are amounts paid or credited to the taxpayer in the taxation year other than amounts included under Part I of the Act in computing the taxpayer’s income from a business carried on by it in Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-424, s. 1; SOR/2009-302, s. 5
Payment of Tax by Registered Non-Resident Insurers
A taxpayer that is a registered non-resident insurer in a taxation year shall pay to the Receiver General, on or before its filing-due date for the taxation year, the tax payable by it under Part XIII of the Act in the taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-424, s. 1; SOR/2009-302, ss. 5, 14
[Repealed, SOR/2009-302, s. 5][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-302, s. 5
Interpretation
In this Part, registered non-resident insurer means a non-resident corporation approved to carry on business in Canada under the Insurance Companies Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-424, s. 1; SOR/94-686, s. 79(F); SOR/2000-413, s. 1
Other Non-Resident Persons[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 50(F)
Subject to section 802, every non-resident person who carries on business in Canada is taxable under Part XIII of the Act on all amounts otherwise taxable under that Part except those amounts thatmay reasonably be attributed to the business carried on by the person through a permanent establishment (within the meaning assigned by section 8201) in Canada; orare required by subparagraph 115(1)(a)(iii.3) of the Act to be included in computing the person’s taxable income earned in Canada for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-656, s. 1; SOR/84-948, s. 3; SOR/88-165, s. 3; SOR/94-686, ss. 50(F), 79(F); SOR/2009-302, s. 6
Payee Certificate
If a person (in this section referred to as the “payee”) files an application under this section with the Minister in respect of the anticipated payment or crediting of an amount to the payee, and the Minister determines that the amount is an amount described in paragraph 805(a) or (b), the Minister shall issue to the payee a certificate that records that determination.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-302, s. 6
International Organizations and Agencies
For the purposes of paragraph (c) of the definition fully exempt interest in subsection 212(3) of the Act, the Bank for International Settlements and the European Bank for Reconstruction and Development are prescribed.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2017, c. 33, s. 90
[Repealed, 2017, c. 33, s. 90][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 4; SOR/94-188, s. 1; 2017, c. 33, s. 90
Prescribed Obligation
For the purposes of the definition participating debt interest in subsection 212(3) of the Act, an obligation is a prescribed obligation if it is an indexed debt obligation and no amount payable in respect of it iscontingent or dependent upon the use of, or production from, property in Canada; orcomputed by reference torevenue, profit, cash flow, commodity price or any other similar criterion, other than a change in the purchasing power of money, ordividends paid or payable to shareholders of any class of shares.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-345, s. 1; SOR/94-686, s. 79(F); SOR/96-435, s. 2; 2013, c. 40, s. 99
Identification of Obligations
For the purposes of subsection 240(2) of the Act, the letters “AX” or the letter “F”, as the case may be, shall be clearly and indelibly printed in gothic or similar style capital letters of seven point or larger size either as a prefix to the coupon number or on the lower right hand corner of each coupon or other writing issued in evidence of a right to interest on an obligation referred to in that subsection.
Allowances in Respect of Investment in Property in Canada
For the purposes of paragraph 219(1)(j) of the Act, the allowance of a corporation (other than an authorized foreign bank) for a taxation year in respect of its investment in property in Canada is prescribed to be the amount, if any, by whichthe corporation’s qualified investment in property in Canada at the end of the year,exceedsthe amount determined under this paragraph for the immediately preceding taxation year.Notwithstanding subsections (1) and (8), for the purpose of paragraph 219(1)(j) of the Act, the allowance of a corporation that becomes resident in Canada at any time is, in respect of its investment in property in Canada for its last taxation year that ends before that time, prescribed to be nil.For the purposes of subsection (1), where, at the end of a taxation year, a corporation is not a member of a partnership that was carrying on business in Canada at any time in the year, the corporation’s “qualified investment in property in Canada at the end of the year” is the amount, if any, by which the aggregate ofthe cost amount to the corporation, at the end of the year, of land in Canada owned by it at that time for the purpose of gaining or producing income from a business carried on by it in Canada, other than land that isdescribed in the corporation’s inventory,depreciable property,a Canadian resource property, orland the cost of which is or was deductible in computing the corporation’s income,an amount equal to the aggregate of the cost amount to the corporation, immediately after the end of the year, of each depreciable property in Canada owned by it for the purpose of gaining or producing income from a business carried on by it in Canada,[Repealed, 2016, c. 12, s. 77]where the corporation is not a principal-business corporation, within the meaning assigned by subsection 66(15) of the Act, an amount equal to the total of the corporation’sCanadian exploration and development expenses incurred by the corporation before the end of the year, except to the extent that those expenses were deducted in computing the corporation’s income for the year or for a previous taxation year, andcumulative Canadian exploration expense, within the meaning assigned by subsection 66.1(6) of the Act, at the end of the year minus any deduction under subsection 66.1(3) of the Act in computing the corporation’s income for the year,an amount equal to the corporation’s cumulative Canadian development expense, within the meaning assigned by subsection 66.2(5) of the Act, at the end of the year minus any deduction under subsection 66.2(2) of the Act in computing the corporation’s income for the year,an amount equal to the corporation’s cumulative Canadian oil and gas property expense, within the meaning assigned by subsection 66.4(5) of the Act, at the end of the year minus any deduction under subsection 66.4(2) of the Act in computing the corporation’s income for the year,an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each debt owing to it, or any other right of the corporation to receive an amount, that was outstanding as a result of the disposition by it of property in respect of which an amount would be included, by virtue of paragraph (a), (b) or (h), in its qualified investment in property in Canada at the end of the year if the property had not been disposed of by it before the end of that year,an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each property, other than a Canadian resource property, that was described in the corporation’s inventory in respect of a business carried on by it in Canada,an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each debt (other than a debt referred to in paragraph (e) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the corporation’s income for the year) owing to itin respect of any transaction by virtue of which an amount has been included in computing its income for the year or for a previous year from a business carried on by it in Canada, orwhere any part of its ordinary business carried on in Canada was the lending of money, in respect of a loan made by the corporation in the ordinary course of that part of its business, and[Repealed, SOR/2009-302, s. 7]an amount equal to the allowable liquid assets of the corporation at the end of the year,exceeds the aggregate ofan amount equal to the total of all amounts each of which is an amount deducted under paragraph 20(1)(l), (l.1) or (n) of the Act in computing the corporation’s income for the year from a business carried on by the corporation in Canada,an amount equal to the aggregate of all amounts each of which is an amount deducted by the corporation in the year under subparagraph 40(1)(a)(iii) or 44(1)(e)(iii) of the Act in respect of a debt referred to in paragraph (e);an amount equal to the aggregate of each amount owing by the corporation at the end of the year on account ofthe purchase price of property that is referred to in paragraph (a), (b) or (f) or that would be so referred to but for the fact that it has been disposed of before the end of the year,Canadian exploration and development expenses, Canadian exploration expense, Canadian development expense or Canadian oil and gas property expense, or[Repealed, 2016, c. 12, s. 77]any other outlay or expense made or incurred by the corporation to the extent that it was deducted in computing its income for the year or for a previous taxation year from a business carried on by it in Canada;an amount equal to the aggregate of all amounts each of which is an amount equal to that proportion of the amount owing (other than an amount owing on account of an outlay or expense referred to in paragraph (l)) by the corporation at the end of the year on account of an obligation outstanding at any time in the year in respect of which interest is stipulated to be payable by it thatthe interest paid or payable on the obligation by the corporation in respect of the year that is deductible, or would be deductible but for subsection 18(2), (3.1) or (4) or section 21 of the Act, in computing its income for the year from a business carried on by it in Canada,is ofthe interest paid or payable on the obligation by the corporation in respect of the year;the amount, if any, by whichthe amount (referred to in this paragraph as “Part I liability”), if any, by which the tax payable for the year by the corporation under Part I of the Act exceeds the amount, if any, paid by the corporation before the end of the year on account thereof,exceedsthat proportion of the Part I liability that the amount, if any, in respect of the corporation for the year that is the lesser ofthe amount, if any, by which the total of all amounts each of which is a taxable capital gain of the corporation for the year from a disposition of a taxable Canadian property that was not used or held by it in the year in the course of carrying on business in Canada exceeds the total of all amounts each of which is an allowable capital loss of the corporation for the year from a disposition of such a property, andthe amount that would be determined under clause (A) for the year if it were read without reference to the expression “that was not used or held by it in the year in the course of carrying on business in Canada”,is of the corporation’s taxable income earned in Canada for the year; and[Repealed, SOR/2009-302, s. 7]the amount, if any, by whichthe amount (referred to in this paragraph as “provincial tax liability”), if any, by which any income taxes payable for the year by the corporation to the government of a province (to the extent that such taxes were not deductible under Part I of the Act in computing the corporation’s income for the year from a business carried on by it in Canada) exceeds the amount, if any, paid by the corporation before the end of the year on account thereof,exceedsthat proportion of the provincial tax liability that the amount, if any, in respect of the corporation for the year that is the lesser ofthe amount, if any, by which the total of all amounts each of which is a taxable capital gain of the corporation for the year from a disposition of a taxable Canadian property that was not used or held by it in the year in the course of carrying on business in Canada exceeds the total of all amounts each of which is an allowable capital loss of the corporation for the year from a disposition of such a property, andthe amount that would be determined under clause (A) for the year if it were read without reference to the expression “that was not used or held by it in the year in the course of carrying on business in Canada”,is of the corporation’s taxable income earned in Canada for the year.[Repealed, SOR/2009-302, s. 7][Repealed, SOR/2009-302, s. 7]For the purposes of paragraph (2)(i), the “allowable liquid assets of the corporation at the end of the year” is an amount equal to the lesser ofthe aggregate ofthe amount of Canadian currency owned by the corporation at the end of that year,the balance standing to the credit of the corporation at the end of that year as or on account of amounts deposited with a branch or other office in Canada ofa bank,a corporation licenced or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, ora credit union, andan amount equal to the aggregate of the cost amount to the corporation at the end of that year of each bond, debenture, bill, note, mortgage or similar obligation that was not described in the corporation’s inventory in respect of a business carried on by it in Canada (other than a debt referred to in paragraph (2)(e) or (g) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the corporation’s income for the year), that was issued by a person resident in Canada with whom the corporation was dealing at arm’s length and that matures within one year after the date on which it was acquired by the corporation,to the extent that such amounts are attributable to the profits of the corporation from carrying on a business in Canada, or are used or held by the corporation in the year in the course of carrying on a business in Canada; andan amount equal to 4/3 of the quotient obtained by dividingthe aggregate of all amounts that would otherwise be determined under subparagraphs (a)(i), (ii) and (iii) if the references therein to “at the end of that year” were read as references to “at the end of each month in that year”,bythe number of months in that year.For the purposes of subsection (1), where, at the end of a taxation year, a corporation is a member of a partnership that was carrying on business in Canada at any time in that year, the corporation’s qualified investment in property in Canada at the end of the year is an amount equal to the aggregate ofthe amount, if any, that would be determined under subsection (2) if the corporation were not, at the end of the year, a member of a partnership that was carrying on business in Canada at any time in the year; andan amount equal to the portion of the amount of the partnership’s qualified investment in property in Canada at the end of the last fiscal period of the partnership ending in the taxation year of the corporation that may reasonably be attributed to the corporation, having regard to all the circumstances including the rights the corporation would have, if the partnership ceased to exist, to share in the distribution of the property owned by the partnership for the purpose of gaining or producing income from a business carried on by it in Canada.For the purposes of subsection (4), a partnership’s “qualified investment in property in Canada” at the end of a fiscal period is the amount, if any, by which the aggregate ofthe cost amount to the partnership, at the end of the fiscal period, of land in Canada owned by it at that time for the purpose of gaining or producing income from a business carried on by it in Canada, other than land that isdescribed in the inventory of the partnership,depreciable property,a Canadian resource property, orland the cost of which is or was deductible in computing the income of the partnership or the income of a member of the partnership,an amount equal to the aggregate of the cost amount to the partnership, immediately after the end of the fiscal period, of each depreciable property in Canada owned by it for the purpose of gaining or producing income from a business carried on by it in Canada,an amount equal to 4/3 of the cumulative eligible capital of the partnership immediately after the end of the fiscal period in respect of each business carried on by it in Canada,an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each debt owing to it, or any other right of the partnership to receive an amount, that was outstanding as a result of the disposition by it of property in respect of which an amount would be included, by virtue of paragraph (a), (b) or (c), in its qualified investment in property in Canada at the end of the fiscal period if the property had not been disposed of by it before the end of that fiscal period,an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each property, other than a Canadian resource property, that was described in the partnership’s inventory in respect of a business carried on by it in Canada,an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each debt (other than a debt referred to in paragraph (d) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the partnership’s income for the fiscal period) owing to itin respect of any transaction by virtue of which an amount has been included in computing its income for the fiscal period or for a previous fiscal period or in computing the income of a member of the partnership for a previous taxation year from a business carried on in Canada by the partnership, orwhere any part of its ordinary business carried on in Canada was the lending of money, in respect of a loan made by the partnership in the ordinary course of that part of its business, andan amount equal to the allowable liquid assets of the partnership at the end of the fiscal period,exceeds the aggregate ofan amount equal to the total of all amounts each of which is an amount deducted under paragraph 20(1)(l), (l.1) or (n) of the Act in computing the partnership’s income for the fiscal period from a business carried on by the partnership in Canada;an amount equal to the aggregate of all amounts each of which is an amount deducted by the partnership in the fiscal period under subparagraph 40(1)(a)(iii) or 44(1)(e)(iii) of the Act in respect of a debt referred to in paragraph (d);an amount equal to the aggregate of each amount owing by the partnership at the end of the fiscal period on account ofthe purchase price of property that is referred to in paragraph (a), (b) or (e) or that would be so referred to but for the fact that it has been disposed of before the end of the fiscal period,Canadian exploration and development expenses, Canadian exploration expense, Canadian development expense or Canadian oil and gas property expense,an eligible capital expenditure made or incurred by the partnership before the end of the fiscal period in respect of a business carried on by it in Canada, orany other outlay or expense made or incurred by the partnership to the extent that it was deducted in computing its income for the fiscal period or for a previous fiscal period, or in computing the income of a member of the partnership for a previous taxation year, from a business carried on in Canada by the partnership; andan amount equal to the aggregate of all amounts each of which is an amount equal to that proportion of the amount owing (other than an amount owing on account of an outlay or expense referred to in paragraph (j)) by the partnership at the end of the fiscal period on account of an obligation outstanding at any time in the period in respect of which interest is stipulated to be payable by it thatthe interest paid or payable on the obligation by the partnership in respect of the fiscal period that is deductible, or would be deductible but for subsection 18(2) or (3.1) or section 21 of the Act, in computing its income for the fiscal period from a business carried on by it in Canada,is ofthe interest paid or payable on the obligation by the partnership in respect of the fiscal period.For the purposes of paragraph (5)(g), the “allowable liquid assets of the partnership at the end of the fiscal period” is an amount equal to the lesser ofthe total of the following amounts (to the extent that those amounts are attributable to the profits of the partnership from carrying on a business in Canada, or are used or held by the partnership in the year in the course of carrying on a business in Canada):the amount of Canadian currency owned by the partnership at the end of that fiscal period,the balance standing to the credit of the partnership at the end of that fiscal period as or on account of amounts deposited with a branch or other office in Canada ofa bank,a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, ora credit union, andan amount equal to the aggregate of the cost amount to the partnership at the end of that fiscal period of each bond, debenture, bill, note, mortgage, hypothec or similar obligation that was not described in the partnership’s inventory in respect of a business carried on by it in Canada (other than a debt referred to in paragraph (5)(d) or (f) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the partnership’s income for the fiscal period), that was issued by a person resident in Canada with whom all the members of the partnership were dealing at arm’s length and that matures within one year after the date on which it was acquired by the partnership; andan amount equal to 4/3 of the quotient obtained by dividingthe aggregate of all amounts that would otherwise be determined under subparagraphs (a)(i), (ii) and (iii) if the references therein to “at the end of that fiscal period” were read as references to “at the end of each month in that fiscal period”,bythe number of months in that fiscal period.Subsections (4) to (6) shall be read and construed as if each of the assumptions in paragraphs 96(1)(a) to (g) of the Act were made.For the purpose of paragraph 219(1)(j) of the Act, the allowance of an authorized foreign bank for a taxation year in respect of its investment in property in Canada is prescribed to be the amount, if any, by whichthe average of all amounts, each of which is the amount for a calculation period (within the meaning assigned by subsection 20.2(1) of the Act) of the bank for the year that is the greater ofthe amount determined by the formula0.05 × AwhereAis the amount of the element A in the formulae in subsection 20.2(3) of the Act for the period, andthe amount by whichthe total of the cost amount to the bank, at the end of the period (or, in the case of depreciable property or eligible capital property, immediately after the end of the year), of each asset in respect of the bank’s Canadian banking business that is an asset recorded in the books of account of the business in a manner consistent with the manner in which it is required to be treated for the purpose of the branch financial statements (within the meaning assigned by subsection 20.2(1) of the Act) for the yearexceedsthe amount equal to the total ofthe amount determined by the formulaL + BAwhereLis the amount of the element L in the formulae in subsection 20.2(3) of the Act for the period, andBAis the amount of the element BA in the formulae in subsection 20.2(3) of the Act for the period, andthe amount claimed by the bank under clause 20.2(3)(b)(ii)(A) of the Actexceedsthe total of all amounts each of which is an amount that would be determined under paragraph (2)(j), (k), (n) or (o) if that provision applied to the bank for the year, except to the extent that the amount reflects a liability of the bank that has been included in the element L in the formulae in subsection 20.2(3) of the Act for the bank’s last calculation period for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-656, s. 2; SOR/84-948, s. 4; SOR/90-258, s. 1; SOR/91-78, s. 2; SOR/93-395, s. 1; SOR/94-686, ss. 8(F), 47, 58 to 61(F), 62, 63 to 65(F), 78(F), 79(F), 81(F); SOR/2009-302, s. 7; SOR/2010-93, s. 11; 2016, c. 12, s. 77
Reduction of Certain Amounts To Be Deducted or Withheld
Subject to subsection (2), where a non-resident person (in this section referred to as the “payee”) has filed with the Minister the payee’s required statement for the year, the amount otherwise required by subsections 215(1) to (3) of the Act to be deducted or withheld from any qualifying payment paid or credited by a person resident in Canada (in this section referred to as the “payer”) to the payee in the year and after the required statement for the year was so filed is hereby reduced by the amount determined in accordance with the following rules:determine the amount by whichthe amount that would, if the payee does not make an election in respect of the year under section 217 of the Act, be the tax payable by the payee under Part XIII of the Act on the aggregate of the amounts estimated by him in his required statement for the year pursuant to paragraph (a) of the definition required statement in subsection (4),exceedsthe amount that would, if the payee makes the election referred to in subparagraph (i), be the tax payable (on the assumption that no portion of the payee’s income for the year was income earned in the year in a province) by the payee under Part I of the Act on his estimated taxable income calculated by him in his required statement for the year pursuant to paragraph (b) of the definition required statement in subsection (4),determine the percentage that the amount determined under paragraph (a) is of the aggregate of the amounts estimated by him in his required statement for the year pursuant to paragraph (a) of the definition required statement in subsection (4),where the determination of a percentage under paragraph (b) results in a fraction, disregard the fraction for the purposes of paragraph (d),multiply the percentage determined under paragraph (b) by the amount of the qualifying payment,and the product obtained under paragraph (d) is the amount by which the amount required to be deducted or withheld is reduced.Subsection (1) does not apply to reduce the amount to be deducted or withheld from a qualifying payment if, after the qualifying payment has been paid or credited by the payer, the aggregate of all qualifying payments that the payer has paid or credited to the payee in the year would exceed the amount estimated, in respect of that payer, by the payee in his required statement for the year pursuant to paragraph (a) of the definition required statement in subsection (4).Where a payee has filed with the Minister a written notice indicating that certain information or estimates in the payee’s required statement for the year are incorrect and setting out the correct information or estimates that should be substituted therefor or where the Minister is satisfied that certain information or estimates in a payee’s required statement for the year are incorrect and that the Minister has the correct information or estimates that should be substituted therefor, for the purposes of making the calculations in subsection (1) with respect to any qualifying payment paid or credited to the payee after the time when he has filed that notice or after the time when the Minister is so satisfied, as the case may be, the incorrect information or estimates shall be disregarded and the required statement for the year shall be deemed to contain only the correct information or estimates.In this section,qualifying payment in relation to a non-resident person means any amountpaid or credited, or to be paid or credited, to him as, on account or in lieu of payment of, or in satisfaction of, any amount described in paragraph 212(1)(f) or (h) or in any of paragraphs 212(1)(j), (k), (l), (m) or (q) of the Act, andon which tax under Part XIII of the Act is, or would be, but for an election by him under section 217 of the Act, payable by him; (paiement admissible)required statement of a payee for a taxation year means a written statement signed by him that contains, in respect of the payee,the name and address of each payer of a qualifying payment in the year and, in respect of each such payer, an estimate by the payee of the aggregate of such qualifying payments, anda calculation by him of his estimated taxable income earned in Canada for the year, on the assumption that he makes the election in respect of the year under section 217 of the Act, and such information as may be necessary for the purpose of estimating such income. (état exigé)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-656, s. 3; SOR/94-686, s. 50(F)
[Repealed, SOR/2009-302, s. 8][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 57(F); SOR/2009-302, s. 8
[Repealed, SOR/2003-5, s. 13]Elections in Respect of Deceased TaxpayersProperty Dispositions
Any election under subsection 164(6) of the Act shall be made by the legal representative of a deceased taxpayer by filing with the Minister the following documents:a letter from the legal representative specifyingthe part of the one or more capital losses from the disposition of properties, if any, under paragraph 164(6)(c) of the Act, andthe part of the amount, if any, under paragraph 164(6)(d) of the Actin respect of which the election is made;where an amount is specified under subparagraph (a)(i), a schedule of the capital losses and capital gains referred to in paragraph 164(6)(a) of the Act;where an amount is specified under subparagraph (a)(ii),a schedule of the amounts of undepreciated capital cost described in paragraph 164(6)(b) of the Act,a statement of the amount that, but for subsection 164(6) of the Act, would be the non-capital loss of the estate for its first taxation year, anda statement of the amount that, but for subsection 164(6) of the Act, would be the farm loss of the estate for its first taxation year.[Repealed, SOR/88-165, s. 5]The documents referred to in subsection (1) shall be filed not later than the day that is the later ofthe last day provided by the Act for the filing of a return that the legal representative of a deceased taxpayer is required or has elected to file under the Act in respect of the income of that deceased taxpayer for the taxation year in which he died; andthe day the return of the income for the first taxation year of the deceased taxpayer’s estate is required to be filed under paragraph 150(1)(c) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-696, s. 1; SOR/88-165, s. 5
Realization of Options
An election under subsection 164(6.1) of the Act shall be made by the legal representative of a deceased taxpayer by filing with the Minister a letter from the legal representative setting out the following:the amount of the benefit referred to in subparagraph 164(6.1)(a)(i) of the Act;the value of the right, and the amount paid for the right, referred to in subparagraph 164(6.1)(a)(ii) of the Act;the deducted amount, referred to in subparagraph 164(6.1)(a)(iii) of the Act; andthe amount of the loss referred to in paragraph 164(6.1)(b) of the Act.The letter shall be filed not later than the day that is the later ofthe last day provided by the Act for the filing of a return that the legal representative of a deceased taxpayer is required or has elected to file under the Act in respect of the income of that deceased taxpayer for the taxation year in which he or she died, andthe day the return of the income for the first taxation year of the deceased taxpayer’s estate is required to be filed under paragraph 150(1)(c) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-123, s. 4
Annual Instalments
Any election by a deceased taxpayer’s legal representative under subsection 159(5) of the Act shall be made by filing with the Minister the prescribed form on or before the day on or before which payment of the first of the “equal consecutive annual instalments” referred to in that subsection is required to be made.
Capital Cost AllowancesDeductions Allowed
Immediate expensingFor the purposes of paragraph 20(1)(a) of the Act, a deduction is allowed in computing an eligible person or partnership’s income for each taxation year equal to the lesser ofthe eligible person or partnership’s immediate expensing limit for the taxation year,the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year (before making any deduction under this Part for the taxation year) of property that is designated immediate expensing property for the taxation year, andif the eligible person or partnership is not a Canadian-controlled private corporation, the amount of income, if any, earned from the source of income that is a business or property (computed without regard to paragraph 20(1)(a) of the Act) in which the relevant designated immediate expensing property is used for the eligible person or partnership’s taxation year.Undepreciated capital cost — immediate expensingBefore computing any other deduction permitted under this Part and Schedules II to VI, the amount of any deduction made under subsection (0.1) by an eligible person or partnership in respect of a designated immediate expensing property of a prescribed class shall be deducted from the undepreciated capital cost of the particular class to which the property belongs.Expenditures excluded from paragraph (0.1)(b)For the purposes of paragraph (0.1)(b), in respect of property of a class in Schedule II that is immediate expensing property of an eligible person or partnership solely because of subparagraph (c)(i) of the definition immediate expensing property in subsection 1104(3.1), amounts incurred by any person or partnership in respect of the property are not to be included in determining the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year (before making any deduction under this Part for the taxation year) of property that is designated immediate expensing property for the taxation year if the amounts are incurred before April 19, 2021 (if the eligible person or partnership is a Canadian-controlled private corporation) or before 2022 (if the eligible person or partnership is an individual or Canadian partnership), unlessthe property was acquired by an eligible person or partnership from another person or partnership (referred to in this paragraph as the “transferee” and the “transferor”, respectively)if the transferee is a Canadian-controlled private corporation, after April 18, 2021, orif the transferee is an individual or a Canadian partnership, after December 31, 2021;the transferee was eitherthe eligible person or partnership, ora person or partnership that does not deal at arm’s length with the eligible person or partnership; andthe transferordealt at arm’s length with the transferee, andheld the property as inventory.For the purposes of paragraphs 8(1)(j) and (p) and 20(1)(a) of the Act, the following deductions are allowed in computing a taxpayer’s income for each taxation year:Ratessubject to subsection (2), such amount as the taxpayer may claim in respect of property of each of the following classes in Schedule II not exceeding in respect of propertyof Class 1, 4 per cent,of Class 2, 6 per cent,of Class 3, 5 per cent,of Class 4, 6 per cent,of Class 5, 10 per cent,of Class 6, 10 per cent,of Class 7, 15 per cent,of Class 8, 20 per cent,of Class 9, 25 per cent,of Class 10, 30 per cent,of Class 10.1, 30 per cent,of Class 11, 35 per cent,of Class 12, 100 per cent,of Class 14.1, 5 per cent,of Class 16, 40 per cent,of Class 17, 8 per cent,of Class 18, 60 per cent,of Class 22, 50 per cent,of Class 23, 100 per cent,of Class 25, 100 per cent,of Class 26, 5 per cent,of Class 28, 30 per cent,of Class 30, 40 per cent,of Class 31, 5 per cent,of Class 32, 10 per cent,of Class 33, 15 per cent,of Class 35, 7 per cent,of Class 37, 15 per cent,of Class 41, 25 per cent,of Class 41.1, 25 per cent,of Class 41.2, 25 per cent,of Class 42, 12 per cent,of Class 43, 30 per cent,of Class 43.1, 30 per cent,of Class 43.2, 50 per cent,of Class 44, 25 per cent,of Class 45, 45 per cent,of Class 46, 30 per cent,of Class 47, 8 per cent,of Class 48, 15 per cent,of Class 49, 8 per cent,of Class 50, 55 per cent,of Class 51, 6 per cent,of Class 52, 100 per cent,of Class 53, 50 per cent,of Class 54, 30 per cent,of Class 55, 40 per cent,of Class 56, 30 per cent,of Class 57, 8 per cent,of Class 58, 20 per cent,of Class 59, 100 per cent, andof Class 60, 30 per cent,of the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class;Class 1where a separate class is prescribed by subsection 1101(5b.1) for a property of a taxpayer that is a building and at least 90 per cent of the floor space of the building is used at the end of the taxation year for the manufacturing or processing in Canada of goods for sale or lease, such amount as the taxpayer may claim not exceeding six per cent of the undepreciated capital cost to the taxpayer of the property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);where a separate class is prescribed by subsection 1101(5b.1) for a property of a taxpayer that is a building, at least 90 per cent of the floor space of the building is used at the end of the taxation year for a non-residential use in Canada and an additional allowance is not allowed for the year under paragraph (a.1) in respect of the property, such amount as the taxpayer may claim not exceeding two per cent of the undepreciated capital cost to the taxpayer of the property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);any additional amount that the taxpayer may claim in respect of property that is used as part of an eligible liquefaction facility for which a separate class is prescribed by subsection 1101(5b.2), not exceeding the lesser ofthe income for the taxation year from the taxpayer’s eligible liquefaction activities in respect of the eligible liquefaction facility (taking into consideration any deduction under paragraph (yb) and before making any deduction under this paragraph), and6% of the undepreciated capital cost to the taxpayer of property of that separate class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);Class 13such amount as the taxpayer may claim in respect of the capital cost to the taxpayer of property of Class 13 in Schedule II, not exceedingif the capital cost of the property was incurred in the taxation year and after November 12, 1981,if the property is an accelerated investment incentive property and the capital cost of the property was incurred before 2024, the lesser of150 per cent of the amount for the year calculated in accordance with Schedule III, andthe amount determined for paragraph 1(b) of Schedule III, andif the property is not an accelerated investment incentive property and is not described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2), 50 per cent of the amount for the year calculated in accordance with Schedule III, andin any other case, the amount for the year calculated in accordance with Schedule III,and, for the purposes of this paragraph and Schedule III, the capital cost to a taxpayer of a property shall be deemed to have been incurred at the time at which the property became available for use by the taxpayer;Class 14such amount as he may claim in respect of property of Class 14 in Schedule II not exceeding the lesser ofthe total ofthe aggregate of the amounts for the year obtained by apportioning the capital cost to the taxpayer of each property over the life of the property remaining at the time the cost was incurred, andif the property is accelerated investment incentive property, the portion of the amount determined under clause (A) that is in respect of the property multiplied by0.5, if the property becomes available for use in the year and before 2024, and0.25, if the property becomes available for use in the year and after 2023, andthe undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class;Additional Allowances — Class 14.1for a taxation year that ends before 2027, such additional amount as the taxpayer may claim in respect of property of Class 14.1 of Schedule II not exceeding2% of the particular amount by which the undepreciated capital cost of the class at the beginning of 2017 exceeds the total of all amounts each of which isthe amount of a deduction taken under paragraph 20(1)(a) of the Act in respect of the class for a preceding taxation year, andequal to three times the amount of the capital cost of a property deemed by subsection 13(39) of the Act to be acquired by the taxpayer in the year or a preceding year, andthe amount determined by the formulaA − BwhereAis the lesser of$ 500, andthe undepreciated capital cost of the class to the taxpayer as of the end of the year (before making any deduction under paragraph 20(1)(a) of the Act in respect of the class for the year), andBis the total of all amounts deductible for the year under paragraph 20(1)(a) of the Act in respect of the class because of subparagraph (i) or (a)(xii.1);In Lieu of Double Depreciationsuch additional amount as he may claim not exceeding in the case of property described in each of the classes in Schedule II, the lesser ofone-half the amount that would have been allowed to him in respect of property of that class under subparagraph 6(n)(ii) of the Income War Tax Act if that act were applicable to the taxation year, andthe undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this paragraph for the taxation year) of property of the class;Timber Limits and Cutting Rightssuch amount as he may claim not exceeding the amount calculated in accordance with Schedule VI in respect of the capital cost to him of a property, other than a timber resource property, that is a timber limit or a right to cut timber from a limit;Class 15such amount as he may claim not exceeding the amount calculated in accordance with Schedule IV in respect of the capital cost to him of property of Class 15 in Schedule II;Industrial Mineral Minessuch amount as he may claim not exceeding the amount calculated in accordance with Schedule V in respect of the capital cost to him of a property that is an industrial mineral mine or a right to remove industrial minerals from an industrial mineral mine;[Repealed, SOR/78-377, s. 3]Additional Allowances — Fishing Vesselssuch additional amount as he may claim in the case of property of a separate class prescribed by subsection 1101(2) not exceeding the lesser ofthe amount by which the depreciation that could have been taken on the property, if the Orders in Council referred to in that subsection were applicable to the taxation year, exceeds the amount allowed under paragraph (a) in respect of the property, andthe undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this paragraph for the taxation year) of property of the class;Additional Allowances — Classes 1, 2, 3, and 6[Repealed, SOR/95-244, s. 1]Additional Allowances — Certified Productionssuch additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(5k) not exceeding the lesser ofthe aggregate of his income for the year from that property and from property described in paragraph (n) of Class 12 in Schedule II, determined before making any deduction under this paragraph, andthe undepreciated capital cost to him of property of that separate class as of the end of the year before making any deduction under this paragraph for the year;Additional Allowance — Canadian Film or Video Productionsuch additional amount as the taxpayer claims in respect of property for which a separate class is prescribed by subsection 1101(5k.1) not exceeding the lesser ofthe taxpayer’s income for the year from the property, determined before making any deduction under this paragraph, andthe undepreciated capital cost to the taxpayer of the property of that separate class at the end of the year (before making any deduction under this paragraph for the year and computed without reference to subsection (2));Class 19where the taxpayer is a corporation that had a degree of Canadian ownership in the taxation year, or is an individual who was resident in Canada in the taxation year for not less than 183 days, such amount as he may claim in respect of property of Class 19 in Schedule II that was acquired in a particular taxation year not exceeding the lesser of50 per cent of the capital cost thereof to him, andthe amount by which the capital cost thereof to him exceeds the aggregate of the amounts deducted in respect thereof in computing his income for previous taxation years,but the aggregate of amounts deductible for a taxation year in respect of property acquired in each of the particular taxation years, under this paragraph, shall not exceed the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class;where the taxpayer is not entitled to make a deduction under paragraph (n) in computing his income for a taxation year, such amount as he may claim in respect of property of Class 19 in Schedule II not exceeding 20 per cent of the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class;Class 20such amount as he may claim in respect of property of Class 20 in Schedule II that was acquired in a particular taxation year not exceeding the lesser of20 per cent of the capital cost thereof to him, andthe amount by which the capital cost thereof to him exceeds the aggregate of the amounts deducted in respect thereof in computing his income for previous taxation years,but the aggregate of amounts deductible for a taxation year in respect of property acquired in each of the particular taxation years, under this paragraph, shall not exceed the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class;Class 21such amount as he may claim in respect of property of Class 21 in Schedule II that was acquired in a particular taxation year not exceeding the lesser of50 per cent of the capital cost thereof to him, andthe amount by which the capital cost thereof to him exceeds the aggregate of the amounts deducted in respect thereof in computing his income for previous taxation years,but the aggregate of amounts deductible for a taxation year in respect of property acquired in each of the particular taxation years, under this paragraph, shall not exceed the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class;[Repealed, SOR/78-377, s. 3]Additional Allowances — Grain Storage Facilitiessuch additional amount as he may claim in respect of property included in Class 3, 6 or 8 in Schedule IIthat isa grain elevator situated in that part of Canada that is defined in section 2 of the Canada Grain Act as the “Eastern Division” the principal use of whichis the receiving of grain directly from producers for storage or forwarding or both,is the receiving and storing of grain for direct manufacture or processing into other products, orhas been certified by the Minister of Agriculture to be the receiving of grain that has not been officially inspected or weighed,an addition to a grain elevator described in clause (A),fixed machinery installed in a grain elevator in respect of which, or in respect of an addition to which, an additional amount has been or may be claimed under this paragraph,fixed machinery, designed for the purpose of drying grain, installed in a grain elevator described in clause (A),machinery designed for the purpose of drying grain on a farm, ora building or other structure designed for the purpose of storing grain on a farm,that was acquired by the taxpayer in the taxation year or in one of the three immediately preceding taxation years, at a time that was after April 1, 1972 but before August 1, 1974, andthat was not used for any purpose whatever before it was acquired by the taxpayer,not exceeding the lesser ofwhere the property is included in Class 3, 22 per cent of the capital cost thereof, where the property is included in Class 6, 20 per cent of the capital cost thereof or where the property is included in Class 8,14 per cent of the capital cost thereof in the case of property referred to in clause (i)(C), (D) or (F), and14 per cent of the lesser of $15,000 and the capital cost thereof in the case of property described in clause (i)(E), andthe undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this paragraph for the taxation year) of property of the class;Classes 24, 27, 29 and 34for the taxation year that includes November 12, 1981, such amount as he may claim in respect of property of each of Classes 24, 27, 29 and 34 in Schedule II not exceeding the aggregate of50 per cent of the lesser ofthe capital cost to him of all designated property of the class acquired by him in the year, andthe undepreciated capital cost to him of property of the class as of the end of the year (computed as if no amount were included in respect of property, other than designated property of the class, acquired after November 12, 1981 and before making any deduction under this paragraph for the year),the amount, if any, by which the amount determined under clause (i)(B) in respect of the class exceeds the amount determined under clause (i)(A) in respect of the class, andthe lesser of25 per cent of the capital cost to him of all property, other than designated property, of the class acquired by him in the year, andthe undepreciated capital cost to him of property of the class as of the end of the year (before making any deduction under this paragraph for the year);for taxation years commencing after November 12, 1981, such amount as he may claim in respect of property of each of Classes 24, 27, 29 and 34 in Schedule II not exceeding the aggregate ofthe aggregate ofthe lesser of50 per cent of the capital cost to him of all designated property of the class acquired by him in the year, andthe undepreciated capital cost to him of property of the class as of the end of the year (before making any deduction under this paragraph for the year and, where any of the property referred to in subclause (I) was acquired by virtue of a specified transaction, computed as if no amount were included in respect of property, other than designated property of the class acquired by him in the year), and25 per cent of the lesser ofthe undepreciated capital cost to him of property of the class as of the end of the year (computed as if no amount were included in respect of designated property of the class acquired by him in the year and before making any deduction under this paragraph for the year), andthe capital cost to him of all property, other than designated property, of the class acquired by him in the year, andthe lesser ofthe amount, if any, by whichthe undepreciated capital cost to him of property of the class as of the end of the year (before making any deduction under this paragraph for the year)exceedsthe capital cost to him of all property of the class acquired by him in the year, andan amount equal to the aggregate of50 per cent of the capital cost to him of all property of the class acquired by him in the immediately preceding taxation year, other than designated property of the class acquired in a specified transaction, andthe amount, if any, by which the amount determined under clause (A) for the year with respect to the class exceeds the aggregate of 75 per cent of the capital cost to him of all property, other than designated property, of the class acquired by him in the immediately preceding taxation year and 50 per cent of the capital cost to him of designated property of the class acquired by him in the immediately preceding taxation year, other than designated property of the class acquired in a specified transaction,and for the purposes of this paragraph and paragraph (t), designated property of a class meansproperty of the class acquired by him before November 13, 1981,property deemed to be designated property of the class by virtue of paragraph (2.1)(g) or (2.2)(j), andproperty described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2),and, for the purposes of this paragraph,specified transaction means a transaction to which subsection 85(5), 87(1), 88(1), 97(4) or 98(3) or (5) of the Act applies, andsubject to paragraph (2.2)(j), a property shall be deemed to have been acquired by a taxpayer at the time at which the property became available for use by the taxpayer;[Repealed, SOR/78-377, s. 3]Canadian Vesselssuch amount as the taxpayer may claim in respect of property that isa vessel described in subsection 1101(2a),included in a separate prescribed class because of subsection 13(14) of the Act, ora property that has been constituted a prescribed class by subsection 24(2) of Chapter 91 of the Statutes of Canada, 1966-67,not exceeding the lesser ofthe capital cost of the property to the taxpayer multiplied by50 per cent, in the case of an accelerated investment incentive property acquired in the year and before 2024,16 2/3 per cent, in the case of property acquired in the year, other thanaccelerated investment incentive property, andproperty described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2), and33 1/3 per cent, in any other case, andthe undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under this paragraph for the taxation year) of property of the class,and, for the purposes of subparagraph (iv), a property shall be deemed to have been acquired by a taxpayer at the time at which the property became available for use by the taxpayer for the purposes of the Act;Additional Allowances — Offshore Drilling Vesselssuch additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(2b) not exceeding 15 per cent of the undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);Additional Allowances — Class 28subject to section 1100A, such additional amount as he may claim in respect of property described in Class 28 acquired for the purpose of gaining or producing income from a mine or in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101 (4a), not exceeding the lesser ofthe taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.1), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, andthe undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (computed without reference to subsection (2) and before making any deduction under this paragraph for the taxation year);subject to section 1100A, such additional amount as he may claim in respect of property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4b), not exceeding the lesser ofthe taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, andthe undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this paragraph for the taxation year);Additional Allowances — Class 41such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4c), not exceeding the lesser ofthe taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, andthe undepreciated capital cost to the taxpayer of property of that class as of the end of a taxation year (computed without reference to subsection (2) and before making any deduction under this paragraph for the taxation year);Additional Allowances — Class 41.1such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4e), not exceeding the amount determined by the formulaA × BwhereAis the lesser ofthe taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, andthe undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year computedwithout reference to subsection (2),after making any deduction under paragraph (a) for the taxation year, andbefore making any deduction under this paragraph; andBis the percentage that is the total ofthat proportion of 100% that the number of days in the taxation year that are before 2011 is of the number of days in the taxation year,that proportion of 90% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year,that proportion of 80% that the number of days in the taxation year that are in 2012 is of the number of days in the taxation year,that proportion of 60% that the number of days in the taxation year that are in 2013 is of the number of days in the taxation year,that proportion of 30% that the number of days in the taxation year that are in 2014 is of the number of days in the taxation year, and0%, if one or more days in the year are after 2014;Additional Allowances — Class 41.2 — Single Mine Propertiessuch additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4g), not exceeding the amount determined by the formulaA × BwhereAis the lesser ofthe taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, andthe undepreciated capital cost to the taxpayer of property of that class as of the end of the year computedwithout reference to subsection (2),after making any deduction under paragraph (a) for the year, andbefore making any deduction under this paragraph, andBis the percentage that is the total ofthat proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and0%, if one or more days in the year are after 2020;such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4d), not exceeding the lesser ofthe taxpayer’s income for the year from the mines, before making any deduction under this paragraph, section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, andthe undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (computed without reference to subsection (2) and before making any deduction under this paragraph for the taxation year);Additional Allowances — Class 41.1 — Multiple Mine Propertiessuch additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4f), not exceeding the amount determined by the formulaA × BwhereAis the lesser ofthe taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, andthe undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year computedwithout reference to subsection (2),after making any deduction under paragraph (a) for the taxation year, andbefore making any deduction under this paragraph; andBis the percentage that is the total ofthat proportion of 100% that the number of days in the taxation year that are before 2011 is of the number of days in the taxation year,that proportion of 90% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year,that proportion of 80% that the number of days in the taxation year that are in 2012 is of the number of days in the taxation year,that proportion of 60% that the number of days in the taxation year that are in 2013 is of the number of days in the taxation year,that proportion of 30% that the number of days in the taxation year that are in 2014 is of the number of days in the taxation year, and0%, if one or more days in the year are after 2014;Additional allowances Class 41.2 — Multiple Mine Propertiessuch additional amount as the taxpayer may claim in respect of a property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4h), not exceeding the amount determined by the formulaA × BwhereAis the lesser ofthe taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, andthe undepreciated capital cost to the taxpayer of property of that class as of the end of the year computedwithout reference to subsection (2),after making any deduction under paragraph (a) for the year, andbefore making any deduction under this paragraph, andBis the percentage that is the total ofthat proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and0%, if one or more days in the year are after 2020;Additional Allowance — Class 47any additional amount as the taxpayer may claim in respect of property used as part of an eligible liquefaction facility for which a separate class is prescribed by subsection 1101(4i), not exceeding the lesser ofthe income for the taxation year from the taxpayer’s eligible liquefaction activities in respect of the eligible liquefaction facility (taking into consideration any deduction under paragraph (a.3) and before making any deduction under this paragraph), and22% of the undepreciated capital cost to the taxpayer of property of that separate class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);Additional Allowances — Railway Carssuch additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by paragraph 1101(5d)(c) not exceeding eight per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by paragraph 1101(5d)(d), (e) or (f), not exceeding six per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5d.1), not exceeding three per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year);where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5d.2), not exceeding six percent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year);Additional Allowances — Railway Track and Related Propertysuch additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(5e) not exceeding 4% of the undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5e.1), not exceeding six per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year);where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5e.2), not exceeding five per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year);such additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(5f) not exceeding 3% of the undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);Additional Allowances — Railway Expansion and Modernization Propertywhere the taxpayer owns and operates a railway as a common carrier, such additional amount as he may claim in respect of property of a class in Schedule II (in this paragraph referred to as “designated property” of the class)that isincluded in Class 1 in Schedule II by virtue of paragraph (h) or (i) of that Class,a bridge, culvert, subway or tunnel included in Class 1 in Schedule II that is ancillary to railway track and grading,a trestle included in Class 3 in Schedule II that is ancillary to railway track and grading,included in Class 6 in Schedule II by virtue of paragraph (j) of that Class,machinery or equipment included in Class 8 in Schedule II that is ancillary torailway track and grading, orrailway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor,machinery or equipment included in Class 8 in Schedule II thatwas acquired principally for the purpose of maintaining or servicing, oris ancillary to and used as part of,a railway locomotive or railway car,included in Class 10 in Schedule II by virtue of subparagraph (m)(i), (ii) or (iii) of that Class,included in Class 28 in Schedule II by virtue of subparagraph (d)(ii) of that Class (other than property referred to in subparagraph (m)(iv) of Class 10), orincluded in Class 35 in Schedule II,that was acquired by him principally for use in or is situated in Canada,that was acquired by him in respect of the railway in the taxation year or in one of the four immediately preceding taxation years, at a time that was after April 10, 1978 but before 1988, andthat was not used for any purpose whatever before it was acquired by him,not exceeding the lesser ofsix per cent of the aggregate of the capital cost to him of the designated property of the class, andthe undepreciated capital cost to him as of the end of the taxation year (after making all deductions claimed by him under other provisions of this subsection for the taxation year but before making any deduction under this paragraph for the taxation year) of property of the class.Class 38such amount as the taxpayer may claim in respect of property of Class 38 in Schedule II not exceeding that percentage which is the aggregate ofthat proportion of 40 per cent that the number of days in the taxation year that are in 1988 is of the number of days in the taxation year that are after 1987,that proportion of 35 per cent that the number of days in the taxation year that are in 1989 is of the number of days in the taxation year, andthat proportion of 30 per cent that the number of days in the taxation year that are after 1989 is of the number of days in the taxation yearof the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any deduction under this paragraph for the taxation year);Class 39such amount as the taxpayer may claim in respect of property of Class 39 in Schedule II not exceeding that percentage which is the aggregate ofthat proportion of 40 per cent that the number of days in the taxation year that are in 1988 is of the number of days in the taxation year that are after 1987,that proportion of 35 per cent that the number of days in the taxation year that are in 1989 is of the number of days in the taxation year,that proportion of 30 per cent that the number of days in the taxation year that are in 1990 is of the number of days in the taxation year, andthat proportion of 25 per cent that the number of days in the taxation year that are after 1990 is of the number of days in the taxation yearof the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any deduction under this paragraph for the taxation year);Class 40such amount as the taxpayer may claim in respect of property of Class 40 in Schedule II not exceeding that percentage which is the aggregate ofthat proportion of 40 per cent that the number of days in the taxation year that are in 1988 is of the number of days in the taxation year that are after 1987,that proportion of 35 per cent that the number of days in the taxation year that are in 1989 is of the number of days in the taxation year, andthat proportion of 30 per cent that the number of days in the taxation year that are in 1990 is of the number of days in the taxation yearof the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any deduction under this paragraph for the taxation year);Additional Allowance — Year 2000 Computer Hardware and Systems Softwarewhere the taxpayerhas elected for the year in prescribed manner,was not in the year a large corporation, as defined in subsection 225.1(8) of the Act, or a partnership any member of which was such a corporation in a taxation year that included any time that is in the partnership’s year, andacquired property included in paragraph (f) of Class 10 in Schedule IIin the year,after 1997 and before November 1999, andfor the purpose of replacing property that was acquired before 1998 that has a material risk of malfunctioning because of the change of the calendar year to 2000 and that is described in paragraph (f) of Class 10, or paragraph (o) of Class 12, in Schedule II,such additional amount as the taxpayer claims in respect of all property described in subparagraph (iii) not exceeding the least ofthe amount, if any, by which $50,000 exceeds the total ofthe total of all amounts each of which is an amount claimed by the taxpayer under this paragraph for a preceding taxation year,the total of all amounts each of which is an amount claimed by the taxpayer for the year or a preceding taxation year under paragraph (zh), andthe total of all amounts each of which is an amount claimed under this paragraph or paragraph (zh) by a corporation for a taxation year in which it was associated with the taxpayer,85% of the capital cost to the taxpayer of all property described in subparagraph (iii), andthe undepreciated capital cost to the taxpayer as of the end of the year (computed without reference to subsection (2) and after making all deductions claimed under other provisions of this subsection for the year but before making any deduction under this paragraph for the year) of property included in Class 10 in Schedule II; andAdditional Allowance — Year 2000 Computer Softwarewhere the taxpayerhas elected for the year in prescribed manner,was not in the year a large corporation, as defined in subsection 225.1(8) of the Act, or a partnership any member of which was such a corporation in a taxation year that included any time that is in the partnership’s year, andacquired property included in paragraph (o) of Class 12 in Schedule IIin the year,after 1997 and before November 1999, andfor the purpose of replacing property that was acquired before 1998 that has a material risk of malfunctioning because of the change of the calendar year to 2000 and that is described in paragraph (f) of Class 10, or paragraph (o) of Class 12, in Schedule II,such additional amount as the taxpayer claims in respect of all property described in subparagraph (iii) not exceeding the least ofthe amount, if any, by which $50,000 exceeds the total ofthe total of all amounts each of which is an amount claimed by the taxpayer under this paragraph for a preceding taxation year,the total of all amounts each of which is an amount claimed by the taxpayer for the year or a preceding taxation year under paragraph (zg), andthe total of all amounts each of which is an amount claimed under this paragraph or paragraph (zg) by a corporation for a taxation year in which it was associated with the taxpayer,50% of the capital cost to the taxpayer of all property described in subparagraph (iii), andthe undepreciated capital cost to the taxpayer as of the end of the year (computed without reference to subsection (2) and after making all deductions claimed under other provisions of this subsection for the year but before making any deduction under this paragraph for the year) of property included in Class 12 in Schedule II.Despite subsections (0.1), (1) and (3), the amount deductible by a taxpayer for a taxation year in respect of a property that is a specified leasing property at the end of the year is the lesser ofthe amount, if any, by which the aggregate ofall amounts that would be considered to be repayments in the year or a preceding year on account of the principal amount of a loan made by the taxpayer ifthe taxpayer had made the loan at the time that the property last became a specified leasing property and in a principal amount equal to the fair market value of the property at that time,interest had been charged on the principal amount of the loan outstanding from time to time at the rate, determined in accordance with section 4302, in effect at the earlier ofthe time, if any, before the time referred to in subclause (II), at which the taxpayer last entered into an agreement to lease the property, andthe time that the property last became a specified leasing property(or, where a particular lease provides that the amount paid or payable by the lessee of the property for the use of, or the right to use, the property varies according to prevailing interest rates in effect from time to time, and the taxpayer so elects, in respect of all of the property that is the subject of the particular lease, in the taxpayer’s return of income under Part I of the Act for the taxation year of the taxpayer in which the particular lease was entered into, the rate determined in accordance with section 4302 that is in effect at the beginning of the period for which the interest is being calculated), compounded semi-annually not in advance, andthe amounts that were received or receivable by the taxpayer before the end of the year for the use of, or the right to use, the property before the end of the year and after the time it last became a specified leasing property were blended payments of principal and interest, calculated in accordance with clause (B), on the loan applied firstly on account of interest on principal, secondly on account of interest on unpaid interest, and thirdly on account of principal, andthe amount that would have been deductible under this section for the taxation year (in this subparagraph referred to as the “particular year”) that includes the time (in this subparagraph referred to as the “particular time”) at which the property last became a specified leasing property of the taxpayer, ifthe property had been transferred to a separate prescribed class at the later ofthe beginning of the particular year, andthe time at which the property was acquired by the taxpayer,the particular year had ended immediately before the particular time, andwhere the property was not a specified leasing property immediately before the particular time, subsection (3) had applied,exceedsthe aggregate of all amounts deducted by the taxpayer in respect of the property by reason of this subsection before the commencement of the year and after the time at which it last became a specified leasing property; andthe amount, if any, by which,the aggregate of all amounts that would have been deducted by the taxpayer under this Part in respect of the property under paragraph 20(1)(a) of the Act in computing the income of the taxpayer for the year and all preceding taxation years had this subsection and subsections (11) and (15) not applied, and had the taxpayer, in each such year, deducted under paragraph 20(1)(a) of the Act the maximum amount allowed under this Part, read without reference to this subsection and subsections (11) and (15), in respect of the property,exceedsthe total depreciation allowed to the taxpayer before the commencement of the year in respect of the property.In this section and subsection 1101(5n), specified leasing property of a taxpayer at any time means depreciable property (other than exempt property) that isused at that time by the taxpayer or a person with whom the taxpayer does not deal at arm’s length principally for the purpose of gaining or producing gross revenue that is rent or leasing revenue,the subject of a lease at that time to a person with whom the taxpayer deals at arm’s length and that, at the time the lease was entered into, was a lease for a term of more than one year, andthe subject of a lease of property where the tangible property, other than exempt property, that was the subject of the lease had, at the time the lease was entered into, an aggregate fair market value in excess of $25,000,but, for greater certainty, does not include intangible property, or for civil law incorporeal property, (including systems software and property referred to in paragraph (w) of Class 10 or paragraph (n) or (o) of Class 12 in Schedule II).Despite subsections (0.1), (1) and (1.1), where, in a taxation year, a taxpayer has acquired a property that was not used by the taxpayer for any purpose in that year and the first use of the property by the taxpayer is a lease of the property in respect of which subsection (1.1) applies, the amount allowed to the taxpayer under subsections (0.1) and (1) in respect of the property for the year shall be deemed to be nil.For the purposes of this section,exempt property meansgeneral purpose office furniture or office equipment included in Class 8 in Schedule II (including, for greater certainty, mobile office equipment such as cellular telephones and pagers) or general purpose electronic data processing equipment and ancillary data processing equipment, included in paragraph (f) of Class 10 in Schedule II, other than any individual piece thereof having a capital cost to the taxpayer in excess of $1,000,000,general-purpose electronic data processing equipment and ancillary data processing equipment, included in Class 45, 50 or 52 in Schedule II, other than any individual item of that type of equipment having a capital cost to the taxpayer in excess of $1,000,000,furniture, appliances, television receivers, radio receivers, telephones, furnaces, hot-water heaters and other similar properties, designed for residential use,a property that is a motor vehicle that is designed or adapted primarily to carry individuals on highways and streets and that has a seating capacity for not more than the driver and eight passengers, or a motor vehicle of a type commonly called a van or pick-up truck, or a similar vehicle,a truck or tractor that is designed for hauling freight on highways,a trailer that is designed for hauling freight and to be hauled under normal operating conditions by a truck or tractor described in subparagraph (iv),a building or part thereof included in Class 1, 3, 6, 20, 31 or 32 in Schedule II (including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators) other than a building or part thereof leased primarily to a lessee that isa person who is exempt from tax by reason of section 149 of the Act,a person who uses the building in the course of carrying on a business the income from which is exempt from tax under Part I of the Act by reason of any provision of the Act, ora Canadian government, municipality or other Canadian public authority,who owned the building or part thereof at any time before the commencement of the lease (other than at any time during a period ending not later than one year after the later of the date the construction of the building or part thereof was completed and the date the building or part thereof was acquired by the lessee),vessel mooring space, andproperty that is included in Class 35 in Schedule II,and for the purposes of subparagraph (i), where a property is owned by two or more persons or partnerships, or any combination thereof, the capital cost of the property to each such person or partnership shall be deemed to be the total of all amounts each of which is the capital cost of the property to such a person or partnership;notwithstanding paragraph (a), “exempt property” does not include property that is the subject of a lease if that property had, at the time the lease was entered into, an aggregate fair market value in excess of $1,000,000 and the lessee of the property isa person who is exempt from tax by reason of section 149 of the Act,a person who uses the property in the course of carrying on a business, the income from which is exempt from tax under Part I of the Act by reason of any provision of the Act,a Canadian government, ora person not resident in Canada, except if the person uses the property primarily in the course of carrying on a business in Canada that is not a treaty-protected business;for the purposes of paragraph (a.1), if it is reasonable, having regard to all the circumstances, to conclude that one of the main reasons for the existence of two or more leases was to avoid the application of paragraph (a.1) by reason of each such lease being a lease of property where the property that was the subject of the lease had an aggregate fair market value, at the time the lease was entered into, not in excess of $1,000,000, each such lease shall be deemed to be a lease of property that had, at the time the lease was entered into, an aggregate fair market value in excess of $1,000,000;property shall be deemed to be the subject of a lease for a term of more than one year at any time where, at that timethe property had been leased by the lessee thereunder, a person with whom the lessee does not deal at arm’s length, or any combination thereof, for a period of more than one year ending at that time, orit is reasonable, having regard to all the circumstances, to conclude that the lessor thereunder knew or ought to have known that the lessee thereunder, a person with whom the lessee does not deal at arm’s length, or any combination thereof, would lease the property for more than one year; andfor the purposes of paragraph (1.11)(c), where it is reasonable, having regard to all the circumstances, to conclude that one of the main reasons for the existence of two or more leases was to avoid the application of subsection (1.1) by reason of each such lease being a lease of property where the tangible property, other than exempt property, that was the subject of the lease had an aggregate fair market value, at the time the lease was entered into, not in excess of $25,000, each such lease shall be deemed to be a lease of tangible property that had, at the time the lease was entered into, an aggregate fair market value in excess of $25,000.For the purposes of subsection (1.11) and notwithstanding subsection (1.13), where a taxpayer referred to in subsection (16) so elects in the taxpayer’s return of income under Part I of the Act for a taxation year in respect of the year and all subsequent taxation years, all of the property of the taxpayer that is the subject of leases entered into in those years shall be deemed not to be exempt property for those years and the aggregate fair market value of all of the tangible property that is the subject of each such lease shall be deemed to have been, at the time the lease was entered into, in excess of $25,000.Subject to subsection (1.16) and for the purposes of subsection (1.11), where at any time a taxpayer acquires property that is the subject of a lease with a remaining term at that time of more than one year from a person with whom the taxpayer was dealing at arm’s length, the taxpayer shall be deemed to have entered into a lease of the property at that time for a term of more than one year.Where, at any time, a taxpayer acquires from a person with whom the taxpayer is not dealing at arm’s length, or by virtue of an amalgamation (within the meaning assigned by subsection 87(1) of the Act), property that was specified leasing property of the person from whom, the taxpayer acquired it, the taxpayer shall, for the purposes of paragraph (1.1)(a) and for the purpose of computing the income of the taxpayer in respect of the lease for any period after the particular time, be deemed to be the same person as, and a continuation of, that person.For the purposes of subsections (1.1) and (1.11), where at any particular time a property (in this subsection referred to as a “replacement property”) is provided by a taxpayer to a lessee for the remaining term of a lease as a replacement for a similar property of the taxpayer (in this subsection referred to as the “original property”) that was leased by the taxpayer to the lessee, and the amount payable by the lessee for the use of, or the right to use, the replacement property is the same as the amount that was so payable in respect of the original property, the following rules apply:the replacement property shall be deemed to have been leased by the taxpayer to the lessee at the same time and for the same term as the original property;the amount of the loan referred to in clause (1.1)(a)(i)(A) shall be deemed to be equal to the amount of that loan determined in respect of the original property;the amount determined under subparagraph (1.1)(a)(ii) in respect of the replacement property shall be deemed to be equal to the amount so determined in respect of the original property;all amounts received or receivable by the taxpayer for the use of, or the right to use, the original property before the particular time shall be deemed to have been received or receivable, as the case may be, by the taxpayer for the use of, or the right to use, the replacement property; andthe original property shall be deemed to have ceased to be subject to the lease at the particular time.For the purposes of subsection (1.1), where for any period of time any amount that would have been received or receivable by a taxpayer during that period in respect of the use of, or the right to use, a property of the taxpayer during that period is not received or receivable by the taxpayer as a consequence of a breakdown of the property during that period and before the lease of that property is terminated, that amount shall be deemed to have been received or receivable, as the case may be, by the taxpayer.For the purposes of subsections (1.1) and (1.11), where at any particular timean addition or alteration (in this subsection referred to as “additional property”) is made by a taxpayer to a property (in this subsection referred to as the “original property”) of the taxpayer that is a specified leasing property at the particular time, andas a consequence of the addition or alteration, the aggregate amount receivable by the taxpayer after the particular time for the use of, or the right to use, the original property and the additional property exceeds the amount so receivable in respect of the original property,the following rules apply:the taxpayer shall be deemed to have leased the additional property to the lessee at the particular time,the term of the lease of the additional property shall be deemed to be greater than one year,the prescribed rate in effect at the particular time in respect of the additional property shall be deemed to be equal to the prescribed rate in effect in respect of the lease of the original property at the particular time,subsection (1.11) shall be read without reference to paragraph (c) thereof in respect of the additional property, andthe excess described in paragraph (b) shall be deemed to be an amount receivable by the taxpayer for the use of, or the right to use, the additional property.For the purposes of subsections (1.1) and (1.11), where at any timea lease (in this subsection referred to as the “original lease”) of property is renegotiated in the course of a bona fide renegotiation, andas a result of the renegotiation, the amount paid or payable by the lessee of the property for the use of, or the right to use, the property is altered in respect of a period after that time (otherwise than by reason of an addition or alteration to which subsection (1.19) applies),the following rules apply:the original lease shall be deemed to have expired and the renegotiated lease shall be deemed to be a new lease of the property entered into at that time, andparagraph (1.13)(b) shall not apply in respect of any period before that time during which the property was leased by the lessee or a person with whom the lessee did not deal at arm’s length.For the purposes of subsections (1.1) and (1.11), where a taxpayer leases to another person a building or part thereof that is not exempt property, the references to “one year” in paragraphs (1.11)(b) and (1.13)(b), subsection (1.15) and paragraph (1.19)(d) shall in respect of that building or part thereof be read as references to “three years”.Property Acquired in the YearThe amount that a taxpayer may deduct for a taxation year under subsection (1) in respect of property of a class in Schedule II is to be determined as if the undepreciated capital cost to the taxpayer at the end of the taxation year (before making any deduction under subsection (1) for the taxation year) of property of the class were adjusted by adding the positive or negative amount determined by the formulaA(B) − 0.5(C)whereAis, in respect of property of the class that became available for use by the taxpayer in the taxation year and that is accelerated investment incentive property or property included in any of Classes 54 to 56,if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 43.2, 53, 54, 55, 56, 59 or in Class 43 in the circumstances described in paragraph (d),if the class is Class 43.1,2 1/3, for property that became available for use by the taxpayer before 2024,1 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and5/6, for property that became available for use by the taxpayer after 2025,if the class is Class 43.2,1, for property that became available for use by the taxpayer before 2024,1/2, for property that became available for use by the taxpayer in 2024 or 2025, and1/10, for property that became available for use by the taxpayer after 2025,if the property is included in Class 53 or — for property acquired after 2025 — is included in Class 43 and would have been included in Class 53 if it had been acquired in 2025,1, for property that became available for use by the taxpayer before 2024,1/2, for property that became available for use by the taxpayer in 2024 or 2025, and5/6, for property included in Class 43 that became available for use by the taxpayer after 2025, and1/10, for property included in Class 53 that became available for use by the taxpayer after 2025,if the class is Class 54 or Class 56,2 1/3, for property that became available for use by the taxpayer before 2024,1 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and5/6, for property that became available for use by the taxpayer after 2025,if the class is Class 55,1 1/2, for property that became available for use by the taxpayer before 2024,7/8, for property that became available for use by the taxpayer in 2024 or 2025, and3/8, for property that became available for use by the taxpayer after 2025, andin any other case, nil;Bis the amount determined, in respect of the class, by the formulaD − EwhereDis the total of all amounts, if any, each of which is an amount included in the description of A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property of the class that became available for use by the taxpayer in the taxation year and that is accelerated investment incentive property or property included in any of Classes 54 to 56, andEis the amount, if any, by which the amount determined for G exceeds the amount determined for F in the description of C; andCis the amount determined, in respect of the class, by the formulaF − GwhereFis the total of all amounts each of whichis an amount added to the undepreciated capital cost to the taxpayer of property of the classbecause of element A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property (other than accelerated investment incentive property) that was acquired, or became available for use, by the taxpayer in the taxation year, orbecause of element C or D in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount that was repaid in the taxation year, andis not in respect ofproperty included in paragraph (1)(v), in paragraph (w) of Class 10 or in any of paragraphs (a) to (c), (e) to (i), (k), (l) and (p) to (s) of Class 12,property included in any of Classes 13, 14, 15, 23, 24, 27, 29, 34, 52 and 54 to 56,where the taxpayer was a corporation described in subsection (16) throughout the taxation year, property that was specified leasing property of the taxpayer at that time,property that was deemed to have been acquired by the taxpayer in a preceding taxation year by reason of the application of paragraph 16.1(1)(b) of the Act in respect of a lease to which the property was subject immediately before the time at which the taxpayer last acquired the property, orproperty considered to have become available for use by the taxpayer in the taxation year by reason of paragraph 13(27)(b) or (28)(c) of the Act, andGis the total of all amounts each of which is an amount deducted from the undepreciated capital cost to the taxpayer of property of the classbecause of element F or G in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property disposed of in the taxation year, orbecause of element J in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount the taxpayer received or was entitled to receive in the taxation year.Straddle yearsFor the purposes of subsection (2),if a taxation year begins in 2023 and ends in 2024, the factor determined for A in subsection (2) is to be replaced by the factor determined by the formula(A(B) + C(D))/(B + D)whereAis the factor otherwise determined for A in subsection (2) for 2023,Bis the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2023,Cis the factor otherwise determined for A in subsection (2) for 2024, andDis the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation were property that became available for use by the taxpayer in 2024; andif a taxation year begins in 2025 and ends in 2026, the factor determined for A in subsection (2) is to be replaced by the factor determined by the formula(A(B) + C(D))/(B + D)whereAis the factor otherwise determined for A in subsection (2) for 2025,Bis the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2025,Cis the factor otherwise determined for A in subsection (2) for 2026, andDis the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2026.Expenditures excluded from element DFor the purposes of subsection (2), in respect of property of a class in Schedule II that is accelerated investment incentive property of a taxpayer solely because of subparagraph 1104(4)(b)(i),amounts incurred by any person or partnership in respect of the property are not to be included in determining the amount for D in subsection (2) in respect of the classif the amounts are incurred before November 21, 2018, unlessthe property was acquired after November 20, 2018 by a person or partnership from another person or partnership (referred to in this subparagraph as the “transferee” and the “transferor”, respectively),the transferee was eitherthe taxpayer, ora person or partnership that does not deal at arm’s length with the taxpayer, andthe transferordealt at arm’s length with the transferee, andheld the property as inventory, andif the amounts are incurred after November 20, 2018 and amounts are deemed to have been deducted under paragraph 20(1)(a) or subsection 20(16), in respect of those amounts incurred, under paragraph 1104(4.1)(b); andany amount excluded from the amount determined for D in subsection (2) in respect of the class because of paragraph (a) is to be included in determining the amount for F in subsection (2) in respect of the class, unless no amount in respect of the property would be so included if the property were not accelerated investment incentive property of the taxpayer.Where a taxpayer has, after November 12, 1981 and before 1983, acquired or incurred a capital cost in respect of a property of a class in Schedule II andhe was obligated to acquire the property under the terms of an agreement in writing entered into before November 13, 1981 (or, where the property is a property described in Class 31 in Schedule II, before 1982),he or a person with whom he was not dealing at arm’s length commenced the construction, manufacture or production of the property before November 13, 1981 (or, where the property is a property described in Class 31 in Schedule II, before 1982),he or a person with whom he was not dealing at arm’s length had made arrangements, evidenced in writing for the construction, manufacture or production of the property that were substantially advanced before November 13, 1981 and the construction, manufacture or production commenced before June 1, 1982, orhe was obligated to acquire the property under the terms of an agreement in writing entered into before June 1, 1982 where arrangements, evidenced in writing, for the acquisition or leasing of the property were substantially advanced before November 13, 1981,the following rules apply:no amount shall be included under paragraph (2)(a) in respect of the property;where the property is a property to which paragraph (1)(b) applies, that paragraph shall be read, in respect of the property, as “such amount, not exceeding the amount for the year calculated in accordance with Schedule III, as he may claim in respect of the capital cost to him of property of Class 13 in Schedule II”;where the property is a property of a class to which paragraph (1)(t) or (ta) applies, the property shall be deemed to be designated property of the class; andwhere the property is a property described in paragraph (1)(v), subparagraph (iv) thereof shall be read, in respect of the property, as “33 1/3 per cent of the capital cost thereof to him, and”.Where a property of a class in Schedule II is acquired by a taxpayerin the course of a reorganization in respect of which, if a dividend were received by a corporation in the course of the reorganization, subsection 55(2) of the Act would not be applicable to the dividend by reason of the application of paragraph 55(3)(b) of the Act, or[Repealed, SOR/90-22, s. 1]from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired,and wherethe property was depreciable property of the person from whom it was acquired and was owned continuously by that person for the period froma day that was at least 364 days before the end of the taxation year of the taxpayer during which he acquired the property, orNovember 12, 1981to the day it was acquired by the taxpayer, orthe rules provided in subsection (2.1) or this subsection applied in respect of the property for the purpose of determining the allowance under subsection (1) to which the person from whom the taxpayer acquired the property was entitled,the following rules apply:no amount shall be included in determining an amount for F in subsection (2) in respect of the property;where the property is a property to which paragraph (1)(b) applies, that paragraph shall be read, in respect of the property, as “such amount, not exceeding the amount for the year calculated in accordance with Schedule III, as he may claim in respect of the capital cost to him of property of Class 13 in Schedule II”;where the property is a property of a class to which paragraph (1)(ta) applies,the property shall be deemed to be designated property of the class,for the purposes of computing the amount determined under paragraph (1)(ta) for any taxation year of the taxpayer ending after the time the property was actually acquired by the taxpayer, the property shall be deemed, other than for the purposes of paragraph (f), to have been acquired by the taxpayer immediately after the commencement of the taxpayer’s first taxation year that commenced after the time that is the earlier ofthe time the property was last acquired by the transferor of the property, andwhere the property was transferred in a series of transfers to which this subsection applies, the time the property was last acquired by the first transferor in that series,unlesswhere clause (A) applies, the property was acquired by the taxpayer before the end of the taxation year of the transferor of the property that includes the time at which that transferor acquired the property, orwhere clause (B) applies, the property was acquired by the taxpayer before the end of the taxation year of the first transferor that includes the time at which that transferor acquired the property,where the taxpayer is a corporation that was incorporated or otherwise formed after the end of the transferor’s, or where applicable, the first transferor’s, taxation year in which the transferor last acquired the property, the taxpayer shall be deemed, for the purposes of subparagraph (ii),to have been in existence throughout the period commencing immediately before the end of that year and ending immediately after the taxpayer was incorporated or otherwise formed, andto have had, throughout the period referred to in clause (A), fiscal periods ending on the day of the year on which the taxpayer’s first fiscal period ended, andthe property shall be deemed to have become available for use by the taxpayer at the earlier ofthe time it became available for use by the taxpayer, andif applicable,the time it became available for use by the person from whom the taxpayer acquired the property, determined without reference to paragraphs 13(27)(c) and (28)(d) of the Act, orthe time it became available for use by the first transferor in a series of transfers of the same property to which this subsection applies, determined without reference to paragraphs 13(27)(c) and (28)(d) of the Act; andif the property is a property described in paragraph (1)(v), its subparagraph (iv) shall be read, in respect of the property, as “33 1/3 per cent of the capital cost of the property to the taxpayer, and”.Where a taxpayer is deemed by a provision of the Act to have disposed of and acquired or reacquired a property,for the purposes of paragraph (2.2)(e) and subsections (19), 1101(lad) and 1102(14) and (14.1), the acquisition or reacquisition shall be deemed to have been from a person with whom the taxpayer was not dealing at arm’s length at the time of the acquisition or reacquisition; andfor the purposes of paragraphs (2.2)(f) and (g), the taxpayer shall be deemed to be the person from whom the taxpayer acquired or reacquired the property.If a taxpayer has disposed of a property and, because of paragraph (2.2)(h), no amount is required to be included in determining an amount for F in subsection (2) in respect of the property by the person that acquired the property, no amount shall be included by the taxpayer in determining an amount for G in subsection (2) in respect of the disposition of the property.For the purposes of subsection (2), where a taxpayer has disposed of property described in Class 10 of Schedule II that would qualify as property described in paragraph (e) of Class 16 of Schedule II if the property had been acquired by the taxpayer after November 12, 1981, the proceeds of disposition of the property shall be deemed to be proceeds of disposition of property described in Class 16 of Schedule II and not of property described in Class 10 of Schedule II.Where in a particular taxation year a taxpayer disposes of a property included in Class 10.1 in Schedule II that was owned by the taxpayer at the end of the immediately preceding taxation year,the deduction allowed under subsection (1) in respect of the property in computing the taxpayer’s income for the year shall be determined as if the property had not been disposed of in the particular year and the number of days in the particular year were one-half of the number of days in the particular year otherwise determined; andno amount shall be deducted under subsection (1) in respect of the property in computing the taxpayer’s income for any subsequent taxation year.Taxation Years Less Than 12 MonthsWhere a taxation year is less than 12 months, the amount allowed as a deduction under this section, other than under subsection (0.1) and any of paragraphs (1)(c), (e), (f), (g), (m), (w), (x), (y) and (ya), shall not exceed that proportion of the maximum amount otherwise allowable that the number of days in the taxation year is of 365.Reserved.[Repealed, SOR/78-377, s. 6]Employee’s Automobile or Aircraft[Repealed, SOR/91-673, s. 1]Reserved.Railway SidingsWhere a taxpayer, other than an operator of a railway system, has made a capital expenditure pursuant to a contract or arrangement with an operator of a railway system under which a railway siding that does not become the taxpayer’s property is constructed to provide service to the taxpayer’s place of business or to a property acquired by the taxpayer for the purpose of gaining or producing income, there is hereby allowed to the taxpayer, in computing income for the taxation year from the business or property, as the case may be, a deduction equal to such amount as he may claim not exceeding four per cent of the amount remaining, if any, after deducting from the capital expenditure the aggregate of all amounts previously allowed as deductions in respect of the expenditure.PatentsWhere a part or all of the cost of a patent is determined by reference to the use of the patent, in lieu of the deduction allowed under paragraph (1)(c), a taxpayer, in computing his income for a taxation year from a business or property, as the case may be, may deduct such amount as he may claim in respect of property of Class 14 in Schedule II not exceeding the lesser ofthe aggregate ofthat part of the capital cost determined by reference to the use of the patent in the year, andthe amount that would be computed under subparagraph (1)(c)(i) if the capital cost of the patent did not include the amounts determined by reference to the use of the patent in that year and previous years; andthe undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class.Where a part or all of the capital cost to a taxpayer of property that is a patent, or a right to use patented information, is determined by reference to the use of the property and that property is included in Class 44 in Schedule II, in lieu of the deduction allowed under paragraph (1)(a), there may be deducted in computing the taxpayer’s income for a taxation year from a business or property such amount as the taxpayer may claim in respect of property of the class not exceeding the lesser ofthe total ofthat part of the capital cost that is determined by reference to the use of the property in the year, andthe amount that would be deductible for the year by reason of paragraph (1)(a) in respect of property of the class if the capital cost of property of the class did not include the amounts determined under subparagraph (i) for the year and preceding taxation years; andthe undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class.Reserved.Rental PropertiesDespite subsections (0.1) and (1), in no case shall the aggregate of deductions, each of which is a deduction in respect of property of a prescribed class owned by a taxpayer that includes rental property owned by him, otherwise allowed to the taxpayer by virtue of subsection (0.1) or (1) in computing his income for a taxation year, exceed the amount, if any, by whichthe aggregate of amounts each of which ishis income for the year from renting or leasing a rental property owned by him, computed without regard to paragraph 20(1)(a) of the Act, orthe income of a partnership for the year from renting or leasing a rental property of the partnership, to the extent of the taxpayer’s share of such income,exceedsthe aggregate of amounts each of which ishis loss for the year from renting or leasing a rental property owned by him, computed without regard to paragraph 20(1)(a) of the Act, orthe loss of a partnership for the year from renting or leasing a rental property of the partnership, to the extent of the taxpayer’s share of such loss.Subject to subsection (13), subsection (11) does not apply in respect of a taxation year of a taxpayer that was, throughout the year,a life insurance corporation, or a corporation whose principal business was the leasing, rental, development or sale, or any combination thereof, of real property owned by it; ora partnership each member of which wasa corporation described in paragraph (a), oranother partnership described in this paragraph.For the purposes of subsection (11), where a taxpayer or partnership has a leasehold interest in a property that is property of Class 1, 3 or 6 in Schedule II by virtue of subsection 1102(5) and the property is leased by the taxpayer or partnership to a person who owns the land, an interest therein or an option in respect thereof, on which the property is situated, this section shall be read without reference to subsection (12) with respect to that property.In this section and section 1101, rental property of a taxpayer or a partnership meansa building owned by the taxpayer or the partnership, whether owned jointly with another person or otherwise, ora leasehold interest in real property, if the leasehold interest is property of Class 1, 3, 6 or 13 in Schedule II and is owned by the taxpayer or the partnership,if, in the taxation year in respect of which the expression is being applied, the property was used by the taxpayer or the partnership principally for the purpose of gaining or producing gross revenue that is rent, but, for greater certainty, does not include a property leased by the taxpayer or the partnership to a lessee, in the ordinary course of the taxpayer’s or partnership’s business of selling goods or rendering services, under an agreement by which the lessee undertakes to use the property to carry on the business of selling, or promoting the sale of, the taxpayer’s or partnership’s goods or services.For the purposes of subsection (14), gross revenue derived in a taxation year fromthe right of a person or partnership, other than the owner of a property, to use or occupy the property or a part thereof, andservices offered to a person or partnership that are ancillary to the use or occupation by the person or partnership of the property or the part thereofshall be considered to be rent derived in that year from the property.Subsection (14.1) does not apply in any particular taxation year to property owned bya corporation, where the property is used in a business carried on in the year by the corporation;an individual, where the property is used in a business carried on in the year by the individual in which he is personally active on a continuous basis throughout that portion of the year during which the business is ordinarily carried on; ora partnership, where the property is used in a business carried on in the year by the partnership if at least 2/3 of the income or loss, as the case may be, of the partnership for the year is included in the determination of the income ofmembers of the partnership who are individuals that are personally active in the business of the partnership on a continuous basis throughout that portion of the year during which the business is ordinarily carried on, andmembers of the partnership that are corporations.Leasing PropertiesDespite subsections (0.1) and (1), in no case shall the aggregate of deductions, each of which is a deduction in respect of property of a prescribed class that is leasing property owned by a taxpayer, otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing his income for a taxation year, exceed the amount, if any, by whichthe aggregate of amounts each of which ishis income for the year from renting, leasing or earning royalties from, a leasing property or a property that would be a leasing property but for subsection (18), (19) or (20) where such property is owned by him, computed without regard to paragraph 20(1)(a) of the Act, orthe income of a partnership for the year from renting, leasing or earning royalties from, a leasing property or a property that would be a leasing property but for subsection (18), (19) or (20) where such property is owned by the partnership, to the extent of the taxpayer’s share of such income,exceedsthe aggregate of amounts each of which ishis loss for the year from renting, leasing or earning royalties from, a property referred to in subparagraph (a)(i), computed without regard to paragraph 20(1)(a) of the Act, orthe loss of a partnership for the year from renting, leasing or earning royalties from, a property referred to in subparagraph (a)(ii), to the extent of the taxpayer’s share of such loss.Subsection (15) does not apply in respect of a taxation year of a taxpayer that was, throughout the year,a corporation whose principal business wasrenting or leasing of leasing property or property that would be leasing property but for subsection (18), (19) or (20), orrenting or leasing of property referred to in subparagraph (i) combined with selling and servicing of property of the same general type and description,if the gross revenue of the corporation for the year from such principal business was not less than 90 per cent of the gross revenue of the corporation for the year from all sources; ora partnership each member of which wasa corporation described in paragraph (a), oranother partnership described in this paragraph.Subject to subsection (18), in this section and section 1101, leasing property of a taxpayer or a partnership means depreciable property other thanrental property,computer tax shelter property, orproperty referred to in paragraph (w) of Class 10 or in paragraph (n) of Class 12 in Schedule II,where such property is owned by the taxpayer or the partnership, whether jointly with another person or otherwise, if, in the taxation year in respect of which the expression is being applied, the property was used by the taxpayer or the partnership principally for the purpose of gaining or producing gross revenue that is rent, royalty or leasing revenue, but for greater certainty, does not include a property leased by the taxpayer or the partnership to a lessee, in the ordinary course of the taxpayer’s or partnership’s business of selling goods or rendering services, under an agreement by which the lessee undertakes to use the property to carry on the business of selling, or promoting the sale of, the taxpayer’s or partnership’s goods or services.For the purposes of subsection (17), where, in a taxation year, a taxpayer or a partnership has acquired a propertythat was not used for any purpose in that year, andthe first use of the property by the taxpayer or the partnership was principally for the purpose of gaining or producing gross revenue that is rent, royalty or leasing revenue,the property shall be deemed to have been used in the taxation year in which it was acquired principally for the purpose of gaining or producing gross revenue that is rent, royalty or leasing revenue.For the purposes of subsections (1.11) and (17), gross revenue derived in a taxation year fromthe right of a person or partnership, other than the owner of a property, to use or occupy the property or a part thereof, andservices offered to a person or partnership that are ancillary to the use or occupation by the person or partnership of the property or the part thereofshall be considered to be rent derived in the year from the property.Subsection (17.2) does not apply in any particular taxation year to property owned bya corporation, where the property is used in a business carried on in the year by the corporation;an individual, where the property is used in a business carried on in the year by the individual in which he is personally active on a continuous basis throughout that portion of the year during which the business is ordinarily carried on; ora partnership, where the property is used in a business carried on in the year by the partnership if at least 2/3 of the income or loss, as the case may be, of the partnership for the year is included in the determination of the income ofmembers of the partnership who are individuals that are personally active in the business of the partnership on a continuous basis throughout that portion of the year during which the business is ordinarily carried on, andmembers of the partnership that are corporations.Leasing property of a taxpayer or a partnership referred to in subsection (17) does not includeproperty that the taxpayer or the partnership acquired before May 26, 1976 or was obligated to acquire under the terms of an agreement in writing entered into before May 26, 1976;property the construction, manufacture or production of which was commenced by the taxpayer or the partnership before May 26, 1976 or was commenced under an agreement in writing entered into by the taxpayer or the partnership before May 26, 1976; orproperty that the taxpayer or the partnership acquired on or before December 31, 1976 or was obligated to acquire under the terms of an agreement in writing entered into on or before December 31, 1976, ifarrangements, evidenced by writing, respecting the acquisition, construction, manufacture or production of the property had been substantially advanced before May 26, 1976, andthe taxpayer or the partnership had before May 26, 1976 demonstrated a bona fide intention to acquire the property for the purpose of gaining or producing gross revenue that is rent, royalty or leasing revenue.Notwithstanding subsection (17), a property acquired by a taxpayerin the course of a reorganization in respect of which, if a dividend were received by a corporation in the course of the reorganization, subsection 55(2) of the Act would not be applicable to the dividend by reason of the application of paragraph 55(3)(b) of the Act, or[Repealed, SOR/90-22, s. 1]from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired,[Repealed, SOR/90-22, s. 1]that would otherwise be leasing property of the taxpayer, shall be deemed not to be leasing property of the taxpayer if immediately before it was so acquired by the taxpayer, it was, by virtue of subsection (18) or (20) or this subsection, not a leasing property of the person from whom the property was so acquired.Notwithstanding subsection (17), a property acquired by a taxpayer or partnership that is a replacement property (within the meaning assigned by subsection 13(4) of the Act), that would otherwise be a leasing property of the taxpayer or partnership, shall be deemed not to be a leasing property of the taxpayer or partnership if the property replaced, referred to in paragraph 13(4)(a) or (b) of the Act, was, by reason of subsection (18) or (19) or this subsection, not a leasing property of the taxpayer or partnership immediately before it was disposed of by the taxpayer or partnership.Computer Tax Shelter PropertyThe total of all amounts each of which is a deduction in respect of computer tax shelter property allowed to the taxpayer under subsection (0.1) or (1) in computing a taxpayer’s income for a taxation year shall not exceed the amount, if any, by whichthe total of all amounts each of which isthe taxpayer’s income for the year from a business in which computer tax shelter property owned by the taxpayer is used, computed without reference to any deduction under subsection (1) in respect of such property, orthe income of a partnership from a business in which computer tax shelter property of the partnership is used, to the extent of the share of such income that is included in computing the taxpayer’s income for the year,exceedsthe total of all amounts each of which isa loss of the taxpayer from a business in which computer tax shelter property owned by the taxpayer is used, computed without reference to any deduction under subsection (1) in respect of such property, ora loss of a partnership from a business in which computer tax shelter property of the partnership is used, to the extent of the share of such loss that is included in computing the taxpayer’s income for the year.For the purpose of this Part, computer tax shelter property of a person or partnership is depreciable property of a prescribed class in Schedule II that is computer software or property described in Class 50 or 52 wherethe person’s or partnership’s interest in the property is a tax shelter investment (as defined by subsection 143.2(1) of the Act) determined without reference to subsection (20.1); oran interest in the person or partnership is a tax shelter investment (as defined by subsection 143.2(1) of the Act) determined without reference to subsection (20.1).Certified Films and Video TapesNotwithstanding subsection (1), where a taxpayer (in this subsection and subsection (22) referred to as the “investor”) has acquired property of Class 10 or 12 in Schedule II that is a certified feature film or certified production (in this subsection and subsection (22) referred to as the “film or tape”), in no case shall the deduction in respect of property of that class otherwise allowed to the investor by virtue of subsection (1) in computing the investor’s income for a particular taxation year exceed the amount that it would be if the capital cost to the investor of the film or tape were reduced by the aggregate of amounts, each of which iswhere the principal photography or taping of the film or tape is not completed before the end of the particular taxation year, the amount, if any, by whichthe capital cost to the investor of the film or tape as of the end of the yearexceeds the aggregate ofwhere the principal photography or taping of the film or tape is completed within 60 days after the end of the year, the amount that may reasonably be considered to be the investor’s proportionate share of the production costs incurred in respect of the film or tape before the end of the year,where the principal photography or taping of the film or tape is not completed within 60 days after the end of the year, the amount that may reasonably be considered to be the investor’s proportionate share of the lesser ofthe production costs incurred in respect of the film or tape before the end of the year, andthe proportion of the production costs incurred to the date the principal photography or taping is completed that the percentage of the principal photography or taping completed as of the end of the year, as certified by the Minister of Communications, is of 100 per cent, andthe total of amounts determined under paragraphs (b) to (e) in respect of the film or tape as of the end of the year;where, at any time before the later ofthe date the principal photography or taping of the film or tape is completed, andthe date the investor acquired the film or tape,a revenue guarantee (other than a revenue guarantee that is certified by the Minister of Communications to be a guarantee under which the person who agrees to provide the revenue is a licensed broadcaster or bona fide film or tape distributor) is entered into in respect of the film or tape whereby it may reasonably be considered certain, having regard to all the circumstances, that the investor will receive revenue under the terms of the revenue guarantee, the amount, if any, that may reasonably be considered to be the portion of the revenue that has not been included in the investor’s income in the particular taxation year or a previous taxation year;where, at any time, a revenue guarantee, other thana revenue guarantee in respect of which paragraph (b) applies, ora revenue guarantee under which the person (in this subsection referred to as the “guarantor”) who agrees to provide the revenue under the terms of the guarantee is a person who does not deal at arm’s length with either the investor or the person from whom the investor acquired the film or tape (in this subsection referred to as the “vendor”) and in respect of which the Minister of Communications certifies thatthe guarantor is a licenced broadcaster or bona fide film or tape distributor, andthe cost of the film or tape does not include any amount for or in respect of the guarantee,is entered into in respect of the film or tape, the amount, if any, that may reasonably be considered to be the portion of the revenue that is to be received by the investor under the terms of the revenue guarantee that has not been included in the investor’s income in the particular taxation year or a preceding taxation year, ifthe guarantor and the investor are not dealing at arm’s length,the vendor and the guarantor are not dealing at arm’s length, orthe vendor or a person not dealing at arm’s length with the vendor undertakes in any way, directly or indirectly, to fulfill all or any part of the guarantor’s obligations under the terms of the revenue guarantee;where, at any time, a revenue guarantee, other than a revenue guarantee in respect of which paragraph (b) or (c) applies, is entered into in respect of the film or tape, the amount, if any, that may reasonably be considered to be the portion of the revenue that is to be received by the investor under the terms of the revenue guarantee thatis not due to the investor until a time that is more than four years after the first day on which the guarantor has the right to the use of the film or tape, andhas not been included in the investor’s income in the particular taxation year or a previous taxation year; andthe portion of any debt obligation of the investor outstanding at the end of the particular year that is convertible into an interest in the film or tape or in the investor.Despite subsections (0.1) and (1), where a taxpayer has acquired property described in paragraph (s) of Class 10 in Schedule II, or in paragraph (m) of Class 12 of Schedule II, the deduction in respect of the property otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing the taxpayer’s income for a taxation year shall not exceed the amount that it would be if the capital cost to the taxpayer of the property were reduced by the portion of any debt obligation of the taxpayer outstanding at the end of the year that is convertible into an interest or, for civil law, a right in the property or an interest in the taxpayer.Notwithstanding subsection (1), where an investor has acquired a film or tape after his 1977 taxation year and before 1979 and the principal photography or taping in respect of the film or tape is completed after a particular taxation year and not later than March 1, 1979, in no case shall the deduction in respect of property of Class 12 in Schedule II otherwise allowed to the investor by virtue of subsection (1) in computing his income for the particular taxation year exceed the amount, otherwise determined, if the capital cost to the investor of the film or tape were reduced by the amount, if any, by whichthe capital cost to the investor of the film or tape as of the end of the yearexceedsthe amount that may reasonably be considered to be the investor’s proportionate share of the production costs incurred in respect of the film or tape to March 1, 1979.For the purposes of paragraph (21)(a),in respect of a film or tape acquired in 1987, other than a film or tape in respect of which paragraph (b) applies, the references in paragraph (21)(a) to “within 60 days after the end of the year” shall be read as references to “before July, 1988”; andin respect of a film or tape acquired in 1987 or 1988 that is included in paragraph (n) of Class 12 in Schedule II and that is part of a series of films or tapes that includes another property included in that paragraph, the references in paragraph (21)(a) to “within 60 days after the end of the year” shall be read as references to “before 1989”.Specified Energy PropertyDespite subsections (0.1) and (1), in no case shall the total of deductions, each of which is a deduction in respect of property of Class 34, 43.1, 43.2, 47 or 48 in Schedule II that is specified energy property owned by a taxpayer, otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing the taxpayer’s income for a taxation year, exceed the amount, if any, by whichthe total of all amounts each of which isthe total ofthe amount that would be the income of the taxpayer for the year from property described in Class 34, 43.1, 43.2, 47 or 48 in Schedule II (other than specified energy property), or from the business of selling the product of that property, if that income were calculated after deducting the maximum amount allowable in respect of the property for the year under paragraph 20(1)(a) of the Act, andthe taxpayer’s income for the year from specified energy property or from the business of selling the product of that property, computed without regard to paragraph 20(1)(a) of the Act, orthe total ofthe taxpayer’s share of the amount that would be the income of a partnership for the year from property described in Class 34, 43.1, 43.2, 47 or 48 in Schedule II (other than specified energy property), or from the business of selling the product of that property, if that income were calculated after deducting the maximum amount allowable in respect of the property for the year under paragraph 20(1)(a) of the Act, andthe income of a partnership for the year from specified energy property or from the business of selling the product of that property of the partnership, to the extent of the taxpayer’s share of that income,exceedsthe total of all amounts each of which isthe taxpayer’s loss for the year from specified energy property or from the business of selling the product of that property, computed without regard to paragraph 20(1)(a) of the Act, orthe loss of a partnership for the year from specified energy property or from the business of selling the product of that property of the partnership, to the extent of the taxpayer’s share of that loss.Subject to subsections (27) to (29), in this section and section 1101, specified energy property of a taxpayer or partnership (in this subsection referred to as “the owner”) for a taxation year means property of Class 34 in Schedule II acquired by the owner after February 9, 1988 and property of Class 43.1, 43.2, 47 or 48 in Schedule II, other than a particular propertyacquired to be used by the owner primarily for the purpose of gaining or producing income from a business carried on in Canada (other than the business of selling the product of the particular property) or from another property situated in Canada, orleased in the year, in the ordinary course of carrying on a business of the owner in Canada, toa person who can reasonably be expected to use the property primarily for the purpose of gaining or producing income from a business carried on in Canada (other than the business of selling the product of the particular property) or from another property situated in Canada, ora corporation or partnership described in subsection (26),where the owner wasa corporation whose principal business was, throughout the year,the renting or leasing of leasing property or property that would be leasing property but for subsection (18), (19) or (20),the renting or leasing of property referred to in clause (A) combined with the selling and servicing of property of the same general type and description, orthe manufacturing of property described in Class 34, 43.1, 43.2, 47 or 48 in Schedule II that it sells or leases,and the gross revenue of the corporation for the year from that principal business was not less than 90 per cent of the gross revenue of the corporation for the year from all sources, ora partnership each member of which wasa corporation described in subparagraph (iii) or paragraph (26)(a), oranother partnership described in this subparagraph.Subsection (24) does not apply to a taxation year of a taxpayer that was, throughout the year,a corporation whose principal business throughout the year wasmanufacturing or processing,mining operations, orthe sale, distribution or production of electricity, natural gas, oil, steam, heat or any other form of energy or potential energy; ora partnership each member of which wasa corporation described in paragraph (a), oranother partnership described in this paragraph.Specified energy property of a person or partnership does not include property acquired by the person or partnership after February 9, 1988 and before 1990pursuant to an obligation in writing entered into by the person or partnership before February 10, 1988;pursuant to the terms of a prospectus, preliminary prospectus, registration statement or offering memorandum filed before February 10, 1988 with a public authority in Canada pursuant to and in accordance with the securities legislation of any province;pursuant to the terms of an offering memorandum distributed as part of an offering of securities wherethe offering memorandum contained a complete or substantially complete description of the securities contemplated in the offering as well as the terms and conditions of the offering of the securities,the offering memorandum was distributed before February 10, 1988,solicitations in respect of the sale of the securities contemplated by the offering memorandum were made before February 10, 1988, andthe sale of the securities was substantially in accordance with the offering memorandum; oras part of a project where, before February 10, 1988,some of the machinery or equipment to be used in the project had been acquired, or agreements in writing for the acquisition of that machinery or equipment had been entered into, by or on behalf of the person or partnership, andan approval had been received by or on behalf of the person or partnership from a government environmental authority in respect of the location of the project.A property acquired by a taxpayerin the course of a reorganization in respect of which, if a dividend were received by a corporation in the course of the reorganization, subsection 55(2) of the Act would not be applicable to the dividend by reason of the application of paragraph 55(3)(b) of the Act, orfrom a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquiredthat would otherwise be specified energy property of the taxpayer shall be deemed not to be specified energy property of the taxpayer if, immediately before it was so acquired by the taxpayer, it was not, by virtue of subsection (27), this subsection or subsection (29), specified energy property of the person from whom the property was so acquired.A property acquired by a taxpayer or partnership that is a replacement property (within the meaning assigned by subsection 13(4) of the Act), that would otherwise be specified energy property of the taxpayer or partnership, shall be deemed not to be specified energy property of the taxpayer or partnership if the property replaced, referred to in paragraph 13(4)(a) or (b) of the Act, was, by virtue of subsection (27), (28) or this subsection, not specified energy property of the taxpayer or partnership immediately before it was disposed of by the taxpayer or partnership.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 1; SOR/78-377, ss. 3 to 6; SOR/78-948, s. 1; SOR/79-427, s. 1; SOR/80-942, s. 1; SOR/81-470, s. 1; SOR/82-265, s. 1; SOR/83-340, s. 1; SOR/83-432, s. 1; SOR/84-454, s. 1; SOR/84-948, s. 5; SOR/85-13, s. 1; SOR/85-174, s. 1; SOR/86-254, s. 1; SOR/86-1092, ss. 3(F), 4(F); SOR/86-1136, s. 1; SOR/88-392, s. 1; SOR/89-27, s. 1; SOR/90-22, s. 1; SOR/90-257, s. 1; SOR/90-670, s. 1; SOR/91-196, s. 1; SOR/91-673, s. 1; SOR/92-681, s. 3; SOR/94-128, s. 1; SOR/94-140, s. 2; SOR/94-169, s. 1; SOR/94-170, s. 1; SOR/94-686, ss. 9(F), 48, 58(F), 78(F), 79(F), 81(F); SOR/95-244, s. 1; SOR/97-377, s. 1; SOR/99-179, s. 1; SOR/2000-248, s. 2; SOR/2005-126, s. 1; SOR/2005-371, s. 1; SOR/2005-414, s. 1; SOR/2006-117, s. 1; SOR/2007-19, s. 1; SOR/2009-115, s. 1; SOR/2009-126, s. 1; SOR/2010-93, s. 12; SOR/2011-9, s. 1; 2013, c. 34, s. 383, c. 40, s. 100; 2015, c. 36, s. 21; SOR/2015-117, s. 1; 2016, c. 12, s. 782019, c. 29, s. 522021, c. 23, s. 842022, c. 10, s. 342024, c. 15, s. 79SOR/2024-231, s. 5
Exempt Mining Income
[Repealed, SOR/88-165, s. 6]Any election under subparagraph 13(21)(f)(vi) of the Act in respect of property of a prescribed class acquired by a corporation for the purpose of gaining or producing income from a mine shall be made by filing with the Minister, not later than the day on or before which the corporation is required to file a return of income pursuant to section 150 of the Act for its taxation year in which the exempt period in respect of the mine ended, one of the following documents in duplicate:where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made in respect of that class; andwhere the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election in respect of that class by the person or persons legally entitled to administer the affairs of the corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 7; SOR/78-493, s. 1(F); SOR/79-426, s. 1; SOR/88-165, s. 6; SOR/94-686, s. 79(F)
Separate ClassesBusinesses and Properties
Where more than one property of a taxpayer is described in the same class in Schedule II and whereone of the properties was acquired for the purpose of gaining or producing income from a business, andone of the properties was acquired for the purpose of gaining or producing income from another business or from the property,a separate class is hereby prescribed for the properties thatwere acquired for the purpose of gaining or producing income from each business; andwould otherwise be included in the class.For the purposes of subsection (1),a life insurance business, andan insurance business other than a life insurance business,shall each be regarded as a separate business.Where, at the end of 1971, more than one property of a taxpayer who was a member of a partnership at that time is described in the same class in Schedule II and whereone of the properties can reasonably be regarded to be the interest of the taxpayer in a depreciable property that is partnership property of the partnership, andone of the properties is property other than property referred to in paragraph (a),a separate class is hereby prescribed for all properties each of whichis a property referred to in paragraph (a); andwould otherwise be included in the class.Subject to subsection (5h), where more than one property of a taxpayer is described in the same class in Schedule II, and one or more of the properties is a rental property of the taxpayer the capital cost of which to the taxpayer was not less than $50,000, a separate class is hereby prescribed for each such rental property of the taxpayer that would otherwise be included in the same class, other than a rental property that was acquired by the taxpayer before 1972 or that isa building or an interest therein, ora leasehold interest acquired by the taxpayer by reason of the fact that the taxpayer erected a building on leased land,erection of which building was commenced by the taxpayer before 1972 or pursuant to an agreement in writing entered into by the taxpayer before 1972.Notwithstanding subsection (1ac), a rental property acquired by a taxpayerin the course of a reorganization in respect of which, if a dividend were received by a corporation in the course of the reorganization, subsection 55(2) of the Act would not be applicable to the dividend by reason of the application of paragraph 55(3)(b) of the Act, or[Repealed, SOR/90-22, s. 2]from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired,[Repealed, SOR/90-22, s. 2]that would otherwise be rental property of the taxpayer of a separate class prescribed under subsection (1ac), shall be deemed not to be property of a separate class prescribed under that subsection if, immediately before it was so acquired by the taxpayer, it was a rental property of the person from whom the property was so acquired of a prescribed class other than a separate class prescribed under that subsection.Except in the case of a corporation or partnership described in subsection 1100(12), where more than one property of a taxpayer is described in the same class in Schedule II and whereone of the properties is a rental property other than a property of a separate class prescribed under subsection (1ac), andone of the properties is a property other than rental property,a separate class is hereby prescribed for properties thatare described in paragraph (a); andwould otherwise be included in the class.A separate class is hereby prescribed for each property included in Class 10.1 in Schedule II.If more than one property of a taxpayer is described in the same class in Schedule II, and one or more of the properties is a property in respect of which the taxpayer is a transferee that has elected under subsection 13(4.2) of the Act (each of which is referred to in this subsection as an “elected property”), a separate class is prescribed for each elected property of the taxpayer that would otherwise be included in the same class.[Repealed, SOR/79-670, s. 1]Fishing VesselsWhere a property of a taxpayer that would otherwise be included in Class 7 in Schedule II is a property in respect of which a depreciation allowance could have been taken under Order in CouncilP.C. 2798 of April 10, 1942,P.C. 7580 of August 26, 1942, as amended by P.C. 3297 of April 22, 1943, orP.C. 3979 of June 1, 1944,if those Orders in Council were applicable to the taxation year, a separate class is hereby prescribed for each property, including the furniture, fittings and equipment attached thereto.Canadian VesselsA separate class is hereby prescribed for each vessel of a taxpayer, including the furniture, fittings, radiocommunication equipment and other equipment attached thereto, thatwas constructed in Canada;is registered in Canada; andhad not been used for any purpose whatever before it was acquired by the taxpayer.Offshore Drilling VesselsA separate class is hereby prescribed for all vessels described in Class 7 in Schedule II, including the furniture, fittings, radiocommunication equipment and other equipment attached thereto, acquired by a taxpayerafter May 25, 1976 and designed principally for the purpose ofdetermining the existence, location, extent or quality of accumulations of petroleum or natural gas (other than mineral resources), ordrilling oil or gas wells; orafter May 22, 1979 and designed principally for the purpose of determining the existence, location, extent or quality of mineral resources.Vessels and a Structured Financing FacilitySubsections (2a) and (2b) do not apply to a vessel, nor to the furniture, fittings, radio communications equipment and other equipment attached to the vessel, if a structured financing facility relating to any such property has been agreed to by the Minister of Industry under the Department of Industry Act.Timber Limits and Cutting RightsFor the purposes of this Part and Schedules IV and VI, each property of a taxpayer that isa timber limit other than a timber resource property, ora right to cut timber from a limit other than a right that is a timber resource property,is hereby prescribed to be a separate class of property.Industrial Mineral MinesFor the purposes of this Part and Schedule V, where a taxpayer hasmore than one industrial mineral mine in respect of which he may claim an allowance under paragraph 1100(1)(g),more than one right to remove industrial minerals from an industrial mineral mine in respect of which he may claim an allowance under that paragraph, orboth such a mine and a right,each such industrial mineral mine and each such right to remove industrial minerals from an industrial mineral mine is hereby prescribed to be a separate class of property.Class 28 — Single Mine PropertiesIf one or more properties of a taxpayer are described in Class 28 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (which properties are referred to as “single mine properties” in this subsection), a separate class is prescribed for the single mine properties thatwere acquired for the purpose of gaining or producing income from that mine;would otherwise be included in Class 28; andare not included in a separate class by reason of subsection (4b).Class 28 — Multiple Mine PropertiesIf more than one property of a taxpayer is described in Class 28 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (which properties are referred to as “multiple mine properties” in this subsection), a separate class is prescribed for the multiple mine properties thatwere acquired for the purpose of gaining or producing income from the particular mines; andwould otherwise be included in Class 28.Class 41 — Single Mine PropertiesIf one or more properties of a taxpayer are described in paragraph (a), (a.1) or (a.2) of Class 41 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (which properties are referred to as “single mine properties” in this subsection), a separate class is prescribed for the single mine properties thatwere acquired for the purpose of gaining or producing income from that mine;would otherwise be included in Class 41; andare not included in a separate class by reason of subsection (4d).Class 41 — Multiple Mine PropertiesIf more than one property of a taxpayer is described in paragraph (a), (a.1) or (a.2) of Class 41 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (which properties are referred to as “multiple mine properties” in this subsection), a separate class is prescribed for the multiple mine properties thatwere acquired for the purpose of gaining or producing income from the particular mines; andwould otherwise be included in Class 41.Class 41.1 — Single Mine PropertiesIf one or more properties of a taxpayer are described in paragraph (a) of Class 41.1 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (which properties are referred to as “single mine properties” in this subsection), a separate class is prescribed for the single mine properties thatwere acquired for the purpose of gaining or producing income from that mine;would otherwise be included in Class 41.1, because of paragraph (a) of that class; andare not included in a separate class by reason of subsection (4f).Class 41.1 — Multiple Mine PropertiesIf more than one property of a taxpayer is described in paragraph (a) of Class 41.1 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (which properties are referred to as “multiple mine properties” in this subsection), a separate class is prescribed for the multiple mine properties thatwere acquired for the purpose of gaining or producing income from the particular mines; andwould otherwise be included in Class 41.1 because of paragraph (a) of that class.Class 41.2  —  Single Mine PropertiesIf one or more properties of a taxpayer are described in paragraph (a) of Class 41.2 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (in this subsection referred to as “single mine properties”), a separate class is prescribed for the single mine properties thatwere acquired for the purpose of gaining or producing income from that mine;would otherwise be included in Class 41.2 because of paragraph (a) of that class; andare not included in a separate class because of subsection (4h).Class 41.2  —  Multiple Mine PropertiesIf more than one property of a taxpayer is described in paragraph (a) of Class 41.2 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (in this subsection referred to as “multiple mine properties”), a separate class is prescribed for the multiple mine properties thatwere acquired for the purpose of gaining or producing income from the particular mines; andwould otherwise be included in Class 41.2 because of paragraph (a) of that class.Class 47 — Liquefaction EquipmentIf a taxpayer acquires property that is eligible liquefaction equipment to be used as part of an eligible liquefaction facility of the taxpayer, a separate class is prescribed for those properties that were acquired for the purpose of gaining or producing income from that eligible liquefaction facility.Lease Option AgreementsWhere, by virtue of an agreement, contract or arrangement entered into on or after May 31, 1954, a taxpayer is deemed by section 18 of the Income Tax Act, as enacted by the Statutes of Canada, 1958, Chapter 32, subsection 8(1), to have acquired a property, a separate class is hereby prescribed for each such property and if the taxpayer subsequently actually acquires the property it shall be included in the same class.Telecommunication SpacecraftFor the purposes of this Part, each property of a taxpayer that is an unmanned telecommunication spacecraft described in paragraph (f.2) of Class 10 or in Class 30 in Schedule II is hereby prescribed to be a separate class of property.Multiple-Unit Residential BuildingsFor the purposes of this Part, when any property of a taxpayer is a property of Class 31 or 32 in Schedule II and the capital cost of that property to the taxpayer was not less than $50,000, a separate class is hereby prescribed for each such property of the taxpayer that would otherwise be included in the same class.Eligible Non-Residential BuildingFor the purposes of this Part, a separate class is prescribed for each eligible non-residential building (other than an eligible liquefaction building) of a taxpayer in respect of which the taxpayer has (by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the building is acquired) elected that this subsection apply.Liquefaction BuildingsIf a taxpayer acquires property that is an eligible liquefaction building to be used as part of an eligible liquefaction facility of the taxpayer, a separate class is prescribed for those properties that were acquired for the purpose of gaining or producing income from that eligible liquefaction facility.Leasing PropertiesFor the purposes of this Part, except in the case of a corporation or partnership described in subsection 1100(16), where more than one property of a taxpayer is described in the same class in Schedule II and whereone of the properties is a leasing property, andone of the properties is a property other than a leasing property,a separate class is hereby prescribed for properties thatare described in paragraph (a); andwould otherwise be included in the class.Railway CarsWhere more than one property of a taxpayer is a railway car included in Class 35 in Schedule II that was rented, leased or used by the taxpayer in Canada in the taxation year, other than a railway car owned by a corporation, or a partnership any member of which is a corporation, thatwas at any time in that taxation year a common carrier that owned or operated a railway, orrented or leased the railway cars at any time in that taxation year, by one or more transactions between persons not dealing at arm’s length, to an associated corporation that was, at that time, a common carrier that owned or operated a railway,a separate class is prescribedfor all such properties acquired by the taxpayer before February 3, 1990 (other than such properties acquired for rent or lease to another person),for all such properties acquired by the taxpayer after February 2, 1990 (other than such properties acquired for rent or lease to another person),for all such properties acquired by the taxpayer before April 27, 1989 for rent or lease to another person, andfor all such properties acquired by the taxpayer after April 26, 1989 for rent or lease to another person.A separate class is hereby prescribed for all property included in Class 35 in Schedule II acquired at a time after December 6, 1991 and before February 28, 2000 by a taxpayer that was at that time a common carrier that owned and operated a railway.A separate class is hereby prescribed for all property included in Class 35 in Schedule II acquired at a time after February 27, 2000 by a taxpayer that was at that time a common carrier that owned and operated a railway.Railway Track and Related PropertyA separate class is hereby prescribed for all property included in Class 1 in Schedule II acquired by a taxpayer after March 31, 1977 and before 1988 that israilway track and grading, including components such as rails, ballast, ties and other track material;railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor; ora bridge, culvert, subway or tunnel that is ancillary to railway track and grading.A separate class is hereby prescribed for all property included in Class 1 in Schedule II acquired at a time after December 6, 1991 by a taxpayer that was at that time a common carrier that owned and operated a railway, where the property israilway track and grading, including components such as rails, ballast, ties and other track material;railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor; ora bridge, culvert, subway or tunnel that is ancillary to railway track and grading.A separate class is hereby prescribed for all trestles included in Class 3 in Schedule II acquired at a time after December 6, 1991 by a taxpayer that was at that time a common carrier that owned and operated a railway, where the trestles are ancillary to railway track and grading.A separate class is hereby prescribed for all trestles included in Class 3 in Schedule II acquired by a taxpayer after March 31, 1977 and before 1988 that are ancillary to railway track and grading.Deemed Depreciable PropertyA separate class is hereby prescribed for each property of a taxpayer described in Class 36 in Schedule II.Leasehold Interest in Real PropertiesFor the purposes of this Part, where more than one property of a taxpayer is described in the same class in Schedule II and whereone of the properties is a leasehold interest in real property described in subsection 1100(13), andone of the properties is a property other than a leasehold interest in real property described in subsection 1100(13),a separate class is hereby prescribed for properties thatare described in paragraph (a); andwould otherwise be included in the class.PipelinesA separate class is hereby prescribed for each property of a taxpayer described in Class 2 in Schedule II that isa pipeline the construction of which was commenced after 1984 and completed after September 1, 1985 and the capital cost of which to the taxpayer is not less than $10,000,000,a pipeline that has been extended or converted where the extension or conversion was completed after September 1, 1985 and the capital cost to the taxpayer of the extension or the cost to him of the conversion, as the case may be, is not less than $10,000,000, ora pipeline that has been extended and converted as part of a single program of extension and conversion of the pipeline where the program was completed after September 1, 1985 and the aggregate of the capital cost to the taxpayer of the extension and the cost to him of the conversion is not less than $10,000,000,and in respect of which the taxpayer has, by letter attached to the return of his income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the construction, extension, conversion or program, as the case may be, was completed, elected that this subsection apply.An election under subsection (5i), (5l) or (5o) shall be effective from the first day of the taxation year in respect of which the election is made and shall continue to be effective for all subsequent taxation years.Certified ProductionsA separate class is hereby prescribed for all property of a taxpayer included in Class 10 of Schedule II by reason of paragraph (w) thereof.Canadian Film or Video ProductionA separate class is hereby prescribed for all property of a corporation included in Class 10 in Schedule II because of paragraph (x) of that Class that is propertyin respect of which the corporation is deemed under subsection 125.4(3) of the Act to have paid an amount on account of its tax payable under Part I of the Act for a taxation year; oracquired by the corporation from another corporation wherethe other corporation is deemed under subsection 125.4(3) of the Act to have paid an amount on account of its tax payable under Part I of the Act for a taxation year in respect of the property, andthe corporations were related to each other throughout the period that began when the other corporation first incurred a qualified labour expenditure (as defined in subsection 125.4(1) of the Act) in respect of the property and ended when the other corporation disposed of the property to the corporation.Class 38 — Property and Outdoor Advertising SignsA separate class is hereby prescribed for each property of a taxpayer described in Class 38 in Schedule II or in paragraph (1) of Class 8 in Schedule II in respect of which the taxpayer has, by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected that this subsection apply.Specified Energy PropertyWhere, for any taxation year, a property of a taxpayer or partnership is a specified energy property, a separate class is prescribed in respect of that property for that and subsequent taxation years.Notwithstanding subsection (5c), where at the end of any taxation year a property of a taxpayer is specified leasing property, a separate class is prescribed in respect of that property (including any additions or alterations to that property included in the same class in Schedule II) for that year and all subsequent taxation years.A separate class is prescribed for one or more properties of a class in Schedule II that are exempt properties, as defined in paragraph 1100(1.13)(a), of a taxpayer referred to in subsection 1100(16) in respect of which the taxpayer has, by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property or properties were acquired, elected that this subsection apply.Rapidly Depreciating Electronic EquipmentSubject to subsection (5q), a separate class is prescribed for one or more properties of a taxpayer acquired in a taxation year and included in the year in Class 8 in Schedule II, where each of the properties has a capital cost to the taxpayer of at least $1,000 and iscomputer software;a photocopier; oroffice equipment that is electronic communications equipment, such as a facsimile transmission device or telephone equipment.Each of subsections (5p) and (5s) apply to a property or properties of a taxpayer only if the taxpayer has (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property or properties were acquired) elected that the subsection apply to the property or properties, as the case may be.Computer Tax Shelter PropertyFor the purpose of this Part, wheremore than one property of a taxpayer is described in the same class in Schedule II,one of the properties is a computer tax shelter property, andone of the properties is not a computer tax shelter property,for properties that are described in paragraph (b) and that would otherwise be included in the class, a separate class is prescribed.Manufacturing or Processing PropertySubject to subsection (5q), a separate class is prescribed for one or more properties of a taxpayerthat were acquired in a taxation year and included in the year in Class 43 in Schedule II because of paragraph (a) of that Class; andthat had a capital cost to the taxpayer of at least $1,000.[Repealed, SOR/2006-117, s. 2]Equipment Related to Transmission PipelinesA separate class is prescribed for one or more properties of a taxpayer that is property included in Class 7 in Schedule II because of paragraph (j) or (k) of that Class if the taxpayer has (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property or properties were acquired) elected that this subsection apply to the property or properties.Transmission PipelinesA separate class is prescribed for one or more properties of a taxpayer that is property included in Class 49 in Schedule II if the taxpayer has (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property or properties were acquired) elected that this subsection apply to the property or properties.ReferenceA reference in this Part to a class in Schedule II includes a reference to the corresponding separate classes prescribed by this section.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 2; SOR/79-426, s. 2; SOR/79-670, s. 1; SOR/80-618, s. 1; SOR/81-244, s. 1; SOR/82-265, s. 2; SOR/84-454, s. 2; SOR/84-948, s. 6; SOR/86-156, s. 1; SOR/88-392, s. 2; SOR/89-27, s. 2; SOR/90-22, s. 2; SOR/90-257, s. 2; SOR/91-196, s. 2; SOR/91-673, s. 2; SOR/94-140, s. 3; SOR/94-170, s. 2; SOR/94-686, ss. 58(F), 78(F), 79(F); SOR/98-97, s. 1; SOR/2000-248, s. 3; SOR/2005-126, s. 2; SOR/2005-371, s. 2; SOR/2005-414, s. 2; SOR/2006-117, s. 2; SOR/2009-115, ss. 2, 13; SOR/2009-126, s. 2; SOR/2010-93, s. 13(F); SOR/2011-9, s. 2; 2013, c. 34, s. 384, c. 40, 101; SOR/2015-117, s. 2
Property RulesProperty not Included
The classes of property described in this Part and in Schedule II shall be deemed not to include propertythe cost of which would be deductible in computing the taxpayer’s income if the Act were read without reference to sections 66 to 66.4 of the Act;the cost of which is included in the taxpayer’s Canadian renewable and conservation expense (within the meaning assigned by section 1219);that is described in the taxpayer’s inventory;that was not acquired by the taxpayer for the purpose of gaining or producing income;that was acquired by an expenditure in respect of which the taxpayer is allowed a deduction in computing income under section 37 of the Act;that was acquired by the taxpayer after November 12, 1981, other than property acquired from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired if the property was acquired in the circumstances where subsection (14) applies, and isa print, etching, drawing, painting, sculpture, or other similar work of art, the cost of which to the taxpayer was not less than $200,a hand-woven tapestry or carpet or a handmade appliqué, the cost of which to the taxpayer was not less than $215 per square metre,an engraving, etching, lithograph, woodcut, map or chart, made before 1900, orantique furniture, or any other antique object, produced more than 100 years before the date it was acquired, the cost of which to the taxpayer was not less than $1,000,other than any property described in subparagraph (i) or (ii) where the individual who created the property was a Canadian (within the meaning assigned by paragraph 1104(10)(a)) at the time the property was created;that is property referred to in paragraph 18(1)(l) of the Act acquired after December 31, 1974, an outlay or expense for the use or maintenance of which is not deductible by virtue of that paragraph;in respect of which an allowance is claimed and permitted under Part XVII;that is a passenger automobile acquired after June 13, 1963 and before January 1, 1966, the cost to the taxpayer of which, minus the initial transportation charges and retail sales tax in respect thereof, exceeded $5,000, unless the automobile was acquired by a person before June 14, 1963 and has by one or more transactions between persons not dealing at arm’s length become vested in the taxpayer;that was deemed by section 18 of the Income Tax Act, as enacted by the Statutes of Canada, 1958, Chapter 32, subsection 8(1), to have been acquired by the taxpayer and that did not vest in the taxpayer before the 1963 taxation year;of a life insurer, that is property used by it in, or held by it in the course of, carrying on an insurance business outside Canada; orthat is linefill in a pipeline.Partnership Property[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 78(F)Where the taxpayer is a member of a partnership, the classes of property described in this Part and in Schedule II shall be deemed not to include any property that is an interest of the taxpayer in depreciable property that is partnership property of the partnership.LandThe classes of property described in Schedule II shall be deemed not to include the land upon which a property described therein was constructed or is situated.Non-ResidentsWhere the taxpayer is a non-resident person, the classes of property described in this Part and in Schedule II shall, except for the purpose of determining the foreign accrual property income of the taxpayer for the purposes of subdivision i of Division B of Part I of the Act, be deemed not to include property that is situated outside Canada.Improvements or Alterations to Leased PropertiesSubject to subsection (5), capital cost for the purposes of paragraph 1100(1)(b) includes any amount expended by a taxpayer for or in respect of an improvement or alteration to a leased property.Buildings on Leased PropertiesWhere the taxpayer has a leasehold interest in a property, a reference in Schedule II to a property that is a building or other structure shall include a reference to that leasehold interest to the extent that that interestwas acquired by reason of the fact that the taxpayererected a building or structure on leased land,made an addition to a leased building or structure, ormade alterations to a leased building or structure that substantially changed the nature of the property; orwas acquired after 1975 or, in the case of any property of Class 31 or 32, after November 18, 1974, from a former lessee who had acquired it by reason of the fact that he or a lessee before himerected a building or structure on leased land,made an addition to a leased building or structure, ormade alterations to a leased building or structure that substantially changed the nature of the property.Where a taxpayer has acquired a property that would, if the property had been acquired by a person with whom the taxpayer was not dealing at arm’s length at the time the property was acquired by the taxpayer, be described in paragraph (5)(a) or (b) in respect of that person, a reference in Schedule II to a property that is a building or other structure shall, in respect of the taxpayer, include a reference to that property.Leasehold Interests Acquired Before 1949For the purposes of paragraphs 2(a) and (b) of Schedule III, where an item of capital cost has been incurred before the commencement of the taxpayer’s 1949 taxation year, there shall be added to the capital cost of each item the amount that has been allowed in respect thereof as depreciation under the Income War Tax Act and has been deducted from the original cost to arrive at the capital cost of the item.River ImprovementsFor the purposes of paragraph 1100(1)(f), capital cost includes an amount expended on river improvements by the taxpayer for the purpose of facilitating the removal of timber from a timber limit.Electrical Plant Used for MiningWhere the generating or distributing equipment and plant (including structures) of a producer or distributor of electrical energy were acquired for the purpose of providing power to a consumer for use by the consumer in the operation in Canada of a mine, ore mill, smelter, metal refinery or any combination thereof and at least 80 per cent of the producer’s or distributor’s output of electrical energyfor his 1948 and 1949 taxation years, orfor his first two taxation years in which he sold power,whichever period is later, was sold to the consumer for that purpose, the property shall be included inClass 10 in Schedule II if it is property acquiredbefore 1988, orbefore 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,that was under construction by or on behalf of the taxpayer on June 18, 1987, orthat is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987, orClass 41, 41.1 or 41.2 in Schedule II in any other case, unless the property would otherwise be included in Class 43.1 or 43.2 in Schedule II and the taxpayer has, by a letter filed with the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be.Where a taxpayer has acquired generating or distributing equipment and plant (including structures) for the purpose of providing power for his own consumption in operating a mine, ore mill, smelter, metal refinery or any combination thereof and at least 80 per cent of the output of electrical energy was so usedin his 1948 and 1949 taxation years, orin the first two taxation years in which he so produced power,whichever period is the later, the property shall be included inClass 10 in Schedule II if it is property acquiredbefore 1988, orbefore 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,that was under construction by or on behalf of the taxpayer on June 18, 1987, orthat is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987, orClass 41, 41.1 or 41.2 in Schedule II in any other case, unless the property would otherwise be included in Class 43.1 or 43.2 in Schedule II and the taxpayer has, by a letter filed with the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be.In their application to generating or distributing equipment and plant (including structures) that were acquired by the taxpayer before November 8, 1969, subsections (8) and (9) shall be read without reference to a “metal refinery”.Where a taxpayer acquires property after November 7, 1969 from a person with whom he was not dealing at arm’s length that is property referred to in subsection (8) or (9), notwithstanding those subsections, that property shall not be included in Class 10 in Schedule II by the taxpayer unless the property had been included in that class by the person from whom it was acquired, by virtue of subsection (8) or (9) as it read in its application before November 8, 1969.[Repealed, 2013, c. 40, s. 102]Passenger AutomobilesIn paragraph (1)(h),cost to the taxpayer of an automobile means, except as provided in subsections (12) and (13),except in any case coming under paragraph (b) or (c), the capital cost to the taxpayer of the automobile,except in any case coming under paragraph (c), where the automobile was acquired by a person (in this section referred to as the “original owner”) after June 13, 1963, and has, by one or more transactions between persons not dealing at arm’s length, become vested in the taxpayer, the greater ofthe actual cost to the taxpayer, andthe actual cost to the original owner, andwhere the automobile was acquired by the taxpayer outside Canada for use in connection with a permanent establishment, as defined for the purposes of Part IV or Part XXVI, outside Canada, the lesser ofthe actual cost to the taxpayer, andthe amount that such an automobile would ordinarily cost the taxpayer if he purchased it from a dealer in automobiles in Canada for use in Canada; (coût pour le contribuable)initial transportation charges in respect of an automobile means the costs incurred by a dealer in automobiles for transporting the automobile (before it had been used for any purpose whatever) from,in the case of an automobile manufactured in Canada, the manufacturer’s plant, andin any other case, the place in Canada, if any, at which the automobile was received or stored by a wholesale distributor,to the dealer’s place of business; (frais de transport initiaux)passenger automobile means a vehicle, other than an ambulance or hearse, that was designed to carry not more than nine persons, and that isan automobile designed primarily for carrying persons on highways and streets, except an automobile thatis designed to accommodate and is equipped with auxiliary folding seats installed between the front and the rear seats,was acquired by a person carrying on the business of operating a taxi or automobile rental service, or arranging and managing funerals, for use in such business, andis not a vehicle described in paragraph (b), ora station wagon or substantially similar vehicle; (automobile à voyageurs)retail sales tax in respect of an automobile means the aggregate of municipal and provincial retail sales taxes payable in respect of the purchase of the automobile by the taxpayer. (taxe de vente ou détail)For the purposes of paragraph (1)(h), where an automobile is owned by two or more persons or by partners, a reference to “cost to the taxpayer” shall be deemed to be a reference to the aggregate of the cost, as defined in subsection (11), to each such person or partner.In determining the cost to the taxpayer for the purposes of paragraph (1)(h), subsection 13(7) of the Act shall not apply unless the automobile was acquired by gift.Property Acquired by Transfer, Amalgamation or Winding-UpSubject to subsections (14.11) to (14.13), for the purposes of this Part and Schedule II, if a property is acquired by a taxpayerin the course of a reorganization in respect of which, if a dividend were received by a corporation in the course of the reorganization, subsection 55(2) of the Act would not be applicable to the dividend by reason of the application of paragraph 55(3)(b) of the Act, or[Repealed, SOR/90-22, s. 3]from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired, and[Repealed, SOR/90-22, s. 3]the property, immediately before it was so acquired by the taxpayer, was property of a prescribed class or a separate prescribed class of the person from whom it was so acquired, the property shall be deemed to be property of that same prescribed class or separate prescribed class, as the case may be, of the taxpayer.For the purposes of this Part and Schedule II, if a taxpayer has acquired, after May 25, 1976, property of a class in Schedule II (in this subsection referred to as the “present class”), that had been previously owned before May 26, 1976 by the taxpayer or by a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired, and at the time the property was previously so owned it was a property of a different class (other than Class 28 or 41) in Schedule II (in this subsection referred to as the “former class”), the property is deemed to be property of the former class and not to be property of the present class.If, after March 18, 2007, a taxpayer acquires an oil sands property in circumstances to which subsection (14) applies and the property was depreciable property that was included in Class 41, because of paragraph (a), (a.1) or (a.2) of that Class, by the person or partnership from whom the taxpayer acquired the property, the following rules apply:there may be included in Class 41 of the taxpayer only that portion of the property the capital cost of which portion to the taxpayer is the lesser of the undepreciated capital cost of Class 41 of that person or partnership immediately before the disposition of the property by the person or partnership and the amount, if any, by which that undepreciated capital cost is reduced as a result of that disposition; andthere shall be included in Class 41.1 of the taxpayer that portion, if any, of the property that is not the portion included in Class 41 of the taxpayer under paragraph (a).If, after March 20, 2013, a taxpayer acquires a property (other than an oil sands property) in circumstances to which subsection (14) applies and the property was depreciable property that was included in Class 41, because of paragraph (a) or (a.1) of that Class, by the person or partnership from whom the taxpayer acquired the property, the following rules apply:there may be included in Class 41 of the taxpayer only that portion of the property the capital cost of which portion to the taxpayer is the lesser of the undepreciated capital cost of Class 41 of that person or partnership immediately before the disposition of the property by the person or partnership and the amount, if any, by which that undepreciated capital cost is reduced as a result of that disposition; andthere shall be included in Class 41.2 of the taxpayer that portion, if any, of the property that is not the portion included in Class 41 of the taxpayer under paragraph (a).Subsection (14) does not apply to an acquisition of property by a taxpayer from a person in respect of which the property was included in any of Classes 54 to 56.Townsite CostsFor the purpose of paragraph 13(7.5)(a) of the Act, a property is prescribed in respect of a taxpayer where the property would, if it had been acquired by the taxpayer, be property included in Class 10 in Schedule II because of paragraph (l) of that Class.Surface Construction and BridgesFor the purpose of paragraph 13(7.5)(b) of the Act, prescribed property is any ofa road (other than a specified temporary access road), sidewalk, airplane runway, parking area, storage area or similar surface construction;a bridge; anda property that is ancillary to any property described in paragraph (a) or (b).Manufacturing and Processing EnterprisesFor the purposes of subsection 13(10) of the Act,property is hereby prescribed that isa building included in Class 3 or 6 in Schedule II, ormachinery or equipment included in Class 8 in Schedule II,exceptproperty that may reasonably be regarded as having been acquired for the purpose of producing coal from a coal mine or oil, gas, metals or industrial minerals from a resource referred to in section 1201 as it read immediately before it was repealed by section 2 of Order in Council P.C. 1975-1323 of June 12, 1975, orproperty acquired for use outside Canada; anda business carried on by the taxpayer is hereby prescribed as a manufacturing or processing business if,for the fiscal period in which the property was acquired, orfor the fiscal period in which a reasonable volume of business was first carried on,whichever was later, the revenue received by the taxpayer, in the course of carrying on the business fromthe sale of goods processed or manufactured by the taxpayer in Canada,the leasing or renting of goods that were processed or manufactured by the taxpayer in Canada,advertisements in a newspaper or magazine that was produced by the taxpayer in Canada, andconstruction carried on by the taxpayer in Canada,was not less than 2/3 of the revenue of the business for the period.For the purposes of paragraph (15)(b), revenue means gross revenue minus the aggregate ofamounts that were paid or credited in the period, to customers of the business, in relation to such revenue as a bonus, rebate or discount or for returned or damaged goods; andamounts included therein by virtue of section 13 or subsection 23(1) of the Act.Election for Certain Manufacturing or Processing EquipmentsA taxpayer who acquires a property after March 18, 2007 and before 2016 that is manufacturing or processing machinery or equipment may (by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property is acquired) elect to include the property in Class 29 in Schedule II ifClass 43.1 or 43.2 in Schedule II would otherwise apply to the property; andClass 29 in Schedule II would apply to the property if that schedule were read without reference to Classes 43.1 and 43.2.Recreational PropertyProperty referred to in paragraph (1)(f) does not includeany property that the taxpayer was obligated to acquire under the terms of an agreement in writing entered into before November 13, 1974; orany property the construction of which wascommenced by the taxpayer before November 13, 1974 or commenced under an agreement in writing entered into by the taxpayer before November 13, 1974, andcompleted substantially according to plans and specifications agreed to by the taxpayer before November 13, 1974.[Repealed, SOR/99-179, s. 2]Additions and AlterationsFor the purposes of this Part and Schedule II, wherea taxpayer acquired a property that is included in a class in Schedule II (in this subsection referred to as the “actual class”),the taxpayer acquires property that is an addition or alteration to the property referred to in paragraph (a),the property that is the addition or alteration referred to in paragraph (b) would have been property of the actual class if it had been acquired by the taxpayer at the time he acquired the property referred to in paragraph (a), andthe property referred to in paragraph (a) would have been property of a class in Schedule II (in this subsection referred to as the “present class”) that is different from the actual class if it had been acquired by the taxpayer at the time he acquired the addition or alteration referred to in paragraph (b),the addition or alteration referred to in paragraph (b) shall, except as otherwise provided in this Part or in Schedule II, be deemed to be an acquisition by the taxpayer of property of the present class.For the purposes of this Part and Schedule II, if subsection (19.2) applies to the refurbishment or reconditioning of a railway locomotive of a taxpayer, any property acquired by the taxpayer after February 25, 2008 that is incorporated into the locomotive in the course of the refurbishment or reconditioning is, except as otherwise provided in this Part or in Schedule II, deemed to be included in paragraph (y) of Class 10 in Schedule II.This subsection applies to the refurbishment or reconditioning of a railway locomotive, of a taxpayer, thatis included in a class in Schedule II other than Class 10; andwould be included in Class 10 in Schedule II if it had not been used or acquired for use for any purpose by any taxpayer before February 26, 2008.Non-arm’s Length ExceptionFor the purposes of subsections 1100(2.2) and (19), 1101(lad) and 1102(14) (in this subsection referred to as the “relevant subsections”), where, but for this subsection, a taxpayer would be considered to be dealing not at arm’s length with another person as a result of a transaction or series of transactions the principal purpose of which may reasonably be considered to have been to cause one or more of the relevant subsections to apply in respect of the acquisition of a property, the taxpayer shall be considered to be dealing at arm’s length with the other person in respect of the acquisition of that property.For the purposes of subsections 1100(0.3) and (2.02) and 1104(3.1) and (4), a particular person or partnership and another person or partnership shall be considered not to be dealing at arm’s length with each other in respect of the acquisition or ownership of a property if, in the absence of this subsection, they would be considered to be dealing at arm’s length with each other and it may reasonably be considered that the principal purpose of any transaction or event, or a series of transactions or events, is to causethe property to qualify as accelerated investment incentive property or immediate expensing property; orthe particular person or partnership and the other person or partnership to satisfy the condition in subclause 1100(2.02)(a)(i)(C)(I) or subparagraph 1100(0.3)(c)(i).Where a taxpayer has acquired a property described in Class 43.1 of Schedule II in circumstances in which clauses (b)(iii)(A) and (B) or (e)(iii)(A) and (B) of that class apply,the portion of the property, determined by reference to capital cost, that is equal to or less than the capital cost of the property to the person from whom the property was acquired, is included in that class; andthe portion of the property, if any, determined by reference to capital cost, that is in excess of the capital cost of the property to the person from whom it was acquired, shall not be included in that class.Where a taxpayer has acquired a property that is described in Class 43.2 in Schedule II in circumstances in which clauses (b)(iii)(A) and (B) or (e)(iii)(A) and (B) of Class 43.1 in Schedule II apply and the property was included in Class 43.2 in Schedule II of the person from whom the taxpayer acquired the property,the portion of the property, determined by reference to capital cost, that is equal to or less than the capital cost of the property to the person from whom the property was acquired is included in Class 43.2 in Schedule II; andthe portion of the property, if any, determined by reference to capital cost, that is in excess of the capital cost of the property to the person from whom it was acquired shall not be included in Class 43.1 or 43.2 in Schedule II.Rules for Additions to and Alterations of Certain BuildingsFor the purposes of applying paragraphs 1100(1)(a.1) and (a.2) and subsection 1101(5b.1), the capital cost of an addition to or an alteration of a taxpayer’s building is deemed to be the capital cost to the taxpayer of a separate building if the building to which the addition or alteration was made is not included in a separate class under subsection 1101(5b.1).If an addition or an alteration is deemed to be a separate building under subsection (23), the references in paragraphs 1100(1) (a.1) and (a.2) to “the floor space of the building” are to be read as references to “the total floor space of the separate building and the building to which the addition or alteration was made”.Acquisition Costs of Certain BuildingsFor the purposes of this Part and Schedule II, if an eligible non-residential building of a taxpayer was under construction on March 19, 2007, the portion, if any, of the capital cost of the building that was incurred by the taxpayer before March 19, 2007 is deemed to have been incurred by the taxpayer on March 19, 2007 unless the taxpayer elects (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the building was acquired) that this subsection not apply to that cost.For the purpose of the definition zero-emission vehicle in subsection 248(1) of the Act,it is a prescribed condition that the motor vehicle has a battery capacity of at least 7 kWh; andthe federal purchase incentive announced on March 19, 2019 is a prescribed program.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 8; SOR/78-502, s. 1; SOR/78-949, s. 1; SOR/79-670, s. 2; SOR/83-340, s. 2; SOR/84-948, s. 7; SOR/86-1092, s. 5(F); SOR/88-392, s. 3; SOR/90-22, s. 3; SOR/94-140, s. 4; SOR/94-686, ss. 10(F), 49(F), 58(F), 66(F), 78(F), 79(F), 81(F); SOR/97-377, s. 2; SOR/99-179, s. 2; SOR/2000-327, s. 1; SOR/2006-117, s. 3; SOR/2009-115, ss. 3, 13; SOR/2009-126, s. 3; SOR/2011-9, s. 3; SOR/2011-195, s. 5(F); 2013, c. 33, s. 35, c. 40, 1022019, c. 29, s. 532021, c. 23, s. 852022, c. 10, s. 35
Inclusions In and Transfers Between ClassesElections To Include Properties in Class 1
In respect of properties otherwise included in any of Classes 2 to 10, 11 and 12 in Schedule II, a taxpayer may elect to include in Class 1 in Schedule II all such properties acquired for the purpose of gaining or producing income from the same business.Elections to Include Properties in Class 2, 4 or 17Where the chief depreciable properties of a taxpayer are included in Class 2, 4 or 17 in Schedule II, the taxpayer may elect to include in Class 2, 4 or 17 in Schedule II, as the case may be, a property that would otherwise be included in another class in Schedule II and that was acquired by him before May 26, 1976 for the purpose of gaining or producing income from the same business as that for which those properties otherwise included in the said Class 2, 4 or 17 were acquired.Elections to Include Properties in Class 8In respect of properties otherwise included in Class 19 or 21 in Schedule II, a taxpayer may, by letter attached to the return of his income for a taxation year filed with the Minister in accordance with section 150 of the Act, elect to include in Class 8 in Schedule II all properties of the said Class 19 or all properties of the said Class 21, as the case may be, owned by him at the commencement of the year.Elections to Include Properties in Class 37In respect of properties that would have been included in Class 37 in Schedule II had they been acquired after the date on which Class 37 became effective, a taxpayer may, by letter attached to the return of his income for a taxation year filed with the Minister in accordance with section 150 of the Act, elect to include in Class 37 all such properties acquired by the taxpayer before that date.Elections to Make Certain TransfersWhere a taxpayer has acquired, after May 25, 1976, all or any part of a property of a class in Schedule II (in this subsection referred to as “present class”) and the property or part thereof, if it had been acquired before May 26, 1976, would have been property of a different class in Schedule II (in this subsection referred to as the “former class”) andhe was obligated to acquire the property under the terms of an agreement in writing entered into before May 26, 1976,he commenced the construction, manufacture or production of the property before May 26, 1976 or the construction, manufacture or production of the property was commenced under an agreement in writing entered into by him before May 26, 1976, orhe acquired the property on or before December 31, 1976 or he was obligated to acquire the property under the terms of an agreement in writing entered into on or before December 31, 1976, ifarrangements, evidenced by writing, respecting the acquisition, construction, manufacture or production of the property had been substantially advanced before May 26, 1976, andhe had, before May 26, 1976, demonstrated a bona fide intention to acquire the property,the taxpayer may, by letter attached to the return of his income filed with the Minister in accordance with section 150 of the Act, for the taxation year in which the property was acquired or for the immediately following taxation year, elect to transfer in the year of acquisitionthe property or the part thereof, acquired after May 25, 1976, from the present class to the former class; orthe part of the property acquired before May 26, 1976, from the former class to the present class.Where a taxpayer hasdisposed of a property (in this subsection referred to as the “former property”) of a class in Schedule II (in this subsection referred to as the “former class”), andbefore the end of the taxation year in which the former property was disposed of, acquired property (in this subsection referred to as the “new property”) of a class in Schedule II (in this subsection referred to as the “present class”) and the present class is neitherthe former class, nora separate class described in section 1101, other than subsection 1101(5d),such thatif the former property had been acquired at the time that the new property was acquired and from the person from whom the new property was acquired, the former property would have been included in the present class, andif the new property had been acquired at the time that the former property was acquired and from the person from whom the former property was acquired, the new property would have been included in the former class,the taxpayer may, by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act in respect of the taxation year in which the former property was disposed of, elect to transfer the former property from the former class to the present class in the year of its disposition and, for greater certainty, the transfer shall be considered to have been made before the disposition of the property.Transfers from Class 40 to Class 10For the purposes of this Part and Schedule II, where property of a taxpayer would otherwise be included in Class 40 in Schedule II, all such properties owned by the taxpayer shall be transferred from Class 40 to Class 10 immediately after the commencement of the first taxation year of the taxpayer commencing after 1989.Elections to Include Properties in Class 1, 3 or 6In respect of properties otherwise included in Class 20 in Schedule II, a taxpayer may, by letter attached to the return of income of the taxpayer for a taxation year filed with the Minister in accordance with section 150 of the Act, elect to include in Class 1, 3 or 6 in Schedule II, as specified in the letter, all properties of Class 20 in Schedule II owned by the taxpayer at the commencement of the year.Transfers to Class 8, Class 10 or Class 43[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-371, s. 3For the purposes of this Part and Schedule II, where one or more properties of a taxpayer are included in a separate class pursuant to an election filed by the taxpayer in accordance with subsection 1101(5q), all the properties in that class immediately after the beginning of the taxpayer’s fifth taxation year beginning after the end of the first taxation year in which a property of the class became available for use by the taxpayer for the purposes of subsection 13(26) of the Act shall be transferred immediately after the beginning of that fifth taxation year from the separate class to the class in which the property would, but for the election, have been included.Elections Not to Include Properties in Class 44A taxpayer may, by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which a property was acquired, elect not to include the property in Class 44 in Schedule II.Election to Include Properties in Class 35In respect of any property otherwise included in Class 7 in Schedule II because of paragraph (h) of that Class and to which paragraph 1100(1)(z.1a) and subsection 1101(5d), or paragraph 1100(1)(z.1c) and subsection 1101(5d.2), would apply if Class 35 of that Schedule applied to the property, the taxpayer may (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired) elect to include the property in Class 35 rather than in Class 7.A taxpayer may, in its return of income filed with the Minister on or before its filing-due date for the taxation year in which a property is acquired, elect not to include the property in any of Classes 54 to 56 in Schedule II, as the case may be.Election RulesTo be effective in respect of a taxation year, an election under this section must be made not later than the last day on which the taxpayer may file a return of his income for the taxation year in accordance with section 150 of the Act.An election under paragraph 1102(8)(d) or (9)(d) or this section shall be effective from the first day of the taxation year in respect of which the election is made and shall continue to be effective for all subsequent taxation years.An election under subsection (1) or (2) shall be made by sending a letter to that effect by registered mail to the Tax Centre at which the taxpayer customarily files the returns required by section 150 of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 9; SOR/82-265, s. 3; SOR/83-340, s. 3; SOR/90-22, s. 4; SOR/91-196, s. 3; SOR/91-673, s. 3; SOR/94-170, s. 3; SOR/97-377, s. 3; SOR/2005-371, s. 3; SOR/2007-116, s. 22019, c. 29, s. 542021, c. 23, s. 86
InterpretationDefinitions
Where the taxpayer is an individual and his income for the taxation year includes income from a business the fiscal period of which does not coincide with the calendar year, in respect of the depreciable properties acquired for the purpose of gaining or producing income from the business, a reference in this Part toend of the taxation year shall be deemed to be a reference to the end of the fiscal period of the business; (la fin de l’année d’imposition)taxation year shall be deemed to be a reference to the fiscal period of the business. (l’année d’imposition)In this Part and in Schedule II,bitumen development phase of a taxpayer’s oil sands project means a development phase that expands the oil sands project’s capacity to extract and initially process tar sands to produce bitumen or a similar product; (phase de mise en valeur du bitume)certified feature film means a motion picture film certified by the Minister of Communications to be a film of not less than 75 minutes running time in respect of which all photography or art work specifically required for the production thereof and all film editing therefor were commenced after November 18, 1974, and either the film was completed before May 26, 1976, or the photography or art work was commenced before May 26, 1976, and certified by him to bea film the production of which is contemplated in a coproduction agreement entered into between Canada and another country, ora film in respect of whichthe person who performed the duties of producer was a Canadian,no fewer than 2/3 in number of all the persons each of whomwas a person who performed the duties of director, screenwriter, music composer, art director, picture editor or director of photography, orwas the individual in respect of whose services as an actor or actress in respect of the film the highest remuneration or the second highest remuneration was paid or payable,were Canadians,not less than 75 per cent of the aggregate of the remuneration paid or payable to persons for services provided in respect of the film (other than remuneration paid or payable to or in respect of the persons referred to in subparagraphs (i) and (ii) or remuneration paid or payable for processing and final preparation of the film) was paid or payable to Canadians,not less than 75 per cent of the aggregate of costs incurred for processing and final preparation of the film including laboratory work, sound recording, sound editing and picture editing (other than remuneration paid or payable to or in respect of persons referred to in subparagraphs (i), (ii) and (iii)), was incurred in respect of services rendered in Canada, andthe copyright protecting its use in Canada is beneficially ownedby a person who is either a Canadian or a corporation incorporated under the laws of Canada or a province, orjointly or otherwise by two or more persons described in clause (A),other than a filmacquired after the day that is the earlier ofthe day of its first commercial use, and12 months after the day the principal photography thereof is completed, orin respect of which certification under this definition has been revoked by the Minister of Communications as provided in paragraph (10)(b); (long métrage portant visa)certified production, in respect of a particular taxation year, means a motion picture film or video tape certified by the Minister of Communications to be a film or tape in respect of which all photography, taping or art work required specifically for the production thereof and all film or tape editing therefor were commenced after May 25, 1976, certified by him to be a film or tape in respect of which the principal photography or taping thereof was commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year and certified by him to bea film or tape the production of which is contemplated in a coproduction agreement entered into between Canada and another country, ora film or tape in respect of whichthe individual who performed the duties of producer was a Canadian,the Minister of Communications has allotted not less than an aggregate of six units of production, not less than two of which were allotted by virtue of clause (A) or (B) and not less than one of which was allotted by virtue of clause (C) or (D), for individuals who provided services in respect of the film or tape, in the following manner:for the director, two units of production,for the screenwriter, two units of production,for the actor or actress in respect of whose services for the film or tape the highest remuneration was paid or payable (unless in the opinion of the Minister of Communications the individual did not perform a major role in the film or tape), one unit of production,for the actor or actress in respect of whose services for the film or tape the second highest remuneration was paid or payable (unless in the opinion of the Minister of Communications the individual did not perform a major role in the film or tape), one unit of production,for the art director, one unit of production,for the director of photography, one unit of production,for the music composer, one unit of production, andfor the picture editor, one unit of production,shall be allotted, provided the individual in respect of such allotment was a Canadian,not less than 75 per cent of the aggregate of all costs (other than costs determined by reference to the amount of income from the film or tape) paid or payable to persons for services provided in respect of producing the film or tape (other than remuneration paid or payable to, or in respect of, individuals referred to in subparagraph (i) or (ii), costs referred to in subparagraph (iv) incurred for processing and final preparation of the film or tape, and amounts paid or payable in respect of insurance, financing, brokerage, legal and accounting fees and similar amounts) was paid or payable to, or in respect of services provided by, Canadians, andnot less than 75 per cent of the aggregate of all costs (other than costs determined by reference to the amount of income from the film or tape) incurred for processing and final preparation of the film or tape, including laboratory work, sound re-recording, sound editing and picture editing (other than remuneration paid or payable to, or in respect of, individuals referred to in subparagraph (i) or (ii)) was incurred in respect of services provided in Canada,other than a film or tapeacquired after the day that is the earlier ofthe day of its first commercial use, and12 months after the day the principal photography or taping thereof is completed,acquired by a taxpayer who has not paid in cash, as of the end of the particular taxation year, to the person from whom he acquired the film or tape, at least 5 per cent of the capital cost to the taxpayer of the film or tape as of the end of the year,acquired by a taxpayer who has issued in payment or part payment thereof, a bond, debenture, bill, note, mortgage or similar obligation in respect of which an amount is not due until a time that is more than four years after the end of the taxation year in which the taxpayer acquired the film or tape,acquired from a non-resident, orin respect of which certification under this definition has been revoked by the Minister of Communications as provided in paragraph (10)(b),and, for the purposes of the application of this definition,in respect of a film or tape acquired in 1987, other than a film or tape in respect of which paragraph (i) applies, the reference in this definition to “commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year” shall be read as a reference to “commenced before the end of 1987 or was completed before July, 1988”; andin respect of a film or tape acquired in 1987 or 1988 that is included in paragraph (n) of Class 12 in Schedule II and that is part of a series of films or tapes that includes another property included in that paragraph, the reference in this definition to “commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year” shall be read as a reference to “completed before 1989”; (production portant visa)certified short production[Repealed, SOR/86-254, s. 2]completion of a specified development phase of a taxpayer’s oil sands project means the first attainment of a level of average output, attributable to the specified development phase and measured over a sixty day period, equal to at least 60% of the planned level of average daily output (as determined in paragraph (b) of the definition specified development phase) in respect of that phase; (achèvement)computer software includes systems software and a right or licence to use computer software; (logiciel)data network infrastructure equipment means network infrastructure equipment that controls, transfers, modulates or directs data, and that operates in support of telecommunications applications such as e-mail, instant messaging, audio- and video-over-Internet Protocol or Web browsing, Web searching and Web hosting, including data switches, multiplexers, routers, remote access servers, hubs, domain name servers, and modems, but does not includenetwork equipment (other than radio network equipment) that operates in support of telecommunications applications, if the bandwidth made available by that equipment to a single end-user of the network is 64 kilobits per second or less in either direction,radio network equipment that operates in support of wireless telecommunications applications unless the equipment supports digital transmission on a radio channel,network equipment that operates in support of broadcast telecommunications applications and that is unidirectional,network equipment that is end-user equipment, including telephone sets, personal digital assistants and facsimile transmission devices,equipment that is described in paragraph (f.2) or (v) of Class 10, or in any of Classes 45, 50 and 52, in Schedule II,wires or cables, or similar property, andstructures; (matériel d’infrastructure pour réseaux de données)designated asset in respect of a development phase of a taxpayer’s oil sands project, means a property that is a building, a structure, machinery or equipment and is, or is an integral and substantial part of,in the case of a bitumen development phase,a crusher,a froth treatment plant,a primary separation unit,a steam generation plant,a cogeneration plant, ora water treatment plant, orin the case of an upgrading development phase,a gasifier unit,a vacuum distillation unit,a hydrocracker unit,a hydrotreater unit,a hydroprocessor unit, ora coker; (bien désigné)designated overburden removal cost of a taxpayer means any cost incurred by him in respect of clearing or removing overburden from a mine in Canada owned or operated by him where the costwas incurred after November 16, 1978 and before 1988,was incurred after the mine came into production in reasonable commercial quantities,as of the end of the taxation year in which the cost was incurred, has not been deducted by the taxpayer in computing his income, andis not deductible, in whole or in part, by the taxpayer in computing his income for a taxation year subsequent to the taxation year in which the cost was incurred, other than by virtue of paragraph 20(1)(a) of the Act; (coût désigné d’enlèvement des terrains de couverture)designated underground storage cost of a taxpayer means any cost incurred by him after December 11, 1979 in respect of developing a well, mine or other similar underground property for the storage in Canada of petroleum, natural gas or other related hydrocarbons; (coût désigné de stockage souterrain)development phase of a taxpayer’s oil sands project means the acquisition, construction, fabrication or installation of a group of assets, by or on behalf of the taxpayer, that may reasonably be considered to constitute a discrete expansion in the capacity of the oil sands project when complete (including, for greater certainty, the initiation of a new oil sands project); (phase de mise en valeur)eligible liquefaction building of a taxpayer, in respect of an eligible liquefaction facility of the taxpayer, means property (other than property that has been used or acquired for use for any purpose before it was acquired by the taxpayer or a residential building ) acquired by the taxpayer after February 19, 2015 and before 2025 that is included in Class 1 in Schedule II because of paragraph (q) of that Class and that is used as part of the eligible liquefaction facility; (bâtiment de liquéfaction admissible)eligible liquefaction equipment in respect of an eligible liquefaction facility of a taxpayer, means property of the taxpayer that is used in connection with the liquefaction of natural gas and thatis acquired by the taxpayer after February 19, 2015 and before 2025,is included in Class 47 in Schedule II because of paragraph (b) of that Class,has not been used or acquired for use for any purpose before it was acquired by the taxpayer,is not excluded equipment, andis used as part of the eligible liquefaction facility; (matériel de liquéfaction admissible)eligible liquefaction facility of a taxpayer means a self-contained system located in Canada — including buildings, structures and equipment — that is used or intended to be used by the taxpayer for the purpose of liquefying natural gas; (installation de liquéfaction admissible)eligible mine development property means a property acquired by a taxpayer after March 20, 2013 and before 2018 for the purpose of gaining or producing incomefrom a new mine or an expansion of a mine, if the property was acquired under a written agreement entered into by the taxpayer before March 21, 2013,from a new mine, ifthe construction of the new mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), orthe engineering and design work for the construction of the new mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), orfrom an expansion of a mine, ifthe construction for the expansion of the mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), orthe engineering and design work for the construction of the expansion of the mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities); (bien admissible à l’aménagement d’une mine)eligible non-residential building means a taxpayer’s building (other than a building that was used, or acquired for use, by any person or partnership before March 19, 2007) that is located in Canada, that is included in Class 1 in Schedule II and that is acquired by the taxpayer on or after March 19, 2007 to be used by the taxpayer, or a lessee of the taxpayer, for a non-residential use; (bâtiment non résidentiel admissible)excluded equipment meanspipelines (other than pipelines used to move natural gas, or its components that are extracted, within an eligible liquefaction facility during the liquefaction process or used to move liquefied natural gas),equipment used exclusively to regasify liquefied natural gas, andelectrical generation equipment; (matériel non admissible)gas or oil well equipment includesequipment, structures and pipelines, other than a well casing, acquired to be used in a gas or oil field in the production therefrom of natural gas or crude oil, anda pipeline acquired to be used solely for transmitting gas to a natural gas processing plant,but does not includeequipment or structures acquired for the refining of oil or the processing of natural gas including the separation therefrom of liquid hydrocarbons, sulphur or other joint products or by-products, ora pipeline for removal or for collection for immediate removal of natural gas or crude oil from a gas or oil field except a pipeline referred to in paragraph (b); (matériel de puits de gaz ou de pétrole)general-purpose electronic data processing equipment means electronic equipment that, in its operation, requires an internally stored computer program thatis executed by the equipment,can be altered by the user of the equipment,instructs the equipment to read and select, alter or store data from an external medium such as a card, disk or tape, anddepends upon the characteristics of the data being processed to determine the sequence of its execution; (matériel électronique universel de traitement de l’information)oil sands project of a taxpayer means an undertaking by the taxpayer for the extraction of tar sands from a mineral resource owned by the taxpayer, which undertaking may include the processing of the tar sands to a stage that is not beyond the crude oil stage or its equivalent; (projet de sables bitumineux)oil sands property of a taxpayer means property acquired by the taxpayer for the purpose of earning income from an oil sands project of the taxpayer; (bien de sables bitumineux)ore includes ore from a mineral resource that has been processed to any stage that is prior to the prime metal stage or its equivalent; (minerai)preliminary work activity means activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of designated assets in respect of the taxpayer’s oil sands project including, without limiting the generality of the foregoing, the following activities:obtaining permits or regulatory approvals,performing design or engineering work,conducting feasibility studies,conducting environmental assessments,clearing or excavating land,building roads, andentering into contracts; (travaux préliminaires)railway system includes a railway owned or operated by a common carrier, together with all buildings, rolling stock, equipment and other properties pertaining thereto, but does not include a tramway; (réseau de chemin de fer)specified development phase of a taxpayer’s oil sands project means a bitumen development phase or an upgrading development phase of the oil sands project which can reasonably be expected to result in a planned level of average daily output (where that output is bitumen or a similar product in the case of a bitumen development phase, or synthetic crude oil or a similar product in the case of an upgrading development phase), and in respect of which phase,not including any preliminary work activity, one or more designated assets was, before March 19, 2007,acquired by the taxpayer, orin the process of being constructed, fabricated or installed, by or on behalf of the taxpayer, andthe planned level of average daily output is the lesser of,the level that was the demonstrated intention of the taxpayer as of March 19, 2007 to produce from the specified development phase, andthe maximum level of output associated with the design capacity, as of March 19, 2007, of the designated asset referred to in paragraph (a); (phase de mise en valeur déterminée)specified oil sands property of a taxpayer means oil sands property, acquired by the taxpayer before 2012, the taxpayer’s use of which is reasonably required for a specified development phase of an oil sands project of the taxpayer to reach completion; oras part of a bitumen development phase of an oil sands project of the taxpayer,to the extent that the output from the bitumen development phase is required for an upgrading development phase that is a specified development phase of the oil sands project to reach completion, and it is reasonable to conclude that all or substantially all of the output from the bitumen development phase will be so used; andwhere it was the demonstrated intention of the taxpayer as of March 19, 2007 to produce, from a mineral resource owned by the taxpayer, the bitumen feedstock required for the upgrading development phase to reach completion; (bien de sables bitumineux déterminé)specified temporary access road meansa temporary access road to an oil or gas well in Canada, anda temporary access road the cost of which would, if the definition Canadian exploration expense in subsection 66.1(6) of the Act were read without reference to paragraphs (k.1) and (l) of that definition, be a Canadian exploration expense because of paragraph (f) or (g) of that definition; (route d’accès temporaire déterminée)systems software means a combination of computer programs and associated procedures, related technical documentation and data thatperforms compilation, assembly, mapping, management or processing of other programs,facilitates the functioning of a computer system by other programs,provides service or utility functions such as media conversion, sorting, merging, system accounting, performance measurement, system diagnostics or programming aids,provides general support functions such as data management, report generation or security control, orprovides general capability to meet widespread categories of problem solving or processing requirements where the specific attributes of the work to be performed are introduced mainly in the form of parameters, constants or descriptors rather than in program logic,and includes a right or licence to use such a combination of computer programs and associated procedures, related technical documentation and data; (logiciel d’exploitation)tar sands ore means ore extracted from a deposit of bituminous sands or oil shales; (minerai de sables asphaltiques)telegraph system includes the buildings, structures, general plant and communication and other equipment pertaining thereto; (réseau de télégraphe)telephone system includes the buildings, structures, general plant and communication and other equipment pertaining thereto; (réseau de téléphone)television commercial message means a commercial message as defined in the Television Broadcasting Regulations, 1987 made under the Broadcasting Act; (message publicitaire pour la télévision)tramway or trolley bus system includes the buildings, structures, rolling stock, general plant and equipment pertaining thereto and where buses other than trolley buses are operated in connection therewith includes the properties pertaining to those bus operations; (réseau de tramway ou d’autobus à trolley)upgrading development phase of a taxpayer’s oil sands project means a development phase that expands the oil sands project’s capacity to process bitumen or a similar feedstock (all or substantially all of which is from a mineral resource owned by the taxpayer) to the crude oil stage or its equivalent. (phase de valorisation)Except as otherwise provided in subsection (6), in this Part and in Schedules II and V,industrial mineral mine includes a peat bog or deposit of peat but does not include a mineral resource; (mine de minéral industriel)mineral includes peat; (minéral)mining includes the harvesting of peat. (exploitation minière)DefinitionsThe following definitions apply in this Part and Schedules II to VI.designated immediate expensing property for a taxation year, means property of an eligible person or partnership thatis immediate expensing property of the eligible person or partnership;became available for use by the eligible person or partnership in the taxation year; andis designated as designated immediate expensing property in prescribed form filed by the eligible person or partnership with the Minister for the taxation yearif the eligible person or partnership is a partnership, on or before the day that is 12 months after the day on which any member of the partnership is required to file an information return under section 229 for the fiscal period to which the designation relates, andin any other case, on or before the day that is 12 months after the eligible person or partnership’s filing-due date for the taxation year to which the designation relates. (bien relatif à la passation en charges immédiate désigné)eligible person or partnership for a taxation year, meansa corporation that was a Canadian-controlled private corporation throughout the year;an individual (other than a trust) who was resident in Canada throughout the year; ora Canadian partnership all of the members of which were, throughout the period, persons described in paragraph (a) or (b). (personne ou société de personnes admissible)immediate expensing property for a taxation year, means property of a prescribed class (other than property included in any of Classes 1 to 6, 14.1, 17, 47, 49 and 51 in Schedule II) of an eligible person or partnership thatis acquired by the eligible person or partnershipif the eligible person or partnership is a Canadian-controlled private corporation, after April 18, 2021, orif the eligible person or partnership is an individual or a Canadian partnership, after December 31, 2021;becomes available for useif the eligible person or partnership is an individual or a Canadian partnership all the members of which are individuals throughout the taxation year, before 2025, andin any other case, before 2024; andmeets either of the following conditions:the propertyhas not been used for any purpose before it was acquired by the eligible person or partnership, andis not a property in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act by any person or partnership for a taxation year ending before the time the property was acquired by the eligible person or partnership, orthe property was notacquired in circumstances wherethe eligible person or partnership was deemed to have been allowed or deducted an amount under paragraph 20(1)(a) of the Act in respect of the property in computing income for previous taxation years, orthe undepreciated capital cost of depreciable property of a prescribed class of the eligible person or partnership was reduced by an amount determined by reference to the amount by which the capital cost of the property to the eligible person or partnership exceeds its cost amount, orpreviously owned or acquired by the eligible person or partnership or by a person or partnership with which the eligible person or partnership did not deal at arm’s length at any time when the property was owned or acquired by the person or partnership. (bien relatif à la passation en charges immédiate)taxpayer unless the context otherwise requires, includes an eligible person or partnership. (contribuable)Immediate expensing limitFor the purposes of this Part and Schedules II to VI, an eligible person or partnership’s immediate expensing limit for a taxation year is $1,500,000 unless the eligible person or partnership is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in the taxation year with one or more other eligible persons or partnerships, in which case, except as otherwise provided in this section, its immediate expensing limit is nil.Associated eligible persons or partnershipsDespite subsection (3.2), if all the eligible persons or partnerships that are associated with each other (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in a taxation year file with the Minister in prescribed form an agreement that assigns for the purpose of this Part and Schedules II to VI a percentage to one or more of them for the year, the immediate expensing limit for the year of each of the eligible persons or partnerships isif the total of the percentages assigned in the agreement does not exceed 100%, $1,500,000 multiplied by the percentage assigned to that eligible person or partnership in the agreement; andin any other case, nil.Failure to file agreementIf any of the eligible persons or partnerships that are associated with each other (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in a taxation year has failed to file with the Minister an agreement described in subsection (3.3) within 30 days after notice in writing by the Minister has been forwarded to any of them that such an agreement is required for the purpose of any assessment of tax under Part I of the Act, the Minister shall, for the purpose of this Part and Schedules II to VI, allocate an amount to one or more of them for the taxation year.Special rules for immediate expensing limitDespite subsections (3.2) to (3.4),where an eligible person or partnership (in this paragraph referred to as the “first person”) has more than one taxation year ending in the same calendar year and it is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in two or more of those taxation years with another eligible person or partnership (in this paragraph referred to as the “other person”) that has a taxation year ending in that calendar year, the immediate expensing limit of the first person for each taxation year ending in the calendar year in which it is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) with the other person that ends after the first such taxation year ending in that calendar year is, subject to the application of paragraph (b), an amount equal to the lesser ofits immediate expensing limit determined under subsection (3.3) or (3.4) for the first such taxation year ending in the calendar year, andits immediate expensing limit determined under subsection (3.3) or (3.4) for the particular taxation year ending in the calendar year; andwhere an eligible person or partnership has a taxation year that is less than 51 weeks, its immediate expensing limit for the year is that proportion of its immediate expensing limit for the year determined without reference to this paragraph that the number of days in the year is of 365.Associated - interpretationFor the purposes of this Part and Schedules II to VI, in determining whether an eligible person or partnership is associated (within the meaning of section 256 of the Act, as modified by this subsection) with another eligible person or partnership in a taxation yearif the eligible person or partnership is a partnership,the partnership is deemed to be a corporation (in this subsection referred to as a “deemed corporation”) for the year,the deemed corporation is deemed to have a capital stock of a single class of shares, with a total of 100 issued and outstanding shares,each member (in this subsection referred to as a “deemed shareholder”) of the deemed corporation is deemed to be a shareholder of the deemed corporation,each deemed shareholder of the deemed corporation is deemed to hold a number of shares in the capital stock of the deemed corporation determined by the formulaA × 100whereAis equal tothe deemed shareholder’s specified proportion for the last fiscal period of the deemed corporation, orif the deemed shareholder does not have a specified proportion described in clause (A), the proportion that the fair market value of the deemed shareholder’s interest in the deemed corporation at that time is of the fair market value of all interests in the deemed corporation at that time, andthe deemed corporation’s fiscal period is deemed to be its taxation year; andif the eligible person or partnership is an individual (other than a trust) who carries on a business or has acquired immediate expensing propertythe individual, in respect of that business or property, is deemed to be a corporation that is controlled by the individual, andthe corporation’s taxation year is deemed to be the same as the individual’s taxation year.For the purposes of this Part and Schedules II to VI, accelerated investment incentive property means property of a taxpayer (other than property included in any of Classes 54 to 56) thatis acquired by the taxpayer after November 20, 2018 and becomes available for use before 2028; andmeets either of the following conditions:the property is not a property in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act by any person or partnership for a taxation year ending before the time the property was acquired by the taxpayer, orthe property was notacquired in circumstances wherethe taxpayer was deemed to have been allowed or deducted an amount under paragraph 20(1)(a) of the Act in respect of the property in computing income for previous taxation years, orthe undepreciated capital cost of depreciable property of a prescribed class of the taxpayer was reduced by an amount determined by reference to the amount by which the capital cost of the property to the taxpayer exceeds its cost amount, orpreviously owned or acquired by the taxpayer or by a person or partnership with which the taxpayer did not deal at arm’s length at any time when the property was owned or acquired by the person or partnership.Deemed separate propertiesFor the purpose of subparagraph (4)(b)(i), if the capital cost to a taxpayer of a depreciable property (referred to in this subsection as the “single property”) includes amounts incurred at different times, then amounts deducted under paragraph 20(1)(a) or subsection 20(16) of the Act in respect of the single property are deemed to have been deducted in respect of a separate property that is not part of the single property to the extent the deducted amounts can reasonably be considered to be in respect of amountsincurred before November 21, 2018; orincurred after November 20, 2018, if any portion of the single property is considered to have become available for use before the time the single property is first used for the purpose of earning income.MiningFor the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and Classes 10, 28 and 41 to 41.2 of Schedule II, a taxpayer’s income from a mine, or any expression referring to a taxpayer’s income from a mine, includes income reasonably attributable tothe processing by the taxpayer ofore (other than iron ore or tar sands ore) all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,iron ore all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent,tar sands ore all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, ormaterial extracted by a well, all or substantially all of which is from a deposit of bituminous sands or oil shales owned by the taxpayer, to any stage that is not beyond the crude oil stage or its equivalent;the production by the taxpayer of material from a deposit of bituminous sands or oil shales; andthe transportation by the taxpayer ofoutput, other than iron ore or tar sands ore, from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the prime metal stage or its equivalent,iron ore from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the pellet stage or its equivalent, ortar sands ore from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the crude oil stage or its equivalent,to the extent that such transportation is effected through the use of property of the taxpayer that is included in Class 10 in Schedule II because of paragraph (m) thereof or that would be so included if that paragraph were read without reference to subparagraph (v) thereof and if Class 41 in Schedule II were read without the reference therein to that paragraph.For the purposes of Classes 41 to 41.2 of Schedule II, a taxpayer’s gross revenue from a mine includesrevenue reasonably attributable to the processing by the taxpayer ofore (other than iron ore or tar sands ore) from a mineral resource owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,iron ore from a mineral resource owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent,tar sands ore from a mineral resource owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, andmaterial extracted by a well from a mineral resource owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent;the amount, if any, by which any revenue reasonably attributable to the processing by the taxpayer ofore (other than iron ore or tar sands ore) from a mineral resource not owned by the taxpayer, to any stage that is not beyond the prime metal stage or its equivalent,iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent,tar sands ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, andmaterial extracted by a well from a mineral resource not owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalentexceeds the cost to the taxpayer of the ore or material processed; andrevenue reasonably attributable to the production by the taxpayer of material from a deposit of bituminous sands or oil shales.For the purpose of subsection (5.1), gross revenue from a mine does not include revenue reasonably attributable to the addition of diluent, for the purpose of transportation, to material extracted from a deposit of bituminous sands or oil shales.For the purposes of Class 10 in Schedule II,income from a mine includes income reasonably attributable to the processing ofore, other than iron ore or tar sands ore, from a mineral resource not owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent,tar sands ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, ormaterial extracted by a well from a mineral resource not owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent; andmine includes a well for the extraction of material from a deposit of bituminous sands or oil shales or from a deposit of calcium chloride, halite or sylvite.[Repealed, SOR/99-179, s. 3]For the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and 1102(8) and (9), section 1107 and Classes 12, 28 and 41 to 41.2 of Schedule II,mine includesa well for the extraction of material from a deposit of bituminous sands or oil shales or from a deposit of calcium chloride, halite or sylvite, anda pit for the extraction of kaolin or tar sands ore,but does not includean oil or gas well, ora sand pit, gravel pit, clay pit, shale pit, peat bog, deposit of peat or a stone quarry (other than a kaolin pit or a deposit of bituminous sands or oil shales);all wells of a taxpayer for the extraction of material from one or more deposits of calcium chloride, halite or sylvite, the material produced from which is sent to the same plant for processing, are deemed to be one mine of the taxpayer; andall wells of a taxpayer for the extraction of material from a deposit of bituminous sands or oil shales that the Minister, in consultation with the Minister of Natural Resources, determines constitute one project, are deemed to be one mine of the taxpayer.For the purposes of subsection (7), stone quarry includes a mine producing dimension stone or crushed rock for use as aggregates or for other construction purposes.For greater certainty, for the purposes of paragraphs (c) and (e) of Class 28 and paragraph (a) of Classes 41 to 41.2 in Schedule II, production means production in reasonable commercial quantities.Manufacturing or ProcessingFor the purposes of paragraph 1100(1)(a.1), subsection 1100(26) and Class 29 in Schedule II, manufacturing or processing does not includefarming or fishing;logging;construction;operating an oil or gas well or extracting petroleum or natural gas from a natural accumulation thereof;extracting minerals from a mineral resource;processing ofore, other than iron ore or tar sands ore, from a mineral resource to any stage that is not beyond the prime metal stage or its equivalent,iron ore from a mineral resource to any stage that is not beyond the pellet stage or its equivalent, ortar sands ore from a mineral resource to any stage that is not beyond the crude oil stage or its equivalent;producing industrial minerals;producing or processing electrical energy or steam, for sale;processing natural gas as part of the business of selling or distributing gas in the course of operating a public utility;processing heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent; orCanadian field processing.Certified Films and Video TapesFor the purposes of subsection 1100(21) and the definitions certified feature film and certified production and in subsection (2),Canadian means an individual who was, at all relevant times,a Canadian citizen as defined in the Citizenship Act, ora permanent resident within the meaning of the Immigration Act, 1976;a motion picture film or video tape that has been certified bythe Secretary of State, orthe Minister of Communicationsas a certified feature film or certified production, as the case may be, may have its certification revoked by the Minister of Communications where an incorrect statement was made in the furnishing of information for the purpose of obtaining that certification and a certification that has been so revoked is void from the time of its issue;remuneration does not include an amount determined by reference to the amount of income from a motion picture film or video tape;revenue guarantee means a contract or other arrangement under the terms of which a taxpayer has a right to receive a minimum rental revenue or other fixed revenue in respect of a right to the use, in any manner whatever, of a certified feature film or certified production;a screenwriter shall be deemed to be an individual who is a Canadian whereeach individual involved in the preparation of the screenplay is a Canadian, orthe principal screenwriter is an individual who is a Canadian andthe screenplay for the motion picture film or video tape is based upon a work authored by a Canadian,copyright in the work subsists in Canada, andthe work is published in Canada;unit of production means a measure used by the Minister of Communications in determining the weight to be given for each individual Canadian referred to in subparagraph (b)(ii) of the definition certified production in subsection (2) who provides services in respect of a motion picture film or video tape; andwhere each individual who performed a service in respect of a motion picture film or video tape as thedirector,screenwriter,actor or actress in respect of whose services for the film or tape the highest remuneration was paid or payable,actor or actress in respect of whose services for the film or tape the second highest remuneration was paid or payable,art director,director of photoghraphy,music composer, orpicture editorwas a Canadian, the Minister of Communications shall be deemed to have allotted six units of production in respect of the film or tape for the purposes of the definition certified production in subsection (2).Certified Class 34 PropertiesFor the purposes of paragraph (h) of Class 34 in Schedule II, a certificate issued undersubparagraph (d)(i) of that class may be revoked by the Minister of Industry, Trade and Commerce, orsubparagraph (d)(ii) or paragraph (g) of that class, as the case may be, may be revoked by the Minister of Energy, Mines and Resourceswherean incorrect statement was made in the furnishing of information for the purpose of obtaining the certificate, orthe taxpayer does not conform to the plan described in subparagraph (d)(i) or (d)(ii) of that class, as the case may be,and a certificate that has been so revoked shall be void from the time of its issue.Amusement ParksFor the purposes of Class 37 in Schedule II, amusement park means a park open to the public where amusements, rides and audio-visual attractions are permanently situated.Classes 43.1 and 43.2 — Energy Conservation Property[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2006-117, s. 4The definitions in this subsection apply for the purposes of this subsection, subsections (14) to (17) and Classes 43.1 and 43.2 in Schedule II.basic oxygen furnace gas means the gas that is produced intermittently in a basic oxygen furnace of a steel mill by the chemical reaction of carbon in molten steel and pure oxygen. (gaz de convertisseur basique à oxygène)biogas means the gas produced by the anaerobic digestion of specified waste material. (biogaz)bio-oil means liquid fuel that is created from wood waste or plant residues using a thermo-chemical conversion process that takes place in the absence of oxygen. (bio-huile)blast furnace gas means the gas produced in a blast furnace of a steel mill, by the chemical reaction of carbon (in the form of coke, coal or natural gas), the oxygen in air and iron ore. (gaz de haut fourneau)digester gas means a mixture of gases that are produced from the decomposition of organic waste in a digester and that are extracted from an eligible sewage treatment facility for that organic waste. (gaz de digesteur)distribution equipment means equipment (other than transmission equipment) used to distribute electrical energy generated by electrical generating equipment. (matériel de distribution)district energy equipment means property that is part of a district energy system and that consists of pipes or pumps used to collect and distribute an energy transfer medium, meters, control equipment, chillers and heat exchangers that are attached to the main distribution line of a district energy system, but does not includeproperty used to distribute water that is for consumption, disposal or treatment; orproperty that is part of the internal heating or cooling system of a building. (équipement de réseau énergétique de quartier)district energy system means a system that is used primarily to provide heating or cooling by continuously circulating, from a central generation unit to one or more buildings through a system of interconnected pipes, an energy transfer medium that is heated or cooled using thermal energy. (réseau énergétique de quartier)eligible landfill site means a landfill site that is situated in Canada, or a former landfill site that is situated in Canada, and, if a permit or licence in respect of the site is or was required under any law of Canada or of a province, for which the permit or licence has been issued. (site d’enfouissement admissible)eligible sewage treatment facility means a sewage treatment facility that is situated in Canada and for which a permit or licence is issued under any law of Canada or of a province. (installation admissible de traitement des eaux usées)eligible waste fuel means biogas, bio-oil, digester gas, landfill gas, municipal waste, plant residue, pulp and paper waste and wood waste. (combustible résiduaire admissible)eligible waste management facility means a waste management facility that is situated in Canada and for which a permit or licence is issued under any law of Canada or of a province. (installation admissible de gestion des déchets)enhanced combined cycle system means an electrical generating system in which thermal waste from one or more natural gas compressor systems is recovered and used to contribute at least 20 per cent of the energy input of a combined cycle process in order to enhance the generation of electricity, but does not include the natural gas compressor systems. (système à cycles combinés amélioré)food and animal waste means organic waste that is disposed of in accordance with the laws of Canada or a province and that is generated during the preparation or processing of food or beverage for human or animal consumption;food or beverage that is no longer fit for human or animal consumption; oranimal remains. (déchets alimentaires et animaux)food waste[Repealed, 2010, c. 25, s. 76]fossil fuel means a fuel that is petroleum, natural gas or related hydrocarbons, basic oxygen furnace gas, blast furnace gas, coal, coal gas, coke, coke oven gas, lignite or peat. (combustible fossile)gaseous biofuel means a fuel produced all or substantially all from specified waste material that is a gas at a temperature of 15.6°C (60°F) and a pressure of 101 kPa (14.7 psia). (biocarburants gazeux)landfill gas means a mixture of gases that are produced from the decomposition of organic waste and that are extracted from an eligible landfill site. (gaz d’enfouissement)liquid biofuel means a fuel produced all or substantially all from specified waste material or carbon dioxide that is a liquid at a temperature of 15.6°C (60°F) and a pressure of 101 kPa (14.7 psia). (biocarburants liquides)municipal waste means the combustible portion of waste material (other than waste material that is considered to be toxic or hazardous waste pursuant to any law of Canada or of a province) that is generated in Canada and that is accepted at an eligible landfill site or an eligible waste management facility and that, when burned to generate energy, emits only those fluids or other emissions that are in compliance with the law of Canada or of a province. (déchets municipaux)plant residue means residue of plants (not including wood waste and waste that no longer has the chemical properties of the plants of which it is a residue) that would otherwise be waste material. (résidus végétaux)producer gas meansin respect of a property of a taxpayer that becomes available for use by the taxpayer before 2025, fuel the composition of which, excluding its water content, is all or substantially all non-condensable gases that is generated primarily from eligible waste fuel or specified waste material using a thermo-chemical conversion process and that is not generated from any feedstock other than eligible waste fuel, specified waste material or fossil fuel; andin respect of a property of a taxpayer that becomes available for use by the taxpayer after 2024, fuelthe composition of which, excluding its water content, is all or substantially all non-condensable gases,that is generated using a thermo-chemical conversion process,that is generated from feedstock of which no more than 25% is fossil fuel when measured in terms of energy content (expressed as a higher heating value of the feedstock), andthat is not generated from any feedstock other than eligible waste fuel, specified waste material or fossil fuel. (gaz de gazéification)pulp and paper by-product means tall oil soaps and crude tall oil that are produced as by-products of the processing of wood into pulp or paper and the by-product of a pulp or paper plant’s effluent treatment or its de-inking processes. (sous-produit d’usine de pâtes ou papiers)pulp and paper waste meanstall oil soaps, crude tall oil and turpentine that are produced as by-products of the processing of wood into pulp or paper; andthe by-product of a pulp or paper plant’s effluent treatment, or its de-inking processes, if that by-product has a solid content of at least 40 per cent before combustion. (déchets d’usines de pâtes ou papiers)separated organics means organic waste (other than waste that is considered to be toxic or hazardous waste under any law of Canada or a province) that could be disposed of in an eligible waste management facility or eligible landfill site. (matières organiques séparées)solid biofuel means a fuel produced all or substantially all from specified waste material that is a solid at a temperature of 15.6°C (60°F) and a pressure of 101 kPa (14.7 psia) (other than charcoal that is used for cooking or fuels with fossil fuel-derived ignition accelerants) and that has undergonea thermo-chemical conversion process to increase its carbon fraction and densification; ordensification into pellets or briquettes. (biocarburants solides)solution gas means a fossil fuel that is gas that would otherwise be flared and has been extracted from a solution of gas and produced oil. (gaz dissous)specified waste material means wood waste, plant residue, municipal waste, sludge from an eligible sewage treatment facility, spent pulping liquor, food and animal waste, manure, pulp and paper by-product and separated organics. (déchets déterminés)spent pulping liquor means the by-product of a chemical process of transforming wood into pulp, consisting of wood residue and pulping agents. (liqueur résiduaire)thermal waste means waste heat energy extracted from a distinct point of rejection in an industrial process that would otherwise be vented to the atmosphere or transferred to a liquid; andnot be used for a useful purpose. (déchets thermiques)transmission equipment means equipment used to transmit more than 75 per cent of the annual electrical energy generated by electrical generating equipment, but does not include a building. (matériel de transmission)wood waste includes scrap wood, sawdust, wood chips, bark, limbs, saw-ends and hog fuel, but does not include spent pulping liquor and any waste that no longer has the physical or chemical properties of wood. (déchets de bois)Where property of a taxpayer is not operating in the manner required by paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II solely because of a deficiency, failing or shutdown that is beyond the control of the taxpayer of the system of which it is a part and that previously operated in the manner required by that paragraph, as the case may be, that property is deemed, for the purpose of that paragraph, to be operating in the manner required under that paragraph during the period of the deficiency, failing or shutdown, if the taxpayer makes all reasonable efforts to rectify the circumstances within a reasonable time.For the purpose of subsection (14), a taxpayer’s system referred to in that subsection that has at any particular time operated in the manner required by paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II includes at any time after the particular time a property of another person or partnership ifthe property would reasonably be considered to be part of the taxpayer’s system were the property owned by the taxpayer;the property utilizes steam obtained from the taxpayer’s system primarily in an industrial process (other than the generation of electrical energy);the operation of the property is necessary for the taxpayer’s system to operate in the manner required by paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II, as the case may be; andat the time that the taxpayer’s system first became operational, the deficiency, failing or shutdown in the operation of the property could not reasonably have been anticipated by the taxpayer to occur within five years after that time.For the purpose of subsection (14), a district energy system is deemed to satisfy the requirements of paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II, as the case may be, if the electrical cogeneration equipment that produces the thermal energy used by the system is deemed by subsection (14) to meet the requirements of paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II, as the case may be.A property that would otherwise be eligible for inclusion in Class 43.1 or Class 43.2 in Schedule II by a taxpayer is deemed not to be eligible for inclusion in either of those classes ifthe property isincluded in Class 43.1 because of its subparagraph (c)(i), ordescribed inany of subparagraphs (d)(vii) to (ix), (xi), (xiii), (xiv), (xvi), (xvii) and (xix) to (xxii) of Class 43.1, orparagraph (a) of Class 43.2; andat the time the property becomes available for use by the taxpayer, the taxpayer has not satisfied the requirements of all environmental laws, by-laws and regulationsof Canada, a province or a municipality in Canada, orof a municipal or public body performing a function of government in Canadaapplicable in respect of the property.Classes 1 and 47 — Liquefaction PropertyFor the purposes of paragraphs 1100(1)(a.3) and (yb), a taxpayer’s income for a taxation year from eligible liquefaction activities in respect of an eligible liquefaction facility of the taxpayer is determined as ifthe taxpayer carried on a separate businessthe only income of which is any combination of:in the case of natural gas that is owned by the taxpayer at the time it enters the taxpayer’s eligible liquefaction facility, income from the sale by the taxpayer of the natural gas that has been liquefied, whether sold as liquefied natural gas or regasified natural gas, andin any other case, income reasonably attributable to the liquefaction of natural gas at the taxpayer’s eligible liquefaction facility, andin respect of which the only permitted deductions in computing the separate business’ income are those deductions that are attributable to income described in subparagraph (i) and, in the case of income described in clause (i)(A), that are reasonably attributable to income derived after the natural gas enters the eligible liquefaction facility; andin the case of income described in clause (a)(i)(A), the taxpayer acquired the natural gas that has been liquefied at a cost equal to the fair market value of the natural gas at the time it entered the eligible liquefaction facility.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 3; SOR/78-502, s. 2; SOR/78-948, ss. 2, 3; SOR/79-426, s. 3; SOR/79-670, s. 3; SOR/80-418, s. 1; SOR/80-618, s. 2(F); SOR/80-926, s. 1; SOR/80-935, s. 1; SOR/80-942, s. 2; SOR/81-974, s. 1; SOR/81-1026, s. 1; SOR/82-265, s. 4; SOR/83-855, s. 1; SOR/84-265, s. 1; SOR/85-174, s. 2; SOR/86-254, s. 2; SOR/86-1092, s. 6(F); SOR/89-27, s. 3; SOR/90-22, s. 5; SOR/91-79, s. 1; SOR/94-169, s. 2; SOR/94-686, ss. 11(F), 62, 81(F); SOR/95-244, s. 2; SOR/96-200, s. 1; SOR/96-451, s. 1; SOR/97-377, s. 4; SOR/98-97, s. 2; SOR/99-179, s. 3; SOR/2000-327, s. 2; SOR/2001-295, s. 2(E); SOR/2005-371, s. 4; SOR/2005-414, s. 3; SOR/2005-415, s. 1; SOR/2006-117, s. 4; SOR/2006-249, s. 1; SOR/2007-19, s. 2; SOR/2009-115, s. 4; SOR/2009-126, s. 4; 2010, c. 25, s. 76; SOR/2010-93, s. 14; 2011, c. 24, s. 79; SOR/2011-9, s. 4; SOR/2011-195, s. 6(F); 2012, c. 31, s. 61; 2013, c. 40, s. 103; 2014, c. 39, s. 85; SOR/2015-117, s. 3; 2017, c. 33, s. 912019, c. 29, s. 552021, c. 23, s. 872022, c. 10, s. 362022, c. 10, s. 372022, c. 10, s. 38
Classes Prescribed
The classes of property provided in this Part and in Schedule II are hereby prescribed for the purposes of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/82-265, s. 5; SOR/96-228, s. 1
Certificates Issued by the Minister of Canadian HeritageInterpretation
The following definitions apply in this Division and in paragraph (x) of Class 10 in Schedule II.application for a certificate of completion, in respect of a film or video production, means an application by a prescribed taxable Canadian corporation in respect of the production, filed with the Minister of Canadian Heritage before the day (in this Division referred to as “the production’s application deadline”) that is the later ofthe day that is 24 months after the end of the corporation’s taxation year in which the production’s principal photography began, orthe day that is 18 months after the day referred to in paragraph (a), if the corporation has filed, with the Canada Revenue Agency, and provided to the Minister of Canadian Heritage a copy of, a waiver described in subparagraph 152(4)(a)(ii) of the Act, within the normal reassessment period for the corporation in respect of the first and second taxation years ending after the production’s principal photography began. (demande de certificat d’achèvement)Canadian means a person that isan individual who isa citizen, as defined in subsection 2(1) of the Citizenship Act, of Canada, ora permanent resident, as defined in subsection 2(1) of the Immigration and Refugee Protection Act, ora corporation that is a Canadian-controlled entity, as determined under sections 26 to 28 of the Investment Canada Act. (Canadien)Canadian government film agency means a federal or provincial government agency whose mandate is related to the provision of assistance to film productions in Canada. (agence cinématographique d’État)certificate of completion, in respect of a film or video production of a corporation, means a certificate certifying that the production has been completed, issued by the Minister of Canadian Heritage before the day (in this Division referred to as “the production’s certification deadline”) that is six months after the production’s application deadline. (certificat d’achèvement)copyright owner, of a film or video production, at any time means the maker, as defined in section 2 of the Copyright Act, who at that time owns copyright, in relation to the production, within the meaning of section 3 of that Act; ora person to whom that copyright has been assigned, under an assignment described in section 13 of the Copyright Act, either wholly or partially, by the maker or by another owner to whom this paragraph applied before the assignment. (titulaire du droit d’auteur)excluded production means a film or video production, of a particular corporation that is a prescribed taxable Canadian corporation,in respect of whichthe particular corporation has not filed an application for a certificate of completion before the production’s application deadline,a certificate of completion has not been issued before the production’s certification deadline,if the production is not a treaty co-production, a person (other than the particular corporation or a prescribed person)is a copyright owner of the production for any commercial exploitation purposes at any time during the 25-year period that begins at the earliest time after the production was completed that it is commercially exploitable, orcontrols the initial licensing of commercial exploitation,there is not an agreement in writing, for consideration at fair market value, to have the production shown in Canada within the 2-year period that begins at the earliest time after the production was completed that it is commercially exploitable,with a corporation that is a Canadian and is a distributor of film or video productions, orwith a corporation that holds a broadcasting license issued by the Canadian Radio-television and Telecommunications Commission for television markets, ordistribution is made in Canada within the 2-year period that begins at the earliest time after the production was completed that it is commercially exploitable by a person that is not a Canadian, orthat isnews, current events or public affairs programming, or a programme that includes weather or market reports,[Repealed, SOR/2016-262, s. 1]a production in respect of a game, questionnaire or contest (other than a production directed primarily at minors),a sports event or activity,a gala presentation or an awards show,a production that solicits funds,reality television,pornography,advertising,a production produced primarily for industrial, corporate or institutional purposes, ora production, other than a documentary, all or substantially all of which consists of stock footage. (production exclue)producer means a producer of a film or video production, except that it does not include a person unless the person is the individual whocontrols and is the central decision maker in respect of the production;is directly responsible for the acquisition of the production story or screenplay and the development, creative and financial control and exploitation of the production; andis identified in the production as being the producer of the production. (producteur)remuneration means remuneration other than an amount determined by reference to profits or revenues. (rémunération)twinning arrangement means the pairing of two distinct film or video productions, one of which is a Canadian film or video production and the other of which is a foreign film or video production. (convention de jumelage)COVID-19 — Application for a Certificate of CompletionIn respect of applications filed with the Minister of Canadian Heritage in respect of film or video productions for which the labour expenditure of the corporation in respect of the production for the taxation years ending in 2020 or 2021 was greater than nil, the definition application for a certificate of completion in subsection (1) is to be read as follows:application for a certificate of completion, in respect of a film or video production, means an application by a prescribed taxable Canadian corporation in respect of the production, filed with the Minister of Canadian Heritage before the day (in this Division referred to as “the production’s application deadline”) that is the later ofthe day that is 24 months after the end of the corporation’s taxation year in which the production’s principal photography began,the day that is 18 months after the day referred to in paragraph (a), if the corporation has filed, with the Canada Revenue Agency, and provided to the Minister of Canadian Heritage a copy of, a waiver described in subparagraph 152(4)(a)(ii) of the Act, within the normal reassessment period for the corporation in respect of the first and second taxation years ending after the production’s principal photography began, orthe day that is 12 months after the day referred to in paragraph (b), if the corporation has filed, with the Canada Revenue Agency, and provided to the Minister of Canadian Heritage a copy of, a waiver described in subparagraph 152(4)(a)(ii) of the Act, within the normal reassessment period for the corporation in respect of the first, second and third taxation years ending after the production’s principal photography began. (demande de certificat d’achèvement)COVID-19 — Excluded ProductionThe reference to “2-year period” in subparagraph (a)(iv) of the definition excluded production in subsection (1) is to be read as a reference to “three-year period” in respect of film or video productions for which the labour expenditure of the corporation in respect of the production for the taxation years ending in 2020 or 2021 was greater than nil.Prescribed Taxable Canadian CorporationFor the purposes of section 125.4 of the Act and this Division, prescribed taxable Canadian corporation means a taxable Canadian corporation that is a Canadian, other than a corporation that iscontrolled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under Part I of the Act; ora prescribed labour-sponsored venture capital corporation, as defined in section 6701.Treaty Co-productionFor the purpose of this Division, treaty co-production means a film or video production whose production is contemplated under any of the following instruments, and to which the instrument applies:a co-production treaty entered into between Canada and another State;the Memorandum of Understanding between the Government of Canada and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China on Film and Television Co-Production;the Common Statement of Policy on Film, Television and Video Co-Productions between Japan and Canada;the Memorandum of Understanding between the Government of Canada and the Government of the Republic of Korea on Television Co-Production;the Memorandum of Understanding between the Government of Canada and the Government of the Republic of Malta on Audio-Visual Relations; andthe Memorandum of Understanding between the Government of Canada and the Respective Governments of the Flemish, French and German-Speaking Communities of the Kingdom of Belgium concerning Audiovisual Coproduction.Canadian Film or Video ProductionSubject to subsections (6) to (9), for the purposes of section 125.4 of the Act, this Part and Schedule II, Canadian film or video production means a film or video production, other than an excluded production, of a prescribed taxable Canadian corporation in respect of which the Minister of Canadian Heritage has issued a certificate (other than a certificate that has been revoked under subsection 125.4(6) of the Act) and that isa treaty co-production; ora film or video productionwhose producer is a Canadian at all times during its production,in respect of which the Minister of Canadian Heritage has allotted not less than six points in accordance with subsection (5),in respect of which not less than 75% of the total of all costs for services provided in respect of producing the production (other than excluded costs) was payable in respect of services provided to or by individuals who are Canadians, and for the purpose of this subparagraph, excluded costs arecosts determined by reference to the amount of income from the production,remuneration payable to, or in respect of, the producer or individuals described in any of subparagraphs (5)(a)(i) to (viii) and (b)(i) to (vi) and paragraph (5)(c) (including any individuals that would be described in paragraph (5)(c) if they were Canadians),amounts payable in respect of insurance, financing, brokerage, legal and accounting fees, and similar amounts, andcosts described in subparagraph (iv), andin respect of which not less than 75% of the total of all costs incurred for the post-production of the production, including laboratory work, sound re-recording, sound editing and picture editing, (other than costs that are determined by reference to the amount of income from the production and remuneration that is payable to, or in respect of, the producer or individuals described in any of subparagraphs (5)(a)(i) to (viii) and (b)(i) to (vi) and paragraph (5)(c), including any individuals that would be described in paragraph (5)(c) if they were Canadians) was incurred in respect of services provided in Canada.For the purposes of this Division, the Minister of Canadian Heritage shall allot, in respect of a film or video productionthat is not an animation production, in respect of each of the following persons if that person is an individual who is a Canadian,for the director, two points,for the screenwriter, two points,for the lead performer for whose services the highest remuneration was payable, one point,for the lead performer for whose services the second highest remuneration was payable, one point,for the art director, one point,for the director of photography, one point,for the music composer, one point, andfor the picture editor, one point;that is an animation production, in respect of each of the following persons if that person is an individual who is a Canadian,for the director, one point,for the lead voice for which the highest or second highest remuneration was payable, one point,for the design supervisor, one point,for the camera operator where the camera operation is done in Canada, one point,for the music composer, one point, andfor the picture editor, one point;that is an animation production, one point if both the principal screenwriter and the storyboard supervisor are individuals who are Canadians; andthat is an animation production, in respect of each of the following places if that place is in Canada,for the place where the layout and background work is done, one point,for the place where the key animation is done, one point, andfor the place where the assistant animation and in-betweening is done, one point.A production (other than a production that is an animation production or a treaty co-production) is a Canadian film or video production only if there is allotted in respect of the production two points under subparagraph (5)(a)(i) or (ii) and one point under subparagraph (5)(a)(iii) or (iv).An animation production (other than a production that is a treaty co-production) is a Canadian film or video production only if there is allotted, in respect of the production,one point under subparagraph (5)(b)(i) or paragraph (5)(c);one point under subparagraph (5)(b)(ii); andone point under subparagraph (5)(d)(ii).Lead performer/screenwriterFor the purposes of this Division,a lead performer in respect of a production is an actor or actress who has a leading role in the production having regard to the performer’s remuneration, billing and time on screen;a lead voice in respect of an animation production is the voice of the individual who has a leading role in the production having regard to the length of time that the individual’s voice is heard in the production and the individual’s remuneration; andwhere a person who is not a Canadian participates in the writing and preparation of the screenplay for a production, the screenwriter is not a Canadian unless the principal screenwriter is an individual who is otherwise a Canadian, the screenplay for the production is based upon a work authored by a Canadian, and the work is published in Canada.Documentary ProductionA documentary production that is not an excluded production, and that is allotted less than six points because one or more of the positions referred to in paragraph (5)(a) is unoccupied, is a Canadian film or video production if all of the positions described in that paragraph that are occupied in respect of the production are occupied by individuals who are Canadians.Prescribed PersonFor the purpose of section 125.4 of the Act and this Division, prescribed person means any of the following:a corporation that holds a television, specialty or pay-television broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission;a corporation that holds a broadcast undertaking licence and that provides production funding as a result of a “significant benefits” commitment given to the Canadian Radio-television and Telecommunications Commission;a person to which paragraph 149(1)(l) of the Act applies and that has a fund that is used to finance Canadian film or video productions;a Canadian government film agency;in respect of a film or video production, a non-resident person that does not carry on a business in Canada through a permanent establishment in Canada and whose interest (or, for civil law, right) in the production is acquired to comply with the certification requirements of a treaty co-production twinning arrangement;a personto which paragraph 149(1)(f) of the Act applies,that has a fund that is used to finance Canadian film or video productions, all or substantially all of which financing is provided by way of a direct ownership interest (or, for civil law, right) in those productions, andthat, after 1996, has received donations only from persons described in any of paragraphs (a) to (e);a prescribed taxable Canadian corporation;an individual who is a Canadian; anda partnership, each member of which is described in any of paragraphs (a) to (h).Prescribed AmountFor the purpose of the definition assistance in subsection 125.4(1) of the Act, prescribed amount means an amount paid or payable to a taxpayer under the License Fee Program of the Canadian Television Fund or as a licence-fee top-up contribution from the Canada Media Fund.Copyright OwnerFor the purpose of the definition copyright owner in subsection (1),the right of a person to share in the revenues from or proceeds of disposition of an interest or, for civil law, a right, in a film or video production is not, in and by itself, an interest or right as a copyright owner of the production; andfor greater certainty, a grant of an exclusive licence, within the meaning assigned by the Copyright Act, is not an assignment of a copyright.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-126, s. 3; SOR/2010-96, s. 2; 2013, c. 34, s. 385; SOR/2015-61, s. 1; SOR/2016-262, s. 12019, c. 29, s. 562022, c. 10, s. 39
Determination of Viscosity and Density
For the purpose of the definition bituminous sands in subsection 248(1) of the Act, viscosity or density of hydrocarbons shall be determined using a number of individual samples (constituting a representative sampling of that deposit or those deposits, as the case may be, from which the taxpayer is committed to produce by means of one mine) testedat atmospheric pressure;at a temperature of 15.6 degrees Celsius; andfree of solution gas.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/98-97, s. 3
Resource and Processing Allowances
For the purposes of section 65 of the Act, there may be deducted in computing the income of a taxpayer for a taxation year such of the amounts determined in accordance with sections 1201 to 1209 and 1212 as are applicable.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-245, s. 1
Earned Depletion Allowances
In computing a taxpayer’s income for a taxation year there may be deducted such amount as he may claim not exceeding the lesser ofthe aggregate of25 per cent of the amount, if any, by which the taxpayer’s resource profits for the year exceed four times the total of amounts, if any, deducted under subsection 1202(2) in computing the taxpayer’s income for the year, andthe amount, if any, by which the aggregate of amounts included in computing the taxpayer’s income for the year under paragraphs 59(3.3)(a) and (b) of the Act exceeds the aggregate of amounts, if any, that may reasonably be considered to have been deducted under subsection 1202(2) by reason of subparagraph (b)(ii) thereof in computing the taxpayer’s income for the year; andthe aggregate ofthe taxpayer’s earned depletion base as of the end of the year, andthe amount, if any, by whichthe aggregate determined under paragraph 1202(4)(a) in respect of the taxpayer for the yearexceedsthe amount, if any, by whichthe aggregate of all amounts that would be determined under paragraphs 1205(1)(e) to (k)exceeds33 1/3 per cent of the aggregate of all amounts that would be determined under paragraphs 1205(1)(a) to (d.2)in computing the taxpayer’s earned depletion base as of the end of the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-502, s. 3; SOR/81-974, s. 2; SOR/91-79, s. 2; SOR/99-179, s. 4
For the purposes of computing the earned depletion base of a corporation, control of which has been acquired under circumstances described in subsection 66(11) of the Act, the amount by which the earned depletion base of the corporation at the time referred to in that subsection exceeds the aggregate of amounts otherwise deducted under section 1201 in computing its income for taxation years ending after that time and before control was so acquired shall be deemed to have been deducted under section 1201 by the corporation in computing its income for taxation years ending before such acquisition of control.Subject to subsections (5) and (6), where after November 7, 1969 a corporation (in this subsection referred to as the “successor”) acquired a particular property (whether by way of a purchase, amalgamation, merger, winding-up or otherwise), there may be deducted by the successor in computing its income for a taxation year an amount not exceeding the aggregate of all amounts each of which is an amount determined in respect of an original owner of the particular property that is the lesser ofthe earned depletion base of the original owner immediately after the original owner disposed of the particular property (determined as if, in the case of a disposition after April 28, 1978 as a result of an amalgamation described in section 87 of the Act, the original owner existed after the time of disposition and no property was acquired or disposed of in the course of the amalgamation) to the extent of the amount thereof that was notdeducted by the original owner or any predecessor owner of the particular property in computing income for any taxation year,deducted by the successor in computing income for a preceding taxation year, orotherwise deducted by the successor in computing income for the taxation year, and25 per cent of the amount, if any, by whichthe part of the successor’s income for the year that can reasonably be regarded as attributable tothe part of any amount included under paragraph 59(3.2)(c) of the Act in computing its income for the year that can reasonably be regarded as attributable to the disposition by it in the year or a preceding taxation year of any interest in or right to the particular property, to the extent that the proceeds of the disposition have not been included in determining an amount under this clause, paragraph (7)(g), clause 29(25)(d)(i)(A) of the Income Tax Application Rules or clause 66.7(1)(b)(i)(A) or (3)(b)(i)(A) or paragraph 66.7(10)(g) of the Act for a preceding taxation year,its reserve amount for the year in respect of the original owner and each predecessor owner, if any, of the particular property,production from the particular property, orprocessing described in subparagraph 1204(1)(b)(iii), (iv) or (v) with the particular propertycomputed as if no deduction were allowed under section 29 of the Income Tax Application Rules or under any of sections 65 to 66.7 of the Act and as if that income did not include any amount designated under clause 66.7(2)(b)(ii)(A) of the Act,exceedsthe total offour times the total of all other amounts deducted under this subsection for the year that can reasonably be regarded as attributable to the part of the successor’s income for the year described in subparagraph (i), andthe total of all amounts each of which is an amount deducted under subsection 66.7(1), (3), (4) or (5) of the Act or subsection 29(25) of the Income Tax Application Rules for the year that can reasonably be regarded as attributable to the part of the successor’s income for the year described in subparagraph (i).Where in a taxation year ending after February 17, 1987 an original owner of a property disposes of the property in circumstances in which subsection (2) applies,the amount of the earned depletion base of the original owner determined immediately after the time of that disposition shall be deducted in determining the earned depletion base of the original owner at any time after the time that is immediately after the disposition;for the purposes of paragraph (2)(a), the earned depletion base of the original owner determined immediately after the original owner disposed of the property that was deducted in computing the original owner’s income for the year shall be deemed to be equal to the lesser ofthe amount deducted in respect of the disposition under paragraph (a), andthe amount, if any, by whichthe specified amount determined under subsection (4) in respect of the original owner for the yearexceedsthe aggregate of all amounts each of which is an amount determined under this paragraph in respect of any disposition made by the original owner before the disposition and in the year; andfor greater certainty, any amount (other than the amount determined under paragraph (b)) that was deducted under section 1201 by the original owner for the year or a subsequent taxation year shall, for the purposes of paragraph (2)(a), be deemed not to be in respect of the earned depletion base of the original owner determined immediately after the original owner disposed of the particular property.Where in a taxation year ending after February 17, 1987 an original owner of a property disposes of the property in circumstances in which subsection (2) applies, the lesser ofthe total of all amounts each of which is the amount, if any, by whichan amount deducted under paragraph (3)(a) in respect of such a disposition in the year by the original ownerexceedsthe amount, if any, designated by the original owner in a prescribed form filed with the Minister within six months after the end of the year in respect of the amount determined under subparagraph (i), andthe amount, if any, deducted under section 1201 in computing the income of the original owner for the taxation yearis the specified amount in respect of the original owner for the year for the purposes of paragraphs (3)(b) and 1205(1)(d.2).Subsections (2), 1203(3), 1207(7) and 1212(4) do not applyin respect of a property acquired by way of an amalgamation or winding-up to which section 1214 applies;to permit, in respect of the acquisition by a corporation before February 18, 1987 of a property, a deduction by the corporation of an amount that the corporation would not have been entitled to deduct under this Part, if this Part, as it read in its application to taxation years ending before February 18, 1987, applied to taxation years ending after February 17, 1987; orin respect of a property acquired by purchase, amalgamation, merger, winding-up or otherwise, from a person who is exempt from tax under Part I of the Act on that person’s taxable income.Subsections (2), 1203(3), 1207(7) and 1212(4) apply only to a corporation that has acquired a particular propertywhere it acquired the particular property in a taxation year commencing before 1985 and, at the time it acquired the particular property, the corporation acquired the specified property of the person from whom it acquired the particular property;where it acquired the particular property from a person in a taxation year commencing after 1984 and, at the time it acquired the particular property, the corporation acquiredall or substantially all of the Canadian resource properties of that person, orwhere subparagraph (i) does not apply, the specified property of the person;where it acquired (other than in circumstances in which subparagraph (b)(ii) applies) the particular property after November 16, 1978 and in a taxation year ending before February 18, 1987 by any means other than by way of an amalgamation or winding-up and it and the person from whom it acquired the particular property have filed with the Minister a joint election under and in accordance with any of subsections 66(6), 66.1(4), 66.1(5), 66.2(3), 66.2(4), 66.4(3), and 66.4(4) of the Act as those subsections read in their application to that year;where it acquired the particular property after June 5, 1987 by way of an amalgamation or winding-up (other than in circumstances in which subparagraph (b)(ii) applies) and it has filed an election in the form prescribed for the purposes of paragraph 66.7(7)(c) of the Act with the Minister on or before the day on or before which the corporation is required to file a return of income pursuant to section 150 of the Act for its taxation year in which it acquired the particular property;where it acquired the particular property (other than by means of an amalgamation or winding-up or in circumstances in which subparagraph (b)(ii) applies) in a taxation year ending after February 17, 1987 and it and the person from whom it acquired the particular property have filed a joint election in the form prescribed for the purposes of paragraph 66.7(7)(e) of the Act with the Minister on or before the earlier of the days on or before which either of them is required to file a return of income pursuant to section 150 of the Act in respect of the irrespective taxation years that include the time of acquisition of the particular property; andwhere it acquired (other than by way of an amalgamation or winding-up) the particular property in circumstances in which subparagraph (b)(ii) applies and it and the person from whom it acquired the particular property agree to have subsection (2), 1203(3), 1207(7) or 1212(4), as the case may be, apply to them and notify the Minister in writing of the agreement in their returns of income under Part I of the Act for their respective taxation years that include the time of acquisition of the particular property.Where at any time after November 12, 1981control of a corporation is considered for the purposes of subsection 66.7(10) of the Act to have been acquired by a person or group of persons, ora corporation ceases to be exempt from tax under Part I of the Act on its taxable income,for the purposes of section 1201, this section and section 1205,the corporation shall be deemed after that time to be a successor (within the meaning assigned by subsection (2)) that had, at that time, acquired all the properties owned by the corporation immediately before that time from an original owner thereof;a joint election shall be deemed to have been filed in accordance with subsection (6) in respect of the acquisition;the earned depletion base of the corporation immediately before that time shall be deemed not to be the earned depletion base of the corporation immediately after that time but to be the earned depletion base of the original owner immediately after that time;[Repealed, SOR/93-120, s. 1]where the corporation (in this paragraph referred to as the “transferee”) was, immediately before and at that time,a parent corporation (within the meaning assigned by subsection 87(1.4) of the Act), ora subsidiary wholly-owned corporation (within the meaning assigned by subsection 87(1.4) of the Act)of a particular corporation (in this paragraph referred to as the “transferor”), if both corporations agree to have this paragraph apply to them in respect of a taxation year of the transferor ending after that time and notify the Minister in writing of the agreement in the return of income under Part I of the Act of the transferor for that year, the transferor may, if throughout that year the transferee was such a parent corporation or subsidiary wholly-owned corporation of the transferor, designate in favour of the transferee, in respect of that year, for the purpose of making a deduction under subsection (2) in respect of expenditures incurred by the transferee before that time and when it was such a parent corporation or subsidiary wholly-owned corporation of the transferor, an amount not exceeding such portion of the amount that would be its income for the year, if no deductions were allowed under any of section 29 of the Income Tax Application Rules, and sections 65 to 66.7 of the Act, that may reasonably be regarded as being attributable tothe production from Canadian resource properties owned by the transferor immediately before that time,the disposition in the year of any Canadian resource properties owned by the transferor immediately before that time, andsuch processing as is described in subparagraph 1204(1)(b)(iii), (iv), or (v) with property owned by the transferor immediately before that timeto the extent that such portion of the amount so designated is not designated under this paragraph in favour of any other taxpayer or under paragraph 66.7(10)(g) of the Act in favour of any taxpayer, and the amount so designated shall be deemed, for the purposes of determining the amount under subsection (2),to be income from the sources described in subparagraph (iii), (iv) or (v), as the case may be, of the transferee for its taxation year in which that taxation year of the transferor ends, andnot to be income from the sources described in subparagraph (iii), (iv) or (v), as the case may be, of the transferor for that year;where, immediately before and at that time, the corporation (in this paragraph referred to as the “transferee”) and another corporation (in this paragraph referred to as the “transferor”) were both subsidiary wholly-owned corporations (within the meaning assigned by subsection 87(1.4) of the Act) of a particular parent corporation (within the meaning assigned by subsection 87(1.4) of the Act), if the transferee and the transferor agree to have this paragraph apply to them in respect of a taxation year of the transferor ending after that time and notify the Minister in writing of the agreement in the return of income under Part I of the Act of the transferor for that year, paragraph (g) shall apply for that year to the transferee and transferor as though one were the parent corporation (within the meaning assigned by subsection 87(1.4) of the Act) of the other; andwhere that time is after January 15, 1987 and at that time the corporation was a member of a partnership that owned a property at that timefor the purposes of paragraph (c), the corporation shall be deemed to have owned immediately before that time that portion of the property owned by the partnership at that time that is equal to its percentage share of the aggregate of amounts that would be paid to all members of the partnership if it were wound up at that time, andfor the purposes of clauses (2)(b)(i)(C) and (D) for a taxation year ending after that time, the lesser ofits share of the part of the income of the partnership for the fiscal period of the partnership ending in the year that may reasonably be regarded as being attributable to the production from the property or to such processing as is described in subparagraph 1204(1)(b)(iii), (iv) or (v) with the property, andan amount that would be determined under clause (A) for the year if its share of the income of the partnership for the fiscal year of the partnership were determined on the basis of the percentage share referred to in subparagraph (i)shall be deemed to be income of the corporation for the year that may reasonably be attributable to production from the property or to such processing as is described in subparagraph 1204(1)(b)(iii), (iv) or (v) with the property.For the purposes of subsections (1) and (7), where a corporation acquired control of another corporation after November 12, 1981 and before 1983 by reason of the acquisition of shares of the other corporation pursuant to an agreement in writing concluded on or before November 12, 1981, the corporation shall be deemed to have acquired such control on or before November 12, 1981.Where, at any time,control of a taxpayer that is a corporation has been acquired by a person or group of persons,a taxpayer has disposed of all or substantially all of the taxpayer’s Canadian resource properties, ora taxpayer has disposed of the specified property of the taxpayer,and, before that time, the taxpayer or a partnership of which the taxpayer was a member acquired a property and it may reasonably be considered that one of the main purposes of the acquisition was to avoid any limitation provided in subsection (2) on the deduction in respect of the earned depletion base of the taxpayer or of a corporation referred to as a transferee in paragraph (7)(g) or (h), the taxpayer or the partnership, as the case may be, shall be deemed, for the purposes of applying subsection (2) to or in respect of the taxpayer, not to have acquired the property.Where in a particular taxation year a predecessor owner of a property disposes of it to a corporation in circumstances in which subsection (2) applies, for the purposes of applying subsection (2) to the predecessor owner for a taxation year ending after February 17, 1987 in respect of its acquisition of the property, the predecessor owner shall be deemed, after the disposition, never to have acquired the property except for the purposes of making a deduction under subsection (2) for the particular year.Where at any time a property is acquired by a person in circumstances in which subsection (2) does not apply, every person who was an original owner or predecessor owner of the property by reason of having disposed of the property before that time shall, for the purposes of applying this Part to or in respect of the person or any other person who after that time acquires the property, be deemed after that time not to be an original owner or predecessor owner of the property by reason of having disposed of the property before that time.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-502, s. 4; SOR/79-245, s. 2; SOR/80-418, s. 2; SOR/81-974, s. 3; SOR/85-174, s. 3; SOR/85-696, ss. 2, 3; SOR/86-1092, s. 7; SOR/90-113, s. 1; SOR/90-733, s. 1; SOR/91-79, s. 3; SOR/93-120, s. 1; SOR/94-686, ss. 48, 67(F), 78(F), 79(F), 81(F); SOR/99-179, s. 5; SOR/2001-187, s. 1
Mining Exploration Depletion
In computing a taxpayer’s income for a taxation year there may be deducted such amount as he may claim not exceeding the lesser ofthe amount, if any, by whichthe aggregate of25 per cent of his income for the year, computed in accordance with Part I of the Act without reference to paragraph 59(3.3)(f) thereof and on the assumption that no deduction were allowed under section 65 thereof, andthe amount, if any, included in computing his income for the year by virtue of paragraph 59(3.3)(f) of the Actexceedsthe aggregate of amounts deducted under sections 1201, 1202, 1207 and 1212 in computing his income for the year; andhis mining exploration depletion base as of the end of the year (before making any deduction under this subsection for the year).For the purposes of this section, mining exploration depletion base of a taxpayer as of a particular time means the amount by which the aggregate of33 1/3 per cent of the amount by whichthe aggregate of all amounts each of which was the stated percentage of an expenditure that is, or but for paragraph 66(12.61)(b) of the Act would be, incurred by the taxpayer after April 19, 1983 and before the particular time and each of which was a Canadian exploration expensedescribed in subparagraph 66.1(6) (a)(iii) of the Act, orthat would have been described in subparagraph 66.1(6) (a)(iv) or (v) of the Act if the references in those subparagraphs to “any of subparagraphs (i) to (iii.1)” were read as “subparagraph (iii)”,other than an expense described in clause (A) or (B) that wasan expense renounced by the taxpayer under subsection 66(10.1) or (12.6) of the Act,an amount that was a Canadian exploration and development overhead expense of the taxpayer,an amount that was in respect of financing, including any cost incurred prior to the commencement of carrying on a business, oran eligible expense within the meaning of the Canadian Exploration Incentive Program Act in respect of which the taxpayer, a partnership of which the taxpayer was a member or a principal-business corporation of which the taxpayer was a shareholder, has received, is deemed to have received, is entitled to receive or may reasonably be expected to receive at any time an incentive under that Act,exceedsthe aggregate of all amounts each of which is the stated percentage of an amount of assistance (within the meaning assigned by paragraph 66(15)(a.1) of the Act) that any person has received, is entitled to receive or, at any time, becomes entitled to receive in respect of an expense that would be described in subparagraph (i) if that subparagraph were read without reference to clause (C) thereof, other than such an amount in respect of an expense renounced under subsection 66(10.1) or (12.6) of the Actby a corporation in favour of the taxpayer, where the amount of that assistance is excluded from the aggregate in respect of which the expense is so renounced, orby the taxpayer, where the amount of that assistance is not excluded from the aggregate in respect of which the expense is so renounced, andwhere the taxpayer is a successor corporation, any amount required by paragraph (3)(a) to be added before the particular time in computing the taxpayer’s mining exploration depletion baseexceeds the aggregate ofall amounts each of which is an amount deducted by the taxpayer under subsection (1) in computing his income for a taxation year ending before the particular time; andwhere the taxpayer is a predecessor, all amounts required by paragraph (3)(b) to be deducted before the particular time in computing the taxpayer’s mining exploration depletion base.Subject to subsections 1202(5) and (6), where a corporation (in this section referred to as the “successor corporation”) has at any time (in this subsection referred to as the “time of acquisition”) after April 19, 1983 and in a taxation year (in this subsection referred to as the “transaction year”) acquired a property from another person (in this subsection referred to as the “predecessor”), the following rules apply:for the purpose of computing the mining exploration depletion base of the successor corporation as of any time after the time of acquisition, there shall be added an amount equal to the amount required by paragraph (b) to be deducted in computing the mining exploration depletion base of the predecessor; andfor the purpose of computing the mining exploration depletion base of the predecessor as of any time after the transaction year of the predecessor, there shall be deducted the amount, if any, by whichthe mining exploration depletion base of the predecessor immediately after the time of acquisition (assuming for this purpose that, in the case of an acquisition as a result of an amalgamation described in section 87 of the Act, the predecessor existed after the time of acquisition and no property was acquired or disposed of in the course of the amalgamation)exceedsthe amount, if any, deducted under subsection (1) in computing the income of the predecessor for the transaction year of the predecessor.[Repealed, SOR/91-79, s. 4]For greater certainty, where an expense incurred before a particular time is included in the aggregate calculated under subparagraph (2)(a)(i) in respect of a taxpayer and subsequent to the particular time any person becomes entitled to receive an amount of assistance (within the meaning assigned by paragraph 66(15)(a.1) of the Act) that is included in the aggregate calculated under subparagraph (2)(a)(ii), the stated percentage of the amount of assistance shall be included in the amounts referred to in subparagraph (2)(a)(ii) in respect of the taxpayer at the time the expense was incurred.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-974, s. 4; SOR/85-174, s. 4; SOR/85-696, ss. 2, 4; SOR/90-113, s. 2; SOR/90-733, s. 2; SOR/91-79, s. 4; SOR/94-686, ss. 78(F), 79(F)
Resource Profits
For the purposes of this Part, gross resource profits of a taxpayer for a taxation year means the amount, if any, by which the total ofthe amount, if any, by which the aggregate ofthe aggregate of amounts, if any, that would be included in computing the taxpayer’s income for the year by virtue of subsection 59(2) and paragraphs 59(3.2)(b) and 59.1(b) of the Act if subsection 59(2) were read without reference to subsection 64(1) therein, andthe amount, if any, by which the amount included in computing his income for the year by virtue of paragraph 59(3.2)(c) of the Act exceeds the proceeds of disposition of property described in clause 66(15)(c)(ii)(A) of the Act that became receivable in the year or a preceding taxation year and after December 31, 1982 to the extent that such proceeds have not been deducted in determining the amount under this subparagraph for a preceding taxation yearexceedsthe aggregate of amounts, if any, deducted in computing his income for the year by virtue of paragraph 59.1(a) and subsections 64(1.1) and (1.2) of the Act,the amount, if any, of the aggregate of his incomes for the year fromthe production of petroleum, natural gas, related hydrocarbons or sulphur fromoil or gas wells in Canada operated by the taxpayer, ornatural accumulations (other than mineral resources) of petroleum or natural gas in Canada operated by the taxpayer,the production and processing in Canada ofore, other than iron ore or tar sands ore, from mineral resources in Canada operated by him to any stage that is not beyond the prime metal stage or its equivalent,iron ore from mineral resources in Canada operated by him to any stage that is not beyond the pellet stage or its equivalent, andtar sands ore from mineral resources in Canada operated by him to any stage that is not beyond the crude oil stage or its equivalent,the processing in Canada ofore, other than iron ore or tar sands ore, from mineral resources in Canada not operated by him to any stage that is not beyond the prime metal stage or its equivalent,iron ore from mineral resources in Canada not operated by him to any stage that is not beyond the pellet stage or its equivalent, andtar sands ore from mineral resources in Canada not operated by him to any stage that is not beyond the crude oil stage or its equivalent,the processing in Canada ofore, other than iron ore or tar sands ore, from mineral resources outside Canada to any stage that is not beyond the prime metal stage or its equivalent,iron ore from mineral resources outside Canada to any stage that is not beyond the pellet stage or its equivalent, andtar sands ore from mineral resources outside Canada to any stage that is not beyond the crude oil stage or its equivalent,the processing in Canada of heavy crude oil recovered from an oil or gas well in Canada to any stage that is not beyond the crude oil stage or its equivalent, andCanadian field processing,the total of all amounts (other than an amount included because of paragraph (b) in computing the taxpayer’s gross resource profits for the year) each of which is an amount included in computing the taxpayer’s income for the year as a rental or royalty computed by reference to the amount or value of production from a natural accumulation of petroleum or natural gas in Canada, an oil or gas well in Canada or a mineral resource in Canada, andif the taxpayer owns all the issued and outstanding shares of the capital stock of a railway company throughout the year, the amount that may reasonably be considered to be the railway company’s income for its taxation year ending in the year from the transportation of such of the taxpayer’s ore as is described in clause (b)(ii)(A), (B) or (C),exceeds the aggregate of the taxpayer’s losses for the year from the sources described in paragraph (b), where the taxpayer’s incomes and losses are computed in accordance with the Act on the assumption that the taxpayer had during the year no incomes or losses except from those sources and was allowed no deductions in computing the taxpayer’s income for the year other thanamounts deductible under section 66 of the Act (other than amounts in respect of foreign exploration and development expenses) or subsection 17(2) or (6) or section 29 of the Income Tax Application Rules, for the year;the amounts deductible or deducted, as the case may be, under section 66.1, 66.2 (other than an amount that is in respect of a property described in clause 66(15)(c)(ii)(A) of the Act), 66.4, 66.5 or 66.7 (other than subsection (2) thereof) of the Act for the year; andany other deductions for the year that can reasonably be regarded as applicable to the sources of income described in paragraph (b) or (b.1), other than a deduction under paragraph 20(1)(ss) or (tt) of the Act or section 1201 or subsection 1202(2), 1203(1), 1207(1) or 1212(1).For the purposes of this Part, resource profits of a taxpayer for a taxation year means the amount, if any, by which the taxpayer’s gross resource profits for the year exceeds the total ofall amounts deducted in computing the taxpayer’s income for the year other thanan amount deducted in computing the taxpayer’s gross resource profits for the year,an amount deducted under any of section 8, paragraphs 20(1)(ss) and (tt), sections 60 to 64 and subsections 66(4), 66.7(2) and 104(6) and (12) of the Act and section 1201 and subsections 1202(2), 1203(1), 1207(1) and 1212(1) in computing the taxpayer’s income for the year,an amount deducted under section 66.2 of the Act in computing the taxpayer’s income for the year, to the extent that it is attributable to any right, licence or privilege to store underground petroleum, natural gas or related hydrocarbons in Canada,an amount deducted in computing the taxpayer’s income for the year from a business, or other source, that does not include any resource activity of the taxpayer, andan amount deducted in computing the taxpayer’s income for the year, to the extent that the amountrelates to an activitythat is not a resource activity of the taxpayer, andthat isthe production, processing, manufacturing, distribution, marketing, transportation or sale of any property,carried out for the purpose of earning income from property, orthe rendering of a service by the taxpayer to another person for the purpose of earning income of the taxpayer, anddoes not relate to a resource activity of the taxpayer,all amounts each of which is the amount, if any, by whichthe amount that would have been charged to the taxpayer by a person or partnership with whom the taxpayer was not dealing at arm’s length if the taxpayer and that person or partnership had been dealing at arm’s lengthfor the use after March 6, 1996 and in the year of a property (other than money) owned by that person or partnership, orfor the provision after March 6, 1996 and in the year by that person or partnership of a service to the taxpayerexceeds the total ofthe amount charged to the taxpayer for the use of that property or the provision of that service in that period, andthe portion of the amount described in subparagraph (i) that, if it had been charged, would not have been deductible in computing the taxpayer’s resource profits, andwhere the year ends after February 21, 1994, all amounts added under subsection 80(13) of the Act in computing the taxpayer’s gross resource profits for the year.For the purposes of paragraph (1.1)(b) and this subsection,a taxpayer is considered not to deal at arm’s length with a partnership where the taxpayer does not deal at arm’s length with any member of the partnership;a partnership is considered not to deal at arm’s length with another partnership where any member of the first partnership does not deal at arm’s length with any member of the second partnership;where a taxpayer is a member, or is deemed by this paragraph to be a member, of a partnership that is a member of another partnership, the taxpayer is deemed to be a member of the other partnership; andthe provision of a service to a taxpayer does not include the provision of a service by an individual in the individual’s capacity as an employee of the taxpayer.For greater certainty, for the purposes of this section, in computing the income or loss of a trust for a taxation year from the sources described in paragraphs (1)(b) and (b.1), no deduction shall be made in respect of amounts deductible by the trust pursuant to subsection 104(6) or (12) of the Act.A taxpayer’s income or loss from a source described in paragraph (1)(b) does not includeany income or loss derived from transporting, transmitting or processing (other than processing described in clause (1)(b)(ii)(C), (iii)(C) or (iv)(C) or subparagraph (1)(b)(v) or (vi)) petroleum, natural gas or related hydrocarbons or sulphur from a natural accumulation of petroleum or natural gas;any income or loss arising because of the application of paragraph 12(1)(z.1) or (z.2) or section 107.3 of the Act; andany income or loss that can reasonably be attributable to a service rendered by the taxpayer (other than processing described in subparagraph (1)(b)(iii), (iv), (v) or (vi) or activities carried out by the taxpayer as a coal mine operator).[Repealed, SOR/2007-19, s. 3][Repealed, SOR/96-451, s. 2][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-502, s. 5; SOR/79-245, s. 3; SOR/80-132, s. 1; SOR/81-158, s. 1; SOR/81-974, s. 5; SOR/85-174, s. 5; SOR/90-113, s. 3; SOR/91-79, s. 5; SOR/94-686, s. 48; SOR/96-451, s. 2; SOR/99-179, s. 6; SOR/2007-19, s. 3
Earned Depletion Base
For the purposes of this Part earned depletion base of a taxpayer as of a particular time means the amount by which 33 1/3 per cent of the aggregate ofall amounts, in respect of expenditures (other than expenditures to acquire property under circumstances that entitled the taxpayer to a deduction under section 1202 or would so entitle the taxpayer if the amounts referred to in paragraphs 1202(2)(a) and (b) were sufficient for the purpose) incurred by the taxpayer after November 7, 1969 and before the particular time, each of which wasa Canadian exploration and development expense or would have been such an expense if it had been incurred after 1971 and was actually incurred before May 7, 1974, other thana cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian exploration expense or an exploration, prospecting and development expense, as the case may be, of the taxpayer,the cost to the taxpayer of any Canadian resource property acquired by the taxpayer,a Canadian exploration and development expense that was incurred after a mine had come into production in reasonable commercial quantities and may reasonably be considered to be related to the mine or to a potential or actual extension thereof,an expense that would have been described in clause (C) if it had been incurred after 1971,an expense renounced by the taxpayer under subsection 66(10) of the Act or subsection 29(7) of the Income Tax Application Rules,an amount that, by virtue of subparagraph 66(15)(b)(iv) of the Act, was a Canadian exploration and development expense or would have been such an expense if it had been incurred after 1971, if such amount was a cost or expense referred to in clause (A), (B), (C), (D) or (E) that was incurred by an association, partnership or syndicate referred to in that subparagraph, oran amount that, by virtue of subparagraph 66(15)(b)(v) of the Act, was a Canadian exploration and development expense or would have been such an expense if it had been incurred after 1971, if such amount was a cost or expense referred to in clause (A), (B), (C), (D) or (E) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph,the stated percentage of a Canadian exploration expense other thana cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian exploration expense of the taxpayer,an expense renounced by the taxpayer under subsection 66(10.1) of the Act,an amount that, by virtue of subparagraph 66.1(6)(a)(iv) of the Act, was a Canadian exploration expense, if such amount was an expense referred to in clause (A), (B), (E), (F), (G) or (H) that was incurred by a partnership referred to in that subparagraph,an amount that, by virtue of subparagraph 66.1(6)(a)(v) of the Act, was a Canadian exploration expense, if such amount was an expense referred to in clause (A), (B), (E), (F), (G), or (H) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph,an amount described in clause 66.1(6)(a)(ii)(B) or (ii.1) (B) of the Act,an amount that was a Canadian exploration and development overhead expense of the taxpayer,an amount that was a Canadian oil and gas exploration expense of the taxpayer, oran expense described in subparagraph 66.1(6)(a)(iii) of the Act incurred after April 19, 1983,a Canadian development expense incurred before 1981 other thana cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian development expense of the taxpayer,an expense renounced by the taxpayer under subsection 66(10.2) of the Act,an amount referred to in subparagraph 66.2(5)(a)(iii) of the Act,an amount that, by virtue of subparagraph 66.2(5)(a)(iv) of the Act, was a Canadian development expense, if such amount was an expense referred to in clause (A), (B) or (C) that was incurred by a partnership referred to in that subparagraph, oran amount that, by virtue of subparagraph 66.2(5)(a)(v) of the Act, was a Canadian development expense, if such amount was an expense referred to in clause (A), (B) or (C) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph,the stated percentage of the capital cost to the taxpayer of any processing property acquired by the taxpayer principally for the purpose ofprocessing in Canadaore, other than iron ore or tar sands ore, from a qualified resource to any stage that is not beyond the prime metal stage or its equivalent,iron ore from a qualified resource to any stage that is not beyond the pellet stage or its equivalent, ortar sands ore from a qualified resource to any stage that is not beyond the crude oil stage or its equivalent, orprocessing in Canadaore, other than iron ore or tar sands ore, from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the prime metal stage or its equivalent,iron ore from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the pellet stage or its equivalent, ortar sands ore from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the crude oil stage or its equivalent,where the taxpayer is a corporation that incurred a Canadian oil and gas exploration expense in respect of conventional lands in a calendar year after 1980 and before 1984, the specified percentage for that year of such expense to the extent that it is not an amount or expense referred to in clause (ii)(A), (B) or (F) or an expense that would be referred to in clause (ii)(C) or (D) if the references in those clauses to “clause (A), (B), (E), (F), (G) or (H)” were read as “clause (A), (B) or (F)”, orwhere the taxpayer is a corporation,the specified percentage in respect of a Canadian oil and gas exploration expense in respect of non-conventional lands incurred in a calendar year after 1980 and before 1985 to the extent that it is not an amount or expense referred to in clause (ii)(A), (B) or (F) or an expense that would be referred to in clause (ii)(C) or (D) if the references in those clauses to “clause (A), (B), (E), (F), (G) or (H)” were read as “clause (A), (B) or (F)”,the stated percentage of a Canadian development expense incurred after 1980 in respect of a qualified tertiary oil recovery project of the taxpayer to the extent that such expense is notan amount or expense described in any of clauses (iii)(A) to (E),an amount that was a Canadian exploration and development overhead expense of the taxpayer, oran eligible expense within the meaning of the Canadian Exploration and Development Incentive Program Act in respect of which the taxpayer, a partnership of which the taxpayer was a member, a principal-business corporation of which the taxpayer was a shareholder or a joint exploration corporation of which the taxpayer was a shareholder corporation has received, is entitled to receive or may reasonably be expected to receive at any time an incentive under that Act,the stated percentage of a Canadian exploration expense incurred after 1981 in respect of a qualified tertiary oil recovery project of the taxpayer thatwould be referred to in subparagraph 66.1(6)(a)(ii) or (ii.1) of the Act if subparagraph 66.1(6)(a)(ii) were read without reference to clause (B) thereof, orwould be referred to in subparagraph 66.1(6)(a)(iv) or (v) of the Act if the Act were read without reference to clause 66.1(6)(a)(ii)(B) and subparagraphs 66.1(6)(a)(i), (i.1), (ii.2), (iii) and (iii.1),other than the portion of such expense referred to in subclause (I) or (II) that isdescribed in any of clauses (ii)(A) to (D) and (F),included in the amount determined under subparagraph (v) or clause (vi)(A),described in subclause (B)(III), oran eligible expense within the meaning of the Canadian Exploration Incentive Program Act in respect of which the taxpayer, a partnership of which the taxpayer was a member or a principal-business corporation of which the taxpayer was a shareholder corporation, has received, is entitled to receive or may reasonably be expected to receive at any time an incentive under that Act,the stated percentage of the capital cost to it of property that is tertiary recovery equipment, andthe stated percentage of the capital cost to it of property that is, or but for Class 41 of Schedule II would be, included in Class 10 in Schedule II by virtue of paragraph (u) of the description of that Class, other than the capital cost to it of property that had, before the property was acquired by it, been used for any purpose whatever by any person with whom it was not dealing at arm’s length,all amounts, in respect of expenditures (other than expenditures referred to in paragraph (a) or expenditures to acquire property under circumstances that entitled the taxpayer to a deduction under section 1202 or would so entitle the taxpayer if the amounts referred to in paragraphs 1202(2)(a) and (b) were sufficient for the purpose) incurred by the taxpayer after May 8, 1972 and before the particular time, each of which was the stated percentage of the capital cost to the taxpayer of property that is or, but for Class 41, would be included in Class 10 in Schedule II because of paragraph (k) of the description of that Class and that was acquired for the purpose of processing in Canadaore (other than iron ore or tar sands ore), after its extraction from a mineral resource, to any stage that is not beyond the prime metal stage or its equivalent,iron ore, after its extraction from a mineral resource, to any stage that is not beyond the pellet stage or its equivalent, ortar sands ore, after its extraction from a mineral resource, to any stage that is not beyond the crude oil stage or its equivalent,other than the capital cost to him of property that had, before the property was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length,all amounts, in respect of expenditures (other than expenditures referred to in paragraph (a) or (b) or expenditures to acquire property under circumstances that entitled the taxpayer to a deduction under section 1202 or would so entitle the taxpayer if the amounts referred to in paragraphs 1202(2)(a) and (b) were sufficient for the purpose) incurred by the taxpayer before the particular time, each of which was the stated percentage of the capital cost to the taxpayer of property (other than property that had, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length) that is included in Class 28 or paragraph (a) of Class 41, in Schedule II, other than property so includedby virtue of the first reference in Class 28 to paragraph (l) of Class 10 in Schedule II, where the property was acquired by the taxpayer before November 17, 1978,by virtue of the reference in Class 28 to paragraph (m) of Class 10 in Schedule II,that is bituminous sands equipment acquired by an individual, orthat is bituminous sands equipment acquired by a corporation before 1981,all expenditures (other than expenditures referred to in paragraph (a), (b) or (c)) each of which was incurred by him before November 8, 1969 relating to a mine that came into production in reasonable commercial quantities before that date and that were incurred for the purpose ofexploration in respect of, ordevelopment of the mine for the purpose of gaining or producing income from the extraction of material from,a bituminous sands deposit, an oil sands deposit or an oil shale deposit,three times the total of all amounts each of which is an amount equal to the lesser ofthe amount that would be determined under subsection 1210(1) in computing the taxpayer’s income for a taxation year that ends before the particular time, if the amount determined for C under that subsection were nil, andthe amount determined for C under subsection 1210(1) in respect of the taxpayer for that year, andthree times the aggregate of all amounts each of which is the specified amount determined under subsection 1202(4) in respect of the taxpayer for a taxation year ending after February 17, 1987 and before the particular time,exceeds the aggregate ofall amounts deducted by the taxpayer under section 1201 in computing his income for all taxation years ending after May 6, 1974 and before the particular time;33 1/3 per cent of the aggregate of all amounts, each of which is the stated percentage of a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that wasincluded in the capital cost to him of depreciable property described in subparagraph (a)(iv), clause (a)(vi)(C) or (D) or paragraph (b) or (c), oran expenditure described in paragraph (d);33 1/3 per cent of the aggregate of all amounts, each of which is an amountthat became receivable by the taxpayer after April 28, 1978 and before the earlier of December 12, 1979 and the particular time, andin respect of which the consideration given by the taxpayer therefor was a property (other than a share, or a property that would have been a Canadian resource property if it had been acquired by the taxpayer at the time the consideration was given) or services, the cost of which may reasonably be regarded as having been primarily an expenditure that was added in computingthe taxpayer’s earned depletion base by reason of subparagraph (a)(i), (ii) or (iii) or paragraph (d), orthe earned depletion base of an original owner of a property by reason of subparagraph (a)(i), (ii) or (iii) or paragraph (d) as it applied to the original owner, where the taxpayer acquired the property in circumstances in which subsection 1202(2) applies,33 1/3 per cent of the aggregate of all amounts, each of which isan amount in respect of a disposition of property (other than a disposition of property that had been used by the taxpayer to any person with whom the taxpayer was not dealing at arm’s length) of the taxpayer after April 28, 1978 and before the earlier of December 12, 1979 and the particular time, the capital cost of which was added in computingthe taxpayer’s earned depletion base by reason of subparagraph (a)(iv) or paragraph (b) or (c), orthe earned depletion base of an original owner of a property by reason of subparagraph (a)(iv) or paragraph (b) or (c) as it applied to the original owner, where the taxpayer acquired the property in circumstances in which subsection 1202(2) applies, andequal to the lesser ofthe proceeds of disposition of the property, andthe capital cost of the property to the taxpayer, where clause (i)(A) applies, or the original owner, where clause (i)(B) applies, computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business,any amount required by paragraph 1202(2)(b) (as it read in its application to taxation years ending before February 18, 1987) or paragraph 1202(3)(a) to be deducted at or before the particular time in computing the taxpayer’s earned depletion base,33 1/3 per cent of the aggregate of all amounts, each of which is in respect of an amount of assistance or benefit in respect of Canadian exploration expenses or Canadian development expenses or that may reasonably be related to Canadian exploration activities or Canadian development activities, whether such amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit thatthe taxpayer before the particular time has received or was entitled to receive, or that the taxpayer at or after the particular time becomes entitled to receive, oran original owner or predecessor owner of a property before the particular time has received or was entitled to receive, or at or after the particular time becomes entitled to receive, where the original owner or the predecessor owner received, became entitled to receive or becomes entitled to receive that amountat or after the time at which the property was acquired by the taxpayer in circumstances in which subsection 1202(2) applies, andbefore the time at which the taxpayer becomes a predecessor owner of the property,and that is equal towhere the assistance or benefit was in respect of an amount added by reason of subparagraph (a)(ii) or clause (a)(vi)(B) or (B.1) in computingthe earned depletion base of the taxpayer (other than such portion thereof included in determining an amount described in paragraph 1202(2)(a) before the particular time), orthe portion of the earned depletion base of the original owner included in determining an amount described in paragraph 1202(2)(a) before the particular time,the stated percentage of the amount of the assistance or benefit, andwhere the assistance or benefit was in respect of an amount of Canadian oil and gas exploration expense added by reason of subparagraph (a)(v) or clause (a)(vi)(A) in computingthe earned depletion base of the taxpayer (other than such portion thereof included in determining an amount described in paragraph 1202(2)(a) before the particular time), orthe portion of the earned depletion base of the original owner included in determining an amount described in paragraph 1202(2)(a) before the particular time,the amount equal to the product obtained when the amount of the assistance or benefit is multiplied by the specified percentage in respect of the expense for the calendar year in which the taxpayer or the original owner, as the case may be, incurred the expense, andthe amount, if any, by whichthe aggregate of all amounts that would be determined under paragraphs 1212(3)(d) to (i)exceedsthe aggregate of all amounts that would be determined under paragraphs 1212(3) (a) to (c)in computing his supplementary depletion base at the particular time.Where an expense is incurred before the particular time referred to in subsection (1) and a person at or after the particular time becomes entitled to receive an amount of assistance or benefit in respect of the expense, the amount of such assistance or benefit shall be included in “the amount of the assistance or benefit” referred to in subparagraphs (1)(j)(iii) and (iv) as of the particular time.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 4; SOR/78-493, s. 2(F); SOR/78-502, s. 6; SOR/79-245, s. 4; SOR/80-418, s. 3; SOR/81-974, s. 6; SOR/85-174, s. 6; SOR/85-696, s. 2; SOR/90-113, s. 4; SOR/90-733, s. 3; SOR/91-79, s. 6; SOR/94-686, ss. 48, 78(F), 79(F); SOR/96-451, s. 3
Interpretation
In this Part,bituminous sands equipment means property of a taxpayer thatis included in Class 28 or in paragraph (a) of Class 41 in Schedule II, other than property so includedby virtue of the first reference in Class 28 to paragraph (l) of Class 10 in Schedule II, where the property was acquired by the taxpayer before November 17, 1978, orby virtue of the reference in Class 28 to paragraph (m) of Class 10 in Schedule II, andwas acquired by the taxpayer after April 10, 1978 principally for the purpose of gaining or producing income from one or more mines, each of which is a location in a bituminous sands deposit, oil sands deposit or oil shale deposit from which material is extracted; (matériel d’exploitation de sables bitumineux)Canadian exploration and development overhead expense of a taxpayer means a Canadian exploration expense or a Canadian development expense of the taxpayer made or incurred after 1980 that is not a Canadian renewable and conservation expense (in this definition having the meaning assigned by subsection 66.1(6) of the Act) nor a taxpayer’s share of a Canadian renewable and conservation expense incurred by a partnership andthat was in respect of the administration, management or financing of the taxpayer,that was in respect of the salary, wages or other remuneration or related benefits paid in respect of a person employed by the taxpayer whose duties were not all or substantially all directed towards exploration or development activities,that was in respect of the upkeep or maintenance of, taxes or insurance in respect of, or rental or leasing of, property other than property all or substantially all of the use of which by the taxpayer was for the purposes of exploration or development activities, orthat may reasonably be regarded as having been in respect ofthe use of or the right to use any property in which any person who was connected with the taxpayer had an interest,compensation for the performance of a service for the benefit of the taxpayer by any person who was connected with the taxpayer, orthe acquisition of any materials, parts or supplies from any person who was connected with the taxpayerto the extent that the expense exceeds the least of amounts, each of which was the aggregate of the costs incurred by a person who was connected with the taxpayerin respect of the property,in respect of the performance of the service, orin respect of the materials, parts or supplies; (frais généraux d’exploration et d’aménagement au Canada)Canadian oil and gas exploration expense, of a taxpayer, means an outlay or expense that is made or incurred after 1980 and that would be a Canadian exploration expense, as defined in subsection 66.1(6) of the Act, of the taxpayer (other than an outlay or expense in respect of a qualified tertiary oil recovery project that is a Canadian exploration expense of the taxpayer because of subparagraph (c)(ii) or (d)(ii) of that definition) ifthat definition were read without reference to its paragraphs (f) to (g.4),the reference in paragraph (h) of that definition to “any of paragraphs (a) to (d) and (f) to (g.4)” were read as “any of paragraphs (a) to (e)”, andthe reference in paragraph (i) of that definition to “any of paragraphs (a) to (g)” were read as “any of paragraphs (a) to (e)”; (frais d’exploration pétrolière et gazière au Canada)coal mine operator means a person who undertakes all or substantially all of the activities involved in the production of coal from a resource; (exploitant de mine de charbon)conventional lands means lands situated in Canada other than non-conventional lands; (terres conventionnelles)disposition of property has the meaning assigned by paragraph 13(21)(c) of the Act; (disposition de biens)enhanced recovery equipment means property of a taxpayer thatis included in Class 10 in Schedule II by virtue of paragraph (j) of the description of that Class, andwas acquired by the taxpayer after April 10, 1978 and before 1981 for use in the production of oil, from a reservoir or a deposit of bituminous sand, oil sand or oil shale in Canada operated by the taxpayer, that is incremental to oil that would be recovered using primary recovery techniques alone,other than propertyused by the taxpayer as part of a primary recovery process prior to the use described in paragraph (b),that had, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length, orthat has been used by any person before April 11, 1978 in the production of oil, from a reservoir in Canada, that is incremental to oil that would be recovered using primary recovery techniques alone; (matériel amélioré de récupération)exempt partnership[Repealed, SOR/2007-19, s. 4]exporting resource means, in relation to a particular processing property of a taxpayer, a resource the ore or any portion thereof produced from which during the year immediately preceding the day on which the property was acquired by the taxpayer was ordinarily processed outside Canada to any stage that is not beyond the prime metal stage or its equivalent; (ressource destinée à l’exportation)mine means any location where material is extracted from a resource but does not include a well for the extraction of material from a deposit of bituminous sand, oil sand or oil shale; (mine)non-conventional lands means lands that belong to Her Majesty in right of Canada, or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources, situated inthe Yukon Territory, the Northwest Territories or Sable Island, orthose submarine areas, not within a province, adjacent to the coast of Canada and extending throughout the natural prolongation of the land territory of Canada to the outer edge of the continental margin or to a distance of two hundred nautical miles from the baselines from which the breadth of the territorial sea of Canada is measured, whichever is the greater; (terres non conventionnelles)ore includes ore from a mineral resource that has been processed to any stage that is prior to the prime metal stage or its equivalent; (minerai)original owner of a property means a personwho owned the property and disposed of it to a corporation that acquired it in circumstances in which subsection 1202(2) applies, or would apply if the corporation had continued to own the property, to the corporation in respect of the property, andwho would, but for paragraph 1202(2)(b) (as it read in its application to taxation years ending before February 18, 1987) or paragraph 1202(3)(a), as the case may be, be entitled in computing the person’s income for a taxation year ending after the person disposed of the property to a deduction under section 1201 in respect of expenditures that were incurred by the person before the person disposed of the property; (propriétaire obligé)predecessor owner of a property means a corporationthat acquired the property in circumstances in which subsection 1202(2) applies, or would apply if the corporation had continued to own the property, to the corporation in respect of the property,that disposed of the property to another corporation that acquired it in circumstances in which subsection 1202(2) applies, or would apply if the other corporation had continued to own the property, to the other corporation in respect of the property, andthat would, but for subsection 1202(10), be entitled in computing its income for a taxation year after it disposed of the property to a deduction under subsection 1202(2) in respect of expenditures incurred by an original owner of the property; (propriétaire antérieur)primary recovery means the recovery of oil from a reservoir as a result of utilizing the natural energy of the reservoir to move the oil toward a producing well; (récupération primaire)proceeds of disposition of property has the meaning assigned by paragraph 13(21)(d) of the Act; (produit de la disposition)processing property means propertythat is included in Class 10 in Schedule II because of paragraph (g) of the description of that Class or would be so included if that paragraph were read without reference to subparagraph (ii) of that paragraph and Schedule II were read without reference to Class 41, orthat is included in Class 10 in Schedule II because of paragraph (k) of the description of that Class or would be so included if that paragraph were read without reference to the words following subparagraph (ii) of that paragraph and Schedule II were read without reference to Class 41,other than property that had, before it was acquired by a taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length; (biens servant au traitement)production royalty[Repealed, SOR/2007-19, s. 4]qualified resource means, in relation to a particular processing property of a taxpayer, a resource that, within a reasonable time after the property was acquired by him,came into production in reasonable commercial quantities, orwas the subject of a major expansion whereby the greatest designed capacity, measured in weight of input of ore, of the mill that processed ore from the resource was not less than 25% greater in the year immediately following the expansion than it was in the year immediately preceding the expansion; (ressource admissible)qualified tertiary oil recovery project in respect of an expense incurred in a taxation year means a project that uses a method (including a method that uses carbon dioxide miscible, hydrocarbon miscible, thermal or chemical processes but not including a secondary recovery method) that is designed to recover oil from an oil well in Canada that is incremental to oil that would be recovered therefrom by primary recovery and a secondary recovery method, ifa specified royalty provision applies in the year or in the immediately following taxation year in respect of the production, if any, or any portion thereof from the project or in respect of the ownership of property to which such production relates,the project is on a reserve within the meaning of the Indian Act, orthe project is located in the Province of Ontario; (projet qualifié de récupération tertiaire du pétrole)resource means any mineral resource in Canada; (ressource)resource activity of a taxpayer meansthe production by the taxpayer of petroleum, natural gas or related hydrocarbons or sulphur froman oil or gas well in Canada, ora natural accumulation (other than a mineral resource) of petroleum or natural gas in Canada,the production and processing in Canada by the taxpayer or the processing in Canada by the taxpayer ofore (other than iron ore or tar sands ore) from a mineral resource in Canada to any stage that is not beyond the prime metal stage or its equivalent,iron ore from a mineral resource in Canada to any stage that is not beyond the pellet stage or its equivalent, andtar sands ore from a mineral resource in Canada to any stage that is not beyond the crude oil stage or its equivalent,the processing in Canada by the taxpayer of heavy crude oil recovered from an oil or gas well in Canada to any stage that is not beyond the crude oil stage or its equivalent,Canadian field processing carried on by the taxpayer,the processing in Canada by the taxpayer ofore (other than iron ore or tar sands ore) from a mineral resource outside Canada to any stage that is not beyond the prime metal stage or its equivalent,iron ore from a mineral resource outside Canada to any stage that is not beyond the pellet stage or its equivalent, andtar sands ore from a mineral resource outside Canada to any stage that is not beyond the crude oil stage or its equivalent, orthe ownership by the taxpayer of a right to a rental or royalty computed by reference to the amount or value of production from a natural accumulation of petroleum or natural gas in Canada, an oil or gas well in Canada or a mineral resource in Canada,and, for the purposes of this definition,the production of a substance by a taxpayer includes exploration and development activities of the taxpayer with respect to the substance, whether or not extraction of the substance has begun or will ever begin,the production or the processing, or the production and processing, of a substance by a taxpayer includes activities performed by the taxpayer that are ancillary to, or in support of, the production or the processing, or the production and processing, of that substance by the taxpayer,the production or processing of a substance by a taxpayer includes an activity (including the ownership of property) that is undertaken before the extraction of the substance and that is undertaken for the purpose of extracting or processing the substance,the production or the processing, or the production and processing, of a substance by a taxpayer includes activities that the taxpayer undertakes as a consequence of the production or the processing, or the production and processing, of that substance, whether or not the production, the processing or the production and processing of the substance has ceased, andnotwithstanding paragraphs (a) to (i), the production, the processing or the production and processing of a substance does not include any activity of a taxpayer that is part of a source described in paragraph 1204(1)(b), wherethe activityis the transporting, transmitting or processing (other than processing described in subparagraph (b)(iii), paragraph (c) or (c.1) or subparagraph (d)(iii)) of petroleum, natural gas or related hydrocarbons or of sulphur, orcan reasonably be attributed to a service rendered by the taxpayer, andrevenues derived from the activity are not taken into account in computing the taxpayer’s gross resource profits; (activité extractive)secondary recovery method means a method to recover from a reservoir oil that is incremental to oil that would be recovered therefrom by primary recovery, by supplying energy to supplement or replace the natural energy of the reservoir through the use of technically proven methods, including waterflooding; (méthode de récupération secondaire)specified development well[Repealed, SOR/85-174, s. 7]specified percentage for a calendar yearin respect of a Canadian oil and gas exploration expense of a taxpayer for that year incurred in respect of conventional lands means,for the 1981 calendar year, 100 per cent,for the 1982 calendar year, 60 per cent, andfor the 1983 calendar year, 30 per cent, andin respect of a Canadian oil and gas exploration expense of a taxpayer for that year incurred in respect of non-conventional lands means,for the 1981 and 1982 calendar years, 100 per cent,for the 1983 calendar year, 60 per cent, andfor the 1984 calendar year, 30 per cent; (pourcentage désigné)specified property of a person means all or substantially all of the property used by the person in carrying on in Canada such of the businesses described in subparagraphs 66(15)(h)(i) to (vii) of the Act as were carried on by the person; (biens déterminés)specified royalty[Repealed, SOR/2007-19, s. 4]stated percentage meanswhere the taxpayer is an individual other than a trust, in respect of subparagraph 1203(2)(a)(i),100 per cent in respect of an expenditure incurred before 1989,50 per cent in respect of an expenditure incurred after 1988 and before 1990, and0 per cent in respect of an expenditure incurred after 1989,in respect of subparagraph 1203(2)(a)(i) (where paragraph (a) is not applicable) and paragraphs 1205(1)(a), (b), (c) and (f)100 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital before July 1, 1988,50 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital after June 30, 1988 and before 1990, and0 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital after 1989,where the taxpayer is an individual other than a trust, in respect of subparagraph 1203(2)(a)(ii) and subsection 1203(4),100 per cent in respect of any assistance that relates to expenditures incurred before 1989,50 per cent in respect of any assistance that relates to expenditures incurred after 1988 and before 1990, and0 per cent in respect of any assistance that relates to expenditures incurred after 1989, andin respect of subparagraph 1203(2)(a)(ii) (if paragraph (c) is not applicable), subsection 1203(4) (if paragraph (c) is not applicable) and subparagraph 1205(1)(j)(iii),100 per cent in respect of any assistance or benefit that relates to expenditures incurred before July 1, 1988,50 per cent in respect of any assistance or benefit that relates to expenditures incurred after June 30, 1988 and before 1990, and0 per cent in respect of any assistance or benefit that relates to expenditures incurred after 1989; (pourcentage indiqué)tar sands ore means ore extracted, other than through a well, from a mineral resource that is a deposit of bituminous sand, oil sand or oil shale; (minerai de sables asphaltiques)tertiary recovery equipment means property of a taxpayer thatis, or but for Class 41 in Schedule II would be, included in Class 10 in Schedule II by virtue of paragraph (j) of the description of that Class,was acquired by the taxpayer after 1980 for use in a qualified tertiary oil recovery project,other than propertyused by the taxpayer for another use prior to the use described in paragraph (b), orthat had, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length. (matériel de récupération tertiaire)In this Part, joint exploration corporation, principal-business corporation, production from a Canadian resource property, reserve amount and shareholder corporation have the meanings assigned by subsection 66(15) of the Act.For the purposes of sections 1201 to 1209 and 1212, where at the end of a fiscal period of a partnership, a taxpayer was a member thereofthe resource profits of the partnership for the fiscal period, to the extent of the taxpayer’s share thereof, shall be included in computing his resource profits for his taxation year in which the fiscal period ended;any property acquired or disposed of by the partnership shall be deemed to have been acquired or disposed of by the taxpayer to the extent of his share of thereof;any property deemed by paragraph (b) to have been acquired or disposed of by the taxpayer shall be deemed to have been acquired or disposed of by him on the day the property was acquired or disposed of by the partnership;any amount that has become receivable by the partnership and in respect of which the consideration given by the partnership therefor was property (other than property referred to in paragraph 59(2)(a), (c) or (d) of the Act or a share or interest therein or right thereto) or services, all or part of the original cost of which to the partnership may reasonably be regarded primarily as an exploration or development expense of the taxpayer, shall be deemed to be an amount receivable by the taxpayer to the extent of his share thereof, and the consideration so given by the partnership shall, to the extent of the taxpayer’s share thereof, be deemed to have been given by the taxpayer for the amount deemed to be receivable by him;any expenditure incurred or deemed to have been incurred by the partnership shall be deemed to have been incurred by the taxpayer to the extent of the taxpayer’s share thereof; andany amount or expenditure deemed by paragraph (d) or (e) to have been receivable or incurred, as the case may be, by the taxpayer shall be deemed to have become receivable or been incurred, as the case may be, by the taxpayer on the day the amount became receivable or the expenditure was incurred or deemed to have been incurred by the partnership.For the purposes of sections 1201 to 1203, 1205, 1217 and 1218, where a taxpayer was a member of a partnership at the end of a fiscal period of the partnership, the taxpayer shall be deemed to receive or to become entitled to receive any amount of assistance or benefit, whether such amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit, that the partnership at any time receives or becomes entitled to receive in respect of expenses incurred in that fiscal period of the partnership, to the extent of,where the partnership in the fiscal period receives or becomes entitled to receive the amount, the taxpayer’s share thereof, orwhere the partnership after the fiscal period becomes entitled to receive the amount, what would have been the taxpayer’s share thereof if the partnership had in the fiscal period received or become entitled to receive the amount,and the time at which the taxpayer is deemed to receive or become entitled to receive such share of the amount shall be the time that the partnership receives or becomes entitled to receive the amount.Where an expense incurred after November 7, 1969 that was a Canadian exploration and development expense or that would have been such an expense if it had been incurred after 1971 (other than an amount included therein that is in respect of financing or the cost of any Canadian resource property acquired by a joint exploration corporation or any property acquired by a joint exploration corporation that would have been a Canadian resource property if it had been acquired after 1971), a Canadian exploration expense (other than an amount included therein that is in respect of financing) or a Canadian development expense (other than an amount included therein that is in respect of financing or an amount referred to in subparagraph 66.2(5)(a)(iii) of the Act) has been renounced in favour of a taxpayer and was deemed to be an expense of the taxpayer for the purposes of subsection 66(10), (10.1) or (10.2) of the Act or subsection 29(7) of the Income Tax Application Rules, the expense shallfor the purposes of sections 1203 and 1205, be deemed to have been such an expense incurred by the taxpayer at the time the expense was incurred by the joint exploration corporation; andfor the purposes of sections 1204 and 1210 and paragraphs 1217(2)(e) and 1218(2)(e), be deemed to have been such an expense incurred by the taxpayer at the time it was deemed to have been incurred by the taxpayer for the purposes of subsection 66(10), (10.1) or (10.2) of the Act or subsection 29(7) of the Income Tax Application Rules, as the case may be.An expense that is a Canadian exploration and development overhead expense of the joint exploration corporation referred to in subsection (4), or would be such an expense if the references to “connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “connected with the shareholder corporation in favour of whom the expense was renounced for the purposes of subsection 66(10.1) or (10.2) of the Act”, that may reasonably be considered to be included in a Canadian exploration expense or Canadian development expense that is deemed by subsection (4) to be a Canadian exploration expense or Canadian development expense of the shareholder corporation, shall be deemed to be a Canadian exploration and development overhead expense of the shareholder corporation incurred by it at the time the expense was deemed by subsection (4) to have been incurred by it and shall be deemed at and after that time not to be a Canadian exploration and development overhead expense incurred by the joint exploration corporation.For the purposes of paragraphs 66(12.6)(b), (12.601)(d) and (12.62)(b) of the Act, a prescribed Canadian exploration and development overhead expense of a corporation isa Canadian exploration and development overhead expense of the corporation;an expense that would be a Canadian exploration and development overhead expense of the corporation if the references to “connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “connected with the person to whom the expense is renounced under subsection 66(12.6), (12.601) or (12.62) of the Act”; andan expense that would be a Canadian exploration and development overhead expense of the corporation if the references to “person who was connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “person to whom the expense is renounced under subsection 66(12.6), (12.601) or (12.62) of the Act”.For the purposes of subsections (4.2) and (5), a partnership shall be deemed to be a person and its taxation year shall be deemed to be its fiscal period.For the purposes of subsection (6) and the definition Canadian exploration and development overhead expense in subsection (1),a person and a particular corporation are connected with each other ifthe person and the particular corporation are not dealing at arm’s length,the person has an equity percentage in the particular corporation that is not less than 10 per cent, orthe person is a corporation in which another person has an equity percentage that is not less than 10 per cent and the other person has an equity percentage in the particular corporation that is not less than 10 per cent;a person and another person that is not a corporation are connected with each other if they are not dealing at arm’s length; and“costs incurred by a person” shall not includean outlay or expense described in any of paragraphs (a) to (c) of that definition made or incurred by the person if the references in those paragraphs to “taxpayer” were read as references to “person”,an outlay or expense made or incurred by the person to the extent that it is not reasonably attributable to the use of a property by, the performance of a service for, or any materials, parts, or supplies acquired by, the taxpayer referred to in that definition, andan amount in respect of the capital cost to the person of a property, other than, where the property is a depreciable property of the person, that proportion of the capital allowance of the person for his taxation year in respect of the property that may reasonably be considered attributable to the use of the property by, or in the performance of a service for, the taxpayer referred to in that definition.For the purpose of subparagraph (5)(b)(iii), the capital allowance of a person (in this subsection referred to as the “owner”) for his taxation year in respect of a property owned by him means that proportion of an amount not exceeding 20 per cent of the amount that isin the case of a property owned by the owner on December 31, 1980, the lesser ofthe capital cost of the property to the owner computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, andthe fair market value of the property on December 31, 1980,in the case of a property acquired by the owner after December 31, 1980 that was previously owned by a person connected with the owner, the lesser ofthe capital cost of the property, computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, to the person, who was connected with the owner, who was the first person to acquire the property from a person with whom the owner was not connected, andthe fair market value of the property at the time it was acquired by the owner, andin any other case, the capital cost of the property to the owner computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business,that the number of days in the taxation year during which the property was owned by the owner is of 365.For the purposes of paragraph (5)(a), equity percentage has the meaning assigned by paragraph 95(4)(b) of the Act.For the purposes of the definition qualified tertiary oil recovery project in subsection (1), a specified royalty provision means:the Experimental Project Petroleum Royalty Regulation of Alberta (Alta. Reg. 36/79);The Experimental Oil Sands Royalty Regulations of Alberta (Alta. Reg. 287/77);section 4.2 of the Petroleum Royalty Regulations of Alberta (Alta. Reg. 93/74);section 58A of the Petroleum and Natural Gas Regulations, 1969 of Saskatchewan (Saskatchewan Regulation 8/69);section 204 of The Freehold Oil And Gas Production Tax Regulations, 1983 of Saskatchewan (Saskatchewan Regulation 11/83);item 9 of section 2 of the Petroleum and Natural Gas Royalty Regulations of British Columbia (B.C. Reg. 549/78);the Freehold Mineral Taxation Act of Alberta;the Freehold Mineral Rights Tax Act of Alberta;Order in Council 427/84 pursuant to section 9(a) of the Mines and Minerals Act of Alberta;Order in Council 966/84 pursuant to section 9 of the Mines and Minerals Act of Alberta; orOrder in Council 870/84 pursuant to section 9 of the Mines and Minerals Act of Alberta.For the purpose of paragraph (a) of the definition qualified tertiary oil recovery project in subsection (1), a specified royalty provision is deemed to apply as of a particular time if, at the particular time, unconditional approval for the specified royalty provision to apply at a time after the particular time is given byHer Majesty in right of Canada or of a province;an agent of Her Majesty in right of Canada or of a province; ora corporation, a commission or an association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province.[Repealed, SOR/2007-19, s. 4][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-245, s. 5; SOR/80-418, s. 4; SOR/81-974, s. 7; SOR/85-174, s. 7; SOR/86-1092, s. 8; SOR/88-423, s. 1; SOR/90-113, s. 5; SOR/90-733, s. 4; SOR/91-79, s. 7; SOR/92-681, s. 3; SOR/94-686, ss. 12(F), 48, 58(F), 68(F), 78(F), 79(F), 81(F); SOR/96-199, s. 2; SOR/96-451, s. 4; SOR/99-179, s. 7; SOR/2000-327, s. 3; SOR/2007-19, s. 4; SOR/2016-276, s. 1
Frontier Exploration Allowances
A taxpayer may deduct in computing his income for a taxation year such amount as he may claim not exceeding the lesser ofhis income for the year, computed in accordance with Part I of the Act, if no deduction were allowed under this subsection; andhis frontier exploration base as of the end of the year (before making any deduction under this subsection for the year).For the purposes of this section, frontier exploration base of a taxpayer as of a particular time means the amount by which the aggregate ofthe aggregate of all amounts, each of which is an amount in respect of a particular oil or gas well in Canada equal to 66 2/3 per cent of the amount by whichexpenses incurred after March, 1977 and before April, 1980 and before the particular time in respect of the well (other than expenses that may reasonably be regarded as having been incurred as consideration for services rendered to the taxpayer after March, 1980) if those expenses would be included in the Canadian exploration expense of the taxpayer within the meaning of paragraph 66.1(6)(a) of the Act (if that paragraph were read without reference to subparagraphs (iii) and (iii.1) thereof and without reference to the words “within six months after the end of the year, the drilling of the well is completed and” in subparagraph (ii) thereof, and if the reference in subparagraphs (iv) and (v) thereof to “any of subparagraphs (i) to (iii.1)” were read as a reference to “subparagraph (i) or (ii)”) other thana cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian exploration expense of the taxpayer,an expense renounced by the taxpayer under subsection 66(10.1) of the Act,an amount that, by virtue of subparagraph 66.1(6)(a)(iv) of the Act, was a Canadian exploration expense, if such amount was an expense referred to in clause (A) or (B) that was incurred by a partnership referred to in that subparagraph, oran amount that, by virtue of subparagraph 66.1(6)(a)(v) of the Act, was a Canadian exploration expense, if such amount was an expense referred to in clause (A) or (B) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph,exceedsthe taxpayer’s threshold amount in respect of the well, minus the amount that would be determined under subparagraph (i) in respect of the taxpayer for the well if the reference therein to “after March, 1977 and before April, 1980” were read as “after June, 1976 and before April, 1977”, andwhere the taxpayer is a successor corporation, any amount required by paragraph (7)(a) to be added before the particular time in computing the taxpayer’s frontier exploration base,exceeds the aggregate ofall amounts deducted by the taxpayer under subsection (1) in computing his income for taxation years ending before the particular time,66 2/3 per cent of the aggregate of all amounts, each of which is an amount that became receivable by the taxpayer after March 28, 1979 and before the earlier of December 12, 1979 and the particular time, and in respect of which the consideration given by the taxpayer therefor was a property (other than a share, or a property that would have been a Canadian resource property if it had been acquired by the taxpayer at the time the consideration was given) or services the cost of which may reasonably be regarded as having been primarily an expenditure in respect of an oil or gas well for which an amount was added in computing the taxpayer’s frontier exploration base by virtue of paragraph (a) or in computing the frontier exploration base of a predecessor by virtue of paragraph (a) as it applied to the predecessor where the taxpayer is a successor corporation to the predecessor, as the case may be; andwhere the taxpayer is a predecessor, any amount required by paragraph (7)(b) to be deducted before the particular time in computing the taxpayer’s frontier exploration base.For the purposes of subparagraph (2)(a)(ii), a taxpayer’s threshold amount in respect of an oil or gas well meanswhere the taxpayer and one or more other persons have filed an agreement with the Minister in prescribed form in respect of the well andthe amount allocated to each such person in the agreement does not exceed the amount that would be determined, at the time the agreement is filed, under subparagraph (2)(a)(i) in respect of that person for the well, if the reference in that subparagraph to “March, 1977” were read as “June, 1976”, andthe aggregate of the amounts allocated by the agreement is $5 million,the amount allocated to the taxpayer in the agreement, but if no amount is allocated to the taxpayer in the agreement, nil;where such an agreement has been filed in respect of the well by one or more persons other than the taxpayer, nil; orwhere no such agreement has been filed in respect of the well, $5 million.Where as a result of mechanical or geological difficulties the drilling of a particular oil or gas well does not achieve its stated geological objectives under the drilling authority issued by the relevant government body and a further well, including a relief well, is drilled on the same geological formation and may reasonably be regarded as a continuation of or a substitution for the particular oil or gas well, the expenses in respect of the drilling of the further well shall, for the purposes of this section, be deemed to be expenses in respect of the drilling of the particular oil or gas well.For the purposes of this section,when a shareholder corporation is deemed to have incurred a Canadian exploration expense by virtue of an election made by a joint exploration corporation pursuant to subsection 66(10.1) of the Act, that expense shall be deemed to have been incurred by the shareholder corporation at the time when it was incurred by the joint exploration corporation; andwhen a member of a partnership is deemed to have incurred a Canadian exploration expense by virtue of subparagraph 66.1(6)(a)(iv) of the Act, that expense shall be deemed to have been incurred by the member at the time when it was incurred by the partnership.For the purposes of this section, oil or gas well means any well drilled for the purpose of producing petroleum or natural gas or of determining the existence, location, extent or quality of an accumulation of petroleum or natural gas, other than a mineral resource.Subject to subsections 1202(5) and (6), where a corporation (in this section referred to as the “successor corporation”) has at any time (in this subsection referred to as the “time of acquisition”) after April 19, 1983 and in a taxation year (in this subsection referred to as the “transaction year”) acquired a property from another person (in this subsection referred to as the “predecessor”), the following rules apply:for the purpose of computing the frontier exploration base of the successor corporation as of any time after the time of acquisition, there shall be added an amount equal to the amount required by paragraph (b) to be deducted in computing the frontier exploration base of the predecessor; andfor the purpose of computing the frontier exploration base of the predecessor as of any time after the transaction year of the predecessor, there shall be deducted the amount, if any, by whichthe frontier exploration base of the predecessor immediately after the time of acquisition (assuming for this purpose that, in the case of an acquisition as a result of an amalgamation described in section 87 of the Act, the predecessor existed after the time of acquisition and no property was acquired or disposed of in the course of the amalgamation)exceedsthe amount, if any, deducted under subsection (1) in computing the income of the predecessor for the transaction year of the predecessor.[Repealed, SOR/91-79, s. 8][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-502, s. 7; SOR/79-245, s. 6; SOR/80-418, s. 5; SOR/80-936, s. 1; SOR/81-974, s. 8; SOR/85-174, s. 8; SOR/85-696, ss. 2, 5; SOR/90-113, s. 6; SOR/90-733, s. 5; SOR/91-79, s. 8; SOR/94-686, ss. 58(F), 78(F), 79(F)
Additional Allowances in Respect of Certain Oil or Gas Wells
Subject to subsections (3) and (4) where a taxpayer has income for a taxation year from an oil or gas well that is outside Canada, or where an individual has income for a taxation year from an oil or gas well in Canada, in computing his income for the year he may deduct the lesser ofthe aggregate of drilling costs incurred by him in that year and previous taxation years in respect of the well (not including the cost of land, leases or other rights and not including indirect expenses such as general exploration, geological and geophysical expenses) minus the aggregate of all amounts deductible in respect thereof in computing his income for previous years; andthat part of his income for the year that may reasonably be regarded as income from the well.Where a taxpayer has more than one oil or gas well to which subsection (1) applies, the allowance in respect of the drilling costs of each well shall be computed separately.Where an individual has income for a taxation year from an oil or gas well in Canada, no deduction may be made under this section in computing such income in respect of drilling costs of that well incurred after April 10, 1962.Where a taxpayer has income for a taxation year from an oil or gas well that is outside Canada, no deduction may be made under this section in computing such income in respect of drilling costs of that well incurred after 1971.
Additional Allowances in Respect of Certain Mines
Subject to subsection (3), where a taxpayer operates in Canada a mine for the production of materials from a resource he may deduct, in computing his income for a taxation year, such amount as he may claim not exceeding 25 per cent of the amount computed under subsection (2).The amount referred to in subsection (1) is the aggregate of all expenditures made or incurred by the taxpayer before 1972 that are reasonably attributable to the prospecting and exploration for and the development of the mine prior to the coming into production of the mine in reasonable commercial quantities, except to the extent that the expenditures wereexpenditures in respect of which a deduction from, or in computing, a taxpayer’s income tax or excess profits tax was provided by section 8 of the Income War Tax Act;expenditures in respect of which an amount was deducted in computing a taxpayer’s income under section 16 of chapter 63, S.C., 1947 or section 16 of chapter 53, S.C., 1947-48 or, if the expenditure was incurred prior to 1953, under section 53 of chapter 25, S.C., 1949 (Second Session);expenditures incurred after 1952 in respect of which a deduction was or is provided by section 53 of chapter 25, S.C., 1949 (Second Session), section 83A of the Act as it read in its application to the 1971 taxation year or section 29 of the Income Tax Application Rules,expenditures deducted in computing the income of the taxpayer in the year they were incurred;the cost to the taxpayer of property in respect of which an allowance is provided under paragraph 20(1)(a) of the Act; orthe cost to the taxpayer of a leasehold interest.The amount deductible under subsection (1) shall not exceed the amount computed under subsection (2) minus the aggregate ofamounts deducted under subsection (1) in computing the income of the taxpayer for previous taxation years; andsimilar amounts deducted in computing the income of the taxpayer for the purposes of the Income War Tax Act and The 1948 Income Tax Act (as defined in paragraph 12(d) of the Income Tax Application Rules).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 48
Resource Allowance
[Repealed, SOR/2007-19, s. 5][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.]  SOR/81-974, s. 9; SOR/85-174, s. 9; SOR/90-113, s. 7; SOR/91-79, s. 9; SOR/93-120, s. 2; SOR/94-686, ss. 58(F), 78(F); SOR/96-451, s. 5; SOR/99-179, s. 8; SOR/2007-19, s. 5
[Repealed, SOR/2007-19, s. 6][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-179, s. 9; SOR/2007-19, s. 6
Prescribed Amounts
[Repealed, SOR/2007-19, s. 6][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-502, s. 8; SOR/80-926, s. 2; SOR/81-974, s. 10; SOR/85-174, s. 10; 1991, c. 10, s. 19; SOR/2007-19, s. 6
Supplementary Depletion Allowances
In computing a taxpayer’s income for a taxation year there may be deductedwhere the taxpayer is a corporation, such amount as it may claim not exceeding the lesser ofthe aggregate of50 per cent of its income for the year, computed in accordance with Part I of the Act without reference to paragraphs 59(3.3)(c) and (d) thereof, if no deduction were allowed under this subsection or subsection 1207(1), andthe amount, if any, included in its income for the year by virtue of paragraphs 59(3.3)(c) and (d) of the Act, andits supplementary depletion base as of the end of the year (before making any deduction under this subsection for the year); andwhere the taxpayer is not a corporation, such amount as he may claim not exceeding the lesser ofthe aggregate of25 per cent of the amount, if any, by which his resource profits for the year exceed four times the amount, if any, deducted by virtue of subparagraph 1201(a)(i) in computing his income for the year, andthe amount, if any, included in his income for the year by virtue of paragraphs 59(3.3)(c) and (d) of the Act, andhis supplementary depletion base as of the end of the year (before making any deduction under this subsection for the year).For the purpose of computing the supplementary depletion base of a corporation, where, after the corporation last ceased to carry on active business, control of the corporation is considered, for the purposes of subsection 66(11) of the Act, to have been acquired by a person or persons who did not control the corporation at the time when it so ceased to carry on active business, the amount by which the supplementary depletion base of the corporation at the time it last ceased to carry on active business exceeds the aggregate of amounts otherwise deducted under subsection (1) in computing its income for taxation years ending after that time and before control was so acquired, shall be deemed to have been deducted under subsection (1) by the corporation in computing its income for taxation years ending before control was so acquired.For the purposes of this section, supplementary depletion base of a taxpayer as of a particular time means the amount by which the aggregate of50 per cent of the aggregate of all expenditures each of which was incurred by him before the particular time and each of which was the capital cost to him of property that is enhanced recovery equipment,33 1/3 per cent of the aggregate of all expenditures each of which was incurred by him before the particular time and each of which was the capital cost to him of property (other than property that had, before it was acquired by him, been used for any purpose whatever by any person with whom he was not dealing at arm’s length) that is bituminous sands equipment acquired by him before 1981, andwhere the taxpayer is a successor corporation, any amount required by paragraph (4)(a) to be added before the particular time in computing the taxpayer’s supplementary depletion base,exceeds the aggregate ofall amounts deducted by the taxpayer under subsection (1) in computing his income for taxation years ending before the particular time,50 per cent of the aggregate of all amounts, each of which is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, included in the capital cost to him of depreciable property described in paragraph (a);33 1/3 per cent of the aggregate of all amounts, each of which is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, included in the capital cost to him of depreciable property described in paragraph (b);50 per cent of the aggregate of all amounts, each of which is an amount in respect of a disposition of property (other than a disposition of property, that had been used by the taxpayer, to any person with whom the taxpayer was not dealing at arm’s length) of the taxpayer before the earlier of December 12, 1979 and the particular time, the capital cost of which was added in computing the taxpayer’s supplementary depletion base by virtue of paragraph (a) or in computing the supplementary depletion base of a predecessor by virtue of paragraph (a) as it applied to the predecessor where the taxpayer is a successor corporation to the predecessor, as the case may be, and each of which is the amount that is equal to the lesser ofthe proceeds of disposition of the property, andthe capital cost of the property to the taxpayer or the predecessor, as the case may be, computed as if no amount had been included therein that is a cost of borrowing capital, including a cost incurred prior to the commencement of carrying on a business;33 1/3 per cent of the aggregate of all amounts, each of which is an amount in respect of a disposition of property (other than a disposition of property, that had been used by the taxpayer, to any person with whom the taxpayer was not dealing at arm’s length) of the taxpayer before the earlier of December 12, 1979 and the particular time, the capital cost of which was added in computing the taxpayer’s supplementary depletion base by virtue of paragraph (b) or in computing the supplementary depletion base of a predecessor by virtue of paragraph (b) as it applied to the predecessor where the taxpayer is a successor corporation to the predecessor, as the case may be, and each of which is the amount that is equal to the lesser ofthe proceeds of disposition of the property, andthe capital cost of the property to the taxpayer or the predecessor, as the case may be, computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business; andwhere the taxpayer is a predecessor, any amount required by paragraph (4)(b) to be deducted before the particular time in computing the taxpayer’s supplementary depletion base.Subject to subsections 1202(5) and (6), where a corporation (in this section referred to as the “successor corporation”) has at any time (in this subsection referred to as the “time of acquisition”) after April 19, 1983 and in a taxation year (in this subsection referred to as the “transaction year”) acquired a property from another person (in this subsection referred to as the “predecessor”), the following rules apply:for the purpose of computing the supplementary depletion base of the successor corporation as of any time after the time of acquisition, there shall be added an amount equal to the amount required by paragraph (b) to be deducted in computing the supplementary depletion base of the predecessor; andfor the purpose of computing the supplementary depletion base of the predecessor as of any time after the transaction year of the predecessor, there shall be deducted the amount, if any, by whichthe supplementary depletion base of the predecessor immediately after the time of acquisition (assuming for this purpose that, in the case of an acquisition as a result of an amalgamation described in section 87 of the Act, the predecessor existed after the time of acquisition and no property was acquired or disposed of in the course of the amalgamation)exceedsthe amount, if any, deducted under subsection (1) in computing the income of the predecessor for the transaction year of the predecessor.[Repealed, SOR/91-79, s. 10][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-245, s. 7; SOR/80-418, s. 6; SOR/81-974, s. 11; SOR/85-174, s. 11; SOR/85-696, ss. 2, 6; SOR/90-113, s. 8; SOR/90-733, s. 6; SOR/91-79, s. 10; SOR/94-686, s. 79(F)
Prescribed Deductions
For the purposes of subparagraph 66.1(2)(a)(ii) of the Act, prescribed deduction in respect of a corporation for a taxation year means an amount deducted under subsection 1202(2) by the corporation in computing its income for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-974, s. 12; SOR/91-79, s. 11; SOR/94-686, s. 79(F)
Amalgamations and Windings-Up[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-79, s. 12
Where a particular corporation amalgamates with another corporation to form a new corporation, or the assets of a subsidiary are transferred to its parent corporation on the winding-up of the subsidiary, and subsection 87(1.2) or 88(1.5) of the Act is applicable to the new corporation or the parent corporation, as the case may be, the new corporation or the parent corporation, as the case may be, shall be deemed to be the same corporation as, and a continuation of, the particular corporation or the subsidiary, as the case may be, for the purposes ofcomputing the mining exploration depletion base (within the meaning assigned by subsection 1203(2)), the earned depletion base, the frontier exploration base (within the meaning assigned by subsection 1207(2)) and the supplementary depletion base (within the meaning assigned by subsection 1212(3)) of the new corporation or the parent corporation, as the case may be; anddetermining the amounts, if any, that may be deducted under subsection 1202(2) in computing the income of the new corporation or the parent corporation, as the case may be, for a particular taxation year.Where there has been an amalgamation (within the meaning assigned by subsection 87(1) of the Act) of two or more particular corporations to form one corporate entity, that entity shall be deemed to be the same corporation as, and a continuation of, each of the particular corporations for the purposes of subsection 1202(9).Where a taxable Canadian corporation (in this subsection referred to as the “subsidiary”) has been wound up in circumstances in which subsection 88(1) of the Act applies in respect of the subsidiary and another taxable Canadian corporation (in this subsection referred to as the “parent”), the parent shall be deemed to be the same corporation as, and a continuation of, the subsidiary for the purposes of subsection 1202(9).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-974, s. 12; SOR/85-174, s. 12; SOR/90-113, s. 9; SOR/91-79, s. 12; SOR/94-686, s. 79(F)
[Repealed, SOR/90-733, s. 7][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-733, s. 7
Prescribed Persons
For the purpose of subsection 208(1) of the Act, a person described in any of paragraphs 149(1)(d) to (d.6) of the Act is a prescribed person.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-174, s. 14; SOR/2001-187, s. 2; SOR/2001-295, s. 3(E)
Prescribed Canadian Exploration Expense
For the purposes of subsection 66(14.1) of the Act, the prescribed Canadian exploration expense of a corporation for a taxation year is the amount, if any, by which its total specified exploration expenses for the year exceed its total exploration assistance for the year.For the purposes of subsection (1), the total specified exploration expenses of a particular corporation for a particular taxation year are the aggregate ofall expenses (other than expenses referred to in paragraph (b) or (c)) that are described in any of subparagraphs 66.1(6)(a)(i) to (ii) of the Act and that were incurred by the particular corporation in the particular year and after March 1985 and before October 1986,where the particular corporation is a shareholder corporation of a joint exploration corporation, all expenses described in any of subparagraphs 66.1(6)(a)(i) to (ii) of the Act that were incurred by the joint exploration corporation after March 1985 and before October 1986 and in the taxation year of the joint exploration corporation ending in the particular year and that were deemed under paragraph 66(10.1)(c) of the Act to be Canadian exploration expenses incurred by the particular corporation in the particular year, andall expenses that would be described in subparagraph 66.1(6)(a)(iv) or (v) of the Act if the references in those subparagraphs to “any of subparagraphs (i) to (iii.1) incurred” were read as “any of subparagraphs (i) to (ii) incurred after March 1985 and before October 1986” and that were incurred by the particular corporation in the particular year or by a partnership in a fiscal period of the partnership that ended in the particular year if, at the end of that fiscal period, the particular corporation was a member of the partnership,other thanexpenses renounced by the corporation at any time under subsection 66(10.1) or (12.6) of the Act,Canadian exploration and development overhead expenses of the corporation or of a partnership of which the corporation was a member, orexpenses incurred or deemed to have been incurred by the corporation in a period during which it was exempt from tax on its taxable income under Part I of the Act.For the purposes of subsection (1), the total exploration assistance of a corporation for a taxation year is the aggregate of all amounts each of which is an amount of assistance or benefit that the corporation has received or is entitled to receive in the year from a government, municipality or other public authority in respect of an expense that is included in its total specified exploration expenses for the year by virtue of paragraph (2)(a) or (c), whether such amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-423, s. 2; SOR/94-686, ss. 58(F), 78(F), 79(F), 81(F)
Prescribed Canadian Development Expense
For the purposes of subsection 66(14.2) of the Act, prescribed Canadian development expense of a corporation for a taxation year is the amount, if any, by which its total specified development expenses for the year exceed its total development assistance for the year.For the purposes of subsection (1), the total specified development expenses of a particular corporation for a particular taxation year is the aggregate ofall expenses (other than expenses referred to in paragraph (b) or (c)) that are described in subparagraph 66.2(5)(a)(i) or (i.1) of the Act and that were incurred by the corporation in the particular year and after March 1985 and before October 1986,where the particular corporation is a shareholder corporation of a joint exploration corporation, all expenses that are described in subparagraph 66.2(5)(a)(i) or (i.1) of the Act, that were incurred by the joint exploration corporation after March 1985 and before October 1986 and in the taxation year of the joint exploration corporation ending in the particular year and that were deemed under paragraph 66(10.2)(c) of the Act to be Canadian development expenses incurred by the particular corporation in the particular year, andall expenses that would be described in subparagraph 66.2(5)(a)(iv) or (v) of the Act if the references in those subparagraphs to “any of subparagraphs (i) to (iii) incurred” were read as “subparagraph (i) or (i.1) incurred after March 1985 and before October 1986,” and that were incurred by the particular corporation in the particular year or by a partnership in a fiscal period of the partnership that ended in the particular year if, at the end of that fiscal period, the particular corporation was a member of the partnership,other thanexpenses renounced by the corporation at any time under subsection 66(10.2), (12.601) or (12.62) of the Act,Canadian exploration and development overhead expenses of the corporation or of a partnership of which the corporation was a member, orexpenses incurred or deemed to have been incurred by the corporation in a period during which it was exempt from tax on its taxable income under Part I of the Act.For the purposes of subsection (1), the total development assistance of a corporation for a taxation year is the aggregate of all amounts each of which is an amount of assistance or benefit that the corporation has received or is entitled to receive in the year from a government, municipality or other public authority in respect of an expense that is included in its total specified development expenses for the year by virtue of paragraph (2)(a) or (c), whether such mount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-423, s. 2; SOR/94-686, ss. 58(F), 78(F), 79(F), 81(F); SOR/96-199, s. 3
Canadian Renewable and Conservation Expense
Subject to subsections (2) to (4), for the purpose of subsection 66.1(6) of the Act, Canadian renewable and conservation expense means an expense incurred by a taxpayer, and payable to a person or partnership with whom the taxpayer is dealing at arm’s length, in respect of the development of a project for which it is reasonable to expect that at least 50% of the capital cost of the depreciable property to be used in the project would be the capital cost of any property that is included in Class 43.1 or 43.2 in Schedule II, or that would be so included if this Part were read without reference to this section, and includes such an expense incurred by the taxpayerfor the purpose of making a service connection to the project for the transmission of electricity to a purchaser of the electricity, to the extent that the expense so incurred was not incurred to acquire property of the taxpayer;for the construction of a temporary access road to the project site;for a right of access to the project site before the earliest time at which a property described in Class 43.1 or 43.2 in Schedule II is used in the project for the purpose of earning income;for clearing land to the extent necessary to complete the project;for process engineering for the project, includingcollection and analysis of site data,calculation of energy, mass, water, or air balances,simulation and analysis of the performance and cost of process design options, andselection of the optimum process design;for the drilling or completion of a well for the project, other thana well that is, or can reasonably be expected to be, used for the installation of underground piping that is included in paragraph (d) of Class 43.1 or paragraph (b) of Class 43.2 in Schedule II, ora well referred to in paragraph (h);for a test wind turbine that is part of a wind farm project of the taxpayer; orif at least 50% of the depreciable property to be used in the project, determined by reference to its capital cost, is described in subparagraph (d)(vii) of Class 43.1,for the drilling of a well, orsolely for the purpose of determining the extent and quality of a geothermal resource.A Canadian renewable and conservation expense does not include any expense thatis described in paragraphs 20(1)(c), (d), (e) or (e.1) of the Act; oris incurred by a taxpayer directly or indirectly and isfor the acquisition of, or the use of or the right to use, land, except as provided by paragraph (1)(b), (c) or (d),for grading or levelling land or for landscaping, except as provided by paragraph (1)(b),payable to a non-resident person or a partnership other than a Canadian partnership (other than an expense described in paragraph (1)(g)),included in the capital cost of property that, but for this section, would be depreciable property (other than property that would be included in Class 14.1 of Schedule II), except as provided by paragraph (1)(b), (d), (e), (f), (g) or (h),included in the capital cost of property that, but for this section, would be property included in Class 14.1 of Schedule II, except as provided by any of paragraphs (1)(a) to (e) or subparagraph (h)(ii),included in the cost of inventory of the taxpayer,an expenditure on or in respect of scientific research and experimental development,a Canadian development expense or a Canadian oil and gas property expense,incurred, for a project, in respect of any time at or after the earliest time at which a property described in Class 43.1 or 43.2 in Schedule II was used in the project for the purpose of earning income,incurred in respect of the administration or management of a business of the taxpayer, ora cost attributable to the period of the construction, renovation or alteration of depreciable property, other than property described in Class 43.1 or 43.2 in Schedule II, that relates tothe construction, renovation or alteration of the property, except as provided by paragraph (1)(b), (f), (g) or (h), orthe ownership of land during the period, except as provided by paragraph (1)(b), (c) or (d).For the purpose of paragraph (1)(g), test wind turbine means a fixed location device that is a wind energy conversion system that would, if this Part were read without reference to this section, be property included in Class 43.1 in Schedule II because of subparagraph (d)(v) of that Class, or in Class 43.2 in Schedule II because of paragraph (b) of that Class, in respect of which the Minister, in consultation with the Minister of Natural Resources, determines thatthe device is installed as part of a wind farm project of the taxpayer at which the electrical energy produced from wind by the device, and by all other test wind turbines that are part of the project, does not exceedone third of the project’s planned nameplate capacity ifthe Minister of Natural Resources determines that the project’s planned nameplate capacity is limited from an engineering or scientific perspective, andthe project’s planned nameplate capacity does not exceed six megawatts, or20% of the project’s planned nameplate capacity, in any other case;the project does not share with any other project a point of interconnection to an electrical energy transmission or distribution system;if the project does not have a point of interconnection to an electrical energy transmission or distribution system, the project has a point of interconnection to an electrical systemof the taxpayerwhich system is more than 10 kilometres from any transmission system and from any distribution system, andfrom which system at least 90% of the electrical energy produced by the project is used in a business carried on by the taxpayer, orof another person or partnership that deals at arm’s length with the taxpayerwhich system is more than 10 kilometres from any transmission system and from any distribution system, andfrom which system at least 90% of the electrical energy produced by the project is used in a business carried on by the other person or partnership;the primary purpose for installing the device is to test the level of electrical energy produced by the device from wind at the place of installation;no other test wind turbine is installed within 1500 metres of the device; andno other wind energy conversion system is installed within 1500 metres of the device until the level of electrical energy produced from wind by the device has been tested for at least 120 calendar days.For greater certainty, a Canadian Renewable and Conservation Expense includes an expense incurred by a taxpayer to acquire a fixed location device that is a wind energy conversion system only if the device is described in paragraph (1)(g).A Canadian renewable and conservation expense does not include an expense incurred by a taxpayer at any time that is in respect of a geothermal projectthat at that time is described in paragraph (1)(h); andin respect of which the taxpayer is not at that time in compliance with the requirements of all environmental laws, by-laws and regulations ofCanada,a province or a municipality in Canada, ora municipal or public body performing a function of government in Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2000-327, s. 4; SOR/2005-266, s. 1; SOR/2006-117, s. 5; SOR/2007-116, s. 3; 2010, c. 25, s. 77; 2016, c. 12, s. 79; 2017, c. 33, s. 92
Elections in Respect of Taxpayers Ceasing To Be Resident in CanadaElections To Defer Capital Gains
Any election by an individual under paragraph 48(1)(c) of the Act shall be made by filing with the Minister the prescribed form on or before the day on or before which the return of income for the year in which the taxpayer ceased to be resident in Canada is required to be filed under section 150 of the Act.Any election by a Canadian corporation under paragraph 48(1)(c) of the Act shall be made by filing with the Minister, on or before the day on or before which the return of income for the year in which the corporation ceased to be resident in Canada is required to be filed under section 150 of the Act, the following documents in duplicate:the form prescribed by the Minister;where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made; andwhere the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
Elections To Defer Payment of Taxes
Any election by an individual under subsection 159(4) of the Act shall be made by filing with the Minister the prescribed form on or before the day on or before which the return of income for the year in which the taxpayer ceased to be resident in Canada is required to be filed under section 150 of the Act.Any election by a Canadian corporation under subsection 159(4) of the Act shall be made by filing with the Minister, on or before the day on or before which the return of income for the year in which the corporation ceased to be resident in Canada is required to be filed under section 150 of the Act, the following documents in duplicate:the form prescribed by the Minister;where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made; andwhere the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
Elections To Realize Capital Gains
Any election by an individual under paragraph 48(1)(a) of the Act shall be made by filing with the Minister the prescribed form on or before the day on or before which the return of income for the year in which the taxpayer ceased to be resident in Canada is required to be filed under section 150 of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 7
Insurance Business Policy ReservesPolicy ReservesNon-Life Insurance Business
For the purpose of paragraph 20(7)(c) of the Act, the amount prescribed in respect of an insurer for a taxation year isthe amount determined under subsection (3) in respect of the insurer for the year, where that amount is greater than nil, andnil, in any other case.For the purpose of paragraph 12(1)(e.1) of the Act, the amount prescribed in respect of an insurer for a taxation year isthe absolute value of the amount determined under subsection (3) in respect of the insurer for the year, where that amount is less than nil, andnil, in any other case.For the purposes of paragraphs (1)(a) and (2)(a), the amount determined under this subsection in respect of an insurer for a taxation year is the positive or negative amount determined by the formulaA + B + (0.95 × C) − (0.9 × D) + E + F + G − (H − (0.9 × I))whereAis the total of all amounts each of which is the liability for remaining coverage for a group of insurance contracts of the insurer at the end of the year other than a group of life insurance contracts;Bis the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year other than a group of life insurance contracts, that isthe liability for incurred claims for the group, if no portion of the liability for incurred claims is in respect of insurance policies other than insurance policies in respect of whicha claim that was incurred before the end of the year has been reported to the insurer before the end of the year,the claim is in respect of damages for personal injury or death, andthe insurer has agreed to a structured settlement of the claim, andin any other case, the amount that would be the liability for incurred claims for the group if the liability for incurred claims were determined excluding insurance policies other than insurance policies that meet the conditions in subparagraphs (a)(i) to (iii);Cis the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year other than a group of life insurance contracts, that isthe liability for incurred claims for the group, if no portion of the liability for incurred claims is in respect of insurance policies that meet the conditions in subparagraphs (a)(i) to (iii) of the description of B, andin any other case, the amount that would be the liability for incurred claims for the group if the liability for incurred claims were determined excluding insurance policies that meet the conditions in subparagraphs (a)(i) to (iii) of the description of B,Dis the total of all amounts each of which is the contractual service margin for a group of insurance policies of the insurer at the end of the year that is in respect ofnon-cancellable or guaranteed renewable accident and sickness policies that are in respect of accident and sickness insurance,mortgage insurance, ortitle insurance;Eis an amount in respect of policies that insure a fidelity risk, a surety risk, a nuclear risk or a risk related to a financial loss of a lender on a loan made on the security of real property, equal to the lesser ofthe total of the reported reserves of the insurer at the end of the year in respect of such risks (other than an amount included under the description of A, B, C, D or F), anda reasonable amount as a reserve determined as at the end of the year in respect of such risks (other than an amount included under the description of A, B, C, D or F);Fis the amount of a guarantee fund at the end of the year provided for under an agreement in writing between the insurer and His Majesty in right of Canada under which His Majesty has agreed to guarantee the obligations of the insurer under a policy that insures a risk related to a financial loss of a lender on a loan made on the security of real property;Gis an amount in respect of policies that insure earthquake risks in Canada equal to the lesser ofthe portion of the reported reserve of the insurer at the end of the year in respect of those risks that is attributable to accumulations from premiums in respect of those risks (other than an amount included under the description of A, B, C, D, E or F), anda reasonable amount as a reserve determined at the end of the year in respect of those risks (other than an amount included under the description of A, B, C, D, E or F);His the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under life insurance policies, the reinsurance contract held amount for the group, andin any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion of that amount that is in respect of the reinsurance of a risk under life insurance policies; andIis the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy described in paragraph (a) of the description of D, or a policy in respect of insurance described in paragraph (b) or (c) of the description of D, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion of the contractual service margin other than that portion that is in respect of the reinsurance of a risk under a policy described in paragraph (a) of the description of D, and a policy in respect of insurance described in paragraph (b) or (c) of the description of D.[Repealed, 2022, c. 19, s. 78][Repealed, SOR/2002-123, s. 4][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-425, s. 1; SOR/80-419, s. 1; SOR/88-165, s. 8; SOR/90-661, s. 2; SOR/92-681, s. 3(F); SOR/94-297, s. 1; SOR/94-415, s. 4; SOR/94-686, ss. 56(F), 57(F), 81(F); SOR/96-443, s. 1; SOR/99-269, ss. 1, 2; SOR/2002-123, ss. 3, 42022, c. 19, s. 78
Amounts Determined[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 98Life Insurance Business[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-269, s. 3
For the purposes of applying section 307 and subsection 211.1(3) of the Act at any time, the amounts determined under this subsection are,in respect of a deposit administration fund policy, the total of the insurer’s liabilities under the policy calculated in the manner thatif the insurer is required to file an annual report with its relevant authority for a period that includes that time, is required to be used in preparing that report, andin any other case, is required to be used in preparing its annual financial statements for the period that includes that time;in respect of a group term life insurance policy that provides insurance for a period not exceeding 12 months, the unearned portion of the premium paid by the policyholder for the policy at that time determined by apportioning the premium paid by the policyholder equally over the period to which that premium pertains;in respect of a life insurance policy, other than a policy referred to in paragraph (a) or (b), the greater ofthe amount determined by the formulaA – BwhereAisif the policy is issued after 2016 and is not an annuity contract, the cash surrender value of the policy at that time determined without reference to surrender charges, andin any other case, the cash surrender value of the policy at that time, andBis the total of all amounts each of which is an amount payable at that time in respect of a policy loan in respect of the policy, andthe amount determined by the formulaA – (B + C)whereAisif the policy is issued after 2016 and is not an annuity contract, the net premium reserve in respect of the policy at that time, andin any other case, the present value at that time of the future benefits provided by the policy,Bisif the policy is issued after 2016 and is not an annuity contract, nil, andin any other case, the present value at that time of any future modified net premiums in respect of the policy, andCis the total of all amounts each of which is an amount payable at that time in respect of a policy loan in respect of the policy;in respect of a group life insurance policy, the amount (other than an amount in respect of which a deduction may be claimed by the insurer under subsection 140(1) of the Act because of subparagraph 138(3)(a)(v) of the Act in computing the insurer’s income for its taxation year that includes that time) in respect of a dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy that will be used by the insurer to reduce or eliminate a future adverse claims experience under the policy or that will be paid or unconditionally credited to the policyholder by the insurer or applied in discharge, in whole or in part, of a liability of the policyholder to pay premiums to the insurer, which is the least ofa reasonable amount in respect of such a dividend, refund of premiums or refund of premium deposits,25% of the amount of the premium payable under the terms of the policy for the 12-month period ending at that time, andthe amount of the reserve or liability in respect of such a dividend, refund of premiums or refund of premium deposits thatif the insurer is required to file an annual report with its relevant authority for a period that includes that time, is used in preparing that report, andin any other case, is used in preparing its annual financial statements for the period that includes that time; andin respect of a policy, other than a policy referred to in paragraph (a), in respect of a benefit, risk or guarantee that isan accidental death benefit,a disability benefit,an additional risk as a result of insuring a substandard life,an additional risk in respect of the conversion of a term policy or the conversion of the benefits under a group policy into another policy after that time,an additional risk under a settlement option,an additional risk under a guaranteed insurability benefit,a guarantee in respect of a segregated fund policy, orany other benefit that is ancillary to the policy, subject to the prior approval of the Minister on the advice of the Superintendent of Insurance for Canada,but is nota benefit, risk or guarantee in respect of which an amount has been claimed under any other paragraph of this subsection by the insurer as a deduction in computing its income for its taxation year that includes that time,equal to the lesser ofa reasonable amount in respect of the benefit, risk or guarantee, andthe reserve in respect of the benefit, risk or guarantee thatif the insurer is required to file an annual report with its relevant authority for a period that includes that time, is used in preparing that report, andin any other case, is used in preparing its annual financial statements for the period that includes that time.[Repealed, 2009, c. 2, s. 99][Repealed, 2009, c. 2, s. 99]For the purposes of subsection (1), (except in respect of subparagraph (d)(vii) thereof), any amount claimed by an insurer for the year shall not include an amount in respect of a liability of a segregated fund (within the meaning assigned segregated fund by section 138.1 of the Act).The following definitions apply in this section.benefit on death includes the amount of an endowment benefit but does not includeany additional amount payable as a result of accidental death; andwhere interest, if any, on an amount held on deposit by an insurer is included in computing the income of a policyholder for a taxation year, the amount held on deposit and interest on the deposit. (prestation de décès)coverage, under a life insurance policy, means each life insurance (other than a fund value benefit) under the policy in respect of a specific life, or two or more specific lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies. For greater certainty, each such insurance is a separate coverage. (protection)fund value benefit, under a life insurance policy at any time, means a benefit under the policy the amount of which is the amount by which the fund value of the policy at that time exceeds the total of all amounts each of which is a fund value of a coverage under the policy at that time. (bénéfice au titre de la valeur du fonds)fund value of a coverage, under a life insurance policy at any time, means the total of all amounts each of which is the amount at that time of an investment account in respect of the policy that reduces the net amount at risk as determined for the purpose of calculating the cost of insurance charges for the coverage during the period over which those charges are incurred or would be incurred if they were to apply until the termination of the coverage. (valeur du fonds d’une protection)fund value of a policy, at any time, means the total of all amounts each of which is the amount at that time of an investment account in respect of the policy and, for greater certainty,includes, where interest, if any, on an amount held on deposit by an insurer is not included in computing the income of a policyholder for a taxation year, the amount held on deposit and interest on the deposit; andexcludes, where interest, if any, on an amount held on deposit by an insurer is included in computing the income of a policyholder for a taxation year, the amount held on deposit and interest on the deposit. (valeur du fonds d’une police)future benefits to be provided, in respect of a coverage under a life insurance policy at any time, meansif there is a fund value of the coverage at that time, each benefit on death that would be payable under the coverage at a particular time after that time determined as if the amount of the benefit were equal to the amount by which the benefit on death at that time exceeds the fund value of the coverage at that time; andin any other case, each benefit on death payable under the coverage at a particular time after that time. (prestations futures à verser)future net premiums or cost of insurance charges, in respect of a coverage at any time, meansfor the purposes of paragraph (a) of the description of C in the definition net premium reserve in this subsection, each amount determined by the formulaA × B/CwhereAis future premiums or cost of insurance charges in respect of the coverage at that time,Bis the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on that date, andCis the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on that date; andfor the purposes of paragraph (b) of the description of C in the definition net premium reserve in this subsection,each amount determined by the formulaA × (B + C)/(D + E)whereAis future premiums or cost of insurance charges in respect of the coverage at that time,Bis the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on the particular day that is one year after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date,Cis the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on the particular day that is two years after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date,Dis the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on the particular day that is one year after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, andEis the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on the particular day that is two years after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, andnotwithstanding subparagraph (i), in respect of the second year of the coverage, the amount determined by the formula(A + B)/2whereAis the amount determined under subparagraph (i), andBis the amount of a one-year term insurance premium or cost of insurance charge that would be payable in respect of the coverage if the benefit on death were equal to the amount by which the benefit on death at the end of the first year of the coverage exceeds the fund value of the coverage, if any, at the end of the first year of the coverage. (frais d’assurance ou primes nets futurs)future premiums or cost of insurance charges, in respect of a coverage at any time, meansif there is a fund value of the coverage at that time, each cost of insurance charge in respect of the coverage that would be incurred at a particular time after that time determined as if the net amount at risk under the coverage after that time were equal to the amount by which the benefit on death under the coverage at that time exceeds the fund value of the coverage at that time; andin any other case, each premium in respect of the coverage that is fixed and determined on the date of issue of the coverage that will become payable, or each cost of insurance charge in respect of the coverage that will be incurred, as the case may be, at a particular time after that time. (frais d’assurance ou primes futurs)interpolation time, of a coverage, means the time that is the earlier ofthe time that is eight years after the date of issue of the coverage; andthe first time at which no premiums are payable or cost of insurance charges are incurred, as the case may be, in respect of the coverage. (moment d’interpolation)net premium reserve, in respect of a life insurance policy at any time, means the amount determined by the formulaA + B + CwhereAis the total of all amounts, if any, each of which is the present value at that time of the fund value of a coverage under the policy at that time;Bis the amount, if any, of the fund value benefit under the policy at that time; andCisin applying paragraph (1)(c) for the purposes of section 307, the total of all amounts each of which is, in respect of a coverage under the policy,if that time is at or after the interpolation time of the coverage, the amount determined by the formulaD – EwhereDis the present value at that time of future benefits to be provided in respect of the coverage at that time, andEis the present value at that time of future net premiums or cost of insurance charges in respect of the coverage at that time, andif that time is before the interpolation time of the coverage, the amount determined by the formulaF/G × (H – I)whereFis the number of years that the coverage has been in effect as of that time,Gis the number of years that the coverage would have been in effect if that time were the interpolation time,His the present value at the interpolation time of future benefits to be provided in respect of the coverage at the interpolation time and, if the coverage has a fund value at that time, determined as if the amount of the benefit on death under the coverage at the interpolation time were equal to the amount by which the benefit on death at that time exceeds the fund value of the coverage at that time, andIis the present value at the interpolation time of future net premiums or cost of insurance charges in respect of the coverage at the interpolation time and, if the coverage has a fund value at that time, determined as if the net amount at risk under the coverage after the interpolation time were equal to the amount by which the benefit on death at that time exceeds the fund value of the coverage at that time, andin applying paragraph (1)(c) for the purposes of subsection 211.1(3) of the Act, the total of all amounts each of which is, in respect of a coverage under the policy, the amount determined by the formulaJ – KwhereJis the present value at that time of future benefits to be provided in respect of the coverage at that time, andKis the present value at that time of future net premiums or cost of insurance charges in respect of the coverage at that time. (provision pour primes nettes)policy anniversary has the same meaning as in section 310. (anniversaire de la police)In applying paragraph (1)(c) for the purposes of section 307 in respect of a life insurance policy (other than an annuity contract) issued after 2016, the following rules apply:in computing present valuesan annual interest rate of 3.5% is to be used, andmortality rates are to be used;in determining the mortality rates that apply to a life insured under a coverage under the policy,if a single life is insured under the coverage,the age that is to be used is the age of the life insured at the time at which the coverage was issued, or that which is attained on the birthday of the life insured nearest to the time at which the coverage was issued, depending on the method used by the insurer that issued the policy in determining the premium or cost of insurance rates in respect of the life insured,if the life insured was determined by the insurer that issued the policy to be a standard life at the time the coverage was issued, the Proposed CIA Mortality Tables, 1986–1992 included in the May 17, 1995 Canadian Institute of Actuaries Memorandum, extended to include select mortality rates from age 81 to age 90 developed using the methodology used by the Canadian Institute of Actuaries to derive select mortality rates from age 71 to age 80, applicable for an individual who has the same relevant characteristics as the life insured, are to be used, andif the life insured was determined by the insurer that issued the policy to be a substandard life at the time the coverage was issued, the mortality rates that apply are to be equal to, depending on the method used by the insurer for the purpose of determining the premium or cost of insurance rates in respect of the coverage,the lesser of one and the product of the rating attributed to the life by the insurer and the mortality rates that would be determined under clause (B) if the life were not a substandard life, orthe mortality rates that would have been determined under clause (B) had the life insured been a standard life and the age of the life insured been the age used by the life insurer for the purpose of determining the premium or cost of insurance rates in respect of the coverage, andif two or more lives are jointly insured under the coverage, the mortality rates to be used are those determined by applying the methodology used by the insurer that issued the policy to estimate the mortality rates of the lives jointly insured for the purpose of determining the premium or cost of insurance rates in respect of the coverage to the Proposed CIA Mortality Tables, 1986–1992 included in the May 17, 1995 Canadian Institute of Actuaries Memorandum, extended to include select mortality rates from age 81 to age 90 developed using the methodology used by the Canadian Institute of Actuaries to derive select mortality rates from age 71 to age 80; andin determining the net premium reserve in respect of the policy, the present value of future net premiums or cost of insurance charges is to be calculated as if a premium or cost of insurance charge payable or incurred on a policy anniversary were payable or incurred, as the case may be, one day after the policy anniversary.In applying paragraph (1)(c) for the purposes of subsection 211.1(3) of the Act in respect of a life insurance policy (other than an annuity contract)if the policy is issued after 2016,the rates of interest, mortality and lapses described in subsection 1403(1) are to be used in computing present values, determined as ifsubsections 1403(2) to (8) did not apply, andthe reference to “premiums for the policy” in paragraph 1403(1)(e) were read as a reference to “premiums or cost of insurance charges in respect of a coverage under the policy”,subparagraph (1)(c)(i) is to be read without reference to “determined without reference to surrender charges”, andin determining the net premium reserve in respect of the policy, the present value of future net premiums or cost of insurance charges is to be calculated as if a premium or cost of insurance charge payable or incurred on a policy anniversary were payable or incurred, as the case may be, one day after the policy anniversary; andif the policy is issued before 2017 and at a particular time after 2016 life insurance — in respect of a life, or two or more lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies — is added to the policy or is term insurance that is converted into permanent life insurance within the policy, then that insurance is deemed to be a separate life insurance policy issued at the particular time unlessthe insurance is part of a rider deemed by subsection 211(2) of the Act to be a separate life insurance policy issued at the particular time, orin the case of insurance added to the policy,the insurance is medically underwrittento obtain a reduction in the premium or cost of insurance rates under the policy, orbefore 2017, orthe insurance is paid for with policy dividends or is reinstated.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-425, s. 1; SOR/80-618, s. 3; SOR/84-948, s. 8; SOR/86-1136, s. 2; SOR/90-661, s. 3; SOR/92-681, s. 3(F); SOR/94-415, s. 5; SOR/94-686, s. 13(F); SOR/99-269, s. 4; SOR/2002-123, s. 1; 2009, c. 2, s. 99; 2014, c. 39, s. 86; 2017, c. 33, s. 93
Special RulesNon-Life and Life Insurance Businesses
Any amount determined undersection 1401 shall be determined net of relevant reinsurance recoverable amounts; andsection 1400 or 1401 shall be determined without reference to any amount in respect of a deposit accounting insurance policy.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-425, s. 1; SOR/97-505, s. 1; SOR/99-269, s. 5; 2010, c. 25, s. 782022, c. 19, s. 79
For greater certainty, any amount referred to or determined under section 1400 may be equal to, or less than, nil.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-269, s. 5
Subject to subsections (2) and (3), for the purposes of applying paragraph 1401(1)(c) in respect of a life insurance policy issued before 2017 or an annuity contract, a modified net premium and an amount determined by paragraph 1401(1)(c) are to be computedin the case of a lapse-supported policy effected after 1990, based on rates of interest, mortality and policy lapse only, andin any other case, based on rates of interest and mortality only,usingin respect of the modified net premiums and benefits (other than a benefit described in paragraph (d)) of a participating life insurance policy (other than an annuity contract) under the terms of which the policyholder is entitled to receive a specified amount in respect of the policy’s cash surrender value, the rates used by the insurer when the policy was issued in computing the cash surrender values of the policy;in respect of any benefit providedin lieu of a cash settlement on the termination or maturity of a policy, orin satisfaction of a dividend on a policy,the rates used by the insurer in determining the amount of such benefit; andin respect of all or part of any other policy, the rates used by the insurer in determining the premiums for the policy.For the purposes of subsection (1), where a rate of mortality or other probability used by an insurer in determining the premium for a policy is not reasonable in the circumstances, the Minister on the advice of the Superintendent of Insurance for Canada may make such revision to the rate as is reasonable in the circumstances and the revised rate shall be deemed to have been used by the insurer in determining the premium.For the purposes of subsection (1), where the present value of the premiums for a policy as at the date of issue of the policy is less than the aggregate ofthe present value, at that date, of the benefits provided for by the policy, andthe present value, at that date, of all outlays and expenses made or incurred by the insurer or outlays and expenses that the insurer reasonably estimates it will make or incur in respect of the policy (except outlays and expenses to maintain the policy after all premiums under the policy have been paid and for which explicit provision has not been made in calculating the premiums) and such part of any other outlays and expenses made or incurred by the insurer that may reasonably be regarded as applicable thereto,an increased rate of interest shall be determined by multiplying the rate of interest used in determining the premiums by a constant factor so that when the increased rate of interest is used,the present value of the premiums at the date of issue of the policyshall equalthe aggregate of the present values of the benefits, outlays and expenses referred to in paragraphs (a) and (b),and the increased rate of interest shall be deemed to have been used by the insurer in determining the premiums for policy.For the purposes of subsection (3), a “present value” referred to in that subsection shall be computed by using the rates of mortality and other probabilities used by the insurer in determining its premiums, after mixing any revision required by subsection (2).For the purposes of subsection (1), where a record of the rate of interest or mortality used by an insurer in determining the premiums for a policy is not available,the insurer may, if the policy was issued before 1978, make a reasonable estimate of the rate; andthe Minister, on the advice of the Superintendant of Insurance for Canada, mayif the policy was issued before 1978 and the insurer has not made the estimate referred to in paragraph (a), orif the policy was issued after 1977,make a reasonable estimate of the rate.Notwithstanding paragraph 1401(1)(c), a life insurer in computing its income for a taxation year may, in respect of any class of life insurance policies issued before its 1988 taxation year, other than policies referred to in paragraph 1401(1)(a) or (b), use a method of approximation to convert the reserve in respect of such policies reported by the insurer in its annual report to the relevant authority for the year to an amount that is a reasonable estimate of the amount that would otherwise be determined for such policies under paragraph 1401(1)(c), provided that that method of approximation is acceptable to the Minister on the advice of the relevant authority.For the purpose of subsection (1) and notwithstanding any other provision of this section, wherean individual annuity contract was issued prior to 1969 by a life insurer, ora benefit was purchased prior to 1969 under a group annuity contract issued by a life insurer, andthe contractis a policy in respect of which the provisions of paragraph 1401(1)(c) as it read in its application to the insurer’s 1977 taxation year applied,the rates of interest and mortality and by the insurer in computing its reserve for the policy under that paragraph for its 1977 taxation year shall be used by the insurer in respect of that policy.Subsections (9) and (10) apply to an insurer ifin a taxation year of the insurer, there has been a disposition to the insurer by another person with whom the insurer was dealing at arm’s length in respect of which subsection 138(11.92) of the Act applied;as a result of the disposition, the insurer assumed obligations under life insurance policies (in this subsection and subsections (9) and (10) referred to as the “transferred policies”) in respect of which an amount may be claimed by the insurer as a reserve under paragraph 1401(1)(c) for the taxation year;the amount (referred to in this subsection and subsections (9) and (10) as the “reserve deficiency”) determined by the following formula is a positive amount:(A – B) – CwhereAis the total of all amounts received or receivable by the insurer from the other person in respect of the transferred policies,Bis the total of all amounts paid or payable by the insurer to the other person in respect of commissions in respect of the amounts referred to in the description of A, andCis the total of the maximum amounts that may be claimed by the insurer as a reserve under 1401(1)(c) (determined without reference to this subsection) in respect of the transferred policies for the taxation year; andthe reserve deficiency can reasonably be attributed to the fact that the rates of interest, mortality or policy lapse used by the issuer of the transferred policies in determining the cash surrender values or premiums under the transferred policies are no longer reasonable in the circumstances.If this subsection applies to an insurer in respect of transferred policies for which there was a reserve deficiency, then, for the purposes of subsection (1) and subject to subsection (10),the insurer may make such revisions to the rates of interest, mortality or policy lapse used by the issuer of the transferred policies to eliminate all or any part of the reserve deficiency; andthe revised rates are deemed to have been used by the issuer of the transferred policies in determining the cash surrender value or premiums under the policies.If, under subsection (9), an insurer has revised the rates of interest, mortality or policy lapse used by the issuer of transferred policies, the Minister may, for the purposes of subsection (1) and paragraph (9)(b), make further revisions to the revised rates to the extent that the insurer’s revisions to those rates are not reasonable in the circumstances.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-425, s. 1; SOR/80-419, s. 2; SOR/80-618, s. 4(E); SOR/90-661, s. 4; SOR/94-415, s. 6; SOR/94-686, ss. 14(F), 56(F); 2013, c. 34, s. 386; 2014, c. 39, s. 87
Life Insurance Policy Reserves
For the purpose of subparagraph 138(3)(a)(i) of the Act, there may be deducted, in computing a life insurer’s income from carrying on its life insurance business in Canada for a taxation year in respect of its groups of life insurance contracts in Canada at the end of the year, the amount the insurer claims, not exceedingthe amount determined under subsection (3) in respect of the insurer for the year, where that amount is greater than nil; andnil, in any other case.For the purpose of paragraph 138(4)(b) of the Act, the amount prescribed in respect of an insurer for a taxation year, in respect of its groups of life insurance contracts in Canada at the end of the year, isthe absolute value of the amount determined under subsection (3) in respect of the insurer for the year, where that amount is less than nil; andnil, in any other case.For the purposes of paragraphs (1)(a) and (2)(a), the amount determined under this subsection in respect of an insurer for a taxation year, for groups of life insurance contracts in Canada of the insurer at the end of the year, is the positive or negative amount determined by the formulaA + B − (0.9 × C) − (D − (0.9 × E))whereAis the total of all amounts each of which is the liability for remaining coverage for a group of life insurance contracts in Canada of the insurer at the end of the year;Bis the total of all amounts each of which is the liability for incurred claims for a group of life insurance contracts in Canada of the insurer at the end of the year;Cis the total of all amounts each of which is the contractual service margin for a group of life insurance contracts in Canada (other than a group of segregated fund policies) of the insurer at the end of the year;Dis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada, the reinsurance contract held amount for the group, andin any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada; andEis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada that is not a segregated fund policy, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under insurance policies other than a life insurance policy in Canada that is not a segregated fund policy.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.]  SOR/79-425, s. 1; SOR/80-419, s. 3; SOR/83-865, s. 6; SOR/84-948, s. 9; SOR/88-165, ss. 9, 30(F); SOR/90-661, s. 5; SOR/92-51, s. 8; SOR/93-564, s. 1; SOR/94-415, s. 7; SOR/94-686, ss. 55(F), 56(F), 79(F); SOR/96-443, s. 2; SOR/99-269, s. 6; SOR/2002-123, ss. 3, 4; 2009, c. 2, s. 1002022, c. 19, s. 80
[Repealed, 2022, c. 19, s. 81]
Any amount determined under section 1404 shall be determined[Repealed, 2022, c. 19, s. 82]by excluding any obligation to pay a benefit under a segregated fund policy ifthe amount of the benefit varies with the fair market value of the segregated fund at the time the benefit becomes, or may become, payable, andthe benefit is not in respect of a guarantee given by the insurer under a segregated fund policy; andwithout reference to any amount in respect of a deposit accounting insurance policy.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-425, s. 1; SOR/99-269, s. 6; 2010, c. 25, s. 79; 2013, c. 34, s. 3872022, c. 19, s. 82
For greater certainty, any amount referred to in or determined under section 1404 may be equal to, or less than, nil.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-269, s. 62022, c. 19, s. 83
InterpretationInsurance Businesses
The definitions in this subsection apply in this Part.accident and sickness insurance has the same meaning as in the schedule to the Insurance Companies Act. (assurance accidents et maladie)acquisition costs[Repealed, SOR/2002-123, s. 2]amount payable, in respect of a policy loan at a particular time, means the amount of the policy loan and the interest that is outstanding on the policy loan at that time. (montant payable)benefit, in respect of a policy, includesa policy dividend (other than a policy dividend in respect of a policy described in paragraph 1403(1)(c)) in respect of the policy to the extent that the dividend was specifically treated as a benefit by the insurer in determining a premium for the policy, andan expense of maintaining the policy after all premiums in respect of the policy have been paid to the extent that the expense was specifically provided for by the insurer in determining a premium for the policy,but does not includea policy loan,interest on funds left on deposit with the insurer under the terms of the policy, andany other amount under the policy that was not specifically provided for by the insurer in determining a premium for the policy. (bénéfice)capital tax means a tax imposed under Part I.3 or VI of the Act or a similar tax imposed under an Act of the legislature of a province. (impôt sur le capital)cash surrender value has the meaning assigned by subsection 148(9) of the Act. (valeur de rachat)claim liability[Repealed, 2022, c. 19, s. 84]contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12) of the Act. (marge sur services contractuels)deposit accounting insurance policy has the meaning assigned by subsection 138(12) of the Act. (police d’assurance à comptabilité de dépôt)extended motor vehicle warranty[Repealed, 2022, c. 19, s. 84]general amending provision[Repealed, 2022, c. 19, s. 84]group of insurance contracts of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats d’assurance)group of life insurance contracts of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats d’assurance-vie)group of life insurance contracts in Canada of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats d’assurance-vie au Canada)group of reinsurance contracts held by an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats de réassurance)group of segregated fund policies of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de polices à fonds réservé)interest, in relation to a policy loan, has the meaning assigned by subsection 138(12) of the Act. (intérêt)lapse-supported policy means a life insurance policy that would require materially higher premiums if premiums were determined using policy lapse rates that are zero after the fifth policy year. (police fondée sur les déchéances)liability for incurred claims for a group of insurance contracts of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (passif au titre des sinistres survenus)liability for remaining coverage for a group of insurance contracts of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (passif au titre de la couverture restante)life insurance policy has the same meaning as defined in subsection 138(12) of the Act. (police d’assurance-vie)life insurance policy in Canada has the same meaning as defined in subsection 138(12) of the Act. (police d’assurance-vie au Canada)modified net premium, in respect of a premium under a policy (other than a prepaid premium under a policy that cannot be refunded except on termination of the policy), meanswhere all benefits (other than policy dividends) and premiums (other than the frequency of payment of premiums) in respect of the policy are determined at the date of issue of the policy, the amount determined by the formulaA × [(B + C) / (D + E)]whereAis the amount of the premium,Bis the present value, at the date of the issue of the policy, of the benefits to be provided under the terms of the policy after the day that is one year after the date of the issue of the policy,Cis the present value, at the date of the issue of the policy, of the benefits to be provided under the terms of the policy after the day that is two years after the date of the issue of the policy,Dis the present value, at the date of the issue of the policy, of the premiums payable under the terms of the policy on or after the day that is one year after the date of the issue of the policy, andEis the present value, at the date of the issue of the policy, of the premiums payable under the terms of the policy on or after the day that is two years after the date of the issue of the policy,except that the amount determined by the formula in respect of the premium for the second year of a policy is deemed to be the amount that is 50% of the total ofthe amount that would otherwise be determined under the formula, andthe amount of a one-year term insurance premium (determined without regard to the frequency of payment of the premium) that would be payable under the policy; andin any other case, the amount that would be determined under paragraph (a) if that paragraph applied and the amount were adjusted in a manner that is reasonable in the circumstances. (prime nette modifiée)mortgage insurance has the same meaning as in the schedule to the Insurance Companies Act. (assurance hypothécaire)net premium for the policy[Repealed, SOR/2002-123, s. 2]non-cancellable or guaranteed renewable accident and sickness policy, includes a non-cancellable or guaranteed renewable accident and sickness benefit under a group policy. (police d’assurance contre les accidents et la maladie non résiliable ou à renouvellement garanti)participating life insurance policy has the meaning assigned by subsection 138(12) of the Act. (police d’assurance-vie avec participation)policy liability[Repealed, 2022, c. 19, s. 84]policy loan has the meaning assigned by subsection 138(12) of the Act. (avance sur police)post-1995 life insurance policy[Repealed, 2022, c. 19, s. 84]post-1995 non-cancellable or guaranteed renewable accident and sickness policy[Repealed, 2022, c. 19, s. 84]pre-1996 life insurance policy[Repealed, 2022, c. 19, s. 84]pre-1996 non-cancellable or guaranteed renewable accident and sickness policy[Repealed, 2022, c. 19, s. 84]qualified annuity means an annuity contract issued before 1982, other than a deposit administration fund policy or a policy referred to in paragraph 1403(7)(c),in respect of which regular periodic annuity payments have commenced;in respect of which a contract or certificate has been issued that provides for regular periodic annuity payments to commence within one year after the date of issue of the contract or certificate;that is not issued as or under a registered retirement savings plan, registered pension plan or deferred profit sharing plan and thatdoes not provide for a guaranteed cash surrender value at any time, andprovides for regular periodic annuity payments to commence not later than the attainment of age 71 by the annuitant; orthat is issued as or under a registered retirement savings plan, registered pension plan or deferred profit sharing plan, if the interest rate is guaranteed for at least 10 years and the plan does not provide for any participation in profits, directly or indirectly. (rente admissible)reinsurance commission[Repealed, 2022, c. 19, s. 84]reinsurance contract held amount for a group of reinsurance contracts held by an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (montant au titre des contrats de réassurance détenus)reinsurance recoverable amount of an insurer means an amount reported as a reinsurance asset of the insurer as at the end of a taxation year in respect of an amount recoverable from a reinsurer. (somme à recouvrer au titre de la réassurance)relevant authority of an insurer has the same meaning as in subsection 138(12) of the Act. (autorité compétente)reported reserve of an insurer at the end of a taxation year in respect of a policy that insures an earthquake risk in Canada, or a fidelity risk, a nuclear risk or a risk related to a financial loss of a lender on a loan made on the security of real property, means the amount equal to the positive or negative amount of the reserve reported as at the end of the year. (provision déclarée)segregated fund has the meaning assigned by subsection 138.1(1) of the Act. (fonds réservé)segregated fund policy has the meaning assigned by subsection 138.1(1) of the Act. (police à fonds réservé)title insurance has the same meaning as in the schedule to the Insurance Companies Act. (assurance de titres)[Repealed, 2022, c. 19, s. 84]For the purpose of the formula referred to in the definition modified net premium in subsection (1), it may be assumed that premiums are payable annually in advance.[Repealed, 2022, c. 19, s. 84]For the purposes of this Part, any rider that is attached to a life insurance policy and that provides for additional life insurance or for an annuity is a separate life insurance policy.For the purposes of this Part, any rider that is attached to a policy and that provides for additional non-cancellable or guaranteed renewable accident and sickness insurance, as the case may be, is a separate non-cancellable or guaranteed renewable accident and sickness policy.[Repealed, 2022, c. 19, s. 84][Repealed, 2022, c. 19, s. 84][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-269, s. 6; SOR/2002-123, ss. 2, 3; 2009, c. 2, s. 101; 2010, c. 25, s. 802022, c. 19, s. 84
Profit Sharing PlansEmployees Profit Sharing Plans
An election under subsection 144(4.1) of the Act by the trustee of a trust governed by an employees profit sharing plan shall be made by filing with the Minister the prescribed form in duplicate.An election under subsection 144(4.2) of the Act by the trustee of a trust governed by an employees profit sharing plan shall be made by filing with the Minister the prescribed form in duplicate on or before the last day of a taxation year of the trust in respect of any capital property deemed to have been disposed of in that taxation year by virtue of the election.An election under subsection 144(10) of the Act shall be made by sending the following documents by registered mail to the Commissioner of Revenue at Ottawa:a letter from the employer stating that he elects to have the arrangement qualify as an employees profit sharing plan;if the employer is a corporation,where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made, andwhere the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation; anda copy of the agreement and any supplementary agreement setting out the plan.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 69(F), 79(F); SOR/2007-116, s. 4
Deferred Profit Sharing PlansRegistration of Plans
For the purpose of the definition deferred profit sharing plan in subsection 147(1) of the Act, an application for registration of a plan shall be made by sending the following documents by registered mail to the Commissioner of Revenue at Ottawa:a letter from the trustee and the employer whereby the trustee and the employer apply for the registration of the plan as a deferred profit sharing plan;if the employer is a corporation, a certified copy of a resolution of the directors authorizing the application to be made; anda copy of the agreement and any supplementary agreement setting out the plan.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 4; SOR/94-686, s. 79(F); SOR/2007-116, s. 5
[Repealed, SOR/81-725, s. 1][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-725, s. 1
Elections in Respect of Certain Single Payments
Any election by a beneficiary under subsection 147(10.1) of the Act shall be made by filing the prescribed form in duplicate as follows:one form shall be filed by the beneficiary with the trustee of the deferred profit sharing plan not later than 60 days after the end of the taxation year in which the beneficiary received the payment referred to in subsection 147(10.1) of the Act; andthe other form shall be filed by the beneficiary with the Minister on or before the day on which the beneficiary is required to file a return of income pursuant to section 150 of the Act for the taxation year in which the beneficiary received the payment referred to in subsection 147(10.1) of the Act.
Prescribed Countries
For the purposes of subsection 10(4) of the Income Tax Application Rules, the following countries are hereby prescribed:Commonwealth of Australia;Kingdom of Denmark;Republic of Finland;French Republic;Federal Republic of Germany;Ireland;Jamaica;Japan;Kingdom of the Netherlands;New Zealand;Kingdom of Norway;Republic of South Africa;Kingdom of Sweden;Trinidad and Tobago;United Kingdom of Great Britain and Northern Ireland; andUnited States of America.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 48
Capital Cost Allowances, Farming and Fishing[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1092, s. 9(F)Deductions AllowedRates
For the purposes of paragraph 20(1)(a) of the Act, there is hereby allowed to a taxpayer, in computing his income from farming or fishing, as the case may be, a deduction for each taxation year in respect of each property that was used for the purpose of gaining or producing income from farming or fishing equal to such amount as he may claim, not exceeding in the case ofa building or other structure, not described elsewhere in this subsection, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, 2 1/2 per cent,a building or other structure offrame,log,stucco on frame,galvanized iron, orcorrugated iron,construction including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, 5 per cent,a fence, 5 per cent,a scow or a vessel, including furniture, fittings or equipment attached thereto, but not including radiocommunication equipment, 7 1/2 per cent,nonautomotive equipment and machinery, 10 per cent,automotive equipment, a sleigh or a wagon, 15 per cent,radiocommunication equipment, 15 per cent,tile drainage acquired before the 1965 taxation year, 10 per cent,a water storage tank, 5 per cent,a gas well that is part of the equipment of a farm and from which the gas produced is not sold, 10 per cent, anda tool costing less than $100, 100 per cent,of the depreciable cost to the taxpayer of the property.Taxation Years Less Than 12 MonthsWhere a taxation year is less than 12 months, the amount allowed as a deduction under subsection (1) shall not exceed that proportion of the maximum amount otherwise allowable that the number of days in the taxation year is of 365.Property Disposed of During YearWhere a taxpayer has disposed of a property before the end of a taxation year, the amount allowed as a deduction under subsection (1) in respect of that property for the year shall not exceed that proportion of the maximum amount otherwise allowable that the number of months in the taxation year during which the property was owned by the taxpayer is of 12.Leasehold InterestWhere a taxpayer has property that was used for the purpose of gaining or producing income from farming or fishing and that would be included in Class 13 in Schedule II if he had claimed an allowance under Part XI, he may deduct, in computing his income from farming or fishing for a taxation year, an amount not exceeding the amount he could have deducted in respect of that property for the year under paragraph 1100(1)(b).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 10
Maximum Deductions
The amount allowed as a deduction under section 1700 in respect of a property shall not exceed the amount by which the capital cost of the property to the taxpayer exceeds the aggregate of the deductions from income allowed under this Part in respect of the property for previous taxation years.In respect of the 1972 and subsequent taxation years, where subsection 20(5) of the Income Tax Application Rules, applies to a particular property, notwithstanding subsection (1), the amount allowed as a deduction under section 1700 in respect of the property shall not exceed the amount by whichthe amount determined to be the undepreciated capital cost of the property, under paragraph 20(5)(b) of the Income Tax Application Rules,exceedsthe aggregate of the deductions from income allowed under this Part in respect of the property for previous taxation years ending after 1971.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 48
Property not Included
Nothing in this Part shall be construed as allowing a deduction in respect of a propertythe cost of which is deductible in computing the taxpayer’s income;that is described in the taxpayer’s inventory;that was acquired by an expenditure in respect of which the taxpayer is allowed a deduction from income under section 37 of the Act;that has been constituted a prescribed class by subsection 24(2) of chapter 91, S.C. 1966-67;that is included in a separate prescribed class established under subsection 13(14) of the Act;that was not used in the business during the year;that isan animal, ora tree, shrub, herb or similar growing thing;that was not acquired by the taxpayer for the purpose of gaining or producing income from farming or fishing;that has been included at any time by the taxpayer in a class prescribed under Part XI;that is a passenger automobile acquired after June 13, 1963, and before January 1, 1966, the cost to the taxpayer of which, minus the initial transportation charges and retail sales tax in respect thereof, exceeded $5,000, unless the automobile was acquired by a person before June 14, 1963 and has, by one or more transactions between persons not dealing at arm’s length, become vested in the taxpayer; orthat was acquired by the taxpayer after 1971.Where a taxpayer is a member of a partnership, the properties referred to in this Part shall be deemed not to include any property that is an interest of the taxpayer in depreciable property that is partnership property of the partnership.The properties referred to in section 1700 shall be deemed not to include the land upon which a property described therein was constructed or is situated.Where the taxpayer is a non-resident person, the properties referred to in section 1700 shall be deemed not to include property that is situated outside Canada.The provisions of subsections 1102(11), (12) and (13) are applicable mutatis mutandis to paragraph (1)(j).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 15(F), 50(F), 58(F), 70(F), 78(F); SOR/2010-93, s. 15(F)
InterpretationTaxation Years for Individuals in Business
Where a taxpayer is an individual and his income for the taxation year includes income from a business the fiscal period of which does not coincide with the calendar year, in respect of depreciable properties acquired for the purpose of gaining or producing income from the business, a reference in this Part to“the taxation year” shall be deemed to be a reference to the fiscal period of the business; and“the end of the taxation year” shall be deemed to be a reference to the end of the fiscal period of the business.Depreciable CostIn this Part, depreciable cost to a taxpayer of property means, except as otherwise provided, the actual cost of the property to the taxpayer or the amount at which he is deemed under subsection 13(7) of the Act to have acquired the property, as the case may be.Notwithstanding the other provisions of this section, in the case of property the cost of which to a partnership has been determined under paragraph 20(5)(a) of the Income Tax Application Rules, the depreciable cost to the taxpayer of the property for the purposes of this Part shall be deemed to be an amount equal to the cost to the partnership of the particular property as determined under that paragraph.Personal Use of PropertyWhere a taxpayer has, in a taxation year, regularly used a property in part for the purpose of gaining or producing income from farming or fishing and in part for a purpose other than gaining or producing income, the depreciable cost to the taxpayer of the property for the purposes of this Part is the proportion of the amount that would otherwise be the depreciable cost that the use regularly made of the property for the purpose of gaining or producing income from farming or fishing is of the whole use regularly made of the property.Grants, Subsidies or Other Government AssistanceWhere a taxpayer has received or is entitled to receive a grant, subsidy or other assistance from a government, municipality or other public authority in respect of or for the acquisition of property, the depreciable cost to the taxpayer of the property for the purposes of this Part is the amount that would otherwise be the depreciable cost minus the amount of the grant, subsidy or other assistance.Transactions Not at Arm’s LengthWhere property did belong to a person (in this subsection referred to as the “original owner”) and has, by one or more transactions between persons not dealing at arm’s length, become vested in a taxpayer, the depreciable cost to the taxpayer of the property for the purposes of this part is the lesser ofthe actual capital cost of the property to the taxpayer; andthe amount by which the actual capital cost of the property to the original owner exceeds the aggregate ofthe total amount of depreciation for the property that, since the commencement of 1917, has been or should have been taken into account in accordance with the practice of the Department of National Revenue in ascertaining the income of the original owner and all intervening owners for the purposes of the Income War Tax Act or in ascertaining a loss for a year when there was no income under that Act,any accumulated depreciation reserves that the original owner or an intervening owner had for the property at the commencement of 1917 and that were recognized by the Minister for the purposes of the Income War Tax Act, andthe aggregate of the deductions, if any, allowed under this Part in respect of the property to the original owner and all intervening owners.Property Acquired From a ParentNotwithstanding subsection (6), where depreciable property has been acquired by a taxpayer under such circumstances that the provisions of section 85H of the Act as it read in its application to the 1971 and prior taxation years are applicable for the determination of the capital cost of the property, the depreciable cost to the taxpayer of the property for the purposes of this Part is the capital cost as determined under that section.Property Acquired by GiftSubsection (6) does not apply in respect of property which a taxpayer has acquired by gift.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 48, 78(F), 81(F); SOR/2010-93, s. 16(F)
Application of this Part
This Part shall apply only to a taxpayer who, in computing his income, has never claimed an allowance under Part XI in respect of a property at a time when an allowance could have been claimed under this Part in respect of that property, other than an allowance claimed by the taxpayer under Part XI that may be claimed in respect of a property described inparagraph 1100(1)(r) as enacted by Order in Council P.C. 1965-1118 of June 18, 1965 and as amended by Order in Council P.C. 1965-2320 of December 29, 1965;paragraph 1100(1)(sa) as enacted by Order in Council P.C. 1968-2261 of December 10, 1968;paragraph 1100(1)(v); orClass 20 in Schedule II.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 11; SOR/86-1092, s. 9(F); SOR/2010-93, s. 17(F)
InventoriesManner of Keeping Inventories
For the purposes of section 230 of the Act, an inventory shall show quantities and nature of the properties that should be included therein in such a manner and in sufficient detail that the property may be valued in accordance with this Part or section 10 of the Act.
Valuation
Except as provided in section 1802, for the purpose of computing the income of a taxpayer from a business, all the property described in all the inventories of the business may be valued at its fair market value.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-419, s. 1; SOR/94-686, s. 16(F)
Valuation of Animals
Except as provided in subsection (2), a taxpayer who is carrying on a business that includes the breeding and raising of animals may elect in prescribed form for a taxation year and subsequent taxation years to value each animal of a particular species (except a registered animal, an animal purchased for feedlot or similar operations, or an animal purchased by a drover or like person for resale) included in his inventory in respect of the business at a unit price determined in accordance with this section.An election made in accordance with subsection (1) may be revoked in writing by the taxpayer, but where a taxpayer has made a revocation in accordance with this subsection a further election may not be made under subsection (1) except with the concurrence of the Minister.The unit price with respect to an animal of a particular class of animal shall be determined in accordance with the following rules:where animals of a particular class of animal were included in the inventory of a taxpayer at the end of the taxation year immediately preceding the first year in respect of which the taxpayer elected under subsection (1), the unit price of an animal of that class shall be computed by dividing the total value of all animals of the class in the inventory of the preceding year by the number of animals of the class described in that inventory; andin any other case, the unit price of an animal of a class shall be determined by the Minister, having regard, among other things, to the unit prices of animals of a comparable class of animal used in valuing the inventories of other taxpayers in the district.Notwithstanding subsection (1), where the aggregate value of the animals of a particular class determined in accordance with that subsection exceeds the market value of those animals, the animals of that class may be valued at fair market value.In this section,class of animal means a group of animals of a particular species segregated on the basis of age, breed or other recognized division, as determined by the taxpayer at the time of election under this section; (catégorie d’animaux)district means the territory served by a Tax Centre of the Canada Revenue Agency; (district)registered animal means an animal for which a certificate of registration has been issued by the registrar of the breed to which the animal belongs or by the registrar of the Canadian National Livestock Records; (animal enregistré)a reference to “taxation year” shall be deemed to include a reference to the fiscal period of a business.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 17(F), 81(F); SOR/2007-116, s. 6
Investment Income TaxInterpretation
In this Part,benefit under a policy includes a policy dividend, an experience rating refund, a refund of premiums and any amount deemed by paragraph 138.1(1)(g) of the Act for the purposes of Part I of the Act to be a payment under the terms and conditions of the policy, but does not include a policy loan or interest on funds left on deposit with the insurer under the terms of the policy; (prestation)excluded arrangement of an insurer at any time meansa life insurance policy in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), which is at that time a registered life insurance policy, an annuity contract (including a settlement annuity), a group term life insurance policy or an existing guaranteed life insurance policy,a registered pension fund or plan in respect of which the insurer is at that time a plan sponsor, or a retirement compensation arrangement in respect of which the insurer is the custodian,a life insurance policy (other than a life insurance policy in Canada) issued by the insurer before that time (or in respect of which the insurer has before that time assumed the obligations of the issuer of the policy to the policyholder), anda reinsurance arrangement under which the insurer has before that time assumed, directly or indirectly, risks under life insurance policies (other than policies issued by the insurer or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), to the extent that the arrangement relates to those risks; (mécanisme exclu)existing guaranteed life insurance policy at any time means a non-participating life insurance policy in Canada in respect of which the amount of every premium that became payable before that time and after March 2, 1988 was fixed and determined on or before March 2, 1988, adjusted for any specified transaction or event that occurs after March 2, 1988 in respect of the policy; (police d’assurance-vie garantie existante)group term life insurance policy is a group life insurance policy under whichno amount (other than a policy dividend, an experience rating refund or a refund of premiums) may become payable to any person, except in the event of the death or disability of a person whose life was insured under the policy, andno amount may become payable to a person (other than the group policyholder) in respect of a policy dividend, an experience rating refund or a refund of premiums that has been funded by contributions made to or under the policy by another person; (police collective d’assurance temporaire sur la vie)guaranteed interest in respect of a life insurance policy for a taxation year meansin respect of a life insurance policy (other than a pre-funded group life insurance policy), the total of all amounts each of which is the amount in respect of a guaranteed benefit in respect of which an amount is determined under paragraph 1401(1)(a), (c) or (d) for the year, where that benefit is provided under the terms and conditions of the policy as they existed on March 2, 1988, determined by multiplying the greater ofthe rate of interest used by the issuer of the policy in respect of the year in determining the amount of the benefit, and4%by 1/2 of the total ofthe maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the benefit in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan or reinsurance arrangement, andthe maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the benefit in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan or reinsurance arrangement, andin respect of a pre-funded group life insurance policy, 80 per cent of the amount that would be determined under paragraph (a) in respect of the policy for the year, if that paragraph were read without reference to the words “(other than a pre-funded group life insurance policy)”; (intérêts garantis)life insurance policy does not includethat part of a policy in respect of which the policyholder is deemed by paragraph 138.1(1)(e) of the Act to have an interest in a segregated fund trust, ora reinsurance arrangement; (police d’assurance-vie)life insurance policy in Canada does not includethat part of a policy in respect of which the policyholder is deemed by paragraph 138.1(1)(e) of the Act to have an interest in a segregated fund trust, ora reinsurance arrangement; (police d’assurance-vie au Canada)maximum tax actuarial reserve has the meaning assigned by subsection 138(12) of the Act; (réserve actuarielle maximale aux fins de l’impôt)mortality experience of an insurer for a taxation year means the positive or negative amount, as the case may be, determined by the formula(A - B - C)whereAis the total of all amounts each of which is the amount that became payable in the year by the insurer under a taxable life insurance policy of the insurer as a consequence of the receipt of a claim in respect of the death of a person whose life was insured under the policy, determined without reference to any policy loan,Bis the total of all amounts each of which is the amount of a reserve that would be determined in accordance with paragraph 1401(1)(a), (c) or (d), if that amount were determined without reference to any policy loan or reinsurance arrangement, in respect of a taxable life insurance policy of the insurer that would have been released in the year as a consequence of the receipt of a claim in respect of the death of a person whose life was insured under the policy, andCis 90 per cent of the total of all amounts, each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; (facteur de mortalité)mortality loss adjustment account of an insurer at the end of a taxation year is the positive amount, if any, determined by the formulaA + B - CwhereAis the mortality loss adjustment account of the insurer for the immediately preceding taxation year,Biswhere the mortality experience of the insurer for the year is a negative amount, the amount of the mortality experience of the insurer for the year, andin any other case, the amount, if any, by which the amount claimed by the insurer under the description of F in computing the amount determined under subsection (6) for the year exceeds the amount of the mortality loss adjustment account of the insurer for the immediately preceding taxation year, andCis 1.2 times the amount, if any, by whichthe net cost of insurance of the insurer for the yearexceedsthe total of all amounts each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; (compte de redressement pour pertes de mortalité)net cost of insurance of an insurer for a taxation year means the amount, if any, by whichthe amount determined in the description of A in the definition mortality experience in respect of the insurer for the yearexceedsthe amount determined in the description of B in the definition mortality experience in respect of the insurer for the year; (coût net de l’assurance)net level premium in respect of a particular premium under a policy (other than a prepaid premium that cannot be refunded except on termination or cancellation of the policy) meanswhere benefits (other than policy dividends) and premiums (other than the frequency of payment thereof) in respect of the policy have been determined at the date of issue of the policy, the amount determined by the formulaA × (B / C)whereAis the amount of the particular premium,Bis the present value, at the date of issue of the policy, of the amount of the benefits (other than policy dividends) to be provided under the terms of the policy after the issue of the policy, andCis the present value, at the date of issue of the policy, of the amount of the premiums payable under the terms of the policy on or after the issue of the policy, andwhere the amounts of the benefits or premiums in respect of the policy are not determined at the date of issue of the policy, the amount that would be determined under paragraph (a) in respect of the particular premium if the amount were adjusted in a manner that is reasonable in the circumstances and consistent with the manner of the adjustment referred to in the definition modified net premium in subsection 1404(2) in respect of the particular premium; (prime constante nette)net level premium reserve in respect of a life insurance policy for a taxation year means the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in respect of the policy in computing the insurer’s income for the year, if any reference to modified net premium in sections 1401, 1403 and 1404 were a reference to net level premium; (réserve de primes constantes nettes)non-participating life insurance policy means a life insurance policy other than a participating life insurance policy within the meaning assigned by subsection 138(12) of the Act; (police d’assurance-vie sans participation)policy loan has the meaning assigned by subsection 138(12) of the Act; (prêt sur police)pre-funded group life insurance policy means a group term life insurance policy, other than a policy under which each premium payable is in respect of coverage for a period, including the day on which the premium becomes payable, that does not exceed twelve months; (police collective d’assurance-vie par capitalisation anticipée)premium includesconsideration received for settlement annuities,amounts received by an insurer in respect of employee contributions under registered pension funds or plans in respect of which the insurer is a plan sponsor or a retirement compensation arrangement in respect of which the insurer is the custodian, andany amount deemed by paragraph 138.1(1)(h) of the Act for the purposes of Part I of the Act to be a premium received by an insurer,but does not include amounts received in respect of the repayment of a policy loan or in respect of interest on a policy loan and, for greater certainty, the amount of a premium is not reduced by the amount of a refund of premiums; (prime)registered life insurance policy has the meaning assigned by section 211 of the Act; (police d’assurance-vie agréée)reinsurance arrangement does not include an arrangement under which an insurer has assumed the obligations of the issuer of a life insurance policy to the policyholder; (mécanisme de réassurance)segregated fund has the meaning assigned by subsection 138(12) of the Act; (fonds réservé)specified transaction or event in respect of a life insurance policy meansa change in underwriting class,a change in premium due to a change in frequency of premium payments within a year that does not alter the present value, at the beginning of the year, of the total premiums to be paid under the policy in the year,an addition under the terms of the policy as they existed on March 2, 1988, of accidental death, dismemberment, disability or guaranteed purchase option benefits,a deletion of a rider,redating lapsed policies within 60 days after the end of the calendar year in which the lapse occurred, or redating for policy loan indebtedness,a change in premium due to a correction of erroneous information,the payment of a premium after its due date, or no more than 30 days before its due date, as established on or before March 2, 1988, orthe payment of an amount of interest described in subparagraph 148(9)(e.1)(i) of the Act; (opération ou événement déterminé)taxable life insurance policy of an insurer at any time means a life insurance policy in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), other than a policy that is at that time an excluded arrangement. (police d’assurance-vie imposable)For the purposes of this Part,any rider added, at any time after March 2, 1988, to a life insurance policy shall be deemed to be a separate life insurance policy issued at that time; andin respect of an insurer’s first taxation year that commences after June 17, 1987 and ends after 1987, the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act, as the case may be, in computing the insurer’s income for the immediately preceding year shall be determined as though the provisions that apply in determining that maximum amount for that first taxation year were applicable in respect of that immediately preceding year.Prescribed ProvisionsFor the purposes of paragraph (b) of the description of C in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, the provisions of the Act that are prescribed are paragraphs 12(1)(i), (i.1), (n), (n.1), (n.2), (n.3), (o), (t) and (v) and subsections 13(1), 59(3.2) and (3.3), 138(4.4) and 140(2).Prescribed ArrangementsFor the purposes of the description of D in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, prescribed arrangements in respect of an insurer arelife insurance policies in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) that are group term life insurance policies or existing guaranteed life insurance policies;life insurance policies (other than life insurance policies in Canada) issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder);retirement compensation arrangements in respect of which the insurer is the custodian; andreinsurance arrangements under which the insurer has assumed or ceded risks insured under life insurance policies (other than policies issued by the insurer or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder).Prescribed Rules for Determining AmountsThe amount in the description of D in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formulaA - B + C - D - E - FwhereAis the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of an excluded arrangement of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan;Bis the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of an excluded arrangement of the insurer in computing the insurer’s income for the immediately preceding year, if that amount were determined without reference to any policy loan;Cis the total of all amounts each of which is the amount of a benefit, determined on a net of reinsurance ceded basis, that has become payable by the insurer in the year in respect of an excluded arrangement of the insurer, to the extent that the benefit is deducted in computing the insurer’s income for the year under Part I of the Act from carrying on a life insurance business in Canada;Dis the total of all amounts each of which is the amount of a premium, determined on a net of reinsurance ceded basis, that has become receivable by the insurer in the year in respect of an excluded arrangement of the insurer, to the extent that the premium is included in computing the insurer’s income for the year under Part I of the Act from carrying on a life insurance business in Canada;Eis the positive or negative amount, as the case may be, in respect of the insurer for the year determined by the formula(G - H) - (I - J) + (K - L) - (M - N)whereGis the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan or reinsurance arrangement,His the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan,Iis the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan or reinsurance arrangement,Jis the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan,Kis the total of all amounts each of which is the amount of a benefit that has become payable in the year by the insurer under a taxable life insurance policy of the insurer,Lis the total of all amounts each of which is the amount of a benefit, determined on a net of reinsurance ceded basis, that has become payable by the insurer under a taxable life insurance policy of the insurer, to the extent that it is deducted in computing the insurer’s income from carrying on a life insurance business in Canada for the year,Mis the total of all amounts each of which is the amount of a premium that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer, andNis the total of all amounts each of which is the amount of a premium, determined on net of reinsurance ceded basis, that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer, to the extent that the premium is included in computing the insurer’s income from carrying on a life insurance business in Canada for the year; andFis the positive or negative amount, as the case may be, determined by the formulaO + P - Q - RwhereOis the total of all amounts each of which is an amount in respect of a group term life insurance policy equal to the lesser ofthe amount of interest credited by the insurer in the year on account of the policy (other than interest payable in respect of the period ending on its first anniversary date after March 2, 1988), andthe amount, if any, by which the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c.1) in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement, exceeds the maximum amount that would have been so deductible in computing the insurer’s income for the immediately preceding year,Pis 80 per cent of the total of all amounts each of which is the amount in respect of a liability of the insurer, a benefit, a risk or a guarantee, in respect of which an amount is determined under paragraph 1401(1)(a), (c) or (d) for the year, in respect of a pre-funded group life insurance policy of the insurer, determined by multiplyingthe rate of interest used in determining the amount under paragraph 1401(1)(a), (c) or (d), as the case may be, for the year in respect of the liability, benefit, risk or guarantee, as the case may be,by 1/2 of the total ofthe maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the liability, benefit, risk or guarantee, as the case may be, in computing the insurer’s income for the year if that amount were determined without reference to any policy loan or reinsurance arrangement, andthe maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the liability, benefit, risk or guarantee, as the case may be, in computing the insurer’s income for the immediately preceding taxation year if that amount were determined without reference to any policy loan or reinsurance arrangement,Qis the total of all amounts each of which is the amount determined for the year in respect of a taxable life insurance policy of the insurer by multiplyingthe rate of interest used in determining the maximum amount deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in respect of the policy in computing the insurer’s income for the year,by 1/2 of the total ofthe maximum amount that would be deductible under subparagraph 138(3)(a)(ii) of the Act in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement, andthe maximum amount that would have been deductible under subparagraph 138(3)(a)(ii) of the Act in respect of the policy in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any reinsurance arrangement, andRis the total of all amounts each of which is an amount in respect of a group term life insurance policy equal to the amount, if any, by whichthe total of all amounts determined in respect of the insurer under the description of O in respect of the policy for taxation years ending before the yearexceeds the total ofthe total of all amounts determined in respect of the insurer under the description of R in respect of the policy for taxation years ending before the year, andthe maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c.1) in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement.The amount of the term insurance component in the description of E in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formulaA + B + C - D + E - F + G + HwhereAis the amount determined by multiplying 0.0035 by the total of all amounts each of which is the amount of new insurance effected in the year (other than amounts rescinded in the year) under a taxable life insurance policy of the insurer;Bis the amount determined by multiplying 0.0002 by 1/2 of the total ofall amounts of insurance in force at the end of the year under taxable life insurance policies of the insurer (other than paid-up policies), andall amounts of insurance in force at the end of the immediately preceding taxation year under taxable life insurance policies of the insurer (other than paid-up policies);Cis the amount determined by multiplying 0.20 by the net cost of insurance in respect of the insurer for the year;Dis the greater ofthe lesser of $2,500,000 and the amount, if any, by whichthe total of the amounts determined under the descriptions of A, B, C and E in respect of the insurer for the yearexceeds50 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement, andthe amount, if any, by whichthe total of the amounts determined under the descriptions of A, B, C and E in respect of the insurer for the yearexceeds75 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement;Eis the amount determined under the description of D in respect of the insurer for the immediately preceding taxation year;Fis such amount as the insurer may claim, not exceeding the positive amount, if any, determined by addingthe mortality experience of the insurer for the year, andthe amount determined under the description of G in respect of the insurer for the year;Gis the mortality loss adjustment account of the insurer for the immediately preceding year; andHis 1 per cent of the total of all amounts each of which is the amount of a premium that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8).The amount of the amortization adjustment amount in the description of E in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formula(A - B) - (C - D)whereAis the total of all amounts each of which is the amount that would be the net level premium reserve for the year in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance agreement;Bis the total of all amounts each of which is the amount that would be the net level premium reserve for the immediately preceding taxation year in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement;Cis the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in computing the insurer’s income for the year, in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement; andDis the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in computing the insurer’s income for the immediately preceding taxation year, in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement.The amount of guaranteed interest in the description of F in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is the total of all amounts each of which is the guaranteed interest for the year in respect ofa life insurance policy in Canada (other than a policy that was at any time an excluded arrangement), ora pre-funded group life insurance policy,where the policy was issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) and the terms and conditions of the policy relating to premiums and benefits were determined on or before March 2, 1988, except that where, at any time after March 2, 1988, the terms and conditions of the policy relating to premiums and benefits have been changed (other than to give effect to terms and conditions which were determined prior to March 3, 1988 or pursuant to a specified transaction or event), the amount of guaranteed interest in respect of the policy for the year in which the change is made and any subsequent taxation year is deemed to be nil.Prescribed PortionThe prescribed portion of an amount referred to in the description of G in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, for a taxation year iswhere the amount is in respect of a life insurance policy (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), 100 per cent of the amount; andin any other case, nil.Prescribed ArrangementsFor the purposes of the description of G in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, prescribed arrangements of an insurer are life insurance policies in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) that are group term life insurance policies or policies that, at any time, were existing guaranteed life insurance policies.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-316, s. 1
Political ContributionsContents of Receipts
Every official receipt issued by a particular person who is a registered agent of a registered party or an electoral district agent of a registered association, to an individual who makes a monetary contribution to the registered party or registered association, as the case may be, shall contain a statement that it is an official receipt for income tax purposes and shall, in a manner that cannot readily be altered, show clearlythe name of the registered party or registered association, as the case may be;the serial number of the receipt;the name of the particular person, as recorded in the registry maintained by the Chief Electoral Officer under section 374 or 403.08 of the Canada Elections Act;the date on which the receipt is issued;the date on which the monetary contribution is received;the individual’s name and address;the amount of the monetary contribution;a description of the advantage, if any, in respect of the monetary contribution and the amount of that advantage; andthe eligible amount of the monetary contribution.Subject to subsection (3), every official receipt issued by an official agent of a candidate to an individual who makes a monetary contribution to the candidate shall contain a statement that it is an official receipt for income tax purposes and shall, in a manner that cannot readily be altered, show clearlythe name of the candidate, as it appears in the candidate’s nomination papers;the serial number of the receipt;the name of the official agent;the date on which the receipt is issued;the date on which the monetary contribution is received;the polling day;the individual’s name and address;the amount of the monetary contribution;a description of the advantage, if any, in respect of the monetary contribution and the amount of that advantage; andthe eligible amount of the monetary contribution.The information required by paragraph (2)(f) may be shown by use of a code on an official receipt form issued by the Chief Electoral Officer, provided that the Minister is advised of the meaning of the code used.For the purposes of subsections (1) and (2), an official receipt issued to replace an official receipt previously issued shall show clearly that it replaces the original receipt and, in addition to its own serial number, shall show the serial number of the receipt originally issued.A spoiled official receipt form shall be marked “cancelled” and, together with its duplicate, shall be filed by the electoral district agent, the official agent or the registered agent, as the case may be, together with the information return required to be filed with the Minister under subsection 230.1(2) of the Act.An official receipt form on which any of the following is incorrectly or illegibly entered is to be regarded as spoiled:the date on which the monetary contribution is received;the amount of the monetary contribution;a description of the advantage, if any, in respect of the monetary contribution and the amount of that advantage; andthe eligible amount of the monetary contribution.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 388
[Repealed, 2013, c. 34, s. 389][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 389
Interpretation
The following definitions apply in this Part.Chief Electoral Officer means the person named as chief electoral officer or substitute chief electoral officer under section 13 or 14 of the Canada Elections Act. (directeur général des élections)nomination paper means, in respect of a candidate, a nomination paper filed in respect of the candidate under the Canada Elections Act, with the corrections, if any, made under that Act to the nomination paper after its filing. (acte de candidature)official receipt means a receipt issued for the purposes of subsection 127(3) of the Act containing the information that is required under that subsection. (reçu officiel)official receipt form meansin the case of an official receipt issued by an electoral district agent or a registered agent under subsection 2000(1), any printed form that an electoral district agent or a registered agent, as the case may be, has that is capable of being completed, or that originally was intended to be completed, as an official receipt of the electoral district agent or registered agent; andin the case of an official receipt issued by an official agent under subsection 2000(2), the official form prescribed under section 477 of the Canada Elections Act. (formulaire de reçu officiel)In this Part, official agent,polling day and registered agent have the meanings assigned to them by the Canada Elections Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 390
Elections in Respect of SurplusesReduction of Tax-Paid Undistributed Surplus on Hand or 1971 Capital Surplus on Hand
Any election under subsection 83(1) of the Act in respect of a dividend payable before 1979 by a Canadian corporation shall be made by filing with the Minister the following documents:the form prescribed by the Minister;where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation;where paragraph (e) is not applicable, schedules showing the computation of the amount, immediately before the election, of the corporation’stax-paid undistributed surplus on hand, if any,1971 capital surplus on hand, if any, and1971 undistributed income on hand, if any; andwhere subsection 83(3) of the Act is applicable, schedules showing the computation of the amount, immediately before the dividend became payable, of the corporation’stax-paid undistributed surplus on hand, if any,1971 capital surplus on hand, if any, and1971 undistributed income on hand, if any.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-140, s. 2; SOR/83-268, s. 2; SOR/88-165, s. 11; SOR/94-686, s. 79(F)
Capital Dividends and Life Insurance Capital Dividends Payable by Private Corporations[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
Any election under subsection 83(2) of the Act in respect of a dividend payable by a private corporation shall be made by filing with the Minister the following documents:the form prescribed by the Minister;where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation;where the election has been made under subsection 83(2) of the Act and paragraph (e) is not applicable, schedules showing the computation of the amount, immediately before the election, of the corporation’scapital dividend account, and1971 undistributed income on hand, if any, if the dividend was payable on or prior to March 31, 1977; andwhere the election has been made under subsection 83(2) of the Act and subsection 83(3) of the Act is applicable, schedules showing the computation of the amount, immediately before the dividend became payable, of the corporation’scapital dividend account, and1971 undistributed income on hand, if any, if the dividend was payable on or prior to March 31, 1977.[Repealed, SOR/88-165, s. 12][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-604, s. 1; SOR/83-268, s. 3; SOR/84-948, s. 10; SOR/88-165, s. 12; SOR/94-686, s. 79(F)
Tax on 1971 Undistributed Income on Hand
[Repealed, SOR/80-140, s. 3]Any retroactive election by a corporation under subsection 196(1.1) of the Act, in respect of a dividend payable before 1979 in respect of which an election was made under section 83 of the Act, shall be made by filing with the Minister the following documents:the form prescribed by the Minister;where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation; anda schedule showing the computation of the amount, immediately before the time immediately before the specified election referred to in subsection 196(1.1) of the Act was made, of the corporation’s 1971 undistributed income on hand.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-140, s. 3; SOR/83-268, s. 4; SOR/94-686, s. 79(F)
[Repealed, SOR/78-604, s. 2][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-604, s. 2
Capital Gains Dividends Payable by Mutual Fund Corporations, Investment Corporations and Mortgage Investment Corporations[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 18(F)
Any election under subsection 131(1) of the Act in respect of a dividend payable by a mutual fund corporation or an investment corporation shall be made by filing with the Minister the following documents:the form prescribed by the Minister;where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation;where paragraph (f) is not applicable, a schedule showing the computation of the amount, immediately before the election, of the corporation’s capital gains dividend account; and[Repealed, SOR/88-165, s. 13]where subsection 131(1.1) of the Act is applicable, a schedule showing the computation of the amount, immediately before the earlier ofthe date the dividend became payable, andthe first day on which any part of the dividend was paid,of the corporation’s capital gains dividend account.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-704, s. 1; SOR/83-268, s. 5; SOR/88-165, s. 13; SOR/94-686, ss. 71(F), 79(F)
Any election under subsection 130.1(4) of the Act in respect of a dividend payable by a mortgage investment corporation shall be made by filing with the Minister the following documents:the documents referred to in paragraphs 2104(a) to (c); anda schedule showing the computation of the capital gains dividend in accordance with paragraph 130.1(4)(a) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 14; SOR/94-686, ss. 72(F), 79(F)
Capital Gains Dividends Payable by Non-Resident-Owned Investment Corporations[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
Any election under subsection 133(7.1) of the Act in respect of a dividend payable by a non-resident-owned investment corporation shall be made by filing with the Minister the following documents:the form prescribed by the Minister;where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation;where paragraph (e) is not applicable, a schedule showing the computation of the amount, immediately before the election, of the corporation’s capital gains dividend account; andwhere subsection 133(7.3) of the Act is applicable, a schedule showing the computation of the amount, immediately before the earlier ofthe date the dividend became payable, andthe first day on which any part of the dividend was paid,of the corporation’s capital gains dividend account.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-704, ss. 2, 3; SOR/83-268, s. 6; SOR/94-686, s. 79(F)
Alternative to Additional Tax on Excessive Elections
Any election under subsection 184(3) of the Act in respect of a dividend that was paid or payable by a corporation shall be made byfiling with the Minister the following documents:a letter stating that the corporation elects under subsection 184(3) of the Act in respect of the said dividend,where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy oftheir resolution authorizing the election to be made, andtheir declaration that the election is made with the concurrence of all shareholders who received or were entitled to receive all or any portion of the said dividend and whose addresses were known to the corporation,where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy ofthe authorization of the making of the election, andthe declaration that the election is made with the concurrence of all shareholders who received or were entitled to receive all or any portion of the said dividend and whose addresses were known to the corporationby the person or persons legally entitled to administer the affairs of the corporation,a schedule showing the following information:the date of the notice of assessment of the tax that would, but for the election, have been payable under Part III of the Act,the full amount of the said dividend,the date the said dividend became payable, or the first day on which any part of the said dividend was paid if that day is earlier,the portion, if any, of the said dividend described in paragraph 184(3)(a) of the Act,the portion, if any, of the said dividend that the corporation is claiming for the purposes of an election in respect thereof under subsection 83(1) or (2), 130.1(4) or 131(1) of the Act pursuant to paragraph 184(3)(b) of the Act, andthe portion, if any, of the said dividend that is deemed by paragraph 184(3)(c) of the Act to be a separate dividend that is a taxable dividend; andmaking an election in prescribed manner and prescribed form in respect of any amount claimed under paragraph 184(3)(b) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-347, s. 1; SOR/83-268, s. 7; SOR/88-165, s. 31(F); SOR/94-686, s. 79(F)
Tax-deferred Preferred Series
The following series of classes of capital stock are hereby prescribed for the purposes of subsection 83(6) of the Act to be tax-deferred preferred series:The Algoma Steel Corporation, Limited, 8% Tax Deferred Preference Shares Series A;Aluminum Company of Canada, Limited, $2.00 Tax Deferred Retractable Preferred Shares;Brascan Limited, 8 1/2% Tax Deferred Preferred Shares Series A;Canada Permanent Mortgage Corporation, 6 3/4% Tax Deferred Convertible Preference Shares Series A; andCominco Ltd., $2.00 Tax Deferred Exchangeable Preferred Shares Series A.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-604, s. 3
Security Interests[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-322, s. 1
Where, under subsection 220(4) of the Act, the Minister has accepted, as security for payment of taxes, a mortgage or other security or guarantee, he may, by a document in writing, discharge such mortgage or other security or guarantee.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 62
For the purpose of subsection 227(4.2) of the Act, prescribed security interest, in relation to an amount deemed by subsection 227(4) of the Act to be held in trust by a person, means that part of a mortgage securing the performance of an obligation of the person, that encumbers land or a building, where the mortgage is registered pursuant to the appropriate land registration system before the time the amount is deemed to be held in trust by the person.For the purpose of subsection (1), where, at any time after 1999, the person referred to in subsection (1) fails to pay an amount deemed by subsection 227(4) of the Act to be held in trust by the person, as required under the Act, the amount of the prescribed security interest referred to in subsection (1) is deemed not to exceed the amount by which the amount, at that time, of the obligation outstanding secured by the mortgage exceeds the total ofall amounts each of which is the value determined at the time of the failure, having regard to all the circumstances including the existence of any deemed trust for the benefit of Her Majesty pursuant to subsection 227(4) of the Act, of all the rights of the secured creditor securing the obligation, whether granted by the person or not, including guarantees or rights of set-off but not including the mortgage referred to in subsection (1), andall amounts applied after the time of the failure on account of the obligation,so long as any amount deemed under any enactment administered by the Minister, other than the Excise Tax Act, to be held in trust by the person, remains unpaid.For greater certainty, a prescribed security interest includes the amount of insurance or expropriation proceeds relating to land or a building that is the subject of a registered mortgage interest, adjusted after 1999 in accordance with subsection (2), but does not include a lien, a priority or any other security interest created by statute, an assignment or hypothec of rents or leases, or a mortgage interest in any equipment or fixtures that a mortgagee or any other person has the right absolutely or conditionally to remove or dispose of separately from the land or building.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-322, s. 2
Principal Residences
Any election by a taxpayer under subparagraph 40(2)(c)(ii) of the Act shall be made by attaching to the return of income required by section 150 of the Act to be filed by him for his taxation year in which the disposition of the land, including the property that was his principal residence, occurred, a letter signed by the taxpayerstating that he is electing under that subparagraph;stating the number of taxation years ending after the acquisition date (within the meaning assigned by paragraph 40(2)(b) of the Act) for which the property was his principal residence and during which he was resident in Canada; andgiving a description of the property sufficient to identify it with the property designated as his principal residence.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-681, s. 1
Any designation by a taxpayer under subparagraph 54(g)(iii) of the Act shall be made in the return of income required by section 150 of the Act to be filed by him for any taxation year of the taxpayer in whichhe has disposed of a property that is to be designated as his principal residence; orhe has granted an option to acquire such property.
InsurersDefinitions
The definitions in this subsection apply in this Part.attributed surplus of a non-resident insurer for a taxation year is the total ofthe insurer’s property and casualty surplus for the year, andeither,if the insurer elects for the year in prescribed form and manner, 50% of the total ofthe amount that would have been determined at the end of the year in respect of the insurer under subparagraph (a)(ii) of the definition Canadian investment fund, andthe amount that would have been determined at the end of the preceding taxation year in respect of the insurer under subparagraph (a)(ii) of the definition Canadian investment fund,each amount being calculated as if throughout the year and the preceding taxation year the insurer had been a life insurer resident in Canada and had not carried on any insurance business other than a life insurance business or an accident and sickness insurance business, orif the insurer does not elect under subparagraph (i) for the year, 120% of the total of all amounts each of which is 50% of the amount determined in accordance with regulations or guidelines made under Part XIII of the Insurance Companies Act to be the margin of assets in Canada over liabilities in Canada required to be maintained by the insurer as at the end of the year or as at the end of the preceding taxation year in respect of an insurance business carried on in Canada (other than a property and casualty insurance business). (surplus attribué)Canadian business property of an insurer for a taxation year in respect of an insurance business meansif the insurer was resident in Canada throughout the year and did not carry on an insurance business outside Canada in the year, property used or held by it in the year in the course of carrying on the business in Canada; andin any other case, designated insurance property of the insurer for the year in respect of the business. (bien d’entreprise canadien)Canadian equity property of a person or partnership (in this definition referred to as the taxpayer) at any time means property of the taxpayer that isa share of the capital stock of, or an income bond or income debenture issued by, a person (other than a corporation affiliated with the taxpayer) resident in Canada or a Canadian partnership; orthat proportion of property that is shares of the capital stock of an entity that is a corporation affiliated with the taxpayer or an interest in an entity that is a partnership or trust thatthe total value for the taxation year or fiscal period of the entity that includes that time of Canadian equity property of the entityis ofthe total value for the year or period of all property of the entity. (avoir canadien)Canadian investment fund of an insurer at the end of a taxation year meansin the case of a life insurer resident in Canada, the total ofthe amount of the insurer’s Canadian reserve liabilities as at the end of the year (to the extent that the amount exceeds the amount of surplus appropriations included in that amount), andthe greater ofthe amount determined by the formulaC + ((D - E + F) x (G / H))whereCis 8% of the amount determined under subparagraph (i),Dis the total of all amounts each of which is the amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer as at the end of the year,Eis the total of all amounts each of which is the amount of an item reported as an asset that is owned by the insurer at the end of the year and is a share of the capital stock of, or a debt owing to the insurer by, a financial institution affiliated with the insurer,Fis the total of all amounts each of which is the amount as at the end of the year of a debt assumed or incurred by the insurer in respect of the acquisition of an asset described in E (or another property for which an asset described in E is a substituted property),Gis the amount of the insurer’s weighted Canadian liabilities as at the end of the year, andHis the amount of the insurer’s weighted total liabilities as at the end of the year, andthe amount determined by the formula(I − (0.9 × I.1) − (J − (0.9 × J.1)) + K + L) × (M ÷ N)whereIis the total of all amounts each of which is the amount of an item reported as an asset of the insurer as at the end of the year (other than an item that at no time in the year was used or held by the insurer in the course of carrying on an insurance business),I.1is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy,Jis the total of all amounts each of which is the amount of an item reported as a liability of the insurer (other than policyholders’ liabilities or a liability that was at any time in the year connected with an asset that was not used or held by the insurer in the course of carrying on an insurance business at any time in the year) as at the end of the year in respect of an insurance business carried on by the insurer in the year,J.1is the total of all amounts each of which is the contractual service margin for a group of insurance contracts of the insurer at the end of the year (other than a group of segregated fund policies),Kis the total of all amounts each of which is an amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer as at the end of the year,Lis the total of all amounts each of which is an amount of an item reported by the insurer as at the end of the year as a general provision or allowance for impairment in respect of investment property of the insurer for the year,Mis the amount of the insurer’s weighted Canadian liabilities as at the end of the year, andNis the amount of the insurer’s weighted total liabilities as at the end of the year; andin the case of a non-resident insurer, the total ofthe amount of the insurer’s Canadian reserve liabilities as at the end of the year, andthe greatest ofthe total of8% of the amount determined under subparagraph (i), andthe total of all amounts each of which is an amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer as at the end of the year in respect of an insurance business carried on by the insurer in Canada,the amount, if any, by which the total ofthe amount of the insurer’s surplus funds derived from operations as at the end of its preceding taxation year,the total determined under subclause (A)(II) to the extent not included in subclause (I), andthe total of all amounts in respect of which the insurer made an election under subsection 219(4) or (5.2) of the Act, each of which is an amount included in the total determined in respect of the insurer under subparagraph 219(4)(a)(i.1) of the Act as at the end of its preceding taxation yearexceedsthe total of amounts determined in respect of the insurer under subparagraphs 219(4)(a)(ii), (iii), (iv) and (v) of the Act, as at the end of the year, andthe total ofthe amount of the insurer’s attributed surplus for the year, andif the amount under subclause (I) was determined without the taxpayer electing under subparagraph (b)(i) of the definition attributed surplus, the amount determined under subclause (A)(II). (fonds de placement canadien)Canadian investment property of an insurer for a taxation year means an investment property of the insurer for the year (other than, if the insurer is non-resident, property established by the insurer as not being effectively connected with its insurance businesses carried on in Canada in the year) that is, at any time in the year,real property situated in Canada;depreciable property situated in Canada or leased to a person resident in Canada for use inside and outside of Canada;a mortgage, a hypothec, an agreement of sale or any other form of indebtedness in respect of property described in paragraph (a) or (b);a Canadian equity property;a Canadian resource property;a deposit balance of the insurer that is in Canadian currency;a bond, debenture or other form of indebtedness, in Canadian currency, issued bya person resident in Canada or a Canadian partnership, orthe government of Canada, a province or any of their political subdivisions;a property that isa share of the capital stock of a corporation resident in Canada that is affiliated with the insurer, if at least 75% of the total value for the year of all property of the corporation is attributable to property that would be Canadian investment property if it were owned by an insurer, oran interest in a Canadian partnership, or a trust resident in Canada, if at least 75% of the total value for the year of all property of the partnership or trust, as the case may be, is attributable to property that would be Canadian investment property if it were owned by an insurer; oran amount due or an amount accrued to the insurer on account of income thatis from designated insurance property for the year that is Canadian investment property of the insurer for the year because of any of paragraphs (a) to (h), andis supporting the insurer’s Canadian insurance contract liabilities for the year. (bien de placement canadien)Canadian outstanding premiums[Repealed, 2022, c. 19, s. 85]Canadian reserve liabilities of an insurer as at the end of a taxation year means the amount determined by the formulaA − A.1 + A.2 + A.3 − (0.9 × B) − (C − (0.9 × D))whereAis the total of the insurer’s liabilities and reserves including liabilities for segregated fund guarantees (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) reported as at the end of the year in respect oflife insurance policies in Canada,fire insurance policies issued or effected in respect of property situated in Canada, andinsurance policies of any other class covering risks ordinarily within Canada at the time the policy was issued or effected;A.1is the total of all amounts each of which is the amount of an item reported by the insurer as an insurance contract asset as at the end of the year in respect of insurance policies described in any of paragraphs (a) to (c) of the description of A;A.2is the total of all amounts each of which is an amount of funds withheld as at the end of the year by the insurer in respect of the reinsurance of a risk under an insurance policy described in any of paragraphs (a) to (c) of the description of A;A.3is the total of all amounts each which is an amount recoverable as at the end of the year by the insurer under a funds withheld arrangement in respect of the reinsurance of a risk by the insurer under an insurance policy described in any of paragraphs (a) to (c) of the description of A;Bis the total of all amounts each of which is, in respect of a group of insurance contracts of the insurer at the end of the year,the contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy thatis described in any of paragraphs (a) to (c) of the description of A,isa life insurance policy in Canada,a policy that insures risk in respect of a financial loss of a lender on a loan made on the security of real property,a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), ora policy in respect of title insurance (as defined in subsection 1408(1)), andis not a segregated fund policy, andin any other case, the amount that would be the contractual service margin for the group if the amount excluded the portion that is in respect of policies other than policies that meet the conditions in subparagraphs (a)(i) to (iii);Cis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isthe reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount is in respect of the reinsurance ofa risk under a policy other than a policy that meets the condition in subparagraph (a)(i) of the description of B, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andin any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of eithera risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of B, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply; andDis the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of B, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of B. (passif de réserve canadienne)contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12) of the Act. (marge sur services contractuels)deposit balance of an insurer means an amount standing to the insurer’s credit as or on account of amounts deposited with a corporation authorized to accept deposits or to carry on the business of offering to the public its services as a trustee. (solde de dépôt)equity limit of an insurer for a taxation year meansin respect of a life insurer resident in Canada, that proportion of the total of all amounts each of which is the value for the year of an equity property of the insurer thatthe insurer’s weighted Canadian liabilities as at the end of the yearis ofthe insurer’s weighted total liabilities as at the end of the year;in respect of a non-resident insurer (other than a life insurer), 25% of the total ofthe insurer’s mean Canadian reserve liabilities for the year, andthe insurer’s property and casualty surplus for the year; andin respect of a non-resident life insurer, the total ofeither,if the insurer makes an election referred to in subparagraph (b)(i) of the definition attributed surplus for the year, the greater ofthat proportion of the total of all amounts each of which is the value for the year of an equity property of the insurer thatthe insurer’s weighted Canadian liabilities as at the end of the yearis ofthe insurer’s weighted total liabilities as at the end of year, and8% of the insurer’s mean Canadian investment fund for the year, orif the insurer does not make this election for the year, 8% of the insurer’s mean Canadian investment fund for the year,25% of the insurer’s mean Canadian reserve liabilities for the year, and25% of the insurer’s property and casualty surplus for the year. (plafond des avoirs)equity property of a person or partnership (in this definition referred to as the “taxpayer”) at any time means property of the taxpayer that isa share of the capital stock of, or an income bond or income debenture, issued by, another person (other than a corporation affiliated with the taxpayer) or partnership; orthat proportion of property that is shares of the capital stock of a corporation affiliated with the taxpayer or an interest in a partnership or trust thatthe total value for the taxation year or fiscal period of the corporation, partnership or trust that includes that time of equity property of the corporation, partnership or trust, as the case may be,is ofthe total value for the year or period of all property of the corporation, partnership or trust, as the case may be. (avoir)financial institution means a corporation that isa corporation described in any of paragraphs (a) to (e) of the definition restricted financial institution in subsection 248(1) of the Act; ora particular corporation all or substantially all of the value of the assets of which is attributable to shares or indebtedness of one or more corporations described in paragraph (a) to which the particular corporation is affiliated. (institution financière)foreign policy loan[Repealed, 2022, c. 19, s. 85]gross Canadian life investment income of a life insurer for a taxation year means the amount, if any, by which the total of all amounts each of which isthe insurer’s gross investment revenue for the year, to the extent that the revenue is from Canadian business property of the insurer for the year in respect of the insurer’s life insurance business,the amount included in computing the insurer’s income for the year under paragraph 138(9)(b) of the Act,the portion of the amount deducted under paragraph 20(1)(l) of the Act in computing the insurer’s income for its preceding taxation year that was in respect of Canadian business property of the insurer for that year in respect of the insurer’s life insurance business,the amount included under section 142.4 of the Act in computing the insurer’s income for the year in respect of property disposed of by the insurer that was, in the taxation year of disposition, Canadian business property of the insurer for that year in respect of the insurer’s life insurance business,the insurer’s gain for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business, other than a capital property or a property in respect of the disposition of which section 142.4 of the Act applies, orthe insurer’s taxable capital gain for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance businessexceedsthe total of all amounts each of which isthe portion of the amount deducted under paragraph 20(1)(l) of the Act in computing the insurer’s income for the year that is in respect of Canadian business property of the insurer for the year in respect of the insurer’s life insurance business,the amount deductible under section 142.4 of the Act in computing the insurer’s income for the year in respect of a property disposed of by the insurer that was, in the taxation year of disposition, a Canadian business property of the insurer for that year in respect of the insurer’s life insurance business,the insurer’s loss for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business, other than a capital property or a property in respect of the disposition of which section 142.4 of the Act applies, orthe insurer’s allowable capital loss for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business. (revenus bruts de placements en assurance-vie au Canada)group of insurance contracts of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats d’assurance)group of reinsurance contracts held by an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats de réassurance)group of segregated fund policies of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de polices à fonds réservé)investment property of an insurer for a taxation year means non-segregated property owned by the insurer, other than a policy loan payable to the insurer, at any time in the year that isproperty acquired by the insurer for the purpose of earning gross investment revenue in the year, other than property that isproperty, a proportion of which is investment property of the insurer for the year because of paragraph (b),a share of the capital stock of, or a debt owing to the insurer by, a corporation affiliated with the insurer, oran interest in a partnership or trust;that proportion, if any, of property of the insurer that is land, depreciable property or property that would have been depreciable property if it had been situated in Canada and used or held by the insurer in the year in the course of carrying on an insurance business in Canada thatthe use made of the property by the insurer in the year for the purpose of earning gross investment revenue in the yearis ofthe whole use made of the property by the insurer in the year;if the insurer is a life insurer, property described in any of paragraphs 138(4.4)(a) to (d) of the Act;eithera share of the capital stock of, or a debt owing to the insurer by, a corporation (other than a corporation that is a financial institution) affiliated with the insurer, if the total value for the year of all investment property of the corporation for the year is not less than 75% of the total value for the year of all its property, oran interest in a partnership or trust, if the total value for the year of all investment property of the partnership or trust, as the case may be, for the year is not less than 75% of the total value for the year of all its property,and for the purpose of this paragraph (other than for the purpose of determining whether a corporation is a financial institution) every corporation, partnership and trust is deemed to be an insurer; oran amount due or an amount accrued to the insurer on account of income thatis from designated insurance property for the year that is investment property of the insurer for the year because of any of paragraphs (a) to (d), andis supporting the insurer’s Canadian insurance contract liabilities for the year. (bien de placement)liability for incurred claims for a group of insurance contracts of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (passif au titre des sinistres survenus)liability for remaining coverage for a group of insurance contracts of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (passif au titre de la couverture restante)mean Canadian outstanding premiums[Repealed, 2022, c. 19, s. 85]mean Canadian reserve liabilities of an insurer for a taxation year means 50% of the total ofits Canadian reserve liabilities as at the end of the year, andits Canadian reserve liabilities as at the end of its preceding taxation year. (moyenne du passif de réserve canadienne)mean maximum tax actuarial reserve in respect of a particular class of life insurance policies of an insurer for a taxation year means 50% of the total ofits maximum tax actuarial reserve for that class of policies for the year, andits maximum tax actuarial reserve for that class of policies for its preceding taxation year. (provision actuarielle maximale moyenne aux fins d’impôt)mean policy loans[Repealed, 2022, c. 19, s. 85]outstanding premiums[Repealed, 2022, c. 19, s. 85]policyholders’ liabilities of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (obligation envers les titulaires de polices)property and casualty surplus of an insurer for a taxation year means the amount determined by the formula0.075 × (A + B + C + D − E − F) + 0.5 × (G + H)whereAis the total of all amounts each of which is the liability for remaining coverage for a group of insurance contracts of the insurer at the end of the year that is in respect of property and casualty insurance;Bis the total of all amounts each of which is the liability for remaining coverage for a group of insurance contracts of the insurer at the end of the preceding taxation year that is in respect of property and casualty insurance;Cis the total of all amounts each of which is the liability for incurred claims for a group of insurance contracts of the insurer at the end of the year that is in respect of property and casualty insurance;Dis the total of all amounts each of which is the liability for incurred claims for a group of insurance contracts of the insurer at the end of the preceding taxation year that is in respect of property and casualty insurance;Eis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under a policy other than a policy that is in respect of property and casualty insurance, the reinsurance contract held amount for the group, andin any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than policies in respect of property and casualty insurance;Fis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the preceding taxation year, that isif no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under a policy other than a policy that is in respect of property and casualty insurance, the reinsurance contract held amount for the group, andin any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than policies in respect of property and casualty insurance;Gis the insurer’s investment valuation reserve as at the end of the year in respect of its property and casualty insurance business; andHis the insurer’s investment valuation reserve as at the end of its preceding taxation year in respect of its property and casualty insurance business. (excédent provenant de l’assurance de dommages)reinsurance contract held amount for a group of reinsurance contracts held by an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (montant au titre des contrats de réassurance détenus)reinsurance recoverable[Repealed, 2022, c. 19, s. 85]value for a taxation year of a property of a person or partnership (in this definition referred to as the “owner”) means[Repealed, 2022, c. 19, s. 85][Repealed, 2022, c. 19, s. 85]in the case of a property that was not owned by the owner throughout the year, the amount, if any, by whichthat proportion ofthe carrying value of the property as at the end of the preceding taxation year, if the property was owned by the owner at that time,the carrying value of the property as at the end of the year, if the property was owned by the owner at that time and not at the end of the preceding taxation year, andin any other case, the cost of the property to the owner when it was acquired,that the number of days that are in the year and at the end of which the owner owned the property is of the number of days in the year,exceedsthe amount obtained when the interest payable by the owner, for the period in the year during which the property was held by the owner, on debt assumed or incurred by the owner in respect of the acquisition of the property (or another property for which the property is a substituted property) is divided by the average rate of interest payable by the owner (expressed as an annual rate) on the debt for the year; andin the case of any other property, the amount, if any, by which50% of the total ofthe carrying value of the property as at the end of the year, andthe carrying value of the property as at the end of the preceding taxation yearexceedsthe amount obtained when the interest payable by the owner, for the period in the year during which the property was held by the owner, on debt assumed or incurred by the owner in respect of the acquisition of the property (or another property for which the property is a substituted property) is divided by the average rate of interest payable by the owner (expressed as an annual rate) on the debt for the year. (valeur)weighted Canadian liabilities of an insurer as at the end of a taxation year means the amount determined by the formula(3 × A) + BwhereAis the amount determined by the formulaC − (0.9 × D) − (E − (0.9 × F))whereCis the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer in Canada and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year in respect ofa life insurance policy in Canada (other than an annuity), oran accident and sickness insurance policy,Dis the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year, that isthe contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy thatis described in paragraph (a) or (b) of the description of C,isa life insurance policy, ora non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)),is not a segregated fund policy, andis in respect of an insurance business carried on by the insurer in Canada, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv),Eis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isthe reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance ofa risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of D, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andin any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of eithera risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of D, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andFis the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of D, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of D; andBis the amount determined by the formulaG − (0.9 × H) − (I − (0.9 × J))whereGis the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer in Canada and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year except to the extent the liability is in respect ofan insurance policy described in paragraph (a) or (b) of the description of C, ora debt incurred or assumed by the insurer to acquire a property of the insurer,His the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year, that isthe contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy thatis not described in paragraph (a) or (b) of the description of C,isa life insurance policy,a policy in respect of mortgage insurance (as defined in subsection 1408(1)), ora policy in respect of title insurance (as defined in subsection 1408(1)),is not a segregated fund policy, andis in respect of an insurance business carried on by the insurer in Canada, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv),Iis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isthe reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance ofa risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of H, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andin any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of eithera risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of H, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andJis the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of H, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of H. (passif canadien pondéré)weighted total liabilities of an insurer as at the end of a taxation year means the amount determined by the formula(3 × A) + BwhereAis the amount determined by the formulaC − (0.9 × D) − (E − (0.9 × F))whereCis the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year in respect ofa life insurance policy (other than an annuity), oran accident and sickness insurance policy,Dis the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year, that isthe contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy thatis described in paragraph (a) or (b) of the description of C,isa life insurance policy, ora non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), andis not a segregated fund policy, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii),Eis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isthe reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance ofa risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of D, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andin any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of eithera risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of D, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andFis the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of D, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of D; andBis the amount determined by the formulaG − (0.9 × H) − (I − (0.9 × J))whereGis the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year except to the extent the liability is in respect ofan insurance policy described in paragraph (a) or (b) of the description of C, ora debt incurred or assumed by the insurer to acquire a property of the insurer,His the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year, that isthe contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy thatis not described in paragraph (a) or (b) of the description of C,isa life insurance policy,a policy in respect of mortgage insurance (as defined in subsection 1408(1)), ora policy in respect of title insurance (as defined in subsection 1408(1)), andis not a segregated fund policy, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii),Iis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isthe reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance ofa risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andin any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of eithera risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, oran obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andJis the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of H, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of H. (passif total pondéré)Carrying ValueFor the purposes of this Part, the carrying value of a taxpayer’s property for a taxation year, except as otherwise provided in this Part, meansif the taxpayer is an insurer, the amounts reflected in the taxpayer’s non-consolidated balance sheet as at the end of the taxation year accepted (or, if that non-consolidated balance sheet was not prepared, the taxpayer’s non-consolidated balance sheet as at the end of the year that would have been accepted) by the Superintendent of Financial Institutions, in the case of an insurer that is required under the Insurance Companies Act to report to that Superintendent, or by the superintendent of insurance or other similar officer or authority of the province under the laws of which the insurer is incorporated or otherwise formed, in the case of an insurer that is required by law to report to that officer or authority; andin any other case, the amounts that would be reflected in the taxpayer’s non-consolidated balance sheet as at the end of the taxation year if that balance sheet were prepared in accordance with generally accepted accounting principles.[Repealed, 2022, c. 19, s. 85]Application of Certain DefinitionsFor the purposesof subsection 138(14) of the Act, the expressions “Canadian investment fund for a taxation year”, “specified Canadian assets” and “value for the taxation year” have the meanings prescribed for them by subsection 2404(1) as it read in its application to the 1977 taxation year; andof subsection 219(7) of the Act, the expressions “attributed surplus” and “Canadian investment fund” have the meaning prescribed for them by subsection (1).Deeming Rules for Certain AssetsFor the purposes of this Part, other than subsection 2401(6), an asset of an insurer is deemed not to have been used or held by the insurer in a taxation year in the course of carrying on an insurance business if the assetis owned by the insurer at the end of the year; andis a share of the capital stock of, or a debt owing to the insurer by, a financial institution affiliated with the insurer during each of the days in the year during which the insurer owned the asset.For the purposes of clause (a)(ii)(B) of the definition Canadian investment fund in subsection (1), an asset of an insurer is deemed not to have been used or held by the insurer in a taxation year in the course of carrying on an insurance business if the assetis owned by the insurer at the end of the year; andisgoodwill, orof the Act if the obligations were insurance policies in Canada, or (ii) real property (or the portion of real property) owned by the insurer and occupied by the insurer for the purposes of carrying on an insurance business.No Double CountingFor greater certainty, a particular property or a particular proportion of a property shall not, directly or indirectly, be used or included more than once in determining, for a particular taxation year, the Canadian equity property or the equity property of a person or partnership.Transition YearA computation that is required to be made under this Part in respect of an insurer’s taxation year that included September 30, 2006 and that is relevant to a computation (in this subsection referred to as the “transition year computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after that date shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation.A computation that is required to be made under this Part in respect of an insurer’s taxation year that included December 31, 2010 and that is relevant to a computation (in this subsection referred to as the “transition year computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after that date shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation.A computation that is required to be made under this Part in respect of an insurer’s taxation year that immediately precedes the first taxation year that begins after 2022 and that is relevant to a computation (in this subsection referred to as the “transition year computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after 2022 shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4; SOR/88-392, s. 4; SOR/90-661, s. 6; SOR/94-686, ss. 55(F), 62, 79(F); SOR/2000-413, s. 2; 2009, c. 2, s. 102; 2010, c. 25, s. 81; SOR/2011-188, s. 152022, c. 19, s. 852023, c. 26, s. 102
Designated Insurance Property
For the purposes of the definition designated insurance property in subsection 138(12) of the Act, designated insurance property of an insurer for a taxation year means property that is designated in accordance with subsections (2) to (7) for the yearby the insurer in its return of income under Part I of the Act for the year; orif the Minister determines that the insurer has not made a designation that is in accordance with the prescribed rules found in this section, by the Minister.Designation RulesFor the purposes of subsection (1), an insurer, or the Minister if paragraph (1)(b) applies,shall designate for a taxation year investment property of the insurer for the year with a total value for the year equal to the insurer’s mean Canadian reserve liabilities for the year in respect of its life insurance business in Canada;shall designate for a taxation year investment property of the insurer for the year with a total value for the year equal to the insurer’s mean Canadian reserve liabilities for the year in respect of its accident and sickness insurance business in Canada;shall designate for a taxation year in respect of the insurer’s insurance business in Canada (other than a life insurance business or an accident and sickness insurance business) investment property of the insurer for the year with a total value for the year equal to the amount of the insurer’s mean Canadian reserve liabilities for the year in respect of that business;ifthe insurer’s mean Canadian investment fund for a taxation yearexceedsthe total value for the year of all property required to be designated under paragraph (a), (b) or (c) for the year,shall designate for the year, in respect of a particular insurance business that the insurer carries on in Canada, investment property of the insurer for the year with a total value for the year equal to that excess;for greater certainty, under each of paragraphs (a), (b), (c) and (d), shall designate for the taxation year investment property with a total value for the year equal to the amount, if any, determined under each of those paragraphs, and no investment property, or portion of investment property, designated for the year under any of paragraphs (a) to (d) may be designated for the year under any other paragraph; andmay designate for a taxation year a portion of a particular investment property if the designation of the entire property would result in a designation of property with a total value for the year exceeding that required to be designated under paragraphs (a) to (d) for the year.Order of Designation of PropertiesFor the purpose of subsection (2), investment property of an insurer for a taxation year shall be designated for the year in respect of the insurer’s insurance businesses carried on by it in Canada in the following order:Canadian investment property of the insurer for the year owned by the insurer at the beginning of the year that was designated insurance property of the insurer for its preceding taxation year, except that such property shall be designated in the following order:real and depreciable property,mortgages, hypothecs, agreements of sale and other forms of indebtedness in respect of real property situated in Canada or depreciable property situated in Canada or depreciable property leased to a person resident in Canada for use inside and outside of Canada, andother property;investment property (other than Canadian investment property of the insurer for the year) owned by the insurer at the beginning of the year that was designated insurance property of the insurer for its preceding taxation year;Canadian investment property of the insurer for the year (other than property included in paragraph (a)) in the order set out in subparagraphs (a)(i) to (iii); andother investment property.Equity Limit for the YearNotwithstanding subsections (2) and (3),the total value for the year of Canadian equity property of an insurer that may be designated in respect of the insurer’s insurance businesses for a taxation year shall not exceed the insurer’s equity limit for the year; andfor a taxation year a portion of a particular Canadian equity property of an insurer may be designated if the designation of the entire property would result in a designation of Canadian equity property of the insurer for the year with a total value for the year exceeding the insurer’s equity limit for the year.Exchanged PropertyFor the purposes of subsection (3), property acquired by an insurer in a particular taxation year is deemed to be designated insurance property of the insurer in respect of a particular business of the insurer for its preceding taxation year and to have been owned by the insurer at the beginning of the particular taxation year if the property was acquiredby reason ofa transaction to which any of sections 51, 51.1, 85.1 and 86 of the Act applies,a transaction in respect of which an election is made under subsection 85(1) or (2) of the Act,an amalgamation (within the meaning assigned by subsection 87(1) of the Act), or (iv) a winding-up of a corporation to which subsection 88(1) of the Act applies, andas consideration for or in exchange for property of the insurer that was designated insurance property of the insurer in respect of the particular insurance business for its preceding taxation year.Non-investment PropertyNon-segregated property owned by an insurer at any time in a taxation year (other than investment property of the insurer for the year) that is used or held by the insurer in the year in the course of carrying on an insurance business in Canada is deemed to be designated insurance property of the insurer for the year in respect of the business.Policy Loan Excluded from Designated PropertyNotwithstanding any other provision in this Part, a policy loan payable to an insurer is not designated insurance property of the insurer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4; SOR/2000-413, s. 2; 2010, c. 25, 822022, c. 19, s. 86
[Repealed, 2013, c. 34, s. 391][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4; SOR/83-865, s. 7; SOR/90-661, s. 7; SOR/2009-222, s. 2; 2013, c. 34, s. 391
Branch Tax Elections
An election referred to in subsection 219(4) of the Act shall be made by a non-resident insurer in respect of a taxation year by filing, with its return of income required by subsection 150(1) of the Act to be filed for the year, a letter in duplicate statingthe insurer elects under subsection 219(4) of the Act; andthe amount the insurer elects to deduct under subsection 219(4) of the Act.Where a joint election referred to in subsection 219(5.2) of the Act is made by a non-resident insurer and a qualified related corporation (within the meaning assigned by subsection 219(8) of the Act) of the non-resident insurer in respect of a taxation year of the non-resident insurer, it shall be made by filing, with the non-resident insurer’s return of income required by subsection 150(1) of the Act to be filed for the year in which the event to which the election relates occurred, a letter in duplicate signed by an authorized officer of the non-resident insurer and an authorized officer of the qualified related corporation statingwhether paragraphs 219(5.2)(a) and (b) of the Act apply; andthe amount elected under subsection 219(5.2) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4; SOR/81-632, s. 1; SOR/94-686, s. 79(F); SOR/2000-413, s. 3
[Repealed, 2013, c. 34, s. 392][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4; 2013, c. 34, s. 392
[Repealed, 2013, c. 34, s. 392][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-89, s. 1; SOR/79-670, s. 4; SOR/80-419, s. 4; SOR/80-618, s. 6; SOR/81-632, s. 2; SOR/90-661, s. 8; SOR/92-681, s. 3; SOR/94-686, ss. 55, 62, 69(F), 78(F), 79(F); SOR/2009-222, s. 3; 2013, c. 34, s. 392
[Repealed, 2013, c. 34, s. 392][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4. SOR/94-686, s. 55(F); SOR/2000-413, s. 4; 2013, c. 34, s. 392
[Repealed, 2013, c. 34, s. 392][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4; SOR/88-165, s. 30(F); SOR/94-686, s. 55(F); 2013, c. 34, s. 392
[Repealed, 2013, c. 34, s. 392][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4; SOR/80-163, s. 1; SOR/88-165, s. 30(F); SOR/94-686, s. 55(F); 2013, c. 34, s. 392
[Repealed, 2013, c. 34, s. 392][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-670, s. 4; SOR/80-419, s. 5; SOR/90-661, s. 9; 2013, c. 34, s. 392
Prescribed Amount
For the purpose of subsection 138(4.4) of the Act, the amount prescribed in respect of an insurer’s cost or capital cost, as the case may be, of a property for a period in a taxation year is the amount determined by the formula[(A x B) x C / 365] - DwhereAis the average annual rate of interest determined by reference to rates of interest prescribed in section 4301 for the months or portion thereof in the period;Bis the amount, if any, by which, the average cost or average capital cost, as the case may be, of the property for the period exceeds the average amount of debt relating to the acquisition of the property outstanding during the period that bears a fair market interest rate and, for that purpose,the average cost or average capital cost, as the case may be, of a property is the total ofthe aggregate of all amounts each of which is the cost or capital cost, as the case may be, if any, immediately before the beginning of the period in respect of the property, andthe aggregate of all amounts each of which is the proportion of any expenditure incurred on any day in the period in respect of the cost or capital cost, as the case may be, of the property thatthe number of days from that day to the end of the periodis ofthe number of days in the period, andthe average amount of debt relating to the acquisition of a property is the amount, if any, by which the total ofthe aggregate of all amounts each of which is an indebtedness relating to the acquisition that was outstanding at the beginning of the period, andthe aggregate of all amounts each of which is the proportion of an indebtedness relating to the acquisition that was incurred on any day in the period thatthe number of days from that day to the end of the periodis ofthe number of days in the period,exceedsthe aggregate of all amounts each of which is the proportion of an amount that was paid in respect of any indebtedness referred to in subparagraph (i) or (ii) on any day in the period (other than a payment of interest in respect thereof) thatthe number of days from that day to the end of the periodis ofthe number of days in the period;Cis the number of days in the period; andDis the income derived from the property in the period by the person or partnership that owned the property.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.]  SOR/90-661, s. 10; SOR/94-686, ss. 55(F), 78(F), 79(F); SOR/2000-413, s. 5
Subject to subsection (2), the amount prescribed in respect of an insurer for a taxation year for the purposes of paragraph 138(9)(b) of the Act shall be the amount determined by the formulaA - (B + B.1 + C)whereAis the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (3);Bis the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of the insurer’s investment property for the year that is designated insurance property of the insurer for the year;B.1is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4.1) in respect of property disposed of by the insurer in a taxation year for which it was designated insurance property of the insurer; andCis the amount claimed by the insurer for the year in respect of any balance of its cumulative excess account at the end of the year.Where an amount computed under subsection (1) in respect of an insurer is a negative amount, that amount shall be deemed to be nil.The positive or negative amount, as the case may be, determined under this subsection in respect of an insurer for a taxation year shall beif the value for the year of the insurer’s foreign investment property that is designated insurance property for the year is not greater than 5% of the amount of the insurer’s mean Canadian investment fund for the year and the insurer so elects in its return of income under Part I of the Act for the year, the amount determined by the formula{[((A + A.1) / B) x (C + J)] + [(D x F) / E]}orin any other case, the amount determined by the formula{[((A + A.1)/B) x C] + [(D x F)/E] + [((G + G.1)/H) x J]}whereAis the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of Canadian investment property (other than Canadian equity property) owned by the insurer at any time in the year;A.1is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4.1) in respect of Canadian investment property (other than Canadian equity property) disposed of by the insurer in the year or a preceding taxation year;Bis the total value for the year of Canadian investment property (other than Canadian equity property and any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) owned by the insurer at any time in the year;Cis the total value for the year of the insurer’s Canadian investment property for the year (other than Canadian equity property and any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) that is designated insurance property of the insurer for the year;Dis the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of Canadian investment property that is Canadian equity property owned by the insurer at any time in the year;Eis the total value for the year of Canadian investment property that is Canadian equity property (other than any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) owned by the insurer at any time in the year;Fis the total value for the year of the insurer’s Canadian investment property (other than any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) for the year that is Canadian equity property that is designated insurance property of the insurer for the year;Gis the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of foreign investment property owned by the insurer at any time in the year;G.1is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4.1) in respect of foreign investment property disposed of by the insurer in the year or a preceding taxation year;His the total value for the year of foreign investment property (other than any property described in paragraph (e) of the definition investment property in subsection 2400(1)) owned by the insurer at any time in the year; andJis the total value for the year of the insurer’s foreign investment property (other than any property described in paragraph (e) of the definition investment property in subsection 2400(1)) that is designated insurance property of the insurer for the year.The positive or negative amount, as the case may be, determined under this subsection in respect of an insurer for a taxation year in respect of property shall be the amount determined by the formulaA - BwhereAis the total of the following amounts determined in respect of the property for the year, or that would be determined in respect of the property for the year if the property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which the property was held by the insurer:the insurer’s gross investment revenue for the year (other than taxable dividends that were or would be deductible in computing the insurer’s taxable income for the year under section 112 or subsection 138(6) of the Act) derived from the property,[Repealed, SOR/2009-222, s. 4]all amounts that were or would be included in computing the insurer’s taxable capital gains for the year from the disposition of the property,all amounts that were or would be included under paragraph 142.4(5)(e) of the Act in respect of the property in computing the insurer’s income for the year,all amounts that were or would be included in computing the insurer’s income for the year as gains from the disposition of such of the property as is not capital property or a specified debt obligation (as defined in subsection 142.2(1) of the Act),all amounts that were or would be included in computing the insurer’s income for the year under subsection 13(1) of the Act in respect of the property,all amounts that were or would be included in computing the insurer’s income for the year under paragraph 12(1)(d), (d.1) or (i) of the Act in respect of the property,all amounts that were or would be included in computing the insurer’s income for the year under subsection 59(3.2) or (3.3) of the Act in respect of the property, and[Repealed, 2016, c. 12, s. 80]all other amounts that were or would be included in computing the insurer’s income for the year in respect of the property otherwise than because of subsection 142.4(4) of the Act; andBis the total of the following amounts determined in respect of the property for the year, or that would be determined in respect of the property for the year if the property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which the property was held by the insurer:all amounts that were or would be included in computing the insurer’s allowable capital losses for the year from the disposition of the property,all amounts that were or would be deductible under paragraph 142.4(5)(f) of the Act in respect of the property in computing the insurer’s income for the year,all amounts that were or would be deductible in computing the insurer’s income for the year as losses from the disposition of such of the property as is not capital property or a specified debt obligation (as defined in subsection 142.2(1) of the Act),[Repealed, SOR/2009-222, s. 4]all amounts that were or would be deductible in computing the insurer’s income for the year under paragraph 20(1)(a) of the Act in respect of the capital cost of the property or under paragraphs 20(1)(c) and (d) of the Act in respect of interest paid or payable on borrowed money used to acquire the property,where any such property is rental property or leasing property (within the meaning assigned by subsections 1100(14) and (17), respectively), all amounts that were or would be deductible in computing the insurer’s income for the year in respect of expenses directly related to the earning of rental income derived from the property,all amounts that were or would be deductible by the insurer in computing the insurer’s income for the year under paragraph 20(1)(l), (l.1) or (p) of the Act as a reserve or bad debt in respect of the property,all amounts that were deducted or would be deductible in computing the insurer’s income for the year under section 66, 66.1, 66.2 or 66.4 of the Act in respect of the property, and[Repealed, 2016, c. 12, s. 80]all amounts that were or would be deductible in computing the insurer’s income for the year in respect of other expenses directly related to the earning of gross investment revenue derived from the property.The positive or negative amount, as the case may be, determined under this subsection in respect of an insurer for a taxation year in respect of property disposed of by the insurer in the year or a preceding taxation year is the amount determined by the formulaA - BwhereAis the total of the amounts included under paragraphs 142.4(4)(a) and (c) of the Act in the insurer’s income for the year in respect of the property, or that would be so included if the property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which it was held by the insurer; andBis the total of the amounts deductible under paragraphs 142.4(4)(b) and (d) of the Act in respect of the property in computing the insurer’s income for the year, or that would be so deductible if the property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which it was held by the insurer.[Repealed, SOR/2009-222, s. 4]For the purposes of subsection (1), the balance of an insurer’s cumulative excess account at the end of a taxation year shall be determined as the amount, if any, by whichthe aggregate of all amounts each of which is a positive amount, if any, determined in respect of each of such of its seven immediately preceding taxation years that began after June 17, 1987 and ended after 1987 by the formulaB - Awhere A and B are the amounts determined under subsection (1) in respect of the insurer for such immediately preceding taxation year,exceedsthe aggregate of all amounts each of which is an amount claimed by the insurer under subsection (1) in respect of its cumulative excess account for a preceding taxation year that can be attributed to a positive amount determined under paragraph (a) for that year and, for the purpose of this paragraph, a positive amount determined in respect of a taxation year shall be deemed to have been claimed before a positive amount determined in respect of any subsequent taxation year.[Repealed, SOR/2000-413, s. 6]For the purposes of this section, foreign investment property of an insurer means investment property of the insurer (unless the insurer is a non-resident insurer and it is established by the insurer that the investment property is not effectively connected with its Canadian insurance businesses) that is not Canadian investment property of the insurer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-661, s. 10; SOR/92-681, s. 3(F); SOR/94-686, ss. 19(F), 69(F); SOR/2000-413, s. 6; SOR/2005-393, s. 1; SOR/2009-222, s. 4; 2016, c. 12, s. 80
Mean Canadian Investment Fund
For the purposes of this Part, the mean Canadian investment fund of an insurer for a particular taxation year is the total of50% of the total ofits Canadian investment fund at the end of the particular year, andeither,if the insurer is resident in Canada, its Canadian investment fund at the end of its preceding taxation year, orif the insurer is non-resident, its Canadian investment fund at the end of its preceding taxation year determined as if its attributed surplus for that preceding taxation year were its attributed surplus for the particular year, andthe insurer’s cash-flow adjustment for the particular year.Cash-flow AdjustmentAn insurer’s cash-flow adjustment for a taxation year is the amount equal toif the year ended two months or more after it began, the positive or negative amount determined by the formula50% x (A - B / C)whereAis the total of all amounts each of which is the amount determined under subsection (3) in respect of a full month in the year (or in respect of the part of the month that ends after the last full month in the year, if that part is greater than 15 days),Bis the total of all amounts each of which is the amount determined in respect of a full month in the year (or in respect of the part of the month that ends after the last full month in the year, if that part is greater than 15 days) by the formulaD x (1 + 2E)whereDis the amount determined under subsection (3) in respect of the month or part of the month, andEis the number of months in the year that ended before the beginning of the month or part of the month, andCis the number of full months in the year (plus 1, if the year ends more than 15 days after the end of the last full month in the year); andif the year ended less than two months after it began, nil.Amounts Paid and ReceivedThe amount determined in respect of an insurer for a particular month or part of a month (in this subsection referred to as a “month”) in a taxation year is the positive or negative amount determined by the formulaG - HwhereGis the total of all amounts each of which isthe amount of a premium or consideration received by the insurer in the month in respect of a contract of insurance (including a settlement annuity) entered into in the course of carrying on its insurance businesses in Canada,an amount received by the insurer in the month in respect of interest on or a repayment in respect of a policy loan made under a life insurance policy in Canada, oran amount received by the insurer in the month in respect of reinsurance (other than reinsurance undertaken to effect a transfer of a business in respect of which subsection 138(11.5), (11.92) or (11.94) of the Act applies) arising in the course of carrying on its insurance businesses in Canada; andHis the total of all amounts each of which isthe amount of a claim or benefit (including a payment under an annuity or settlement annuity, a payment of a policy dividend and an amount paid on a lapsed or terminated policy), a refund of premiums, a premium or a commission paid by the insurer in the month under a contract of insurance in the course of carrying on its insurance businesses in Canada,the amount of a policy loan made by the insurer in the month under a life insurance policy in Canada, oran amount paid by the insurer in the month in respect of reinsurance (other than reinsurance undertaken to effect a transfer of a business in respect of which subsection 138(11.5), (11.92) or (11.94) of the Act applies) in the course of carrying on its insurance businesses in Canada.A reference to a month in this section meansif an insurer’s taxation year does not begin on the first day of a calendar month and the insurer elects to have this paragraph apply for the year, the period beginning on the day in a calendar month that has the same calendar number as the particular day on which the taxation year began and endingon the day immediately before the day in the next calendar month that has the same calendar number as the particular day, orif the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month; andin any other case, a calendar month.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-661, s. 10; SOR/94-686, s. 55(F); SOR/2000-413, s. 7
Special T1 Tax Table for Individuals
For the purposes of subsection 117(6) of the Act,$55,605, adjusted for each taxation year after 1989 in the manner set out in subsection 117.1(1) of the Act, is the prescribed amount; andan “individual of a prescribed class” for a taxation year isan estate or trust,an individual who was a non-resident person throughout the year, other than an individualwhose amount taxable for the year was fromthe duties of an office or employment performed in one province,the carrying on of a business in one province, orany combination of sources described in subclauses (I) and (II) if all of those sources are located in one province, andwho was not subject to any other provision of this subsection,an individual who, on the last day of the year, resided in a province and had income for the year from a business with a permanent establishment, as defined in subsection 2600(2), outside the province,an individual whose tax otherwise payable for the year under Part I of the Act is reduced by virtue of any of the following provisions of the Act:subsection 117(7),section 121,section 122.3, orsection 126,an individual who makes an election in respect of the year under subsection 119(1) of the Act,an individual eligible to pay tax at a reduced rate pursuant to subsection 40(7) of the Income Tax Application Rules, on a payment made to him in the year, oran individual who makes an election in respect of the year under subsection 110.4(2) of the Act.For the purposes of subsection 117(6) of the Act, a table of the tax payable for a taxation year shall be prepared in accordance with the following rules:the table shall be divided into ranges of amounts taxable not exceeding $10 each and shall specify the tax payable in respect of each range;the tax payable on an amount taxable within any range referred to in paragraph (a) shall be equal to the tax payable thereon for the year computed under subsection 117(2) of the Act and, where applicable, adjusted annually pursuant to section 117.1 of the Act; andthe tax payable referred to in paragraph (b) shall be calculated as if the amount taxable is equal to the average of the highest and lowest amounts taxable in the range and, where the resulting tax payable is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two such multiples, to the higher thereof.For the purposes of subsection 117(6) of the Act, a table of the additional tax for income not earned in a province, the individual surtax and the refundable Quebec abatement for a taxation year shall be prepared in accordance with the following rules:the table shall be divided into ranges of tax payable not exceeding $2 each and shall specify, in respect of each range,the individual surtax payable,where applicable, the additional tax for income not earned in a province, andwhere applicable, the refundable Quebec abatement,on every amount of tax payable within that range;the tax payable referred to in paragraph (a) is the tax payable determined by the table prepared pursuant to subsection (2) less the allowable non-refundable credits under sections 118 to 118.9 of the Act;the individual surtax in respect of an amount of tax payable within any range referred to in paragraph (a) shall be the amount that is equal to the surtax thereon computed under subsection 180.1(1) of the Act;the additional tax for income not earned in a province in respect of an amount of tax payable within any range referred to in paragraph (a) shall be the amount that is equal to the tax determined thereon under subsection 120(1) of the Act;the refundable Quebec abatement in respect of an amount of tax payable within any range referred to in paragraph (a) shall be the amount that is equal to the abatement determined under subsection 120(2) of the Act and in accordance with section 27 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act;the amount referred to in paragraph (c) or (d) shall be calculated as if the tax payable is equal to the average of the highest and lowest amounts in the range and, where the resulting amount is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two such multiples, to the higher thereof; andthe amount referred to in paragraph (e) shall be calculated as if the tax payable is equal to the average of the highest and lowest amounts in the range and, where the resulting amount is not a multiple of one tenth of one dollar, it shall be rounded to the nearest multiple of one tenth of one dollar or, if it is equidistant from two such multiples, to the higher thereof.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-162, s. 2; SOR/81-449, s. 1; SOR/83-757, s. 1; SOR/85-277, s. 1; SOR/86-159, s. 1; SOR/87-535, s. 1; SOR/89-475, s. 1; SOR/90-262, s. 1; SOR/94-686, ss. 48, 50(F)
In this Part, amount taxable has the meaning assigned by subsection 117(2) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-449, s. 1; SOR/83-757, s. 2; SOR/89-475, s. 2
Income Earned in a Province by an IndividualInterpretation
In applying the definition income earned in the year in a province in subsection 120(4) of the Act for an individual’s taxation yearthe prescribed rules referred to in that definition are the rules in this Part; andthe amount determined under those prescribed rules means the total of all amounts each of which is the individual’s income earned in the taxation year in a particular province as determined under this Part.In this Part, permanent establishment means a fixed place of business of the individual, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, andwhere an individual carries on business through an employee or agent, established in a particular place, who has general authority to contract for his employer or principal or who has a stock of merchandise owned by his employer or principal from which he regularly fills orders which he receives, the individual shall be deemed to have a permanent establishment in that place;where an individual uses substantial machinery or equipment in a particular place at any time in a taxation year he shall be deemed to have a permanent establishment in that place; andthe fact that an individual has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise, shall not of itself be held to mean that the individual has a permanent establishment.[Repealed, SOR/81-267, s. 3][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-772, s. 3; SOR/81-267, s. 3; SOR/94-686, s. 20(F); 2009, c. 2, s. 103; SOR/2010-93, s. 18(F)
Residents of Canada
If an individual resides in a particular province on the last day of a taxation year and has no income for the taxation year from a business with a permanent establishment outside the province, the individual’s income earned in the taxation year in the particular province is the individual’s income for the taxation year.If an individual resides in a particular province on the last day of a taxation year and has income for the taxation year from a business with a permanent establishment outside the particular province, the individual’s income earned in the taxation year in the particular province is the amount, if any, by whichthe individual’s income for the taxation yearexceedsthe total of all amounts each of which is the individual’s income for the taxation year from carrying on a business that is earned in a province other than the particular province or in a country other than Canada, determined in accordance with this Part.If an individual, who resides in Canada on the last day of a taxation year and who has carried on business in a particular province at any time in the taxation year, does not reside in the particular province on the last day of the taxation year, the individual’s income earned in the taxation year in the particular province is the individual’s income for the taxation year from carrying on business earned in the particular province, determined in accordance with this Part.If an individual resides in Canada on the last day of a taxation year and carried on business in another country at any time in the taxation year, the individual’s income earned in the taxation year in that other country is the individual’s income for the taxation year from carrying on business earned in the other country, determined in accordance with this Part.In this section, a reference to the “last day of a taxation year” is deemed to be a reference tothe “last day in the year on which the individual resided in Canada”, in the case of an individual who resided in Canada at any time in the year but ceased to reside in Canada before the end of the year; andthe “day in the year on which the individual would have ceased to reside in Canada, if the Act were read without reference to paragraphs 250(1)(d.1) and (f) of the Act,”, in the case of a particular individual described in paragraph 250(1)(d.1) of the Act, or of another individual who is a spouse, common-law partner or child of the particular individual, whowas resident in Canada at any time in the year,would have ceased to be resident in Canada before the end of the year, if the Act were read without reference to paragraphs 250(1)(d.1) and (f) of the Act, andis, pursuant to paragraph 250(1)(d.1) or (f) of the Act, deemed to have been resident in Canada throughout the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-799, s. 1; SOR/2001-188, s. 4; SOR/2007-116, s. 7; SOR/2010-93, s. 19
Non-Residents
Subject to subsection (2), if an individual does not reside in Canada at any time in a taxation year, the individual’s income earned in the taxation year in a province is the total ofthe portion of the taxpayer’s income from an office or employment that is included in the taxpayer’s taxable income earned in Canada for the taxation year under subparagraph 115(1)(a)(i) of the Act and that is reasonably attributable to the duties performed by the taxpayer the province; andthe taxpayer’s income for the taxation year from carrying on business earned in the province, determined in accordance with this Part.Where the aggregate of the amounts of an individual’s income as determined under subsection (1) for all provinces for a taxation year exceeds the aggregate of the amounts of his income described in subparagraphs 115(1)(a)(i) and (ii) of the Act, the amount of his income earned in the taxation year in a particular province shall be that proportion of his income so described that the amount of his income earned in the taxation year in the province as determined under subsection (1) is of the aggregate of all such amounts.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2010-93, s. 20
Income from Business
Where, in a taxation year, an individual had a permanent establishment in a particular province or a country other than Canada and had no permanent establishment outside that province or country, the whole of his income from carrying on business for the year shall be deemed to have been earned therein.Where, in a taxation year, an individual had no permanent establishment in a particular province or country other than Canada, no part of his income for the year from carrying on business shall be deemed to have been earned therein.Except as otherwise provided, where, in a taxation year, an individual had a permanent establishment in a particular province or in a particular country other than Canada and had a permanent establishment outside that particular province or particular country, the amount of the individual’s income for the taxation year from carrying on business that is deemed to have been earned in the particular province or particular country is half of the total ofthat proportion of the individual’s income for the year from carrying on business that the gross revenue for the fiscal period that ends in the taxation year that is reasonably attributable to the permanent establishment in the particular province or particular country is of the individual’s total gross revenue for that period from the business; andthat proportion of the individual’s income for the taxation year from carrying on business that the total of all amounts that are salaries and wages paid in the fiscal period that ends in the taxation year to employees of the permanent establishment in the particular province or particular country is of the total of all amounts that are salaries and wages paid in that period to employees of the business.For the purpose of determining the gross revenue for the year reasonably attributable to the permanent establishment in a particular province or country other than Canada within the meaning of paragraph (3)(a), the following rules shall apply:where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in the particular province or country, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province or country;except as provided in paragraph (c), where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the sale may reasonably be regarded as being attached to the permanent establishment in the particular province or country, the gross revenue derived therefrom shall be attributable to that permanent establishment;where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in a country other than Canada in which the taxpayer has no permanent establishment,if the merchandise was produced or manufactured, or produced and manufactured, entirely in the particular province by the taxpayer, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province, orif the merchandise was produced or manufactured, or produced and manufactured, partly in the particular province and partly in another place by the taxpayer, the gross revenue derived therefrom attributable to the permanent establishment in the province shall be that proportion thereof that the salaries and wages paid in the year to employees of the permanent establishment in the province where the merchandise was partly produced or manufactured (or partly produced and manufactured) is of the aggregate of the salaries and wages paid in the year to employees of the permanent establishments where the merchandise was produced or manufactured (or produced and manufactured);where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in the particular province or country, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province or country;except as provided in paragraph (f), where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the sale may reasonably be regarded as being attached to the permanent establishment in the particular province or country, the gross revenue derived therefrom shall be attributable to that permanent establishment;where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in a country other than Canada in which the taxpayer has no permanent establishment,if the merchandise was produced or manufactured, or produced and manufactured, entirely in the particular province by the taxpayer, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province, orif the merchandise was produced or manufactured, or produced and manufactured, partly in the particular province and partly in another place by the taxpayer, the gross revenue derived therefrom attributable to the permanent establishment in the province shall be that proportion thereof that the salaries and wages paid in the year to employees of the permanent establishment in the province where the merchandise was partly produced or manufactured (or partly produced and manufactured) is of the aggregate of the salaries and wages paid in the year to employees of the permanent establishments where the merchandise was produced or manufactured (or produced and manufactured);where gross revenue is derived from services rendered in the particular province or country, the gross revenue shall be attributable to the permanent establishment in the province or country;where gross revenue is derived from services rendered in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the contract may reasonably be regarded as being attached to the permanent establishment of the taxpayer in the particular province or country, the gross revenue shall be attributable to that permanent establishment;where standing timber or the right to cut standing timber is sold and the timber limit on which the timber is standing is in the particular province or country, the gross revenue from such sale shall be attributable to the permanent establishment of the taxpayer in the province or country; andwhere land is a permanent establishment of the taxpayer in the particular province, the gross revenue which arises from leasing the land shall be attributable to that permanent establishment.Where an individual pays a fee to another person under an agreement pursuant to which that other person or employees of that other person perform services for the individual that would normally be performed by employees of the individual, the fee so paid shall be deemed to be salary paid by the individual and that part of the fee that may reasonably be regarded as payment in respect of services rendered at a particular permanent establishment of the individual shall be deemed to be salary paid to an employee of that permanent establishment.For the purposes of subsection (5), a fee does not include a commission paid to a person who is not an employee of the individual.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 81(F); SOR/2011-195, s. 7
Bus and Truck Operators
Notwithstanding subsections 2603(3) and (4), the amount of income that shall be deemed to have been earned in a particular province or country other than Canada by an individual from carrying on the business of transportation of goods or passengers (other than by the operation of a railway, ships or an airline service) is 1/2 of the aggregate ofthat proportion of his income therefrom for the year that the number of miles travelled by his vehicles in the province or country in the fiscal period ending in the year is of the total number of miles travelled by his vehicles in that period; andthat proportion of his income therefrom for the year that the aggregate of salaries and wages paid in the fiscal period ending in the year to employees of the permanent establishment in the province or country is of the aggregate of all salaries and wages paid in that period to employees of the business.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 81(F)
More than One Business
Where an individual operates more than one business, the provisions of sections 2603 and 2604 shall be applied in respect of each business and the amount of income for the year from carrying on business earned in a particular province or country in the year is the aggregate of the amounts so determined.
Limitations of Business Income
If, in the case of an individual to whom section 2601 applies, the total of the amounts otherwise determined to be the individual’s income for a taxation year from carrying on business that is earned in all provinces and countries other than Canada is greater than the individual’s income for the year, the individual’s income for the year from carrying on business earned in a particular province or country other than Canada is deemed to be that proportion of the individual’s income for the year thatthe individual’s income for the year from carrying on business in the particular province or country as otherwise determinedis ofthat total.If section 114 of the Act applies in respect of an individual for a taxation year, the following rules apply:the portion of subsection (1) before paragraph (a) is to be read as follows in respect of the individual for the year:
If, in the case of an individual to whom section 2601 applies, the total of the amounts otherwise determined to be the individual’s income for a taxation year from carrying on business that is earned in all provinces and countries other than Canada is greater than the individual’s taxable income for the year, the individual’s income for the year from carrying on business earned in a particular province or country other than Canada is deemed to be that proportion of the individual’s taxable income for the year that
for the purpose of this Part, the individual’s income for the year from carrying on a business in any place shall be computed by reference only to the income from that business that is included in computing the individual’s taxable income for the year.For the purposes of sections 2603 to 2605, where an individual’s taxable income for the taxation year is computed in accordance with section 115 of the Act,a reference to a “business” shall be deemed to refer only to a business that was wholly or partly carried on in Canada;a reference to “income for the year from carrying on business” shall be deemed to refer only to income for the year from carrying on a business in Canada, as determined for the purposes of section 115 of the Act;a reference to “salaries and wages paid in the year” shall be deemed to be a reference to salaries and wages paid to employees of his permanent establishments in Canada; anda reference to “total gross revenue for the year” from the business shall be deemed to be a reference to total gross revenue reasonably attributable to his permanent establishments in Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-302, s. 9; SOR/2011-195, s. 8(F)
Dual Residence
Where an individual was resident in more than one province on the last day of the taxation year, for the purposes of this Part, he shall be deemed to have resided on that day only in that province which may reasonably be regarded as his principal place of residence.
Sift Trusts
For the purposes of this Part, if the individual is a SIFT trust, a reference to income earned in a taxation year shall be read as a reference to the amount that would, if this Part were read without reference to this section, be the amount, if any, by which its income for the taxation year exceeds its taxable SIFT trust distributions for the taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2007, c. 29, s. 31
Group Term Life Insurance BenefitsDefinitions & InterpretationDefinitions
The definitions in this subsection apply in this Part.lump-sum premium in relation to a group term life insurance policy means a premium for insurance under the policy on the life of an individual where all or part of the premium is for insurance that is (or would be if the individual survived) in respect of a period that ends more than 13 months after the earlier of the day on which the premium becomes payable and the day on which it is paid. (prime globale)paid-up premium in relation to a group term life insurance policy means a premium for insurance under the policy on the life of an individual where the insurance is for the remainder of the lifetime of the individual and no further premiums will be payable for the insurance. (prime d’assurance libérée)premium category in relation to term insurance provided under a group term life insurance policy means,where the premium rate applicable in respect of term insurance on the life of an individual depends on the group to which the individual belongs, any of the groups for which a premium rate is established, andin any other case, all individuals on whose lives term insurance is in effect under the policy,and, for the purpose of this definition, a single premium rate is deemed to apply for all term insurance under a policy in respect of periods in 1994, and where individuals are divided into separate groups solely on the basis of their age, sex, or both, the groups are deemed to be a single group for which a premium rate is established. (catégorie de primes)term insurance in relation to an individual and a group term life insurance policy means insurance under the policy on the life of the individual, other than insurance in respect of which a lump-sum premium has become payable or been paid. (assurance temporaire)Accidental Death InsuranceFor greater certainty, a premium for insurance on the life of an individual does not include an amount for accidental death insurance.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-494, s. 1
Prescribed Benefit
Subject to subsection (2), for the purpose of subsection 6(4) of the Act, the amount prescribed for a taxation year in respect of insurance under a group term life insurance policy on the life of a taxpayer is the total ofthe taxpayer’s term insurance benefit under the policy for the calendar year in which the taxation year ends,the taxpayer’s prepaid insurance benefit under the policy for that calendar year, andthe total of all sales and excise taxes payable in respect of premiums paid under the policy in that calendar year for insurance on the life of the taxpayer, other thantaxes paid, directly or by way of reimbursement, by the taxpayer, andtaxes in respect of premiums for term insurance that, if the taxpayer were to die, would be paid otherwise thanto the taxpayer,for the benefit of the taxpayer,as a benefit that the taxpayer desired to have conferred on any person.Bankrupt IndividualWhere a taxpayer who has become a bankrupt has two taxation years ending in a calendar year, for the purpose of subsection 6(4) of the Act, the amount prescribed for the first taxation year in respect of insurance under a group term life insurance policy on the life of the taxpayer is nil.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-494, s. 1
Term Insurance BenefitAmount of Benefit
Subject to section 2704, for the purpose of paragraph 2701(1)(a), a taxpayer’s term insurance benefit under a group term life insurance policy for a calendar year iswherethe policyholder elects to determine, under this paragraph, the term insurance benefit for the year of each individual whose life is insured under the policy,no premium rate that applies for term insurance provided under the policy on the life of an individual in respect of the year depends on the age or sex of the individual,no amounts are payable under the policy for term insurance on the lives of individuals in respect of the year other than premiums payable on a regular basis that are based on the amount of term insurance in force in the year for each individual, andthe year is after 1995,the amount determined by the formulaA - BwhereAis the total of the premiums payable for term insurance provided under the policy on the taxpayer’s life in respect of periods in the year, to the extent that each such premium is in respect of term insurance that, if the taxpayer died in the year, would be paid to or for the benefit of the taxpayer or as a benefit that the taxpayer desired to have conferred on any person, andBis the total amount paid by the taxpayer in respect of term insurance under the policy on the taxpayer’s life in respect of the year; andin any other case, the amount, if any, by whichthe total of all amounts each of which is, for a day in the year on which term insurance is in effect under the policy on the taxpayer’s life, the amount determined by the formulaA × BwhereAis the amount of term insurance in effect on that day under the policy on the taxpayer’s life, except the portion, if any, of the amount that, if the taxpayer were to die on that day, would be paid otherwise thanto the taxpayer,to benefit of the taxpayer, oras a benefit that the taxpayer desired to have conferred on any person, andBis the average daily cost of insurance for the year for the premium category in which the taxpayer is included on that dayexceedsthe total amount paid by the taxpayer in respect of term insurance under the policy on the taxpayer’s life in respect of the year.Average Daily Cost of InsuranceThe average daily cost of insurance under a group term life insurance policy for a calendar year for a premium category issubject to paragraph (b), the amount determined by the formula(A + B - C) / DwhereAis the total of the premiums payable for term insurance provided under the policy on the lives of individuals in respect of periods in the year while they are in the premium category,Bis the total of the amounts paid in the year under the policy for term insurance in respect of periods in preceding years (other than amounts that have otherwise been taken into account for the purpose of subsection 6(4) of the Act), to the extent that the total can reasonably be considered to relate to term insurance provided on the lives of individuals in the premium category,Cis the total amount of policy dividends and experience rating refunds paid in the year under the policy and not distributed to individuals whose lives are insured under the policy, to the extent that the total can reasonably be considered to relate to term insurance provided on the lives of individuals in the premium category, andDis the total of all amounts each of which is the amount of term insurance in force on a day in the year on the lives of individuals in the premium category on that day; orthe amount that the policyholder determines using a reasonable method that is substantially similar to the method set out in paragraph (a).Survivor Income BenefitsFor the purposes of this section, where the proceeds of term insurance on the life of an individual are payable in the form of periodic payments, and the periodic payments are not an optional form of settlement of a lump-sum amount, the amount of term insurance in effect on the individual’s life on any day is the present value, on that day, of the periodic payments that would be made if the individual were to die on that day.Determination of Present ValueFor the purpose of subsection (3), the present value on a day in a calendar yearshall be determined using assumptions that are reasonable at some time in the year; andmay be determined assuming that an individual on whose life the present value depends is the same age on that day as on another day in the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-494, s. 1
Prepaid Insurance BenefitAmount of Benefit
Subject to section 2704, for the purpose of paragraph 2701(1)(b), a taxpayer’s prepaid insurance benefit under a group term life insurance policy for a calendar year iswhere the taxpayer is alive at the end of the year, the total of all amounts each of which isa lump-sum premium (other than the taxpayer portion) paid in the year and after February 1994 in respect of insurance under the policy on the life of the taxpayer, other than a paid-up premium paid before 1997, or1/3 of a paid-up premium (other than the taxpayer portion) in respect of insurance under the policy on the life of the taxpayer that was paidafter February 1994 and before 1997, andin the year or one of the two preceding years; andwhere the taxpayer died after June 1994 and in the year, the amount, if any, by whichthe total of all amounts each of which is a lump-sum premium (other than the taxpayer portion) paid under the policy after February 1994 in respect of insurance on the life of the taxpayerexceedsthe portion of that total that was included in computing the taxpayer’s prepaid insurance benefit under the policy for preceding years.Taxpayer Portion of PremiumsFor the purpose of subsection (1), the taxpayer portion of a premium is the portion, if any, of the premium that the taxpayer paid, either directly or by way of reimbursement.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-494, s. 1
Employee-Paid Insurance
For the purpose of subsection 2701(1), where the full cost of insurance under a group term life insurance policy in a calendar year is borne by the individuals whose lives are insured under the policy, each individual’s term insurance benefit and prepaid insurance benefit under the policy for the year is deemed to be nil.Where the premiums for part of the life insurance (in this subsection referred to as the “additional insurance”) under a group term life insurance policy are determined separately from the premiums for the rest of the life insurance under the policy, and it is reasonable to consider that the individuals on whose lives the additional insurance is provided bear the full cost of the additional insurance, the additional insurance, the premiums, policy dividends and experience rating refunds in respect of that insurance, and the amounts paid in respect of that insurance by the individuals whose lives are insured, shall not be taken into account for the purposes of this Part.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-494, s. 1
Prescribed Premium and Insurance
For the purpose of subsection 6(4) of the Act, as it applies to insurance provided in respect of periods that are in 1994 and before July 1994,a lump-sum premium paid under a group term life insurance policy after February 1994 in respect of an individual who is alive at the end of June 1994 is a prescribed premium; andinsurance in respect of which a premium referred to in paragraph (a) is paid is prescribed insurance.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-494, s. 1
Elections in Respect of Accumulating Incomes of Trusts
Any election under subsection 104(14) of the Act in respect of a taxation year shall be made by filing with the Minister a written statementin which the election in respect of the year is made;in which is designated the part of the accumulating income in respect of which the election is being made; andthat is signed by the preferred beneficiary and a trustee having the authority to make the election.The statement shall be filed within 90 days after the end of the trust’s taxation year in respect of which the election referred to in subsection (1) is made.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-164, s. 1; SOR/2007-116, s. 8
Scientific Research and Experimental DevelopmentInterpretation
[Repealed, SOR/2000-296, s. 1]For the purposes of clause 37(8)(a)(i)(B) and subclause 37(8)(a)(ii)(A)(II) of the Act, the following expenditures are directly attributable to the prosecution of scientific research and experimental development:the cost of materials consumed or transformed in such prosecution;where an employee directly undertakes, supervises or supports such prosecution, the portion of the amount incurred for salary or wages of the employee that can reasonably be considered to be in respect of such prosecution; andother expenditures, or those portions of other expenditures, that are directly related to such prosecution and that would not have been incurred if such prosecution had not occurred.For the purposes of subclause 37(8)(a)(ii)(A)(II) of the Act, the following expenditures are directly attributable to the provision of premises, facilities or equipment for the prosecution of scientific research and experimental development:the cost of the maintenance and upkeep of such premises, facilities or equipment; andother expenditures, or those portions of other expenditures, that are directly related to that provision and that would not have been incurred if those premises or facilities or that equipment had not existed.For the purposes of the definition qualified expenditure in subsection 127(9) of the Act, the prescribed proxy amount of a taxpayer for a taxation year, in respect of a business, in respect of which the taxpayer elects under clause 37(8)(a)(ii)(B) of the Act is 55% of the total of all amounts each of which is that portion of the amount incurred in the year by the taxpayer in respect of salary or wages of an employee of the taxpayer who is directly engaged in scientific research and experimental development carried on in Canada that can reasonably be considered to relate to the scientific research and experimental development having regard to the time spent by the employee on the scientific research and experimental development.Subject to subsections (6) to (8), where in subsection (4) the portion of an expenditure is all or substantially all of the expenditure, that portion shall be replaced by the amount of the expenditure.The amount determined under subsection (4) as the prescribed proxy amount of a taxpayer for a taxation year in respect of a business shall not exceed the amount, if any, by whichthe total of all amounts deducted in computing the taxpayer’s income for the year from the business,exceeds the total of all amounts each of which isan amount deducted in computing the income of the taxpayer for the year from the business under any of sections 20, 24, 26, 30, 32, 37, 66 to 66.8 and 104 of the Act, oran amount incurred by the taxpayer in the year in respect of any outlay or expense made or incurred for the use of, or the right to use, a building other than a special-purpose building.In determining the prescribed proxy amount of a taxpayer for a taxation year, the portion of the amount incurred in the year by the taxpayer in respect of salary or wages of a specified employee of the taxpayer that is included in computing the total described in subsection (4) shall not exceed the lesser of75% of the amount incurred by the taxpayer in the year in respect of salary or wages of the employee, andthe amount determined by the formula2.5 × A × B / 365whereAis the Year’s Maximum Pensionable Earnings (as determined under section 18 of the Canada Pension Plan) for the calendar year in which the taxation year ends, andBis the number of days in the taxation year in which the employee is an employee of the taxpayer.Wherea taxpayer is a corporation,the taxpayer employs in a taxation year ending in a calendar year an individual who is a specified employee of the taxpayer,the taxpayer is associated with another corporation (referred to as the “associated corporation”) in a taxation year of the associated corporation ending in the calendar year, andthe individual is an employee of the associated corporation in the taxation year of the associated corporation ending in the calendar year,the total of all amounts that may be included in computing the total described in subsection (4) in respect of salaries or wages of the individual by the taxpayer in its taxation year ending in the calendar year and by all associated corporations in their taxation years ending in the calendar year shall not exceed the amount that is 2.5 times the Year’s Maximum Pensionable Earnings (as determined under section 18 of the Canada Pension Plan) for the calendar year.For the purposes of subsections (4) and (7), an amount incurred in respect of salary or wages of an employee in a taxation year does not includean amount described in section 6 or 7 of the Act;an amount deemed under subsection 78(4) of the Act to have been incurred;bonuses; orremuneration based on profits.For the purpose of subsection (8),an individual related to a particular corporation, anda partnership any member of which is an individual related to a particular corporation or is a corporation associated with a particular corporation,shall be deemed to be a corporation associated with the particular corporation.The depreciable property of a taxpayer that is prescribed for the purposes of the definition first term shared-use-equipment in subsection 127(9) of the Act isa building of the taxpayer;a leasehold interest of the taxpayer in a building;a property of the taxpayer if, at the time it was acquired by the taxpayer, the taxpayer or a person related to the taxpayer intended that it would be used in the prosecution of scientific research and experimental development during the assembly, construction or commissioning of a facility, plant or line for commercial manufacturing, commercial processing or other commercial purposes (other than scientific research and experimental development) and intendedthat it would be used during its operating time in its expected useful life primarily for purposes other than scientific research and experimental development, orthat its value would be consumed primarily in activities other than scientific research and experimental development; andpart of a property of the taxpayer if, at the time the part was acquired by the taxpayer, the taxpayer or a person related to the taxpayer intended that the part would be used in the prosecution of scientific research and experimental development during the assembly, construction or commissioning of a facility, plant or line for commercial manufacturing, commercial processing or other commercial purposes (other than scientific research and experimental development), and intendedthat it would be used during its operating time in its expected useful life primarily for purposes other than scientific research and experimental development, orthat its value would be consumed primarily in activities other than scientific research and experimental development.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-749, s. 1; SOR/86-1136, ss. 3, 4; SOR/94-686, s. 53(F); SOR/95-63, s. 1; SOR/2000-296, s. 1; 2012, c. 31, s. 62
Prescribed Expenditures
For the purposes of paragraph 37.1(5)(c) of the Act, a prescribed expenditure isan expenditure of a current nature incurred by a corporation in respect ofthe general administration or management of a business, includingadministrative salary or wages and related benefits in respect of a person whose duties are not all or substantially all directed to the prosecution of scientific research and experimental development, except to the extent that such expenditure is described in subsection 2900(2) or (3),a legal or accounting fee,an amount described in any of paragraphs 20(1)(c) to (g) of the Act,an entertainment expense,an advertising or selling expense,a convention expense,a due or fee in respect of membership in a scientific or technical society or organization, anda fine or penalty, orthe maintenance and upkeep of premises, facilities or equipment to the extent that such expenditure is not attributable to the prosecution of scientific research and experimental development,except any such expenditure incurred by a corporation that derives all or substantially all of its revenue from the prosecution of scientific research or the sale of rights in or arising out of scientific research carried on by it;an expenditure of a capital nature incurred by a corporation in respect ofthe acquisition of property, except any such expenditure that was incurred for and was all or substantially all attributable to the prosecution, or to the provision of premises, facilities or equipment for the prosecution, of scientific research and experimental development, orthe acquisition of property that is qualified property within the meaning assigned by subsection 127(9) of the Act;an expenditure made to acquire rights in, or arising out of, scientific research; oran expenditure on scientific research in respect of which an amount is deductible under section 110 of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-749, s. 2; SOR/86-488, s. 2; SOR/86-1136, ss. 3, 5; SOR/94-686, ss. 53(F), 63(F), 79(F)
For the purposes of the definition qualified expenditure in subsection 127(9) of the Act, a prescribed expenditure isan expenditure of a current nature incurred by a taxpayer in respect ofthe general administration or management of a business, includingadministrative salary or wages and related benefits in respect of a person whose duties are not all or substantially all directed to the prosecution of scientific research and experimental development, except to the extent that such expenditure is described in subsection 2900(2) or (3),a legal or accounting fee,an amount described in any of paragraphs 20(1)(c) to (g) of the Act,an entertainment expense,an advertising or selling expense,a conference or convention expense,a due or fee in respect of membership in a scientific or technical society or organization, anda fine or penalty, orthe maintenance and upkeep of premises, facilities or equipment to the extent that such expenditure is not attributable to the prosecution of scientific research;an expenditure incurred by a taxpayer in respect ofthe acquisition of property that is qualified property or qualified resource property within the meaning assigned by subsection 127(9) of the Act, orthe acquisition of property that has been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer;an expenditure made to acquire rights in, or arising out of, scientific research and experimental development;an expenditure on scientific research and experimental development in respect of which an amount is deductible under section 110.1 or section 118.1 of the Act; oran expenditure of a taxpayer, to the extent that the taxpayer has received or is entitled to receive a reimbursement in respect of it froma person resident in Canada, other thanHer Majesty in right of Canada or a province,an agent of Her Majesty in right of Canada or a province,a corporation, commission or association that is controlled, directly or indirectly in any manner whatever, by Her Majesty in right of Canada or a province or by an agent of her Majesty in right of Canada or a province, ora municipality in Canada or a municipal or public body performing a function of government in Canada, ora person not resident in Canada to the extent that the said reimbursement is deductible by the person in computing his taxable income earned in Canada for any taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-749, s. 3; SOR/86-488, s. 3; SOR/86-1136, ss. 3, 6; SOR/88-165, s. 15; SOR/94-140, s. 5; SOR/94-686, ss. 53(F), 63(F), 79(F); SOR/95-63, s. 2; 2012, c. 31, s. 63
Special-Purpose Buildings
[Repealed, 2012, c. 31, s. 64][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-602, s. 1; SOR/95-63, s. 3; 2012, c. 31, s. 64
[Repealed, 2013, c. 40, s. 105]
[Repealed, SOR/93-531, s. 1][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-531, s. 1
[Repealed, 2013, c. 40, s. 105][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-1, s. 1; SOR/93-148, s. 1; SOR/94-302, s. 1; SOR/94-632, s. 1; SOR/97-517, s. 1; SOR/2003-5, s. 14; 2013, c. 40, ss. 104, 105
[Repealed, 2013, c. 40, s. 105][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/98-347, s. 1; 2013, c. 40, s. 105
Tax Shelter
Prescribed benefitsFor the purposes of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, means any amount that may reasonably be expected, having regard to statements or representations made in respect of the interest, to be received or enjoyed by a person (in this subsection referred to as the purchaser) who acquires the interest, or a person with whom the purchaser does not deal at arm’s length, which receipt or enjoyment would have the effect of reducing the impact of any loss that the purchaser may sustain in respect of the interest, and includes such an amountthat is, either immediately or in the future, owed to any other person by the purchaser or a person with whom the purchaser does not deal at arm’s length, to the extent thatliability to pay that amount is contingent,payment of that amount is or will be guaranteed by, security is or will be provided by, or an agreement to indemnify the other person to whom the amount is owed is or will be entered into bya promoter in respect of the interest,a person with whom the promoter does not deal at arm’s length, ora person who is to receive a payment (other than a payment made by the purchaser) in respect of the guarantee, security or agreement to indemnify,the rights of that other person against the purchaser, or against a person with whom the purchaser does not deal at arm’s length, in respect of the collection of all or part of the purchase price are limited to a maximum amount, are enforceable only against certain property, or are otherwise limited by agreement, orpayment of that amount is to be made in a foreign currency or is to be determined by reference to its value in a foreign currency and it may reasonably be considered, having regard to the history of the exchange rate between the foreign currency and Canadian currency, that the total of all such payments, when converted to Canadian currency at the exchange rate expected to prevail at the date on which each such payment would be required to be made, will be substantially less than that total would be if each such payment was converted to Canadian currency at the time that each such payment became owing;that the purchaser or a person with whom the purchaser does not deal at arm’s length is entitled at any time to, directly or indirectly, receive or have availableas a form of assistance from a government, municipality or other public authority, whether as a grant, a subsidy, a forgivable loan, a deduction from tax (other than an amount described in clause (b)(i)(B) of the definition tax shelter in subsection 237.1(1) of the Act) or an investment allowance, or as any other form of assistance, orby reason of a revenue guarantee or other agreement in respect of which revenue may be earned by the purchaser or a person with whom the purchaser does not deal at arm’s length, to the extent that the revenue guarantee or other agreement may reasonably be considered to ensure that the purchaser or person will receive a return of all or a portion of the purchaser’s outlays in respect of the interest;that is the proceeds of disposition to which the purchaser may be entitled by way of an agreement or other arrangement under which the purchaser has a right, either absolutely or contingently, to dispose of the interest (otherwise than as a consequence of the purchaser’s death), including the fair market value of any property that the agreement or arrangement provides for the acquisition of in exchange for all or any part of the interest; andthat is owed to a promoter, or a person with whom the promoter does not deal at arm’s length, by the purchaser or a person with whom the purchaser does not deal at arm’s length in respect of the interest.Notwithstanding subsection (1), for the purpose of paragraph b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, does not, except as otherwise provided in subparagraph (1)(b)(ii), include profits earned in respect of the interest.For the purpose of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, includes an amount that is a limited-recourse amount because of subsection 143.2(1), (7) or (13) of the Act, but does not include an amount of indebtedness that is a limited-recourse amountsolely because it is not required to be repaid within 10 years from the time the indebtedness arose where the debtor would, if the interest were acquired by the debtor immediately after that time, bea partnershipat least 90% of the fair market value of the property of which is attributable to the partnership’s tangible capital property located in Canada, andat least 90% of the value of all interests in which are held by limited partners (within the meaning assigned by subsection 96(2.4) of the Act) of the partnership,except where it is reasonable to conclude that one of the main reasons for the acquisition of one or more properties by the partnership, or for the acquisition of one or more interests in the partnership by limited partners, is to avoid the application of this subsection, ora member of a partnership having fewer than six members, except wherethe partnership is a member of another partnership,there is a limited partner (within the meaning assigned by subsection 96(2.4) of the Act) of the partnership,less than 90% of the fair market value of the partnership’s property is attributable to the partnership’s tangible capital property located in Canada, orit is reasonable to conclude that one of the main reasons for the existence of one of two or more partnerships, one of which is the partnership, or the acquisition of one or more properties by the partnership, is to avoid the application of this section to the member’s indebtedness,of a partnershipwherethe indebtedness is secured by and used to acquire the partnership’s tangible capital property located in Canada (other than rental property, within the meaning assigned by subsection 1100(14), leasing property, within the meaning assigned by subsection 1100(17), or specified energy property, within the meaning assigned by subsection 1100(25)), andthe person to whom the indebtedness is repayable is a member of the Canadian Payments Association, andthroughout the period during which any amount is outstanding in respect of the indebtedness,at least 90% of the fair market value of the property of which is attributable to tangible capital property located in Canada of the partnership,at least 90% of the value of all interests in which are held by limited partners (within the meaning assigned by subsection 96(2.4) of the Act) that are corporations, andthe principal business of each such limited partner is related to the principal business of the partnership,except where it is reasonable to conclude that one of the main reasons for the acquisition of one or more properties by the partnership, or for the acquisition of one or more interests in the partnership by limited partners, is to avoid the application of this subsection, orof a corporation where the amount is a bona fide business loan made to the corporation for the purpose of financing a business that the corporation operates and the loan is made under a loan program of the Government of Canada or of a province the purpose of which is to extend financing to small- and medium-sized Canadian businesses.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2011-188, s. 16
Prescribed propertyFor the purpose of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed property, in relation to a tax shelter, means property that is a registered pension plan, a registered retirement savings plan, a deferred profit sharing plan, a registered retirement income fund, a registered education savings plan or a property in respect of which paragraph 40(2)(i) of the Act applies.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2011-188, s. 16
[Repealed, SOR/2011-188, s. 17]
[Repealed, 2007, c. 35, s. 74][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-129, s. 1; SOR/80-682, s. 1; SOR/81-725, s. 2; SOR/84-948, s. 12; SOR/85-696, ss. 7, 8; SOR/88-165, s. 16; SOR/89-409, s. 1; SOR/94-140, s. 6; SOR/2001-187, s. 3; SOR/2003-395, s. 1; 2007, c. 35, s. 74
[Repealed, 2007, c. 35, s. 74][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-725, s. 3; SOR/86-488, s. 4; SOR/88-165, s. 17; SOR/89-102, s. 1; SOR/89-409, s. 2; SOR/92-660, s. 1; SOR/94-126, s. 1; SOR/94-140, s. 7; SOR/97-408, s. 1; SOR/2001-187, s. 4; SOR/2005-15, s. 1; 2007, c. 35, s. 74
[Repealed, SOR/2011-188, s. 17][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-696, s. 9; SOR/2011-188, s. 17
Tax Transfer Payments
For the purposes of subsection 154(2) of the Act, a rate of 45% is prescribed.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-17, s. 8; SOR/2006-1, s. 1
International Development Assistance Programs
For the purposes of paragraphs 122.3(1)(a) and 250(1)(d) of the Act, each international development assistance program of the Canadian International Development Agency that is financed with funds (other than loan assistance funds) provided under External Affairs Vote 30a, Appropriation Act No. 3, 1977-78, or another vote providing for such financing, is hereby prescribed as an international development assistance program of the Government of Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-127, s. 1; SOR/78-349, s. 1; SOR/85-696, s. 10
Gifts[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-269, s. 1; 2011, c. 24, s. 80Interpretation
In this Part,employees’ charity trust means a registered charity that is organized for the purpose of remitting, to other registered charities, donations that are collected from employees by an employer; (fuducie de bienfaisance d’employés)official receipt means a receipt for the purposes of paragraph 110.1(2)(a) or 118.1(2)(a) of the Act, containing information required by section 3501 or 3502; (reçu officiel)official receipt form means any printed form that a registered organization or other recipient of a gift has that is capable of being completed, or that originally was intended to be completed, as an official receipt by it; (formule de reçu officiel)other recipient of a gift means a person, to whom a gift is made by a taxpayer, referred to in any of paragraph 110.1(1)(c), subparagraph 110.1(2.1)(a)(ii) and paragraphs (a) and (d) of the definition qualified donee in subsection 149.1(1) of the Act; (autre bénéficiaire d’un don)registered organization means a registered charity, a registered Canadian amateur athletic association, registered journalism organization or a registered national arts service organization. (organisation enregistrée)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-269, s. 2; SOR/86-488, s. 5; SOR/88-165, s. 18; SOR/94-140, s. 8; SOR/94-686, s. 51(F); 2011, c. 24, s. 81; 2017, c. 33, s. 942019, c. 29, s. 57
Contents of Receipts
Every official receipt issued by a registered organization shall contain a statement that it is an official receipt for income tax purposes and shall show clearly in such a manner that it cannot readily be altered,the name and address in Canada of the organization as recorded with the Minister;the registration number assigned by the Minister to the organization;the serial number of the receipt;the place or locality where the receipt was issued;where the gift is a cash gift, the date on which or the year during which the gift was received;where the gift is of property other than cashthe date on which the gift was received,a brief description of the property, andthe name and address of the appraiser of the property if an appraisal is done;the date on which the receipt was issued;the name and address of the donor including, in the case of an individual, the individual’s first name and initial;the amount that isthe amount of a cash gift, orif the gift is of property other than cash, the amount that is the fair market value of the property at the time that the gift is made;a description of the advantage, if any, in respect of the gift and the amount of that advantage;the eligible amount of the gift;the signature, as provided in subsection (2) or (3), of a responsible individual who has been authorized by the organization to acknowledge gifts; andthe name and Internet website of the Canada Revenue Agency.Every official receipt issued by another recipient of a gift shall contain a statement that it is an official receipt for income tax purposes and shall show clearly in such a manner that it cannot readily be altered,the name and address of the other recipient of the gift;the serial number of the receipt;the place or locality where the receipt was issued;where the gift is a cash gift, the date on which the gift was received;where the gift is of property other than cashthe date on which the gift was received,a brief description of the property, andthe name and address of the appraiser of the property if an appraisal is done;the date on which the receipt was issued;the name and address of the donor including, in the case of an individual, the individual’s first name and initial;the amount that isthe amount of a cash gift, orif the gift is of property other than cash, the amount that is the fair market value of the property at the time that the gift was made;a description of the advantage, if any, in respect of the gift and the amount of that advantage;the eligible amount of the gift;the signature, as provided in subsection (2) or (3.1), of a responsible individual who has been authorized by the other recipient of the gift to acknowledge donations; andthe name and Internet website of the Canada Revenue Agency.Except as provided in subsection (3) or (3.1), every official receipt shall be signed personally by an individual referred to in paragraph (1)(i) or (1.1)(i).Where all official receipt forms of a registered organization aredistinctively imprinted with the name, address in Canada and registration number of the organization,serially numbered by a printing press or numbering machine, andkept at the place referred to in subsection 230(2) of the Act until completed as an official receipt,the official receipts may bear a facsimile signature.Where all official receipt forms of another recipient of the gift aredistinctively imprinted with the name and address of the other recipient of the gift,serially numbered by a printing press or numbering machine, andif applicable, kept at a place referred to in subsection 230(1) of the Act until completed as an official receipt,the official receipts may bear a facsimile signature.An official receipt issued to replace an official receipt previously issued shall show clearly that it replaces the original receipt and, in addition to its own serial number, shall show the serial number of the receipt originally issued.A spoiled official receipt form shall be marked “cancelled” and such form, together with the duplicate thereof, shall be retained by the registered organization or the other recipient of a gift as part of its records.Every official receipt form on which any of the following is incorrectly or illegibly entered is deemed to be spoiled:the date on which the gift is received;the amount of the gift, in the case of a cash gift;a description of the advantage, if any, in respect of the gift and the amount of that advantage; andthe eligible amount of the gift.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-269, s. 3; SOR/2007-74, s. 1; 2013, c. 34, s. 393
Contents of Information Returns
Every information return required to be filed under subsection 110.1(16) or 118.1(27) of the Act in respect of a transfer of property must containa description of the transferred property;the fair market value of the transferred property at the time of the transfer;the date on which the property was transferred;the name and address of the transferee of the property including, in the case of an individual, their first name and initial; andif the transferor of the property, or a person not dealing at arm’s length with the transferor, issued the receipt referred to in subsection 110.1(14) or 118.1(25) of the Act, the information contained in that receipt.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2011, c. 24, s. 82
Employees’ Charity Trusts[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 9(F), SOR/94-686, s. 51(F)
Wherea registered organizationis an employees’ charity trust, orhas appointed an employer as agent for the purpose of remitting, to that registered organization, donations that are collected by the employer from the employer’s employees, andeach copy of the return required by section 200 to be filed for a year by an employer of employees who donated to the registered organization in that year showsthe amount of each employee’s donations to the registered organization for the year collected by the employer, andthe registration number assigned by the Minister to the registered organization,section 3501 shall not apply and the copy of the portion of the return, relating to each employee who made a donation to the registered organization in that year, that is required by section 209 to be distributed to the employee for filing with the employee’s income tax return shall be an official receipt.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 10; SOR/94-686, s. 51(F)
[Repealed, 2018, c. 12, s. 44][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-411, s. 1; SOR/94-686, s. 51(F); 2011, c. 24, s. 83; 2018, c. 12, s. 44
Prescribed Donees
For the purposes of subparagraphs 110.1(2.1)(a)(ii) and 118.1(5.4)(a)(ii) of the Act, the following are prescribed donees:American Friends of Canadian Nature Inc., a charity established in the United States;The Nature Conservancy, a charity established in the United States; andAmerican Friends of Canadian Land Trusts.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-488, s. 6; SOR/94-140, s. 11; SOR/94-686, s. 51(F); SOR/2007-74, s. 2; SOR/2010-197, s. 1; 2013, c. 34, s. 394SOR/2024-231, s. 6
Conditions
[Repealed, 2017, c. 20, s. 32][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 104; 2017, c. 20, s. 32
Reserves for Surveys
For the purposes of paragraph 20(1)(o) of the Act, the amount hereby prescribed isfor the third taxation year preceding the taxation year during which a survey is scheduled to occur, the amount that is 1/4 of the estimate of the expenses of the survey;for the second taxation year preceding the taxation year during which a survey is scheduled to occur, the amount that is 1/2 of the estimate of the expenses of the survey;for the first taxation year preceding the taxation year during which a survey is scheduled to occur, the amount that is 3/4 of the estimate of the expenses of the survey; andfor the taxation year during which a survey is scheduled to occur, if the quadrennial or other special surveys have not, at the end of the year, been completed to the extent that the vessel is permitted to proceed on a voyage, the amount remaining after deducting from the estimate of the expenses of the survey the amount of expenses actually incurred in the year in carrying out the survey.In this section,classification society means a society or association for the classification and registry of shipping approved by the Minister of Transport under the Canada Shipping Act; (société de classification)estimate of the expenses of survey means a fair and reasonable estimate, made by a taxpayer at the time of filing his return of income for the third taxation year preceding the taxation year in which a quadrennial survey is scheduled to occur, of the costs, charges and expenses which might be expected to be necessarily incurred by him by reason of that survey and in respect of which he does not have or possess nor is he likely to have or possess any right of reimbursement, recoupment, recovery or indemnification from any other person or source; (évaluation des dépenses d’expertise)inspector means a steamship inspector appointed under Part VIII of the Canada Shipping Act; (inspecteur)quadrennial survey means a periodical survey, not being an annual survey nor a survey coinciding as to time with the construction of a vessel, in accordance with the rules of a classification society or, an extended inspection, not being an annual inspection nor an inspection coinciding as to time with the construction of a vessel, pursuant to the provisions of the Canada Shipping Act, and the regulations thereunder; (expertise quadriennale)survey means the drydocking of a vessel, the examination and inspection of its hull, boilers, machinery, engines and equipment by an inspector or a surveyor and everything done to such vessel, its hull, boilers, machinery, engines and equipment pursuant to an order, requirement or recommendation given or made by the inspector or surveyor as the result of the examination and inspection so that a safety and inspection certificate might be issued in respect of the vessel pursuant to the provisions of the Canada Shipping Act, and the regulations thereunder or, as the case may be, so that the vessel might be entitled to retain the character assigned to it in the registry book of a classification society; (expertise)surveyor means a surveyor to a classification society. (expert)
Registered Charities[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 51(F)
[Repealed, 2010, c. 25, s. 83][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/87-632, s. 1; SOR/94-686, ss. 51(F), 73(F); 2007, c. 35, s. 75; 2010, c. 25, s. 83
Disbursement Quota
For the purposes of the description of B in the definition disbursement quota in subsection 149.1(1) of the Act, the prescribed amount for a taxation year of a registered charity is determined as follows:choose a number, not less than two and not more than eight, of equal and consecutive periods that total twenty-four months and that end immediately before the beginning of the year;aggregate for each period chosen under paragraph (a) all amounts, each of which is the value, determined in accordance with section 3702, of a property, or a portion of a property, owned by the registered charity, and not used directly in charitable activities or administration, on the last day of the period;aggregate all amounts, each of which is the aggregate of values determined for each period under paragraph (b); anddivide the aggregate amount determined under paragraph (c) by the number of periods chosen under paragraph (a).For the purposes of subsection (1) and subject to subsection (3),the number of periods chosen by a registered charity under paragraph (1)(a) shall, unless otherwise authorized by the Minister, be used for the taxation year and for all subsequent taxation years; anda registered charity is deemed to have existed on the last day of each of the periods chosen by it.The number of periods chosen under paragraph (1)(a) may be changed by the registered charity for its first taxation year commencing after 1986 and the new number shall, unless otherwise authorized by the Minister, be used for that taxation year and all subsequent taxation years.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/87-632, s. 1; SOR/94-686, s. 51(F); 2010, c. 25, s. 84
Determination of Value
For the purposes of subsection 3701(1), the value of a property, or a portion of a property, owned by a registered charity, and not used directly in charitable activities or administration, on the last day of a period is determined as of that day to bein the case of a non-qualified investment of a private foundation, the greater of its fair market value on that day and its cost amount to the private foundation;subject to paragraph (c), in the case of property other than a non-qualified investment that isa share of a corporation that is listed on a designated stock exchange, the closing price or the average of the bid and asked prices of that share on that day or, if there is no closing price or bid and asked prices on that day, on the last preceding day for which there was a closing price or bid and asked prices,a share of a corporation that is not listed on a designated stock exchange, the fair market value of that share on that day,an interest in real property or a real right in an immovable, the fair market value on that day of the interest or right less the amount of any debt of the registered charity incurred in respect of the acquisition of the interest or right and secured by the interest or right, where the debt bears a reasonable rate of interest,a contribution that is the subject of a pledge, nil,an interest, or for civil law a right, in property where the registered charity does not have the present use or enjoyment of the interest or right, nil,a life insurance policy, other than an annuity contract, that has not matured, nil, anda property not described in any of subparagraphs (i) to (vi), the fair market value of the property on that day; andin the case of any property described in paragraph (b) that is owned in connection with the charitable activities of the registered charity and is a share of a limited-dividend housing company referred to in paragraph 149(1)(n) of the Act or a loan, that has ceased to be used for charitable purposes and is being held pending disposition or for use in charitable activities, or that has been acquired for use in charitable activities, the lesser of the fair market value of the property on that day and an amount determined by the formula(A / 0.035) x (12 / B)whereAis the income earned on the property in the period, andBis the number of months in the period.For the purposes of subsection (1), a method that the Minister may accept for the determination of the fair market value of property or a portion thereof on the last day of a period is an independent appraisal madein the case of property described in subparagraph (1)(b)(ii) or (iii), not more than three years before that day; andin the case of property described in paragraph (1)(a), subparagraph (1)(b)(vii) or paragraph (1)(c), not more than one year before that day.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/87-632, s. 1; SOR/94-686, ss. 22(F), 51(F), 73(F), 79(F); 2007, c. 35, s. 76; 2010, c. 25, s. 85
Information Returns
For the purpose of subsection 149.1(14) of the Act, the following is prescribed information for the public information return of a charity in a taxation year:in respect of each grantee organization that received total qualifying disbursements from the charity in excess of $5,000 in the taxation year, the name of the grantee organization;the purpose of each qualifying disbursement made to a grantee organization referred to in paragraph (a) in the taxation year; andthe total amount disbursed by the charity to each grantee organization referred to in paragraph (a) in the taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2022, c. 10, s. 40
Social Insurance Number Applications
Every individual who is required by subsection 237(1) of the Act to apply to the Minister of National Health and Welfare for assignment to him of a Social Insurance Number shall do so by delivering or mailing to the local office of the Canada Employment and Immigration Commission nearest to the individual’s residence, a completed application in the form prescribed by the Minister for that purpose.
Mining Taxes
The following definitions apply in this section.income of a taxpayer for a taxation year from mining operations in a province means the income, for the taxation year, that is derived from mining operations in the province as computed under the laws of the province that impose an eligible tax described in subsection (3). (revenu)mine includes any work or undertaking in which a mineral ore is extracted or produced and includes a quarry. (mine)mineral ore includes an unprocessed mineral or mineral-bearing substance. (minerai)mining operations meansthe extraction or production of mineral ore from or in a mine;the transportation of mineral ore to the point of egress from the mine; andthe processing ofmineral ore (other than iron ore) to the prime metal stage or its equivalent, andiron ore to a stage that is not beyond the pellet stage or its equivalent. (exploitation minière)non-Crown royalty means a royalty contingent on production of a mine or computed by reference to the amount or value of production from mining operations in a province but does not include a royalty that is payable to the Crown in right of Canada or a province. (redevance non gouvernementale)processing includes all forms of beneficiation, smelting and refining. (transformation)For the purpose of paragraph 20(1)(v) of the Act, the amount allowed for a taxation year in respect of taxes on income from mining operations of a taxpayer is the total of all amounts each of which isan eligible tax that is paid or payable by the taxpayeron the income of the taxpayer for the taxation year from mining operations, oron a non-Crown royalty included in computing the income of the taxpayer for the taxation year;an eligible tax that is paid by the taxpayer in the taxation year on either the income of the taxpayer for a previous taxation year from mining operations or a non-Crown royalty included in computing the income of the taxpayer for a previous taxation year, ifthe amount was deductible in computing the income of the taxpayer for the previous taxation year,the amount has not been deducted in computing the income of the taxpayer for a taxation year that is prior to the taxation year, andan assessment of the taxpayer to take into account a deduction in respect of the eligible tax under the Act for the previous taxation year would be precluded because of subsections 152(4) to (5) of the Act; orinterest in respect of eligible tax referred to in paragraph (a) or (b) that is paid in the taxation year by the taxpayer to the province imposing the eligible tax.An eligible tax referred to in subsection (2) isa tax, on the income of a taxpayer for a taxation year from mining operations in a province, that islevied under a law of the province,imposed only on persons engaged in mining operations in the province, andpaid or payable tothe province,an agent of Her Majesty in right of the province, ora municipality in the province, in lieu of taxes on property or on any interest, or for civil law any right, in property (other than in lieu of taxes on residential property or on any interest, or for civil law any right, in residential property); anda tax, on an amount received or receivable by a person as a non-Crown royalty, that islevied under a law of a province,imposed specifically on persons who hold a non-crown royalty on mining operations in the province, andpaid or payable to the province or to an agent of Her Majesty in right of the province.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 12; SOR/94-686, s. 23(F); SOR/2006-207, s. 1; SOR/2007-212, s. 12023, c. 26, s. 103
Borrowed Money Costs
[Repealed, SOR/81-251, s. 1][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-251, s. 1
Interest on Insurance Policy Loans
For the purposes of subsection 20(2.1) of the Act, the amount of interest to be verified by the insurer in respect of a taxpayer shall be verified in prescribed form no later than the last day on which the taxpayer is required to file his return of income under section 150 of the Act for the taxation year in respect of which the interest was paid.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-142, s. 2; SOR/79-488, s. 1; SOR/84-224, s. 1
Representation Expenses
For the purposes of subsection 20(9) of the Act, an election shall be made by filing with the Minister the following documents in duplicate:a letter from the taxpayer specifying the amount in respect of which the election is being made; andwhere the taxpayer is a corporation, a certified copy of the resolution of the directors authorizing the election to be made.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
Valuation of Annuities and Other Interests
For the purposes of subparagraph 115E(f)(i) of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), the value of any income right, annuity, term of years, life or other similar estate or interest in expectancy shall be determined in accordance with the rules and standards, including standards as to mortality and interest, as are prescribed by the Estate Tax Regulations pursuant to the provisions of subparagraph 58(1)(s)(i) of the Estate Tax Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 48
Interest RatesInterpretation
For the purposes of this Part, quarter means any of the following periods in a calendar year:the period beginning on January 1 and ending on March 31;the period beginning on April 1 and ending on June 30;the period beginning on July 1 and ending on September 30; andthe period beginning on October 1 and ending on December 31. (trimestre)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-63, s. 1; SOR/78-909, s. 2; SOR/79-958, s. 1; SOR/80-931, s. 1; SOR/82-20, s. 1; SOR/82-322, s. 1; SOR/82-598, s. 1; SOR/82-1097, s. 1; SOR/83-237, s. 1; SOR/83-496, s. 1; SOR/84-372, s. 1; SOR/85-696, s. 11; SOR/86-488, s. 7; SOR/87-639, s. 1
Prescribed Rate of Interest
Subject to section 4302, for the purposes ofevery provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General, the prescribed rate in effect during any particular quarter is the total ofthe rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and4 per cent;every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister to a taxpayer, the prescribed rate in effect during any particular quarter is the total ofthe rate determined under subparagraph (a)(i) in respect of the particular quarter, andif the taxpayer is a corporation, zero per cent, and in any other case, 2 per cent;subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; andevery other provision of the Act in which reference is made to a prescribed rate of interest or to interest at a prescribed rate, the prescribed rate in effect during any particular quarter is the rate determined under subparagraph (a)(i) in respect of the particular quarter.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/84-372, s. 2; SOR/87-639, s. 1; SOR/89-462, s. 1; SOR/95-285, s. 1; SOR/97-557, s. 4; 2010, c. 12, s. 23; 2012, c. 31, s. 65SOR/2024-231, s. 7(F)
Notwithstanding section 4301, for the purposes of paragraph 16.1(1)(d) of the Act and subsection 1100(1.1), the interest rate in effect during any month is the rate that is one percentage point greater than the rate that was, during the month before the immediately preceding month, the average yield, expressed as a percentage per year rounded to two decimal points, prevailing on all outstanding domestic Canadian-dollar Government of Canada bonds on the last Wednesday of that month with a remaining term to maturity of over 10 years, as first published by the Bank of Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-196, s. 4
Publicly-traded Shares or Securities
For the purposes of section 24 and subsection 26(11) of the Income Tax Application Rules,a share or security named in Schedule VII is hereby prescribed to be a publicly-traded share or security; andfor each such share or security, the amount set out in Column II of Schedule VII opposite that share or security is hereby prescribed as the amount, if any, prescribed in respect of that property.In Schedule VII, the abbreviation“Cl” means “Class”;“Com” means “Common”;“Cv” means “Convertible”;“Cu” means “Cumulative”;“Pc” means “Per Cent”;“Pr” means “Preferred” or “Preference” as the case may be;“Pt” means “Participating”;“Rt” means “Right”; and“Wt” means “Warrant”.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 48
Elections in Respect of Expropriation Assets
Any election by a taxpayer under subsection 80.1(1), (2), (4), (5), (6) or (9) of the Act shall be made on or before the day on or before which the return of income is required to be filed pursuant to section 150 of the Act for the taxation year in which the assets referred to in the particular election were acquired by him.
Investment Tax CreditQualified Property[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-131, s. 1
Property is a prescribed building for the purposes of the definitions qualified property and qualified resource property in subsection 127(9) of the Act if it is depreciable property of the taxpayer that is a building or grain elevator and it is erected on land owned or leased by the taxpayer,that is included in Class 1, 3, 6, 20, 24 or 27 or paragraph (c), (d) or (e) of Class 8 in Schedule II; orthat is included or would, but for Class 28, 41, 41.1 or 41.2 in Schedule II, be included in paragraph (g) of Class 10 in Schedule II.Property is prescribed machinery and equipment for the purposes of the definitions qualified property and qualified resource property in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1)) that isa property included in paragraph (k) of Class 1 or paragraph (a) of Class 2 in Schedule II;an oil or water storage tank;a property included in Class 8 in Schedule II (other than railway rolling stock);a vessel, including the furniture, fittings and equipment attached thereto;a property included in paragraph (a) of Class 10 or Class 22 or 38 in Schedule II (other than a car or truck designed for use on highways or streets);notwithstanding paragraph (e), a logging truck acquired after March 31, 1977 to be used in the activity of logging and having a weight, including the weight of property the capital cost of which is included in the capital cost of the truck at the time of its acquisition (but for greater certainty not including the weight of fuel), in excess of 16,000 pounds;a property included in any of paragraphs (b) to (f), (h), (j), (k), (o), (r), (t) or (u) of Class 10 in Schedule II, or property included in paragraph (b) of Class 41 in Schedule II and that would otherwise be included in paragraph (j), (k), (r), (t) or (u) of Class 10 in Schedule II;a property included in paragraph (n) of Class 10, or Class 15, in Schedule II (other than a roadway);a property included in any of paragraphs (a) to (f) of Class 9 in Schedule II;a property included in Class 28, in paragraph (a), (a.1), (a.2) or (a.3) of Class 41 or in Class 41.1 or 41.2 in Schedule II that would, but for Class 28, 41, 41.1 or 41.2, as the case may be, be included in paragraph (k) or (r) of Class 10 of Schedule II;a property included in Class 21, 24, 27, 29, 34, 39, 40, 43, 45, 46, 50, 52 or 53 in Schedule II;a property included in paragraph (c) or (d) of Class 41 in Schedule II;property included in Class 43.1 in Schedule II because of paragraph (c) of that Class; ora property included in Class 43.2 in Schedule II because of paragraph (a) of that Class.Property is prescribed energy generation and conservation property for the purposes of the definition qualified property in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1) or (2)) that is a property included in any of subparagraph (a.1)(i) of Class 17 and Classes 43.1, 43.2 and 48 in Schedule II.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 5; SOR/80-69, s. 1; SOR/80-131, s. 2; SOR/80-618, s. 7(E); SOR/81-974, s. 13; SOR/88-165, s. 19; SOR/90-22, s. 6; SOR/94-169, s. 3; SOR/94-686, s. 66(F); SOR/98-97, s. 4; SOR/99-179, s. 10; SOR/2005-371, s. 5; SOR/2005-414, s. 4; SOR/2006-117, s. 6; SOR/2011-9, s. 5; 2012, c. 31, s. 66; 2013, c. 34, s. 395, c. 40, s. 106; 2015, c. 36, s. 22
Qualified Transportation Equipment
For the purposes of the definition qualified transportation equipment in subsection 127(9) of the Act, the following depreciable property of a taxpayer (other than qualified property as defined by subsection 127(9) of the Act) is prescribed equipment:property that isincluded in Class 1 in Schedule II by virtue of paragraph (h) or (i) of that Class,a bridge, culvert, subway or tunnel included in Class 1 in Schedule II that is ancillary to railway track and grading,a trestle included in Class 3 in Schedule II that is ancillary to railway track and grading,machinery or equipment included in Class 8 in Schedule II that is ancillary torailway track and grading, orrailway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor,included in Class 10 in Schedule II by virtue of subparagraph (m)(i), (ii) or (iii) of that Class, orproperty described in paragraph (m) of Class 10 in Schedule II (other than property described in subparagraph (iv) thereof) that is included in Class 28 or 41 in Schedule II;property that isincluded in Class 6 in Schedule II by virtue of paragraph (j) of that Class,machinery or equipment included in Class 8 in Schedule II thatwas acquired principally for the purpose of maintaining or servicing, oris ancillary to and used as part of,a railway locomotive or railway car, orincluded in Class 35 in Schedule II;property that isa truck, tractor or trailer thatis included in Class 10 in Schedule II because of paragraph (e) of that Class or in Class 16 in Schedule II because of paragraph (g) of that Class,is designed for the purpose of carrying freight, or hauling a trailer that carries freight, on highways, and[Repealed, SOR/85-696, s. 12]in the case of a truck or tractor, has a “gross vehicle weight rating” (within the meaning assigned that expression by the Motor Vehicle Safety Regulations) of 26,001 pounds or more, and in the case of a trailer, is of a type designed to be hauled under normal operating conditions by a truck or tractor described in this subparagraph,but for greater certainty,was not acquired principally for the purpose of carrying or hauling freight locally or making local pickups or deliveries, ormachinery or equipment included in Class 8 or 10 in Schedule II that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act;property included in Class 10 in Schedule II by virtue of paragraph (a) of that Class that is a bus designed for the purpose of seating 20 or more passengers and carrying their luggage, but not includinga bus acquired principally for the purpose of transportation within any metropolitan area, city, town, village, municipality or other similar community or area, ora school bus;property that isa vessel included in Class 7 in Schedule II (other than a vessel under construction),machinery or equipment included in Class 7 or 8 in Schedule II that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act, ora vessel included in a separate class prescribed by subsection 1101(2a);property that isincluded in Class 9 in Schedule II by virtue of paragraph (g) of that Class, ormachinery or equipment included in Class 9 in Schedule II by virtue of paragraph (h) or (i) of that Class that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act; andproperty included in Class 8 in Schedule II that is a reusable cargo container designed with external fittings for the purpose of handling, securing or stacking and having a carrying capacity of 500 cubic feet or more.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-131, s. 3; SOR/85-696, s. 12; SOR/88-165, s. 20; SOR/90-22, s. 7; SOR/92-681, s. 3(F); SOR/95-244, s. 4; SOR/2005-371, s. 6(F); SOR/2010-93, s. 21(F)
Certified Property
For the purposes of the definition certified property in subsection 127(9) of the Act, each of the following areas is a prescribed area:that portion of the Province of Newfoundland comprising the census divisions 2 to 4 and 7 to 10;that portion of the Province of Prince Edward Island comprising the Kings census division;that portion of the Province of Nova Scotia comprising the census divisions ofCape Breton,Guysborough,Inverness,Richmond, andVictoria;that portion of the Province of New Brunswick comprising the census divisions ofGloucester,Kent,Madawaska,Northumberland, andRestigouche;that portion of the Province of Quebec comprisingall of the area north of the 50th parallel of latitude, other than the area within the limits of the city of Sept-Iles,the Magdalen Islands, andthe census divisions ofBonaventure,Gaspé-Est,Gaspé-Ouest,Matane,Matapédia,Rimouski, other than the area within the limits of the city of Rimouski,Rivière-du-Loup, andTémiscouata;that portion of the Province of Ontario that is north of the 50th parallel of latitude;that portion of the Province of Manitoba comprising the census divisions 19 and 21 to 23, other than the area within the limits of the city of Thompson;that portion of the Province of Saskatchewan comprising the census division of Northern Saskatchewan;that portion of the Province of Alberta comprising the census division of Peace River, other than the area within the limits of the city of Grande Prairie;that portion of the Province of British Columbia comprising the Peace River-Liard census division; andall of the Yukon Territory and the Northwest Territories.For the purposes of subsection (1), the expression “census divisions” has the same meaning as in the Dictionary of 1971 Census Terms, Statistics Canada Catalogue Number 12-540, and the Census Divisions and Subdivisions, Statistics Canada Catalogues Numbered 92-704, 92-705, 92-706 and 92-707.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-880, s. 1; SOR/86-1092, s. 11(F); SOR/88-165, s. 21
Qualified Construction Equipment
For the purposes of the definition qualified construction equipment in subsection 127(9) of the Act, prescribed equipment means depreciable property of a taxpayer, other than qualified property as defined by subsection 127(9) of the Act or qualified transportation equipment as defined by subsection 127(9) of the Act, that isa property included in Class 22 or 38 in Schedule II;a crane;a pile driver; ora dredge.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-696, s. 13; SOR/88-165, s. 22; SOR/90-22, s. 8
Approved Project Property
For the purposes of paragraphs (a) and (c) of the definition approved project property in subsection 127(9) of the Act, property is a prescribed building if it is depreciable property of the taxpayer that is a building or grain elevator, erected on land owned or leased by the taxpayer,that is included in Class 1, 3, 6, 24, 27 or 37 or paragraph (c), (d) or (e) of Class 8 in Schedule II; orthat is included or would, but for Class 28 or Class 41 in Schedule II, be included in paragraph (g) of Class 10 in Schedule II.For the purposes of paragraphs (b) and (d) of the definition approved project property in subsection 127(9) of the Act, property is prescribed machinery and equipment if it is depreciable property of the taxpayer (other than property referred to in subsection (1)) that isa property included in paragraph (k) of Class 1 or paragraph (a) of Class 2 in Schedule II;an oil or water storage tank;a property included in Class 8 in Schedule II (other than railway rolling stock);subject to paragraph (e), a property included in paragraph (a) of Class 10 or Class 22 or 38 in Schedule II (other than a car or truck designed for use on highways or streets);a logging truck acquired to be used in the activity of logging and having a weight, including the weight of property the capital cost of which is included in the capital cost of the truck at the time of its acquisition (but for greater certainty not including the weight of fuel), in excess of 16,000 pounds;a property included in any of paragraphs (b) to (f), (h) to (k), (o), (q), (r), (t) or (u) of Class 10 in Schedule II;a property included in paragraph (n) of Class 10, or Class 15, in Schedule II (other than a roadway);a property included in any of paragraphs (a) to (f) of Class 9 in Schedule II;a property included in Class 28 or 41 in Schedule II that would, but for that classes, be included in paragraph (k) or (r) of Class 10 in Schedule II;a property included in any of Classes 21, 24, 27, 29, 34, 39, 40 and 43 in Schedule II;a property included in Class 37 in Schedule II; ora vessel (other than a supply boat, workboat, drilling rig, workover rig or shuttle tanker), including the furniture, fittings and equipment attached thereto, that is used primarily forheavy-lifting or pipe-laying in the construction of, orthe provision of lodging services in the servicing of,an installation, structure, apparatus or artificial island that is used for offshore hydrocarbon exploration or exploitation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 7; SOR/90-22, s. 9; SOR/94-169, s. 4
Prescribed Activities
For the purposes of the definition for an approved purpose in paragraph (e) of the definition approved project property in subsection 127(9) of the Act, a prescribed activity of a taxpayer isoperating a hotel, motel, camping ground, travel trailer park or any similar lodging facility;providing facilities that are ancillary to a lodging facility referred to in paragraph (a) that is owned by the taxpayer and that are intended for the use and enjoyment of the occupants of the lodging facility;providing facilities that are primarily for the receiving, storage and distribution of goods owned by persons with whom the taxpayer deals at arm’s length;providing to a business owned by a person with whom the taxpayer deals at arm’s lengthengineering or architectural services,computer services, orother technical or scientific services,but not including financial, legal, accounting, medical or dental services;providing to a business owned by a person with whom the taxpayer deals at arm’s lengththe services of an employment agency, oradvertising services, other than advertising services in a medium owned by the taxpayer; oroperating a vessel described in paragraph 4604(2)(l).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 7
Prescribed Amount
For the purposes of paragraph (b) of the definition contract payment in subsection 127(9) of the Act, a prescribed amount is an amount received from the Canadian Commercial Corporation in respect of an amount received by that Corporation from a government, municipality or other public authority other than the government of Canada or of a province, a Canadian municipality or other Canadian public authority.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 7; SOR/94-686, s. 24(F)
Prescribed Designated Regions
For the purposes of the definition specified percentage in subsection 127(9) of the Act, prescribed designated region means a region of Canada, other than the Gaspé peninsula and the provinces of Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland, including Labrador, that was a designated region on December 31, 1984, under the Regional Development Incentives Designated Region Order, 1974.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 23
Prescribed Expenditure for Qualified Canadian Exploration Expenditure
In this section,joint exploration corporation has the meaning assigned by paragraph 66(15)(g) of the Act; (société d’exploration en commun)principal-business corporation has the meaning assigned by paragraph 66(15)(h) of the Act; (société exploitant une entreprise principale)shareholder corporation has the meaning assigned by paragraph 66(15)(i) of the Act; (société actionnaire)well means an exploratory probe or an oil or gas well. (puits)For the purposes of the definition qualified Canadian exploration expenditure in subsection 127(9) of the Act, the prescribed expenditure of a taxpayer for a taxation year is the aggregate of all amounts each of which is the amount, if any, by whichthe specified expenses of the taxpayer for the year in respect of the wellexceedthe base amount of the taxpayer at the end of the year in respect of the well.For the purposes of this section, the specified expenses of a taxpayer for a taxation year in respect of a well that is an exploratory probe is the aggregate of all expenses thatwould be Canadian exploration expenses of the taxpayer by reason of any of subparagraphs 66.1(6)(a)(i), (iv) and (v) of the Act if the references in subparagraphs 66.1(6)(a)(iv) and (v) of the Act (as those subparagraphs read on November 30, 1985) to “any of subparagraphs (i) to (iii.1)” were read as references to “subparagraph (i)”;were incurredin the year, andafter November 1985 and before 1991;were incurred in the drilling or completing of the exploratory probe or in building a temporary access road to, or preparing the site in respect of, the probe; andare not non-qualifying expenses of the taxpayer.For the purposes of this section, the specified expenses of a taxpayer for a taxation year in respect of a well that is an oil or gas well is the aggregate of all expenses thatwould be Canadian exploration expenses of the taxpayer by virtue of any of subparagraphs 66.1(6)(a)(ii) to (ii.2), (iv) and (v) of the Act if the references in subparagraphs 66.1(6)(a)(iv) and (v) of the Act (as those subparagraphs read on November 30, 1985) to “subparagraphs (i) to (iii.1)” were read as references to “subparagraphs (ii) to (ii.2)”;were incurred in respect of the wellin the year, andafter November 1985 and before 1991; andare not non-qualifying expenses of the taxpayer.For the purposes of subsections (3) and (4), a non-qualifying expense of a taxpayer is an expense thatmay reasonably be regarded as having been incurred as consideration for services to be rendered after 1990 or for property that cannot reasonably be considered to be for use by the taxpayer before 1991;was or is to be renounced by the taxpayer at any time under subsection 66(10.1) or (12.6) of the Act;is or was a Canadian exploration and development overhead expense, within the meaning of section 1206, of the taxpayer, of a partnership of which the taxpayer was a member or of a joint exploration corporation of which the taxpayer was a shareholder corporation;is an eligible cost or expense within the meaning of the Petroleum Incentives Program Act or the Petroleum Incentives Program Act, Chapter P-4.1 of the Statutes of Alberta, 1981, in respect of which, or in respect of part of which, the taxpayer, a partnership of which the taxpayer was a member, a joint exploration corporation of which the taxpayer was a shareholder corporation or a principal-business corporation of which the taxpayer was a shareholder, has received, is deemed to have received, is entitled to receive or may reasonably be expected to receive an incentive under either of those Acts; orwas included in determining the specified expenses of any other taxpayer for a taxation year.For the purposes of this section, the base amount of a taxpayer at the end of a particular taxation year in respect of a well is the amount, if any, by which the taxpayer’s threshold amount in respect of the well exceeds the aggregate ofall amounts that would have been the taxpayer’s specified expenses for any taxation year in respect of the well ifthe references in subparagraphs (3)(b)(ii) and (4)(b)(ii) to “after November 1985 and before 1991” were read as “after March 1985 and before December 1985”, andsubsection (5) were read without reference to paragraph (d) thereof;all amounts referred to in paragraph (5)(d) for the particular taxation year or a preceding taxation year in respect of the well that would have been included in determining the taxpayer’s specified expenses for the particular taxation year or the preceding taxation year but for that paragraph; andall amounts that are the taxpayer’s specified expenses for any preceding taxation year in respect of the well.For the purposes of this section, the threshold amount of a taxpayer in respect of a well iswhere no agreement has been filed with the Minister under subsection (8) in respect of the well, $5,000,000; andwhere an agreement has been filed with the Minister under subsection (8) in respect of the well, the amount, if any, allocated to the taxpayer under the agreement.For the purposes of this section, where the aggregate of all expenses in respect of a well, each of whichwould be included in determining the specified expenses of a taxpayer for a taxation year in respect of the well if subsection (5) were read without reference to paragraph (d) thereof, orwould be included in determining the specified expenses of a taxpayer for a taxation year in respect of the well ifthe references in subparagraphs (3)(b)(ii) and (4)(b)(ii) to “after November 1985 and before 1991” were read as “after March 1985 and before December 1985”, andsubsection (5) were read without reference to paragraph (d) thereof,exceeds $5,000,000, all taxpayers who have incurred those expenses or in whose favour or to whom any of those expenses have been renounced under subsection 66(10.1) or (12.6) of the Act may file with the Minister an agreement in writing in the prescribed form in respect of the well allocating amounts to some or all of those taxpayers ifthe amount allocated to each taxpayer does not exceed the total of such expenses that were incurred by the taxpayer in respect of the well, and that are not to be renounced by the taxpayer under subsection 66(10.1) or (12.6) of the Act in favour of or to any other person, andthe aggregate of all amounts so allocated is not less than $5,000,000.For the purposes of this section, wherethe drilling of a well (in this subsection referred to as the “abandoned well”) is abandoned not because of the results obtained but because of geological or mechanical difficulties and the drilling of a new well (in this subsection referred to as the “new well”) is commenced, andhaving regard to all the circumstances, including the lapse of time between the abandonment of the abandoned well and the commencement of the new well and the proximity of the sites of the wells, it is reasonable to regard the new well as a replacement for the abandoned well,the abandoned well and the new well shall be deemed to be one well.For the purpose of this section, where an expense of a joint exploration corporation is deemed by subsection 66(10.1) or (10.2) of the Act to be an expense of a shareholder corporation of the joint exploration corporation, the shareholder corporation shall be deemed to have incurred the expense at the time it was incurred by the joint exploration corporation.For the purpose of this section, where an expense of a principal-business corporation is deemed by subsection 66(12.61) or (12.63) of the Act to be an expense of a shareholder of the corporation, the shareholder shall be deemed to have incurred the expense at the time it was incurred by the principal-business corporation.For the purposes of this section, where an expense incurred by a partnership is, under subparagraph 66.1(6)(a)(iv) of the Act, a Canadian exploration expense of a taxpayer who was a member of the partnership, the taxpayer shall be deemed to have incurred the Canadian exploration expense at the time the expense was incurred by the partnership.For the purposes of this section, where an expense is a Canadian development expense of a taxpayer that is, under subsection 66.1(9) of the Act, deemed to be a Canadian exploration expense of the taxpayer, the taxpayer shall be deemed to have incurred the Canadian exploration expense at the time the Canadian development expense was incurred.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-463, s. 1; SOR/92-681, s. 3; SOR/94-686, ss. 58(F), 78(F), 79(F)
Prescribed Offshore Region
For the purposes of the definition specified percentage in subsection 127(9) of the Act, the following region is a prescribed offshore region:that submarine area, not within a province, adjacent to the coast of Canada and extending throughout the natural prolongation of that portion of the land territory of Canada comprising the Gaspé Peninsula and the provinces of Newfoundland, Prince Edward Island, Nova Scotia and New Brunswick to the outer edge of the continental margin or to a distance of two hundred nautical miles from the baselines from which the territorial sea of Canada is measured, whichever is the greater; andthe waters above the submarine area referred to in paragraph (a).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-463, s. 1
Prescribed Area
For the purpose of paragraph (c.1) of the definition qualified property in subsection 127(9) of the Act, the area prescribed is the area comprising the Provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and the Gaspé Peninsula.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/95-244, s. 5
Election in Respect of Certain Property Owned on December 31, 1971
Any election by an individual under subsection 26(7) of the Income Tax Application Rules, shall be made by filing with the Minister the form prescribed.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 48
Status of Corporations and Trusts[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)
For the purposes of subparagraph (b)(i) of the definition public corporation in subsection 89(1) of the Act, the following conditions are prescribed in respect of a corporation other than a cooperative corporation (within the meaning assigned by section 136 of the Act) or a credit union:a class of shares of the capital stock of the corporation designated by the corporation in its election or by the Minister in his notice to the corporation, as the case may be, shall be qualified for distribution to the public;there shall be no fewer thanwhere the shares of that class are equity shares, 150, andin any other case, 300persons, other than insiders of the corporation, each of whom holdsnot less than one block of shares of that class, andshares of that class having an aggregate fair market value of not less than $500; andinsiders of the corporation shall not hold more than 80 per cent of the issued and outstanding shares of that class.For the purposes of subparagraph (c)(i) of the definition public corporation in subsection 89(1) of the Act, the following conditions are prescribed in respect of a corporation:insiders of the corporation shall hold more than 90 per cent of the issued and outstanding shares of each class of shares of the capital stock of the corporation thatwas, at any time after the corporation last became a public corporation, listed on a designated stock exchange in Canada, orwas a class, designated as described in paragraph (1)(a), by virtue of which the corporation last became a public corporation;in respect of each class of shares described in subparagraph (a)(i) or (ii), there shall be fewer thanwhere the shares of that class are equity shares, 50, andin any other case, 100persons, other than insiders of the corporation, each of whom holdsnot less than one block of shares of that class, andshares of that class having an aggregate fair market value of not less than $500; andthere shall be no class of shares of the capital stock of the corporation that is qualified for distribution to the public and complies with the conditions described in paragraphs (1)(b) and (c).Where, by virtue of an amalgamation (within the meaning assigned by section 87 of the Act) of predecessor corporations any one or more of which was, immediately before the amalgamation, a public corporation, shares of any class of the capital stock of any such public corporation that wasat any time after the corporation last became a public corporation, listed on a designated stock exchange in Canada, orthe class, designated as described in paragraph (1)(a), by virtue of which the corporation last became a public corporation,are converted into shares of any class (in this subsection referred to as the “new class”) of the capital stock of the new corporation, the new class shall, for the purposes of subsection (2), be deemed to be a class, designated as described in paragraph (1)(a), by virtue of which the new corporation last became a public corporation.Any election under subparagraphs (b)(i) or (c)(i) of the definition public corporation in subsection 89(1) of the Act shall be made by filing with the Minister the following documents:the form prescribed by the Minister;where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation; anda statutory declaration made by a director of the corporation stating that, after reasonable inquiry for the purpose of informing himself in that regard, to the best of his knowledge the corporation complies with all the prescribed conditions that must be complied with at the time the election is made.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-268, s. 8; SOR/94-686, ss. 74(F), 79(F); SOR/2001-216, s. 3; 2007, c. 35, s. 77; 2013, c. 34, s. 396(F)
For the purposes of paragraph 107(1)(a) and subsections 107(1.1), (2) and (4.1) of the Act, the following are prescribed trusts:a trust maintained primarily for the benefit of employees of a corporation or two or more corporations which do not deal at arm’s length with each other, where one of the main purposes of the trust is to hold interests in shares of the capital stock of the corporation or corporations, as the case may be, or any corporation not dealing at arm’s length therewith;a trust established exclusively for the benefit of one or more persons each of whom was, at the time the trust was created, either a person from whom the trust received property or a creditor of that person, where one of the main purposes of the trust is to secure the payments required to be made by or on behalf of that person to such creditor; anda trust all or substantially all of the properties of which consist of shares of the capital stock of a corporation, where the trust was established pursuant to an agreement between two or more shareholders of the corporation and one of the main purposes of the trust is to provide for the exercise of voting rights in respect of those shares pursuant to that agreement.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-284, s. 1; SOR/92-661, s. 1; SOR/94-686, s. 79(F); 2013, c. 34, s. 397
In applying at any time paragraph 132(6)(c) of the Act, the following are prescribed conditions in respect of a trust:eitherthe following conditions are met:there has been at or before that time a lawful distribution in a province to the public of units of the trust and a prospectus, registration statement or similar document was not, under the laws of the province, required to be filed in respect of the distribution, andthe trustwas created after 1999 and on or before that time, orsatisfies, at that time, the conditions prescribed in section 4801.001, ora class of the units of the trust is, at that time, qualified for distribution to the public; andin respect of a class of the trust’s units that meets at that time the conditions described in paragraph (a), there are at that time no fewer than 150 beneficiaries of the trust, each of whom holdsnot less than one block of units of the class, andunits of the class having an aggregate fair market value of not less than $500.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-216, s. 4; 2013, c. 34, s. 398
For the purpose of applying at any particular time subclause 4801(a)(i)(B)(II), the following are the prescribed conditions:the trust was created before 2000;the trust was a unit trust on July 18, 2005;the particular time is after 2003; andthe trusts elects by notifying the Minister, in writing before the trust’s filing-due date for its 2012 taxation year, that this section applies to it.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 399
For the purpose of subsection 132.11(1) of the Act, a trust that is a money market fund as defined in National Instrument 81-102 Mutual Funds, as amended from time to time, of the Canadian Securities Administrators is a prescribed trust.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-216, s. 5
For the purposes of the definition eligible business entity in subsection 204.8(1), clause 204.82(2.2)(d)(i)(B) and paragraph 204.82(6)(a) of the Act, a corporation registered under Part III.1 of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992, is a prescribed corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-216, s. 5
For the purpose of paragraph (c) of the definition exempt trust in subsection 233.2(1) of the Act, the following conditions are hereby prescribed in respect of a trust:at least 150 beneficiaries of the trust are beneficiaries in respect of the same class of units of the trust; andat least 150 of the beneficiaries in respect of that class each holdat least one block of units of that class, andunits of that class having a total fair market value of at least $500.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/98-453, s. 1
For the purposes of clause 149(1)(o.2)(iv)(D) of the Act, the following are prescribed persons:a trust all the beneficiaries of which are trusts described in clause 149(1)(o.2)(iv)(B) of the Act;a corporation incorporated before November 17, 1978 solely in connection with, or for the administration of, a registered pension plan;a trust or corporation established by or arising by virtue of an act of a province the principal activities of which are to administer, manage or invest the monies of a pension fund or plan that is established pursuant to an act of the province or an order or regulation made thereunder;the Canada Pension Plan Investment Board;the Public Sector Pension Investment Board;a pooled registered pension plan;a trust or corporation established by or arising by virtue of an act of a province in connection with a scheme or program for the compensation of workers injured in an accident arising out of or in the course of their employment;Her Majesty in right of a province;a trust all of the beneficiaries of which are any combination ofregistered pension plans,trusts described in clause 149(1)(o.2)(iv)(B) or (C) of the Act, andpersons described in this subsection;the Pension Benefits Guarantee Fund under the Pension Benefits Act, R.S.O. 1990, c. P.8 and any corporation established solely for investing the assets of the Pension Benefits Guarantee Fund; anda corporation all of the shares of the capital stock of which are owned by one or more of the following:registered pension plans,trusts described in clause 149(1)(o.2)(iv)(B) or (C) of the Act, andpersons described in this subsection.For the purposes of subparagraph 127.55(f)(iii) and paragraphs 149(1)(o.4) and 150(1.2)(i) of the Act, a trust is prescribed at any particular time if, at all times after its creation and before the particular time,it was resident in Canada;its only undertaking was the investing of its funds;it never borrowed money except where the borrowing was for a term not exceeding 90 days and it is established that the borrowing was not part of a series of loans or other transactions and repayments;it never accepted deposits; andeach of the beneficiaries of the trust was a trust governed by a deferred profit sharing plan, a pooled registered pension plan or a registered pension plan.For the purposes of paragraph 8502(i.2), if an amount is borrowed (other than an amount described in paragraph (1.1)(c)) at a particular time by a trust described in subsection (1.1) in relation to defined benefit provisions of one or more registered pension plans that are beneficiaries of the trust, each such defined benefit provision is deemed to have borrowed at the particular time an amount that is equal to the following amount:if paragraph (b) does not apply, the amount determined by the formulaA × (B ÷ C)whereAis the amount borrowed by the trust at the particular time,Bis the fair market value at the particular time of the interest of the defined benefit provision inif the borrowing relates to a particular class of units of the trust, that class of units, andin any other case, the income and capital of the trust, andCis the fair market value at the particular time of all interests of defined benefit provisions inif the borrowing relates to a particular class of units of the trust, that class of units, andin any other case, the income and capital of the trust; andthe portion of the amount borrowed by the trust at the particular time that is allocated to the defined benefit provision under an agreement entered into between the trust and the defined benefit provision, provided that the agreement allocates to the beneficiaries the total amount borrowed by the trust.If an amount borrowed by a trust is deemed to have been borrowed by a defined benefit provision under subsection (1.2), the amount is deemed not to have been borrowed by the trust for the purposes of paragraph (1.1)(c).[Repealed, 2017, c. 20, s. 33][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-696, s. 14; SOR/87-559, s. 1; SOR/92-51, s. 8; SOR/92-661, s. 2; SOR/94-353, s. 1; SOR/94-686, s. 79(F); SOR/96-226, s. 1; SOR/2003-328, s. 2; SOR/2005-264, s. 5; SOR/2011-188, s. 18; 2012, c. 31, s. 67; 2017, c. 20, s. 332022, c. 19, s. 872023, c. 26, s. 104
In this Part,block of shares means, with respect to any class of the capital stock of a corporation,100 shares, if the fair market value of one share of the class is less than $25,25 shares, if the fair market value of one share of the class is $25 or more but less than $100, and10 shares, if the fair market value of one share of the class is $100 or more; (tranche d’actions)block of units means, with respect to any class of units of a trust,100 units, if the fair market value of one unit of the class is less than $25,25 units, if the fair market value of one unit of the class is $25 or more but less than $100, and10 units, if the fair market value of one unit of the class is $100 or more; (tranche d’unités)equity share has the meaning assigned by section 204 of the Act; (action à revenu variable)insider of a corporation has the meaning that would be assigned by section 100 of the Canada Corporations Act, as it read on June 22, 2009, if the references in that section to “insider of a company”, “public company” and “equity shares” were read as references to “insider of a corporation”, “corporation” and “shares” respectively, and includes a person who is an employee of the corporation, or of a person who does not deal at arm’s length with the corporation, and whose right to sell or transfer any share of the capital stock of the corporation, or to exercise the voting rights, if any, attaching to the share, is restricted bythe terms and conditions attaching to the share, orany obligation of the person, under a contract, in equity or otherwise, to the corporation or to any person with whom the corporation does not deal at arm’s length. (dirigeant d’une société)For the purposes of this Part, a class of shares of the capital stock of a corporation or a class of units of a trust is qualified for distribution to the public only ifa prospectus, registration statement or similar document has been filed with, and, where required by law, accepted for filing by, a public authority in Canada pursuant to and in accordance with the law of Canada or of any province and there has been a lawful distribution to the public of shares or units of that class in accordance with that document;the class is a class of shares, any of which were issued by the corporation at any time after 1971 while it was a public corporation in exchange for shares of any other class of the capital stock of the corporation that was, immediately before the exchange, qualified for distribution to the public;in the case of any class of shares, any of which were issued and outstanding on January 1, 1972, the class complied on that date with the conditions described in paragraphs 4800(1)(b) and (c); orin the case of any class of units, any of which were issued and outstanding on January 1, 1972, the class complied on that date with the condition described in paragraph 4801(b).For the purposes of paragraphs 4800(1)(b), 4800(2)(b) and 4801(b), where a group of persons holdsnot less than one block of shares of any class of shares of the capital stock of a corporation or one block of units of any class of a trust, as the case may be, andshares or units, as the case may be, of that class having an aggregate fair market value of not less than $500,that group shall, subject to subsection (4), be deemed to be one person for the purposes of determining the number of persons who hold shares or units, as the case may be, of that class.In determining under subsection (3) the persons who belong to a group for the purposes of determining the number of persons who hold shares or units, as the case may be, of a particular class, the following rules apply:no person shall be included in more than one group;no person shall be included in a group if he holdsnot less than one block of shares or one block of units, as the case may be, of that class, andshares or units, as the case may be, of that class having an aggregate fair market value of not less than $500; andthe membership of each group shall be determined in the manner that results in the greatest possible number of groups.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-470, s. 2; SOR/84-146, s. 1; SOR/85-696, s. 14; SOR/94-686, ss. 25(F), 79(F); SOR/2011-188, s. 19; 2013, c. 34, s. 400(F)
Registered Plans  —  Investments[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 40, s. 107
For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act, paragraph (h) of the definition qualified investment in section 204 of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it isan interest in a trust or a share of the capital stock of a corporation that was a registered investment for the plan trust during the calendar year in which the particular time occurs or the immediately preceding year;a share of the capital stock of a public corporation other than a mortgage investment corporation;a share of the capital stock of a mortgage investment corporation that does not hold as part of its property at any time during the calendar year in which the particular time occurs any indebtedness, whether by way of mortgage or otherwise, of a person who is a connected person under the governing plan of the plan trust;a bond, debenture, note or similar obligation of a public corporation other than a mortgage investment corporation;a unit of a mutual fund trust;[Repealed, 2007, c. 29, s. 32]a unit of a trust ifthe trust would be a mutual fund trust if Part XLVIII were read without reference to paragraph 4801(a), andthere has been a lawful distribution in a province to the public of units of the trust and a prospectus, registration statement or similar document was not required under the laws of the province to be filed in respect of the distribution;an option, a warrant or a similar right (each of which is, in this paragraph, referred to as the “security”) issued by a person or partnership (in this paragraph referred to as the “issuer”) that gives the holder the right to acquire, either immediately or in the future, property all of which is a qualified investment for the plan trust or to receive a cash settlement in lieu of delivery of that property, wherethe property isa share of the capital stock of, a unit of, or a debt issued by, the issuer or another person or partnership that does not, when the security is issued, deal at arm’s length with the issuer, ora warrant issued by the issuer or another person or partnership that does not, when the security is issued, deal at arm’s length with the issuer, that gives the holder the right to acquire a share or unit described in clause (A), andthe issuer is not a connected person under the governing plan of the plan trust;[Repealed, 2007, c. 29, s. 32]a share of, or deposit with, a société d’entraide économique,a share of, or similar interest in a credit union;a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by, or a deposit with, a credit union that has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership bythe plan trust of a share or obligation of, or a deposit with, the credit union, ora registered investment of a share or obligation of, or a deposit with, the credit union if the plan trust has invested in that registered investment,and a credit union shall be deemed to have granted a benefit or privilege to a person in a year if at any time in that year that person continues to enjoy a benefit or privilege that was granted in a prior year;a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by a cooperative corporation (within the meaning assigned by subsection 136(2) of the Act)that throughout the taxation year of the cooperative corporation immediately preceding the year in which the obligation was acquired by the plan trust had not less than 100 shareholders or, if all its shareholders were corporations, not less than 50 shareholders,whose obligations were, at the end of each month ofthe last taxation year, if any, of the cooperative corporation prior to the date of acquisition of the obligation by the plan trust, orthe period commencing three months after the date an obligation was first acquired by any plan trust and ending on the last day of the taxation year of the cooperative corporation in which that period commenced,whichever of the periods referred to in clause (A) or (B) commences later, held by plan trusts the average number of which is not less than 100 computed on the basis that no two plan trusts shall have the same individual as an annuitant or a beneficiary, as the case may be, andthat, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership bythe plan trust of a share or obligation of the cooperative corporation, ora registered investment of a share or obligation of the cooperative corporation if the plan trust has invested in that registered investment,and a cooperative corporation shall be deemed to have granted a benefit or privilege to a person in a year if at any time in that year that person continues to enjoy a benefit or privilege that was granted in a prior year;a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) of a Canadian corporationif payment of the principal amount of the obligation and the interest on the principal amount is guaranteed by a corporation or a mutual fund trust whose shares or units, as the case may be, are listed on a designated stock exchange in Canada,if the corporation is controlled directly or indirectly byone or more corporations,one or more mutual fund trusts, orone or more corporations and mutual fund trustswhose shares or units, as the case may be, are listed on a designated stock exchange in Canada, orif, at the time the obligation is acquired by the plan trust, the corporation that issued the obligation isa corporation that, in respect of its capital stock, has issued and outstanding share capital carried in its books at not less than $25 million, ora corporation that is controlled by a corporation described in clause (A)and has issued and outstanding bonds, debentures, notes or similar obligations having in the aggregate a principal amount of at least $10 million that are held by at least 300 different persons and were issued by the corporation by means of one or more offerings, provided that in respect of each such offering a prospectus, registration statement or similar document was filed with and, where required by law, accepted for filing by a public authority in Canada pursuant to and in accordance with the laws of Canada or a province and there was a lawful distribution to the public of those bonds, debentures, notes or similar obligations in accordance with that document;a security of a Canadian corporationthat was issued pursuant to The Community Bonds Act, chapter C-16.1 of the Statutes of Saskatchewan, 1990, The Rural Development Bonds Act, chapter 47 of the Statutes of Manitoba, 1991-92, the Community Economic Development Act, 1993, chapter 26 of the Statutes of Ontario, 1993, or the New Brunswick Community Development Bond Program through which financial assistance is provided under the Economic Development Act, chapter E-1.11 of the Acts of New Brunswick, 1975, andthe payment of the principal amount of which is guaranteed by Her Majesty in right of a province;a share of the capital stock of a Canadian corporation that is registered under section 11 of the Equity Tax Credit Act, chapter 3 of the Statutes of Nova Scotia, 1993, the registration of which has not been revoked under that Act;a share of the capital stock of a Canadian corporation that is registered under section 39 of the Risk Capital Investment Tax Credits Act, chapter 22 of the Statutes of the Northwest Territories, 1998, the registration of which has not been revoked under that Act;a share of the capital stock of a Canadian corporation that is registered under section 2 of the Community Development Equity Tax Credit Act, chapter C-13.01 of the Revised Statutes of Prince Edward Island, 1988, the registration of which has not been revoked under that Act;a share of the capital stock of a Canadian corporation that is registered under section 29 or 34 of the Investing in a Diversified Alberta Economy Act, S.A. 2016, c. I-10.5, the registration of which has not been revoked under that Act;indebtedness of a Canadian corporation (other than a corporation that is a connected person under the governing plan of the plan trust) represented by a bankers’ acceptance;[Repealed, 2009, c. 2, s. 105]a debt obligation of a debtor, or an interest, or for civil law a right, in that debt obligation, wherethe debt obligation is fully secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or would be fully secured were it not for a decline in the fair market value of the property after the debt obligation was issued, andthe debtor (and any partnership that does not deal at arm’s length with the debtor) is not a connected person under the governing plan of the plan trust;a debt obligation secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or an interest, or for civil law a right, in that debt obligation, where the debt obligation isadministered by an approved lender under the National Housing Act, andinsuredunder the National Housing Act, orby a corporation that offers its services to the public in Canada as an insurer of mortgages or hypothecary claims and that is approved as a private insurer of mortgages or hypothecary claims by the Superintendent of Financial Institutions under subsection 6(1) of the Office of the Superintendent of Financial Institutions Act;a certificate evidencing an undivided interest, or for civil law an undivided right, in one or more properties, whereall or substantially all of the fair market value of the certificate is attributable to property that is, or is incidental to, a debt obligation secured bya mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, orproperty described in paragraph (a) or (b) of the definition qualified investment in section 204 of the Act that was substituted for the security referred to in clause (A) under the terms of the debt obligation,the certificate has, at the time of acquisition by the plan trust, an investment grade rating with a credit rating agency referred to in subsection (2), andthe certificate is issued as part of an issue of certificates by the issuer for a total amount of at least $25 million;[Repealed, 2009, c. 2, s. 105][Repealed, 2007, c. 29, s. 32][Repealed, 2009, c. 2, s. 105][Repealed, 2007, c. 29, s. 32]a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) wherethe taxable income of the corporation is exempt from tax under Part I of the Act because of paragraph 149(1)(l) of the Act, andeitherbefore the particular time and after 1995, the corporationacquired, for a total consideration of not less than $25 million, property from Her Majesty in right of Canada or a province, andput that property to a use that is the same as or similar to the use to which the property was put before the acquisition described in subclause (I), orat the time of the acquisition of the debt by the plan trust, it was reasonable to expect that clause (A) would apply in respect of the debt no later than one year after the time of the acquisition;a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) ifthe taxable income of the corporation is exempt from tax under Part I of the Act because of paragraph 149(1)(l) of the Act, andeitherthe debt is issued by the corporation as part of an issue of debt by the corporation for an amount of at least $25 million, orat the time of the acquisition of the debt by the plan trust, the corporation had issued debt as part of a single issue for an amount of at least $25 million;[Repealed, 2009, c. 2, s. 105]a gold or silver legal tender bullion cointhat is of a minimum fineness of 995 parts per 1000 in the case of gold and 999 parts per 1000 in the case of silver,that was produced by the Royal Canadian Mint,that has a fair market value at the particular time not exceeding 110 per cent of the fair market value of the coin’s gold or silver content, andthat is acquired by the plan trust directly from the Royal Canadian Mint or from a corporation (in paragraphs (u) and (v) referred to as a “specified corporation”)that is a bank, a trust company, a credit union, an insurance corporation or a registered securities dealer,that is resident in Canada, andthat is a corporation whose business activities are subject by law to the supervision of a regulating authority that is the Superintendent of Financial Institutions or a similar authority of a province;a gold or silver bullion bar, ingot or waferthat is of a minimum fineness of 995 parts per 1000 in the case of gold and 999 parts per 1000 in the case of silver,that was produced by a metal refiner included in the London Bullion Market Association’s good delivery list of acceptable refiners for gold or silver, as the case may be,that bears the hallmark of the metal refiner that produced it and a stamp indicating its fineness and its weight, andthat is acquired by the plan trust either directly from the metal refiner that produced it or from a specified corporation;a certificate issued by a specified corporation or the Royal Canadian Mint representing a claim of the holder of the certificate to property held by the issuer of the certificate, wherethe property would be property described in paragraph (t) or (u) if those paragraphs were read without reference to subparagraphs (t)(iv) and (u)(iv), respectively, andthe certificate is acquired by the plan trust directly from the issuer of the certificate or from a specified corporation; oran American Depositary Receipt where the property represented by the receipt is listed on a designated stock exchange.For the purposes of paragraph (c.1) of the definition qualified investment in section 204 of the Act, each of the following is a prescribed credit rating agency:A.M. Best Company, Inc.;DBRS Limited;Fitch Ratings, Inc.;Moody’s Investors Service, Inc.;Standard & Poor’s Financial Services LLC; anda subsidiary or affiliate of a company listed in any of paragraphs (a) to (e), to the extent that it provides credit rating services outside of Canada on behalf of the company in respect of which it is the subsidiary or affiliate.For the purpose of paragraph (h) of the definition qualified investment in section 204 of the Act, a contract with a licensed annuities provider for an annuity payable to an employee who is a beneficiary under a deferred profit sharing plan beginning not later than the end of the year in which the employee attains 71 years of age, the guaranteed term of which, if any, does not exceed 15 years, is prescribed as a qualified investment for a trust governed by such a plan or revoked plan.[Repealed, SOR/2001-216, s. 6]For the purposes of paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a FHSA, a registered disability savings plan, a registered education savings plan or a TFSA at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year.Subject to subsection (9), for the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act and paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered retirement savings plan, a registered education savings plan and a registered retirement income fund at any time if at that time the property is not a prohibited investment for the trust and isa share of the capital stock of an eligible corporation (as defined in subsection 5100(1));an interest of a limited partner in a small business investment limited partnership; oran interest in a small business investment trust.Subject to subsection (11), for the purposes of paragraph (h) of the definition qualified investment in section 204 of the Act, a property is prescribed as a qualified investment for a trust governed by a deferred profit sharing plan or revoked plan at any time if at that time the property is an interestof a limited partner in a small business investment limited partnership; orin a small business investment trust.[Repealed, 2017, c. 33, s. 95]For the purposes of subsection (6), wherea trust governed by a registered retirement savings plan, a registered education savings plan or a registered retirement income fund holdsan interest in a small business investment limited partnership, oran interest in a small business investment trustthat holds a small business security (referred to in this subsection as the “designated security”) of a corporation, anda person who is an annuitant, a beneficiary or a subscriber under the plan or fund is a designated shareholder of the corporation,the interest shall not be a qualified investment for the trust governed by the plan or fund unlessthe designated security is a share of the capital stock of an eligible corporation,the partnership or trust, as the case may be, has no right to set off, assign or otherwise apply, directly or indirectly, the designated security against the interest,no person is obligated in any way, either absolutely or contingently, under any undertaking the intent or effect of which isto limit any loss that the plan or fund may sustain by virtue of the ownership, holding or disposition of the interest, orto ensure that the plan or fund will derive earnings by virtue of the ownership, holding or disposition of the interest,in the case of the partnership, there are more than 10 limited partners and no limited partner or group of limited partners who do not deal with each other at arm’s length holds more than 10 per cent of the units of the partnership, andin the case of the trust, there are more than 10 beneficiaries and no beneficiary or group of beneficiaries who do not deal with each other at arm’s length holds more than 10 per cent of the units of the trust.[Repealed, 2011, c. 24, s. 84]For the purposes of subsection (7), wherea trust governed by a deferred profit sharing plan or revoked plan holdsan interest in a small business investment limited partnership, oran interest in a small business investment trustthat holds a small business security of a corporation,payments have been made in trust to a trustee under the deferred profit sharing plan or revoked plan for the benefit of beneficiaries thereunder by the corporation or a corporation related thereto, andthe small business security is not an equity share described in paragraph (e) of the definition qualified investment in section 204 of the Act,the interest referred to in subparagraphs (a)(i) and (ii) shall not be a qualified investment for the trust referred to in paragraph (a).[Repealed, 2017, c. 33, s. 95]For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a FHSA, RESP, RRIF, RRSP or TFSA at any time if, at the time the property was acquired by the trust, the propertywasa share of the capital stock of a specified small business corporation,a share of the capital stock of a venture capital corporation described in any of sections 6700 to 6700.2, ora qualifying share in respect of a specified cooperative corporation and the FHSA, RESP, RRIF, RRSP or TFSA; andwas not a prohibited investment for the trust.For the purposes of the definition prohibited investment in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a FHSA, RESP, RRIF, RRSP or TFSA solely because of subsection (14) is prescribed property for the trust at any time if, at that time, the property is not described in any of subparagraphs (14)(a)(i) to (iii).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-725, s. 4; SOR/83-819, s. 1; SOR/85-202, s. 1; SOR/86-390, s. 2; SOR/86-1092, s. 12(F); SOR/88-165, s. 24(F); SOR/92-660, s. 2; SOR/94-471, s. 1; SOR/94-472, s. 1; SOR/94-686, ss. 26(F), 72(F), 74(F), 75(F), 78(F), 79(F); SOR/95-513, s. 1; SOR/96-450, s. 1; SOR/98-250, s. 1; SOR/99-9, s. 1; SOR/99-81, s. 1; SOR/99-102, s. 1; SOR/2001-216, ss. 6, 10(F),11(F); SOR/2001-289, s. 8(E); SOR/2005-264, s. 6; 2007, c. 29, s. 32, c. 35, ss. 89, 126; SOR/2007-212, s. 2; 2009, c. 2, s. 105; 2011, c. 24, s. 84; SOR/2011-188, s. 20; SOR/2012-270, s. 1; 2013, c. 40, s. 108; 2017, c. 33, s. 952022, c. 19, s. 88SOR/2024-231, s. 8
Interpretation
For the purposes of paragraphs 204.4(2)(b), (d) and (f) and of subsection 204.6(1) of the Act, a property is a prescribed investment for a corporation or trust, as the case may be, if it is a qualified investment for a plan or fund described in paragraphs 204.4(1)(a) to (d) of the Act in respect of which the corporation or trust is seeking registration or has been registered, as the case may be.[Repealed, SOR/94-471, s. 2]In this Part,allocation in proportion to patronage has the meaning assigned by subsection 135(4) of the Act; (répartition proportionnelle à l’apport commercial)connected person under a governing plan of a plan trust means a person who is an annuitant, a beneficiary, an employer or a subscriber under, or a holder of, the governing plan and any person who does not deal at arm’s length with that person; (personne rattachée)connected shareholder of a corporation at any time is a person (other than an exempt person in respect of the corporation) who owns, directly or indirectly, at that time, not less than 10% of the issued shares of any class of the capital stock of the corporation or of any other corporation that is related to the corporation and, for the purposes of this definition,paragraphs (a) to (e) of the definition specified shareholder in subsection 248(1) of the Act apply, andan exempt person in respect of a corporation is a person who deals at arm’s length with the corporation where the total of all amounts, each of which is the cost amount of any share of the capital stock of the corporation, or of any other corporation that is related to it, that the person owns or is deemed to own for the purposes of the definition specified shareholder in subsection 248(1) of the Act, is less than $25,000; (actionnaire rattaché)consumer goods or services has the meaning assigned by subsection 135(4) of the Act; (marchandises de consommation ou services)designated shareholder of a corporation at any time means a taxpayer who at that timeis, or is related to, a person (other than an exempt person) who owns, directly or indirectly, not less than 10% of the issued shares of any class of the capital stock of the corporation or of any other corporation that is related to the corporation and, for the purposes of this definition,paragraphs (a) to (e) of the definition specified shareholder in subsection 248(1) of the Act apply, andan exempt person in respect of a corporation is a person who deals at arm’s length with the corporation where the total of all amounts, each of which is the cost amount of any share of the capital stock of the corporation, or of any other corporation that is related to it, that the person owns or is deemed to own for the purposes of the definition specified shareholder in subsection 248(1) of the Act, is less than $25,000,is or is related to a member of a partnership that controls the corporation,is or is related to a beneficiary under a trust that controls the corporation,is or is related to an employee of the corporation or a corporation related thereto, where any group of employees of the corporation or of the corporation related thereto, as the case may be, controls the corporation, except where the group of employees includes a person or a related group that controls the corporation, ordoes not deal at arm’s length with the corporation; (actionnaire désigné)governing plan means a deferred profit sharing plan or a revoked plan, a FHSA, a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA; (régime d’encadrement)plan trust means a trust governed by a governing plan; (fiducie de régime)qualifying share, in respect of a specified cooperative corporation and a governing plan, means a share of the capital or capital stock of the corporation whereownership of the share or a share identical to the share is not a condition of membership in the corporation, ora connected person under the governing planhas not received a payment from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services, andcan reasonably be expected not to receive a payment, after the acquisition of the share by the plan trust, from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services; (part admissible)revoked plan has the meaning assigned by section 204 of the Act; (régime dont l’agrément est retiré)small business investment limited partnership has the meaning assigned by subsection 5102(1); (société de personnes en commandite de placement dans des petites entreprises)small business investment trust has the meaning assigned by subsection 5103(1); (fiducie de placement dans des petites entreprises)small business security has the meaning assigned by subsection 5100(2); (titre de petite entreprise)specified cooperative corporation meansa cooperative corporation within the meaning assigned by subsection 136(2) of the Act, ora corporation that would be a cooperative corporation within the meaning assigned by subsection 136(2) of the Act if the purpose described in that subsection were the purpose of providing employment to the corporation’s members or customers; (coopérative déterminée)specified small business corporation, at any time, means a corporation (other than a cooperative corporation) that would, at that time or at the end of the last taxation year of the corporation that ended before that time, be a small business corporation if the expression “Canadian-controlled private corporation” in the definition small business corporation in subsection 248(1) of the Act were read as “Canadian corporation (other than a corporation controlled at that time, directly or indirectly in any manner whatever, by one or more non-resident persons)”. (société déterminée exploitant une petite entreprise)For the purposes of the definition connected shareholder in subsection (2) and of subsection (2.2), each share of the capital of a specified cooperative corporation and all other shares of the capital of the corporation that have attributes identical to the attributes of that share shall be deemed to be shares of a class of the capital stock of the corporation.For the purpose of this Part, a person is deemed to be a connected shareholder of a corporation at any time where the person would be a connected shareholder of the corporation at that time if, at that time,the person had each right that the person would be deemed to own at that time for the purposes of the definition specified shareholder in subsection 248(1) of the Act if that right were a share of the capital stock of a corporation;the person owned each share of a class of the capital stock of a corporation that the person had a right at that time under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to acquire; andthe cost amount to the person of a share referred to in paragraph (b) were the cost amount to the person of the right to which the share relates.For the purpose of this Part, a person is deemed to be a designated shareholder of a corporation at any time if the person would be a designated shareholder of the corporation at that time if, at that time, paragraphs (2.2)(a) to (c) applied in respect of that person.[Repealed, SOR/2005-264, s. 7][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-725, s. 4; SOR/86-390, s. 3; SOR/86-1092, s. 13(E); SOR/90-606, s. 1; SOR/94-471, s. 2; SOR/94-686, ss. 27(F), 58(F), 78(F), 79(F); SOR/95-513, s. 2; SOR/2001-216, ss. 7, 11(F); SOR/2005-264, s. 7; 2007, c. 35, s. 127; 2009, c. 2, s. 1062024, c. 15, s. 80
[Repealed, 2013, c. 40, s. 109]
[Repealed, 2013, c. 40, s. 109][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-264, s. 9; 2009, c. 2, s. 107; 2011, c. 24, s. 85; 2013, c. 40, s. 109
[Repealed, 2013, c. 40, s. 109][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-264, s. 9; 2009, c. 2, s. 107; 2011, c. 24, s. 85; 2013, c. 40, s. 109
[Repealed, SOR/2005-264, s. 9][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2000-62, s. 3; SOR/2001-216, s. 9; SOR/2005-264, s. 9
Deferred Income Plans, Investments in Small Business
In this Part,designated rate, at any time, means 150 per cent of the highest of the prime rates generally quoted at that time by the banks to which Schedule A to the Bank Act applies; (taux déterminé)eligible corporation, at any time, meansa particular corporation that is a taxable Canadian corporation all or substantially all of the property of which is at that timeused in a qualifying active business carried on by the particular corporation or by a corporation controlled by it,shares of the capital stock of one or more eligible corporations that are related to the particular corporation, or debt obligations issued by those eligible corporations, orany combination of the properties described in subparagraphs (i) and (ii),a specified holding corporation, ora venture capital corporation described in section 6700,but does not includea corporation (other than a mutual fund corporation) that isa trader or dealer in securities,a bank,a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee,a credit union,an insurance corporation, ora corporation the principal business of which is the lending of money or the purchasing of debt obligations or a combination of them,a corporation controlled by one or more non-resident persons,a venture capital corporation, other than a venture capital corporation described in section 6700, ora corporation that has made an election in respect of a particular taxation year under subparagraph (iv) of the description of B in paragraph 204.82(2.2)(c.1) of the Act, if that time is in the 12-month period that begins on the day that is six months after the day on which the particular taxation year ends; (société admissible)qualifying active business, at any time, means any business carried on primarily in Canada by a corporation, but does not includea business (other than a business of leasing property other than real property) the principal purpose of which is to derive income from property (including interest, dividends, rent and royalties), ora business of deriving gains from the disposition of property (other than property in the inventory of the business),and, for the purposes of this definition, a business carried on primarily in Canada by a corporation, at any time, includes a business carried on by the corporation if, at that time,at least 50 per cent of the full time employees of the corporation and all corporations related thereto employed in respect of the business are employed in Canada, orat least 50 per cent of the salaries and wages paid to employees of the corporation and all corporations related thereto employed in respect of the business are reasonably attributable to services rendered in Canada; (entreprise admissible exploitée activement)qualifying obligation, at any time, means a bond, debenture, mortgage, note or other similar obligation of a corporation described in paragraph 149(1)(o.2) or (o.3) of the Act, ifthe obligation was issued by the corporation after October 31, 1985,the corporation used all or substantially all of the proceeds of the issue of the obligation within 90 days after the receipt thereof to acquiresmall business securities,interests of a limited partner in small business investment limited partnerships,interests in small business investment trusts, orany combination of the properties described in subparagraphs (i) to (iii)and, except as provided in subsection 5104(1), the corporation was the first person (other than a broker or dealer in securities) to have acquired the properties and the corporation has owned the properties continuously since they were so acquired,the corporation does not hold, and no group of persons who do not deal with each other at arm’s length and of which it is a member holds, more than 30 per cent of the outstanding shares of any class of voting stock of another corporation, except where all or any part of those shares were acquired in specified circumstances, within the meaning of subsection 5104(2),the recourse of the holder of the obligation against the corporation with respect to the obligation is limited to the properties acquired with the proceeds of the issue of the obligation and any properties substituted therefor, andthe properties acquired with the proceeds of the issue of the obligation have not been disposed of, unless the disposition occurred within the 90 day period immediately preceding that time; (titre admissible)specified holding corporation, at any time, means a taxable Canadian corporation whereall or substantially all of the collective property of the corporation and of all other corporations controlled by it (each of which other corporations is referred to in this definition as a “controlled corporation”), other than shares in the capital stock of the corporation or of a corporation related to it and debt obligations issued by it or by a corporation related to it, is at that time used in a qualifying active business carried on by the corporation, andall or substantially all of the property of the corporation is at that timeproperty used in a qualifying active business carried on by the corporation or a controlled corporation,shares of the capital stock of one or more controlled corporations or eligible corporations related to the corporation,debt obligations issued by one or more controlled corporations or eligible corporations related to the corporation, orany combination of the properties described in subparagraphs (i), (ii) and (iii),and in a determination of whether property is used in a qualifying active business for the purposes of paragraph (a),where a business is carried on by a controlled corporation,the business shall be deemed to be a business carried on only by the corporation, andthe controlled corporation shall be deemed to be the corporation in the application of paragraphs (c) and (d) of the definition qualifying active business, andif a business of the corporation is substantially similar to one or more other businesses of the corporation, all those businesses shall be deemed collectively to be one business of the corporation; (société de portefeuille déterminé)specified property means property described in any of paragraphs (a), (b), (c), (f) and (g) of the definition qualified investment in section 204 of the Act. (bien déterminé)For the purposes of this Part and clause (b)(iii)(A) of the definition eligible investment in subsection 204.8(1) of the Act, a small business security of a person, at any time, is property of that person that is, at that time,a share of the capital stock of an eligible corporation,a debt obligation of an eligible corporation (other than a venture capital corporation described in section 6700) that does not by its terms or any agreement related to the obligation restrict the corporation from incurring other debts and that issecured solely by a floating charge on the assets of the corporation and that by its terms or any agreement related thereto is subordinate to all other debt obligations of the corporation (other than a small business security issued by the corporation, or a debt obligation that is owing by the corporation to a shareholder of the corporation or a person related to a shareholder of the corporation and that is not secured in any manner whatever), ornot secured in any manner whatever,other than a debt obligation thatwhere the debt obligation specifies an invariant rate of interest, has an effective annual rate of return that exceeds the designated rate for the day on which the obligation was issued, andin any other case, may have an effective annual rate of return at a particular time that exceeds the designated rate at the particular time,an option or right granted by an eligible corporation in conjunction with the issue of a share or debt obligation that qualifies as a small business security to acquire a share of the capital stock of the corporation, oran option or right granted for no consideration by an eligible corporation to a holder of a share that qualifies as a small business security to acquire a share of the capital stock of the corporationif, immediately after the time of acquisition thereof,the aggregate of the cost amounts to the person of all shares, options, rights and debt obligations of the eligible corporation and all corporations associated therewith held by the person does not exceed $10,000,000, andthe total assets (determined in accordance with generally accepted accounting principles, on a consolidated or combined basis, where applicable) of the eligible corporation and all corporations associated with it do not exceed $50,000,000and includesproperty of the person that is, at that time,a qualifying obligation, or[Repealed, SOR/2005-264, s. 10]a security (in this subparagraph referred to as the “new security”) described in any of paragraphs (a) to (d), where the new security was issued at a particular timein exchange for, on the conversion of, or in respect of rights pertaining to a security (in this paragraph referred to as the “former security”) that would, if this subsection were read without reference to this subparagraph and paragraph (h), be a small business security of the person immediately before the particular time, andpursuant to an agreement entered into before the particular time and at or before the time that the former security was last acquired by the person, orwhere the person is a small business investment corporation, small business investment limited partnership or small business investment trust, property of the person that is, at that time, a security (in this paragraph referred to as the “new security”) described in any of paragraphs (a) to (d), where the new security was issued at a particular time not more than 5 years before that time in exchange for, on the conversion of, or in respect of rights pertaining to a security that would, if this subsection were read without reference to this paragraph, be a small business security of the person immediately before the particular time.Where all or part of the property of a person consists of the shares of the capital stock of a venture capital corporation described in section 6700, options or rights granted by the corporation, or debt obligations of the corporation,the aggregate of the cost amounts to the person of all such property shall be deemed for the purposes of paragraph (2)(e) not to exceed $10,000,000; andthe total assets (determined in accordance with generally accepted accounting principles, on a consolidated or combined basis, where applicable) of the corporation and all corporations associated with it shall be deemed for the purposes of paragraph (2)(f) not to exceed $50,000,000.For the purposes of subsection (2),in determining the effective annual rate of return in respect of a debt obligation of an eligible corporation, the value of any right to convert the debt obligation or any part thereof into, or to exchange the debt obligation or any part thereof for, shares of the capital stock of the corporation or an option or right to acquire such shares shall not be considered; anda corporation shall be deemed not to be associated with another at any time where the corporation would not be associated with the other ifthe references to “controlled, directly or indirectly, in any manner whatever” in section 256 of the Act (other than subsection (5.1) thereof) were read as references to “controlled”, andsuch rights described in subsection 256(1.4) of the Act and shares, as were held at that time by a small business investment corporation, small business investment limited partnership or small business investment trust, were disregarded.[Repealed, SOR/2005-264, s. 10][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-390, s. 5; SOR/87-134, s. 1; SOR/90-606, s. 4; SOR/92-123, s. 2; SOR/94-471, s. 4; SOR/94-686, ss. 29(F), 50(F), 62, 78(F), 79(F); SOR/98-281, s. 1; SOR/99-102, s. 2; SOR/2001-289, ss. 1, 7, 8(E); SOR/2005-264, s. 10
Subject to subsection (4), for the purposes of this Part and paragraph 149(1)(o.3) and paragraph (b) of the definition small business property in subsection 206(1) of the Act, a corporation is a small business investment corporation at any time if it is a Canadian corporation incorporated after May 22, 1985 and at all times after it was incorporated and before that timeall of the shares, and rights to acquire shares, of the capital stock of the corporation were owned byone or more registered pension plans,one or more trusts all the beneficiaries of which were registered pension plans,one or more related segregated fund trusts (within the meaning assigned by paragraph 138.1(1)(a) of the Act) all the beneficiaries of which were registered pension plans, orone or more persons prescribed by section 4802 for the purposes of clause 149(1)(o.2)(iv)(D) of the Act;its only undertaking was the investing of its funds and its investments consisted solely ofsmall business securities,interests of a limited partner in small business investment limited partnerships,interests in small business investment trusts,property (other than a small business security) that isa share of the capital stock of a corporation (other than a share that is issued to the corporation and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), ora put, call, warrant or other right to acquire or sell a share described by clause (A),specified properties, orany combination of properties described in any of subparagraphs (i) to (v)and, except as provided in subsection 5104(1), with respect to properties referred to in any of subparagraphs (i) to (iii), the corporation was the first person (other than a broker or dealer in securities) to have acquired the properties and the corporation has owned the properties continuously since they were so acquired;it has complied with subsection (2);it did not hold, and no group of persons who did not deal with each other at arm’s length and of which it was a member held, more than 30 per cent of the outstanding shares of any class of voting stock of a corporation, except whereall or any part of those shares were acquired in specified circumstances within the meaning of subsection 5104(2), orthose shares were of any class of voting stock of a venture capital corporation described in section 6700;it has not borrowed money except from its shareholders; andit has not accepted deposits.Every small business investment corporation shall at all times hold properties referred to in subparagraphs (1)(b)(i) to (iii), the aggregate of the cost amounts of which is not less than 75 per cent of the amount, if any, by whichthe aggregate of all amounts each of which is the amount of consideration for the issue of shares of its capital stock or debt to its shareholders or the amount of a contribution of capital by its shareholders received by it more than 90 days before that timeexceedsthe aggregate ofall amounts paid by it before that time to its shareholders as a return of capital or a repayment of debt, andthe amount, if any, by which the aggregate of its losses from the disposition of properties disposed of before that time exceeds the aggregate of its gains from the disposition of properties disposed of before that time.For the purposes of subsection (2), where a small business investment corporation disposes of a property referred to in subparagraphs (1)(b)(i) to (iii), it shall be deemed to continue to hold the investment for a period of 90 days following the date of the disposition.For the purposes of paragraph 149(1)(o.3) of the Act, where a small business investment corporation holds an interest in a partnership or trust that qualified as a small business investment limited partnership or small business investment trust, as the case may be, when the interest was acquired and that, but for this subsection, would cease at a subsequent time to so qualify, the interest in the partnership or trust shall be deemed to be an interest in a small business investment limited partnership or small business investment trust, as the case may be, for the 24 months immediately following the subsequent time.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-390, s. 5; SOR/90-606, s. 5; SOR/92-51, s. 8; SOR/94-471, s. 5; SOR/94-686, ss. 78(F), 79(F); SOR/2001-289, s. 7; SOR/2005-264, s. 11
For the purpose of this Part, a partnership is a small business investment limited partnership at any particular time if at all times after it was formed and before the particular timeit had only one general partner;the share of the general partner, as general partner, in any income of the partnership from any source in any place, for any period, was the same as his share, as general partner, inthe income of the partnership from that source in any other place,the income of the partnership from any other source,the loss of the partnership from any source,any capital gain of the partnership, andany capital loss of the partnershipfor that period, except that the share of the general partner, as general partner, in the income or loss of the partnership from specified properties may differ from his share, as general partner, in the income or loss of the partnership from other sources;the share of the general partner, as general partner, in any income or loss of the partnership for any period was not less than his share, as general partner, in the income or loss of the partnership for any preceding period;the interests of the limited partners were described by reference to units of the partnership that were identical in all respects;no limited partner or group of limited partners who did not deal with each other at arm’s length held more than 30 per cent of the units of the partnership and, for the purposes of this paragraph,a small business investment corporation that has not borrowed money and in which no shareholder or group of shareholders who did not deal with each other at arm’s length held more than 30 per cent of the outstanding shares of any class of voting stock shall be deemed not to be a limited partner, andthe general partner shall be deemed not to hold any unit of the partnership as a limited partner;its only undertaking was the investing of its funds and its investments consisted solely ofsmall business securities where, except as provided in subsection 5104(1), the partnership was the first person (other than a broker or dealer in securities) to have acquired the securities and it has owned the securities continuously since they were so acquired,property (other than a small business security) that isa share of the capital stock of a corporation (other than a share that is issued to the partnership and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), ora put, call, warrant or other right to acquire or sell a share described by clause (A),specified properties, orany combination of properties described in any of subparagraphs (i) to (iii);it has complied with subsection (2);it has not borrowed money except for the purpose of earning income from its investments and the amount of any such borrowings at any time did not exceed 20 per cent of the partnership capital at that time; andit has not accepted deposits.The aggregate of the cost amounts to a small business investment limited partnership of small business securities held by it at any time shall not be less than the amount, if any, by which the aggregate of25 per cent of the amount, if any, by whichthe aggregate of all amounts received by it more than 12 months before that time and not more than 24 months before that time as consideration for the issue of its units or in respect of its unitsexceedsthe aggregate of all amounts paid by it before that time to its members and designated by the partnership as a return of the consideration referred to in subparagraph (i),50 per cent of the amount, if any, by whichthe aggregate of all amounts received by it more than 24 months before that time and not more than 36 months before that time as consideration for the issue of its units or in respect of its unitsexceedsthe aggregate of all amounts paid by it before that time to its members and designated by the partnership as a return of the consideration referred to in subparagraph (i), and75 per cent of the amount, if any, by whichthe aggregate of all amounts received by it more than 36 months before that time as consideration for the issue of its units or in respect of its unitsexceedsthe aggregate of all amounts paid by it before that time to its members and designated by the partnership as a return of the consideration referred to in subparagraph (i),exceeds 75 per cent of the amount, if any, by which the aggregate of its losses from the disposition of properties disposed of before that time exceeds the aggregate of its gains from the disposition of properties disposed of before that time.For the purposes of subsection (2), where a small business investment limited partnership disposes of a small business security it shall be deemed to continue to hold the investment for a period of 90 days following the date of the disposition.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-390, s. 5; SOR/90-606, s. 6; SOR/94-471, s. 6; SOR/94-686, ss. 58(F), 78(F), 79(F); SOR/2005-264, s. 12
For the purposes of this Part and subsection 259(5) of the Act, a trust is a small business investment trust at any particular time if at all times after it was created and before the particular timeit was resident in Canada;the interests of the beneficiaries under the trust were described by reference to units of the trust that were identical in all respects; andno beneficiary or group of beneficiaries who did not deal with each other at arm’s length held more than 30 per cent of the units of the trust and, for the purposes of this paragraph, a small business investment corporation that has not borrowed money and in which no shareholder or group of shareholders who did not deal with each other at arm’s length held more than 30 per cent of the outstanding shares of any class of voting stock shall be deemed not to be a beneficiary;its only undertaking was the investing of its funds and its investments consisted solely ofsmall business securities where, except as provided in subsection 5104(1), the trust was the first person (other than a broker or dealer in securities) to have acquired the securities and it has owned the securities continuously since they were so acquired,property (other than a small business security) that isa share of the capital stock of a corporation (other than a share that is issued to the trust and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), ora put, call, warrant or other right to acquire or sell a share described by clause (A),specified properties, orany combination of properties described in any of subparagraphs (i) to (iii);it has complied with subsection (2);it has not borrowed money except for the purpose of earning income from its investments and the amount of any such borrowings at any time did not exceed 20 per cent of the trust capital at that time; andit has not accepted deposits.The aggregate of the cost amounts to a small business investment trust of small business securities held by it at any time shall not be less than the amount, if any, by which the aggregate of25 per cent of the amount, if any, by whichthe aggregate of all amounts received by it more than 12 months before that time and not more than 24 months before that time as consideration for the issue of its units or in respect of its unitsexceedsthe aggregate of all amounts paid by it before that time to its beneficiaries and designated by the trust as a return of the consideration referred to in subparagraph (i),50 per cent of the amount, if any, by whichthe aggregate of all amounts received by it more than 24 months before that time and not more than 36 months before that time as consideration for the issue of its units or in respect of its unitsexceedsthe aggregate of all amounts paid by it before that time to its beneficiaries and designated by the trust as a return of the consideration referred to in subparagraph (i), and75 per cent of the amount, if any, by whichthe aggregate of all amounts received by it more than 36 months before that time as consideration for the issue of its units or in respect of its unitsexceedsthe aggregate of all amounts paid by it before that time to its beneficiaries and designated by the trust as a return of the consideration referred to in subparagraph (i)exceeds 75 per cent of the amount, if any, by which the aggregate of its losses from the disposition of properties disposed of before that time exceeds the aggregate of its gains from the disposition of properties disposed of before that time.For the purposes of subsection (2), where a small business investment trust disposes of a small business security it shall be deemed to continue to hold the investment for a period of 90 days following the date of disposition.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-390, s. 5; SOR/94-471, s. 7; SOR/94-686, ss. 78(F), 79(F); SOR/2005-264, s. 13
Notwithstanding paragraph (b) of the definition qualifying obligation in subsection 5100(1) and paragraphs 5101(1)(b), 5102(1)(f) and 5103(1)(d), the corporation, partnership or trust, as the case may be, may acquire a small business security that another person (other than a broker or dealer in securities) had previously acquired ifthe small business security is a share of the capital stock of an eligible corporation having full voting rights under all circumstances; andexcept where the share was acquired in specified circumstances within the meaning of subsection (2), the share was acquired from an officer or employee of the eligible corporation or a person related to the officer or employee.For the purposes of this Part,where a person acquires a share of a corporationas part of a proposal to, or an arrangement with, the corporation’s creditors that has been approved by a court under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act,at a time when all or substantially all of the corporation’s assets were under the control of a receiver, receiver-manager, sequestrator or trustee in bankruptcy, orat a time when, by reason of financial difficulty, the corporation was in default, or could reasonably be expected to default, on a debt obligation held by a person with whom the corporation was dealing at arm’s length,the person shall be deemed, at any time within 36 months after he acquired the share, to have acquired it in specified circumstances;where a person acquires a share of a corporation for the purposes of facilitating the disposition of the entire investment of the person in the corporation, the person shall be deemed, at any time within 12 months after he acquired the share, to have acquired it in specified circumstances; anda qualified trust (within the meaning assigned by subsection 259(3) of the Act) is deemed not to hold any property for any period in respect of which subsection 259(1) of the Act is applicable.Where the purchaser of a property that, but for this subsection, would at the time of its acquisition be a small business security (or, where the purchaser is a partnership, a member thereof) knew at the time of acquisition that the issuer of the security would, within the immediately following 12 months, cease to qualify as an eligible corporation, the property shall be deemed never to have been a small business security of the purchaser.Where a person who holds a share of or an interest in a corporation, partnership or trust that, but for this subsection, would be a small business investment corporation, small business investment limited partnership or small business investment trust knew at the time of issue of the share or interest, as the case may be, or at the time of making any contribution in respect of the share or interest, thata substantial portion ofthe consideration for the issue of the share or interest, orthe contribution in respect of the share or interestwould not be invested by the corporation, partnership or trust, as the case may be, directly or indirectly in small business securities, andall or substantially all ofthe consideration for the issue of the share or interest, orthe contribution in respect of the share or interestwould be returned to the purchaser within the immediately following 24 months,the corporation, partnership or trust shall be deemed to have ceased at that time to be a small business investment corporation, small business investment limited partnership or small business investment trust.Where, but for this subsection, a property that qualified as a small business security when it was acquired would cease at a subsequent time to so qualify, the property shall be deemed to be a small business security for the 24 months immediately following the subsequent time.For the purposes of this Part, a partnership shall be deemed to be a person.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-390, s. 5; SOR/86-1092, s. 14(E); SOR/90-606, s. 7; 1992, c. 27, s. 90; SOR/94-686, ss. 58(F), 78(F), 79(F)
Canadian Manufacturing and Processing ProfitsBasic Formula
Subject to section 5201, for the purposes of subsection 125.1(3) of the Act, “Canadian manufacturing and processing profits” of a corporation for a taxation year are hereby prescribed to be that proportion of the corporation’s adjusted business income for the year thatthe aggregate of its cost of manufacturing and processing capital for the year and its cost of manufacturing and processing labour for the year,is ofthe aggregate of its cost of capital for the year and its cost of labour for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 79(F), 80(F)SOR/2024-231, s. 9
Small Manufacturers’ Rule
For the purposes of subsection 125.1(3) of the Act, “Canadian manufacturing and processing profits” of a corporation for a taxation year are hereby prescribed to be equal to the corporation’s adjusted business income for the year wherethe activities of the corporation during the year were primarily manufacturing or processing in Canada of goods for sale or lease;the aggregate ofthe aggregate of all amounts each of which is the income of the corporation for the year from an active business minus the aggregate of all amounts each of which is the loss of the corporation for the year from an active business, andif the corporation is associated in the year with a Canadian corporation, the aggregate of all amounts each of which is the income of the latter corporation from an active business for its taxation year coinciding with or ending in the year,did not exceed $200,000;the corporation was not engaged in any of the activities listed in paragraphs (a) to (k) of the definition manufacturing or processing in subsection 125.1(3) of the Act at any time during the year;the corporation was not engaged in the processing of ore (other than iron ore or tar sands) from a mineral resource located outside Canada to any stage that is not beyond the prime metal stage or its equivalent;the corporation was not engaged in the processing of iron ore from a mineral resource located outside Canada to any stage that is not beyond the pellet stage or its equivalent;the corporation was not engaged in the processing of tar sands located outside Canada to any stage that is not beyond the crude oil stage or its equivalent; andthe corporation did not carry on any active business outside Canada at any time during the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/82-950, s. 1; SOR/94-169, s. 5; SOR/94-686, ss. 30(F), 79(F)SOR/2024-231, s. 10
Interpretation
In this Part, except as otherwise provided in section 5203 or 5204,adjusted business income of a corporation for a taxation year means the amount, if any, by whichthe aggregate of all amounts each of which is the income of the corporation for the year from an active business carried on in Canadaexceedsthe aggregate of all amounts each of which is the loss of the corporation for the year from an active business carried on in Canada; (revenu rajusté tiré d’une entreprise)Canadian resource profits has the meaning that would be assigned to the expression resource profits by section 1204 ifsection 1204 were read without reference to subparagraph 1204(1)(b)(iv), andthe definition resource activity in subsection 1206(1) were read without reference to paragraph (d) of that definition; (bénéfices relatifs à des ressources au Canada)cost of capital of a corporation for a taxation year means an amount equal to the aggregate of10 per cent of the aggregate of all amounts each of which is the gross cost to the corporation of a property referred to in paragraph 1100(1)(e), (f), (g) or (h), paragraph 1102(1)(d) or (g) or Schedule II thatwas owned by the corporation at the end of the year, andwas used by the corporation at any time during the year, andthe aggregate of all amounts each of which is the rental cost incurred by the corporation during the year for the use of any property a portion of the gross cost of which would be included by virtue of paragraph (a) if the property were owned by the corporation at the end of the year,but for the purposes of this definition, the gross cost of a property or rental cost for the use of any property does not include that portion of those costs that reflects the extent to which the property was used by the corporation during the yearin an active business carried on outside Canada, orto earn Canadian investment income or foreign investment income as defined in subsection 129(4) of the Act; (coût en capital)cost of labour of a corporation for a taxation year means an amount equal to the aggregate ofthe salaries and wages paid or payable during the year to all employees of the corporation for services performed during the year, andall other amounts each of which is an amount paid or payable during the year for the performance during the year, by any person other than an employee of the corporation, of functions relating tothe management or administration of the corporation,scientific research and experimental development, ora service or function that would normally be performed by an employee of the corporation,but for the purposes of this definition, the salaries and wages referred to in paragraph (a) or other amounts referred to in paragraph (b) do not include that portion of those amounts thatwas included in the gross cost to the corporation of a property (other than a property that was manufactured by the corporation and leased during the year by the corporation to another person) that was included in computing the cost of capital of the corporation for the year, orwas related to an active business carried on outside Canada by the corporation; (coût en main-d’oeuvre)cost of manufacturing and processing capital of a corporation for a taxation year means 100/85 of that portion of the cost of capital of the corporation for that year that reflects the extent to which each property included in the calculation thereof was used directly in qualified activities of the corporation during the year, but the amount so calculated shall not exceed the cost of capital of the corporation for the year; (coût en capital de fabrication et de transformation)cost of manufacturing and processing labour of a corporation for a taxation year means 100/75 of that portion of the cost of labour of the corporation for that year that reflects the extent to whichthe salaries and wages included in the calculation thereof were paid or payable to persons for the portion of their time that they were directly engaged in qualified activities of the corporation during the year, andthe other amounts included in the calculation thereof were paid or payable to persons for the performance of functions that would be directly related to qualified activities of the corporation during the year if those persons were employees of the corporation,but the amount so calculated shall not exceed the cost of labour of the corporation for the year; (coût en main-d’oeuvre de fabrication et de transformation)gross cost to a particular person of a property at any time means, in respect of property that has become available for use by the particular person for the purposes of subsection 13(26) of the Act, the capital cost to the particular person of the property computed without reference to subsections 13(7.1), (7.4) and (10), sections 21 and 80 and paragraph 111(4)(e) of the Act and, in respect of any other property, nil, and where the particular person acquired the propertyin the course of a reorganization in respect of which, if a dividend were received by the particular person in the course of the reorganization, subsection 55(2) of the Act would not apply to the dividend by reason of the application of paragraph 55(3)(b) of the Act, orfrom another person with whom the particular person was not dealing at arm’s length (otherwise than by reason of a right referred to in paragraph 251(5)(b) of the Act) immediately after the property was acquired,the capital cost to the particular person of the property for the purposes of this definition shall be computed as if the property had been acquired at a capital cost equal to the gross cost of the property to the person from whom the property was acquired by the particular person; (coût brut)qualified activities meansany of the following activities, when they are performed in Canada in connection with manufacturing or processing (not including the activities listed in paragraphs (a) to (k) of the definition manufacturing or processing in subsection 125.1(3) of the Act) in Canada of goods for sale or lease:engineering design of products and production facilities,receiving and storing of raw materials,producing, assembling and handling of goods in process,inspecting and packaging of finished goods,line supervision,production support activities including security, cleaning, heating and factory maintenance,quality and production control,repair of production facilities, andpollution control,all other activities that are performed in Canada directly in connection with manufacturing or processing (not including the activities listed in paragraphs (a) to (k) of the definition manufacturing or processing in subsection 125.1(3) of the Act) in Canada of goods for sale or lease, andscientific research and experimental development, as defined in section 2900, carried on in Canada,but does not include any ofstoring, shipping, selling and leasing of finished goods,purchasing of raw materials,administration, including clerical and personnel activities,purchase and resale operations,data processing, andproviding facilities for employees, including cafeterias, clinics and recreational facilities; (activités admissibles)qualified zero-emission technology manufacturing activities meansqualified activities that areperformed in connection with the manufacturing or processing ofsolar energy conversion equipment, including solar thermal collectors, photovoltaic solar arrays and custom supporting structures or frames, but excluding passive solar heating equipment,wind energy conversion equipment, including wind turbine towers, nacelles and rotor blades,water energy conversion equipment, including hydroelectric, water current, tidal and wave energy conversion equipment,geothermal energy equipment,equipment for a ground source heat pump system,air-source heat pump equipment designed for space or water heating,electrical energy storage equipment used for storage of renewable energy or for providing grid-scale storage or other ancillary services, including battery, compressed air and flywheel storage systems,equipment used to charge, or to dispense hydrogen to, property included in clause (J),equipment used for the production of hydrogen by electrolysis of water,equipment that is a component of property included in clauses (A) to (H) or (L) to (O), if such equipment is purpose-built or designed exclusively to form an integral part of that property,property thatwould be a zero-emission vehicle (as defined in subsection 248(1) of the Act if that definition were read without reference to its paragraphs (b) to (d)), oris described in subparagraph (a)(i) of Class 56 of Schedule II,integral components of the powertrain of property included in clause (J), including batteries or fuel cells,nuclear energy equipment,heavy water used for nuclear energy generation,nuclear fuels used for nuclear energy generation, andnuclear fuel rods, andnot the manufacturing or processing of general purpose components or equipment which components or equipment are suitable for integration into property other than property described in subparagraph (i);qualified activities that are performed in connection with production in Canada ofhydrogen by electrolysis of water,gaseous biofuel (as defined in subsection 1104(13)),liquid biofuel (as defined in subsection 1104(13)), andsolid biofuel (as defined in subsection 1104(13)); andthe conversion of a vehicle, performed in Canada, into a property described in clause (a)(i)(J); (activités admissibles de fabrication de technologies à zéro émission)rental cost of a property means the rents incurred for the use of that property; (coût de location)resource profits has the meaning assigned by section 1204; (bénéfices relatifs à des ressources)salaries and wages means salaries, wages and commissions, but does not include any other type of remuneration, any superannuation or pension benefits, any retiring allowances or any amount referred to in section 6 or 7 of the Act; (traitements et salaires)specified percentage for a taxation year meanswhere the year commences after 1998, 100%, andin any other case, the total ofthat proportion of 10% that the number of days in the year that are in 1990 is of the number of days in the year,that proportion of 20% that the number of days in the year that are in 1991 is of the number of days in the year,that proportion of 30% that the number of days in the year that are in 1992 is of the number of days in the year,that proportion of 50% that the number of days in the year that are in 1993 is of the number of days in the year,that proportion of 64.3% that the number of days in the year that are in 1994 is of the number of days in the year,that proportion of 71.4% that the number of days in the year that are in 1995 is of the number of days in the year,that proportion of 78.6% that the number of days in the year that are in 1996 is of the number of days in the year,that proportion of 85.7% that the number of days in the year that are in 1997 is of the number of days in the year,that proportion of 92.9% that the number of days in the year that are in 1998 is of the number of days in the year, andthat proportion of 100% that the number of days in the year that are in 1999 is of the number of days in the year; (pourcentage désigné)ZETM cost of capital, of a corporation for a taxation year, means the portion of the cost of capital of the corporation for the year that reflects the extent to which each property included in the calculation of the cost of capital was used directly in qualified zero-emission technology manufacturing activities of the corporation during the year; (coût en capital de FTZE)ZETM cost of labour, of a corporation for a taxation year, means the portion of the cost of labour of the corporation for that year that reflects the extent to which  the salaries and wages included in the calculation of the cost of labour were paid or payable to persons for the portion of their time that they were directly engaged in qualified zero-emission technology manufacturing activities of the corporation during the year, andthe other amounts included in the calculation of the cost of labour were paid or payable to persons for the performance of functions that would be directly related to qualified zero-emission technology manufacturing activities of the corporation during the year if those persons were employees of the corporation. (coût en main-d’œuvre de FTZE)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 12; SOR/94-169, s. 6; SOR/94-686, ss. 53(F), 79(F), 80(F); SOR/96-451, s. 6; SOR/2000-296, s. 22022, c. 10, s. 412022, c. 19, s. 892024, c. 15, s. 812024, c. 17, s. 78SOR/2024-231, s. 11
Resource Income
Where a corporation has resource activities for a taxation year the following rules apply, except as otherwise provided in section 5204:adjusted business income of the corporation for the year means the amount, if any, by whichthe amount otherwise determined under section 5202 to be the adjusted business income of the corporation for the yearexceeds the total ofthe amount, if any, by which the corporation’s net resource income for the year exceeds the corporation’s net resource adjustment for the year, andall amounts each of which is an amount in respect of refund interest included in computing the taxpayer’s income for the year, to the extent that the amount is included in the amount determined to be the adjusted business income, within the meaning of section 5202, of the corporation for the year; (revenue rajusté d’une entreprise)[Repealed, SOR/2007-19, s. 7]cost of capital of the corporation for the year means the amount, if any, by whichthe amount otherwise determined under section 5202 to be the cost of capital of the corporation for the yearexceedsthat portion of the gross cost of property or rental cost for the use of property included in computing the cost of capital of the corporation for the year that reflects the extent to which the property was used by the corporation during the year,in activities engaged in for the purpose of earning Canadian resource profits of the corporation, orin activities referred to in subparagraph 66(15)(b)(i), (ii) or (v), subparagraph 66(15)(e)(i) or (ii), subparagraph 66.1(6)(a)(i), (ii), (iii) or (v) or subparagraph 66.2(5)(a)(i), (ii) or (v) of the Act; (coût en capital)cost of labour of the corporation for the year means the amount, if any, by whichthe amount otherwise determined under section 5202 to be the cost of labour of the corporation for the yearexceedsthat portion of the salaries and wages and other amounts included in computing the cost of labour of the corporation for the year that,was related to the activities engaged in for the purpose of earning Canadian resource profits of the corporation, orwas included in the Canadian exploration and development expenses, foreign exploration and development expenses, Canadian exploration expense or Canadian development expense, within the meanings assigned by paragraphs 66(15)(b) and (e), 66.1(6)(a) and 66.2(5)(a) of the Act respectively, of the corporation. (coût en main-d’oeuvre)For the purposes of subsection (1), a corporation has “resource activities” for a taxation year ifin computing its income for the year, an amount is deductible pursuant to any of sections 65 to 66.2 of the Act;the corporation was at any time during the year engaged in activities for the purpose of earning resource profits of the corporation; orin computing the corporation’s income for the year, an amount was included pursuant to section 59 of the Act.In subsection (1), net resource income of a corporation for a taxation year means the amount, if any, by which the total ofthe resource profits of the corporation for the year, andthe amount, if any, by whichthe total of amounts included in computing the income of the corporation for the year, from an active business carried on in Canada, pursuant to section 59 of the Act (other than amounts that may reasonably be regarded as having been included in computing the resource profits of the corporation for the year),exceedsthe total of amounts deducted in computing the income of the corporation for the year under section 64 of the Act, as that section applies with respect to dispositions occurring before November 13, 1981 and to dispositions occurring after November 12, 1981 pursuant to the terms in existence on that date of an offer or agreement in writing made or entered into on or before that date, except those amounts that may reasonably be regarded as having been deducted in computing the resource profits of the corporation for the year,exceeds the total ofthe total of amounts deducted in computing the income of the corporation for the year under section 65 of the Act (other than amounts that may reasonably be regarded as having been deducted in computing the resource profits of the corporation for the year), andthe specified percentage for the year of the amount, if any, by whichthe corporation’s resource profits for the yearexceeds the total ofthe corporation’s Canadian resource profits for the year, andthe earned depletion base (within the meaning assigned by subsection 1205(1)) of the corporation at the beginning of its immediately following taxation year.In subsection (1), the net resource adjustment of a corporation for a taxation year is the amount determined by the formulaA - BwhereAis the amount of Canadian resource profits of the corporation for the year, andBis the amount that would be the Canadian resource profits of the corporation for the year ifsubsections 1204(1) and (1.1) provided for the computation of negative amounts where the amounts subtracted in computing gross resource profits (as defined by subsection 1204(1)) and resource profits “ exceed the amounts added in computing those amounts, andparagraph 1206(3)(a) applied so that a negative amount of resource profits of a partnership for a fiscal period that ended in the year were, to the extent of the corporation’s share thereof, deducted in computing the corporation’s resource profits for the year.For the purpose of subsection (1), refund interest means an amount that is received, or that becomes receivable, after March 6, 1996 from an authority (including a government or municipality) situated in Canada as a consequence of the overpayment of a tax that was not deductible under the Act in computing any taxpayer’s income and that was imposed by an Act of Canada or a province or a bylaw of a municipality.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 13; SOR/94-169, s. 7; SOR/94-686, ss. 79(F), 80(F); SOR/96-451, s. 7; SOR/99-179, s. 11; SOR/2007-19, s. 7
Partnerships[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 78(F)
If a corporation is a member of a partnership at any time in a taxation year of the corporation, the following definitions apply:cost of capital of the corporation for the year means an amount equal to the aggregate of10 per cent of the aggregate of all amounts each of which is the gross cost to the corporation of a property referred to in paragraph 1100(1)(e), (f), (g) or (h), paragraph 1102(1)(d) or (g) or Schedule II thatwas owned by the corporation at the end of the year, andwas used by the corporation at any time during the year,the aggregate of all amounts each of which is the rental cost incurred by the corporation during the year for the use of any property a portion of the gross cost of which would be included by virtue of paragraph (a) if the property were owned by the corporation at the end of the year, andthat proportion of the aggregate of the amounts that would be determined under paragraphs (a) and (b) in respect of the partnership for its fiscal period coinciding with or ending in the taxation year of the corporation if the references in those paragraphs to “the corporation” were read as references to “the partnership” and the references in those paragraphs to “the year” were read as references to “the fiscal period of the partnership coinciding with or ending in the year”, thatthe corporation’s share of the income or loss of the partnership for that fiscal periodis ofthe income or loss of the partnership for that fiscal period, as the case may be,but for the purposes of this definition, the gross cost of a property or rental cost for the use of any property does not include that portion of those costs that reflects the extent to which the property was used by the corporation during the year or by the partnership during its fiscal period coinciding with or ending in the yearin an active business carried on outside Canada,to earn Canadian investment income or foreign investment income as defined in subsection 129(4) of the Act on the assumption that subsection 129(4) of the Act applied to a partnership as well as to a corporation,in activities engaged in for the purpose of earning Canadian resource profits of the corporation or the partnership, as the case may be, orin activities referred to in subparagraph 66(15)(b)(i), (ii) or (v), subparagraph 66(15)(e)(i) or (ii), subparagraph 66.1(6)(a)(i), (ii), (iii) or (v) or subparagraph 66.2(5)(a)(i), (ii) or (v) of the Act; (coût en capital)cost of labour of the corporation for the year means an amount equal to the aggregate ofthe salaries and wages paid or payable during the year to all employees of the corporation for services performed during the year,all other amounts each of which is an amount paid or payable during the year for the performance during the year, by any person other than an employee of the corporation, of functions relating tothe management or administration of the corporation,scientific research as defined in section 2900, ora service or function that would normally be performed by an employee of the corporation, andthat proportion of the aggregate of the amounts that would be determined under paragraphs (a) and (b) in respect of the partnership for its fiscal period coinciding with or ending in the taxation year of the corporation if the references in those paragraphs to “the corporation” were read as references to “the partnership” and the references in those paragraphs to “the year” were read as references to the “fiscal period of the partnership coinciding with or ending in the year”, thatthe corporation’s share of the income or loss of the partnership for that fiscal periodis ofthe income or loss of the partnership for that fiscal period, as the case may be,but for the purposes of this definition, the salaries and wages referred to in paragraph (a) or other amounts referred to in paragraph (b), of the corporation or the partnership, as the case may be, do not include that portion of those amounts thatwas included in the gross cost to the corporation or partnership of a property (other than a property that was manufactured by the corporation or partnership and leased during the year by the corporation or the partnership to another person) that was included in computing the cost of capital of the corporation for the year,was related to an active business carried on outside Canada by the corporation or the partnership,was related to the activities engaged in for the purpose of earning Canadian resource profits of the corporation or the partnership, as the case may be, orwas included in the Canadian exploration and development expenses, foreign exploration and development expenses, Canadian exploration expense or Canadian development expense, within the meanings assigned by paragraphs 66(15)(b) and (e), 66.1(6)(a) and 66.2(5)(a) of the Act respectively, of the corporation; (coût en main-d’oeuvre)cost of manufacturing and processing capital of the corporation for the year means 100/85 of that portion of the cost of capital of the corporation for that year that reflects the extent to which each property included in the calculation thereof was used directly in qualified activitiesof the corporation during the year, orof the partnership during its fiscal period coinciding with or ending in the year, as the case may be,but the amount so calculated shall not exceed the cost of capital of the corporation for the year; (coût en capital de fabrication et de transformation)cost of manufacturing and processing labour of the corporation for the year means 100/75 of that portion of the cost of labour of the corporation for that year that reflects the extent to whichthe salaries and wages included in the calculation thereof were paid or payable to persons for the portion of their time that they were directly engaged in qualified activitiesof the corporation during the year, orof the partnership during its fiscal period coinciding with or ending in the year, andthe other amounts included in the calculation thereof were paid or payable to persons for the performance of functions that would be directly related to qualified activitiesof the corporation during the year, orof the partnership during its fiscal period coinciding with or ending in the year,if those persons were employees of the corporation or the partnership, as the case may be,but the amount so calculated shall not exceed the cost of labour of the corporation for the year; (coût en main-d’oeuvre de fabrication et de transformation)gross cost of a property at any time meansin respect of a property that has become available for use by the partnership for the purposes of subsection 13(26) of the Act, the capital cost to the partnership of the property computed without reference to subsections 13(7.1), (7.4) and (10) and sections 21 and 80 of the Act, andin respect of any other property of the partnership, nil,and, for the purposes of paragraph (a), if the partnership acquired the property from a person who was a majority-interest partner of the partnership immediately after the property was acquired, the capital cost to the partnership of the property is to be computed as if the property had been acquired at a capital cost equal to the gross cost to the person of the property, except that if the property was partnership property on December 31, 1971, its gross cost is its capital cost to the partnership as determined under subsection 20(3) or (5) of the Income Tax Application Rules; (coût brut)ZETM cost of capital, of the corporation for the year, means the portion of the cost of capital of the corporation for that year that reflects the extent to which each property included in the calculation of the cost of capital was used directly in qualified zero-emission technology manufacturing activities of the corporation during the year, orof the partnership during its fiscal period coinciding with or ending in the year, as the case may be; (coût en capital de FTZE)ZETM cost of labour, of the corporation for the year, means the portion of the cost of labour of the corporation for that year that reflects the extent to which the salaries and wages included in the calculation of the cost of labour were paid or payable to persons for the portion of their time that they were directly engaged in qualified zero-emission technology manufacturing activitiesof the corporation during the year, orof the partnership during its fiscal period coinciding with or ending in the year, andthe other amounts included in the calculation of the cost of labour were paid or payable to persons for the performance of functions that would be directly related to qualified zero-emission technology manufacturing activities of the corporation during the year, or of the partnership during its fiscal period coinciding with or ending in the year, if those persons were employees of the corporation or the partnership, as the case may be. (coût en main-d’œuvre de FTZE)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-377, s. 14; SOR/94-140, s. 13; SOR/94-169, s. 8; SOR/94-686, ss. 48, 78(F) to 81(F); 2013, c. 40, s. 1102022, c. 10, s. 42
Instalment Base[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-165, s. 25(F)Individuals
For the purposes of subsections 155(2), 156(3) and 161(9) of the Act, the instalment base of an individual for a taxation year is the amount by whichthe individual’s tax payable under Part I of the Act for the year, determined before taking into consideration the specified future tax consequences for the year,exceedsthe amount deemed by subsection 120(2) of the Act to have been paid on account of the individual’s tax under Part I of the Act for the year, determined before taking into consideration the specified future tax consequences for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-325, s. 1; SOR/81-855, s. 1; SOR/85-696, s. 15; SOR/86-1092, s. 15; SOR/88-165, s. 26(F); SOR/99-92, s. 1
Corporations Under Part I of the Act[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686. s. 79(F)
Subject to subsections (6) and (8), for the purposes of subsections 157(4) and 161(9) of the Act, the first instalment base of a corporation for a particular taxation year means the product obtained when the aggregate ofthe tax payable under Part I of the Act by the corporation for its taxation year preceding the particular year, andthe total of the taxes payable by the corporation under Parts VI, VI.1 and XIII.1 of the Act for its taxation year preceding the particular yearis multiplied by the ratio that 365 is of the number of days in that preceding year.Subject to subsections (6) and (8), for the purposes of subsections 157(4) and 161(9) of the Act, the second instalment base of a corporation for a particular taxation year means the amount of the first instalment base of the corporation for the taxation year immediately preceding the particular year.For the purposes of subsection (1), where the number of days in the taxation year of a corporation immediately preceding the particular taxation year referred to therein is less than 183, the amount determined for the corporation under that subsection shall be the greater ofthe amount otherwise determined for it under subsection (1); andthe amount that would be determined for it under subsection (1) if the reference in that subsection to “its taxation year preceding the particular year” were read as a reference to “its last taxation year, preceding the particular year, in which the number of days exceeds 182”.Notwithstanding subsections (1) and (2), for the purposes of subsections 157(4) and 161(9) of the Act,where a particular taxation year of a new corporation that was formed as a result of an amalgamation (within the meaning assigned by section 87 of the Act) is its first taxation year,its first instalment base for the particular year means the total of all amounts each of which is equal to the product obtained when the total ofthe tax payable under Part I of the Act, andthe total of the taxes payable under Parts VI, VI.1 and XIII.1 of the Actby a predecessor corporation (as defined in section 87 of the Act) for its last taxation year is multiplied by the ratio that 365 is to the number of days in that year, andits second instalment base for the particular year means the aggregate of all amounts each of which is an amount equal to the amount of the first instalment base of a predecessor corporation for its last taxation year; andwhere a particular taxation year of a new corporation referred to in paragraph (a) is its second taxation year,its first instalment base for the particular year meanswhere the number of days in its first taxation year is greater than 182, the amount that would, but for this subsection, be determined under subsection (1) for the year, andin any other case, the greater of the amount that would, but for this subsection, be determined under subsection (1) for the year and its first instalment base for its first taxation year, andits second instalment base for the particular year means the amount of the first instalment base of the new corporation for its first taxation year.For the purposes of subsection (4), where the number of days in the last taxation year of a predecessor corporation is less than 183, the amount determined under subparagraph (4)(a)(i) in respect of the predecessor corporation shall be the greater ofthe amount otherwise determined under subparagraph (4)(a)(i) in respect of the predecessor corporation; andthe amount of the first instalment base of the predecessor corporation for its last taxation year.Subject to subsection (7), where a subsidiary within the meaning of subsection 88(1) of the Act is winding up, and, at a particular time in the course of the winding up, all or substantially all of the property of the subsidiary has been distributed to a parent within the meaning of subsection 88(1) of the Act, the following rules apply:there shall be added to the amount of the parent’s first instalment base for its taxation year that includes the particular time the amount of the subsidiary’s first instalment base for its taxation year that includes the particular time;there shall be added to the amount of the parent’s second instalment base for its taxation year that includes the particular time the amount of the subsidiary’s second instalment base for its taxation year that includes the particular time;there shall be added to the amount of the parent’s first instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount that is the proportion of the subsidiary’s first instalment base for its taxation year referred to in paragraph (a) thatthe number of complete months that ended at or before the particular time in the taxation year of the parent that includes the particular timeis of12; andthere shall be added to the amount of the parent’s second instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount of the subsidiary’s first instalment base for its taxation year that includes the particular time.The amount of an instalment of tax for the taxation year referred to in paragraphs (6)(a) and (b) that a parent is deemed under subsection 161(4.1) of the Act to have been liable to pay before the particular time referred to in subsection (6) shall be determined as if subsection (6) were not applicable in respect of a distribution of property described in that subsection occurring after the day on or before which the instalment was required to be paid.Subject to subsection (9), if at a particular time a corporation (in this subsection referred as the “transferor”) has disposed of all or substantially all of its property to another corporation with which it was not dealing at arm’s length (in this subsection and subsection (9) referred to as the “transferee”) and subsection 85(1), (2) or 142.7(3) of the Act applied in respect of the disposition of any of the property, the following rules apply:there shall be added to the amount of the transferee’s first instalment base for its taxation year that includes the particular time the amount of the transferor’s first instalment base for its taxation year that includes the particular time;there shall be added to the amount of the transferee’s second instalment base for its taxation year that includes the particular time the amount of the transferor’s second instalment base for its taxation year that includes the particular time;there shall be added to the amount of the transferee’s first instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount that is the proportion of the transferor’s first instalment base for its taxation year referred to in paragraph (a) thatthe number of complete months that ended at or before the particular time in the taxation year of the transferee that includes the particular timeis of12; andthere shall be added to the amount of the transferee’s second instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount of the transferor’s first instalment base for its taxation year that includes the particular time.The amount of an instalment of tax for the taxation year referred to in paragraphs (8)(a) and (b) that a transferee is deemed under subsection 161(4.1) of the Act to have been liable to pay before the particular time referred to in subsection (8) shall be determined as if subsection (8) were not applicable in respect of a disposition of property described in that subsection occurring after the day on or before which the instalment was required to be paid.For the purpose of this section, tax payable under Part I, VI or XIII.1 of the Act by a corporation for a taxation year means the corporation’s tax payable for the year under the relevant Part, determined before taking into consideration the specified future tax consequences for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-325, s. 2; SOR/81-855, s. 1; SOR/84-948, s. 14; SOR/85-696, s. 16; SOR/88-165, s. 27; SOR/89-409, s. 3; SOR/94-298, s. 1; SOR/94-686, s. 79(F); SOR/99-92, s. 2; SOR/2009-302, s. 10
[Repealed, SOR/2011-188, s. 21]
[Repealed, SOR/2011-188, s. 21][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/84-948, s. 15; SOR/88-165, s. 29(F); SOR/94-686, s. 69(F); SOR/2011-188, s. 21
[Repealed, SOR/2011-188, s. 21][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2011-188, s. 21]
Prescribed Programs and Benefits[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/95-298, s. 3Canadian Home Insulation Program
For the purposes of paragraphs 12(1)(u), 56(1)(s) and 212(1)(s) of the Act, the Canadian Home Insulation Program, as authorized and described in Vote 11a of Appropriation Act No. 3, 1977-78, as amended, Energy, Mines and Resources Vote 35, Main Estimates, 1981-82 as authorized by Appropriation Act No. 1, 1981-82, as amended, or the Canadian Home Insulation Program Act, is hereby prescribed to be a program of the Government of Canada relating to home insulation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-348, s. 2; SOR/81-936, s. 5
Canada Oil Substitution Program
For the purposes of paragraphs 12(1)(u), 56(1)(s) and 212(1)(s) of the Act, the Canada Oil Substitution Program, as authorized and described in paragraph (a) or (b) of Energy, Mines and Resources Vote 45, Main Estimates, 1981-82 as authorized by Appropriation Act No. 1, 1981-82, as amended, or the Oil Substitution and Conservation Act is hereby prescribed to be a program of the Government of Canada relating to energy conversion.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-936, s. 5
Benefits Under Government Assistance Programs
For the purposes of subparagraph 56(1)(a)(vi) and paragraph 153(1)(m) of the Act, the following benefits are prescribed:benefits under the Labour Adjustment Benefits Act;benefits under programs to provide income assistance payments, established pursuant to agreements under section 5 of the Department of Labour Act; andbenefits under programs to provide income assistance payments, administered pursuant to agreements under section 5 of the Department of Fisheries and Oceans Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/95-298, s. 4
Stabilization of Farm Income
For the purposes of the definition NISA Fund No. 2 in subsection 248(1) of the Act, a prescribed fund is Fonds 2 as defined under the Agri-Québec program established by La Financière agricole du Québec.For the purposes of the definition net income stabilization account in subsection 248(1) of the Act, a prescribed account is an account created under the Agri-Québec program established by La Financière agricole du Québec.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2011, c. 24, s. 86
Prescribed Distributions[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2004-82, s. 1
For the purpose of section 86.1 of the Act, the following distributions of shares are prescribed:the distribution by Active Biotech AB, on May 10, 1999, of shares of Wilhelm Sonesson AB;the distribution by Orckit Communications Ltd., on June 30, 2000, of shares of Tioga Technologies Ltd;the distribution by Electrolux AB, on June 12, 2006, of shares of Husqvarna AB;the distribution by Fiat S.p.A., on January 1, 2011 to its common shareholders, of common shares of Fiat Industrial S.p.A;the distribution by Foster’s Group Limited, on May 9, 2011 to its common shareholders, of common shares of Treasury Wine Estates Limited;the distribution by Telecom Corporation of New Zealand Limited, on November 30, 2011 to its common shareholders, of common shares of Chorus Limited;the distribution by Tyco International Ltd. of Switzerland, on September 28, 2012 to its common shareholders, of common shares of Pentair Ltd. of Switzerland;the distribution by Siemens AG, on July 5, 2013 to its common shareholders, of common shares of OSRAM Licht AG;the distribution by Brambles Limited, on December 18, 2013 to its common shareholders, of common shares of Recall Holdings Limited;the distribution by BHP Billiton Limited, on May 24, 2015 to its common shareholders, of common shares of South32 Limited;the distribution by Svenska Cellulosa Aktiebolaget SCA (publ), on June 15, 2017 to its common shareholders, of common shares of Essity Aktiebolag (publ);the distribution by Modern Times Group MTG AB, on March 28, 2019 to its common shareholders, of common shares of Nordic Entertainment Group AB; andthe distribution by Novartis AG, on April 9, 2019 to its common shareholders, of common shares of Alcon Inc.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 48; SOR/2004-82, s. 2; SOR/2011-188, s. 22; 2013, c. 40, s. 111; SOR/2015-170, s. 3; 2017, c. 33, s. 96SOR/2024-231, s. 12
Medical Expense Tax Credit[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 108
For the purposes of paragraph 118.2(2)(m) of the Act, a device or equipment is prescribed if it is awig made to order for an individual who has suffered abnormal hair loss owing to disease, medical treatment or accident;needle or syringe designed to be used for the purpose of giving an injection;device or equipment, including a replacement part, designed exclusively for use by an individual suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation, but not including an air conditioner, humidifier, dehumidifier, heat pump or heat or air exchanger;air or water filter or purifier for use by an individual who is suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation to cope with or overcome that ailment or disregulation;electric or sealed combustion furnace acquired to replace a furnace that is neither an electric furnace nor a sealed combustion furnace, where the replacement is necessary solely because of a severe chronic respiratory ailment or a severe chronic immune system disregulation;air conditioner acquired for use by an individual to cope with the individual’s severe chronic ailment, disease or disorder, to the extent of the lesser of $1,000 and 50% of the amount paid for the air conditioner;device or equipment designed to pace or monitor the heart of an individual who suffers from heart disease;orthopaedic shoe or boot or an insert for a shoe or boot made to order for an individual in accordance with a prescription to overcome a physical disability of the individual;power-operated guided chair installation, for an individual, that is designed to be used solely in a stairway;mechanical device or equipment designed to be used to assist an individual to enter or leave a bathtub or shower or to get on or off a toilet;hospital bed including such attachments thereto as may have been included in a prescription therefor;device that is exclusively designed to assist an individual in walking where the individual has a mobility impairment;external breast prosthesis that is required because of a mastectomy;teletypewriter or similar device, including a telephone ringing indicator, that enables a deaf or mute individual to make and receive telephone calls;optical scanner or similar device designed to be used by a blind individual to enable him to read print;device or software designed to be used by a blind individual, or an individual with a severe learning disability, to enable the individual to read print;power-operated lift or transportation equipment designed exclusively for use by, or for, a disabled individual to allow the individual access to different areas of a building or to assist the individual to gain access to a vehicle or to place the individual’s wheelchair in or on a vehicle;device designed exclusively to enable an individual with a mobility impairment to operate a vehicle;device or equipment, including a synthetic speech system, braille printer and large print-on-screen device, designed exclusively to be used by a blind individual in the operation of a computer;electronic speech synthesizer that enables a mute individual to communicate by use of a portable keyboard;device to decode special television signals to permit the script of a program to be visually displayed;a visual or vibratory signalling device, including a visual fire alarm indicator, for an individual with a hearing impairment;device designed to be attached to infants diagnosed as being prone to sudden infant death syndrome in order to sound an alarm if the infant ceases to breathe;infusion pump, including disposable peripherals, used in the treatment of diabetes or a device designed to enable a diabetic to measure the diabetic’s blood sugar level;blood coagulation monitor, including disposable peripherals, for use by an individual who requires anti-coagulation therapy;electronic or computerized environmental control system designed exclusively for the use of an individual with a severe and prolonged mobility restriction;extremity pump or elastic support hose designed exclusively to relieve swelling caused by chronic lymphedema;inductive coupling osteogenesis stimulator for treating non-union of fractures or aiding in bone fusion;talking textbook for use by an individual with a perceptual disability in connection with the individual’s enrolment at an educational institution in Canada, or a designated educational institution;Bliss symbol board, or similar device, designed to be used to help an individual who has a speech impairment communicate by selecting the symbols or spelling out words;Braille note-taker designed to be used by a blind individual to allow them to take notes (that can be read back to them or printed or displayed in Braille) with the help of a keyboard;page turner, designed to be used by an individual who has a severe and prolonged impairment that markedly restricts their ability to use their arms or hands to turn the pages of a book or other bound document;altered auditory feedback device designed to be used by an individual who has a speech impairment;electrotherapy device designed to be used by an individual with a medical condition or by an individual who has a severe mobility impairment;standing device designed to be used by an individual who has a severe mobility impairment to undertake standing therapy; orpressure pulse therapy device designed to be used by an individual who has a balance disorder.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-948, s. 1; SOR/85-696, s. 17; SOR/87-716, s. 1; SOR/90-809, s. 1; SOR/94-189, s. 1; SOR/99-387, s. 1; SOR/2001-4, s. 1; SOR/2007-212, s. 3; 2009, c. 2, s. 109; 2012, c. 19, s. 18SOR/2024-231, s. 13(E)
For the purpose of subparagraph 118.2(2)(n)(ii) of the Act, a drug, medicament or other preparation or substance is prescribed if itis manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function;is prescribed for a patient by a medical practitioner; andmay, in the jurisdiction in which it is acquired, be lawfully acquired for use by the patient only with the intervention of a medical practitioner.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 110
Retention of Books and Records
For the purposes of paragraph 230(4)(a) of the Act, the required retention periods for records and books of account of a person are prescribed as follows:in respect ofany record of the minutes of meetings of the directors of a corporation,any record of the minutes of meetings of the shareholders of a corporation,any record of a corporation containing details with respect to the ownership of the shares of the capital stock of the corporation and any transfers thereof,the general ledger or other book of final entry containing the summaries of the year-to-year transactions of a corporation, andany special contracts or agreements necessary to an understanding of the entries in the general ledger or other book of final entry referred to in subparagraph (iv),the period ending on the day that is two years after the day that the corporation is dissolved;in respect of all records and books of account that are not described in paragraph (a) of a corporation that is dissolved and in respect of the vouchers and accounts necessary to verify the information in such records and books of account, the period ending on the day that is two years after the day that the corporation is dissolved;in respect ofthe general ledger or other book of final entry containing the summaries of the year-to-year transactions of a business of a person (other than a corporation), andany special contracts or agreements necessary to an understanding of the entries in the general ledger or other book of final entry referred to in subparagraph (i),the period ending on the day that is six years after the last day of the taxation year of the person in which the business ceased;in respect ofany record of the minutes of meetings of the executive of a registered charity, registered Canadian amateur athletic association or registered journalism organization,any record of the minutes of meetings of the members of a registered charity, registered Canadian amateur athletic association or registered journalism organization, andall documents and by-laws governing a registered charity, registered Canadian amateur athletic association or registered journalism organization,the period ending on the day that is two years after the date on which the registration of the registered charity, the registered Canadian amateur athletic association or the registered journalism organization under the Act is revoked;in respect of all records and books of account that are not described in paragraph (d) and that relate to a registered charity, registered Canadian amateur athletic association or registered journalism organization whose registration under the Act is revoked, and in respect of the vouchers and accounts necessary to verify the information in such records and books of account, the period ending on the day that is two years after the date on which the registration of the registered charity, the registered Canadian amateur athletic association or the registered journalism organization under the Act is revoked;in respect of duplicates of receipts for gifts that are received by a qualified donee to which subsection 230(2) of the Act applies, the period ending on the day that is two years after the end of the last calendar year to which the receipts relate; andnotwithstanding paragraphs (c) to (f), in respect of all records, books of account, vouchers and accounts of a deceased taxpayer or a trust in respect of which a clearance certificate is issued pursuant to subsection 159(2) of the Act with respect to the distribution of all the property of such deceased taxpayer or trust, the period ending on the day that the clearance certificate is issued.For the purposes of subsection 230.1(3) of the Act, with respect to the application of paragraph 230(4)(a) of the Act, the required retention period for records and books of account that are required to be kept pursuant to section 230.1 of the Act is prescribed to be the period ending on the day that is two years after the end of the last calendar year to which the records or books of accounts relate.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-725, s. 6; SOR/82-879, s. 2; SOR/94-686, ss. 51(F), 79(F); 2011, c. 24, s. 872019, c. 29, s. 58
[Repealed, SOR/81-725, s. 6][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-725, s. 6
Foreign Affiliates[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F)Dividends out of Exempt, Taxable and Pre-Acquisition Surplus
Where at any time a corporation resident in Canada or a foreign affiliate of the corporation receives a dividend on a share of any class of the capital stock of a foreign affiliate of the corporation,for the purposes of this Part and paragraph 113(1)(a) of the Act, the portion of the dividend paid out of the exempt surplus of the affiliate is prescribed to be that proportion of the dividend received thatsuch portion of the whole dividend paid by the affiliate on the shares of that class at that time as was deemed by section 5901 to have been paid out of the affiliate’s exempt surplus in respect of the corporationis ofthe whole dividend paid by the affiliate on the shares of that class at that time;for the purposes of this Part and paragraph 113(1)(a.1) of the Act, the portion of the dividend paid out of the hybrid surplus of the affiliate is prescribed to be that proportion of the dividend received thatthe portion of the whole dividend paid by the affiliate on the shares of that class at that time that was deemed by section 5901 to have been paid out of the affiliate’s hybrid surplus in respect of the corporationis ofthe whole dividend paid by the affiliate on the shares of that class at that time;for the purposes of this Part and subsection 91(5) and paragraphs 113(1)(b) and (c) of the Act, the portion of the dividend paid out of the taxable surplus of the affiliate is prescribed to be that proportion of the dividend received thatsuch portion of the whole dividend paid by the affiliate on the shares of that class at that time as was deemed by section 5901 to have been paid out of the affiliate’s taxable surplus in respect of the corporationis ofthe whole dividend paid by the affiliate on the shares of that class at that time;for the purposes of this Part and paragraph 113(1)(d) of the Act, the portion of the dividend paid out of the pre-acquisition surplus of the affiliate is prescribed to be that proportion of the dividend received thatsuch portion of the whole dividend paid by the affiliate on the shares of that class at that time as was deemed by section 5901 to have been paid out of the affiliate’s pre-acquisition surplus in respect of the corporationis ofthe whole dividend paid by the affiliate on the shares of that class at that time;for the purposes of this Part and paragraph 113(1)(a.1) of the Act, the foreign tax applicable to the portion of the dividend prescribed to have been paid out of the hybrid surplus of the affiliate is prescribed to be that proportion of the hybrid underlying tax applicable, in respect of the corporation, to the whole dividend paid by the affiliate on the shares of that class at that time thatthe amount of the dividend received by the corporation or the affiliate, as the case may be, on that share at that timeis ofthe whole dividend paid by the affiliate on the shares of that class at that time; andfor the purposes of this Part and paragraph 113(1)(b) of the Act, the foreign tax applicable to the portion of the dividend prescribed to have been paid out of the taxable surplus of the affiliate is prescribed to be that proportion of the underlying foreign tax applicable, in respect of the corporation, to the whole dividend paid by the affiliate on the shares of that class at that time thatthe amount of the dividend received by the corporation or the affiliate, as the case may be, on that share at that timeis ofthe whole dividend paid by the affiliate on the shares of that class at that time.Notwithstanding paragraphs (1)(a) and (b), where at any time a foreign affiliate of a corporation resident in Canada pays a dividend on a share of a class of its capital stock (other than a share in respect of which an election is made under subsection 93(1) of the Act) to the corporation, the corporation may, in its return of income under Part I of the Act for its taxation year in which the dividend was received by it, designate an amount not exceeding the portion of the dividend received that would, but for this subsection, be prescribed to have been paid out of the affiliate’s exempt surplus in respect of the corporation and that amountis prescribed to have been paid out of the affiliate’s taxable surplus in respect of the corporation and not to have been paid out of that exempt surplus; andfor the purposes of paragraph (1)(d) and the definitions underlying foreign tax and underlying foreign tax applicable in subsection 5907(1) is deemed to have been paid by the affiliate to the corporation as a separate whole dividend on the shares of that class of the capital stock immediately after that time, and that whole dividend is deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation.For the purposes of subsection 91(5) of the Act, if a person resident in Canada (other than a corporation) receives a dividend on a share of any class of the capital stock of a foreign affiliate of the person, the dividend is prescribed to have been paid out of the affiliate’s taxable surplus.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F); SOR/97-505, s. 2; 2013, c. 34, ss. 40, 78
Order of Surplus Distributions
Subject to subsection (1.1), if at any time in its taxation year a foreign affiliate of a corporation resident in Canada has paid a whole dividend on the shares of any class of its capital stock, for the purposes of this Partthe portion of the whole dividend deemed to have been paid out of the affiliate’s exempt surplus in respect of the corporation at that time is an amount equal to the lesser ofthe amount of the whole dividend, andthe amount, if any, by which the exempt surplus exceeds the total ofthe affiliate’s hybrid deficit, if any, in respect of the corporation at that time, andthe affiliate’s taxable deficit, if any, in respect of the corporation at that time;the portion of the whole dividend deemed to have been paid out of the affiliate’s hybrid surplus in respect of the corporation at that time is an amount equal to the lesser ofthe amount, if any, by which the amount of the whole dividend exceeds the portion determined under paragraph (a), andthe amount, if any, by which the hybrid surplus exceedsif the affiliate has an exempt deficit and a taxable deficit, in respect of the corporation at that time, the total of the exempt deficit and the taxable deficit,if the affiliate has an exempt deficit and no taxable deficit, in respect of the corporation at that time, the amount of the exempt deficit, andif the affiliate has a taxable deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the taxable deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time;the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation at that time is an amount equal to the lesser ofthe amount, if any, by which the amount of the whole dividend exceeds the total of the portions determined under paragraphs (a) and (a.1), andthe amount, if any, by which the taxable surplus exceedsif the affiliate has an exempt deficit and a hybrid deficit, in respect of the corporation at that time, the total of the exempt deficit and the hybrid deficit,if the affiliate has an exempt deficit and no hybrid deficit, in respect of the corporation at that time, the amount, if any, by which the exempt deficit exceeds the affiliate’s hybrid surplus in respect of the corporation at that time, andif the affiliate has a hybrid deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the hybrid deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time; andthe portion of the whole dividend deemed to have been paid out of the affiliate’s pre-acquisition surplus in respect of the corporation at that time is the amount, if any, by which the whole dividend exceeds the total of the portions determined under paragraphs (a) to (b).If the corporation resident in Canada that is referred to in subsection (1) elects in writing under this subsection in respect of the whole dividend referred to in subsection (1) and files the election with the Minister on or before the corporation’s filing-due date for its taxation year that includes the day the whole dividend was paid, subsection (1) applies in respect of the whole dividend as if its paragraphs (a.1) and (b) read as follows:the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation at that time is an amount equal to the lesser ofthe amount, if any, by which the amount of the whole dividend exceeds the portion determined under paragraph (a), andthe amount, if any, by which the taxable surplus exceedsif the affiliate has an exempt deficit and a hybrid deficit, in respect of the corporation at that time, the total of the exempt deficit and the hybrid deficit,if the affiliate has an exempt deficit and no hybrid deficit, in respect of the corporation at that time, the amount of the exempt deficit, andif the affiliate has a hybrid deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the hybrid deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time;the portion of the whole dividend deemed to have been paid out of the affiliate’s hybrid surplus in respect of the corporation at that time is an amount equal to the lesser ofthe amount, if any, by which the amount of the whole dividend exceeds the total of the portions determined under paragraphs (a) and (a.1),the amount, if any, by which the hybrid surplus exceedsif the affiliate has an exempt deficit and a taxable deficit, in respect of the corporation at that time, the total of the exempt deficit and the taxable deficit,if the affiliate has an exempt deficit and no taxable deficit, in respect of the corporation at that time, the amount, if any, by which the exempt deficit exceeds the affiliate’s taxable surplus in respect of the corporation at that time, andif the affiliate has a taxable deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the taxable deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time; andNotwithstanding subsection (1),if a foreign affiliate of a corporation resident in Canada pays a whole dividend (other than a whole dividend referred to in subsection 5902(1)) at any particular time in its taxation year that is more than 90 days after the commencement of that year or at any particular time in its 1972 taxation year that is before January 1, 1972, the portion of the whole dividend that would, in the absence of this paragraph, be deemed to have been paid out of the affiliate’s pre-acquisition surplus in respect of the corporation (otherwise than because of an election under paragraph (b)) is instead deemed to have been paid out of the exempt surplus, hybrid surplus and taxable surplus of the affiliate in respect of the corporation to the extent that it would have been deemed to have been so paid if, immediately after the end of that year, that portion were paid as a separate whole dividend before any whole dividend paid after the particular time and after any whole dividend paid before the particular time by the affiliate, and for the purposes of determining the exempt deficit, exempt surplus, hybrid deficit, hybrid surplus, hybrid underlying tax, taxable deficit, taxable surplus and underlying foreign tax of the affiliate in respect of the corporation at any time, that portion is deemed to have been paid as a separate whole dividend immediately following the end of the year and not to have been paid at the particular time; anda whole dividend referred to in subsection (1) that is paid at any time by a foreign affiliate of a corporation resident in Canada and that would, in the absence of this paragraph, be deemed under subsection (1) to have been, in whole or in part, paid out of the exempt surplus, hybrid surplus or taxable surplus of the affiliate in respect of the corporation is instead deemed to have been paid out of the pre-acquisition surplus of the affiliate in respect of the corporation ifthe corporation, and each other corporation, if any, of which the affiliate would, at that time, be a foreign affiliate if paragraph (b) of the definition equity percentage in subsection 95(4) of the Act were read as if the reference in that paragraph to “any corporation” were a reference to “any corporation other than a corporation resident in Canada” and that is, at that time, related to the corporation,where there is no such other corporation, elects in writing under this subparagraph and files the election with the Minister on or before the filing-due date for its taxation year in which the whole dividend is paid, andin any other case, jointly elect in writing under this subparagraph and file the election with the Minister on or before the earliest of the filing-due dates for their taxation years in which the whole dividend is paid,no shareholder of the affiliate is, at that time, a partnership a member of which isa corporation that would, in the absence of this subparagraph, be eligible to elect under subparagraph (i), ora foreign affiliate of such a corporation, andno particular person or particular partnership — in respect of which the affiliate would, at that time, be a foreign affiliate if paragraph (b) of the definition equity percentage in subsection 95(4) of the Act were read in the manner required by subparagraph (i) — has elected under subsection 90(3) of the Act in respect of the distribution that is the whole dividend wherein the case of a particular person, the particular person is, or is at that time related to, the corporation, orin the case of a particular partnership, a member of the particular partnership is, or is at that time related to, the corporation.Subsection (2.2) applies if, in respect of a whole dividend paid by a foreign affiliate of a corporation resident in Canada,the corporation determined not to make an election under subparagraph (2)(b)(i) in respect of the whole dividend before the filing-due date specified in the relevant clause of that subparagraph;the corporation demonstrates that the determination was made using reasonable efforts; andthe corporation, whether jointly with one or more other corporations or otherwise, files such an election on or before the day that is 10 years after that filing-due date.If this subsection applies and, in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit an election referred to in subsection (2.1) to be filed after the filing-due date specified in the relevant clause of subparagraph (2)(b)(i), that election is deemed to have been filed on that filing-due date.Notwithstanding subsections (1) and (2), for the purposes of the definitions exempt deficit, exempt surplus, taxable deficit and taxable surplus in subsection 5907(1), any amount designated pursuant to subsection 5900(2) in respect of a dividend paid by a foreign affiliate of a corporation resident in Canada increases the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation and decreases the portion of the whole dividend deemed to have been paid out of the affiliate’s exempt surplus in respect of the corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F); SOR/97-505, s. 3; 2013, c. 34, s. 79
Election in Respect of Capital Gains
If at any time a dividend (such time and each such dividend, respectively, referred to in this subsection and subsection (2) as the “dividend time” and an “elected dividend”) is, by virtue of an election made under subsection 93(1) of the Act by a corporation in respect of a disposition, deemed to have been received on a share (each such share referred to in this subsection as an “elected share”) of a class of the capital stock of a particular foreign affiliate of the corporation, the following rules apply:for the purposes of subsection 5900(1), in applying the provisions of subsection 5901(1),the particular affiliate’s exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, underlying foreign tax and net surplus, in respect of the corporation at the dividend time, are deemed to be those amounts that would otherwise be determined immediately before the dividend time ifeach other foreign affiliate of the corporation in which the affiliate had an equity percentage (within the meaning assigned by subsection 95(4) of the Act) at the dividend time had, immediately before the time that is immediately before the dividend time, paid a dividend equal to its net surplus in respect of the corporation, determined immediately before the time the dividend was paid, andany dividend referred to in clause (A) that any other foreign affiliate would have received had been received by it immediately before any such dividend that it would have paid, andthe particular affiliate is deemed to have paid a whole dividend at the dividend time on the shares of that class of its capital stock in an amount determined by the formulaA × BwhereAis the total of all amounts each of which is the amount of an elected dividend, andBis the greater ofone, andthe quotient determined by the formulaC/DwhereCis the amount of the particular affiliate’s net surplus determined under subparagraph (a)(i), andDis the greater ofone unit of the currency in which the amount determined for C is expressed, andthe amount that would have been received on the elected shares if the particular affiliate had at the dividend time paid dividends, on all shares of its capital stock, the total of which was equal to the amount of its net surplus referred to in subparagraph (a)(i); andsubject to paragraph 5905(5)(c), there is to be included, at the dividend time,under subparagraph (v) of the description of B in the definition exempt surplus in subsection 5907(1) in computing the particular affiliate’s exempt surplus or exempt deficit, as the case may be, in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the portion of any elected dividend that is prescribed by paragraph 5900(1)(a) to have been paid out of the exempt surplus of the particular affiliate,under subparagraph (vi) of the description of B in the definition hybrid surplus in subsection 5907(1) in computing the particular affiliate’s hybrid surplus or hybrid deficit, as the case may be, in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the portion of any elected dividend that is prescribed by paragraph 5900(1)(a.1) to have been paid out of the hybrid surplus of the particular affiliate,under subparagraph (iii) of the description of B in the definition hybrid underlying tax in subsection 5907(1) in computing the particular affiliate’s hybrid underlying tax in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the amount prescribed by paragraph 5900(1)(c.1) to be the foreign tax applicable to the portion of any elected dividend that is prescribed by paragraph 5900(1)(a.1) to have been paid out of the hybrid surplus of the particular affiliate,under subparagraph (v) of the description of B in the definition taxable surplus in subsection 5907(1) in computing the particular affiliate’s taxable surplus or taxable deficit, as the case may be, in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the portion of any elected dividend that is prescribed by paragraph 5900(1)(b) to have been paid out of the taxable surplus of the particular affiliate, andunder subparagraph (iii) of the description of B in the definition underlying foreign tax in subsection 5907(1) in computing the particular affiliate’s underlying foreign tax in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the amount prescribed by paragraph 5900(1)(d) to be the foreign tax applicable to such portion of any elected dividend as is prescribed by paragraph 5900(1)(b) to have been paid out of the taxable surplus of the particular affiliate.In this section,for the purpose of paragraph (1)(a),if a particular foreign affiliate of a corporation has an equity percentage (within the meaning assigned by subsection 95(4) of the Act) in another foreign affiliate of the corporation that has an equity percentage in the particular affiliate, the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, underlying foreign tax and net surplus of, and the amount of a dividend paid or received by, the particular affiliate are to be determined in a manner that isreasonable in the circumstances, andconsistent with the results that would be obtained if a series of actual dividends had been paid and received by the foreign affiliates of the corporation that are relevant to the determination, andif any foreign affiliate of a corporation resident in Canada has issued shares of more than one class of its capital stock, the amount that would be paid as a dividend on the shares of any class is the portion of its net surplus that, in the circumstances, it might reasonably be expected to have paid on all the shares of the class, andthe specified adjustment factor in respect of a disposition is the percentage determined by the formulaA/BwhereAisif the elected dividend is received by the corporation, 100 per cent, andif the elected dividend is received by another foreign affiliate of the corporation, the surplus entitlement percentage of the corporation in respect of the other affiliate immediately before the dividend time, andBis the surplus entitlement percentage of the corporation in respect of the particular affiliate immediately before the dividend time.[Repealed, 2013, c. 34, s. 41][Repealed, SOR/85-176, s. 1]Any election under subsection 93(1) of the Act by a corporation resident in Canada in respect of any share of the capital stock of a foreign affiliate of the corporation disposed of by it or by another foreign affiliate of the corporation shall be made by filing the prescribed form with the Minister on or before the day that is the later ofDecember 31, 1989; andwhere the election is madein respect of a share disposed of by the corporation, the day on or before which the corporation’s return of income for its taxation year in which the disposition was made is required to be filed pursuant to subsection 150(1) of the Act, orin respect of a share disposed of by another foreign affiliate of the corporation, the day on or before which the corporation’s return of income for its taxation year, in which the taxation year of the foreign affiliate in which the disposition was made ends, is required to be filed pursuant to subsection 150(1) of the Act,as the case may be.If at any time a corporation resident in Canada is deemed under subsection 93(1.11) of the Act to have made an election under subsection 93(1) of the Act in respect of a disposition of a share of the capital stock of a particular foreign affiliate of the corporation, the prescribed amount is the lesser ofthe capital gain, if any, otherwise determined in respect of the disposition of the share; andthe amount that would reasonably be expected to have been received in respect of the share if the particular affiliate had at that time paid dividends, on all shares of its capital stock, the total of which was equal to the amount determined under subparagraph (1)(a)(i) to be its net surplus in respect of the corporation for the purposes of the election.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-141, s. 1; SOR/82-910, s. 1; SOR/85-176, s. 1; SOR/89-135, s. 1; SOR/94-686, s. 79(F); SOR/97-505, s. 4; 2013, c. 34, ss. 41, 80
Deductible Loss
For the purposes of the description of F in the definition foreign accrual property income in subsection 95(1) of the Act, subject to subsection (2), the prescribed amount for the year (referred to in this subsection and subsection (2) as the “particular year”) is the total of all amounts each of which is a portion designated for the particular year by the taxpayer of the foreign accrual property loss of the affiliate for a taxation year of the affiliate that isone of the 20 taxation years of the affiliate that immediately precede the particular year; orone of the three taxation years of the affiliate that immediately follow the particular year.For the purposes of this subsection and subsection (1),a portion of a foreign accrual property loss of the affiliate for any taxation year of the affiliate may be designated for the particular year only to the extent that the foreign accrual property loss exceeds the total of all amounts each of which is a portion, of the foreign accrual property loss, designated by the taxpayer for a taxation year of the affiliate that precedes the particular year;no portion of the affiliate’s foreign accrual property loss for a taxation year of the affiliate is to be designated for the particular year until the affiliate’s foreign accrual property losses for the preceding taxation years referred to in paragraph (1)(a) have been fully designated; andif any person or partnership that was, at the end of a taxation year (referred to in this paragraph as the “relevant loss year”) of the affiliate, a relevant person or partnership in respect of the taxpayer designates for a taxation year (referred to in this paragraph as the “relevant claim year”) of the affiliate a particular portion of the affiliate’s foreign accrual property loss for the relevant loss year, there is deemed to have been designated for the relevant claim year by the taxpayer the portion of that loss that is the greater ofthe particular portion, andthe greatest of the portions of that loss that are so designated by any other relevant persons or partnerships in respect of the taxpayer.For the purposes of this section, and subject to subsection (4), foreign accrual property loss of the affiliate for a taxation year of the affiliate meanswhere, at the end of the year, the affiliate is a controlled foreign affiliate of a person or partnership that is, at the end of the year, a relevant person or partnership in respect of the taxpayer, the amount, if any, determined by the formulaJ – (K + L + M + N)whereJis the amount determined for D in the formula in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the affiliate for the year,Kis the amount, if any, by whichthe amount determined for A in that formula in respect of the affiliate for the yearexceedsthe amount determined for H in that formula in respect of the affiliate for the year,Lis the amount, if any, by whichthe amount determined for B in that formula in respect of the affiliate for the yearexceedsthe total ofthe amount determined for E in that formula in respect of the affiliate for the year, andthe amount determined for F.1 in that formula in respect of the affiliate for the year,Mis the amount determined for C in that formula in respect of the affiliate for the year, andNis the amount, if any, by whichthe total ofthe amount determined for A.1 in that formula in respect of the affiliate for the year, andthe amount determined for A.2 in that formula in respect of the affiliate for the yearexceedsthe amount determined for G in that formula in respect of the affiliate for the year; andin any other case, nil.In computing under subsection (3) the foreign accrual property loss of the affiliate for a taxation year, if the affiliate or another corporation receives a payment described in subsection 5907(1.3) from a non-resident corporation that is, at the time of the payment, a foreign affiliate of a relevant person or partnership in respect of the taxpayer and any portion of the payment can reasonably be considered to relate to a loss or portion of a loss of the affiliate for the year described in the description of D in the definition foreign accrual property income in subsection 95(1) of the Act, the amount of the loss or portion of the loss is deemed to be nil.For the purposes of this section, section 5903.1 and section 18.2 of the Act,if paragraph 95(2)(d.1) of the Act applies to a foreign merger, the new foreign corporation referred to in that paragraph is, except in the determination of the foreign accrual property income of a foreign affiliate predecessor referred to in that paragraph, deemed to be the same corporation as, and a continuation of, each foreign affiliate predecessor; andif paragraph 95(2)(e) of the Act applies to a liquidation and dissolution, of a disposing affiliate referred to in that paragraph, that is a designated liquidation and dissolution of the disposing affiliate, the shareholder affiliate referred to in that paragraph is, except in the determination of the foreign accrual property income of the disposing affiliate, deemed to be the same corporation as, and a continuation of, the disposing affiliate.In this section and section 5903.1, a relevant person or partnership, in respect of the taxpayer at any time, means the taxpayer or a person (other than a designated acquired corporation of the taxpayer), or a partnership, that is at that timea person (other than a partnership) that is resident in Canada and does not, at that time, deal at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b) of the Act) with the taxpayer;an antecedent corporation of a relevant person or partnership in respect of the taxpayer;a partnership a member of which is at that time a relevant person or partnership in respect of the taxpayer under this subsection; orwhere paragraph (1)(b) is being applied, a corporation of which the taxpayer is an antecedent corporation.For the purposes of paragraphs (6)(a) to (d),if a person or partnership (referred to in this paragraph as the “relevant person”) is not dealing at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b) of the Act) with another person or partnership (referred to in this paragraph as the “particular person”) at a particular time, the relevant person is deemed to have existed and not to have dealt at arm’s length with the particular person, nor with each antecedent corporation (other than a designated acquired corporation of the particular person) of the particular person, throughout the period that began when the particular person or the antecedent corporation, as the case may be, came into existence and that ends at the particular time; andwhere paragraph (1)(b) is being applied, if a corporation of which a particular person (other than a designated acquired corporation of the corporation) is an antecedent corporation is not dealing at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b) of the Act) with another person or partnership at any time, the particular person is deemed to exist and not to be dealing at arm’s length with the other person or the partnership, as the case may be, at that time.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-141, s. 2; SOR/85-176, s. 2; SOR/89-135, s. 2; SOR/94-686, s. 79(F); SOR/97-505, s. 5; 2013, c. 34, ss. 42, 812024, c. 15, s. 82
For the purposes of the description of F.1 in the definition foreign accrual property income in subsection 95(1) of the Act, subject to subsection (2), the prescribed amount for the year (referred to in this subsection and subsection (2) as the “particular year”) is the total of all amounts each of which is a portion designated for the particular year by the taxpayer of the foreign accrual capital loss of the affiliate for a taxation year of the affiliate that isone of the twenty taxation years of the affiliate that immediately precede the particular year; orone of the three taxation years of the affiliate that immediately follow the particular year.For the purposes of this subsection and subsection (1),a portion of a foreign accrual capital loss of the affiliate for any taxation year of the affiliate may be designated for the particular year only to the extent that the foreign accrual capital loss exceeds the total of all amounts each of which is a portion, of the foreign accrual capital loss, designated by the taxpayer for a taxation year of the affiliate that precedes the particular year;no portion of the foreign accrual capital loss of the affiliate for a taxation year of the affiliate is to be designated for the particular year until the foreign accrual capital losses of the affiliate for the preceding taxation years referred to in paragraph (1)(a) have been fully designated; andif any person or partnership that was, at the end of a taxation year (referred to in this paragraph as the “relevant loss year”) of the affiliate, a relevant person or partnership in respect of the taxpayer designates for a taxation year (referred to in this paragraph as the “relevant claim year”) of the affiliate a particular portion of the foreign accrual capital loss of the affiliate for the relevant loss year, there is deemed to have been designated for the relevant claim year by the taxpayer the portion of that loss that is the greater ofthe particular portion, andthe greatest of the portions of that loss that are so designated by any other relevant persons or partnerships in respect of the taxpayer.For the purposes of this section, and subject to subsection (4), foreign accrual capital loss of the affiliate for a taxation year of the affiliate meanswhere, at the end of the year, the affiliate is a controlled foreign affiliate of a person or partnership that is, at the end of the year, a relevant person or partnership in respect of the taxpayer, the amount, if any, by whichthe amount determined under paragraph (a) of the description of E in the formula in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the affiliate for the yearexceedsthe amount determined for E in that formula in respect of the affiliate for the year; andin any other case, nil.In computing under subsection (3) the foreign accrual capital loss of the affiliate for a taxation year, if the affiliate or another corporation receives a payment described in subsection 5907(1.3) from a non-resident corporation that is, at the time of the payment, a foreign affiliate of a relevant person or partnership in respect of the taxpayer and any portion of the payment can reasonably be considered to relate to an allowable capital loss or a portion of an allowable capital loss of the affiliate for the year described in the description of E in the definition foreign accrual property income in subsection 95(1) of the Act, the amount of the loss or portion of the loss is deemed to be nil.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 82
Participating Percentage
For the purpose of subparagraph (b)(ii) of the definition participating percentage in subsection 95(1) of the Act, the participating percentage of a particular share owned by a taxpayer of the capital stock of a corporation in respect of any foreign affiliate of the taxpayer that was, at the end of its taxation year, a controlled foreign affiliate of the taxpayer is prescribed to be the percentage that would be the taxpayer’s equity percentage in the affiliate at that time on the assumption thatthe taxpayer owned no shares other than the particular share;the direct equity percentage of a person in any foreign affiliate of the taxpayer, for which the total of the distribution entitlements of all the shares of all classes of the capital stock of the affiliate was greater than nil, was determined by the following rules and not by the rules contained in the definition direct equity percentage in subsection 95(4) of the Act:for each class of the capital stock of the affiliate, determine that amount that is the proportion of the distribution entitlement of all the shares of that class that the number of shares of that class owned by that person is of all the issued shares of that class, anddetermine the proportion thatthe aggregate of the amounts determined under subparagraph (i) for each class of the capital stock of the affiliateis ofthe aggregate of the distribution entitlements of all the issued shares of all classes of the capital stock of the affiliateand the proportion determined under subparagraph (ii) when expressed as a percentage is that person’s direct equity percentage in the affiliate; andthe direct equity percentage of a person in any foreign affiliate of the taxpayer, for which the total of the distribution entitlements of all the shares of all classes of the capital stock of the affiliate would not, in the absence of this paragraph, be greater than nil, was determined on the assumption that the amount determined under subparagraph (2)(b)(i) were the greater ofthe amount of the affiliate’s retained earnings, if any, determined at the end of the taxation year under accounting principles that are relevant to the affiliate for the taxation year, andthe amount determined by the formula A × BwhereAis the amount of the affiliate’s total assets determined at the end of the taxation year under accounting principles that are relevant to the affiliate for the taxation year, andBis 25%.For the purposês of this section, the distribution entitlement of all the shares of a class of the capital stock of a foreign affiliate of the taxpayer at the end of its taxation year is the aggregate ofthe distributions made during the year by the affiliate to holders of shares of that class; andthe amount that the affiliate might reasonably be expected to distribute to holders of shares of that class immediately after the end of the year if at that time it had distributed to its shareholders an amount equal to the aggregate ofthe amount, if any, by which the net surplus of the affiliate in respect of the taxpayer at the end of the year, computed as though any adjustments resulting from the provisions of sections 5902 and 5905 and subsections 5907(2.1) and (2.2) and any references thereto during the year were ignored, exceeds the net surplus of the affiliate in respect of the taxpayer at the end of its immediately preceding taxation year, andthe amount that the affiliate would receive if at that time each controlled foreign affiliate of the taxpayer in which the affiliate had an equity percentage had distributed to its shareholders an amount equal to the aggregate ofthe amount that would be determined under subparagraph (i) for the controlled foreign affiliate if the controlled foreign affiliate were the foreign affiliate referred to in subparagraph (i), for each of the taxation years of the controlled foreign affiliate ending in the taxation year of the affiliate, andeach such amount that the controlled foreign affiliate would receive from any other controlled foreign affiliate of the taxpayer in which it had an equity percentage.For the purposes of subsection (2),the net surplus of a foreign affiliate of a person resident in Canada is, in respect of that person, to be computed as if that person were a corporation resident in Canada;if a particular foreign affiliate of a corporation has an equity percentage (within the meaning assigned by subsection 95(4) of the Act) in another foreign affiliate of the corporation that has an equity percentage in the particular affiliate, the net surplus of, or the amount of a distribution received by, the particular affiliate is to be determined in a manner that isreasonable in the circumstances, andconsistent with the results that would be obtained if a series of actual distributions had been made and received by the foreign affiliates of the corporation that are relevant to the determination;if any controlled foreign affiliate of a taxpayer resident in Canada has issued shares of more than one class of its capital stock, the amount that would be distributed to the holders of shares of any class is such portion of the amount determined under subparagraph (2)(b)(ii) as, in the circumstances, it might reasonably be expected to distribute to the holders of those shares; andin determining the distribution entitlementof a class of shares of the capital stock of a foreign affiliate that is entitled to cumulative dividends, the amount of any distribution referred to in paragraph (2)(a) shall be deemed not to include any distribution in respect of such class that is, or would, if it were made, be referable to profits of a preceding taxation year, andof any other class of shares of the capital stock of the affiliate, the net surplus of the affiliate at the end of the year referred to in subparagraph (2)(b)(i) shall be deemed not to have been reduced by any distribution described in subparagraph (i) with respect to a class of shares that is entitled to cumulative dividends to the extent that the distribution was referable to profits of a preceding taxation year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-913, s. 1; SOR/80-141, s. 3; SOR/94-686, s. 79(F); SOR/97-505, s. 6; 2013, c. 34, ss. 43, 83
Special Rules
If, at any time, there is an acquisition or a disposition of shares of the capital stock of a particular foreign affiliate of a corporation resident in Canada and the surplus entitlement percentage of the corporation in respect of the particular foreign affiliate or any other foreign affiliate (the particular affiliate and those other affiliates each being referred to in this subsection as a “relevant affiliate”) of the corporation in which the particular affiliate has an equity percentage (within the meaning assigned by subsection 95(4) of the Act) changes, for the purposes of the definitions exempt surplus, hybrid surplus, hybrid underlying tax, taxable surplus, and underlying foreign tax in subsection 5907(1), each of the opening exempt surplus or opening exempt deficit, opening hybrid surplus or opening hybrid deficit, opening hybrid underlying tax, opening taxable surplus or opening taxable deficit, and opening underlying foreign tax, as the case may be, of the relevant affiliate in respect of the corporation is, except where the acquisition or disposition occurs in a transaction to which paragraph (3)(a) or subsection (5) or (5.1) applies, the amount determined at that time by the formulaA × B/CwhereAis the amount of that surplus, deficit or tax, as the case may be, as otherwise determined at that time;Bis the corporation’s surplus entitlement percentage immediately before that time in respect of the relevant affiliate; andCis the corporation’s surplus entitlement percentage immediately after that time in respect of the relevant affiliate.[Repealed, 2013, c. 34, s. 44]If at any time (referred to in this subsection as the “merger time”) a foreign affiliate (referred to in this subsection as the “merged affiliate”) of a corporation resident in Canada has been formed as a result of a foreign merger (within the meaning assigned by subsection 87(8.1) of the Act) of two or more corporations (referred to individually in this subsection as a “predecessor corporation”), the following rules apply:for the purposes of the definitions exempt surplus, hybrid surplus, hybrid underlying tax, taxable surplus and underlying foreign tax in subsection 5907(1), as they apply in respect of the merged affiliate,the merged affiliate’s opening exempt surplus, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the exempt surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the exempt deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time,the merged affiliate’s opening exempt deficit, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the exempt deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the exempt surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time,the merged affiliate’s opening hybrid surplus, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the hybrid surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the hybrid deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time,the merged affiliate’s opening hybrid deficit, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the hybrid deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the hybrid surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time,the merged affiliate’s opening hybrid underlying tax in respect of the corporation shall be the total of all amounts each of which is the hybrid underlying tax of a predecessor corporation, in respect of the corporation, immediately before the merger time,the merged affiliate’s opening taxable surplus, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the taxable surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the taxable deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time,the merged affiliate’s opening taxable deficit, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the taxable deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the taxable surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time, andthe merged affiliate’s opening underlying foreign tax in respect of the corporation shall be the total of all amounts each of which is the underlying foreign tax of a predecessor corporation, in respect of the corporation, immediately before the merger time;for the purposes of paragraph (a),each of the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit and underlying foreign tax, in respect of the corporation, of each predecessor corporation immediately before the merger time is deemed to be the amount determined by the formulaA × B/CwhereAis the amount of that surplus, deficit or tax, as the case may be, as otherwise determined,Bis the surplus entitlement percentage of the corporation immediately before the merger time in respect of the predecessor corporation, andCis the percentage that would be the surplus entitlement percentage of the corporation immediately after the merger time in respect of the merged affiliate if the merged affiliate’s net surplus were the total of all amounts each of which is the net surplus of a predecessor corporation immediately before the merger time, butthe values for A, B and C in the formula in subparagraph (i) shall take into account the application of paragraph 5902(1)(b) and subsection 5907(8) in respect of the merger; andin respect of any foreign affiliate (other than a predecessor corporation) of the corporation in which a predecessor corporation had an equity percentage (within the meaning assigned by subsection 95(4) of the Act) immediately before the merger time, for the purposes of subsection (1), there is deemed to be an acquisition or a disposition of shares of the capital stock of that affiliate at the merger time.[Repealed, 2013, c. 34, s. 44]If there is, at any time, a disposition by a corporation (referred to in this subsection as the “disposing corporation”) resident in Canada of any of the shares (referred to in this subsection as the “disposed shares”) of the capital stock of a particular foreign affiliate of the disposing corporation to a taxable Canadian corporation (referred to in this subsection as the “acquiring corporation”) with which the disposing corporation is not dealing at arm’s length,each of the opening exempt surplus or opening exempt deficit, opening hybrid surplus or opening hybrid deficit, opening hybrid underlying tax, opening taxable surplus or opening taxable deficit, and opening underlying foreign tax, in respect of the acquiring corporation, of the particular affiliate and of each foreign affiliate of the disposing corporation in which the particular affiliate has, immediately before that time, an equity percentage (within the meaning assigned by subsection 95(4) of the Act) is deemed to be the amount, if any,in the case of its opening exempt surplus, by which the total of its exempt surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its exempt deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time,in the case of its opening exempt deficit, by which the total of its exempt deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its exempt surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time,in the case of its opening hybrid surplus, by which the total of its hybrid surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its hybrid deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time,in the case of its opening hybrid deficit, by which the total of its hybrid deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its hybrid surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time,in the case of its opening hybrid underlying tax, that is the total of its hybrid underlying tax in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time,in the case of its opening taxable surplus, by which the total of its taxable surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its taxable deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time,in the case of its opening taxable deficit, by which the total of its taxable deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its taxable surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, andin the case of its opening underlying foreign tax, that is the total of its underlying foreign tax in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time;for the purposes of paragraph (a), each of the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax of an affiliate in respect of the disposing corporation and the acquiring corporation, determined immediately before that time, is deemed to be the amount determined by the formulaA × B/CwhereAis the amount of that surplus, deficit or tax, as the case may be, as determined without reference to this subsection but taking into account the application of subparagraph (c)(i), if applicable,Bis the surplus entitlement percentage immediately before that time of the disposing corporation or the acquiring corporation, as the case may be, in respect of the affiliate, determined as if the disposed shares were the only shares owned by the disposing corporation immediately before that time, andCis the surplus entitlement percentage immediately after that time of the acquiring corporation in respect of the affiliate;if the disposing corporation makes an election under subsection 93(1) of the Act in respect of the disposed shares,for the purposes of paragraph (b), the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax of an affiliate in respect of the disposing corporation, as determined without reference to this subsection, immediately before that time, shall be adjusted in accordance with paragraph 5902(1)(b) as if the disposing corporation’s surplus entitlement percentage that is referred to in the description of B in paragraph 5902(2)(b) were determined as if the disposed shares were the only shares owned by the disposing corporation immediately before that time, andno adjustment shall be made to the amount of the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, or underlying foreign tax of an affiliate in respect of the disposing corporation under paragraph 5902(1)(b) other than for the purpose of paragraph (b); andfor greater certainty, no adjustment shall be made under subsection (1) to the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, or underlying foreign tax of an affiliate in respect of the disposing corporation.If there is, at any time, an amalgamation within the meaning of subsection 87(1) of the Act and, as a result of the amalgamation, shares of the capital stock of a particular foreign affiliate of a predecessor corporation become property of the new corporation,each of the opening exempt surplus or opening exempt deficit, opening hybrid surplus or opening hybrid deficit, opening hybrid underlying tax, opening taxable surplus or opening taxable deficit, and opening underlying foreign tax, in respect of the new corporation, of the particular affiliate and of each foreign affiliate of the predecessor corporation in which the particular affiliate has, immediately before that time, an equity percentage (within the meaning assigned by subsection 95(4) of the Act) is deemed to be the amount, if any,in the case of its opening exempt surplus, by which the total of its exempt surplus in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its exempt deficit in respect of each predecessor corporation, determined immediately before that time,in the case of its opening exempt deficit, by which the total of its exempt deficit in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its exempt surplus in respect of each predecessor corporation, determined immediately before that time,in the case of its opening hybrid surplus, by which the total of its hybrid surplus in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its hybrid deficit in respect of each predecessor corporation, determined immediately before that time,in the case of its opening hybrid deficit, by which the total of its hybrid deficit in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its hybrid surplus in respect of each predecessor corporation, determined immediately before that time,in the case of its opening hybrid underlying tax, that is the total of its hybrid underlying tax in respect of each predecessor corporation, determined immediately before that time,in the case of its opening taxable surplus, by which the total of its taxable surplus in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its taxable deficit in respect of each predecessor corporation, determined immediately before that time,in the case of its opening taxable deficit, by which the total of its taxable deficit in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its taxable surplus in respect of each predecessor corporation, determined immediately before that time, andin the case of its opening underlying foreign tax, that is the total of its underlying foreign tax in respect of each predecessor corporation, determined immediately before that time; andfor the purpose of paragraph (a), each of the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax of an affiliate in respect of a predecessor corporation, determined immediately before that time, is deemed to be the amount determined by the formulaA × B/CwhereAis the amount of that surplus, deficit or tax, as the case may be, as determined without reference to this subsection,Bis the predecessor corporation’s surplus entitlement percentage immediately before that time in respect of the affiliate, andCis the new corporation’s surplus entitlement percentage immediately after that time in respect of the affiliate.[Repealed, 2013, c. 34, s. 44]If, at a particular time, control of a corporation resident in Canada has been acquired by a person or a group of persons and, at the particular time, the corporation owns shares of the capital stock of a foreign affiliate of the corporation, there shall be included — under subparagraph (v) of the description of B in the definition exempt surplus in subsection 5907(1) in computing the affiliate’s exempt surplus or exempt deficit, as the case may be, in respect of the corporation at the time that is immediately before the particular time — the amount, if any, determined by the formula(A + B – C)/DwhereAis the amount determined by the formulaE × FwhereEis the affiliate’s tax-free surplus balance in respect of the corporation, determined at the time (referred to in this subsection as the “relevant time”) that is immediately before the time that is immediately before the particular time, andFis the corporation’s surplus entitlement percentage in respect of the affiliate determined at the relevant time;Bis the total of all amounts each of which is the corporation’s cost amount, determined at the particular time, of a share of the capital stock of the affiliate that is owned by the corporation at the particular time;Cis the total ofthe fair market value, determined at the particular time, of all of the shares of the capital stock of the affiliate that are owned by the corporation at the particular time, andthe amount, if any, determined under paragraph 5908(6)(b); andDis the corporation’s surplus entitlement percentage in respect of the affiliate determined at the relevant time.The cost amount of a share that is referred to in the description of B in subsection (5.2) shall be determined after taking into account the application of subsection 111(4) of the Act.For the purposes of clause (B) of subparagraph 88(1)(d)(ii) of the Act, the prescribed amount isif the property described in that subparagraph is a share of the capital stock of a foreign affiliate of the subsidiary, the amount determined by the formulaA × BwhereAis the affiliate’s tax-free surplus balance, in respect of the subsidiary, determined at the time at which the parent last acquired control of the subsidiary, andBis the percentage that would be the subsidiary’s surplus entitlement percentage, determined at that time, in respect of the affiliate if at that time the subsidiary had owned no shares of the affiliate’s capital stock other than the share;if the property described in that subparagraph is an interest in a partnership, the amount determined by subsection 5908(7); andin any other case, nil.For the purposes of subsections (5.2), (5.4), (7.2) and (7.3), the tax-free surplus balance of a foreign affiliate of a corporation resident in Canada, in respect of the corporation, at any time, is the total ofthe amount, if any, by which the affiliate’s exempt surplus in respect of the corporation at that time exceeds the total ofthe affiliate’s hybrid deficit, if any, in respect of the corporation at that time, andthe affiliate’s taxable deficit, if any, in respect of the corporation at that time;the amount, if any, by which the amount of the affiliate’s hybrid surplus in respect of the corporation at that time exceeds the amount determined under subsection (5.7) in respect of the corporation at that time if, at that time, the amount of that hybrid surplus is less than or equal to the amount determined by the formula[A × (B – 0.5)] + (C × 0.5)whereAis the affiliate’s hybrid underlying tax in respect of the corporation at that time,Bis the corporation’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act) for the corporation’s taxation year that includes that time, andCis the affiliate’s hybrid surplus in respect of the corporation at that time; andthe lesser ofthe amount, if any, determined by the formula A × BwhereAis the affiliate’s underlying foreign tax in respect of the corporation at that time, andBis the amount by which the corporation’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act), for the corporation’s taxation year that includes that time, exceeds one, andthe amount, if any, by which the affiliate’s taxable surplus in respect of the corporation at that time exceedsif the affiliate has an exempt deficit and a hybrid deficit, in respect of the corporation at that time, the total of the exempt deficit and the hybrid deficit,if the affiliate has an exempt deficit and no hybrid deficit, in respect of the corporation at that time, the amount, if any, by which the exempt deficit exceeds the affiliate’s hybrid surplus in respect of the corporation at that time, andif the affiliate has a hybrid deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the hybrid deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time.For the purposes of subsection (5.5), the amounts of exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax, of a foreign affiliate of corporation resident in Canada, in respect of the corporation, at a particular time are those amounts that would be determined, at the particular time, under subparagraph 5902(1)(a)(i) if that subparagraph were applicable at the particular time and the references in that subparagraph to “the dividend time” were references to the particular time.For the purposes of paragraph (5.5)(a.1), the amount determined under this subsection in respect of the corporation at any time isif the affiliate has an exempt deficit and a taxable deficit, in respect of the corporation at that time, the total of the exempt deficit and the taxable deficit;if the affiliate has an exempt deficit and no taxable deficit, in respect of the corporation at that time, the amount of the exempt deficit; andif the affiliate has a taxable deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the taxable deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time.[Repealed, 2013, c. 34, s. 44]If at any time there has been a liquidation and dissolution of a foreign affiliate (referred to in this subsection as the “dissolved affiliate”) of a corporation resident in Canada that is a designated liquidation and dissolution (within the meaning assigned by subsection 95(1) of the Act) of the dissolved affiliate, each other foreign affiliate of the corporation that had a direct equity percentage (within the meaning assigned by subsection 95(4) of the Act) in the dissolved affiliate immediately before that time is, for the purposes of computing its exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax, in respect of the corporation, deemed to have received dividends immediately before that time the total of which is equal to the amount it might reasonably have expected to receive if the dissolved affiliate had, immediately before that time, paid dividends on all shares of its capital stock the total of which was equal to the amount of its net surplus in respect of the corporation immediately before that time, determined on the assumption that the taxation year of the dissolved affiliate that otherwise would have included that time had ended immediately before that time.Subsection (7.2) applies ifa foreign affiliate (referred to in this subsection and subsections (7.2) to (7.6) as the “deficit affiliate”) of a corporation resident in Canada has an exempt deficit, in respect of the corporation, at a particular time; andat the time (referred to in this paragraph and subsections (7.2) to (7.6) as the “acquisition time”) that is immediately after the particular time, shares of the capital stock of a foreign affiliate (referred to in this subsection and subsections (7.2) to (7.6) as an “acquired affiliate”) of the corporation in which the deficit affiliate has, at the particular time, an equity percentage (within the meaning assigned by subsection 95(4) of the Act) are acquired by, or otherwise become property of,the corporation, oranother foreign affiliate of the corporation, in the case where the percentage that would, if the deficit affiliate were resident in Canada, be the deficit affiliate’s surplus entitlement percentage in respect of the acquired affiliate immediately after the acquisition time is less than the percentage that would, if the deficit affiliate were so resident, be its surplus entitlement percentage in respect of the acquired affiliate at the particular time.If this subsection applies, there is to be included,at the time (referred to in this subsection and subsections (7.6) and (7.7) and 5908(11) and (12) as the “adjustment time”) that is immediately before the time that is immediately before the time that is immediately before the acquisition time, under subparagraph (v) of the description of B in the definition exempt surplus in subsection 5907(1) in computing an acquired affiliate’s exempt surplus or exempt deficit in respect of the corporation, the amount, if any, equal to the lesser ofthe amount determined by the formula A/BwhereAis the deficit affiliate’s exempt deficit in respect of the corporation immediately before the acquisition time, andBis the percentage that would, if the deficit affiliate were resident in Canada, be the deficit affiliate’s surplus entitlement percentage in respect of the acquired affiliate immediately before the acquisition time, andthe lesser ofthe acquired affiliate’s tax-free surplus balance in respect of the corporation immediately before the adjustment time, andeitherif there is more than one acquired affiliate, the amount designated by the corporation, in its return of income for the taxation year in which the taxation year of the acquired affiliate that includes the acquisition time ends, in respect of the acquired affiliate, orin any other case, the amount determined under clause (A);at the time that is immediately after the acquisition time, under subparagraph (vi.1) of the description of A in the definition exempt surplus in subsection 5907(1) in computing the deficit affiliate’s exempt deficit in respect of the corporation, the total of all amounts each of which is the amount determined in respect of an acquired affiliate by the formulaC × DwhereCis the amount determined under paragraph (a) in respect of the acquired affiliate, andDis the percentage that would, if the deficit affiliate were resident in Canada, be the deficit affiliate’s surplus entitlement percentage immediately before the acquisition time in respect of the acquired affiliate; andat the time that is immediately after the acquisition time, under subparagraph (vi.1) of the description of A in the definition exempt surplus in subsection 5907(1) in computing the exempt surplus or exempt deficit of any other foreign affiliate (referred to in this paragraph and paragraph (7.6)(b) as a “subordinate affiliate”) of the corporation, in respect of the corporation, that has immediately before the acquisition time a direct equity percentage (within the meaning assigned by subsection 95(4) of the Act) in the acquired affiliate and in which, immediately before the acquisition time, the deficit affiliate does not have an equity percentage (within the meaning assigned by subsection 95(4) of the Act), the amount determined by the formulaE × FwhereEis the amount determined under paragraph (a) in respect of the acquired affiliate, andFis the percentage that would, if the subordinate affiliate were resident in Canada, be the subordinate affiliate’s surplus entitlement percentage immediately before the acquisition time in respect of the acquired affiliate if the subordinate affiliate owned no shares of the capital stock of any corporation other than its shares of the capital stock of the acquired affiliate.Subsection (7.4) applies ifthe lesser ofthe deficit affiliate’s exempt deficit in respect of the corporation immediately before the acquisition time, andthe total of all amounts each of which is the amount, if any, that is the product obtained by multiplyingthe tax-free surplus balance immediately before the acquisition time in respect of the corporation of an acquired affiliate, andthe surplus entitlement percentage of the corporation in respect of that acquired affiliate immediately before the acquisition timeexceedsthe total of all amounts each of which is the amount, if any, that is the product obtained by multiplyingthe amount, if any, actually designated under subclause (7.2)(a)(ii)(B)(I) in respect of an acquired affiliate, andthe surplus entitlement percentage of the corporation in respect of that acquired affiliate immediately before the acquisition time.If this subsection applies, the amount designated by the corporation in respect of a particular acquired affiliate is deemed, for the purposes of subclause (7.2)(a)(ii)(B)(I),to be the amount determined by the Minister in respect of the particular acquired affiliate; andnot to be the amount, if any, actually designated under subclause (7.2)(a)(ii)(B)(I).Subsection (7.6) applies ifsubsection (7.2) applies;the deficit affiliate, or any other foreign affiliate of the corporation in which the deficit affiliate has, immediately before the acquisition time, an equity percentage (which percentage has, for the purposes of this subsection, the meaning assigned by subsection 95(4) of the Act and which deficit affiliate or other affiliate is referred to in subsection (7.6) as the “direct holder”), has, immediately before the acquisition time, a direct equity percentage (within the meaning assigned by that subsection 95(4)) in any other foreign affiliate (referred to in paragraph (c) and subsection (7.6) as the “subject affiliate”) of the corporation; andthe subject affiliate is the acquired affiliate or has, immediately before the acquisition time, an equity percentage in the acquired affiliate.Subject to paragraph 5908(11)(c), for the purposes of paragraph 92(1.1)(a) of the Act, if this subsection applies, there shall be added, in computing on and after the adjustment timethe direct holder’s adjusted cost base of a share of the capital stock of the subject affiliate, the amount determined by the formula A × BwhereAis the amount determined under paragraph (7.2)(a) in respect of the acquired affiliate, andBis the percentage that would, if the direct holder were resident in Canada, be the direct holder’s surplus entitlement percentage in respect of the acquired affiliate immediately before the acquisition time if the direct holder owned only the share; andthe subordinate affiliate’s adjusted cost base of a share of the capital stock of the acquired affiliate, the amount determined by the formulaC × DwhereCis the amount determined under paragraph (7.2)(a) in respect of the acquired affiliate, andDis the percentage that would, if the subordinate affiliate were resident in Canada, be the subordinate affiliate’s surplus entitlement percentage in respect of the acquired affiliate immediately before the acquisition time if the subordinate affiliate owned only the share.For the purposes of paragraph 93(3)(c) of the Act, if an amount (referred to in this subsection and subsection 5908(12) as the “adjustment amount”) is required by subsection 92(1.1) of the Act to be added in computing, on or after the adjustment time, the adjusted cost base of a share of the capital stock of a foreign affiliate of a corporation resident in Canada,where paragraph 92(1.1)(a) of the Act applies, the prescribed amount is the adjustment amount; andwhere paragraph 92(1.1)(b) of the Act applies, the prescribed amount is the amount determined under subsection 5908(12).[Repealed, 2013, c. 34, s. 44]For the purposes of this section, the surplus entitlement at any time of a share owned by a corporation resident in Canada of the capital stock of a foreign affiliate of the corporation in respect of a particular foreign affiliate of the corporation is the portion ofthe amount that would have been received on the share if the foreign affiliate had at that time paid dividends the aggregate of which on all shares of its capital stock was equal to the amount that would be its net surplus in respect of the corporation at that time assuming thateach other foreign affiliate of the corporation in which the foreign affiliate had an equity percentage had immediately before that time paid a dividend equal to its net surplus in respect of the corporation immediately before the dividend was paid, andany dividend referred to in subparagraph (i) that would be received by another foreign affiliate was received by such other foreign affiliate immediately before any such dividend that it would have paid,that may reasonably be considered to relate tothe amount that would be the net surplus of the particular affiliate in respect of the corporation at that time assuming thateach other foreign affiliate of the corporation in which the particular affiliate had an equity percentage had immediately before that time paid a dividend equal to its net surplus in respect of the corporation immediately before the dividend was paid, andany dividend referred to in subparagraph (i) that would be received by another foreign affiliate was received by such other foreign affiliate immediately before any such dividend that it would have paid.For the purposes of subsection (10),if a particular foreign affiliate of a corporation has an equity percentage in another foreign affiliate of the corporation that has an equity percentage in the particular affiliate, the amount that would be the net surplus of, or the amount that would be a dividend received by, the particular affiliate is to be determined in a manner that isreasonable in the circumstances, andconsistent with the results that would be obtained if a series of actual dividends had been paid and received by the foreign affiliates of the corporation that are relevant to the determination;if any foreign affiliate of a corporation resident in Canada has issued shares of more than one class of its capital stock, the amount that would be paid as a dividend on the shares of any class is the portion of its net surplus that, in the circumstances, it might reasonably be expected to have paid on all the shares of that class; andif the particular affiliate’s net surplus as determined for the purposes of subsection (10) would, in the absence of this paragraph, be nil the particular affiliate’s net surplus for the purposes of that subsection is deemed to be the greater ofthe amount of the particular affiliate’s retained earnings, if any, determined at the end of its last taxation year ending before the time referred to in that subsection under accounting principles that are relevant to the particular affiliate for that year, andthe amount determined by the formula A × BwhereAis the amount of the particular affiliate’s total assets determined at the end of that year under accounting principles that are relevant to the particular affiliate for that year, andBis 25%.[Repealed, 2013, c. 34, s. 84]For the purposes of the definition surplus entitlement percentage in subsection 95(1) of the Act and of this Part, the surplus entitlement percentage at any time of a corporation resident in Canada in respect of a particular foreign affiliate of the corporation is,the percentage that is the corporation’s equity percentage in the particular affiliate at that time ifthe particular affiliate and each corporation that is relevant to the determination of the corporation’s equity percentage in the particular affiliate have, at that time, only one class of issued shares, andno foreign affiliate (referred to in this subparagraph as the “upper-tier affiliate”) of the corporation that is relevant to the determination of the corporation’s equity percentage in the particular affiliate has, at that time, an equity percentage in a foreign affiliate (including, for greater certainty, the particular affiliate) of the corporation that has an equity percentage in the upper-tier affiliate; andin any other case, the proportion of 100 thatthe aggregate of all amounts, each of which is the surplus entitlement at that time of a share owned by the corporation of the capital stock of a foreign affiliate of the corporation in respect of the particular foreign affiliate of the corporationis ofthe amount determined under paragraph (10)(b) to be the net surplus of the particular affiliate in respect of the corporation at that time.For the purposes of subsections (10), (11) and (13), equity percentage has the meaning that would be assigned by subsection 95(4) of the Act if the reference in paragraph (b) of the definition equity percentage in that subsection to “any corporation” were read as a reference to “any corporation other than a corporation resident in Canada”.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-141, s. 4; SOR/85-176, s. 3; SOR/94-686, s. 79(F); SOR/97-505, s. 7; 2013, c. 34, ss. 44, 84
Carrying on Business in a Country
For the purposes of this Part, where a foreign affiliate of a corporation resident in Canada carries on an active business, it shall be deemed to carry on that businessin a country other than Canada only to the extent that such business is carried on through a permanent establishment situated therein; andin Canada only to the extent that its income therefrom is subject to tax under Part I of the Act.The expression permanent establishment meansfor the purposes of paragraph (1)(a) and the definition earnings in subsection 5907(1) (which paragraph or definition is referred to in this paragraph as a “provision”),if the expression is given a particular meaning in a tax treaty with a country, a permanent establishment within the meaning assigned by that tax treaty with respect to the business carried on in that country by the foreign affiliate referred to in the provision, andin any other case, a fixed place of business of the affiliate, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, or if the affiliate does not have any fixed place of business, the principal place at which the affiliate’s business is conducted; andfor the purposes of subdivision i of Division B of Part I of the Act,if the expression is given a particular meaning in a tax treaty with a country, a permanent establishment within the meaning assigned by that tax treaty if the person or partnership referred to in the relevant portion of that subdivision (which person or partnership is referred to in this paragraph and subsection (3) as the “person”) is a resident of that country for the purpose of that tax treaty, andin any other case, a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, or if the person does not have any fixed place of business, the principal place at which the person’s business is conducted.For the purposes of subparagraphs (2)(a)(ii) and (b)(ii),if the affiliate or the person, as the case may be, carries on business through an employee or agent, established in a particular place, who has general authority to contract for the affiliate or the person or who has a stock of merchandise owned by the affiliate or the person from which the employee or agent regularly fills orders, the affiliate or the person is deemed to have a fixed place of business at that place;if the affiliate or the person, as the case may be, is an insurance corporation, the affiliate or the person is deemed to have a fixed place of business in each country in which the affiliate or the person is registered or licensed to do business;if the affiliate or the person, as the case may be, uses substantial machinery or equipment at a particular place at any time in a taxation year, the affiliate or the person is deemed to have a fixed place of business at that place;the fact that the affiliate or the person, as the case may be, has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise at a particular place does not of itself mean that the affiliate or the person has a fixed place of business at that place; andthe fact that the affiliate or the person, as the case may be, has a subsidiary controlled corporation at a place or a subsidiary controlled corporation engaged in trade or business at a place does not of itself mean that the affiliate or person has a fixed place of business at that place.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F); 2009, c. 2, s. 111; 2013, c. 34, s. 45
Interpretation
For the purposes of this Part,active business has the meaning assigned by subsection 95(1) of the Act; (entreprise exploitée activement)controlled foreign affiliate has the meaning assigned by subsection 95(1) of the Act; (société étrangère affiliée contrôlée)designated person or partnership, in respect of a taxpayer at any time, meansthe taxpayer,a person or partnership that is at that timea person (other than a partnership) that does not, at that time, deal at arm’s length with the taxpayer, ora partnership a member of which is, at that time, a designated person or partnership in respect of the taxpayer under this definition, andif a foreign affiliate of the taxpayer is an original corporation that undergoes a division in respect of which subsection 15(1.5) of the Act applies, a new corporation in respect of the division; (personne ou société de personnes désignée)earnings of a foreign affiliate of a taxpayer resident in Canada for a taxation year of the affiliate from an active business meansin the case of an active business carried on by it in a country,the income or profit from the active business for the year computed in accordance with the income tax law of the country in which the affiliate is resident, in any case where the affiliate is required by that law to compute that income or profit,the income or profit from the active business for the year computed in accordance with the income tax law of the country in which the business is carried on, in any case not described in subparagraph (i) where the affiliate is required by that law to compute that income or profit, andin any other case, the amount that would be the income from the active business for the year under Part I of the Act if the business were carried on in Canada, the affiliate were resident in Canada and the Act were read without reference to subsections 12.7(3), 18(4), 18.2(2), 18.4(4), 80(3) to (12), (15) and (17) and 80.01(5) to (11) and sections 80.02 to 80.04,adjusted in each case in accordance with subsections (2), (2.1), (2.2) and (2.9) and, for the purpose of this Part, to the extent that the earnings of an affiliate from an active business carried on by it cannot be attributed to a permanent establishment in any particular country, they shall be attributed to the permanent establishment in the country in which the affiliate is resident and, if the affiliate is resident in more than one country, to the permanent establishment in the country that may reasonably be regarded as the affiliate’s principal place of residence, andin any other case, the total of all amounts each of which is an amount of income that would be required under paragraph 95(2)(a) or subsection 95(2.44) of the Act to be included in computing the affiliate’s income or loss from an active business for the year if that income were computed taking into account the rules in subsection (2.03); (gains)exempt deficit of a foreign affiliate of a corporation in respect of the corporation at any time means the amount, if any, by whichthe total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vi) of the description of B in the definition exempt surplus in this subsectionexceedsthe total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vii) of the description of A in that definition; (déficit exonéré)exempt earnings, of a particular foreign affiliate of a particular corporation for a taxation year of the particular affiliate, means, subject to subsection (2.02), the total of all amounts each of which isthe amount by which the capital gains of the particular affiliate for the year (other than capital gains included in computing the amount, at any time in the year, of the particular affiliate’s hybrid surplus, or hybrid deficit, in respect of the particular corporation) exceed the total ofthe amount of the taxable capital gains for the year referred to in the description of B in the definition foreign accrual property income in subsection 95(1) of the Act,the amount of the taxable capital gains for the year referred to in subparagraphs (c)(i), (e)(i) and (f)(iv) of the definition net earnings, andthe portion of any income or profits tax paid to the government of a country for the year by the particular affiliate that can reasonably be regarded as tax in respect of the amount by which the capital gains of the particular affiliate for the year exceed the total of the amounts referred to in subparagraphs (i) and (ii),the amount determined by the formulaA – BwhereAis the total of all amounts each of which is a particular amount that would be included, in respect of a particular business of the particular affiliate, by paragraph (c), (c.1) or (c.2) of the definition capital dividend account in subsection 89(1) of the Act in determining the particular affiliate’s capital dividend account at the end of the year ifthe particular affiliate were the corporation referred to in that definition,the references in paragraphs (c.1) and (c.2) of that definition, and in paragraph (c) of that definition as that paragraph (c) read in its application to taxation years that ended before February 28, 2000, to “a business” were read as references to a business thatis not an active business (as defined in subsection 95(1) of the Act), oris an active business (as defined in that subsection 95(1)) the particular affiliate’s earnings from which for the year are determined under subparagraph (a)(iii) of the definition earnings, andthe particular amount did not include any amount that can reasonably be considered to have accrued while no person or partnership that carried on the particular business was a specified person or partnership (within the meaning of section 95 of the Act) in respect of the particular corporation, andBis the amount determined for A at the end of the particular affiliate’s taxation year that immediately precedes the year,where the year is the 1975 or any preceding taxation year of the particular affiliate, the total of all amounts each of which is the particular affiliate’s net earnings for the year,where the year is the 1975 or any preceding taxation year of the particular affiliate, the earnings as determined in paragraph (b) of the definition earnings in this subsection to the extent that those earnings have not been included because of paragraph (b) or deducted in determining an amount included in subparagraph (b)(i) of the definition exempt loss in this subsection,where the year is the 1976 or any subsequent taxation year of the particular affiliate and the particular affiliate is, throughout the year, resident in a designated treaty country,the particular affiliate’s net earnings for the year from an active business carried on by it in Canada or a designated treaty country, orthe particular affiliate’s earnings for the year from an active business to the extent that they derive fromincome that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(i) of the Act and that wouldif earned by the other foreign affiliate referred to in subclause 95(2)(a)(i)(A)(I) or (IV) of the Act, be included in computing the exempt earnings or exempt loss of the other foreign affiliate for a taxation year,if earned by the life insurance corporation referred to in subclause 95(2)(a)(i)(A)(II) of the Act and based on the assumptions contained in subclause 95(2)(a)(i)(B)(II) of the Act, be included in computing the exempt earnings or exempt loss of the life insurance corporation for a taxation year, orif earned from the active business activities carried on by the particular affiliate, or the partnership referred to in subclause 95(2)(a)(i)(A)(III) of the Act, be included in computing the exempt earnings or exempt loss of the particular affiliate for a taxation year,income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under clause 95(2)(a)(ii)(A) of the Act where the income is derived from amounts that are paid or payable by the life insurance corporation referred to in that clause and are for expenditures that would, if that life insurance corporation were a foreign affiliate of the particular corporation, be deductible in computing its exempt earnings or exempt loss for a taxation year,income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under clause 95(2)(a)(ii)(B) of the Act to the extent that the amounts paid or payable referred to in that clause are for expenditures that are deductible in computing the exempt earnings or exempt loss, for a taxation year, of the other foreign affiliate referred to in that clause,income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under clause 95(2)(a)(ii)(C) of the Act to the extent that the amounts paid or payable referred to in that clause are for expenditures that are deductible in computing its exempt earnings or exempt loss for a taxation year,income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under clause 95(2)(a)(ii)(D) of the Act ifthe second and third affiliates referred to in subclause 95(2)(a)(ii)(D)(IV) of the Act are each resident in a designated treaty country throughout their relevant taxation years (within the meaning assigned by that subclause), andthat income would be required to be so included ifparagraph (a) of the definition excluded property in subsection 95(1) of the Act were read as follows:used or held by the foreign affiliate principally for the purpose of gaining or producing income from an active business carried on by it in a designated treaty country (within the meaning assigned by subsection 5907(11) of the Income Tax Regulations),paragraph (c) of that definition excluded property were read as follows:property all or substantially all of the income from which is, or would be, if there were income from the property, income from an active business (which, for this purpose, includes income that would be deemed to be income from an active business by paragraph (2)(a) if that paragraph were read without reference to subparagraph (v)) that is included in computing the foreign affiliate’s exempt earnings, or exempt loss, as defined in subsection 5907(1) of the Income Tax Regulations, for a taxation year,income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(iii) of the Act to the extent that the trade accounts receivable referred to in that subparagraph arose in the course of an active business carried on by the other foreign affiliate referred to in that subparagraph the income or loss from which is included in computing its exempt earnings or exempt loss for a taxation year,income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(iv) of the Act to the extent that the loans or lending assets referred to in that subparagraph arose in the course of an active business carried on by the other foreign affiliate referred to in that subparagraph the income or loss from which is included in computing its exempt earnings or exempt loss for a taxation year,income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(v) of the Act, where all or substantially all of its income, from the property described in that subparagraph, is, or would be if there were income from the property, income from an active business (which, for this purpose, includes income that would be deemed to be income from an active business by paragraph 95(2)(a) of the Act if that paragraph were read without reference to its subparagraph (v) and, for greater certainty, excludes income arising as a result of the disposition of the property) that is included in computing its exempt earnings or exempt loss for a taxation year,income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(vi) of the Act, where the agreement for the purchase, sale or exchange of currency referred to in that subparagraph can reasonably be considered to have been made by the particular affiliate to reduce its risk with respect to an amount of income or loss that is included in computing its exempt earnings or exempt loss for a taxation year, oran amount that is required to be included in computing the particular affiliate’s income from an active business for the year under subsection 95(2.44) of the Act if the amount is in respect of income that would, in the absence of paragraph 95(2)(a.3) of the Act, be income from an active business carried on by the particular affiliate in a designated treaty country, orwhere the year is the 1976 or any subsequent taxation year of the particular affiliate, each amount that is included in the particular affiliate’s exempt earnings for the year because of subsection (10),minus the portion of any income or profits tax paid to the government of a country for the year by the particular affiliate that can reasonably be regarded as tax in respect of the earnings referred to in paragraph (c) or in subparagraph (d)(ii); (gains exonérés)exempt loss, of a foreign affiliate of a corporation for a taxation year of the affiliate, means, subject to subsection (2.02), the total of all amounts each of which isthe amount by which the capital losses of the affiliate for the year (other than capital losses included in computing the amount, at any time in the year, of the particular affiliate’s hybrid surplus, or hybrid deficit, in respect of the particular corporation) exceed the total ofthe amount of the allowable capital losses for the year referred to in the description of E in the definition foreign accrual property income in subsection 95(1) of the Act,the amount of the allowable capital losses for the year referred to in subparagraphs (c)(i), (e)(i) and (f)(iv) of the definition net loss, andthe portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax refunded in respect of the amount by which the capital losses of the affiliate for the year exceed the total of the amounts referred to in subparagraphs (i) and (ii),the total of all amounts each of which is the portion of an eligible capital expenditure of the affiliate, in respect of a business of the affiliate, that was not included at any time in the affiliate’s cumulative eligible capital in respect of the business, ifthe businessis not an active business (as defined in subsection 95(1) of the Act), oris an active business (as defined in subsection 95(1) of the Act) the affiliate’s earnings from which for the year are determined under subparagraph (a)(iii) of the definition earnings, andin computing its income for the year, the affiliate has deducted an amount described in paragraph 24(1)(a) of the Act for the year in respect of the business,where the year is the 1975 or any preceding taxation year of the affiliate, the total of all amounts each of which isthe affiliate’s net loss for the year from an active business carried on by it in a country, orthe amount, if any, for the year by whichthe amount determined under the description of D in the definition foreign accrual property income in subsection 95(1) of the Act for the yearexceedsthe amount determined under the description of A in the definition foreign accrual property income in subsection 95(1) of the Act for the year,where the year is the 1976 or any subsequent taxation year of the affiliate and the affiliate is, throughout the year, resident in a designated treaty country,the affiliate’s net loss for the year from an active business carried on by it in Canada or a designated treaty country, orthe amount by whichthe affiliate’s loss for the year from an active business to the extent determined under subparagraph (d)(ii) of the definition exempt earnings in respect of the year with any modifications that the circumstances requireexceedsthe portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax that was refunded in respect of the amount determined under clause (A), orwhere the year is the 1976 or any subsequent taxation year of the affiliate, each amount that is included in the affiliate’s exempt loss for the year because of subsection (10); (perte exonérée)exempt surplus, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the latest of the following times and that ends with the particular time:the first day of the taxation year of the subject affiliate in which it last became a foreign affiliate of the corporation,the last time for which the opening exempt surplus of the subject affiliate in respect of the corporation was required to be determined under section 5905, andthe last time for which the opening exempt deficit of the subject affiliate in respect of the corporation was required to be determined under section 5905A – BwhereAis the total of all amounts, in respect of the period, each of which isthe opening exempt surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b),the exempt earnings of the subject affiliate for any of its taxation years ending in the period,the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed by subsection 5905(7) to have been received by the subject affiliate) thatwas prescribed by paragraph 5900(1)(a) to have been paid out of the payer affiliate’s exempt surplus in respect of the corporation,does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, andwould not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada,the portion of any income or profits tax refunded by or the amount of a tax credit paid by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded or paid in respect of any amount referred to in subparagraph (iii) and that was not deducted in determining any amount referred to in subparagraph (iii) of the description of B,the portion of any taxable dividend received in the period and before the particular time by the subject affiliate that would, if the dividend were received by the corporation, be deductible by it under section 112 of the Act,an amount added to the exempt surplus of the subject affiliate or deducted from its exempt deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2),each amount that is required, under section 5905, to be included under this subparagraph in the period and before the particular time, oran amount added, in the period and before the particular time, to the exempt surplus of the subject affiliate under paragraph (7.1)(d) (as that paragraph applied to dividends paid on or before August 19, 2011), andBis the total of those of the following amounts that apply in respect of the period:the opening exempt deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c),the exempt loss of the subject affiliate for any of its taxation years ending in the period,the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of any amount referred to in subparagraph (iii), (iv) or (v) of the description of A,the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed by paragraph 5901(1)(a) to have been paid out of the subject affiliate’s exempt surplus in respect of the corporation,each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(d)(xii) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, oran amount, in the period and before the particular time, deducted from the exempt surplus of the subject affiliate or added to its exempt deficit under subsection (1.092), (1.1) or (1.2); (surplus exonéré)hybrid deficit, of a foreign affiliate of a corporation in respect of the corporation at any time, means the amount, if any, by whichthe total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vii) of the description of B in the definition hybrid surplusexceedsthe total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (v) of the description of A in that definition; (déficit hybride)hybrid surplus, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the latest of the following times and that ends with the particular time:the first day of the taxation year of the subject affiliate in which it last became a foreign affiliate of the corporation,the last time for which the opening hybrid surplus of the subject affiliate in respect of the corporation was required to be determined under section 5905, andthe last time for which the opening hybrid deficit of the subject affiliate in respect of the corporation was required to be determined under section 5905A – BwhereAis the total of all amounts, in respect of the period, each of which isthe opening hybrid surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b),the amount of a capital gain (except to the extent that the taxable portion of the capital gain is included under the description of B in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the subject affiliate), for a taxation year, of the subject affiliate, or of a partnership of which the subject affiliate is a member (to the extent that the capital gain is reasonably attributable to the subject affiliate), in respect of a disposition, at any time in the period, ofa share of the capital stock of another foreign affiliate of the corporation,a partnership interest, ora property, that is an excluded property of the subject affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related toan amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, oran amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under this subparagraph or subparagraph (ii) of the description of B, as the case may be,the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of an amount referred to in subparagraph (ii) or (iii) of the description of B,the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) thatwas prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation,does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, andwould not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada, oran amount added to the hybrid surplus of the subject affiliate or deducted from its hybrid deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2), andBis the total of those of the following amounts that apply in respect of the period:the opening hybrid deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c),the amount of a capital loss (except to the extent that the allowable portion of the capital loss is included under paragraph (a) of the description of E in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the subject affiliate), for a taxation year, of the subject affiliate, or of a partnership of which the subject affiliate is a member (to the extent that the capital loss is reasonably attributable to the subject affiliate), in respect of a disposition, at any time in the period, ofa share of the capital stock of another foreign affiliate of the corporation,a partnership interest, ora property, that is an excluded property of the subject affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related toan amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, oran amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under subparagraph (ii) of the description of A or this subparagraph, as the case may be,the amount of a capital loss for a taxation year of the subject affiliate that would arise in respect of a disposition, at any time in the period, of a share of the capital stock of another foreign affiliate of the corporation in the course of the liquidation and dissolution of that other affiliate if subclause 95(2)(e)(iv)(A)(II) of the Act were read without reference to its sub-subclause 1 and section 93 of the Act were read without reference to its subsection (4),the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of an amount referred to in subparagraph (ii) or (iv) of the description of A,the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(a.1) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(b) to have been paid out of the subject affiliate’s hybrid surplus in respect of the corporation,each amount that is required under section 5902 to be included under this subparagraph in the period and before the particular time, oran amount deducted from the hybrid surplus of the subject affiliate or added to its hybrid deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (surplus hybride)hybrid underlying tax, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the later of the following times and that ends with the particular time:the first day of the taxation year of the subject affiliate in which it last became a foreign affiliate of the corporation, andthe last time for which the opening hybrid underlying tax of the subject affiliate in respect of the corporation was required to be determined under section 5905A – BwhereAis the total of all amounts, in respect of the period, each of which isthe opening hybrid underlying tax, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b),the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of any amount referred to in subparagraph (ii) or (iv) of the description of A in the definition hybrid surplus,each amount that was prescribed by paragraph 5900(1)(c.1) to have been the foreign tax applicable to the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed by paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation, orthe amount by which the subject affiliate’s hybrid underlying tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1) or (1.2),Bis the total of those of the following amounts that apply in respect of the period:the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of an amount referred to in subparagraph (ii) or (iii) of the description of B in the definition hybrid surplus,the hybrid underlying tax applicable to any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(a.1) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(b) to have been paid out of the subject affiliate’s hybrid surplus in respect of the corporation before that time,each amount that is required under section 5902 to be included under this subparagraph in the period and before the particular time, orthe amount by which the subject affiliate’s hybrid underlying tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (montant intrinsèque d’impôt hybride)hybrid underlying tax applicable, in respect of a corporation to a whole dividend paid at any time on the shares of any class of the capital stock of a foreign affiliate of the corporation by the affiliate, means the proportion of the hybrid underlying tax of the affiliate at that time in respect of the corporation thatthe portion of the whole dividend deemed to have been paid out of the affiliate’s hybrid surplus in respect of the corporationis ofthe affiliate’s hybrid surplus at that time in respect of the corporation; (montant intrinsèque d’impôt hybride applicable)loss, of a foreign affiliate of a taxpayer resident in Canada for a taxation year of the affiliate from an active business, meansin the case of an active business carried on by it in a country, the amount of its loss for the year from the active business carried on in the country computed by applying the provisions of paragraph (a) of the definition earnings respecting the computation of earnings from that active business carried on in that country, with any modifications that the circumstances require, andin any other case, the total of all amounts each of which is an amount of a loss that would be required under paragraph 95(2)(a) of the Act to be included in computing the affiliate’s income or loss from an active business for the year if that loss were computed taking into account the rules in subsection (2.03); (perte)net earnings of a foreign affiliate of a corporation for a taxation year of the affiliatefrom an active business carried on by it in a country is the amount of its earnings for the year from that active business carried on in that country minus the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax in respect of those earnings,in respect of foreign accrual property income is the amount that would be its foreign accrual property income for the year, if the formula in the definition foreign accrual property income in subsection 95(1) of the Act were read without reference to F and F.1 in that formula and the amount determined for E in that formula were the amount determined under paragraph (a) of the description of E in that formula and the Act were read without regard to its clause 95(2)(f.11)(ii)(D), minus the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax in respect of that income,from dispositions of property used or held by it principally for the purpose of gaining or producing income from an active business carried on by it in a country that is not a designated treaty country (other than Canada) is the amount, if any, by whichthe portion of the affiliate’s taxable capital gains for the year from those dispositions that can reasonably be considered to have accrued after November 12, 1981exceedsthe portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax in respect of the amount determined under subparagraph (i),[Repealed, 2013, c. 34, s. 85]from the disposition of a property that is an excluded property of the affiliate that is described in paragraph (c) of the definition excluded property in subsection 95(1) of the Act but that would not be an excluded property of the affiliate if that paragraph were read in the manner described in sub-subclause (d)(ii)(E)(II)2 of the definition exempt earnings is the amount, if any, by whichthe portion of the affiliate’s taxable capital gain for the year from the disposition of the property that accrued after its 1975 taxation yearexceedsthe portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax that was paid in respect of the amount determined under subparagraph (i), andfrom a particular disposition of a property, that is an excluded property of the affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related toan amount that was receivable under an agreement that relates to the sale of a particular property the taxable capital gain or allowable capital loss from the sale of which is included under any of paragraphs (c) to (e) of this definition or of the definition net loss, as the case may be,an amount that was receivable and was a property that was described in paragraph (c) of that definition excluded property but that would not have been an excluded property of the affiliate if that paragraph were read in the manner described in sub-subclause (d)(ii)(E)(II)2 of the definition exempt earnings, oran amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate any taxable capital gain or allowable capital loss from the disposition of which would, if that excluded property were disposed of, be included under any of paragraphs (c) to (e) of this definition or of the definition net loss, as the case may be,is the amount, if any, by whichthe portion of the affiliate’s taxable capital gain for the year from the particular disposition that accrued after its 1975 taxation yearexceedsthe portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax that was paid for the year in respect of the amount determined under subparagraph (iv); (gains nets)net loss of a foreign affiliate of a corporation for a taxation year of the affiliatefrom an active business carried on by it in a country is the amount of its loss for the year from that active business carried on in that country minus the portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax refunded in respect of that loss,in respect of foreign accrual property income is the amount, if any, by whichthe amount, if any, by whichthe total ofthe amount that would be determined for D in the formula in the definition foreign accrual property income in subsection 95(1) of the Act for the year, if the Act were read without regard to its clauses 95(2)(f.11)(ii)(D) and (E),the amount determined under paragraph (a) of the description of E in that formula for the year,the amount determined for G in that formula for the year, andthe amount determined for H in that formula for the yearexceedsthe total of the amounts determined under the descriptions of A, A.1, A.2, B and C in the definition foreign accrual property income in subsection 95(1) of the Act for the yearexceedsthe portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax refunded in respect of the amount determined under subparagraph (i),from dispositions of property used or held by it principally for the purpose of gaining or producing income from an active business carried on by it in a country that is not a designated treaty country (other than Canada) is the amount, if any, by whichthe portion of the affiliate’s allowable capital losses for the year from those dispositions that can reasonably be considered to have accrued after November 12, 1981exceedsthe portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax refunded in respect of the amount determined under subparagraph (i),[Repealed, 2013, c. 34, s. 85]from the disposition of a property, that is an excluded property of the affiliate that is described in paragraph (c) of the definition excluded property in subsection 95(1) of the Act but that would not be an excluded property of the affiliate if that paragraph were read in the manner described in sub-subclause (d)(ii)(E)(II)2 of the definition exempt earnings is the amount, if any, by whichthe portion of the affiliate’s allowable capital loss for the year from the disposition of the property that accrued after its 1975 taxation yearexceedsthe portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax that was refunded in respect of the amount determined under subparagraph (i), andfrom a particular disposition of a property, that is an excluded property of the affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related toan amount that was receivable under an agreement that relates to the sale of a particular property the taxable capital gain or allowable capital loss from the sale of which is included under any of paragraphs (c) to (e) of this definition or of the definition net earnings, as the case may be,an amount that was receivable and was a property that was described in paragraph (c) of that definition excluded property but that would not have been an excluded property of the affiliate if that paragraph were read in the manner described in sub-subclause (d)(ii)(E)(II)2 of the definition exempt earnings, oran amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate any taxable capital gain or allowable capital loss from the disposition of which would, if that excluded property were disposed of, be included under any of paragraphs (c) to (e) of this definition or of the definition net earnings, as the case may be,is the amount, if any, by whichthe portion of the affiliate’s allowable capital loss for the year from the particular disposition that accrued after its 1975 taxation yearexceedsthe portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax that was refunded in respect of the amount determined under subparagraph (iv); (perte nette)net surplus of a foreign affiliate of a corporation resident in Canada in respect of the corporation is, at any particular time,if the affiliate has no exempt deficit, no hybrid deficit and no taxable deficit, the amount that is the total of its exempt surplus, hybrid surplus and taxable surplus in respect of the corporation,if the affiliate has no exempt deficit but has a hybrid deficit and a taxable deficit, the amount, if any, by which its exempt surplus exceeds the total of its hybrid deficit and taxable deficit in respect of the corporation,if the affiliate has no exempt deficit and no hybrid deficit but has a taxable deficit, the amount, if any, by which the total of its exempt surplus and hybrid surplus exceeds its taxable deficit in respect of the corporation,if the affiliate has no exempt deficit and no taxable deficit but has a hybrid deficit, the amount, if any, by which the total of its exempt surplus and taxable surplus exceeds its hybrid deficit in respect of the corporation,if the affiliate has an exempt deficit but no hybrid deficit or taxable deficit, the amount, if any, by which the total of its hybrid surplus and taxable surplus exceeds its exempt deficit in respect of the corporation,if the affiliate has an exempt deficit and a hybrid deficit but no taxable deficit, the amount, if any, by which its taxable surplus exceeds the total of its exempt deficit and hybrid deficit in respect of the corporation, orif the affiliate has an exempt deficit and a taxable deficit but no hybrid deficit, the amount, if any, by which its hybrid surplus exceeds the total of its exempt deficit and taxable deficit in respect of the corporation,as the case may be, at that time; (surplus net)taxable deficit of a foreign affiliate of a corporation in respect of the corporation at any time is the amount, if any, by whichthe total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vi) of the description of B in the definition taxable surplus in this subsectionexceedsthe total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (v) of the description of A in that definition; (déficit imposable)taxable earnings of a foreign affiliate of a corporation for a taxation year of the affiliate iswhere the year is the 1975 or any preceding taxation year of the affiliate, nil, andin any other case, the total of all amounts each of which isthe affiliate’s net earnings for the year from an active business carried on by it in a country,the affiliate’s net earnings for the year in respect of its foreign accrual property income,the affiliate’s earnings for the year as determined under paragraph (b) of the definition earnings minus the portion of any income or profits tax paid to the government of a country for a year by the affiliate that can reasonably be regarded as tax in respect of those earnings,to the extent not included under subparagraph (ii), the affiliate’s net earnings for the year determined under paragraphs (c) to (f) of the definition net earnings, orthe amount, if any, by whichthe total of all amounts each of which is an amount required by paragraph (2.02)(a) to be included under this definition for the yearexceedsthe total of all amounts each of which is an amount required by paragraph (2.02)(b) to be deducted under this definition for the year,[Repealed, 2013, c. 34, s. 46]but does not include any amount included in the affiliate’s exempt earnings for the year; (gains imposables)taxable loss of a foreign affiliate of a corporation for a taxation year of the affiliate iswhere the year is the 1975 or any preceding taxation year of the affiliate, nil, andin any other case, the total of all amounts each of which isthe affiliate’s net loss for the year from an active business carried on by it in a country,the affiliate’s net loss for the year in respect of foreign accrual property income,the affiliate’s loss for the year as determined under paragraph (b) of the definition loss minus the portion of any income or profits tax refunded by the government of a country for a year to the affiliate that can reasonably be regarded as tax refunded in respect of that loss, orto the extent not included under subparagraph (ii), the affiliate’s net loss for the year determined under paragraphs (c) to (f) of the definition net loss,but does not include any amount included in the affiliate’s exempt loss for the year; (perte imposable)taxable surplus, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the latest of the following times and that ends with the particular time:the first day of the taxation year of the subject affiliate in which it last became a foreign affiliate of the corporation,the last time for which the opening taxable surplus of the subject affiliate in respect of the corporation was required to be determined under section 5905, andthe last time for which the opening taxable deficit of the subject affiliate in respect of the corporation was required to be determined under section 5905A – BwhereAis the total of all amounts, in respect of the period, each of which isthe opening taxable surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b),the taxable earnings of the subject affiliate for any of its taxation years ending in the period,the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed by subsection 5905(7) to have been received by the subject affiliate) thatwas prescribed by paragraph 5900(1)(b) to have been paid out of the payer affiliate’s taxable surplus in respect of the corporation,does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, andwould not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada,an amount added to the taxable surplus of the subject affiliate or deducted from its taxable deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2),each amount that is required under section 5905 to be included under this subparagraph in the period and before the particular time, oran amount added, in the period and before the particular time, to the subject affiliate’s taxable surplus under paragraph (7.1)(e) (as that paragraph applied to dividends paid on or before August 19, 2011), andBis the total of those of the following amounts that apply in respect of the period:the opening taxable deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c),the taxable loss of the subject affiliate for any of its taxation years ending in the period,the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of that portion of a dividend referred to in subparagraph (iii) of the description of A,the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(b) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(a.1) to have been paid out of the subject affiliate’s taxable surplus in respect of the corporation,each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(k)(xi) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, oran amount, in the period and before the particular time, deducted from the taxable surplus of the subject affiliate or added to its taxable deficit under subsection (1.092), (1.1) or (1.2); (surplus imposable)underlying foreign tax, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the later of the following times and that ends with the particular time:the first day of the taxation year of the subject affiliate in which it last became a foreign affiliate of the corporation, andthe last time for which the opening underlying foreign tax of the subject affiliate in respect of the corporation was required to be determined under section 5905[Repealed, 2013, c. 34, s. 46]A – BwhereAis, subject to subsection (1.03), the total of all amounts, in respect of the period, each of which isthe opening underlying foreign tax, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b),the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of the taxable earnings, including for greater certainty any amounts included because of paragraph (2.02)(a) in computing the taxable earnings, of the affiliate for a taxation year ending in the period,the portion of any income or profits tax referred to in subparagraph (iii) of the description of B in the definition taxable surplus in this subsection paid by the subject affiliate in respect of a dividend received from any other foreign affiliate of the corporation,each amount that was prescribed by paragraph 5900(1)(d) to have been the foreign tax applicable to the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed by subsection 5905(7) to have been received by the subject affiliate) that was prescribed by paragraph 5900(1)(b) to have been paid out of the payer affiliate’s taxable surplus in respect of the corporation, orthe amount by which the subject affiliate’s underlying foreign tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1) or (1.2),Bis the total of those of the following amounts that apply in respect of the period:the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of the taxable loss of the subject affiliate for a taxation year ending in the period,the underlying foreign tax applicable to any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(b) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(a.1) to have been paid out of the subject affiliate’s taxable surplus in respect of the corporation before that time,each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(l)(x) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, orthe amount by which the subject affiliate’s underlying foreign tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (montant intrinsèque d’impôt étranger)underlying foreign tax applicable in respect of a corporation to a whole dividend paid at any time on the shares of any class of the capital stock of a foreign affiliate of the corporation by the affiliate is the total ofthe proportion of the underlying foreign tax of the affiliate at that time in respect of the corporation thatthe portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporationis ofthe affiliate’s taxable surplus at that time in respect of the corporation, andany additional amount in respect of the whole dividend that the corporation claims in its return of income under Part I of the Act in respect of the whole dividend, not exceeding the amount that is the lesser ofthe amount by which the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation exceeds the amount determined under paragraph (a), andthe amount by which the affiliate’s underlying foreign tax in respect of the corporation immediately before the whole dividend was paid exceeds the amount determined under paragraph (a); (montant intrinsèque d’impôt étranger applicable)whole dividend paid at any time on the shares of a class of the capital stock of a foreign affiliate of a taxpayer resident in Canada is the total of all amounts each of which is the dividend paid at that time on a share of that class except thatwhere a dividend is paid at the same time on shares of more than one class of the capital stock of an affiliate, for the purpose only of section 5900, the whole dividend referred to in section 5901 paid at that time on the shares of a class of the capital stock of the affiliate is deemed to be the total of all amounts each of which is the dividend paid at that time on a share of the capital stock of the affiliate,where a whole dividend is deemed by subparagraph 5902(1)(a)(ii) to have been paid at the same time on shares of more than one class of an affiliate’s capital stock, for the purpose only of that subparagraph, the whole dividend deemed to have been paid at that time on the shares of a class of the affiliate’s capital stock is deemed to be the total of all amounts each of which is a whole dividend deemed to have been paid at that time on the shares of a class of the affiliate’s capital stock, andwhere more than one whole dividend is deemed by paragraph 5900(2)(b) to have been paid at the same time on shares of a class of the capital stock of an affiliate, for the purposes only of paragraph 5900(1)(d) and the definitions underlying foreign tax and underlying foreign tax applicable in this subsection, the whole dividend deemed to have been paid at that time on the shares of a class of the capital stock of the affiliate is deemed to be the total of all amounts each of which is a whole dividend deemed to have been paid at that time on the shares of a class of the capital stock of the affiliate and all of that whole dividend shall be deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation. (dividende global)For the purposes of section 113 of the Act, exempt surplus, hybrid surplus and taxable surplus have the meanings assigned by subsection (1).For the purposes of paragraph (d) of the definition exempt earnings and paragraph (c) of the definition exempt loss in subsection (1), if a foreign affiliate of a corporation becomes a foreign affiliate of the corporation in a taxation year of the affiliate, otherwise than as a result of a transaction between persons that do not deal with each other at arm’s length, and the affiliate is resident in a designated treaty country at the end of the year, the affiliate is deemed to be so resident throughout the year.For the purposes of the description of A in the definition underlying foreign tax in subsection (1), income or profits tax paid in respect of the taxable earnings of a particular foreign affiliate of a particular corporation or in respect of a dividend received by the particular affiliate from another foreign affiliate of the particular corporation, and amounts by which the underlying foreign tax of the particular affiliate or any other foreign affiliate of the particular corporation is required under any of subsections (1.092), (1.1) and (1.2) to be increased, is not to include any income or profits tax paid, or amounts by which the underlying foreign tax would otherwise be so required to be increased, as the case may be, in respect of the foreign accrual property income of the particular affiliate for a taxation year of the particular affiliate if, at any time in the year, a specified owner in respect of the particular corporation is considered,under the income tax laws (referred to in subsection (1.07) as the “relevant foreign tax law”) of any country other than Canada under the laws of which any income of another corporation — that is, at any time in the year, a pertinent person or partnership in respect of the particular affiliate — is subject to income taxation, to own less than all of the shares of the capital stock of the other corporation that are considered to be owned by the specified owner for the purposes of the Act; orunder the income tax laws (referred to in subsection (1.08) as the “relevant foreign tax law”) of any country other than Canada under the laws of which any income of a particular partnership — that is, at any time in the year, a pertinent person or partnership in respect of the particular affiliate — is subject to income taxation, to have a lesser direct or indirect share of the income of the particular partnership than the specified owner is considered to have for the purposes of the Act.For the purposes of subsections (1.03) and (1.07), a specified owner, at any time, in respect of a corporation means the corporation or a person or partnership that is, at that time,a partnership of which the corporation is a member;a foreign affiliate of the corporation;a partnership a member of which is a foreign affiliate of the corporation; ora person or partnership referred to in any of subparagraphs (1.06)(a)(i) to (iii).For the purposes of this subsection and subsection (1.03), a pertinent person or partnership, at any time, in respect of a particular foreign affiliate of a corporation means the particular affiliate or a person or partnership that is, at that time,another foreign affiliate of the corporationin which the particular affiliate has an equity percentage, orthat has an equity percentage in the particular affiliate;a partnership a member of which is at that time a pertinent person or partnership in respect of the particular affiliate under this subsection; ora person or partnership referred to in any of subparagraphs (1.06)(b)(i) to (iii).For the purposes of subsections (1.04) and (1.05), if, as part of a series of transactions or events that includes the earning of the foreign accrual property income referred to in subsection (1.03), a foreign affiliate (referred to in this subsection as the “funding affiliate”) of the corporation or of a person (referred to in this subsection as the “related person”) resident in Canada that is related to the corporation, or a partnership (referred to in this subsection as the “funding partnership”) of which such an affiliate is a member, directly or indirectly provided funding to the particular affiliate, or a partnership of which the particular affiliate is a member, otherwise than by way of loans or other indebtedness that are subject to terms or conditions made or imposed, in respect of the loans or other indebtedness, that do not differ from those that would be made or imposed between persons dealing at arm’s length or by way of an acquisition of shares of the capital stock of any corporation, thenif the funding affiliate is, or the funding partnership has a member that is, a foreign affiliate of the related person, the following persons and partnerships are deemed, at all times during which the foreign accrual property income is earned by the particular affiliate, to be specified owners in respect of the corporation:the related person,each foreign affiliate of the related person, andeach partnership a member of which is referred to in subparagraph (i) or (ii); andthe following persons and partnerships are deemed, at all times during which the foreign accrual property income is earned by the particular affiliate, to be pertinent persons or partnerships in respect of the particular affiliate:the funding affiliate or the funding partnership,a non-resident corporationin which the funding affiliate has an equity percentage, orthat has an equity percentage in the funding affiliate, anda partnership a member of which is a person or partnership referred to in subparagraph (i) or (ii).For the purposes of paragraph (1.03)(a), a specified owner in respect of the particular corporation is not to be considered, under the relevant foreign tax law, to own less than all of the shares of the capital stock of another corporation that are considered to be owned for the purposes of the Act solely because the specified owner or the other corporation is not treated as a corporation under the relevant foreign tax law.For the purposes of paragraph (1.03)(b), a member of a partnership is not to be considered to have a lesser direct or indirect share of the income of the partnership under the relevant foreign tax law than for the purposes of the Act solely because of one or more of the following:a difference between the relevant foreign tax law and the Act in the manner ofcomputing the income of the partnership, orallocating the income of the partnership because of the admission to, or withdrawal from, the partnership of any of its members;the treatment of the partnership as a corporation under the relevant foreign tax law; orthe fact that the member is not treated as a corporation under the relevant foreign tax law.For the purposes of subsection (1.03), if a specified owner owns, for the purposes of the Act, shares of the capital stock of a corporation and the dividends, or similar amounts, in respect of those shares are treated under the income tax laws of any country other than Canada under the laws of which any income of the corporation is subject to income taxation as interest or another form of deductible payment, the specified owner is deemed to be considered, under those tax laws, to own less than all of the shares of the capital stock of the corporation that are considered to be owned by the specified owner for the purposes of the Act.Subsection (1.092) applies in respect of income or profits tax paid by, or refunded to, a foreign affiliate (in this subsection and subsection (1.092) referred to as the “shareholder affiliate”) of a taxpayer for a taxation year of the shareholder affiliate in respect of its income or profits, or loss, as the case may be, and the income or profits, or loss, as the case may be, of another foreign affiliate (in this subsection and subsection (1.092) referred to as the “transparent affiliate”) of the taxpayer ifthe shareholder affiliate has an equity percentage in the transparent affiliate;the income or profits tax is paid to, or refunded by, a government of a country other than Canada; andunder the income tax laws of the country referred to in paragraph (b), the shareholder affiliate, and not the transparent affiliate, is liable for that tax payable to, or entitled to that refund from, a government of that country for that year (otherwise than solely because the shareholder affiliate is part of a group of corporations that determines its liabilities for income or profits tax payable to the government of that country on a consolidated or combined basis).If this subsection applies in respect of income or profits tax paid by, or refunded to, a shareholder affiliate for a taxation yearin respect of the shareholder affiliate,any such income or profits tax paid by the shareholder affiliate for the year is deemed not to have been paid and any such refund to the shareholder affiliate of income or profits tax otherwise payable by it for the year is deemed not to have been made,any such income or profits tax that would have been payable by the shareholder affiliate for the year if the shareholder affiliate had no other taxation year and had not been liable for income or profits tax in respect of income or profits of the transparent affiliate is deemed to have been paid for the year,to the extent thatany such income or profits tax that would otherwise have been payable by the shareholder affiliate for the year on behalf of the shareholder affiliate and the transparent affiliate is reduced because of any loss of the shareholder affiliate for the year or any previous taxation year, the amount of such reduction is deemed to have been received by the shareholder affiliate as a refund for the year of the loss of income or profits tax in respect of the loss, andthe shareholder affiliate receives, in respect of a loss of the shareholder affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the shareholder affiliate on behalf of the shareholder affiliate and the transparent affiliate, the amount of such refund is deemed to have been received by the shareholder affiliate as a refund for the year of the loss of income or profits tax in respect of the loss,any such income or profits tax that would have been payable by the transparent affiliate for the year if the transparent affiliate had no other taxation year, had no income or profits other than those that are included in computing the income or profits of the shareholder affiliate under the income tax laws referred to in paragraph (1.091)(c) and had been liable, and no other person had been liable, for income or profits tax in respect of income or profits of the transparent affiliate is, at the end of the year,to the extent that such income or profits tax would otherwise have reduced the net earnings included in the exempt earnings of the transparent affiliate, to be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the shareholder affiliate,to the extent that such income or profits tax would otherwise have reduced the hybrid surplus or increased the hybrid deficit of the transparent affiliate,to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the shareholder affiliate, andto be added to the hybrid underlying tax of the shareholder affiliate, andto the extent that such income or profits tax would otherwise have reduced the net earnings included in the taxable earnings of the transparent affiliate,to be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the shareholder affiliate, andto be added to the underlying foreign tax of the shareholder affiliate, andto the extent that the income or profits tax that would otherwise have been payable by the shareholder affiliate for the year on behalf of the shareholder affiliate and the transparent affiliate is reduced because of a loss of the transparent affiliate for the year or a previous taxation year, or to the extent that the shareholder affiliate receives, in respect of a loss of the transparent affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the shareholder affiliate on behalf of the shareholder affiliate and the transparent affiliate, the amount of such reduction or refund, as the case may be, is, at the end of the year of the loss,to the extent that such loss reduces the exempt surplus or increases the exempt deficit of the transparent affiliate, to be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the shareholder affiliate,to the extent that such loss reduces the hybrid surplus or increases the hybrid deficit of the transparent affiliate,to be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the shareholder affiliate, andto be deducted from the hybrid underlying tax of the shareholder affiliate, andto the extent that such loss reduces the taxable surplus or increases the taxable deficit of the transparent affiliate,to be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the shareholder affiliate, andto be deducted from the underlying foreign tax of the shareholder affiliate;where, because of the shareholder affiliate being responsible for paying, or claiming a refund of, income or profits tax for the year on behalf of the shareholder affiliate and the transparent affiliate,an amount is paid to the shareholder affiliate by the transparent affiliate in respect of the income or profits tax that would have been payable by the transparent affiliate for the year had it been liable, and no other person had been liable, for income or profits tax in respect of income or profits of the transparent affiliate,in respect of the transparent affiliate, the amount so paid is deemed to be a payment of such income or profits tax for the year, andin respect of the shareholder affiliate,such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the exempt surplus or deducted from the exempt deficit of the transparent affiliate is, at the end of the year, to be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the shareholder affiliate,such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the hybrid surplus or deducted from the hybrid deficit of the transparent affiliate is, at the end of the year, to be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the shareholder affiliate and deducted from the hybrid underlying tax of the shareholder affiliate, andsuch portion of the amount so paid as may reasonably be regarded as relating to an amount included in the taxable surplus or deducted from the taxable deficit of the transparent affiliate is, at the end of the year, to be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the shareholder affiliate and be deducted from the underlying foreign tax of the shareholder affiliate, oran amount is paid by the shareholder affiliate to the transparent affiliate in respect of a reduction or refund, because of a loss or a tax credit of the transparent affiliate for a taxation year, of the income or profits tax that would otherwise have been payable by the shareholder affiliate for the year on behalf of the shareholder affiliate and the transparent affiliate,in respect of the shareholder affiliate,the portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the exempt surplus or included in the exempt deficit of the transparent affiliate is, at the end of the year to which the loss or the tax credit relates, to be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the shareholder affiliate,the portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the hybrid surplus or included in the hybrid deficit of the transparent affiliate is, at the end of the year of the loss, to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the shareholder affiliate and added to the hybrid underlying tax of the shareholder affiliate, andthe portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the taxable surplus or included in the taxable deficit of the transparent affiliate is, at the end of the year to which the loss or the tax credit relates, to be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the shareholder affiliate and be added to the underlying foreign tax of the shareholder affiliate, andin respect of the transparent affiliate, the amount is deemed to be a refund to the transparent affiliate, for the year to which the loss or the tax credit relates, of income or profits tax in respect of the loss or the tax credit; andfor the purposes of paragraph (b), any amount paid by a particular transparent affiliate in respect of the shareholder affiliate to another transparent affiliate in respect of the shareholder affiliate in respect of any income or profits tax that would have been payable by the particular transparent affiliate for the year had it been liable, and no other person had been liable, for income or profits tax in respect of income or profits of the transparent affiliate is deemed to have been paid in respect of such tax by the particular transparent affiliate to the shareholder affiliate and to have been paid in respect of such tax by the shareholder affiliate to the other transparent affiliate.For the purposes of this Part, if, under, the income tax laws of a country other than Canada, a group (in this subsection referred to as the “consolidated group”) of two or more foreign affiliates of a corporation resident in Canada determine their liabilities for income or profits tax payable to the government of that country for a taxation year on a consolidated or combined basis and one of the affiliates (in this subsection referred to as the “primary affiliate”) is responsible for paying, or claiming a refund of, such tax on behalf of itself and the other affiliates (in this subsection referred to as the “secondary affiliates”) that are members of the consolidated group, the following rules apply:in respect of the primary affiliate,any such income or profits tax paid by the primary affiliate for the year shall be deemed not to have been paid and any refund to the primary affiliate of income or profits tax otherwise payable by it for the year shall be deemed not to have been made,any such income or profits tax that would have been payable by the primary affiliate for the year if the primary affiliate had no other taxation year and had not been a member of the consolidated group shall be deemed to have been paid for the year,to the extent thatthe income or profits tax that would otherwise have been payable by the primary affiliate for the year on behalf of the consolidated group is reduced by virtue of any loss of the primary affiliate for the year or any previous taxation year, orthe primary affiliate receives, in respect of a loss of the primary affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the primary affiliate on behalf of the consolidated group,the amount of such reduction or refund, as the case may be, shall be deemed to have been received by the primary affiliate as a refund for the year of the loss of income or profits tax in respect of the loss,any such income or profits tax that would have been payable by a secondary affiliate for the year if the secondary affiliate had no other taxation year and had not been a member of the consolidated group shall at the end of the year,to the extent that such income or profits tax would otherwise have reduced the net earnings included in the exempt earnings of the secondary affiliate, be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the primary affiliate,to the extent that such income or profits tax would otherwise have reduced the hybrid surplus or increased the hybrid deficit of the secondary affiliate,be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the primary affiliate, andbe added to the hybrid underlying tax of the primary affiliate, andto the extent that such income or profits tax would otherwise have reduced the net earnings included in the taxable earnings of the secondary affiliate,be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the primary affiliate, andbe added to the underlying foreign tax of the primary affiliate,to the extent thatthe income or profits tax that would otherwise have been payable by the primary affiliate for the year on behalf of the consolidated group is reduced by virtue of a loss of a secondary affiliate for the year or a previous taxation year, orthe primary affiliate receives, in respect of a loss of a secondary affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the primary affiliate on behalf of the consolidated group,the amount of such reduction or refund, as the case may be, shall at the end of the year of the loss,where such loss reduces the exempt surplus or increases the exempt deficit, as the case may be, of the secondary affiliate, be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the primary affiliate,where such loss reduces the hybrid surplus or increases the hybrid deficit, as the case may be, of the secondary affiliate,be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the primary affiliate, andbe deducted from the hybrid underlying tax of the primary affiliate, andwhere such loss reduces the taxable surplus or increases the taxable deficit, as the case may be, of the secondary affiliate,be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the primary affiliate, andbe deducted from the underlying foreign tax of the primary affiliate; andwhere by virtue of the primary affiliate being responsible for paying, or claiming a refund of, income or profits tax for the year on behalf of the consolidated group,an amount is paid to the primary affiliate by a secondary affiliate in respect of the income or profits tax that would have been payable by the secondary affiliate for the year had it not been a member of the group,in respect of the secondary affiliate, the amount so paid shall be deemed to be a payment of such income or profits tax for the year, andin respect of the primary affiliate,such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the exempt surplus or deducted from the exempt deficit, as the case may be, of the secondary affiliate shall at the end of the year be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the primary affiliate,such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the secondary affiliate is, at the end of the year, to be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the primary affiliate and deducted from the hybrid underlying tax of the primary affiliate, andsuch portion of the amount so paid as may reasonably be regarded as relating to an amount included in the taxable surplus or deducted from the taxable deficit, as the case may be, of the secondary affiliate shall at the end of the year be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the primary affiliate and be deducted from the underlying foreign tax of the primary affiliate, oran amount is paid by the primary affiliate to a secondary affiliate in respect of a reduction or refund, because of a loss or a tax credit of the secondary affiliate for a taxation year, of the income or profits tax that would otherwise have been payable by the primary affiliate for the year on behalf of the consolidated groupin respect of the primary affiliate,the portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the exempt surplus or included in the exempt deficit, as the case may be, of the secondary affiliate shall, at the end of the year to which the loss or the tax credit relates, be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the primary affiliate,such portion of the amount so paid as may reasonably be regarded as relating to an amount deducted from the hybrid surplus or included in the hybrid deficit, as the case may be, of the secondary affiliate is, at the end of the year of the loss, to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the primary affiliate and added to the hybrid underlying tax of the primary affiliate, andthe portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the taxable surplus or included in the taxable deficit, as the case may be, of the secondary affiliate shall, at the end of the year to which the loss or the tax credit relates, be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the primary affiliate and be added to the underlying foreign tax of the primary affiliate, andin respect of the secondary affiliate, the amount is deemed to be a refund to the secondary affiliate, for the year to which the loss or the tax credit relates, of income or profits tax in respect of the loss or the tax credit,and, for the purposes of this paragraph, any amount paid by a particular secondary affiliate to another secondary affiliate in respect of any income or profits tax that would have been payable by the particular secondary affiliate for the year had it not been a member of the consolidated group shall be deemed to have been paid in respect of such tax by the particular secondary affiliate to the primary affiliate and to have been paid in respect of such tax by the primary affiliate to the other secondary affiliate.For the purposes of subsection (1.1), a non-resident corporation is deemed to be, at any time, a foreign affiliate of a particular corporation resident in Canada if at that time the non-resident corporation is a foreign affiliate of another corporation that is resident in Canada and is related (otherwise than because of a right referred to in paragraph 251(5)(b) of the Act) to the particular corporation.Subsection (1.13) applies in respect of a particular foreign affiliate of a corporation resident in Canada that is a secondary affiliate (within the meaning assigned by subsection (1.1)) and in respect of a foreign affiliate of the corporation that is the primary affiliate (within the meaning assigned by subsection (1.1)) in respect of the particular affiliate ifthe particular affiliate has an equity percentage in another foreign affiliate (in this subsection and subsection (1.13) referred to as the “transparent affiliate”);under the income tax laws of the country referred to in subsection (1.1), if the particular affiliate were not a member of a consolidated group, the particular affiliate, and not the transparent affiliate, would be liable for any tax payable to, or entitled to any refund from, a government of that country for that year in respect of the income or profits, or loss, as the case may be, for the year of the transparent affiliate; andthe primary affiliate pays income or profits tax, or receives a refund, in respect of the income or profits, or loss, as the case may be, for the year of the transparent affiliate.If this subsection applies, then in respect of the particular foreign affiliate and the primary affiliate referred to in subsection (1.12)for the purposes of applying subparagraphs (1.1)(a)(iv) and (1.1)(b)(i), where any income or profits tax that would otherwise be payable by the particular affiliate for the year, if the particular affiliate had no other taxation year and were not a member of the consolidated group referred to in subsection (1.1), is increased because of income or profits of the transparent affiliate referred to in paragraph (1.12)(a),to the extent that the income or profits increases the net earnings included in the exempt earnings of the transparent affiliate,the amount of any such increase is deemed to have been included in the exempt surplus, or deducted from the exempt deficit, as the case may be, of the particular affiliate, andany such income or profits tax that would have been payable by the particular affiliate in respect of the income or profits is deemed to be income or profits tax that would otherwise have reduced the net earnings that are included in the exempt earnings of the particular affiliate,to the extent that the income or profits increases the hybrid surplus or reduces the hybrid deficit of the transparent affiliate,the amount of the increase or reduction is deemed to have been included in the hybrid surplus, or deducted from the hybrid deficit, as the case may be, of the particular affiliate, andany such income or profits tax that would have been payable by the particular affiliate in respect of the income or profits is deemed to be income or profits tax that would otherwise have reduced the hybrid surplus or increased the hybrid deficit, as the case may be, of the particular affiliate, andto the extent that the income or profits increases the net earnings included in the taxable earnings of the transparent affiliate,the amount of any such increase is deemed to have been included in the taxable surplus, or deducted from the taxable deficit, as the case may be, of the particular affiliate, andany such income or profits tax that would have been payable by the particular affiliate in respect of the income or profits is deemed to be income or profits tax that would otherwise have reduced the net earnings that are included in the taxable earnings of the particular affiliate; andfor the purpose of applying subparagraphs (1.1)(a)(v) and (1.1)(b)(ii), to the extent that the income or profits tax that would otherwise have been payable by the primary affiliate for the year on behalf of the consolidated group is reduced because of a loss, for the year or a previous taxation year, of the transparent affiliate referred to in paragraph (1.12)(a), or to the extent that the primary affiliate receives, in respect of a loss of the transparent affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the primary affiliate on behalf of the consolidated group,such loss is deemed to be a loss of the particular affiliate,to the extent that such loss reduces the exempt surplus or increases the exempt deficit of the transparent affiliate, such loss is deemed to reduce the exempt surplus or increase the exempt deficit, as the case may be, of the particular affiliate,to the extent that such loss reduces the hybrid surplus or increases the hybrid deficit of the transparent affiliate, such loss is deemed to reduce the hybrid surplus or increase the hybrid deficit, as the case may be, of the particular affiliate, andto the extent that such loss reduces the taxable surplus or increases the taxable deficit of the transparent affiliate, such loss is deemed to reduce the taxable surplus or increase the taxable deficit, as the case may be, of the particular affiliate.For the purposes of this Part, where, pursuant to the income tax law of a country other than Canada, a corporation resident in that country that is a foreign affiliate of a corporation resident in Canada (in this subsection referred to as the “taxpaying affiliate”) deducts, in computing its income or profits tax payable for a taxation year to a government of that country, a loss of another corporation resident in that country that is a foreign affiliate of the corporation resident in Canada (in this subsection referred to as the “loss affiliate”), the following rules apply:any such income or profits tax paid by the taxpaying affiliate for the year shall be deemed not to have been paid;any such income or profits tax that would have been payable by the taxpaying affiliate for the year if the taxpaying affiliate had not been allowed to deduct such loss shall be deemed to have been paid for the year;to the extent that the income or profits tax that would otherwise have been payable by the taxpaying affiliate for the year is reduced by virtue of such loss, the amount of such reduction shall at the end of the year,where such loss reduces the exempt surplus or increases the exempt deficit, as the case may be, of the loss affiliate, be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the taxpaying affiliate,where such loss reduces the hybrid surplus or increases the hybrid deficit, as the case may be, of the loss affiliate,be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the taxpaying affiliate, andbe deducted from the hybrid underlying tax of the taxpaying affiliate, andwhere such loss reduces the taxable surplus or increases the taxable deficit, as the case may be, of the loss affiliate,be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the taxpaying affiliate, andbe deducted from the underlying foreign tax of the taxpaying affiliate; andwhere an amount is paid by the taxpaying affiliate to the loss affiliate in respect of the reduction, by virtue of such loss, of the income or profits tax that would otherwise have been payable by the taxpaying affiliate for the year,in respect of the taxpaying affiliate,such portion of the amount as may reasonably be regarded as relating to an amount deducted from the exempt surplus or included in the exempt deficit, as the case may be, of the loss affiliate shall at the end of the year be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the taxpaying affiliate,such portion of the amount as may reasonably be regarded as relating to an amount deducted from the hybrid surplus or included in the hybrid deficit, as the case may be, of the loss affiliate is, at the end of the year, to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the taxpaying affiliate and added to the hybrid underlying tax of the taxpaying affiliate, andsuch portion of the amount as may reasonably be regarded as relating to an amount deducted from the taxable surplus or included in the taxable deficit, as the case may be, of the loss affiliate shall at the end of the year be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the taxpaying affiliate and be added to the underlying foreign tax of the taxpaying affiliate, andin respect of the loss affiliate, the amount shall be deemed to be a refund to the loss affiliate of income or profits tax in respect of the loss for the taxation year of the loss.Subsection (1.22) applies ifa foreign affiliate of the taxpayer (in this subsection and subsection (1.22) referred to as the “shareholder affiliate”) has an equity percentage in another foreign affiliate (in this subsection and subsection (1.22) referred to as the “transparent affiliate”); andunder the income tax laws of the country in which the shareholder affiliate is resident, the shareholder affiliate, and not the transparent affiliate, is liable for any tax payable to, or entitled to any refund from, a government of that country for that year in respect of the income or profits, or loss, as the case may be, for the year of the transparent affiliate.If this subsection applies, for the purpose of applying subsection (1.2), any loss of the transparent affiliate, to the extent that the loss is deducted in computing the income, profits or loss of the shareholder affiliate under an income tax law referred to in paragraph (1.21)(b),is deemed to be a loss of the shareholder affiliate; andis deemed toreduce the exempt surplus, or increase the exempt deficit, as the case may be, of the shareholder affiliate to the extent that it reduces the exempt surplus or increases the exempt deficit of the transparent affiliate,reduce the hybrid surplus or increase the hybrid deficit, as the case may be, of the shareholder affiliate to the extent that it reduces the hybrid surplus or increases the hybrid deficit of the transparent affiliate, andreduce the taxable surplus or increase the taxable deficit, as the case may be, of the shareholder affiliate to the extent that it reduces the taxable surplus or increases the taxable deficit of the transparent affiliate.For the purpose of paragraph (b) of the definition foreign accrual tax in subsection 95(1) of the Act and subject to subsection (1.4),if under the income tax laws of the country in which the particular affiliate or a shareholder affiliate of the particular affiliate, as the case may be, referred to in that paragraph is resident, the particular affiliate, or shareholder affiliate, and one or more other corporations, each of which is resident in that country, determine their liabilities for income or profits tax payable to the government of that country for a taxation year on a consolidated or combined basis, then any amount paid by the particular affiliate, or shareholder affiliate, to any of those other corporations to the extent that the amount paid may reasonably be regarded as being in respect of income or profits tax that would otherwise have been payable by the particular affiliate, or shareholder affiliate, in respect of a particular amount that is included under subsection 91(1) of the Act in computing the taxpayer’s income for a taxation year of the taxpayer in respect of the particular affiliate, if the tax liability of the particular affiliate, or shareholder affiliate, and those other corporations had not been determined on a consolidated or combined basis, is prescribed to be foreign accrual tax applicable to the particular amount; andif, under the income tax laws of the country in which the particular affiliate or a shareholder affiliate of the particular affiliate, as the case may be, referred to in that paragraph is resident, the particular affiliate, or shareholder affiliate, deducts, in computing its income or profits subject to tax in that country for a taxation year, an amount in respect of a loss of another corporation (referred to in this paragraph and paragraph (1.6)(a) as the “loss transferor”) resident in that country (referred to in this paragraph and paragraph (1.6)(a) as the “transferred loss”), then any amount paid by the particular affiliate, or shareholder affiliate, to the loss transferor to the extent that the amount paid may reasonably be regarded as being in respect of income or profits tax that would otherwise have been payable by the particular affiliate, or shareholder affiliate, in respect of a particular amount that is included under subsection 91(1) of the Act in computing the taxpayer’s income for a taxation year of the taxpayer in respect of the particular affiliate, if the tax liability of the particular affiliate, or shareholder affiliate, had been determined without deducting the transferred loss, is prescribed to be foreign accrual tax applicable to the particular amount.If the amount prescribed under paragraph (1.3)(a) or (b), or any portion of the amount, can reasonably be considered to be in respect of a particular loss (other than a capital loss) or a capital loss of another corporation for a taxation year of the other corporation, then the amount so prescribed is to be reduced to the extent that it can reasonably be considered to be in respect of the portion of the particular loss or capital loss, as the case may be, that would, if sections 5903 and 5903.1 were read without reference to their subsection (4), not be a foreign accrual property loss (within the meaning assigned by subsection 5903(3)), or a foreign accrual capital loss (within the meaning assigned by subsection 5903.1(3)), as the case may be, of a controlled foreign affiliate of a person or partnership that is, at the end of that taxation year, a relevant person or partnership (within the meaning assigned by subsection 5903(6)) in respect of the taxpayer.If subsection (1.4) applied to reduce an amount that would, in the absence of subsection (1.4), be prescribed by subsection (1.3) to be foreign accrual tax applicable to an amount (referred to in this subsection as the “FAPI amount”) included under subsection 91(1) of the Act in computing the taxpayer’s income for a taxation year (referred to in subsection (1.6) as the “FAPI year”) of the taxpayer in respect of the particular affiliate referred to in paragraph (1.3)(a) or (b), then an amount equal to that reduction is, for the purposes of paragraph (b) of the definition foreign accrual tax in subsection 95(1) of the Act, prescribed to be foreign accrual tax applicable to the FAPI amount in the taxpayer’s taxation year that includes the last day of the designated taxation year, if any, of the particular affiliate or the shareholder affiliate referred to in paragraph (1.3)(a) or (b), as the case may be.For the purposes of subsection (1.5), the designated taxation year of the particular affiliate or the shareholder affiliate, as the case may be, is a particular taxation year of the particular affiliate, or the shareholder affiliate, ifin the particular year, or in the taxation year of the particular affiliate or shareholder affiliate (referred to in this paragraph as the “PATY”) ending in the FAPI year and one or more taxation years of the particular affiliate (or shareholder affiliate) each of which follows the PATY and the latest of which is the particular year, all losses of the particular affiliate (or shareholder affiliate) and the other corporations referred to in paragraph (1.3)(a)  — or of the particular affiliate, the loss transferor and each corporation that would have been permitted to deduct the transferred loss against its income under the income tax laws referred to in paragraph (1.3)(b) if the transferred loss had not been deducted by the particular affiliate and if the corporation had taxable income for its taxation years ending in the FAPI year in excess of the transferred loss — for their taxation years ending in the FAPI year would, on the assumption that the particular affiliate (or shareholder affiliate) and each of those other corporations had no foreign accrual property income for any taxation year, reasonably be considered to have been fully deducted (under the tax laws referred to in paragraph (1.3)(a) or (b)) against income (as determined under those tax laws) of the particular affiliate (or shareholder affiliate) or those other corporations;the taxpayer demonstrates that no other losses of the particular affiliate (or shareholder affiliate) or those other corporations for any taxation year were, or could reasonably have been, deducted under those tax laws against that income; andthe last day of the particular year occurs in one of the five taxation years of the taxpayer that immediately follow the FAPI year.If the amount prescribed under paragraph (1.3)(a) or (b), or any portion of the amount, can reasonably be considered to be in respect of a capital loss of another corporation for a taxation year of the other corporation, then the amount so prescribed, as reduced by subsection (1.4), if applicable, shall be reduced to the extent that it can reasonably be considered to be in respect of the portion of that capital loss that would not be deductible by the particular affiliate in computing its foreign accrual property income for the year if the capital loss had been incurred by the particular affiliate.In computing the earnings of a foreign affiliate of a taxpayer resident in Canada for a taxation year of the affiliate from an active business carried on by it in a country, there shall be added to the amount thereof determined under subparagraph (a)(i) or (ii) of the definition earnings in subsection (1) (in this subsection referred to as the “earnings amount”) such portion of the following amounts as was deducted or was not included, as the case may be, in computing the earnings amount,any income or profits tax paid to the government of a country by the affiliate so deducted,if established by the taxpayer, the amount by which any amount so deducted in respect of an expenditure made by the affiliate exceeds the amount, if any, by whichthe amount of the expenditureexceedsthe aggregate of all other deductions in respect of that expenditure made by the affiliate in computing the earnings amounts for preceding taxation years,any loss of the affiliate referred to in the description of D in the definition foreign accrual property income in subsection 95(1) of the Act so deducted,any capital loss of the affiliate in respect of the disposition of capital property so deducted (for greater certainty, capital property of the affiliate for the purposes of this paragraph includes all the property of the affiliate other than property referred to in subparagraph 39(1)(b)(i) or (ii) of the Act on the assumption for this purpose that the affiliate is a corporation resident in Canada),any loss of the affiliate for a preceding or a subsequent taxation year so deducted,any revenue, income or profit (other than an amount referred to in paragraph (f.1), (h) or (i)) of the affiliate derived in the year from such business carried on in that country to the extent that such revenue, income or profitis not otherwise required to be included in computing the earnings amount of the affiliate for any taxation year by the income tax law that is relevant in computing that amount, andsubject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate,to a person or partnership that was, at the time of the disposition, a designated person or partnership in respect of the taxpayer, andto which a tax deferral, rollover or similar tax postponement provision of the income tax laws that are relevant in computing the earnings amount of the affiliate applied, andany assistance from a government, municipality or other public authority (other than any such assistance that reduced the amount of an expenditure for purposes of computing the earnings amount for any taxation year) that the affiliate received or became entitled to receive in the year in connection with such business carried on in that country that is not otherwise required to be included in computing the earnings amount for the year or for any other taxation year,and there shall be deducted such portion of the following amounts as were included or were not deducted, as the case may be, in computing the earnings amount,any income or profits tax refunded by the government of a country to the affiliate so included;any capital gain of the affiliate in respect of the disposition of capital property so included (for greater certainty, capital property of the affiliate for the purposes of this paragraph includes all the property of the affiliate other than property referred to in any of subparagraphs 39(1)(a)(i) to (iv) of the Act on the assumption for this purpose that the affiliate is a corporation resident in Canada);any amount that is included in the foreign accrual property income of the affiliate so included;any loss, outlay or expense made or incurred in the year by the affiliate for the purpose of gaining or producing such earnings amount to the extent thatsuch loss, outlay or expense is not otherwise permitted to be deducted in computing the earnings amount of the affiliate for any taxation year by the income tax law that is relevant in computing that amount, orsuch outlay or expense can reasonably be regarded as applicable to any revenue added to the earnings amount of the affiliate under paragraph (f),where such loss, outlay or expensesubject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate,to a person or partnership that was, at the time of the disposition, a designated person or partnership in respect of the taxpayer, andto which a loss deferral or similar loss postponement provision of the income tax laws that are relevant in computing the earnings amount of the affiliate applied, andis nota loss referred to in paragraph (c) or (d),a capital expenditure other than interest, orincome or profits tax paid to the government of a country;any outlay made in the year in repayment of an amount referred to in paragraph (f.1); andif any property of the affiliate that was acquired from a person or partnership that was, at the time of the acquisition, a designated person or partnership in respect of the taxpayer has been disposed of, the amount in respect of that property that may reasonably be considered as having been included under paragraph (f) in computing the earnings amount of any foreign affiliate of the taxpayer or of a person or partnership that was, at the time of the disposition, a designated person or partnership in respect of the taxpayer.Subparagraphs (2)(f)(ii) and (j)(iii) and subsection (5.1) do not apply to a particular disposition of property (referred to in this subsection as the “affiliate property”) by a particular foreign affiliate of a taxpayer to another foreign affiliate of the taxpayer ifthe only consideration in respect of the particular disposition is one or any combination ofshares of the capital stock of the other affiliate, andthe assumption by the other affiliate of a debt or other obligation owing by the particular affiliate that arose in the ordinary course of the business of the particular affiliate to which the affiliate property relates;all of the shares of the capital stock of the other affiliate that are, immediately after the particular disposition, owned by the particular affiliate are disposed of, at a particular time that is within 90 days of the day that includes the time of the particular disposition, to a person or partnership that at the particular time is not a designated person or partnership in respect of the taxpayer; andthe affiliate property is not disposed of by the other affiliate as part of a series of transactions or events that includes the particular disposition.Subparagraphs (2)(f)(ii) and (j)(iii) and subsection (5.1) do not apply to a particular disposition of property (referred to in this subsection as the “affiliate property”) by a particular foreign affiliate of a taxpayer to another foreign affiliate of the taxpayer ifthe particular disposition is a disposition referred to in subparagraph 15(1.5)(c)(i) of the Act;all of the shares of the capital stock of the other affiliate are owned, at a particular time that is within 180 days after the day that includes the time of the particular disposition, by a person or partnership that at the particular time is not a designated person or partnership in respect of the taxpayer; andthe affiliate property is not disposed of by the other affiliate as part of a series of transactions or events that includes the particular disposition.If an amount or a portion of an amount would, in the absence of this subsection, be included in computing the exempt earnings, or deducted in computing the exempt loss, of a foreign affiliate of a corporation in respect of the corporation for a taxation year of the affiliate and the amount or portion arises from a disposition of property (other than money), at any time, to a person or partnership that was, at that time, a designated person or partnership in respect of the corporation where that disposition is a transaction (within the meaning of subsection 245(1) of the Act) that is, or would be (if the amount or portion were a tax benefit for the purposes of section 245 of the Act), an avoidance transaction (within the meaning of subsection 245(3) of the Act), the following rules apply:the amount or portion is instead to be included in the affiliate’s taxable earnings for the year in respect of the corporation; andany income or profits tax relating to the transaction that would otherwise be deducted in computing the exempt earnings, or included in computing the exempt loss, of the affiliate for the year in respect of the corporation, is instead to be deducted from the affiliate’s taxable earnings for the year in respect of the corporation.The determination — under subparagraph (a)(iii) and paragraph (b) of the definition earnings, and paragraph (b) of the definition loss, in subsection (1) — of the earnings or loss of a foreign affiliate of a taxpayer resident in Canada for a particular taxation year from an active business is to be made as if the affiliatehad, in computing its income or loss from the business for each taxation year (referred to in this paragraph as an “earnings or loss year”) that is the particular year or is any preceding taxation year that ends after August 19, 2011,claimed all deductions that it could have claimed under the Act, up to the maximum amount deductible in computing the income or loss from the business for that earnings or loss year, andmade all claims and elections and taken all steps under applicable provisions of the Act, or of enactments implementing amendments to the Act or its regulations, to maximize the amount of any deduction referred to subparagraph (i); andhad, in computing its income or loss from the business for any preceding taxation year that ended on or before August 19, 2011, claimed all deductions, if any, that it actually claimed under the Act, up to the maximum amount deductible, and made all claims and elections, if any, and taken all steps, if any, under applicable provisions of the Act, or of enactments implementing amendments to the Act or its regulations, that it actually made.In computing the earnings of a foreign affiliate of a corporation resident in Canada for a taxation year of the affiliate from an active business carried on by it in Canada or in a designated treaty country, where the affiliate is resident in a designated treaty country and the corporation, together with all other corporations resident in Canada with which the corporation does not deal at arm’s length and in respect of which the affiliate is a foreign affiliate, have so elected in respect of the business for the taxation year or any preceding taxation year of the affiliate, the following rules apply:there shall be added to the amount determined under subparagraph (a)(i) of the definition earnings in subsection (1) after adjustment in accordance with the provisions of subsection (2) (in this subsection and in subsection (2.2) referred to as the “adjusted earnings amount”) the total of all amounts each of which is the amount, if any, by whichthe amount that can reasonably be regarded as having been deducted in respect of the cost of a capital property or foreign resource property of the affiliate in computing the adjusted earnings amountexceedsthe amount that may reasonably be regarded as having been deducted in respect of the cost of that capital property or foreign resource property in computing income or profit of the affiliate for the year from that business in its financial statements prepared in accordance with the laws of the country in which the affiliate is resident;there shall be deducted from the adjusted earnings amount the aggregate of all amounts each of which is the amount, if any, by whichthe amount determined under subparagraph (a)(ii) in respect of that capital property or foreign resource propertyexceedsthe amount determined under subparagraph (a)(i) in respect of that capital property or foreign resource property;where any capital property or foreign resource property of the affiliate has been disposed of in the taxation year,there shall be added to the adjusted earnings amount the aggregate of the amounts deducted pursuant to paragraphs (b) and (2.2)(b) for preceding taxation years of the affiliate in respect of that capital property or foreign resource property, andthere shall be deducted from the adjusted earnings amount the aggregate of the amounts added pursuant to paragraphs (a) and (2.2)(a) for the preceding taxation years of the affiliate in respect of that capital property or foreign resource property; andfor the purposes of paragraph (c), where the affiliate has merged with one or more corporations to form a new corporation, any capital property or foreign resource property of the affiliate that becomes a property of the new corporation shall be deemed to have been disposed of by the affiliate in its last taxation year before the merger.Where the taxation year of a foreign affiliate of a particular corporation resident in Canada for which the particular corporation has made an election under subsection (2.1) in respect of an active business carried on by the affiliate is not the first taxation year of the affiliate in which it carried on the business and in which it was a foreign affiliate of the particular corporation or of another corporation resident in Canada with which the particular corporation was not dealing at arm’s length at any time (hereinafter referred to as the “non-arm’s length corporation”), in computing the earnings of the affiliate from the business for the taxation year for which the election is made, the following rules, in addition to those set out in subsection (2.1), apply:there shall be added to the adjusted earnings amount the aggregate of all amounts each of which is an amount that would have been determined under paragraph (2.1)(a) or subparagraph (2.1)(c)(i)for any preceding taxation year of the affiliate in which it was a foreign affiliate of the particular corporation if the particular corporation had made an election under subsection (2.1) for the first taxation year of the affiliate in which it was a foreign affiliate of the particular corporation and carried on the business, andfor any preceding taxation year of the affiliate (other than a taxation year referred to in subparagraph (i)) in which it was a foreign affiliate of the non-arm’s length corporation if the non-arm’s length corporation had made an election under subsection (2.1) for the first taxation year of the affiliate in which it was a foreign affiliate of the non-arm’s length corporation and carried on the business; andthere shall be deducted from the adjusted earnings amount the aggregate of all amounts each of which is an amount that would have been determined under paragraph (2.1)(b) or subparagraph (2.1)(c)(ii)for any preceding taxation year of the affiliate in which it was a foreign affiliate of the particular corporation if the particular corporation had made an election under subsection (2.1) for the first taxation year of the affiliate in which it was a foreign affiliate of the particular corporation and carried on the business, andfor any preceding taxation year of the affiliate (other than a taxation year referred to in subparagraph (i)) in which it was a foreign affiliate of the non-arm’s length corporation if the non-arm’s length corporation had made an election under subsection (2.1) for the first taxation year of the affiliate in which it was a foreign affiliate of the non-arm’s length corporation and carried on the business.For the purposes of this subsection and subsections (2.1) and (2.2), where an election under subsection (2.1) has been made by a corporation resident in Canada (in this subsection and in subsection (2.4) referred to as the “electing corporation”) in respect of an active business of a foreign affiliate of the electing corporation and the affiliate subsequently becomes a foreign affiliate of another corporation resident in Canada (in this subsection and in subsection (2.4) referred to as the “subsequent corporation”) that does not deal at arm’s length with the electing corporation, in computing the earnings of the affiliate from such business in respect of the subsequent corporation for any taxation year of the affiliate ending after the affiliate so became a foreign affiliate of the subsequent corporation, the subsequent corporation shall be deemed to have made an election under subsection (2.1) in respect of the business of the affiliate for the first such taxation year and for the purposes of paragraph (2.1)(d), the earnings of the affiliate for all of the preceding taxation years shall be deemed to have been adjusted in accordance with subsections (2.1) and (2.2) in the same manner as if the subsequent corporation had been the electing corporation.For the purposes of subsection (2.3)a corporation formed as a result of a merger, to which section 87 of the Act applies, of the electing corporation and one or more other corporations, ora corporation that has acquired shares of the capital stock of a foreign affiliate, in respect of which an election under subsection (2.1) has been made, from the electing corporation in a transaction in respect of which an election under section 85 of the Act was madeshall be deemed to be a subsequent corporation that does not deal at arm’s length with the electing corporation.[Repealed, SOR/97-505, s. 8]A corporation resident in Canada, and all other corporations resident in Canada with which the corporation does not deal at arm’s length, shall each be considered to have elected under subsection (2.1) in respect of an active business carried on by a non-resident corporation that is a foreign affiliate of each such corporation for a taxation year if there is filed with the Minister on or before the day that is the later ofJune 30, 1986, andthe earliest of the days on or before which any one of the said corporations is required to file a return of income pursuant to section 150 of the Act for its taxation year following the taxation year in which the taxation year of the affiliate in respect of which the election is made ends,the following information:a description of the active business sufficient to identify the business; anda statement on behalf of each such corporation, signed by an authorized official of the corporation on behalf of which the statement is made, that the corporation is electing under subsection (2.1) in respect of the business.Notwithstanding any other provision of this Part, if an amount (referred to in this subsection as the “inclusion amount”) is included in computing the income or loss from an active business of a foreign affiliate of a taxpayer for a taxation year under subparagraph 95(2)(a)(i) or (ii) of the Act and the inclusion amount is in respect of a particular amount paid or payable,if clause 95(2)(a)(ii)(D) of the Act is applicable, by the second affiliate referred to in that clause,the particular amount is to be deducted in computing the second affiliate’s income or loss from an active business carried on by it in the country in which it is resident for its earliest taxation year in which that amount was paid or payable,the second affiliate is deemed to have carried on an active business in that country for that earliest taxation year, andin computing the second affiliate’s income or loss for a taxation year from any source, no amount is to be deducted in respect of the particular amount except as required under subparagraph (i); andin any other case, by the other foreign affiliate referred to in subparagraph 95(2)(a)(i) or (ii) of the Act, as the case may be, or by a partnership of which the other foreign affiliate is a member, the particular amount is, except where it has been deducted under paragraph (2)(j) in computing the other foreign affiliate’s earnings or loss from an active business,to be deducted in computing the earnings or loss of the other foreign affiliate or the partnership, as the case may be, from the active business for its earliest taxation year in which the particular amount was paid or payable, andnot to be deducted in computing its earnings or loss from the active business for any other taxation year.[Repealed, 2013, c. 34, s. 46]If paragraph 95(2)(k.1) of the Act applies in respect of a particular taxation year of a foreign affiliate of a taxpayer or in respect of a particular fiscal period of a partnership (which foreign affiliate or partnership is referred to in this subsection as the “operator” and which particular taxation year or particular fiscal period is referred to in this subsection as the “specified taxation year”) a member of which is, at the end of the period, a foreign affiliate of a taxpayer,in computing the affiliate’s earnings or loss from the foreign business referred to in that paragraph for the affiliate’s taxation year (referred to in subparagraphs (i) and (ii) as the “preceding taxation year”) that includes the day that is immediately before the beginning of the specified taxation year,there is to be added to the amount determined under paragraph (a) of the definition earnings in subsection (1), after adjustment in accordance with subsections (2) to (2.2),where the operator is the affiliate, the total ofthe amount, if any, by which the total determined under sub-subclause (ii)(A)(I)2 in respect of the operator for the preceding taxation year exceeds the total determined under sub-subclause (ii)(A)(I)1 in respect of the operator for that year, andif the operator was deemed under paragraph 95(2)(k.1) of the Act to have, at the end of the preceding taxation year, disposed of property owned by it that was used or held by it in the course of carrying on the foreign business in that year, the amount that is the total of all amounts each of which is determined by the formula(A – B) – CwhereAis the fair market value, immediately before the end of that year, of a property deemed because of that paragraph to have been disposed of,Bis the amount determined under paragraph (a) of the definition relevant cost base in subsection 95(4) of the Act in respect of the property, in respect of the taxpayer, immediately before the time of the disposition, andCis the amount, if any, of the capital gain determined in respect of the disposition of the property at that time, andwhere the operator is the partnership, the amount determined under subsection 5908(13); andthere is to be added to the amount determined under paragraph (a) of the definition loss in subsection (1),where the operator is the affiliate, the total ofthe amount, if any, by whichthe total of all amounts each of which is an amount deemed under paragraph 95(2)(k.1) of the Act to have been claimed under any of paragraphs 20(1)(l), (l.1) and (7)(c), and subparagraphs 138(3)(a)(i), (ii) and (iv), of the Act (each of which provisions is referred to in this subparagraph as a “reserve provision”) in computing the income from the foreign business for the preceding taxation yearexceedsthe total of all amounts each of which is an amount actually claimed by the operator as a reserve in computing its income from the foreign business for that year that can reasonably be considered to be in respect of amounts in respect of which a reserve could have been claimed under a reserve provision on the assumption that the operator could have claimed amounts in respect of the reserve provisions for that year, andthe total of all amounts each of which is the amount, if any, by which the amount determined under the description of B in the formula in subclause (i)(A)(II) in respect of a property described in that subclause exceeds the amount determined under the description of A in the formula in that clause in respect of the property, andwhere the operator is the partnership, the amount determined under subsection 5908(13); andany property of the operator that is, under that paragraph, deemed to have been disposed of and reacquired by the operator is, for the purposes of this section, deemed to have been disposed of and reacquired by the operator in the same manner and for the same amounts as if that paragraph applied for the purposes of this section.For the purposes of this Part, any corporation that was, on January 1, 1972, a foreign affiliate of a taxpayer shall be deemed to have become a foreign affiliate of the taxpayer on that day.For the purposes of this Part, government of a country includes the government of a state, province or other political subdivision of that country.For the purposes of this section, each capital gain, capital loss, taxable capital gain or allowable capital loss of a foreign affiliate of a taxpayer from the disposition of property is to be computed in accordance with the rules set out in subsection 95(2) of the Act.For the purposes of subsection (6), if any capital gain, capital loss, taxable capital gain or allowable capital loss referred to in subsection (5), or any capital loss referred to in subparagraph (iii) of the description of B in the definition hybrid surplus in subsection (1), of a foreign affiliate of a corporation is required to be computed in Canadian currency and the currency referred to in subsection (6) is not Canadian currency, the amount of the gain or loss is to be converted from Canadian currency into the currency referred to in subsection (6) at the rate of exchange prevailing on the date of disposition of the property.Notwithstanding subsection (5), if, under the income tax laws of a country other than Canada that are relevant in computing the earnings of a foreign affiliate of a taxpayer resident in Canada from an active business carried on by it in a country, no gain or loss is recognized in respect of a disposition (other than a disposition to which subsection (9) applies) by the affiliate of a capital property used or held principally for the purpose of gaining or producing income from an active business to a person or partnership (in this subsection referred to as the “transferee”) that was, at the time of the disposition, a designated person or partnership in respect of the taxpayer, for the purposes of this section,the affiliate’s proceeds of disposition of the property shall be deemed to be an amount equal to the aggregate of the adjusted cost base to the affiliate of the property immediately before the disposition and any outlays and expenses to the extent they were made or incurred by the affiliate for the purpose of making the disposition;the cost to the transferee of the property acquired from the affiliate shall be deemed to be an amount equal to the affiliate’s proceeds of disposition, as determined under paragraph (a); andthe transferee shall be deemed to have acquired the property on the date that it was acquired by the affiliate.All amounts referred to in subsections (1) and (2) shall be maintained on a consistent basis from year to year in the currency of the country in which the foreign affiliate of the corporation resident in Canada is resident or any currency that the corporation resident in Canada demonstrates to be reasonable in the circumstances.For the purposes of this Part, the amount of any stock dividend paid by a foreign affiliate of a corporation resident in Canada on a share of a class of its capital stock shall be deemed to be nil.[Repealed, 2013, c. 34, s. 85]For the purposes of computing the various amounts referred to in this section,the first taxation year of a foreign affiliate, of a corporation resident in Canada, that is formed as a result of a foreign merger (within the meaning assigned by subsection 87(8.1) of the Act) is deemed to have commenced at the time of the merger, and a taxation year of a predecessor corporation (within the meaning assigned by subsection 5905(3)) that would otherwise have ended after that time is deemed to have ended immediately before that time; andif subsection 91(1.2) of the Act applies at any particular time in respect of a foreign affiliate of a corporation, the various amounts are to be computed, in respect of attributed amounts for the stub period in respect of the particular time, as ifthe affiliate’s taxation year that would have included the particular time ended at the stub-period end time in respect of the particular time, andall transactions or events, giving rise to attributed amounts, that occurred at the particular time, occurred at the stub-period end time in respect of the particular time.The following definitions apply in paragraph 5907(8)(b).attributed amounts, for a stub period, in respect of a particular time referred to in paragraph (8)(b), of a foreign affiliate of a corporation, means the amounts of any income, gain or loss of the affiliate for the stub period that are relevant in determining amounts that are to be included or may be deducted under section 91 of the Act in respect of the affiliate for the particular stub period, in computing the income of the corporation;any portion of the affiliate’s capital gain or capital loss – from a disposition, in the stub period or at the particular time referred to in paragraph (8)(b), of a property that is not an excluded property – that is not described in paragraph (a); andany income or profits tax paid to the government of a country, in respect of amounts described in paragraph (a) or (b). (sommes attribuées)stub period, in respect of a particular time at which subsection 91(1.2) of the Act applies in respect of a foreign affiliate of a corporation, means a period that ends at the stub-period end time in respect of the particular time and begins immediately after the later of the last time, if any, before the particular time that subsection 91(1.2) applied in respect of the affiliate, andthe end of the affiliate’s last taxation year before the particular time. (période tampon)stub-period end time, in respect of a particular time at which subsection 91(1.2) of the Act applies in respect of a foreign affiliate of a corporation, means the time that is immediately before the particular time. (fin de la période tampon)If a foreign affiliate of a taxpayer has been liquidated and dissolved (otherwise than as a result of a foreign merger within the meaning assigned by subsection 87(8.1) of the Act), for the purposes of computing the various amounts referred to in this section, the following rules apply:where, at a particular time, property having a fair market value equal to or greater than 90 percent of the fair market value of all of the property that was owned by the affiliate immediately before the commencement of the liquidation and dissolution has been disposed of by the affiliate in the course of the liquidation and dissolution, the taxation year of the affiliate that otherwise would have included the particular time is deemed to have ended immediately before that time; andeach property of the affiliate that was disposed of by the affiliate in the course of the liquidation and dissolution is deemed to have beendisposed of by the affiliate, at the time that is the earlier of the time it was actually disposed of and the time that is immediately before the time that is immediately before the particular time, for proceeds of disposition equal toif the liquidation and dissolution is one to which subsection 88(3) of the Act applies in respect of the disposition, the amount that would, in the absence of subsection 88(3.3) of the Act, be determined under paragraph 88(3)(a) or (b) of the Act, as the case may be,if the liquidation and dissolution is one to which paragraph 95(2)(e) of the Act applies in respect of the disposition, the amount determined under subparagraph 95(2)(e)(i) or (ii) of the Act, as the case may be, andin any other case, the fair market value of the property at the time it was actually disposed of, andacquired by the person or partnership to which the affiliate disposed of the property, at the time it was actually acquired, at a cost equal to the affiliate’s proceeds of disposition of the property.Notwithstanding any other provision of this Part, in determining the earnings or loss of a foreign affiliate of a taxpayer resident in Canada, for a taxation year of the affiliate from an active business carried on by it in a country,from a disposition of property to which paragraph 95(2)(d.1) of the Act applies, those earnings or that loss are to be determined using the rules in that paragraph; andfrom a disposition of property acquired in a transaction to which paragraph 95(2)(d.1) of the Act applies, the cost to the affiliate of the property is to be determined using the rules in that paragraph.Wherethe net earnings or net loss for a taxation year of a foreign affiliate of a corporation resident in Canada from an active business carried on in a country other than Canada would otherwise be included in the affiliate’s taxable earnings or taxable loss, as the case may be, for the year,the rate of the income or profits tax to which any earnings of that active business of the affiliate are subjected by the government of that country is, by virtue of a special exemption from or reduction of tax (other than an export incentive) that is provided under a law of such country to promote investments or projects in pursuance of a program of economic development, less than the rate of such tax that would, but for such exemption or reduction, be paid by the affiliate, andthe affiliate qualified for such exemption from or reduction of tax in respect of an investment made by it in that country before January 1, 1976 or in respect of an investment made by it or a project undertaken by it in that country pursuant to an agreement in writing entered into before January 1, 1976,for the purposes of this Part, such net earnings or net loss shall be included in the affiliate’s exempt earnings or exempt loss, as the case may be, for the year and not in the affiliate’s taxable earnings or taxable loss, as the case may be, for the year.For the purposes of this Part, a sovereign state or other jurisdiction is a designated treaty country for a taxation year of a foreign affiliate of a corporation if Canada has entered into a comprehensive agreement or convention for the elimination of double taxation on income, or a comprehensive tax information exchange agreement, in respect of that sovereign state or jurisdiction, that has entered into force and has effect for that taxation year, but any territory, possession, department, depend- ency or area of that sovereign state or jurisdiction to which that agreement or convention does not apply is not considered to be part of that sovereign state or jurisdiction for the purpose of determining whether it is a designated treaty country.For the purpose of subsection (11), where a comprehensive agreement or convention between Canada and another country for the elimination of double taxation on income has entered into force, that convention or agreement is deemed to have entered into force and have effect in respect of a taxation year of a foreign affiliate of a corporation any day of which is in the period that begins on the day on which the agreement or convention was signed and that ends on the last day of the last taxation year of the affiliate for which the agreement or convention is effective.For the purpose of applying subsection (11) in respect of a foreign affiliate of a corporation, where a comprehensive tax information exchange agreement enters into force on a particular day, the agreement is deemed to enter into force and to come into effect on the first day of the foreign affiliate’s taxation year that includes the particular day.For the purposes of this Part, a foreign affiliate of a corporation is, at any time, deemed not to be resident in a country with which Canada has entered into a comprehensive agreement or convention for the elimination of double taxation on income unlessthe affiliate is, at that time, a resident of that country for the purpose of the agreement or convention;the affiliate would, at that time, be a resident of that country for the purpose of the agreement or convention if the affiliate were treated, for the purpose of income taxation in that country, as a body corporate;where the agreement or convention entered into force before 1995, the affiliate would, at that time, be a resident of that country for the purpose of the agreement or convention but for a provision in the agreement or convention that has not been amended after 1994 and that provides that the agreement or convention does not apply to the affiliate; orthe affiliate would, at that time, be a resident of that country, as provided by paragraph (a), (b) or (c) if the agreement or convention had entered into force.[Repealed, 2013, c. 34, s. 46]For the purposes of subparagraph (ii) of paragraph 128.1(1)(d) of the Act, the prescribed amount is the amount determined by the formulaX + YwhereXis the amount, if any, by whichthe amount, if any, determined by the formulaA – B – (C – D) + (E – F)whereAis the taxable surplus of the foreign affiliate of the other taxpayer referred to in that paragraph, in respect of the other taxpayer, at the end of the year referred to in that subparagraph,Bis the affiliate’s net earnings for the year in respect of the affiliate’s foreign accrual property income for the year to the extent those net earnings have been included in the amount referred to in the description of A,Cis the total of all amounts each of which is the amount by which the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year would have increased because of the gain or income of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate,Dis the total of all amounts each of which is the amount otherwise added in computing the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes paid to the government of a country in respect of all or a portion of a gain or an income of the affiliate referred to in the description of C,Eis the total of all amounts each of which is the amount by which the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year would have decreased because of the loss of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate, andFis the total of all amounts each of which is the amount otherwise deducted in computing the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes refunded by the government of a country in respect of all or a portion of a loss of the affiliate referred to in the description of Eexceedsthe amount, if any, determined by the formula[(G – H) × (J – 1)] + KwhereGis the amount determined by the formulaL + M – NwhereLis the underlying foreign tax of the affiliate in respect of the other taxpayer at the end of the year,Mis the amount, if any, by which the amount determined under the description of C in paragraph (a) exceeds the amount determined under the description of D in that paragraph, andNis the amount, if any, by which the amount determined under the description of E in paragraph (a) exceeds the amount determined under the description of F in that paragraph,His the portion of the value of L that can reasonably be considered to relate to the affiliate’s net earnings for the year in respect of the affiliate’s foreign accrual property income,Jis the other taxpayer’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act) for its taxation year that includes the time that is immediately before the particular time, andKis the amount, if any, by whichthe total of all amounts required by paragraph 92(1)(a) of the Act to be added at any time in a preceding taxation year in computing the adjusted cost base to the other taxpayer of the shares of the affiliate owned by the other taxpayer at the end of the yearexceedsthe total of all amounts required by paragraph 92(1)(b) of the Act to be deducted at any time in a preceding taxation year in computing the adjusted cost base to the other taxpayer of the shares of the affiliate owned by the other taxpayer at the end of the year, andYis the amount, if any, by whichthe amount, if any, determined by the formulaP – (Q – R) + (S – T)wherePis the affiliate’s hybrid surplus in respect of the other taxpayer at the end of the year,Qis the total of all amounts each of which is the amount by which the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year would have increased because of the capital gain of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate,Ris the total of all amounts each of which is the amount otherwise added in computing the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes paid to the government of a country in respect of all or a portion of a capital gain of the affiliate referred to in the description of Q,Sis the total of all amounts each of which is the amount by which the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year would have decreased because of the capital loss of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate, andTis the total of all amounts each of which is the amount otherwise deducted in computing the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes refunded by the government of a country in respect of all or a portion of a capital loss of the affiliate referred to in the description of S;exceedsthe amount, if any, determined by the formula[U × (V – 0.5)] + (W × 0.5)whereUis the amount determined by the formulaU.1 + U.2 – U.3whereU.1is the hybrid underlying tax of the affiliate in respect of the other taxpayer at the end of the year,U.2is the amount, if any, by which the amount determined under the description of Q in paragraph (a) exceeds the amount determined under the description of R in that paragraph, andU.3is the amount, if any, by which the amount determined under the description of S in paragraph (a) exceeds the amount determined under the description of T in that paragraph,Vis the other taxpayer’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act) for its taxation year that includes the time that is immediately before the particular time, andWis the amount determined under paragraph (a).For the purposes of the description of C in paragraph (a) of the description of X in subsection (13) and the description of Q in paragraph (a) of the description of Y in subsection (13), the amount by which the underlying foreign tax or the hybrid underlying tax, as the case may be, of the affiliate in respect of the other taxpayer at the end of the year would have increased if a disposition (referred to in this subsection as the “notional actual disposition”) deemed under paragraph 128.1(1)(b) of the Act of any property by the affiliate had been an actual disposition of the property by the affiliate is the total of all amounts each of which is the amount, if any, by whichthe amount (determined on the assumption that the notional actual disposition occurred at the time of the deemed disposition) that can reasonably be considered to be the amount of income or profits tax that the affiliate would, because of the notional actual disposition, have had to pay to the government of a particular country (other than Canada), in addition to any other income or profits tax otherwise payable to that government, in relation to the gain or income of the affiliate from the notional actual dispositionexceedsthe amount that can reasonably be considered to be the portion of the notional income or profits tax payable by the affiliate to the government of the particular country in relation to the gain or income of the affiliate from the notional actual disposition (determined on the assumptions that the notional actual disposition occurred immediately after the time that is immediately after the time of the deemed disposition and that the notional income or profits tax payable by the affiliate to the government of the particular country in relation to the notional actual disposition is equal to the amount determined under paragraph (a)) that, because of a comprehensive agreement or convention for the elimination of double taxation on income between the government of the particular country and the government of any other country, would not have been payable to the government of the particular country.For the purposes of the description of E in paragraph (a) of the description of X in subsection (13) and the description of S in paragraph (a) of the description of Y in subsection (13), the amount by which the underlying foreign tax or the hybrid underlying tax, as the case may be, of the affiliate in respect of the other taxpayer at the end of the year would have decreased if a disposition (referred to in this subsection as the “notional actual disposition”) deemed under paragraph 128.1(1)(b) of the Act of any property by the affiliate had been an actual disposition of the property by the affiliate is the total of all amounts each of which the amount, if any, by whichthe amount (determined on the assumption that the notional actual disposition occurred at the time of the deemed disposition) that can reasonably be considered to be the amount of income or profits tax that the affiliate would, because of the notional actual disposition, have had refunded to it by the government of a particular country (other than Canada), in addition to any other income or profits tax otherwise refundable by that government, in relation to the loss or capital loss, as the case may be, of the affiliate from the notional actual dispositionexceedsthe amount that can reasonably be considered to be the portion of the notional income or profits tax refundable to the affiliate by the government of the particular country in relation to the loss or capital loss, as the case may be, of the affiliate from the notional actual disposition (determined on the assumptions that the notional actual disposition occurred immediately after the time that is immediately after the time of the deemed disposition and that the notional income or profits tax refundable to the affiliate by the government of the particular country in relation to the notional actual disposition is equal to the amount determined by paragraph (a)) that, because of a comprehensive agreement or convention for the elimination of double taxation on income between the government of the particular country and the government of any other country, would not have been refundable by the government of the particular country.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-211, s. 1; SOR/78-913, s. 2; SOR/80-141, s. 5; SOR/85-176, s. 4; SOR/88-165, s. 29(F); SOR/89-135, s. 3; SOR/94-686, ss. 31(F), 58(F); 69(F), 70(F), 78(F), 79(F); SOR/96-228, s. 2; SOR/97-505, s. 8; 2009, c. 2, s. 112; 2013, c. 34, ss. 46, 85, 401; 2014, c. 39, s. 88; 2017, c. 33, s. 97; 2018, c. 27, s. 392024, c. 15, s. 83SOR/2024-231, s. 14
For the purposes of this subsection, subsections (2) to (7), paragraph 5902(2)(b) and section 5905, if at any time shares of a class of the capital stock of a foreign affiliate of a corporation resident in Canada are, based on the assumptions contained in paragraph 96(1)(c) of the Act, owned by a partnership, or are deemed under this subsection to be owned by a partnership, each member of the partnership is deemed to own at that time the number of shares of that class that is determined by the formulaA × B/CwhereAis the number of shares of that class that are so owned or so deemed owned by the partnership;Bis the fair market value of the member’s interest in the partnership at that time; andCis the fair market value of all members’ interests in the partnership at that time.For the purposes of subsections (4) and 5905(1), (5) and (7.1), if a person is deemed by subsection (1) to own at a particular time a different number of shares of a class of the capital stock of a foreign affiliate of a corporation resident in Canada (which shares so deemed owned are referred to in this subsection as “affiliate shares”) than the person was deemed by that subsection to have owned immediately before the particular time, the number of affiliate shares equal to that difference is deemed to bedisposed of, at the particular time, by the person, when that person is deemed to own fewer affiliate shares at the particular time than immediately before it; andacquired by, at the particular time, the person, when that person is deemed to own more affiliate shares at the particular time than immediately before it.For the purposes of subsection (2),if a partnership of which a person is a member at any time does not own, and (but for this subsection) is not deemed by subsection (1) to own, any shares of a class of the capital stock of the foreign affiliate at that time, subsection (1) is deemed to have applied in respect of the person and to have deemed the person to own, because of subsection (1) in respect of the partnership, no shares of that class at that time; andif a corporation resident in Canada or a foreign affiliate of such a corporation disposes of or acquires its entire interest in a partnership that, based on the assumptions contained in paragraph 96(1)(c) of the Act, owns shares of a class of the capital stock of a non-resident corporation, the corporation resident in Canada or the foreign affiliate, as the case may be, is deemed at the time that is immediately after the disposition or immediately before the acquisition, as the case may be, to own, because of subsection (1) in respect of the partnership, no shares of that class.For the purposes of subsection 5905(5), if at any time a corporation resident in Canada (referred to in this subsection as the “disposing corporation”) disposes of shares of a class of the capital stock of a foreign affiliate of the disposing corporation and, as a consequence of the same transaction or event (other than one to which neither paragraph (2)(a) nor paragraph (2)(b) applies) that caused the disposition, a taxable Canadian corporation with which the disposing corporation is not, at that time, dealing at arm’s length acquires shares of that class, the disposing corporation is, at that time, deemed to have disposed of, to the taxable Canadian corporation, the number of the shares of that class that is determined by the formulaA × BwhereAis the number of shares of that class disposed of by the disposing corporation; andBisif the taxable Canadian corporation acquires, because of paragraph (2)(b), shares of that class, the fraction determined by the formulaC/DwhereCis the number of shares of that class that is deemed by that paragraph to be acquired by the taxable Canadian corporation as a result of the transaction or event, andDis the total of all amounts each of which is the number of shares of that class that is deemed by that paragraph to be acquired by a person as a result of the transaction or event, andin any other case, one.For the purposes of subsection 5905(5.1), if a predecessor corporation described in that subsection is, at the time that is immediately before the amalgamation described in that subsection, a member of a particular partnership that, based on the assumptions contained in paragraph 96(1)(c) of the Act, owns, at that time, shares of the capital stock of a foreign affiliate of the predecessor corporation and the predecessor corporation’s interest in the particular partnership, or in another partnership that is a member of the particular partnership, becomes, upon the amalgamation, property of the new corporation described in that subsection, the shares of the capital stock of the affiliate that are deemed under subsection (1) to be owned by the predecessor corporation at that time are deemed to become property of the new corporation upon the amalgamation.In applying subsection 5905(5.2), if the corporation is a member of a partnership that, based on the assumptions contained in paragraph 96(1)(c) of the Act, owns shares (referred to individually in paragraph (a) as a “relevant share”) of the affiliate’s capital stock at the particular time,for the purposes of the description of B in subsection 5905(5.2), the corporation’s cost amount of each relevant share at the particular time is to be determined by the formulaP × Q/RwherePis the partnership’s cost amount of that relevant share at the particular time,Qis the number of shares of the capital stock of the affiliate that are deemed by subsection (1), in respect of the partnership, to be owned by the corporation at the particular time, andRis the total number of relevant shares at the particular time; andfor the purposes of paragraph (b) of the description of C in subsection 5905(5.2), the amount determined under this paragraph is the total of all amounts each of which is the amount that would be the corporation’s portion of a gain that would be deemed under subsection 92(5) of the Act to be a gain of the member of the partnership from the disposition of a share of the capital stock of the affiliate by the partnership if that share were disposed of immediately before the particular time.For the purposes of paragraph 5905(5.4)(b), the amount determined by this subsection is the amount determined by the following formula for shares of the capital stock of a foreign affiliate of the subsidiary that were deemed by subsection (1), in respect of the partnership, to be owned by the subsidiary at the time at which the parent last acquired control of the subsidiary:A × BwhereAis the tax-free surplus balance of the affiliate, in respect of the subsidiary, at that time; andBis the percentage that would be the subsidiary’s surplus entitlement percentage in respect of the affiliate at that time if the only shares of that capital stock that were owned at that time by the subsidiary were the shares of that capital stock that were deemed by subsection (1), in respect of the partnership, to be owned by the subsidiary at the time at which the parent last acquired control of the subsidiary.If a particular corporation resident in Canada or a particular foreign affiliate of a particular corporation resident in Canada is a member of a particular partnership, the particular partnership owns (based on the assumptions contained in paragraph 96(1)(c) of the Act) shares of a class of the capital stock of a foreign affiliate of the particular corporation and the particular partnership disposes of any of those shares,any reference in this Part (other than subsections 5902(5) and (6)) to subsection 93(1) of the Act is deemed to include a reference to subsection 93(1.2) of the Act;an election under subsection 93(1.2) of the Act by the particular corporation is to be made by filing the prescribed form with the Minister on or beforewhere the particular corporation is the disposing corporation referred to in that subsection, the particular corporation’s filing-due date for its taxation year that includes the last day of the particular partnership’s fiscal period in which the disposition was made, andwhere the particular affiliate is the disposing corporation referred to in that subsection, the particular corporation’s filing-due date for its taxation year that includes the last day of the particular affiliate’s taxation year that includes the last day of the disposing partnership’s fiscal period in which the disposition was made; andthe prescribed amount for the purposes of subparagraph 93(1.2)(a)(ii) of the Act is the lesser ofthe taxable capital gain, if any, of the particular affiliate otherwise determined in respect of the disposition, andthe amount determined by the formulaA × B × C/DwhereAis the fraction referred to in paragraph 38(a) of the Act that applies to the particular affiliate’s taxation year that includes the last day of the particular partnership’s fiscal period that includes the time of the disposition,Bis the amount that could reasonably be expected to have been received in respect of all the shares of that class if the second foreign affiliate referred to in subsection 93(1.2) of the Act had, immediately before that time, paid dividends, on all shares of its capital stock, the total of which was equal to the amount determined under subparagraph 5902(1)(a)(i) to be its net surplus in respect of the particular corporation,Cis the number of shares of that class that is determined under subsection 93(1.3) of the Act, andDis the total number of issued shares of that class immediately before that time.For the purposes of this Part, except to the extent that the context otherwise requires, if a person or partnership is (or is deemed by this subsection to be) a member of a particular partnership that is a member of another partnership, the person or partnership is deemed to be a member of the other partnership.For the purposes of paragraph 95(2)(j) of the Act, the adjusted cost base to a foreign affiliate of a taxpayer of an interest in a partnership at any time is prescribed to be the cost to the affiliate of the interest as otherwise determined at that time, and for those purposesthere shall be added to that cost such of the following amounts as are applicable:any amount included in the affiliate’s earnings for a taxation year ending after 1971 and before that time that may reasonably be considered to relate to profits of the partnership,the affiliate’s incomes as described by the description of A in the definition foreign accrual property income in subsection 95(1) of the Act for a taxation year ending after 1971 and before that time that can reasonably be considered to relate to profits of the partnership,any amount included in computing the exempt earnings or taxable earnings, as the case may be, of the affiliate for a taxation year ending after 1971 and before that time that may reasonably be considered to relate to a capital gain of the partnership,any amount included in computing the hybrid surplus or hybrid deficit of the affiliate before that time that may reasonably be considered to relate to a capital gain of the partnership,where the affiliate has, at any time before that time and in a taxation year ending after 1971, made a contribution of capital to the partnership otherwise than by way of a loan, such part of the amount of the contribution as cannot reasonably be regarded as a gift made to or for the benefit of any other member of the partnership who was related to the affiliate,such portion of any income or profits tax refunded before that time by the government of a country to the partnership as may reasonably be regarded as tax refunded in respect of an amount described in any of subparagraphs (b)(i) to (iii), andthe amount, if any, determined under paragraph (11)(b);there shall be deducted from that cost such of the following amounts as are applicable:any amount included in the affiliate’s loss for a taxation year ending after 1971 that may reasonably be considered to relate to a loss of the partnership,the affiliate’s losses as described by the description of D in the definition foreign accrual property income in subsection 95(1) of the Act for a taxation year ending after 1971 and before that time that can reasonably be considered to relate to the losses of the partnership,any amount included in computing the exempt loss or taxable loss, as the case may be, of the affiliate for a taxation year ending after 1971 and before that time that may reasonably be considered to relate to a capital loss of the partnership,any amount included in computing the hybrid surplus or hybrid deficit of the affiliate before that time that may reasonably be considered to relate to a capital loss of the partnership,any amount received by the affiliate before that time and in a taxation year ending after 1971 as, on account or in lieu of payment of, or in satisfaction of, a distribution of the affiliate’s share of the partnership profits or partnership capital, andsuch portion of any income or profits tax paid before that time to the government of a country by the partnership as may reasonably be regarded as tax paid in respect of an amount described in any of subparagraphs (a)(i) to (iii); andfor greater certainty, where any interest of a foreign affiliate in a partnership was reacquired by the affiliate after having been previously disposed of, no adjustment that was required to be made under this subsection before such reacquisition shall be made under this subsection to the cost to the affiliate of the interest as reacquired property of the affiliate.If at any time a partnership owns, based on the assumptions contained in paragraph 96(1)(c) of the Act, a share of the capital stock of a particular foreign affiliate of a corporation resident in Canada and one or more members of the partnership is at that time a direct holder referred to in paragraph 5905(7.6)(a) or a subordinate affiliate referred to in paragraph 5905(7.6)(b), the following rules apply:for the purposes of paragraph 92(1.1)(b) of the Act, there is to be added, in computing at or after that time the partnership’s adjusted cost base of the share, the total of all amounts each of which is the amount determined, in respect of an acquired affiliate referred to in subsection 5905(7.6), by the formulaA × BwhereAis the amount, if any, determined under paragraph 5905(7.2)(a) in respect of the acquired affiliate, andBis the percentage that would, if the partnership were a corporation resident in Canada, be the partnership’s surplus entitlement percentage in respect of the acquired affiliate, at the adjustment time, if the partnership owned only the share;for the purposes of subparagraph (10)(a)(vi), the amount determined under this paragraph, in respect of the interest in the partnership of the direct holder or the subordinate affiliate, is the amount determined by the formulaA × B/CwhereAis the total of all amounts each of which is the amount, if any, determined under paragraph (a) in respect of a share of the capital stock of the particular affiliate,Bis the fair market value, at the adjustment time, of the interest in the partnership of the direct holder or the subordinate affiliate, as the case may be, andCis the fair market value, at the adjustment time, of all members’ interests in the partnership; andno amount is to be added under subsection 5905(7.6) to the direct holder’s or the subordinate affiliate’s adjusted cost base of the share.For the purposes of paragraph 5905(7.7)(b), the amount determined under this subsection is the amount determined by the formulaA × B/CwhereAis the adjustment amount;Bis the fair market value, at the adjustment time, of the interest in the partnership that is referred to in paragraph 92(1.1)(b) of the Act of the particular foreign affiliate that is referred to in paragraph 93(3)(c) of the Act; andCis the fair market value, at the adjustment time, of all members’ interests in the partnership.For the purposes of clauses 5907(2.9)(a)(i)(B) and (ii)(B), the amount determined under this subsection is, subject to subsection (14), the amount determined by the formulaA × B/CwhereAisif clause 5907(2.9)(a)(i)(B) applies, the amount determined under clause 5907(2.9)(a)(i)(A), andif clause 5907(2.9)(a)(ii)(B) applies, the amount determined under clause 5907(2.9)(a)(ii)(A),Bis the affiliate’s direct or indirect share of the partnership’s income or loss for the preceding taxation year, andCis the partnership’s income or loss for the preceding taxation year.For the purposes of subsection (13), if both the income and loss of the partnership for the preceding taxation year are nil, the descriptions of B and C in the formula in that subsection are to be applied as if the partnership had income for that year in the amount of $1,000,000.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-505, s. 9; 2013, c. 34, ss. 47, 86
[Repealed, 2013, c. 34, s. 28][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-135, s. 4; 2013, c. 34, s. 28
If a foreign affiliate of a corporation resident in Canada carries on in a particular taxation year an active business that is a foreign oil and gas business in a taxing country, the affiliate is deemed for the purposes of this Part to have paid for the particular year, as an income or profits tax to the government of the taxing country in respect of its earnings from the business for the particular year, an amount equal to the lesser ofthe amount, if any, determined by the formula(A × B) – CwhereAis the percentage determined under subsection (2) for the particular year,Bis the affiliate’s earnings from the business for the particular year, andCis the total of all amounts each of which is an amount that would, but for this subsection, be an income or profits tax paid to the government of the taxing country by the affiliate for the particular year in respect of its earnings from the business for the particular year; andthe affiliate’s production tax amount for the business in the taxing country for the particular year.The percentage determined under this subsection for the particular year is the percentage determined by the formulaP – QwherePis the percentage set out in paragraph 123(1)(a) of the Act for the corporation’s taxation year that includes the last day of the particular year; andQis the corporation’s general rate reduction percentage (within the meaning assigned by subsection 123.4(1) of the Act) for that taxation year of the corporation.[Repealed, 2013, c. 34, s. 87]In this section, foreign oil and gas business, production tax amount and taxing country have the meanings assigned by subsection 126(7) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, ss. 48, 87
A listed election is to be made by the taxpayer and, if applicable, the disposing affiliate by so notifying the Minister in writing on or beforeif the taxpayer is a partnership, the earliest of the filing-due dates of any member of the partnership for the member’s taxation year that includes the last day of the partnership’s fiscal period that includes the last day of the foreign affiliate’s taxation year that includes the time of distribution of a distributed property; andin any other case, the taxpayer’s filing-due date for its taxation year that includes the last day of the foreign affiliate’s taxation year that includes the time of distribution of a distributed property.For the purposes of subsection (1), a listed election is any of the following:an election by the taxpayer under subsection 88(3.1) of the Act in respect of a liquidation and dissolution of a disposing affiliate;an election by the taxpayer under subsection 88(3.3) of the Act in respect of a distribution of distributed property; anda joint election by the taxpayer and a disposing affiliate under subsection 88(3.5) of the Act in respect of a distribution of distributed property.Subsection (4) applies ifa taxpayer has made an election (referred to in this subsection and subsection (4) as the “initial election”) under subsection 88(3.3) of the Act in respect of a distribution of distributed property on or before the filing-due date specified in subsection (1);the taxpayer made reasonable efforts to determine all amounts, in respect of the disposing affiliate, that may reasonably be considered to be relevant in making the claim under the initial election; andthe taxpayer amends the initial election on or before the day that is 10 years after the filing-due date referred to in paragraph (a).If this subsection applies and, in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the initial election to be amended, the amended election under paragraph (3)(c) is deemed to have been made on the day on which the initial election was made and the initial election is deemed not to have been made.An election under the definition relevant cost base in subsection 95(4) of the Act in respect of a property of a foreign affiliate of a taxpayer, in respect of the taxpayer, is to be made by the taxpayer by so notifying the Minister in writing on or beforeif the taxpayer is a partnership, the earliest of the filing-due dates of any member of the partnership for the member’s taxation year that includes the last day of the partnership’s fiscal period that includes the last day of the foreign affiliate’s taxation year in which the determination of the relevant cost base of the property, in respect of the taxpayer, is relevant; andin any other case, the taxpayer’s filing-due date for its taxation year that includes the last day of the foreign affiliate’s taxation year in which the determination of the relevant cost base of the property, in respect of the taxpayer, is relevant.An election, or joint election, as the case may be, under subsection 90(3) of the Act in respect of a distribution made by a foreign affiliate of a taxpayer is to be made by the taxpayer, or by the taxpayer and each connected person or partnership referred to in that subsection, as the case may be, by so notifying the Minister in writing on or beforein the case of an election by the taxpayer,if the taxpayer is a partnership, the earliest of the filing-due dates of any member of the partnership for the member’s taxation year that includes the last day of the partnership’s fiscal period in which the distribution was made, andin any other case, the taxpayer’s filing-due date for its taxation year that includes the last day of the foreign affiliate’s taxation year in which the distribution was made; andin the case of a joint election, the earliest of the filing-due dates that would be determined under paragraph (a) for each taxpayer that is required to make the joint election if there were no connected persons or partnerships in respect of the taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 88
Prescribed Activities
For the purpose of clause 122.3(1)(b)(i)(C) of the Act, a prescribed activity is an activity performed under contract with the United Nations.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-325, s. 4; SOR/94-686, s. 81(F); SOR/95-498, s. 1
Related Segregated Fund Trusts
An election under subsection 138.1(4) of the Act by the trustee of a related segregated fund trust shall be made by filing with the Minister the prescribed form within 90 days from the end of the taxation year of the trust in respect of any capital property deemed to have been disposed of in that taxation year by virtue of the election.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-680, s. 1; SOR/94-686, s. 69(F)
Prescribed Securities, Shares and Debt Obligations[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-187, s. 5Prescribed Securities[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-130, s. 1
For the purposes of subsection 39(6) of the Act, a prescribed security is, with respect to the taxpayer referred to in subsection 39(4) of the Act,a share of the capital stock of a corporation, other than a public corporation, the value of which is, at the time it is disposed of by that taxpayer, a value that is or may reasonably be considered to be wholly or primarily attributable toreal property, an interest therein or an option in respect thereof,Canadian resource property or a property that would have been a Canadian resource property if it had been acquired after 1971,foreign resource property or a property that would have been a foreign resource property if it had been acquired after 1971, orany combination of properties described in subparagraphs (i) to (iii)owned bythe corporation,a person other than the corporation, ora partnership;a bond, debenture, bill, note, mortgage or similar obligation, issued by a corporation, other than a public corporation, if at any time before that taxpayer disposes of the security he does not deal at arm’s length with the corporation;a security that isa share, ora bond, debenture, bill, note, mortgage or similar obligationthat was acquired by the taxpayer from a person with whom the taxpayer does not deal at arm’s length (other than from a person subject to subsection 39(4) of the Act for the person’s taxation year that includes the time of the acquisition);a security described in subparagraph (c)(i) or (ii) that was acquired by the taxpayer from a person (other than from a person subject to subsection 39(4) of the Act for the person’s taxation year that includes the time of the acquisition) in circumstances to which subsection 85(1) or (2) of the Act applied;a share acquired by that taxpayer under circumstances referred to in section 66.3 of the Act; ora security described in subparagraph (c)(i) or (ii) that was acquired by the taxpayeras proceeds of disposition for a security of the taxpayer to which paragraph (a), (b), (c) or (d) applied in respect of the taxpayer, oras a result of one or more transactions that can reasonably be considered to have been an exchange or substitution of a security of the taxpayer to which paragraph (a), (b), (c) or (d) applied in respect of the taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-946, s. 1; SOR/81-724, s. 1; SOR/94-686, ss. 62, 78(F), 79(F); SOR/98-418, s. 1
Prescribed Shares
For the purposes of paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share last acquired before June 29, 1982 and of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share unless more than 10 per cent of the issued and outstanding shares of that class are owned bythe owner of that share; orthe owner of that share and persons related to him.For the purposes of paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share acquired after June 28, 1982 and of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that receives a dividend at the particular time in respect of the share unlesswhere the other corporation is a restricted financial institution,the share is not a taxable preferred share,dividends (other than dividends received on shares prescribed under subsection (5)) are received at the particular time by the other corporation or by the other corporation and restricted financial institutions with which the other corporation does not deal at arm’s length, in respect of more than 5 per cent of the issued and outstanding shares of that class, anda dividend is received at the particular time by the other corporation or a restricted financial institution with which the other corporation does not deal at arm’s length, in respect of a share (other than a share prescribed under subsection (5)) of that class acquired after December 15, 1987 and before the particular time;where the other corporation is a restricted financial institution, the shareis not a taxable preferred share,was acquired after December 15, 1987 and before the particular time, andwas, by reason of subparagraph (h)(i), (ii), (iii) or (v) of the definition term preferred share in subsection 248(1) of the Act, deemed to have been issued after December 15, 1987 and before the particular time; orin any case, dividends (other than dividends received on shares prescribed under subsection (5)) are received at the particular time by the other corporation or by the other corporation and persons with whom the other corporation does not deal at arm’s length in respect of more than 10 per cent of the issued and outstanding shares of that class.For the purposes of paragraph 112(2.2)(g) of the Act and paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share of any of the following series of preferred shares of the capital stock of Massey-Ferguson Limited issued after July 15, 1981 and before March 23, 1982 is a prescribed share:$25 Cumulative Redeemable Retractable Convertible Preferred Shares, Series C;$25 Cumulative Redeemable Retractable Preferred Shares, Series D; or$25 Cumulative Redeemable Retractable Convertible Preferred Shares, Series E.For the purposes of the definition taxable RFI share in subsection 248(1) of the Act, a share of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that is a restricted financial institution that receives a dividend at the particular time in respect of the share unless dividends (other than dividends received on shares prescribed under subsection (5.1)) are received at that time by the other corporation, or by the other corporation and restricted financial institutions with which the other corporation does not deal at arm’s length, in respect of more than10 per cent of the shares of that class that were issued and outstanding at the last time, before the particular time, at which the other corporation or a restricted financial institution with which the other corporation does not deal at arm’s length acquired a share of that class, where no dividend is received at the particular time by any such corporation in respect of a share (other than a share prescribed under subsection (5.1)) of that class acquired after December 15, 1987 and before the particular time; or5 per cent of the shares of that class that were issued and outstanding at the last time, before the particular time, at which the other corporation or a restricted financial institution with which the other corporation does not deal at arm’s length acquired a share of that class, where a dividend is received at the particular time by any such corporation in respect of a share (other than a share prescribed under subsection (5.1)) of that class acquired after December 15, 1987 and before the particular time.For the purpose of paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that is registered or licensed under the laws of a province to trade in securities and that holds the share for the purpose of sale in the course of the business ordinarily carried on by it unlessit may reasonably be considered that the share was acquired as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.1) of the Act; orthe share was not acquired by the other corporation in the course of an underwriting of shares of that class to be distributed to the public anddividends are received at the particular time by the other corporation or by the other corporation and corporations controlled by the other corporation in respect of more than 10 per cent of the issued and outstanding shares of that class,the other corporation is a restricted financial institution andthe share is not a taxable preferred share,dividends are received at the particular time by the other corporation or by the other corporation and corporations controlled by the other corporation in respect of more than five per cent of the issued and outstanding shares of that class, anda dividend is received at the particular time by the other corporation or a corporation controlled by the other corporation in respect of a share of that class acquired after December 15, 1987 and before the particular time, orthe other corporation is a restricted financial institution and the shareis not a taxable preferred share,was acquired after December 15, 1987 and before the particular time, andwas, by reason of subparagraph (h)(i), (ii), (iii) or (v) of the definition term preferred share in subsection 248(1) of the Act, deemed to have been issued after December 15, 1987 and before the particular time.For the purpose of the definition taxable RFI share in subsection 248(1) of the Act, a share of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that is registered or licensed under the laws of a province to trade in securities and that holds the share for the purpose of sale in the course of the business ordinarily carried on by it unlessit may reasonably be considered that the share was acquired as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of section 187.3 of the Act; orthe share was not acquired by the other corporation in the course of an underwriting of shares of that class to be distributed to the public anddividends are received at the particular time by the other corporation, or by the other corporation and corporations controlled by the other corporation, in respect of more than 10 per cent of the shares of that class issued and outstanding at the last time before the particular time at which any such corporation acquired a share of that class,the other corporation is a restricted financial institution anddividends are received at the particular time by the other corporation, or by the other corporation and corporations controlled by the other corporation, in respect of more than 5 per cent of the shares of that class issued and outstanding at the last time before the particular time at which any such corporation acquired a share of that class, anda dividend is received at the particular time by the other corporation, or a corporation controlled by the other corporation, in respect of a share of that class acquired after December 15, 1987 and before the particular time, orthe other corporation is a restricted financial institution and the sharewas acquired after December 15, 1987 and before the particular time, andwas, because of subparagraph (h)(i), (ii), (iii) or (v) of the definition term preferred share in subsection 248(1) of the Act, deemed to have been issued after December 15, 1987 and before the particular time.For the purposes of paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share of the capital stock of a corporation that is a member institution of a deposit insurance corporation, within the meaning assigned by section 137.1 of the Act, is a prescribed share with respect to the deposit insurance corporation and any subsidiary wholly-owned corporation of the deposit insurance corporation deemed by subsection 137.1(5.1) of the Act to be a deposit insurance corporation.For the purposes of the definition taxable preferred share in subsection 248(1) of the Act, the following shares are prescribed shares at any particular time:the 8.5 per cent Cumulative Redeemable Convertible Class A Preferred Shares of St. Marys Paper Inc. issued on July 7, 1987, where such shares are not deemed, by reason of paragraph (e) of the definition taxable preferred share in subsection 248(1) of the Act, to have been issued after that date and before the particular time; andthe Cumulative Redeemable Preferred Shares of CanUtilities Holdings Ltd. issued before July 1, 1991, unless the amount of the consideration for which all such shares were issued exceeds $300,000,000 or the particular time is after July 1, 2001.For the purposes of paragraph 112(2.2)(d) of the Act, paragraph (i) of the definition short-term preferred share, the definition taxable preferred share in paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, the Exchangeable Preference Shares of Canada Cement Lafarge Ltd. (in this subsection referred to as the “subject shares”), the Exchangeable Preference Shares of Lafarge Canada Inc. and the shares of any corporation formed as a result of an amalgamation or merger of Lafarge Canada Inc. with one or more other corporations are prescribed shares at any particular time where the terms and conditions of such shares at the particular time are the same as, or substantially the same as, the terms and conditions of the subject shares as of June 18, 1987 and, for the purposes of this subsection, the amalgamation or merger of one or more corporations with another corporation formed as a result of an amalgamation or merger of Lafarge Canada Inc. with one or more other corporations shall be deemed to be an amalgamation of Lafarge Canada Inc. with another corporation.For the purposes of determining under subsections (2), (4), (5) and (5.1) the time at which a share of a class of the capital stock of a corporation was acquired by a taxpayer, shares of that class acquired by the taxpayer at any particular time before a disposition by the taxpayer of shares of that class shall be deemed to have been disposed of before shares of that class acquired by the taxpayer before that particular time.For the purposes of subsections (2), (4), (5) and (5.1) and this subsection,where a taxpayer is a beneficiary of a trust and an amount in respect of the beneficiary has been designated by the trust in a taxation year pursuant to subsection 104(19) of the Act, the taxpayer shall be deemed to have received the amount so designated at the time it was received by the trust; andwhere a taxpayer is a member of a partnership and a dividend has been received by the partnership, the taxpayer’s share of the dividend shall be deemed to have been received by the taxpayer at the time the dividend was received by the partnership.For the purposes of subsections (2), (4), (5) and (5.1),a share of the capital stock of a corporation acquired by a person after December 15, 1987 pursuant to an agreement in writing entered into before December 16, 1987 shall be deemed to have been acquired by that person before December 16, 1987;a share of the capital stock of a corporation acquired by a person after December 15, 1987 and before July, 1988 as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice filed before December 16, 1987 with a public authority pursuant to and in accordance with the securities legislation of the jurisdiction in which the shares were distributed shall be deemed to have been acquired by that person before December 16, 1987;where a share that was owned by a particular restricted financial institution on December 15, 1987 has, by one or more transactions between related restricted financial institutions, been transferred to another restricted financial institution, the share shall be deemed to have been acquired by the other restricted financial institution before that date and after June 28, 1982 unless at any particular time after December 15, 1987 and before the share was transferred to the other restricted financial institution the share was owned by a shareholder who, at that particular time, was a person other than a restricted financial institution related to the other restricted financial institution; andwhere at any particular time there has been an amalgamation (within the meaning assigned by section 87 of the Act) andeach of the predecessor corporations (within the meaning assigned by section 87 of the Act) was a restricted financial institution throughout the period beginning December 16, 1987 and ending at the particular time and the predecessor corporations were related to each other throughout that period, oreach of the predecessor corporations and the new corporation (within the meaning assigned by section 87 of the Act) is a corporation described in any of paragraphs (a) to (d) of the definition restricted financial institution in subsection 248(1) of the Act,a share acquired by the new corporation from a predecessor corporation on the amalgamation shall be deemed to have been acquired by the new corporation at the time it was acquired by the predecessor corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-130, s. 2; SOR/84-948, s. 16; SOR/85-963, s. 1; SOR/86-1092, s. 16; SOR/89-409, s. 4; SOR/92-681, s. 3(F); SOR/94-686, ss. 33(F); 78(F), 79(F); SOR/95-357, s. 1; 2007, c. 35, ss. 78, 89
For the purposes of paragraph 66(15)(d.1) and subparagraphs 66.1(6)(a)(v), 66.2(5)(a)(v) and 66.4(5)(a)(iii) of the Act, a share of a class of the capital stock of a corporation (in this section referred to as the “issuing corporation”) is a prescribed share if it was issued after December 31, 1982 andthe issuing corporation, any person related to the issuing corporation or of whom the issuing corporation has effective management or control or any partnership or trust of which the issuing corporation or a person related thereto is a member or beneficiary (each of which is referred to in this section as a “member of the related issuing group”) is or may be required to redeem, acquire or cancel, in whole or in part, the share or to reduce its paid-up capital at any time within five years from the date of its issue,a member of the related issuing group provides or may be required to provide any form of guarantee, security or similar indemnity with respect to the share (other than a guarantee, security or similar indemnity with respect to any amount of assistance or benefit from a government, municipality or other public authority in Canada or with respect to eligibility for such assistance or benefit) that could take effect within five years from the date of its issue,the share (referred to in this section as the “convertible share”) is convertible under its terms or conditions at any time within five years from the date of its issue directly or indirectly into debt, or into a share (referred to in this section as the “acquired share”) that is, or if issued would be, a prescribed share,immediately after the share was issued, the person to whom the share was issued or a person related to the person to whom the share was issued (either alone or together with a related person, a related group of persons of which he is a member or a partnership or trust of which he is a member or beneficiary) controls directly or indirectly, or has an absolute or contingent right to control directly or indirectly or to acquire direct or indirect control of, the issuing corporation and the issuing corporation has the right under the terms and conditions in respect of which the share was issued to redeem, purchase or otherwise acquire the share within five years from the date of its issue,at the time the share was issued, the existence of the issuing corporation was, or there was an arrangement (other than an amalgamation within the meaning assigned by subsection 87(1) of the Act) under which the existence of the issuing corporation could be, limited to a period that ends within five years from the date of its issue, orthe terms or conditions of the share (referred to in this paragraph as the “first share”) or of an agreement in existence at the time of its issue provide that a share (referred to in this section as the “substituted share”) that is, or if issued would be, a prescribed share may be substituted or exchanged for the first share within five years from the date of issue of the first share,but does not include a share of the capital stock of a corporationthat was issued after December 31, 1982 pursuant to an agreement or offering in writing made on or before December 31, 1982 or in accordance with a prospectus, registration statement or similar document that was filed with and, where required by law, accepted for filing by, a public authority in Canada pursuant to and in accordance with the laws of Canada or of any province on or before December 31, 1982,that would be a prescribed share solely by virtue of one or more of the terms or conditions of an agreement if such terms or conditions are not effective or exercisable until the death, disability or bankruptcy of the person to whom the share is issued,that isconvertible under its terms into one or more shares of a class of the capital stock of the corporation for no consideration other than the share or shares,described in paragraph (a) solely becauseit is to be cancelled on the conversion within five years from the date of its issue,its paid-up capital is to be reduced on the conversion within five years from the date of its issue, orboth clauses (A) and (B) apply, andnot described in paragraph (c), orthatmay have a share substituted or exchanged for it pursuant to its terms or the terms or conditions of an agreement in existence at the time of its issue and no consideration is to be received or receivable for it in respect of the substitution or exchange other than the share substituted or exchanged for it,is described in paragraph (a) solely because it is to be redeemed, acquired or cancelled on the substitution or exchange within five years from the date of its issue, andis not a share to which paragraph (f) applies,and for the purposes of this section,where a person has an interest in a trust, whether directly or indirectly, through an interest in any other trust or in any other manner whatever, the person shall be deemed to be a beneficiary of the trust;in determing whether an acquired share would be a prescribed share if issued,the references in paragraphs (a), (b), (d) and (e) to “date of its issue” shall be read as “date of the issue of the convertible share”,the reference in paragraph (f) to “issue of the first share” shall be read as “issue of the convertible share”, andthis section shall be read without reference to paragraph (g) and to the words “after December 31, 1982”;in determining whether a substituted share would be a prescribed share if issued,the references in paragraphs (a) to (e) to “date of its issue” shall be read as “date of the issue of the first share”, andthis section shall be read without reference to paragraph (g) and to the words “after December 31, 1982”;an excluded obligation in relation to a share of a class of the capital stock of the issuing corporation and an obligation that would be an excluded obligation in relation to the share if the share had been issued after June 17, 1987, shall be deemed not to be a guarantee, security or similar indemnity with respect to the share for the purposes of paragraph (b);a guarantee, security or similar indemnity referred to in paragraph (b) shall, for greater certainty, not be considered to take effect within five years from the date of issue of a share if the effect of the guarantee, security or indemnity is to provide that a member of the related issuing group will be able to redeem, acquire or cancel the share at a time that is not within five years from the date of issue of the share; andwhere an expense is incurred partly in consideration for shares (referred to in this section as “first corporation shares”) of the capital stock of one corporation and partly in consideration for an interest in, or right to, shares (referred to in this paragraph as “second corporation shares”) of the capital stock of another corporation, in determining whether the second corporation shares are prescribed shares, the references in paragraphs (a), (d) and (e) to “date of its issue” shall be read as “date of the issue of the first corporation shares”.For the purposes of paragraph 66(15)(d.1) of the Act, subsection (1) does not apply in respect of a share of the capital stock of an issuing corporation that is a new share.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-174, s. 16; SOR/90-86, s. 1; SOR/92-681, s. 3(F); SOR/94-686, ss. 34(F), 79(F)
For the purposes of the definition flow-through share in subsection 66(15) of the Act, a new share of the capital stock of a corporation is a prescribed share if, at the time it is issued,under the terms or conditions of the share or any agreement in respect of the share or its issue,the amount of the dividends that may be declared or paid on the share (in this section referred to as the “dividend entitlement”) may reasonably be considered to be, by way of a formula or otherwise,fixed,limited to a maximum, orestablished to be not less than a minimum (including any amount determined on a cumulative basis), where with respect to the dividends that may be declared or paid on the share there is a preference over any other dividends that may be declared or paid on any other share of the capital stock of the corporation,the amount that the holder of the share is entitled to receive in respect of the share on the dissolution, liquidation or winding-up of the corporation, on a reduction of the paid-up capital of the share or on the redemption, acquisition or cancellation of the share by the corporation or by specified persons in relation to the corporation (in this section referred to as the “liquidation entitlement”) may reasonably be considered to be, by way of a formula or otherwise, fixed, limited to a maximum or established to be not less than a minimum,the share is convertible or exchangeable into another security issued by the corporation unlessit is convertible or exchangeable only intoanother share of the corporation that, if issued, would not be a prescribed share,a right (including a right conferred by a warrant) thatif it were issued, would not be a prescribed right, andif it were exercised, would allow the person exercising it to acquire only a share of the corporation that, if the share were issued, would not be a prescribed share, orboth a share described in subclause (I) and a right described in subclause (II), andall the consideration receivable by the holder on the conversion or exchange of the share is the share described in subclause (A)(I) or the right described in subclause (A)(II), or both, as the case may be, orthe corporation has, either absolutely or contingently, an obligation to reduce, or any person or partnership has, either absolutely or contingently, an obligation to cause the corporation to reduce, the paid-up capital in respect of the share (other than pursuant to a conversion or exchange of the share, where the right to so convert or exchange does not cause the share to be a prescribed share under subparagraph (iii));any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share)to provide assistance,to make a loan or payment,to transfer property, orotherwise to confer a benefit by any means whatever, including the payment of a dividend,either immediately or in the future, that may reasonably be considered to be, directly or indirectly, a repayment or return by the corporation or a specified person in relation to the corporation of all or part of the consideration for which the share was issued or for which a partnership interest was issued in a partnership that acquires the share;any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share) to effect any undertaking, either immediately or in the future, with respect to the share or the agreement under which the share is issued (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the share or, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members of the partnership, as the case may be) that may reasonably be considered to have been given to ensure, directly or indirectly, thatany loss that the holder of the share and, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members of the partnership, as the case may be, may sustain by reason of the holding, ownership or disposition of the share or any other property is limited in any respect, orthe holder of the share and, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members of the partnership, as the case may be, will derive earnings by reason of the holding, ownership or disposition of the share or any other property;the corporation or a specified person in relation to the corporation may reasonably be expectedto acquire or cancel the share in whole or in part otherwise than on a conversion or exchange of the share that meets the conditions set out in clauses (a)(iii)(A) and (B),to reduce the paid-up capital of the corporation in respect of the share otherwise than on a conversion or exchange of the share that meets the conditions set out in clauses (a)(iii)(A) and (B), orto make a payment, transfer or other provision, (otherwise than pursuant to an excluded obligation in relation to the share), directly or indirectly, by way of a dividend, loan, purchase of shares, financial assistance to any purchaser of the share or, where the purchaser is a partnership, the members thereof or in any other manner whatever, that may reasonably be considered to be a repayment or return of all or part of the consideration for which the share was issued or for which a partnership interest was issued in a partnership that acquires the share,within 5 years after the date the share is issued, otherwise than as a consequence of an amalgamation of a subsidiary wholly-owned corporation, a winding-up of a subsidiary wholly-owned corporation to which subsection 88(1) of the Act applies or the payment of a dividend by a subsidiary wholly-owned corporation to its parent;any person or partnership can reasonably be expected to effect, within 5 years after the date the share is issued, any undertaking which, if it were in effect at the time the share was issued, would result in the share being a prescribed share by reason of paragraph (c); orit may reasonably be expected that, within five years after the date the share is issued,any of the terms or conditions of the share or any existing agreement relating to the share or its issue will thereafter be modified, orany new agreement relating to the share or its issue will be entered into,in such a manner that the share would be a prescribed share if it had been issued at the time of the modification or at the time when the new agreement is entered into.For the purpose of the definition flow-through share in subsection 66(15) of the Act, a new right to acquire a share of the capital stock of a corporation is a prescribed right if, at the time the right is issued,the amount that the holder of the right is entitled to receive in respect of the right on the dissolution, liquidation or winding-up of the corporation or on the redemption, acquisition or cancellation of the right by the corporation or by specified persons in relation to the corporation (referred to in this section as the “liquidation entitlement” of the right) can reasonably be considered to be, by way of a formula or otherwise, fixed, limited to a maximum or established to be not less than a minimum;the right is convertible or exchangeable into another security issued by the corporation unlessthe right is convertible or exchangeable only intoa share of the corporation that, if issued, would not be a prescribed share,another right (including a right conferred by a warrant) thatif it were issued, would not be a prescribed right, andif it were exercised, would allow the person exercising it to acquire only a share of the corporation that, if the share were issued, would not be a prescribed share, orboth a share described in clause (A) and a right described in clause (B), andall the consideration receivable by the holder on the conversion or exchange of the right is the share described in clause (A) or the right described in clause (B), or both, as the case may be;any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the right)to provide assistance,to make a loan or payment,to transfer property, orto otherwise confer a benefit by any means whatever, including the payment of a dividend,either immediately or in the future, that can reasonably be considered to be, directly or indirectly, a repayment or return by the corporation or a specified person in relation to the corporation of all or part of the consideration for which the right was issued or for which a partnership interest was issued in a partnership that acquires the right;any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the right) to effect any undertaking, either immediately or in the future, with respect to the right or the agreement under which the right is issued (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the right or where the holder is a partnership, the members of the partnership or specified persons in relation to the holder or the members of the partnership, as the case may be) that can reasonably be considered to have been given to ensure, directly or indirectly, thatany loss that the holder of the right and, where the holder is a partnership, the members of the partnership or specified persons in relation to the holder or the members of the partnership, as the case may be, may sustain because of the holding, ownership or disposition of the right or any other property is limited in any respect, orthe holder of the right and, where the holder is a partnership, the members of the partnership or specified persons in relation to the holder or the members of the partnership, as the case may be, will derive earnings, because of the holding, ownership or disposition of the right or any other property;the corporation or a specified person in relation to the corporation can reasonably be expectedto acquire or cancel the right in whole or in part otherwise than on a conversion or exchange of the right that meets the conditions set out in subparagraphs (b)(i) and (ii), orto make a payment, transfer or other provision (otherwise than pursuant to an excluded obligation in relation to the right), directly or indirectly, by way of a dividend, loan, purchase of rights, financial assistance to any purchaser of the right or, where the purchaser is a partnership, the members of the partnership or in any other manner whatever, that can reasonably be considered to be a repayment or return of all or part of the consideration for which the right was issued or for which a partnership interest was issued in a partnership that acquires the right,within five years after the date the right is issued, otherwise than as a consequence of an amalgamation of a subsidiary wholly-owned corporation, a winding-up of a subsidiary wholly-owned corporation to which subsection 88(1) of the Act applies or the payment of a dividend by a subsidiary wholly-owned corporation to its parent;any person or partnership can reasonably be expected to effect, within five years after the day the right is issued, any undertaking which, if it were in effect at the time the right was issued, would result in the right being a prescribed right because of paragraph (d);it can reasonably be expected that, within five years after the date the right is issued,any of the terms or conditions of the right or any existing agreement relating to the right or its issue will be modified in such a manner that the right would be a prescribed right if it had been issued at the time of the modification, orany new agreement relating to the right or its issue will be entered into in such a manner that the right would be a prescribed right if it had been issued at the time the new agreement is entered into; orit can reasonably be expected that the right, if exercised, would allow the person exercising the right to acquire a share in a corporation that, if that share were issued, would be a prescribed share within five years after the day the right was issued.For the purposes of the definition flow-through share in subsection 66(15) of the Act, a new share of the capital stock of a corporation is a prescribed share ifthe consideration for which the share is to be issued is to be determined more than 60 days after entering into the agreement pursuant to which the share is to be issued;the corporation or a specified person in relation to the corporation, directly or indirectly,provided assistance,made or arranged for a loan or payment,transferred property, orotherwise conferred a benefit by any means whatever, including the payment of a dividend,for the purpose of assisting any person or partnership in acquiring the share or any person or partnership in acquiring an interest in a partnership acquiring the share (otherwise than by reason of an excluded obligation in relation to the share); orthe holder of the share or, where the holder is a partnership, a member thereof, has a right under any agreement or arrangement entered into under circumstances where it is reasonable to consider that the agreement or arrangement was contemplated at or before the time when the agreement to issue the share was entered into,to dispose of the share, andthrough a transaction or event or a series of transactions or events contemplated by the agreement or arrangement, to acquire a share (referred to in this paragraph as the “acquired share”) of the capital stock of another corporation that would be a prescribed share under subsection (1) if the acquired share were issued at the time the share was issued, other than a share that would not be a prescribed share if subsection (1) were read without reference to subparagraphs (a)(iv) and (d)(i) and (ii) thereof where the acquired share is a shareof a mutual fund corporation, orof a corporation that becomes a mutual fund corporation within 90 days after the acquisition of the acquired share.For the purpose of the definition flow-through share in subsection 66(15) of the Act, a new right is a prescribed right ifthe consideration for which the new right is to be issued is to be determined more than 60 days after entering into the agreement pursuant to which the new right is to be issued;the corporation or a specified person in relation to the corporation, directly or indirectly, for the purpose of assisting any person or partnership to acquire the new right or any person or partnership to acquire an interest in a partnership acquiring the new right (otherwise than because of an excluded obligation in relation to the new right),provided assistance,made or arranged for a loan or payment,transferred property, orotherwise conferred a benefit by any means whatever, including the payment of a dividend; orthe holder of the new right or, where the holder is a partnership, a member of the partnership, has a right under any agreement or arrangement entered into under circumstances where it is reasonable to consider that the agreement or arrangement was contemplated at or before the time the agreement to issue the new right was entered into,to dispose of the new right, andthrough a transaction or event or a series of transactions or events contemplated by the agreement or arrangement, to acquirea share (referred to in this paragraph as the “acquired share”) of the capital stock of another corporation that would be a prescribed share under subsection (1) if the acquired share were issued at the time the new right was issued, other than a share that would not be a prescribed share if subsection (1) were read without reference to subparagraphs (1)(a)(iv) and (1)(d)(i) and (ii) where the acquired share is a shareof a mutual fund corporation, orof a corporation that becomes a mutual fund corporation within 90 days after the acquisition of the acquired share, ora right (referred to in this paragraph as the “acquired right”) to acquire a share of the capital stock of another corporation that would, if it were issued at the time the new right was issued, be a prescribed right, other than a right that would not be a prescribed right if subsection (1.1) were read without reference to subparagraph (1.1)(e)(i) where the acquired right is a right to acquire a share of the capital stockof a mutual fund corporation, orof a corporation that becomes a mutual fund corporation within 90 days after the acquisition of the acquired right.For the purposes of subsections (1) and (1.1),the dividend entitlement of a share of the capital stock of a corporation is deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all dividends on the share are determined solely by reference to a multiple or fraction of the dividend entitlement of another share of the capital stock of the corporation, or of another corporation that controls the corporation, where the dividend entitlement of that other share is not described in subparagraph (1)(a)(i); andthe liquidation entitlement of a share of the capital stock of a corporation, or of a right to acquire a share of the capital stock of the corporation, as the case may be, is deemed not to be fixed, limited to a maximum or established to be not less than a minimum whereall the liquidation entitlement is determinable solely by reference tothe liquidation entitlement of another share of the capital stock of the corporation (or a share of the capital stock of another corporation that controls the corporation), orthe liquidation entitlement of a right to acquire the capital stock of the corporation (or another corporation that controls the corporation),the liquidation entitlement described in clause (i)(A), if any, is not described in subparagraph (1)(a)(ii), andthe liquidation entitlement described in clause (i)(B), if any, is not described in paragraph (1.1)(a).For the purposes of paragraphs (1)(c) and (e) and (1.1)(d) and (f), an agreement entered into between the first holder of a share or right and another person or partnership for the sale of the share or right to that other person or partnership for its fair market value at the time the share or right is acquired by the other person or partnership (determined without regard to the agreement) is deemed not to be an undertaking with respect to the share or right, as the case may be.For the purposes of section 6202 and this section,excluded obligation, in relation to a share or new right issued by a corporation, meansan obligation of the corporationwith respect to eligibility for, or the amount of, any assistance under the Canadian Exploration and Development Incentive Program Act, the Canadian Exploration Incentive Program Act, the Ontario Mineral Exploration Program Act, R.S.O., c. O.27, or The Mineral Exploration Incentive Program Act, S.M. 1991-92, c. 45, orwith respect to the making of an election respecting such assistance and the flowing out of such assistance to the holder of the share or the new right in accordance with any of those Acts,an obligation of the corporation, in respect of the share or the new right, to distribute an amount that represents a payment out of assistance to which the corporation is entitledas a consequence of the corporation making expenditures funded by consideration received for shares or new rights issued by the corporation in respect of which the corporation purports to renounce an amount under subsection 66(12.6) of the Act, andunder section 25.1 of the Income Tax Act, R.S.B.C., 1996, c. 215, oran obligation of any person or partnership to effect an undertaking to indemnify a holder of the share or the new right or, where the holder is a partnership, a member of the partnership, for an amount not exceeding the amount of any tax payable under the Act or the laws of a province by the holder or the member of the partnership, as the case may be, as a consequence ofthe failure of the corporation to renounce an amount to the holder in respect of the share or the new right, ora reduction, under subsection 66(12.73) of the Act, of an amount purported to be renounced to the holder in respect of the share or the new right; (obligation exclue)new right means a right that is issued after December 20, 2002 to acquire a share of the capital stock of a corporation, other than a right that is issued at a particular time before 2003 pursuant to an agreement in writing made on or before December 20, 2002,as part of a distribution of rights to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the rights begins, filed on or before December 20, 2002 with a public authority in Canada in accordance with the securities legislation of the province in which the rights are distributed, orto a partnership interests in which were issued as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the interests begins, filed on or before December 20, 2002 with a public authority in Canada in accordance with the securities legislation of the province in which the interests are distributed, where all interests in the partnership issued at or before the particular time were issuedas part of the distribution, orbefore the beginning of the distribution; (nouveau droit)new share means a share of the capital stock of a corporation issued after June 17, 1987, other than a share issued at a particular time before 1989pursuant to an agreement in writing entered into before June 18, 1987,as part of a distribution of shares to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the shares begins, filed before June 18, 1987 with a public authority in Canada in accordance with the securities legislation of the province in which the shares were distributed, orto a partnership in which interests were issued as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the interests begins, filed before June 18, 1987 with a public authority in Canada in accordance with the securities legislation of the province in which the interests were distributed, where all interests in the partnership issued at or before the particular time were issued as part of the distribution or prior to the beginning of the distribution; (action nouvelle)specified person, in relation to any particular person, means another person with whom the particular person does not deal at arm’s length or any partnership or trust of which the particular person or the other person is a member or beneficiary, respectively. (personne apparentée)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-86, s. 2; SOR/92-30, s. 1; SOR/92-681, s. 3(F); SOR/94-315, s. 1; SOR/94-686, ss. 67(F); 71(F), 78(F), 79(F); SOR/99-92, s. 3; SOR/2000-297, s. 1; 2013, c. 34, s. 402
For the purposes of subsection 192(6) of the Act, a prescribed share of the capital stock of a taxable Canadian corporation is a share (other than a share acquired by a taxpayer under circumstances referred to in section 66.3 of the Act, a share acquired as consideration for a disposition of property in respect of which an election was made under subsection 85(1) or (2) of the Act and a share that can be considered to have been issued, directly or indirectly, for consideration that includes other shares of the capital stock of the corporation) where, at the time it is issued,under the terms or conditions of the share or any agreement in respect of the share or its issue,the amount of the dividends (in this section referred to as the “dividend entitlement”) that the corporation may declare or pay on the share is not limited to a maximum amount or fixed at a minimum amount at that time or at any time thereafter by way of a formula or otherwise,the amount (in this section referred to as the “liquidation entitlement”) that the holder of the share is entitled to receive on the share on the dissolution, liquidation or winding-up of the corporation is not limited to a maximum amount or fixed at a minimum amount by way of a formula or otherwise,the share cannot be converted into any other security, other than into another security of the corporation that would, if it were issued for consideration that does not include other shares of the capital stock of the corporation, be a prescribed share,the holder of the share cannot at that time or at any time thereafter cause the share to be redeemed, acquired or cancelled by the corporation or any specified person in relation to the corporation, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by subparagraph (iii),no person or partnership has, either absolutely or contingently, an obligation to reduce, or to cause the corporation to reduce, at that time or at any time thereafter, the paid-up capital in respect of the share, except where the reduction is required pursuant to a conversion that is not prohibited by subparagraph (iii),no person or partnership has, either absolutely or contingently, an obligation at that time or at any time thereafter toprovide assistance to acquire the share,make a loan or payment,transfer property, orotherwise confer a benefit by any means whatever, including the payment of a dividend,that may reasonably be considered to be, directly or indirectly, a repayment or return by the corporation or a specified person in relation to the corporation of all or part of the consideration for which the share was issued,neither the corporation nor any specified person in relation to the corporation has, either absolutely or contingently, the right or obligation to redeem, acquire or cancel, at that time or at any time thereafter, the share in whole or in part other than for an amount that approximates the fair market value of the share (determined without reference to any such right or obligation), andno person or partnership has, either absolutely or contingently, an obligation to provide, at that time or at any time thereafter, any form of undertaking with respect to the share (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the share or any specified person in relation to the holder) that may reasonably be considered to have been given to ensure thatany loss that the holder of the share may sustain by virtue of the holding, ownership or disposition of the share is limited in any respect, orthe holder of the share will derive earnings by virtue of the holding, ownership or disposition of the share;the corporation or a specified person in relation to the corporation cannot reasonably be expected to, within two years after the time the share is issued,acquire or cancel the share in whole or in part,reduce the paid-up capital of the corporation in respect of the share, ormake a payment, transfer or other provision, directly or indirectly, by way of a dividend, loan, purchase of shares, financial assistance to any purchaser of the share or in any other manner whatever, that may reasonably be considered to be a repayment or return of all or part of the consideration for which the share was issuedotherwise than as a consequence of the payment of a dividend paid by a subsidiary wholly-owned corporation to its parent, of an amalgamation of a subsidiary wholly-owned corporation or of a winding-up to which subsection 88(1) of the Act applies;no person or partnership can reasonably be expected to provide, within two years after the time the share is issued, any form of undertaking with respect to the share (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to, or the placing of amounts on deposit with, or on behalf of, the holder of the share or any specified person in relation to the holder); andit cannot reasonably be expected that any of the terms or conditions of the share or any existing agreement in respect of the share or its issue will thereafter be modified or amended, or that any new agreement in respect of the share or its issue will be entered into, within two years after the time the share is issued, in such a manner that the share would not be a prescribed share if it had been issued at the time of such modification or amendment or at the time the new agreement is entered into.For the purposes of subsection (1),the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the dividend entitlement is determinable by reference to the dividend entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(i);the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the liquidation entitlement is determinable by reference to the liquidation entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(ii);where a corporation has merged or amalgamated with one or more other corporations, the corporation formed as a result of the merger or amalgamation shall be deemed to be the same corporation as, and a continuation of, each of its predecessor corporations and a share issued on the merger or amalgamation as consideration for another share shall be deemed to be the same share as the share for which it was issued but this paragraph does not apply if the share issued on the merger or amalgamation is not a prescribed share at the time of its issue; andan agreement entered into between the first purchaser of a share and another person or partnership, other than a specified person in relation to the corporation issuing the share, for the sale of the share to that other person or partnership shall be deemed not to be an undertaking with respect to the share.For the purposes of subsections (1) and (2), specified person, in relation to a corporation or a holder of a share, as the case may be (in this subsection referred to as the “taxpayer”), means any person or partnership with whom the taxpayer does not deal at arm’s length or any partnership or trust of which the taxpayer (or a person or partnership with whom the taxpayer does not deal at arm’s length) is a member or beneficiary, respectively.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 8; SOR/94-686, ss. 67(F), 78(F), 79(F)
For the purposes of subparagraph 110(1)(d)(i.1) of the Act, a share is a prescribed share of the capital stock of a corporation at the time of its sale or issue, as the case may be, if, at that time,under the terms or conditions of the share or any agreement in respect of the share or its issue,the amount of the dividends (in this section referred to as the “dividend entitlement”) that the corporation may declare or pay on the share is not limited to a maximum amount or fixed at a minimum amount at that time or at any time thereafter by way of a formula or otherwise,the amount (in this section referred to as the “liquidation entitlement”) that the holder of the share is entitled to receive on the share on the dissolution, liquidation or winding-up of the corporation is not limited to a maximum amount or fixed at a minimum amount by way of a formula or otherwise,the share cannot be converted into, or exchanged for, any other security, other than into another security of the corporation or of another corporation with which it does not deal at arm’s length immediately after such conversion or exchange that is, or would be at the date of conversion or exchange, a prescribed share,the holder of the share cannot at that time or at any time thereafter cause the share to be redeemed, acquired or cancelled by the corporation or any specified person in relation to the corporation, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by subparagraph (iii),no person or partnership has, either absolutely or contingently, an obligation to reduce, or to cause the corporation to reduce, at that time or at any time thereafter, the paid-up capital in respect of the share, except where the reduction is required pursuant to a conversion that is not prohibited by subparagraph (iii), andneither the corporation nor any specified person in relation to the corporation has, either absolutely or contingently, the right or obligation to redeem, acquire or cancel, at that time or any later time, the share in whole or in part other than for an amount that approximates the fair market value of the share (determined without reference to any such right or obligation) or a lesser amount;the corporation or a specified person in relation to the corporation cannot reasonably be expected to, within two years after the time the share is sold or issued, as the case may be, redeem, acquire or cancel the share in whole or in part, or reduce the paid-up capital of the corporation in respect of the share, otherwise than as a consequence ofan amalgamation of a subsidiary wholly-owned corporation,a winding-up to which subsection 88(1) of the Act applies,a distribution or appropriation to which subsection 84(2) of the Act applies, ora conversion or exchange of the share into another security of the corporation or of another corporation with which it does not deal at arm’s length immediately after the conversion or exchange that is, or would be at the date of the conversion or exchange, a prescribed share; andit cannot reasonably be expected that any of the terms or conditions of the share or any existing agreement in respect of the share or its sale or issue will be modified or amended, or that any new agreement in respect of the share, its sale or issue will be entered into, within two years after the time the share is sold or issued, in such a manner that the share would not be a prescribed share if it had been sold or issued at the time of such modification or amendment or at the time the new agreement is entered into.For the purposes of subsection (1),the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the dividend entitlement is determinable by reference to the dividend entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(i);the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the liquidation entitlement is determinable by reference to the liquidation entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(ii); andthe determination of whether a share of the capital stock of a particular corporation is a prescribed share shall be made without reference to a right or obligation to redeem, acquire or cancel the share, or to cause the share to be redeemed, acquired or cancelled, wherethe person (in this paragraph referred to as the “holder”) to whom the share is sold or issued is, at the time the share is sold or issued, dealing at arm’s length with the particular corporation and with each corporation with which the particular corporation is not dealing at arm’s length,the right or obligation is provided for in the terms or conditions of the share or in an agreement in respect of the share or its issue and, having regard to all the circumstances, it can reasonably be considered thatthe principal purpose of providing for the right or obligation is to protect the holder against any loss in respect of the share, and the amount payable on the redemption, acquisition or cancellation (in this subparagraph and in subparagraph (iii) referred to as the “acquisition”) of the share will not exceed the adjusted cost base of the share to the holder immediately before the acquisition, orthe principal purpose of providing for the right or obligation is to provide the holder with a market for the share, and the amount payable on the acquisition of the share will not exceed the fair market value of the share immediately before the acquisition, andhaving regard to all the circumstances, it can reasonably be considered that no portion of the amount payable on the acquisition of the share is directly determinable by reference to the profits of the particular corporation, or of another corporation with which the particular corporation does not deal at arm’s length, for all or any part of the period during which the holder owns the share or has a right to acquire the share, unless the reference to the profits of the particular corporation or the other corporation is only for the purpose of determining the fair market value of the share pursuant to a formula set out in the terms or conditions of the share or the agreement in respect of the share or its issue, as the case may be.For the purposes of subsection (1), specified person, in relation to a corporation, meansany person or partnership with whom the corporation does not deal at arm’s length otherwise than because of a right referred to in paragraph 251(5)(b) of the Act that arises as a result of an offer by the person or partnership to acquire all or substantially all of the shares of the capital stock of the corporation, orany partnership or trust of which the corporation (or a person or partnership with whom the corporation does not deal at arm’s length) is a member or beneficiary, respectively.For the purposes of subsection (3), the Act shall be read without reference to subsection 256(9) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 8; SOR/94-315, s. 2; SOR/94-686, ss. 78(F), 79(F); SOR/97-409, s. 1; SOR/2003-328, s. 4; SOR/2007-212, s. 4; SOR/2010-93, s. 22; 2017, c. 33, s. 98SOR/2024-231, s. 15
For the purposes of subsections 110.6(8) and (9) of the Act and subject to subsection (3), a prescribed share is a share of the capital stock of a corporation whereunder the terms or conditions of the share or any agreement in respect of the share or its issue,at the time the share is issued,the amount of the dividends (in this section referred to as the “dividend entitlement”) that the corporation may declare or pay on the share is not limited to a maximum amount or fixed at a minimum amount at that time or at any time thereafter by way of a formula or otherwise,the amount (in this section referred to as the “liquidation entitlement”) that the holder of the share is entitled to receive on the share on the dissolution, liquidation or winding-up of the corporation is not limited to a maximum amount or fixed at a minimum amount by way of a formula or otherwise,the share cannot be converted into any other security, other than into another security of the corporation that is, or would be at the date of conversion, a prescribed share,the holder of the share does not, at that time or at any time thereafter, have the right or obligation to cause the share to be redeemed, acquired or cancelled by the corporation or a specified person in relation to the corporation, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by clause (C),no person or partnership has, either absolutely or contingently, an obligation to reduce, or to cause the corporation to reduce, at that time or at any time thereafter, the paid-up capital in respect of the share, otherwise than by way of a redemption, acquisition or cancellation of the share that is not prohibited by this section,no person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share, as defined in subsection 6202.1(5)) at that time or any time thereafter toprovide assistance to acquire the share,make a loan or payment,transfer property, orotherwise confer a benefit by any means whatever, including the payment of a dividend,that may reasonably be considered to be, directly or indirectly, a repayment or return by the corporation or a specified person in relation to the corporation of all or part of the consideration for which the share was issued, andneither the corporation nor any specified person in relation to the corporation has, either absolutely or contingently, the right or obligation to redeem, acquire or cancel, at that time or at any time thereafter, the share in whole or in part, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by clause (C),no person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share, as defined in subsection 6202.1(5)) to provide, at any time, any form of undertaking with respect to the share (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the share or any specified person in relation to that holder) that may reasonably be considered to have been given to ensure thatany loss that the holder of the share may sustain by virtue of the holding, ownership or disposition of the share is limited in any respect, orthe holder of the share will derive earnings by virtue of the holding, ownership or disposition of the share; andat the time the share is issued, it cannot reasonably be expected, having regard to all the circumstances, that any of the terms or conditions of the share or any existing agreement in respect of the share or its issue will thereafter be modified or amended or that any new agreement in respect of the share or its issue will be entered into, in such a manner that the share would not be a prescribed share if it had been issued at the time of such modification or amendment or at the time the new agreement is entered into.For the purposes of subsections 110.6(8) and (9) of the Act and subject to subsection (3), a prescribed share is a share of the capital stock of a particular corporation whereit is a particular share that is owned by a person and that was issued by the particular corporation as part of an arrangement to that person, to a spouse, common-law partner or parent of that person or, if the person is a trust described in paragraph 104(4)(a) of the Act, to the person who created the trust or by whose will the trust was created or, if the person is a corporation, to another person owning all of the issued and outstanding shares of the capital stock of the corporation or to a spouse, common-law partner or parent of that other person, andthe main purpose of the arrangement was to permit any increase in the value of the property of the particular corporation to accrue to other shares that would, at the time of their issue, be prescribed shares if this section were read without reference to this subsection, andat the time of the issue of the particular share or at the end of the arrangement,the other shares were owned bythe person to whom the particular share was issued (in this paragraph referred to as the “original holder”),a person who did not deal at arm’s length with the original holder,a trust none of the beneficiaries of which were persons other than the original holder or a person who did not deal at arm’s length with the original holder, orany combination of persons described in subclause (I), (II) or (III),the other shares were owned by employees of the particular corporation or of a corporation controlled by the particular corporation, orthe other shares were owned by any combination of persons each of whom is described in clause (A) or (B); orit is a share that was issued by a mutual fund corporation.[Repealed, SOR/90-607, s. 1]For the purposes of subsections 110.6(8) and (9) of the Act, a prescribed share does not include a share of the capital stock issued by a mutual fund corporation (other than an investment corporation) the value of which can reasonably be considered to be, directly or indirectly, derived primarily from investments made by the mutual fund corporation in one or more corporations (in this subsection referred to as an “investee corporation”) connected with it (within the meaning of subsection 186(4) of the Act on the assumption that the references in that subsection to “payer corporation” and “particular corporation” were read as references to “investee corporation” and “mutual fund corporation”, respectively).For the purposes of this section,the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered thatall or substantially all of the dividend entitlement is determinable by reference to the dividend entitlement of another share of the capital stock of the corporation that meets the requirements of clause (1)(a)(i)(A), orthe dividend entitlement cannot be such as to impair the ability of the corporation to redeem another share of the capital stock of the corporation that meets the requirements of paragraph (2)(a);the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the liquidation entitlement is determinable by reference to the liquidation entitlement of another share of the capital stock of the corporation that meets the requirements of clause (1)(a)(i)(B);where two or more corporations (each of which is referred to in this paragraph as a “predecessor corporation”) have merged or amalgamated, the corporation formed as a result of the merger or amalgamation (in this paragraph referred to as the “new corporation”) shall be deemed to be the same corporation as, and a continuation of, each of the predecessor corporations and a share of the capital stock of the new corporation issued on the merger or amalgamation as consideration for a share of the capital stock of a predecessor corporation shall be deemed to be the same share as the share of the predecessor corporation for which it was issued, but this paragraph does not apply if the share issued on the merger or amalgamation is not a prescribed share at the time of its issue and eitherthe terms and conditions of that share are not identical to those of the share of the predecessor corporation for which it was issued, orat the time of its issue the fair market value of that share is not the same as that of the share of the predecessor corporation for which it was issued;a reference in clauses (1)(a)(i)(D) and (G) and subparagraph (1)(a)(ii) to a right or obligation of the corporation or a person or partnership does not include a right or obligation provided in a written agreement among shareholders of a private corporation owning more than 50% of its issued and outstanding share capital having full voting rights under all circumstances to which the corporation, person or partnership is a party unless it may reasonably be considered, having regard to all the circumstances, including the terms of the agreement and the number and relationship of the shareholders, that one of the main reasons for the existence of the agreement is to avoid or limit the application of subsection 110.6(8) or (9) of the Act;where at any particular time after November 21, 1985, the terms or conditions of a share are changed or any existing agreement in respect thereof is changed or a new agreement in respect of the share is entered into, the share shall, for the purpose of determining whether it is a prescribed share, be deemed to have been issued at that particular time; andthe determination of whether a share of the capital stock of a corporation is a prescribed share for the purposes of subsection (1) shall be made without reference to a right or obligation to redeem, acquire or cancel the share or to cause the share to be redeemed, acquired or cancelled wherethe share was issued pursuant to an employee share purchase agreement (in this paragraph referred to as “the agreement”) to an employee (in this paragraph referred to as “the holder”) of the corporation or of a corporation with which it did not deal at arm’s length,the holder was dealing at arm’s length with each corporation referred to in subparagraph (i) at the time the share was issued, andhaving regard to all the circumstances including the terms of the agreement, it may reasonably be considered thatthe amount payable on the redemption, acquisition or cancellation (in this clause and in clause (B) referred to as the “acquisition”) of the share will not exceedthe adjusted cost base of the share to the holder immediately before the acquisition, where the acquisition was provided for in the agreement and the principal purpose for its provision was to protect the holder against any loss in respect of the share, orthe fair market value of the share immediately before the acquisition, where the acquisition was provided for in the agreement and the principal purpose for its provision was to provide the holder with a market for the share, andno portion of the amount payable on the acquisition of the share is directly determinable by reference to the profits of the corporation, or of another corporation with which it does not deal at arm’s length, for all or any part of the period during which the holder owned the share or had a right to acquire the share, unless the reference to the profits of the corporation or the other corporation is only for the purpose of determining the fair market value of the share pursuant to a formula set out in the agreement.For the purposes of this section, specified person, in relation to a corporation or a holder of a share, as the case may be (in this subsection referred to as the “taxpayer”), means any person or partnership with whom the taxpayer does not deal at arm’s length or any partnership or trust of which the taxpayer (or a person or partnership with whom the taxpayer does not deal at arm’s length) is a member or beneficiary, respectively.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 8; SOR/90-607, s. 1; SOR/92-30, s. 2; SOR/92-681, s. 3(F); SOR/94-315, s. 3; SOR/94-686, ss. 71(F), 78(F), 79(F); SOR/2001-188, s. 5
The Class I Special Shares of Reed Stenhouse Companies Limited, issued before January 1, 1986, are prescribed for the purposes of subsection 84(8) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 8
For the purposes of paragraph 183.1(4)(c) of the Act (as it read in its application to transactions entered into before September 13, 1988), a share is a prescribed share of the capital stock of an acquiring corporation where, at the time the share is issuedunder the terms or conditions of the share or any agreement in respect of the share or its issue,the amount of the dividends (in this section referred to as the “dividend entitlement”) that the corporation may declare or pay on the share is not limited to a maximum amount or fixed at a minimum amount at that time or at any time thereafter by way of a formula or otherwise,the amount (in this section referred to as the “liquidation entitlement”) that the holder of the share is entitled to receive on the share on the dissolution, liquidation or winding-up of the corporation is not limited to a maximum amount or fixed at a minimum amount by way of a formula or otherwise,the share cannot be converted into any other security, other than into another security of the corporation or of another corporation with which it does not deal at arm’s length that is, or would be at the date of conversion, a prescribed share,the holder of the share does not, at that time or at any time thereafter, have the right or obligation to cause the share to be redeemed, acquired or cancelled by the corporation or any specified person in relation to the corporation, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by subparagraph (iii),no person or partnership has, either absolutely or contingently, an obligation to reduce, or to cause the corporation to reduce, at that time or at any time thereafter, the paid-up capital in respect of the share, otherwise than by way of a redemption, acquisition or cancellation of the share that is not prohibited by this section, andneither the corporation nor any specified person in relation to the corporation has, either absolutely or contingently, the right or obligation to redeem, acquire or cancel, at that time or at any time thereafter, the share in whole or in part, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by subparagraph (iii); andit cannot reasonably be expected, having regard to all the circumstances, that any of the terms or conditions of the share or any existing agreement in respect of the share or its issue will be modified or amended, or that any new agreement in respect of the share or its issue will be entered into, in such a manner that the share would not be a prescribed share if it had been issued at the time of such modification or amendment or at the time the new agreement is entered into.For the purposes of this section,the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all the dividend entitlement is determinable by reference to the dividend entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(i);the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the liquidation entitlement is determinable by reference to the liquidation entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(ii);where at any particular time after June 3, 1987, the terms or conditions of a share are changed or any existing agreement in respect of the share is changed or a new agreement in respect of the share is entered into, the share shall, for the purpose of determining whether it is a prescribed share, be deemed to have been issued at that particular time;the determination of whether a share of the capital stock of a corporation owned by an employee of the corporation or another corporation with which it does not deal at arm’s length is a prescribed share shall be made without reference to a right or obligation with respect to an acquisition of the share, the consideration for which is described in subparagraph 183.1(4)(c)(i) or (ii) of the Act (as those subparagraphs read in their application to transactions entered into before September 13, 1988) where no portion of the amount payable on the acquisition of the share is directly determinable by reference to the profits of the corporation or the other corporation for all or any part of the period during which the employee owned the share or had a right to acquire the share, unless the reference to the profits of the corporation or the other corporation is only for the purpose of determining the fair market value of the share pursuant to a formula set out in the employee share purchase agreement under which the employee acquired the share; anda reference in subparagraphs (1)(a)(iv) and (vi) to a right or obligation of the corporation or a person or partnership does not include a right or obligation provided in a written agreement among shareholders of a private corporation owning more than 50 per cent of its issued and outstanding share capital having full voting rights under all circumstances to which the corporation, person or partnership is a party unless it may reasonably be considered, having regard to all the circumstances including the terms of the agreement and the number and relationship of the shareholders, that one of the main reasons for the existence of the agreement is to avoid or limit the application of subsection 183.1(1) of the Act.For the purposes of subsection (1), specified person in relation to a corporation means any person or partnership with whom the corporation does not deal at arm’s length or any partnership or trust of which the corporation (or a person or partnership with whom the corporation does not deal at arm’s length) is a member or beneficiary, respectively.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-607, s. 2; SOR/92-681, s. 3; SOR/94-686, ss. 78(F), 79(F)
For the purposes of clause 212(1)(b)(vii)(E) of the Act, a prescribed security with respect to an obligation of a corporation isa share of the capital stock of the corporation unlessunder the terms and conditions of the share, any agreement relating to the share or any modification of such terms, conditions or agreement, the corporation or a specified person in relation to the corporation is or may, at any time within five years after the date of the issue of the obligation, be required to redeem, acquire or cancel, in whole or in part, the share (unless the share is or may be required to be redeemed, acquired or cancelled by reason only of a right to convert the share into, or exchange the share for, another share of the corporation that, if issued, would be a prescribed security) or to reduce its paid-up capital,as a result of the modification or establishment of the terms or conditions of the share or the changing or entering into of any agreement in respect of the share, the corporation or a specified person in relation to the corporation may, within five years after the date of the issue of the obligation, reasonably be expected to redeem, acquire or cancel, in whole or in part, the share (unless the share is or may be required to be redeemed, acquired or cancelled by reason only of a right to convert the share into, or exchange the share for, another share of the corporation that, if issued, would be a prescribed security) or to reduce its paid-up capital, oras a result of the terms or conditions of the share or any agreement entered into by the corporation or a specified person in relation to the corporation or any modification of such terms, conditions or agreement, any person is required, either absolutely or contingently, within five years after the date of the issue of the obligation, to effect any undertaking, including any guarantee, covenant or agreement to purchase or repurchase the share, and including a loan of funds to or the placing of amounts on deposit with, or on behalf of, the shareholder or a specified person in relation to the shareholder givento ensure that any loss that the shareholder or a specified person in relation to the shareholder may sustain, by reason of the ownership, holding or disposition of the share or any other property, is limited in any respect, andas part of a transaction or event or series of transactions or events that included the issuance or acquisition of the obligation,and for the purposes of this subparagraph, where such an undertaking in respect of a share is given at any particular time after the date of the issue of the obligation, the obligation shall be deemed to have been issued at the particular time and the undertaking shall be deemed to have been given as part of a series of transactions that included the issuance or acquisition of the obligation, anda right or warrant to acquire a share of the capital stock of the corporation that would, if issued, be a prescribed security with respect to the obligation,where all the consideration receivable upon a conversion or exchange of the obligation or the prescribed security, as the case may be, is a share of the capital stock of the corporation described in paragraph (a) or a right or warrant described in paragraph (b), or both, as the case may be.For the purposes of this section, where a taxpayer may become entitled upon the conversion or exchange of an obligation or a prescribed security to receive consideration in lieu of a fraction of a share, that consideration shall be deemed not to be consideration unless it may reasonably be considered to be receivable as part of a series of transactions or events one of the main purposes of which is to avoid or limit the application of Part XIII of the Act.In this section, specified person, in relation to a corporation or a shareholder, means any person with whom the corporation or the shareholder, as the case may be, does not deal at arm’s length or any partnership or trust of which the corporation or the shareholder, as the case may be, or the person is a member or beneficiary, respectively.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-285, s. 1; SOR/94-686, ss. 78(F), 79(F)
For the purposes of the definition lending asset in subsection 248(1) of the Act,a share owned by a bank is a prescribed share for a taxation year where it is a preferred share of the capital stock of a corporation that is dealing at arm’s length with the bank that may reasonably be considered to be, and is reported as, a substitute or alternative for a loan to the corporation, or another corporation with whom the corporation does not deal at arm’s length, in the bank’s annual report for the year to the relevant authority or, where the bank was throughout the year subject to the supervision of the relevant authority but was not required to file an annual report for the year with the relevant authority, in its financial statements for the year; anda property is a prescribed property for a taxation year wherethe security is a mark-to-market property (as defined in subsection 142.2(1) of the Act) for the year of a financial institution (as defined in subsection 142.2(1) of the Act),the security is at any time in the year a property described in an inventory of a taxpayer, orthe property is a direct financing lease, or is any other financing arrangement, of a taxpayer that is reported as a loan in the taxpayer’s financial statement for the year prepared in accordance with generally accepted accounting principles and an amount is deductible under paragraph 20(1)(a) of the Act in respect of the property that is the subject of the lease or arrangement in computing the taxpayer’s income for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-78, s. 3; SOR/94-686, ss. 35(F), 79(F); SOR/99-91, s. 1; SOR/2009-222, s. 5
For the purposes of paragraph 38(a.1) of the Act, a prescribed debt obligation is a bond, debenture, note, mortgage or similar obligationof or guaranteed by the Government of Canada; orof the government of a province or an agent of that government.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-187, s. 6
Child Tax BenefitsInterpretation
In this Part, qualified dependant has the meaning assigned by section 122.6 of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-13, s. 1
Non-Application of Presumption
For the purposes of paragraph (g) of the definition eligible individual in section 122.6 of the Act, the presumption referred to in paragraph (f) of that definition does not apply in the circumstances wheresubject to paragraph (c), the female parent of the qualified dependant declares in writing to the Minister that she resides with the other parent of that qualified dependant and that that other parent primarily fulfils the responsibility for the care and upbringing of each of the qualified dependants with whom both parents reside;the female parent is a qualified dependant of an eligible individual and each of them files a notice with the Minister under subsection 122.62(1) of the Act in respect of the same qualified dependant;there is more than one female parent of the qualified dependant who resides with the qualified dependant and each female parent files a notice with the Minister under subsection 122.62(1) of the Act in respect of the qualified dependant; ormore than one notice is filed with the Minister under subsection 122.62(1) of the Act in respect of the same qualified dependant who resides with each of the persons filing the notices if such persons live at different locations.For greater certainty, a person who files a notice referred to in paragraph (1)(b), (c) or (d) includes a person who is not required under subsection 122.62(3) of the Act to file such a notice.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-13, s. 1; SOR/99-17, s. 9SOR/2021-82, s. 1
Factors
For the purposes of paragraph (h) of the definition eligible individual in section 122.6 of the Act, the following factors are to be considered in determining what constitutes care and upbringing of a qualified dependant:the supervision of the daily activities and needs of the qualified dependant;the maintenance of a secure environment in which the qualified dependant resides;the arrangement of, and transportation to, medical care at regular intervals and as required for the qualified dependant;the arrangement of, participation in, and transportation to, educational, recreational, athletic or similar activities in respect of the qualified dependant;the attendance to the needs of the qualified dependant when the qualified dependant is ill or otherwise in need of the attendance of another person;the attendance to the hygienic needs of the qualified dependant on a regular basis;the provision, generally, of guidance and companionship to the qualified dependant; andthe existence of a court order in respect of the qualified dependant that is valid in the jurisdiction in which the qualified dependant resides.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-13, s. 1
Prescribed DatesChild Tax Credits
For the purposes of subsection 122.2(1) of the Act, the prescribed date for each of the 1978 and subsequent taxation years is December 31st of that year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-206, s. 1; SOR/80-139, s. 1; SOR/80-925, s. 1; SOR/81-289, s. 1
Quebec Tax Abatement
For the purposes of subsection 120(2) of the Act, the prescribed date for each of the 1980 and subsequent taxation years is December 31st of that year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-289, s. 1
Prescribed Laws[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-346, s. 1
For the purposes of paragraph 241(4)(j.2) of the Act, the following are prescribed laws of the Province of Quebec:An Act respecting the Québec Pension Plan, R.S.Q., c. R-9; andIndividual and Family Assistance Act, R.S.Q., c. A-13.1.1, as it relates to the additional amounts for dependent children.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-245, s. 1; SOR/81-118, s. 1; SOR/82-214, s. 1; SOR/86-488, s. 8; SOR/2007-116, s. 9; 2013, c. 40, 112
For the purposes of paragraph 81(1)(q) of the Act, prescribed provision of the law of a province meansin respect of the Province of Albertasubsections 7(1) and 14(1) of The Criminal Injuries Compensation Act, R.S.A. 1970, c. 75, andsubsections 8(3), 10(2) and 13(8) of The Motor Vehicle Accident Claims Act, R.S.A. 1970, c. 243;in respect of the Province of British Columbiaparagraphs 3(1)(a) and (b) and section 9 of the Criminal Injury Compensation Act, R.S.B.C. 1979, c. 83, andsubsection 106(1) of the Motor-vehicle Act, R.S.B.C. 1960, c. 253, as amended by S.B.C. 1965, c. 27;in respect of the Province of Manitobasubsection 6(1) of The Criminal Injuries Compensation Act, S.M. 1970, c. 56, andsubsections 7(9) and 12(11) of The Unsatisfied Judgement Fund Act, R.S.M. 1970, U70;in respect of the Province of New Brunswicksubsections 3(1) and (2) of the Compensation for Victims of Crime Act, R.S.N.B. 1973, c. C-14, andsubsections 319(3), (10) and 321(1) of the Motor Vehicle Act, R.S.N.B. 1973, c. M-17;in respect of the Province of Newfoundlandsubsection 27(1) of the Criminal Injuries Compensation Act, R.S.N. 1970, c. 68, andsubsection 106(2) of The Highway Traffic Act, R.S.N. 1970, c. 152;in respect of the Northwest Territories, subsections 3(1) and 5(2) and section 13 of the Criminal Injuries Compensation Ordinance, R.O.N.W.T. 1974, c. C-23;in respect of the Province of Nova Scotia, subsections 190(5) and 191(2) of the Motor Vehicle Act, R.S.N.S. 1967, c. 191;in respect of the Province of Ontariosection 5, subsection 7(2) and section 14 of The Compensation for Victims of Crime Act, 1971, S.O. 1971, c. 51, andsubsections 5(3) and 6(1) and section 18 of The Motor Vehicle Accident Claims Act, R.S.O. 1970, c. 281;in respect of the Province of Prince Edward Island, subsection 351(3) of the Highway Traffic Act, R.S.P.E.I. 1974, c. H-6;in respect of the Province of Quebecsections 5, 5b and 14 of the Crime Victims Compensation Act, S.Q. 1971, c. 18, andsections 13 and 26, subsection 37(1) and sections 44 and 54 of the Automobile Insurance Act, S.Q. 1977, c. 68;in respect of the Province of Saskatchewansubsection 10(1) of The Criminal Injuries Compensation Act, R.S.S. 1978, c. C-47, andsubsections 23(1) to (4) and (7), 24(2) to (7) and (9), 25(1), 26(1), 27(1) and (2), 27(5), 51(8) and (9), 54(3) and 55(1) of The Automobile Accident Insurance Act, R.S.S. 1978, c. A-35; andin respect of the Yukon Territory, subsection 3(1) of the Compensation for the Victims of Crime Ordinance, O.Y.T. 1975 (1st), c. 2 as amended by O.Y.T. 1976 (1st), c. 5.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-118, s. 2
For the purposes of paragraph 56(1)(c.1), section 56.1, paragraph 60(c.1) and section 60.1 of the Act, the class of individualswho were parties, whether in a personal capacity or by representation, to proceedings giving rise to an order made in accordance with the laws of the Province of Ontario, andwho, at the time the application for the order was made, were persons described in subclause 14(b)(i) of the Family Law Reform Act, Revised Statutes of Ontario 1980, c. 152,is prescribed as a class of persons described in the laws of a province.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-116, s. 1
For the purposes of paragraphs 60(j.02) to (j.04) of the Act, subsection 41(5) of the Canadian Forces Superannuation Act, subsections 39(7) and 42(8) of the Public Service Superannuation Act and subsection 24(6) of the Royal Canadian Mounted Police Superannuation Act are prescribed.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-346, s. 2; 2017, c. 33, s. 99
Prescribed Order
For the purpose of the definition overseas Canadian Forces school staff in subsection 248(1) of the Act, the Canadian Forces Overseas Schools Regulations is prescribed.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-288, s. 1; SOR/81-705, s. 1; SOR/2010-93, s. 23
Prescribed Venture Capital Corporations, Labour-sponsored Venture Capital Corporations, Investment Contract Corporations, Qualifying Corporations and Prescribed Stock Savings Plans[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-551, s. 1; SOR/94-686, s. 79(F)
For the purposes of paragraph 40(2)(i), clause 53(2)(k)(i)(C), the definition private corporation in subsection 89(1), subsection 125(6.2), the definition Canadian-controlled private corporation in subsection 125(7), section 186.2 and the definition financial intermediary corporation in subsection 191(1) of the Act, the following are prescribed venture capital corporations:a corporation that is registered under the provisions ofAn Act Respecting Corporations for the Development of Quebec Business Firms, Statutes of Quebec 1976, c. 33,the Small Business Development Corporations Act, 1979, Statutes of Ontario 1979, c. 22,Manitoba Regulation 194/84, being a regulation made under The Loans Act, 1983(2), Statutes of Manitoba 1982-83-84, c. 36,The Venture Capital Tax Credit Act, Statutes of Saskatchewan 1983-84, c. V-4.1,the Small Business Equity Corporations Act, Statutes of Alberta 1984, c. S-13.5,the Small Business Venture Capital Act, Statutes of British Columbia 1985, c. 56,An Act respecting Quebec business investment companies, Statutes of Québec 1985, c. 9,The Venture Capital Act, Statutes of Newfoundland 1988, c. 15,The Labour-sponsored Venture Capital Corporations Act, Statutes of Saskatchewan 1986, c. L-0.2,Part 2 of the Employee Investment Act, Revised Statutes of British Columbia, 1996, c. 112,Part III of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992,The Labour-Sponsored Venture Capital Corporations Act, Continuing Consolidation of the Statutes of Manitoba c. L12,Part II of the Risk Capital Investment Tax Credits Act, chapter 22 of the Statutes of the Northwest Territories, 1998, orsection 11 or Part II of the Equity Tax Credit Act, Statutes of Nova Scotia, 1993, c. 3;the corporation established by An Act to Establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.), Revised Statutes of Québec, F-3.2.1;a corporation that is registered with the Department of Economic Development and Tourism of the Government of the Northwest Territories pursuant to the Venture Capital Policy and Directive issued by the Government of the Northwest Territories on June 27, 1985;a corporation that is a registered labour-sponsored venture capital corporation;the corporation established by The Manitoba Employee Ownership Fund Corporation Act, Continuing Consolidation of the Statutes of Manitoba, c. E95;the corporation established by An Act constituting Capital régional et coopératif Desjardins, R.S.Q., c. C-6.1;the corporation established by An Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi, Statutes of Québec 1995, c. 48;a corporation (including incorporated cooperative associations) registered under section 2 of the Community Development Equity Tax Credit Act, R.S.P.E.I. 1988, c. C-13.01; ora corporation that is a community economic development corporation, an eligible business corporation or a venture capital corporation, as defined in subsection 2(1) of the Investing in a Diversified Alberta Economy Act, S.A. 2016, c. I-10.5, and that is registered under that Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-540, s. 1; SOR/84-948, s. 17; SOR/85-92, s. 1; SOR/86-379, s. 1; SOR/86-488, s. 9; SOR/86-1136, s. 9; SOR/89-551, s. 2; SOR/92-397, s. 1; SOR/92-398, s. 1; SOR/93-396, s. 1; SOR/94-686, ss. 36(F), 79(F); SOR/96-173, s. 1; SOR/97-504, s. 1; SOR/98-12, s. 1; SOR/98-281, s. 2; SOR/99-102, s. 3; SOR/2001-289, s. 2; SOR/2011-188, s. 23SOR/2024-231, s. 16
For the purposes of paragraph 40(2)(i) and clause 53(2)(k)(i)(C) of the Act, a corporation that has an employee share ownership plan registered under Part 1 of the Employee Investment Act, R.S.B.C. 1996, c. 112, is also a prescribed venture capital corporation.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-397, s. 2; SOR/94-686, s. 79(F); SOR/2001-289, s. 3
For the purposes of paragraph 40(2)(i) and clause 53(2)(k)(i)(C) of the Act, “prescribed venture capital corporation” at any time includes a corporation that at that time is a corporation registered under the provisions of Part II of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992, or of Part II of the Risk Capital Investment Tax Credits Act, chapter 22 of the Statutes of the Northwest Territories, 1998.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-396, s. 2; SOR/94-686, s. 37(F); SOR/99-102, s. 4
For the purposes of paragraph 40(2)(i), clause 53(2)(k)(i)(C), the definition public corporation in subsection 89(1), the definition specified investment business in subsection 125(7), the definition approved share in subsection 127.4(1), subsections 131(8) and (11), section 186.1, the definition financial intermediary corporation in subsection 191(1), the definition eligible investment in subsection 204.8(1) and subsection 204.81(8.3) of the Act, prescribed labour-sponsored venture capital corporation means, at any particular time,the corporation established by the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.), Statutes of Quebec 1983, c. 58;a corporation that is registered under the provisions of The Labour-sponsored Venture Capital Corporations Act, Statutes of Saskatchewan 1986, c. L-0.2;a corporation that is registered under Part 2 of the Employee Investment Act, Revised Statutes of British Columbia, 1996, c. 112;a registered labour-sponsored venture capital corporation;[Repealed, SOR/2024-231, s. 17]the corporation established by The Manitoba Employee Ownership Fund Corporation Act, Continuing Consolidation of the Statutes of Manitoba, c. E95;a corporation that is registered under The Labour-Sponsored Venture Capital Corporations Act, Continuing Consolidation of the Statutes of Manitoba c. L12;the corporation established by An Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi, Statutes of Québec 1995, c. 48;a corporation that is registered under Part II of the Equity Tax Credit Act, Statutes of Nova Scotia 1993, c. 3; ora corporation that is registered under Part II of the Risk Capital Investment Tax Credits Act, chapter 22 of the Statutes of the Northwest Territories, 1998.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-540, s. 1; SOR/86-1136, s. 10; SOR/89-551, s. 3; SOR/92-397, s. 3; SOR/92-398, s. 2; SOR/93-396, s. 3; SOR/94-686, ss. 38(F), 79(F); SOR/96-173, s. 2; SOR/97-504, s. 2; SOR/98-12, s. 2; SOR/98-281, s. 3; SOR/99-102, s. 5; SOR/2001-289, s. 4; SOR/2005-126, s. 4; 2013, c. 34, s. 403SOR/2024-231, s. 17
[Repealed, 2016, c. 7, s. 57][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 40, s. 113; 2016, c. 7, s. 57
For the purposes of subparagraph 40(2)(i)(ii) and clause 53(2)(k)(i)(C) of the Act, each of the following is prescribed assistance:the assistance received from a province that has been provided in respect of, or for the acquisition of, a share of the capital stock of a venture capital corporation described in section 6700;the assistance provided under the Employee Investment Act, R.S.B.C. 1996, c. 112, in respect of, or for the acquisition of, a share of the capital stock of a venture capital corporation described in section 6700.1;the assistance provided under the Community Small Business Investment Funds Act, S.O. 1992, c. 18, the Risk Capital Investment Tax Credits Act, S.N.W.T. 1998, c. 22, or the Risk Capital Investment Tax Credits Act, S.N.W.T. 1998, c. 22, as duplicated for Nunavut, in respect of, or for the acquisition of, a share of the capital stock of a venture capital corporation described in section 6700.2;a tax credit provided in respect of, or for the acquisition of, a share of a labour-sponsored venture capital corporation described in section 6701; anda tax credit provided by a province in respect of, or for the acquisition of, a share of the capital stock of a taxable Canadian corporation (other than a share of the capital stock of a corporation in respect of which an amount has been renounced by the corporation under subsection 66(12.6), (12.601), (12.62) or (12.64) of the Act) that is held in a stock savings plan described in section 6705.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 10; SOR/89-551, s. 4; SOR/92-397, s. 4; SOR/93-396, s. 4; SOR/94-686, s. 79(F); SOR/96-199, s. 4; SOR/99-102, s. 6; SOR/2001-289, s. 5
For the purposes of section 186.1 of the Act, a prescribed investment contract corporation means a corporation described in clause 146(1)(j)(ii)(B) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/84-948, s. 17; SOR/86-1136, s. 11; SOR/94-686, s. 79(F)
For the purposes of section 186.2 of the Act, a corporation is a prescribed qualifying corporation in respect of dividends received by a shareholder on shares of its capital stock if, when the shares were acquired by the shareholder, they constitutedan investment described in sections 33 and 34 of the Act referred to in subparagraph 6700(a)(i);an eligible investment under the provisions of an Act referred to in subparagraph 6700(a)(ii), (iv), (v), (vi) or (viii) or the regulation referred to in subparagraph 6700(a)(iii);a qualified investment under the provisions of the Act referred to in subparagraph 6700(a)(vii);an investment in an eligible business under the Venture Capital Policy and Directive referred to in paragraph 6700(c); oran investment in an eligible entity described in sections 17 and 18 of An Act constituting Capital régional et coopératif Desjardins, R.S.Q., c. C-6.1.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-551, s. 5; SOR/92-397, s. 5; SOR/93-396, s. 5; SOR/94-686, s. 79(F); SOR/2011-188, s. 24
For the purposes of paragraph 40(2)(i) and clause 53(2)(k)(i)(C) of the Act, a stock savings plan governed by any of the following is a prescribed stock savings plan:the Alberta Stock Savings Plan Act, Statutes of Alberta 1986, c. A-37.7;The Stock Savings Tax Credit Act, Statutes of Saskatchewan 1986, c. S-59.1;the Stock Savings Plan Act, Revised Statutes of Nova Scotia, 1989, c. 445;the Stock Savings Tax Credit Act, Revised Statutes of Newfoundland, 1990, c. S-28; orsection 11.6 of the Income Tax Act, Continuing Consolidation of the Statutes of Manitoba c. I10.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-551, s. 5; SOR/2001-289, s. 6
For the purpose of clause 204.81(1)(c)(v)(F) of the Act, a prescribed condition is that, in respect of a redemption of a Class A share of a corporation’s capital stock, the shareholder requires the corporation to withhold an amount in respect of the redemption in accordance with Part XII.5 of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-398, s. 3; SOR/94-686, s. 79(F); SOR/96-174, s. 1; SOR/98-281, s. 4
For the purpose of subsection 204.82(5) of the Act, a prescribed provision of a law of a province means section 25.1 of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-102, s. 7
For the purposes of paragraph 204.8(2)(b), section 27.2 of the Community Small Business Investment Funds Act, 1992, S.O. 1992, c. 18, is a prescribed wind-up rule.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 404; 2014, c. 20, s. 35
For the purposes of section 211.81 of the Act, sections 1086.14 and 1086.20 of the Taxation Act, R.S.Q., c. I-3, are prescribed provisions of a provincial law.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 404
Prescribed Plans, Arrangements and Contributions[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 1
For the purpose of paragraph (e) of the definition employee benefit plan in subsection 248(1) of the Act, each of the following is a prescribed arrangement:the Major League Baseball Players Benefit Plan;an arrangement under which all contributions are made pursuant to a law of Canada or a province, where one of the main purposes of the law is to enforce minimum standards with respect to wages, vacation entitlement or severance pay; andan arrangement under which all contributions are made in connection with a dispute regarding the entitlement of one or more persons to benefits to be received or enjoyed by the person or persons.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-541, s. 1; SOR/96-311, s. 2
For the purposes of paragraph (l) of the definition salary deferral arrangement in subsection 248(1) of the Act, a prescribed plan or arrangement is an arrangement in writingbetween an employer and an employee that is established on or after July 28, 1986 whereit is reasonable to conclude, having regard to all the circumstances, including the terms and conditions of the arrangement and any agreement relating thereto, that the arrangement is not established to provide benefits to the employee on or after retirement but is established for the main purpose of permitting the employee to fund, through salary or wage deferrals, a leave of absence from the employee’s employment of not less thanwhere the leave of absence is to be taken by the employee for the purpose of permitting the full-time attendance of the employee at a designated educational institution (within the meaning assigned by subsection 118.6(1) of the Act), three consecutive months, orin any other case, six consecutive monthsthat is to commence immediately after a period (in this section referred to as the “deferral period”) not exceeding six years after the date on which the deferrals for the leave of absence commence,the amount of salary or wages deferred by the employee under all such arrangements for the services rendered by the employee to the employer in a taxation year does not exceed 33 1/3 per cent of the amount of the salary or wages that the employee would, but for the arrangements, reasonably be expected to have received in the year in respect of the services,the arrangement provides that throughout the period of the leave of absence the employee does not receive any salary or wages from the employer, or from any other person or partnership with whom the employer does not deal at arm’s length, other thanthe amount by which the employee’s salary or wages under the arrangement was deferred or is to be reduced or, amounts that are based on a percentage of the salary or wage scale of employees of the employer, which percentage is fixed in respect of the employee for the deferral period and the leave of absence, andthe reasonable fringe benefits that the employer usually pays to or on behalf of employees,the arrangement provides that the amounts deferred in respect of the employee under the arrangementare held by or for the account of a trust governed by a plan or arrangement that is an employee benefit plan within the meaning of the definition thereof in subsection 248(1) of the Act, and provides that the amount that may reasonably be considered to be the income of the trust for a taxation year that has been earned by it for the benefit of the employee shall be paid in the year to the employee, orare held by or for the account of any person other than a trust referred to in clause (A), and provides that the amount in respect of interest or other additional amounts that may reasonably be considered to have accrued to or for the benefit of the employee to the end of a taxation year shall be paid in the year to the employee,the arrangement provides that the employee is to return to his regular employment with the employer or an employer that participates in the same or a similar arrangement after the leave of absence for a period that is not less than the period of the leave of absence, andsubject to subparagraph (iv), the arrangement provides that all amounts held for the employee’s benefit under the arrangement shall be paid to the employee out of or under the arrangement no later than the end of the first taxation year that commences after the end of the deferral period;between an employer and an employee that is established before July 28, 1986 where it is reasonable to conclude, having regard to all the circumstances, including the terms and conditions of the arrangement and any agreement relating thereto, that the arrangement is not established to provide benefits on or after retirement but is established for the main purpose of permitting the employee to fund, through salary or wage deferrals, a leave of absence from the employment and under which the deferrals in respect of the leave of absence commenced before 1987;that is established for the purpose of deferring the salary or wages of a professional on-ice official for his services as such with the National Hockey League if, in the case of an official resident in Canada, the trust or other person who has custody and control of any funds, investments or other property under the arrangement is resident in Canada; orbetween a corporation and an employee of the corporation or a corporation related thereto under which the employee (or, after the employee’s death, a dependant or relation of the employee or the legal representative of the employee) may or shall receive an amount that may reasonably be attributable to duties of an office or employment performed by the employee on behalf of the corporation or a corporation related thereto whereall amounts that may be received under the arrangement shall be received after the time of the employee’s death or retirement from, or loss of, the office or employment and no later than the end of the first calendar year commencing thereafter, andthe aggregate of all amounts each of which may be received under the arrangement depends on the fair market value of shares of the capital stock of the corporation or a corporation related thereto at a time within the period that commences one year before the time of the employee’s death or retirement from, or loss of, the office or employment and ends at the time the amount is received,unless, by reason of the arrangement or a series of transactions that includes the arrangement, the employee or a person with whom the employee does not deal at arm’s length is entitled, either immediately or in the future, either absolutely or contingently, to receive or obtain any amount or benefit granted or to be granted for the purpose of reducing the impact, in whole or in part, of any reduction in the fair market value of the shares of the corporation or a corporation related thereto.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-128, s. 1; SOR/91-153, s. 1; SOR/94-686, ss. 78(F), 79(F)
COVID-19 — Deferred salary leave plan
For the purposes of paragraph 6801(a), if an employee’s leave of absence is suspended on or after March 15, 2020 (referred to in this subsection as the “first period”) and the leave of absence resumes on or before April 30, 2022 (referred to in this subsection as the “second period”),the employee’s first period and second period are deemed to be one continuous leave of absence; andamounts held for the employee’s benefit under the arrangement shall be paid to the employee out of or under the arrangement no later than the end of the first taxation year that commences after the start of the second period.If the six-year period referred to in subparagraph 6801(a)(i) in respect of an arrangement would end during the period beginning on March 15, 2020 and ending on April 30, 2022, the reference in that subparagraph to “six years” is to be read as a reference to “eight years”.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2021-127, s. 1
For the purposes of paragraph (n) of the definition retirement compensation arrangement in subsection 248(1) of the Act, a prescribed plan or arrangement isthe plan instituted by the Canada Pension Plan;a provincial pension plan as defined in section 3 of the Canada Pension Plan;a plan instituted by the Unemployment Insurance Act;a plan pursuant to an agreement in writing that is established for the purpose of deferring the salary or wages of a professional on-ice official for the official’s services as such with the National Hockey League if, in the case of an official resident in Canada, the trust or other person who has custody and control of any funds, investments or other property under the plan is resident in Canada;an arrangement under which all contributions are made pursuant to a law of Canada or a province, where one of the main purposes of the law is to enforce minimum standards with respect to wages, vacation entitlement or severance pay;an arrangement under which all contributions are made in connection with a dispute regarding the entitlement of one or more persons to benefits to be received or enjoyed by the person or persons;a plan or arrangement instituted by the social security legislation of a country other than Canada or of a state, province or other political subdivision of such a country;a trust establishedto hold shares of Air Canada, pursuant to the June 2009 memorandum of understanding and the April 2022 letter of intent between Air Canada and certain trade unions who represent employees of Air Canada, ifthe shares are held by the trust for the benefit of the trade unions,amounts received or receivable by the trust in respect of the shares, whether as dividends, proceeds of disposition or otherwise, are not to be distributed unlesseach of the trade unions directs the trustee to contribute, from time to time, the amounts to one or more registered pension plans under which Air Canada is a participating employer, orthe amounts are paid to recipients in the manner contemplated in the April 2022 letter of intent between Air Canada and certain trade unions who represent employees of Air Canada, andall of the property of the trust is distributed no later than December 31, 2037, orin relation to the wind-up of a registered pension plan sponsored by Fraser Papers Inc., ifshares are held by the trust for the benefit of the registered pension plan, andthe trustee will contribute amounts received or receivable by the trust in respect of the shares, whether as dividends, proceeds of disposition or otherwise, to the registered pension plan, not later than December 31, 2018; ora trust and partnership established pursuant to the June 9, 2017 plan of compromise, arrangement and reorganization for U.S. Steel Canada Inc. under the Companies’ Creditors Arrangement Act wherethe trust contributes amounts received or receivable by it to registered pension plans sponsored by U.S. Steel Canada Inc., andthe limited partners of the partnership are the trust and employee life and health trusts established for employees and former employees of U.S. Steel Canada Inc.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 6; SOR/94-686, s. 79(F); SOR/96-311, s. 3; 2013, c. 34, s. 405SOR/2024-231, s. 18SOR/2025-75, s. 1
For the purpose of paragraph 8(1)(m.2) of the Act, each of the following is a prescribed plan:the pension plan established as a consequence of the establishment, by section 27 of the Members of Parliament Retiring Allowances Act, of the Members of Parliament Retirement Compensation Arrangements Account; andthe pension plan established by the Retirement Compensation Arrangements Regulations, No. 1.For the purpose of subsection 207.6(6) of the Act, each of the following is a prescribed plan or arrangement:the pension plan established as a consequence of the establishment, by section 27 of the Members of Parliament Retiring Allowances Act, of the Members of Parliament Retirement Compensation Arrangements Account;the pension plan established by the Retirement Compensation Arrangements Regulations, No. 1; andthe pension plan established by the Retirement Compensation Arrangements Regulations, No. 2.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2000-12, s. 2
For the purposes of the definition foreign retirement arrangement in subsection 248(1) of the Act, a prescribed plan or arrangement is a plan or arrangement to which subsection 408(a), (b) or (h) of the United States’ Internal Revenue Code of 1986, as amended from time to time, applies.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-692, s. 1; SOR/2007-116, s. 10
Contributions to Foreign PlansDefinitions
The definitions in this subsection apply in this section.foreign non-profit organization means,at any time before 1995, an organizationthat at that time meets the conditions in subparagraphs (b)(i) to (iii), orthat at that time is not operated for the purpose of profit, and whose assets are situated primarily outside Canada throughout the calendar year that includes that time, andat any time after 1994, an organization that at that timeis not operated for the purpose of profit,has its main place of management outside Canada, andcarries on its activities primarily outside Canada. (organisme étranger à but non lucratif)foreign plan means a plan or arrangement (determined without regard to subsection 207.6(5) of the Act) that would, but for paragraph (l) of the definition retirement compensation arrangement in subsection 248(1) of the Act, be a retirement compensation arrangement. (régime étranger)qualifying entity means a non-resident entity that holds all or part of the assets of a foreign plan where the following conditions are satisfied:the entity is resident in a country under the laws of which an income tax is imposed, andwhere those laws provide an exemption from tax, a reduced rate of tax or other favourable tax treatment for entities that hold assets of pension or other retirement plans, the entity qualifies for the favourable treatment. (entité admissible)Electing EmployerFor the purposes of this section, an employer is an electing employer for a calendar year with respect to a foreign plan wherethe employer has sent or delivered to the Minister a letter stating that the employer elects to have this section apply with respect to contributions to the foreign plan, andthe letter was sent or delivered on or beforethe last day of February in the year following the first calendar year after 1991 in which a contribution that is, or would be if subsection 207.6(5.1) of the Act were read without reference to paragraph (a) of that subsection, a resident’s contribution (as defined in that subsection) was made under the foreign plan in respect of services rendered by an individual to the employer, orany later date that is acceptable to the Minister,except that an employer is not an electing employer for a year with respect to a foreign plan if the Minister has granted written permission for the employer to revoke, for the year or a preceding calendar year, the election made under paragraph (a) in respect of the foreign plan.Election by UnionExcept as otherwise permitted in writing by the Minister, an election made by a trade union for the purpose of subsection (2) is valid only if it is made by the highest-level structural unit of the union.Contributions Made before 1992For the purpose of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons in a calendar year before 1992 is a prescribed contribution wherethe contribution is paid to a qualifying entity;each employer (in this subsection referred to as a “contributor”) that makes a contribution under the foreign plan in the year isa non-resident corporation throughout the year,a partnership that makes contributions under the foreign plan primarily in respect of services rendered outside Canada to the partnership by non-resident employees, ora foreign non-profit organization throughout the year;if a corporation or partnership (other than a corporation or partnership that is a foreign non-profit organization throughout the year) is a contributor, no individual who is entitled (either absolutely or contingently) to benefits under the foreign plan is a member of a registered pension plan, or a beneficiary under a deferred profit sharing plan, to which a contributor, or a person or body of persons not dealing at arm’s length with a contributor, makes, or is required to make, contributions in relation to the year;contributions made in the year under the foreign plan for the benefit of individuals resident in Canada are reasonable in relation to contributions made under the plan for the benefit of non-resident individuals; andthe foreign plan is not a pension plan the registration of which under the Act has been revoked.Contributions Made in 1992, 1993 or 1994For the purpose of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons at any time in 1992, 1993 or 1994 in respect of services rendered by an individual to an employer is a prescribed contribution wherethe contribution is paid to a qualifying entity;the employer is an electing employer for the year with respect to the foreign plan;if the employer is not at that time a foreign non-profit organization, the individual is not a member of a registered pension plan (other than a specified multi-employer plan, as defined in subsection 147.1(1) of the Act), or a deferred profit sharing plan, in which the employer, or a person or body of persons that does not deal at arm’s length with the employer, participates; andeitherthe employer isa corporation that is not resident in Canada at that time,a partnership that makes contributions under the foreign plan primarily in respect of services rendered outside Canada to the partnership by non-resident employees, ora foreign non-profit organization at that time, orthe individual was non-resident at any time before the contribution is made and became a member of the foreign plan before the end of the month after the month in which the individual became resident in Canada.Contributions Made after 1994For the purposes of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons at any time in a calendar year after 1994 in respect of services rendered by an individual to an employer is a prescribed contribution wherethe contribution is paid to a qualifying entity;the employer is an electing employer for the year with respect to the foreign plan;if the employer is at that time a foreign non-profit organization,the amount that, if subsection 8301(1) were read without reference to paragraph (b) of that subsection, would be the individual’s pension adjustment for the year in respect of the employer is nil, orthe amount that would be the individual’s pension adjustment for the year in respect of the employer ifall contributions made under the foreign plan in the year in respect of the individual were prescribed by this subsection,where the year is 1996, section 8308.1 were read without reference to subsection (4.1), andwhere the year is 1997, subparagraph 8308.1(2)(b)(v) were read asthe amount, if any, by which 18% of the individual’s resident compensation from the employer for the year exceeds $1,000, and”does not exceed the lesser ofthe money purchase limit for the year, and18% of the individual’s compensation (as defined in subsection 147.1(1) of the Act) for the year from the employer;ifthe employer is at that time a foreign non-profit organization, anda period in the year throughout which the individual rendered services to the employer would be, under paragraph 8507(3)(a), a qualifying period of the individual with respect to another employer if that paragraph were read without reference to subparagraph (iv) of that paragraph,subsection 8308(7) applies with respect to the determination of the individual’s pension adjustment for the year with respect to each employer; andif the employer is not at that time a foreign non-profit organization,the individual was non-resident at any time before the contribution is made,the individual became a member of the foreign plan before the end of the month after the month in which the individual became resident in Canada, andthe individual is not a member of a registered pension plan, or a deferred profit sharing plan, in which the employer, or a person or body of persons that does not deal at arm’s length with the employer, participates.Replacement PlanFor the purposes of subparagraphs (5)(d)(ii) and (6)(e)(ii), where benefits provided to an individual under a particular plan or arrangement are replaced by benefits under another plan or arrangement, the other plan or arrangement is deemed, in respect of the individual, to be the same plan or arrangement as the particular plan or arrangement.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 4; SOR/99-9, s. 2
Prescribed Offshore Investment Fund Properties
For the purpose of paragraph 94.1(2)(a) of the Act, an offshore investment fund property (within the meaning assigned by subsection 94.1(1) of the Act) of a taxpayer thatwas acquired by him by way of bequest or inheritance from a deceased person who, throughout the five years immediately preceding his death, was not resident in Canada,had not been acquired by the deceased from a person resident in Canada, andis not property substituted for property acquired by the deceased from a person resident in Canadais a prescribed offshore investment fund property of the taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-488, s. 10
[Repealed, SOR/85-696, s. 18][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-696, s. 18
Accrued Interest on Debt Obligations
For the purpose of subsection 12(9) of the Act, each of the following debt obligations (other than a debt obligation that is an indexed debt obligation) in respect of which a taxpayer has at any time acquired an interest is a prescribed debt obligation:a particular debt obligation in respect of which no interest is stipulated to be payable in respect of its principal amount,a particular debt obligation in respect of which the proportion of the payments of principal to which the taxpayer is entitled is not equal to the proportion of the payments of interest to which he is entitled,a particular debt obligation in respect of which it can be determined, at the time the taxpayer acquired the interest therein, that the maximum amount of interest payable thereon in a year ending after that time is less than the maximum amount of interest payable thereon in a subsequent year, other than a debt obligation thatis described in paragraph (a) or (b), ormeets the following conditions:it is issued by, or by an agency of, the Government of Canada or a province, andit satisfies the conditions in subparagraphs (2)(c.1)(i) and (ii); anda particular debt obligation, other than one described in paragraph (a), (b) or (c), in respect of which the amount of interest to be paid in respect of any taxation year is, under the terms and conditions of the obligation, dependent on a contingency existing after the year,and, for the purposes of this subsection, a debt obligation includes, for greater certainty, all of the issuer’s obligations to pay principal and interest under that obligation.For the purposes of subsection 12(9) of the Act, the amount determined in prescribed manner that is deemed to accrue to a taxpayer as interest on a prescribed debt obligation in each taxation year during which he holds an interest in the obligation is,in the case of a prescribed debt obligation described in paragraph (1)(a), the amount of interest that would be determined in respect thereof if interest thereon for that year were computed on a compound interest basis using the maximum of all rates each of which is a rate computedin respect of each possible circumstance under which an interest of the taxpayer in the obligation could mature or be surrendered or retracted, andusing assumptions concerning the interest rate and compounding period that will result in a present value, at the date of purchase of the interest, of all the maximum payments thereunder, equal to the cost thereof to the taxpayer;in the case of a prescribed debt obligation described in paragraph (1)(b), the aggregate of all amounts each of which is the amount of interest that would be determined in respect of his interest in a payment under the obligation if interest thereon for that year were computed on a compound interest basis using the specified cost of his interest therein and the specified interest rate in respect of his total interest in the obligation, and for the purposes of this paragraph,the specified cost of his interest in a payment under the obligation is its present value at the date of purchase computed using the specified interest rate, andthe specified interest rate is the maximum of all rates each of which is a rate computedin respect of each possible circumstance under which an interest of the taxpayer in the obligation could mature or be surrendered or retracted, andusing assumptions concerning the interest rate and compounding period that will result in a present value, at the date of purchase of the interest, of all the maximum payments to the taxpayer in respect of his total interest in the obligation, equal to the cost of that interest to the taxpayer;in the case of a prescribed debt obligation described in paragraph (1)(c), other than an obligation in respect of which paragraph (c.1) applies, the greater ofthe maximum amount of interest thereon in respect of the year, andthe maximum amount of interest that would be determined in respect thereof if interest thereon for that year were computed on a compound interest basis using the maximum of all rates each of which is a rate computedin respect of each possible circumstance under which an interest of the taxpayer in the obligation could mature or be surrendered or retracted, andusing assumptions concerning the interest rate and compounding period that will result in a present value, at the date of issue of the obligation, of all the maximum payments thereunder, equal to its principal amount;in the case of a prescribed debt obligation described in paragraph (1)(c) for whichthe rate of interest stipulated to be payable in respect of each period throughout which the obligation is outstanding is fixed at the date of issue of the obligation, andthe stipulated rate of interest applicable at each time is not less than each stipulated rate of interest applicable before that time,the amount of interest that would be determined in respect of the year if interest on the obligation for that year were computed on a compound interest basis using the maximum of all rates each of which is the compound interest rate that, for a particular assumption with respect to when the taxpayer’s interest in the obligation will mature or be surrendered or retracted, results in a present value (at the date the taxpayer acquires the interest in the obligation) of all payments under the obligation after the acquisition by the taxpayer of the taxpayer’s interest in the obligation equal to the principal amount of the obligation at the date of acquisition; andin the case of a prescribed debt obligation described in paragraph (1)(d), the maximum amount of interest thereon that could be payable thereunder in respect of that year.For the purpose of this section, any bonus or premium payable under a debt obligation is considered to be an amount of interest payable under the obligation.For the purposes of this section, wherea taxpayer has an interest in a debt obligation (in this subsection referred to as the “first interest”) under which there is a conversion privilege or an option to extend its term upon maturity, andat the time the obligation was issued (or, if later, at the time the conversion privilege or option was added or modified), circumstances could reasonably be foreseen under which the holder of the obligation would, by exercising the conversion privilege or option, acquire an interest in a debt obligation with a principal amount less than its fair market value at the time of acquisition,the subsequent interest in any debt obligation acquired by the taxpayer by exercising the conversion privilege or option shall be considered to be a continuation of the first interest.For the purposes of making the computations referred to in paragraphs (2)(a), (b), (c) and (c.1), the compounding period shall not exceed one year and any interest rate used shall be constant from the time of acquisition or issue, as the case may be, until the time of maturity, surrender or retraction.For the purpose of the definition investment contract in subsection 12(11) of the Act, a registered retirement savings plan or a registered retirement income fund, other than a plan or fund to which a trust is a party, is a prescribed contract throughout a calendar year where an annuitant (as defined in subsection 146(1) or 146.3(1) of the Act, as the case may be) under the plan or fund is alive at any time in the year or was alive at any time in the preceding calendar year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-864, s. 1; SOR/85-696, s. 19; SOR/86-1092, s. 17(F); SOR/96-225, s. 1; SOR/96-227, s. 1; SOR/96-435, s. 3; SOR/2001-295, s. 4(F)SOR/2024-231, s. 19
Indexed Debt Obligations
For the purpose of subparagraph 16(6)(a)(i) of the Act, where at any time in a taxation year a taxpayer holds an interest in an indexed debt obligation, there is prescribed as interest receivable and received by the taxpayer in the year in respect of the obligation the total ofthe amount, if any, by whichthe total of all amounts each of which is the amount by which the amount payable in respect of the taxpayer’s interest in an indexed payment under the obligation (other than a payment that is an excluded payment with respect to the taxpayer for the year) has, because of a change in the purchasing power of money, increased over an inflation adjustment period of the obligation that ends in the yearexceeds the total ofthat portion of the total, if any, determined under subparagraph (i) that is required, otherwise than by subsection 16(6) of the Act, to be included in computing the taxpayer’s income for the year or a preceding taxation year, andthe total of all amounts each of which is the amount by which the amount payable in respect of the taxpayer’s interest in an indexed payment under the obligation (other than a payment that is an excluded payment with respect to the taxpayer for the year) has, by reason of a change in the purchasing power of money, decreased over an inflation adjustment period of the obligation that ends in the year, andwhere the non-indexed debt obligation associated with the indexed debt obligation is an obligation that is described in any of paragraphs 7000(1)(a) to (d), the amount of interest that would be determined under subsection 7000(2) to accrue to the taxpayer in respect of the non-indexed debt obligation in the particular period thatbegins at the beginning of the first inflation adjustment period of the indexed debt obligation in respect of the taxpayer that ends in the year, andends at the end of the last inflation adjustment period of the indexed debt obligation in respect of the taxpayer that ends in the yearif the particular period were a taxation year of the taxpayer and the taxpayer’s interest in the indexed debt obligation were an interest in the non-indexed debt obligation.For the purposes of subparagraph 16(6)(a)(ii) of the Act, where at any time in a taxation year a taxpayer holds an interest in an indexed debt obligation, there is prescribed as interest payable and paid by the taxpayer in the year in respect of the obligation the amount, if any, by whichthe total of the amounts, if any, determined under subparagraphs (1)(a)(ii) and (iii) for the year in respect of the taxpayer’s interest in the obligationexceedsthe amount, if any, determined under subparagraph (1)(a)(i) for the year in respect of the taxpayer’s interest in the obligation.For the purposes of subparagraph 16(6)(b)(i) of the Act, where at any time in a taxation year an indexed debt obligation is an obligation of a taxpayer, there is prescribed as interest payable in respect of the year by the taxpayer in respect of the obligation the amount, if any, that would be determined under paragraph (1)(a) in respect of the taxpayer for the year if, at each time at which the obligation is an obligation of the taxpayer, the taxpayer were the holder of the obligation and not the debtor under the obligation.For the purposes of subparagraph 16(6)(b)(ii) of the Act, where at any time in a taxation year an indexed debt obligation is an obligation of a taxpayer, there is prescribed as interest receivable and received by the taxpayer in the year in respect of the obligation the amount, if any, that would be determined under subsection (2) in respect of the taxpayer for the year if, at each time at which the obligation is an obligation of the taxpayer, the taxpayer were the holder of the obligation and not the debtor under the obligation.For the purpose of determining the amount by which an indexed payment under an indexed debt obligation has increased or decreased over a period because of a change in the purchasing power of money, the amount of the indexed payment at any time shall be determined using the method for computing the amount of the payment at the time it is to be made, adjusted in a reasonable manner to take into account the earlier date of computation.For the purposes of this section, the non-indexed debt obligation associated with an indexed debt obligation is the debt obligation that would result if the indexed debt obligation were amended to eliminate all adjustments determined by reference to changes in the purchasing power of money.In this section,excluded payment with respect to a taxpayer for a taxation year means an indexed payment under an indexed debt obligation wherethe non-indexed debt obligation associated with the indexed debt obligation provides for the payment, at least annually, of interest at a single fixed rate, andthe indexed payment corresponds to one of the interest payments referred to in paragraph (a),but does not include payments under an indexed debt obligation where, at any time in the year, the taxpayer’s proportionate interest in a payment to be made under the obligation after that time differs from the taxpayer’s proportionate interest in any other payment to be made under the obligation after that time; (paiement exclu)indexed payment means, in relation to an indexed debt obligation, an amount payable under the obligation that is determined by reference to the purchasing power of money; (paiement indexé)inflation adjustment period of an indexed debt obligation means, in relation to a taxpayer,where the taxpayer acquires and disposes of the taxpayer’s interest in the obligation in the same regular adjustment period of the obligation, the period that begins when the taxpayer acquires the interest in the obligation and ends when the taxpayer disposes of the interest, andin any other case, each of the following consecutive periods:the period that begins when the taxpayer acquires the taxpayer’s interest in the obligation and ends at the end of the regular adjustment period of the obligation in which the taxpayer acquires the interest in the obligation,each succeeding regular adjustment period of the obligation throughout which the taxpayer holds the interest in the obligation, andwhere the taxpayer does not dispose of the interest in the obligation at the end of a regular adjustment period of the obligation, the period that begins immediately after the last period referred to in subparagraphs (i) and (ii) and that ends when the taxpayer disposes of the interest in the obligation; (période de redressement pour inflation)regular adjustment period of an indexed debt obligation meanswhere the terms or conditions of the obligation provide that, while the obligation is outstanding, indexed payments are to be made at regular intervals not exceeding 12 months in length, each of the following periods:the period that begins when the obligation is issued and ends when the first indexed payment is required to be made, andeach succeeding period beginning when an indexed payment is required to be made and ending when the next indexed payment is required to be made,where paragraph (a) does not apply and the obligation is outstanding for less than 12 months, the period that begins when the obligation is issued and ends when the obligation ceases to be outstanding, andin any other case, each of the following periods:the 12-month period that begins when the obligation is issued,each succeeding 12-month period throughout which the obligation is outstanding, andwhere the obligation ceases to be outstanding at a time other than the end of a 12-month period referred to in subparagraph (i) or (ii), the period that commences immediately after the last period referred to in those subparagraphs and that ends when the obligation ceases to be outstanding. (période de redressement normale)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-435, s. 4
Prescribed Federal Crown Corporations
For the purposes of subsections 27(2) and (3), the definition private corporation in subsection 89(1) and subsection 124(3) of the Act, the following are prescribed federal Crown corporations:Canada Deposit Insurance Corporation;Canada Hibernia Holding Corporation;Canada Lands Company Limited;Canada Mortgage and Housing Corporation;Canada Post Corporation;Canadian Broadcasting Corporation;Cape Breton Development Corporation;Freshwater Fish Marketing Corporation;Royal Canadian Mint;VIA Rail Canada Inc; andProject Deliver II Ltd.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/84-744, s. 1; SOR/85-175, s. 1; SOR/86-1092, s. 18; 1991, c. 10, s. 19; SOR/91-174, s. 1; SOR/91-557, s. 1; SOR/91-603, s. 1; SOR/94-405, s. 1; SOR/94-686, s. 39(F); SOR/97-28, s. 1; 2001, c. 22, s. 22; SOR/2003-397, s. 1; SOR/2018-160, s. 1
[Repealed, SOR/2001-295, s. 5]Prescribed Amounts and Areas
For the purposes of paragraph 12(1)(x) of the Act, prescribed amount meansan amount paid to a corporation by the Native Economic Development Board created under Order in Council P.C. 1983-3394 of October 31, 1983 pursuant to the Native Economic Development Program or paid to a corporation under the Aboriginal Capital Corporation Program of the Canadian Aboriginal Economic Development Strategy, where all of the shares of the capital stock of the corporation areowned by aboriginal individuals,held in trust for the exclusive benefit of aboriginal individuals,owned by a corporation, all the shares of which are owned by aboriginal individuals or held in trust for the exclusive benefit of aboriginal individuals, orowned or held in a combination of ownership structures described in subparagraph (i), (ii) or (iii)and the purpose of the corporation is to provide loans, loan guarantees, bridge financing, venture capital, lease financing, surety bonding or other similar financing services to aboriginal enterprises;prescribed assistance within the meaning assigned by section 6702;an amount that is the portion of a student loan forgiven under section 9.2 of the Canada Student Financial Assistance Act or under section 11.1 of the Canada Student Loans Act;an amount that is the portion of a student loan forgiven under a provincial program that would be a prescribed amount because of paragraph (c) if section 11.1 of the Canada Student Loans Act or 9.2 of the Canada Student Financial Assistance Act applied to loans under that program;an emissions allowance issued to the taxpayer under the laws of Canada or a province; oran amount that is a non-repayable contribution in respect of battery cell or battery module production in Canada and that is paid under the terms ofthe special contribution agreement of May 5, 2023 between the Government of Canada and 1000511515 Ontario Inc., orthe special contribution agreement of July 5, 2023 between the Government of Canada and NextStar Energy Inc.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1136, s. 12; SOR/88-312, s. 2; SOR/90-120, s. 1; SOR/91-276, s. 1; SOR/94-686, s. 79(F); 2011, c. 24, s. 88; 2016, c. 12, s. 81; 2017, c. 33, s. 100SOR/2024-9, s. 1
[Repealed, SOR/2001-295, s. 6][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-295, s. 6
[Repealed, SOR/93-440, s. 1][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-440, s. 1
An area is a prescribed northern zone for a taxation year for the purposes of section 110.7 of the Act where it isthe Yukon Territory, the Northwest Territories or Nunavut;those parts of British Columbia, Alberta and Saskatchewan that lie north of 57°30‘N latitude;that part of Manitoba that liesnorth of 56°20‘N latitude, ornorth of 52°30‘N latitude and east of 95°25‘W longitude;that part of Ontario that liesnorth of 52°30‘N latitude, ornorth of 51°05‘N latitude and east of 89°10‘W longitude;that part of Quebec that liesnorth of 51°05‘N latitude, ornorth of the Gulf of St. Lawrence and east of 63°00‘W longitude;Labrador, including Belle Isle; orHaida Gwaii.An area is a prescribed intermediate zone for a taxation year for the purposes of section 110.7 of the Act where it is Anticosti Island, the Magdalen Islands or Sable Island, or where it is not part of a prescribed northern zone referred to in subsection (1) for the year and isthat part of British Columbia that liesnorth of 55°35‘N latitude,north of 55°00‘N latitude and east of 122°00‘W longitude, ornorth of 55°13′N latitude and east of 123°16′W longitude;that part of Alberta that lies north of 55°00‘N latitude;that part of Saskatchewan that liesnorth of 55°00‘N latitude,north of 54°15‘N latitude and east of 107°00‘W longitude, ornorth of 53°20‘N latitude and east of 103°00‘W longitude;that part of Manitoba that liesnorth of 53°20‘N latitude,north of 52°10‘N latitude and east of 97°40‘W longitude, ornorth of 51°30‘N latitude and east of 96°00‘W longitude;that part of Ontario that lies north of 50°35‘N latitude; orthat part of Quebec that liesnorth of 50°35‘N latitude and west of 79°00‘W longitude,north of 49°00‘N latitude, east of 79°00‘W longitude and west of 74°00‘W longitude,north of 50°00‘N latitude, east of 74°00‘W longitude and west of 70°00‘W longitude,north of 50°45‘N latitude, east of 70°00‘W longitude and west of 65°30‘W longitude, ornorth of the Gulf of St. Lawrence, east of 65°30‘W longitude and west of 63°00‘W longitude.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-440, s. 2; 2007, c. 35, s. 79SOR/2024-231, s. 20SOR/2025-97, s. 1
In this section,member of the taxpayer’s household includes the taxpayer; (membre de la maisonnée du contribuable)designated city means St. John’s, Halifax, Moncton, Quebec City, Montreal, Ottawa, Toronto, North Bay, Winnipeg, Saskatoon, Calgary, Edmonton and Vancouver. (ville désignée)For the purposes of this section and section 110.7 of the Act, the trip cost to a taxpayer in respect of a trip made by an individual who, at the time the trip was made, was a member of the taxpayer’s household is the least ofthe amount of employer-provided travel benefits, as defined in subsection 110.7(6) of the Act, that is claimed by the taxpayer in respect of the trip;the total ofthe amount of travel assistance described in paragraph (a) of the definition employer-provided travel benefits in subsection 110.7(6) of the Act in respect of the trip, andtravel expenses incurred by the taxpayer, or the spouse or common-law partner of the taxpayer, for the trip; andthe lowest return airfare ordinarily available, at the time the trip was made, to the individual for flights between the place in which the individual resided immediately before the trip, or the airport nearest thereto, and the designated city that is nearest to that place.In determining the trip cost to the taxpayer in respect of the trip, if the amount determined under paragraph (2)(a) is nil, subsection (2) is to be read without reference to that paragraph.For the purposes of subsection (2), the amounts claimed by the taxpayer in paragraph (2)(a) in respect of a trip are deemed to be nil, unless the taxpayer was dealing at arm’s length with the employer at the time that the employer-provided travel benefits, as defined in subsection 110.7(6) of the Act, were provided to the taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/88-312, s. 3; SOR/93-440, s. 32022, c. 5, s. 7
For the purposes of subsection 80.3(4) of the Act, prescribed drought regions in respect ofthe 1995 calendar year arein Manitoba, the Local Government Districts of Alonsa, Fisher, Grahamdale, Grand Rapids and Mountain (South), the areas designated under The Northern Affairs Act (Manitoba) as the communities of Camperville, Crane River, Duck Bay, Homebrook, Mallard, Meadow Portage, Rock Ridge, Spence Lake and Waterhen, the Rural Municipalities of Eriksdale, Lawrence, Mossey River, Ste. Rose and Siglunes, and Skownan,in Saskatchewan, the Rural Municipalities of Antelope Park, Battle River, Beaver River, Biggar, Blaine Lake, Britannia, Buffalo, Cut Knife, Douglas, Eagle Creek, Eldon, Eye Hill, Frenchman Butte, Glenside, Grandview, Grass Lake, Great Bend, Heart’s Hill, Hillsdale, Kindersley, Loon Lake, Manitou Lake, Mariposa, Mayfield, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milton, Mountain View, North Battleford, Oakdale, Paynton, Parkdale, Perdue, Pleasant Valley, Prairie, Prairiedale, Progress, Redberry, Reford, Round Hill, Round Valley, Rosemont, Senlac, Spiritwood, Tramping Lake, Turtle River, Wilton and Winslow, andin Alberta, the Counties of Beaver, Camrose, Flagstaff, Lamont, Minburn, Paintearth, Smoky Lake, St. Paul, Strathcona, Thorhild, Two Hills and Vermilion River, the Municipal Districts of Bonnyville, MacKenzie, Northern Lights, Provost and Wainwright, and Special Areas 2, 3 and 4;the 1997 calendar year arein Ontario, the Counties of Hastings and Renfrew,Nova Scotia,in Manitoba, the Rural Municipalities of Albert, Alonsa, Archie, Arthur, Birtle, Boulton, Brenda, Cameron, Clanwilliam, Dauphin, Edward, Ellice, Glenella, Grahamdale, Harrison, Lakeview, Langford, Lansdowne, Lawrence, McCreary, Miniota, Minto, Morton, Ochre River, Park (South), Pipestone, Rosedale, Rossburn, Russell, Ste. Rose, Shellmouth, Shoal Lake, Sifton, Siglunes, Silver Creek, Strathclair, Turtle Mountain, Wallace, Westbourne, Whitewater and Winchester,in Saskatchewan, the Rural Municipalities of Abernethy, Antelope Park, Antler, Argyle, Baildon, Bengough, Benson, Big Stick, Biggar, Bratt’s Lake, Brock, Brokenshell, Browning, Buchanan, Calder, Caledonia, Cambria, Cana, Chester, Chesterfield, Churchbridge, Clinworth, Coalfields, Cote, Cymri, Deer Forks, Elcapo, Elmsthorpe, Emerald, Enniskillen, Enterprise, Estevan, Excel, Eye Hill, Fertile Belt, Fillmore, Foam Lake, Francis, Fox Valley, Garry, Glenside, Golden West, Good Lake, Grandview, Grass Lake, Grayson, Griffin, Happyland, Happy Valley, Hart Butte, Hazelwood, Heart’s Hill, Indian Head, Insinger, Ituna Bon Accord, Invermay, Kellross, Key West, Keys, Kingsley, Lajord, Lake Alma, Lake Johnston, Lake of The Rivers, Langenburg, Laurier, Lipton, Livingston, Lomond, Maple Creek, Mariposa, Martin, Maryfield, McLeod, Milton, Montmartre, Moose Creek, Moose Jaw, Moose Mountain, Moosomin, Mountain View, Mount Pleasant, North Qu’Appelle, Norton, Oakdale, Orkney, Old Post, Poplar Valley, Prairie, Prairiedale, Progress, Reciprocity, Redburn, Reford, Rocanville, Rosemount, St. Philips, Saltcoats, Scott, Silverwood, Sliding Hills, Souris Valley, South Qu’Appelle, Spy Hill, Stanley, Stonehenge, Storthoaks, Surprise Valley, Tecumseh, Terrell, The Gap, Tramping Lake, Tullymet, Wallace, Walpole, Waverley, Wawken, Wellington, Weyburn, Willow Bunch, Willowdale, Winslow and Wolseley, andin Alberta, the County of Forty Mile, the Municipal Districts of Acadia Valley, Cypress, Pincher Creek, Provost and Willow Creek, and Special Areas 2, 3 and 4;the 1998 calendar year arein Ontario, the Counties of Bruce, Grey, Huron and Oxford, and the Districts of Nipissing, Parry Sound, Sudbury and Thunder Bay,in Nova Scotia, the Counties of Annapolis, Colchester, Cumberland, Digby, Hants and Kings,in Saskatchewan, the Rural Municipalities of Aberdeen, Antelope Park, Arlington, Auvergne, Battle River, Bayne, Beaver River, Biggar, Blaine Lake, Blucher, Bone Creek, Britannia, Buffalo, Canaan, Chaplin, Chesterfield, Clinworth, Corman Park, Coteau, Coulee, Cut Knife, Douglas, Dundurn, Eagle Creek, Eldon, Enfield, Excelsior, Eye Hill, Fertile Valley, Frenchman Butte, Frontier, Glen Bain, Glen McPherson, Glenside, Grandview, Grant, Grass Lake, Grassy Creek, Gravelbourg, Great Bend, Harris, Hart Butte, Heart’s Hill, Hillsdale, Kindersley, King George, Lac Pelletier, Lacadena, Laird, Lake of The Rivers, Lawtonia, Lone Tree, Loon Lake, Loreburn, Mankota, Manitou Lake, Maple Bush, Mariposa, Marriott, Mayfield, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montrose, Morse, Mountain View, Newcombe, North Battleford, Oakdale, Old Post, Parkdale, Paynton, Perdue, Pinto Creek, Pleasant Valley, Poplar Valley, Prairie, Prairiedale, Progress, Redberry, Reford, Reno, Riverside, Rosedale, Rosemount, Round Hill, Round Valley, Rosthern, Rudy, St. Andrews, Saskatchewan Landing, Senlac, Shamrock, Snipe Lake, Stonehenge, Swift Current, Tramping Lake, Turtle River, Val Marie, Vanscoy, Victory, Waverly, Webb, Whiska Creek, White Valley, Willow Bunch, Wilton, Winslow, Wise Creek, and Wood River, andin Alberta, the Counties of Beaver, Camrose, Flagstaff, Grande Prairie, Lamont, Minburn, Paintearth, St. Paul, Smoky Lake, Stettler, Two Hills and Vermilion River, the Municipal Districts of Acadia, Big Lakes, Birch Hills, Bonnyville, Clear Hills, East Peace, Fairview, Greenview, Northern Lights, Peace, Provost, Saddle Hills, Smoky River, Spirit River, Starland, Wainwright and Yellowhead, and Special Areas 2, 3 and 4;the 1999 calendar year arein Nova Scotia, the Counties of Annapolis, Colchester, Cumberland, Digby, Hants, Kings and Yarmouth,in British Columbia, the Peace River Regional District,in Saskatchewan, the Rural Municipalities of Beaver River and Loon Lake, andin Alberta, the Counties of Athabaska, Barrhead, Birch Hills, Grande Prairie, Lac Ste. Anne, Lakeland, Lamont, Saddle Hills, Smoky Lake, St. Paul, Thorhild, Two Hills, Westlock and Woodlands, and the Municipal Districts of Big Lakes, Bonnyville, Clear Hills, East Peace, Fairview, Greenview, Lesser Slave Lake, MacKenzie, Northern Lights, Peace, Smoky River and Spirit River;the 2000 calendar year arein British Columbia, the Regional District of East Kootenay,in Saskatchewan, the Rural Municipalities of Antelope Park, Battle River, Big Stick, Biggar, Blaine Lake, Buffalo, Chesterfield, Clinworth, Cut Knife, Deer Forks, Douglas, Duck Lake, Eagle Creek, Enterprise, Eye Hill, Fox Valley, Glenside, Grandview, Grass Lake, Great Bend, Happyland, Hearth’s Hill, Kindersley, Laird, Leask, Maple Creek, Mariposa, Marriott, Mayfield, Meeting Lake, Milton, Mountain View, Newcombe, North Battleford, Oakdale, Paynton, Piapot, Pleasant Valley, Prairiedale, Progress, Redberry, Reford, Reno, Rosemount, Rosthern, Round Valley, Senlac, St. Louis, Tramping Lake and Winslow, andin Alberta, the Counties of Barrhead, Birch Hills, Cardston, Cypress, Flagstaff, Forty Mile, Grande Prairie, Kneehill, Lac Ste. Anne, Lethbridge, Newell, Paintearth, Saddle Hills, Starland, Stettler, Vulcan, Warner, Wheatland and Woodlands, the Improvement Districts of Kananaskis and Waterton, the Municipal Districts of Acadia, Fairview, Foothills, Greenview, Peace, Pincher Creek, Provost, Ranchland, Smoky River, Spirit River, Taber and Willow Creek, and the Municipality of Crowsnest Pass and Special Areas 2, 3, and 4;the 2001 calendar year arein Ontario, the Counties of Elgin, Essex, Haldimand, Hastings, Huron, Lambton, Lanark, Lennox and Addington, Middlesex, Norfolk, Northumberland, Oxford and Renfrew, the United Counties of Leeds and Grenville, the Frontenac Management Board, the Regional Municipality of Niagara, the Cities of Brant County, Brantford, Hamilton, Ottawa and Prince Edward County and the Municipality of Chatham-Kent,in Quebec, the Magdalen Islands,in Nova Scotia, the Counties of Annapolis, Antigonish, Cape Breton, Colchester, Cumberland, Digby, Hants, Inverness, Kings, Pictou, Richmond and Victoria,in New Brunswick, the Counties of Albert, Kent and Westmorland,in Manitoba, the Rural Municipality of Kelsey,in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and Okanagan-Similkameen,Prince Edward Island,in Saskatchewan, the Rural Municipalities of Aberdeen, Abernethy, Antelope Park, Arborfield, Arlington, Arm River, Auvergne, Baildon, Barrier Valley, Battle River, Bayne, Beaver River, Bengough, Big Arm, Big Quill, Big River, Big Stick, Biggar, Birch Hills, Bjorkdale, Blaine Lake, Blucher, Bone Creek, Bratt’s Lake, Britannia, Brokenshell, Buchanan, Buckland, Buffalo, Calder, Caledonia, Cana, Canaan, Canwood, Carmichael, Caron, Chaplin, Chester, Chesterfield, Churchbridge, Clayton, Clinworth, Colonsay, Connaught, Corman Park, Cote, Coteau, Coulee, Craik, Cupar, Cut Knife, Deer Forks, Douglas, Duck Lake, Dufferin, Dundurn, Eagle Creek, Edenwold, Elcapo, Eldon, Elfros, Elmsthorpe, Emerald, Enfield, Enterprise, Excel, Excelsior, Eye Hill, Eyebrow, Fertile Valley, Fish Creek, Flett’s Springs, Foam Lake, Fox Valley, Francis, Frenchman Butte, Frontier, Garden River, Garry, Glen Bain, Glen Mcpherson, Glenside, Good Lake, Grandview, Grant, Grass Lake, Grassy Creek, Gravelbourg, Grayson, Great Bend, Gull Lake, Happy Valley, Happyland, Harris, Hart Butte, Hazel Dell, Heart’s Hill, Hillsborough, Hillsdale, Hoodoo, Hudson Bay, Humboldt, Huron, Indian Head, Insinger, Invergordon, Invermay, Ituna Bon Accord, Kellross, Kelvington, Key West, Keys, Kindersley, King George, Kingsley, Kinistino, Kutawa, Lac Pelletier, Lacadena, Laird, Lajord, Lake Johnston, Lake Lenore, Lake of The Rivers, Lakeland, Lakeside, Lakeview, Last Mountain Valley, Lawtonia, Leask, Leroy, Lipton, Livingston, Lone Tree, Longlaketon, Loon Lake, Loreburn, Lost River, Lumsden, Manitou Lake, Mankota, Maple Bush, Maple Creek, Mariposa, Marquis, Marriott, Mayfield, Mccraney, Mckillop, McLeod, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montmartre, Montrose, Moose Jaw, Moose Range, Morris, Morse, Mount Hope, Mountain View, Newcombe, Nipawin, North Battleford, North Qu’Appelle, Norton, Oakdale, Old Post, Orkney, Paddockwood, Parkdale, Paynton, Pense, Perdue, Piapot, Pinto Creek, Pittville, Pleasant Valley, Pleasantdale, Ponass Lake, Poplar Valley, Porcupine, Prairie Rose, Prairiedale, Preeceville, Prince Albert, Progress, Redberry, Redburn, Reford, Reno, Riverside, Rodgers, Rosedale, Rosemount, Rosthern, Round Hill, Round Valley, Rudy, Saltcoats, Sarnia, Saskatchewan Landing, Sasman, Scott, Senlac, Shamrock, Shellbrook, Sherwood, Sliding Hills, Snipe Lake, South Qu’Appelle, Spalding, Spiritwood, St. Andrews, St. Louis, St. Peter, St. Philips, Stanley, Star City, Stonehenge, Surprise Valley, Sutton, Swift Current, Terrell, The Gap, Three Lakes, Tisdale, Torch River, Touchwood, Tramping Lake, Tullymet, Turtle River, Usborne, Val Marie, Vanscoy, Victory, Viscount, Wallace, Waverley, Webb, Wheatlands, Whiska Creek, White Valley, Willner, Willow Bunch, Willow Creek, Wilton, Winslow, Wise Creek, Wolseley, Wolverine, Wood Creek, Wood River and Wreford,Alberta, andin Newfoundland and Labrador, the island of Newfoundland;the 2002 calendar year arein Ontario, the Counties of Bruce, Elgin, Lambton and Middlesex, the Municipality of Chatham-Kent, the District of Cochrane and the Regional Municipalities of Halton and Peel,in Manitoba, the Rural Municipalities of Albert, Alonsa, Archie, Argyle, Arthur, Birtle, Blanshard, Brenda, Cameron, Clanwilliam, Coldwell, Cornwallis, Daly, Dauphin, Edward, Ellice, Elton, Eriksdale, Ethelbert, Gilbert Plains, Glenella, Glenwood, Grahamdale, Grandview, Hamiota, Harrison, Hillsburg, Kelsey, Langford, Lansdowne, Lawrence, McCreary, Miniota, Minitonas, Minto, Morton, Mossey River, Mountain, North Cypress, Oakland, Ochre River, Odanah, Park, Pipestone, Riverside, Roblin, Rosedale, Rossburn, Russell, Saskatchewan, Shell River, Shellmouth-Boulton, Shoal Lake, Sifton, Siglunes, Silver Creek, South Cypress, St. Laurent, Ste. Rose, Strathclair, Strathcona, Swan River, Turtle Mountain, Wallace, Whitehead, Whitewater, Winchester and Woodworth, and the unorganized territory that is north of the Rural Municipality of Alonsa, between that rural municipality and the south shore of Lake Manitoba,in British Columbia, the Peace River Regional District,in Saskatchewan, the Rural Municipalities of Aberdeen, Abernethy, Antelope Park, Antler, Arborfield, Argyle, Arlington, Arm River, Auvergne, Baildon, Barrier Valley, Battle River, Bayne, Beaver River, Big Arm, Big Quill, Big River, Big Stick, Biggar, Birch Hills, Bjorkdale, Blaine Lake, Blucher, Bone Creek, Britannia, Buchanan, Buckland, Buffalo, Calder, Cana, Canaan, Canwood, Carmichael, Caron, Chaplin, Chesterfield, Churchbridge, Clayton, Clinworth, Colonsay, Connaught, Corman Park, Cote, Coteau, Coulee, Craik, Cupar, Cut Knife, Deer Forks, Douglas, Duck Lake, Dufferin, Dundurn, Eagle Creek, Edenwold, Elcapo, Eldon, Elfros, Emerald, Enfield, Enniskillen, Enterprise, Excelsior, Eye Hill, Eyebrow, Fertile Belt, Fertile Valley, Fish Creek, Flett’s Springs, Foam Lake, Fox Valley, Frenchman Butte, Frontier, Garden River, Garry, Glen Bain, Glen McPherson, Glenside, Good Lake, Grandview, Grant, Grass Lake, Grassy Creek, Gravelbourg, Grayson, Great Bend, Gull Lake, Happyland, Harris, Hazel Dell, Hazelwood, Heart’s Hill, Hillsborough, Hillsdale, Hoodoo, Hudson Bay, Humboldt, Huron, Insinger, Invergordon, Invermay, Ituna Bon Accord, Kellross, Kelvington, Keys, Kindersley, King George, Kingsley, Kinistino, Kutawa, Lac Pelletier, Lacadena, Laird, Lake Johnston, Lake Lenore, Lakeland, Lakeside, Lakeview, Langenburg, Last Mountain Valley, Lawtonia, Leask, Leroy, Lipton, Livingston, Lone Tree, Longlaketon, Loon Lake, Loreburn, Lost River, Lumsden, Manitou Lake, Mankota, Maple Bush, Maple Creek, Mariposa, Marquis, Marriott, Martin, Maryfield, Mayfield, McCraney, McKillop, McLeod, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montrose, Moose Creek, Moose Jaw, Moose Mountain, Moose Range, Moosomin, Morris, Morse, Mount Hope, Mount Pleasant, Mountain View, Newcombe, Nipawin, North Battleford, North Qu’appelle, Oakdale, Orkney, Paddockwood, Parkdale, Paynton, Pense, Perdue, Piapot, Pinto Creek, Pittville, Pleasant Valley, Pleasantdale, Ponass Lake, Porcupine, Prairie Rose, Prairiedale, Preeceville, Prince Albert, Progress, Reciprocity, Redberry, Redburn, Reford, Reno, Riverside, Rocanville, Rodgers, Rosedale, Rosemount, Rosthern, Round Hill, Round Valley, Rudy, Saltcoats, Sarnia, Saskatchewan Landing, Sasman, Senlac, Shamrock, Shellbrook, Sherwood, Silverwood, Sliding Hills, Snipe Lake, Spalding, Spiritwood, Spy Hill, St. Andrews, St. Louis, St. Peter, St. Philips, Stanley, Star City, Storthoaks, Sutton, Swift Current, Three Lakes, Tisdale, Torch River, Touchwood, Tramping Lake, Tullymet, Turtle River, Usborne, Val Marie, Vanscoy, Victory, Viscount, Wallace, Walpole, Waverley, Wawken, Webb, Wheatlands, Whiska Creek, White Valley, Willner, Willow Creek, Willowdale, Wilton, Winslow, Wise Creek, Wolverine, Wood Creek, Wood River and Wreford, andAlberta;the 2003 calendar year arein Manitoba, the Rural Municipalities of Albert, Alonsa, Archie, Argyle, Armstrong, Arthur, Bifrost, Birtle, Blanshard, Brenda, Cameron, Clanwilliam, Coldwell, Cornwallis, Daly, Dauphin, Edward, Ellice, Elton, Eriksdale, Ethelbert, Fisher, Gilbert Plains, Gimli, Glenella, Glenwood, Grahamdale, Grandview, Hamiota, Harrison, Hillsburg, Kelsey, Lakeview, Langford, Lansdowne, Lawrence, Louise, McCreary, Miniota, Minitonas, Minto, Morton, Mossey River, Mountain, North Cypress, Oakland, Ochre River, Odanah, Park, Pipestone, Riverside, Roblin, Rockwood, Rosedale, Rossburn, Russell, Saskatchewan, Shell River, Shellmouth-Boulton, Shoal Lake, Sifton, Siglunes, Silver Creek, South Cypress, St. Laurent, Ste. Rose, Strathclair, Strathcona, Swan River, Turtle Mountain, Wallace, Westbourne, Whitehead, Whitewater, Winchester, Woodlands and Woodworth, the town of Grand Rapids and the Manitoba Census Consolidated Subdivision no. 19 (unorganized), as that subdivision was developed by Statistics Canada for the 2001 Census,in British Columbia, the Regional Districts of Bulkley-Nechako, Cariboo, Central Kootenay, Central Okanagan, Columbia-Shuswap, East Kootenay, Fort Nelson-Liard, Fraser-Fort George, Kootenay Boundary, North Okanagan, Okanagan-Similkameen, Peace River, Spallumcheen, Squamish-Lillooet and Thompson-Nicola,in Saskatchewan, the Rural Municipalities of Aberdeen, Abernethy, Antelope Park, Antler, Arborfield, Argyle, Barrier Valley, Battle River, Bayne, Beaver River, Benson, Big Quill, Big River, Biggar, Birch Hills, Bjorkdale, Blaine Lake, Blucher, Britannia, Brock, Brokenshell, Browning, Buchanan, Buckland, Buffalo, Calder, Cana, Canaan, Canwood, Chesterfield, Churchbridge, Clayton, Clinworth, Coalfields, Colonsay, Connaught, Corman Park, Cote, Coteau, Coulee, Cupar, Cut Knife, Cymri, Deer Forks, Douglas, Duck Lake, Dufferin, Dundurn, Eagle Creek, Edenwold, Elcapo, Eldon, Elfros, Emerald, Enniskillen, Excelsior, Fertile Belt, Fertile Valley, Fish Creek, Flett’s Springs, Foam Lake, Frenchman Butte, Garden River, Garry, Glenside, Good Lake, Grandview, Grant, Grayson, Great Bend, Griffin, Happyland, Harris, Hazel Dell, Hazelwood, Hillsdale, Hoodoo, Hudson Bay, Humboldt, Insinger, Invergordon, Invermay, Ituna Bon Accord, Kellross, Kelvington, Keys, Kindersley, King George, Kingsley, Kinistino, Kutawa, Lacadena, Laird, Lake Lenore, Lakeland, Lakeside, Lakeview, Langenburg, Last Mountain Valley, Leask, Leroy, Lipton, Livingston, Longlaketon, Loon Lake, Lumsden, Marriott, Martin, Maryfield, Mayfield, McKillop, McLeod, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montrose, Moose Creek, Moose Mountain, Moose Range, Moosomin, Morse, Mount Hope, Mount Pleasant, Mountain View, Newcombe, Nipawin, North Battleford, North Qu’appelle, Oakdale, Orkney, Paddockwood, Parkdale, Paynton, Pense, Perdue, Pittville, Pleasant Valley, Pleasantdale, Ponass Lake, Porcupine, Prairie Rose, Prairiedale, Preeceville, Prince Albert, Reciprocity, Redberry, Redburn, Reford, Riverside, Rocanville, Rosemount, Rosthern, Round Hill, Rudy, Saltcoats, Sarnia, Saskatchewan Landing, Sasman, Shellbrook, Sherwood, Silverwood, Sliding Hills, Snipe Lake, Spalding, Spiritwood, Spy Hill, St. Andrews, St. Louis, St. Peter, St. Philips, Stanley, Star City, Storthoaks, Swift Current, Tecumseh, Three Lakes, Tisdale, Torch River, Touchwood, Tullymet, Turtle River, Usborne, Vanscoy, Victory, Viscount, Wallace, Walpole, Wawken, Webb, Weyburn, Willow Creek, Willowdale, Winslow and Wolverine, andin Alberta, the Counties of Athabasca, Barrhead, Birch Hills, Brazeau, Cardston, Clearwater, Grande Prairie, Kneehill, Lac Ste. Anne, Lacombe, Lakeland, Leduc, Mountain View, Northern Sunrise, Parkland, Ponoka, Red Deer, Saddle Hills, Starland, Thorhild, Wetaskiwin, Woodlands and Yellowhead, the improvement districts of Banff, Jasper Park, Kananaskis, Waterton and Wilmore Wilderness, the municipal districts of Acadia, Big Lakes, Bighorn, Bonnyville, Clear Hills, Fairview, Greenview, MacKenzie, Northern Lights, Peace, Pincher Creek, Ranchland, Smoky River, Spirit River and Willow Creek, the municipalities of Crowsnest Pass and Jasper, and special areas 3 and 4;in the 2004 calendar year arein British Columbia, the Regional District of Fort Nelson-Liard, andin Alberta, the Counties of Beaver, Camrose, Flagstaff, Paintearth, Starland and Stettler, the Municipal Districts of Acadia, Clear Hills, Fairview, Mackenzie and Northern Lights, and Special Areas 2, 3 and 4;the 2006 calendar year arein Ontario, the Territorial Districts of Algoma, Kenora, Manitoulin, Rainy River and Thunder Bay,in British Columbia, the Regional Districts of Bulkley-Nechako, Cariboo, Fraser-Fort George, Kitimat-Stikine and Peace River,in Saskatchewan, the Rural Municipalities of Arlington, Auvergne, Bengough, Big Stick, Bone Creek, Carmichael, Clinworth, Frontier, Glen McPherson, Grassy Creek, Gull Lake, Happy Valley, Hart Butte, Lac Pelletier, Lake Alma, Laurier, Lone Tree, Mankota, Maple Creek, Miry Creek, Old Post, Piapot, Pittville, Poplar Valley, Reno, Surprise Valley, The Gap, Val Marie, Waverley, Webb, Whiska Creek, White Valley, Willow Bunch and Wise Creek, andin Alberta, the Counties of Clear Hills, Grande Prairie and Saddle Hills and the Municipal Districts of Greenview and Northern Lights;the 2007 calendar year arein Ontario, the Cities of Hamilton, Kawartha Lakes and Toronto, the Counties of Brant, Bruce, Dufferin, Elgin, Essex, Frontenac, Grey, Haldimand, Hastings, Huron, Lambton, Lennox and Addington, Middlesex, Northumberland, Norfolk, Oxford, Perth, Peterborough, Prince Edward, Simcoe and Wellington, the Municipality of Chatham-Kent, the Regional Municipalities of Durham, Halton, Niagara, Peel, Waterloo and York, the Territorial Districts of Algoma, Manitoulin and Thunder Bay and the United Counties of Leeds and Grenville,in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and Okanagan-Similkameen,in Saskatchewan, the Rural Municipalities of Arlington, Auvergne, Bengough, Big Stick, Bone Creek, Carmichael, Coulee, Excel, Excelsior, Frontier, Glen Bain, Glen McPherson, Grassy Creek, Gull Lake, Happy Valley, Hart Butte, Lac Pelletier, Lake of the Rivers, Lawtonia, Lone Tree, Mankota, Maple Creek, Miry Creek, Morse, Old Post, Piapot, Pinto Creek, Pittville, Poplar Valley, Reno, Riverside, Saskatchewan Landing, Stonehenge, Swift Current, Val Marie, Waverley, Webb, Whiska Creek, White Valley, Willow Bunch, Wise Creek and Wood River, andin Alberta, the Counties of Cardston, Cypress, Forty Mile, Lethbridge and Warner, the Municipal Districts of Pincher Creek, Ranchland, Taber and Willow Creek and the Municipality of Crowsnest Pass;the 2008 calendar year arein Manitoba, the Municipality of Killarney-Turtle Mountain and the Rural Municipalities of Albert, Arthur, Brenda, Cameron, Edward, Glenwood, Morton, Pipestone, Riverside, Sifton, Whitewater and Winchester,in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and Peace River,in Saskatchewan, the Rural Municipalities of Argyle, Arlington, Auvergne, Baildon, Bengough, Benson, Bone Creek, Bratt’s Lake, Brokenshell, Browning, Caledonia, Cambria, Caron, Coalfields, Cymri, Elmsthorpe, Enniskillen, Estevan, Excel, Francis, Frontier, Glen Bain, Glen McPherson, Grassy Creek, Gravelbourg, Griffin, Hillsborough, Happy Valley, Hart Butte, Key West, Lac Pelletier, Lajord, Lake Alma, Lake Johnston, Lake of the Rivers, Laurier, Lomond, Lone Tree, Mankota, Marquis, Moose Creek, Moose Jaw, Mount Pleasant, Norton, Old Post, Pense, Pinto Creek, Poplar Valley, Redburn, Reciprocity, Rodgers, Scott, Shamrock, Sherwood, Souris Valley, Surprise Valley, Stonehenge, Storthoaks, Sutton, Tecumseh, Terrell, The Gap, Val Marie, Waverley, Wellington, Weyburn, Whiska Creek, White Valley, Willow Bunch, Wise Creek and Wood River, andin Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie and Saddle Hills and the Municipal Districts of Fairview and Spirit River;the 2009 calendar year arein Manitoba, the Rural Municipalities of Albert, Archie. Arthur, Birtle, Brenda, Cameron, Clanwilliam, Edward, Ellice, Harrison, Hillsburg, Miniota, Minitonas, Park, Pipestone, Rossburn, Russell, Shellmouth-Boulton, Shell River, Shoal Lake, Sifton, Silver Creek, Strathclair, Swan River, Wallace, Winchester and Woodworth and Census Division No. 20, Unorganized, South Part, as developed by Statistics Canada for the 2006 Census,in British Columbia, the Census Subdivisions Bulkley-Nechako B and E, Cariboo D, E, G, H and J to L, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Columbia-Shuswap C to F, Kootenay Boundary B to E, North Okanagan B and D to F, Okanagan-Similkameen A to H, Peace River C to E, Spallumcheen, Squamish-Lillooet A to C and Thompson-Nicola A (Wells Gray Country), B (Thompson Headwaters), E (Bonaparte Plateau), I (Blue Sky Country), J (Copper Desert Country), L, M, N, O (Lower North Thompson) and P (Rivers and the Peaks), as these subdivisions were developed by Statistics Canada for the 2006 Census,in Saskatchewan, the Rural Municipalities of Aberdeen, Antelope Park, Antler, Argyle, Arlington, Auvergne, Battle River, Beaver River, Benson, Biggar, Blucher, Bone Creek, Britannia, Brock, Browning, Buchanan, Buffalo, Calder, Cana, Canaan, Chaplin, Chesterfield, Churchbridge, Clayton, Clinworth, Coalfields, Corman Park, Cote, Coteau, Coulee, Cut Knife, Deer Forks, Dundurn, Eagle Creek, Elcapo, Eldon, Emerald, Enfield, Enniskillen, Estevan, Excelsior, Eye Hill, Fertile Belt, Fertile Valley, Foam Lake, Fox Valley, Frenchman Butte, Frontier, Garry, Glen Bain, Glen McPherson, Glenside, Good Lake, Grandview, Grant, Grass Lake, Grassy Creek, Gravelbourg, Grayson, Happyland, Harris, Hazel Dell, Hazelwood, Heart’s Hill, Hillsdale, Insinger, Invermay, Keys, Kindersley, King George, Kingsley, Lacadena, Lac Pelletier, Lawtonia, Langenburg, Livingston, Lone Tree, Loon Lake, Loreburn, Manitou Lake, Mankota, Maple Bush, Mariposa, Marriott, Martin, Maryfield, Mayfield, McLeod, Meadow Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montrose, Moose Creek, Moose Mountain, Moosomin, Morse, Mountain View, Mount Pleasant, Newcombe, North Battleford, Oakdale, Orkney, Parkdale, Paynton, Perdue, Pinto Creek, Pittville, Pleasant Valley, Prairiedale, Preeceville, Progress, Reciprocity, Reford, Reno, Riverside, Rocanville, Rosedale, Rosemount, Round Valley, Rudy, Saltcoats, Saskatchewan Landing, Senlac, Shamrock, Silverwood, Sliding Hills, Snipe Lake, Spy Hill, St. Andrews, St. Philips, Stanley, Storthoaks, Swift Current, Tecumseh, Tramping Lake, Turtle River, Val Marie, Vanscoy, Victory, Wallace, Walpole, Waverley, Wawken, Webb, Whiska Creek, White Valley, Willowdale, Wilton, Winslow, Wise Creek and Wood River, andin Alberta, the Cities of Calgary and Edmonton, the Counties of Athabasca, Barrhead, Beaver, Birch Hills, Brazeau, Camrose, Clear Hills, Clearwater, Flagstaff, Grande Prairie, Kneehill, Lac La Biche, Lacombe, Lac Ste. Anne, Lamont, Leduc, Minburn, Mountain View, Northern Sunrise, Paintearth, Parkland, Ponoka, Red Deer, Rocky View, Saddle Hills, Smoky Lake, St. Paul, Starland, Stettler, Strathcona, Sturgeon, Thorhild, Two Hills, Vermilion River, Westlock, Wetaskiwin, Wheatland, Woodlands and Yellowhead, Improvement District No. 13, the Municipal Districts of Acadia, Big Lakes, Bonnyville, Fairview, Greenview, Lesser Slave River, Northern Lights, Opportunity, Peace, Provost, Smoky River, Spirit River and Wainwright, Special Areas No. 2, 3 and 4 and the Town of Drumheller;the 2010 calendar year arein British Columbia, the Census Subdivisions Bulkley-Nechako B to F, Cariboo A to F and I to K, Fraser-Fort George A and C to H and Peace River B to E, as these subdivisions were developed by Statistics Canada for the 2006 Census, andin Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie, Northern Lights, Northern Sunrise, Saddle Hills, Woodlands and Yellowhead, the Improvement District No. 12 and the Municipal Districts of Big Lakes, Fairview, Greenview, Peace, Smoky River and Spirit River; andthe 2012 calendar year arein Ontario, the Census Divisions Brant, Haldimand-Norfolk, Hamilton and Ottawa, as these divisions were developed by Statistics Canada for the 2011 Census, the Counties of Bruce, Dufferin, Frontenac, Grey, Hastings, Huron, Lanark, Lennox and Addington, Northumberland, Oxford, Perth, Prince Edward, Renfrew and Wellington, the Districts of Parry Sound and Rainy River, as these districts were developed by Statistics Canada for the 2011 Census, the District Municipality of Muskoka, the Regional Municipalities of Halton, Niagara and Waterloo, the Territorial Districts of Algoma and Manitoulin and the United Counties of Prescott and Russell,in Quebec, the Regional County Municipalities of Les Collines-de-l’Outaouais, Papineau, Pontiac and Temiscamingue and the Town of Gatineau,in Manitoba, Census Division No. 1, Unorganized, as developed by Statistics Canada for the 2011 Census, and the Rural Municipalities of De Salaberry, Franklin, Hanover, La Broquerie, Montcalm, Morris, Piney, Reynolds, Rhineland, Ritchot, Ste. Anne, Stuartburn, Tache and Whitemouth,in British Columbia, the Peace River Regional District, andin Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie, Mackenzie, Northern Lights and Saddle Hills and the Municipal Districts of Fairview, Peace and Spirit River.For the purposes of this section, a city, county, district or other municipality is deemed to include any area that is surrounded by the territory of the city, county, district or other municipality.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-195, s. 1; SOR/92-732, s. 1; SOR/93-300, s. 1; SOR/99-240, s. 1; SOR/2001-3, s. 1; SOR/2001-288, s. 1; SOR/2002-312, s. 1; SOR/2004-45, s. 1; SOR/2004-260, s. 1; SOR/2005-292, s. 1; SOR/2007-213, s. 1; 2009, c. 31, s. 16; SOR/2010-93, s. 24(F); SOR/2011-32, s. 1; SOR/2013-206, s. 1
For the purposes of subsections 80.3(4) and (4.1) of the Act, the following regions are prescribed drought regions or prescribed regions of flood or excessive moisture:in respect of the 2014 calendar yearin Manitoba, Census Divisions No. 17, Unorganized, and No. 20, Unorganized, South Part, as these divisions were developed by Statistics Canada for the 2011 Census, the Municipality of Shoal Lake, the Reserve of Valley River 63A and the Rural Municipalities of Albert, Alonsa, Archie, Arthur, Birtle, Blanshard, Brenda, Cameron, Clanwilliam, Coldwell, Daly, Dauphin, Edward, Ellice, Elton, Eriksdale, Ethelbert, Gilbert Plains, Glenella, Glenwood, Grahamdale, Grandview, Hamiota, Harrison, Hillsburg, Killarney-Turtle Mountain, Lakeview, Langford, Lansdowne, Lawrence, McCreary, Miniota, Minitonas, Minto, Morton, Mossey River, Mountain, North Cypress, North Norfolk, Oakland, Ochre River, Odanah, Park, Pipestone, Portage la Prairie, Riverside, Rosedale, Rossburn, Russell, Saskatchewan, Shell River, Shellmouth-Boulton, Sifton, Siglunes, Silver Creek, South Cypress, St. Laurent, Ste. Rose, Strathclair, Swan River, Wallace, Westbourne, Whitehead, Whitewater, Winchester, Woodlands and Woodworth,in British Columbia, the Census Subdvisions of Alberni-Clayoquot A, C and D, Bulkley-Nechako A to G, Capital F, Cariboo A to C and I, Comox Valley A, Cowichan Valley F, Fraser-Fort George A and C to H, Nanaimo C and H, Peace River B to E and Powell River D and Part 2 of Census Subdivision Capital H, as these subdivisions were developed by Statistics Canada for the 2011 Census,in Saskatchewan, the Rural Municipalities of Antler, Argyle, Buchanan, Calder, Cana, Churchbridge, Clayton, Cote, Elfros, Emerald, Enniskillen, Fertile Belt, Foam Lake, Garry, Good Lake, Grayson, Hazel Dell, Insinger, Invermay, Ituna Bon Accord, Kelvington, Keys, Lakeview, Langenburg, Livingston, Martin, Maryfield, McLeod, Moose Creek, Moose Mountain, Moosomin, Mount Pleasant, Orkney, Ponass Lake, Preeceville, Reciprocity, Rocanville, Saltcoats, Sasman, Silverwood, Sliding Hills, Spy Hill, St. Philips, Stanley, Storthoaks, Wallace, Walpole, Wawken and Willowdale, andin Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie, Mackenzie, Northern Lights, Northern Sunrise and Saddle Hills and the Municipal Districts of Big Lakes, Fairview, Greenview, Peace, Smoky River and Spirit River;in respect of the 2015 calendar yearin Manitoba, Census Divisions No. 18, Unorganized, East Part, No. 19, Unorganized, No. 20, Unorganized, North and South Parts, and No. 21, Unorganized, as these divisions were developed by Statistics Canada for the 2011 Census, the Municipalities of Ethelbert, Gilbert Plains, Grandview, Minitonas-Bowsman, Mossey River, Roblin, Ste. Rose and Swan Valley West, the Reserve Valley River 63A, the Rural Municipalities of Alonsa, Dauphin, Grahamdale, Lakeshore, Mountain and Riding Mountain West and the portion of the Rural Municipality of West Interlake that corresponds to the territory of the Rural Municipality of Siglunes, as it existed on December 31, 2014,in British Columbia, the Census Subdvisions of Abbotsford, Alberni-Clayoquot A to D and F, Bulkley-Nechako A to G, Burnaby, Capital F and G, Cariboo A to L, Central Coast A and C, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Central Saanich, Columbia-Shuswap A to F, Comox Valley A, B (Lazo North) and C (Puntledge-Black Creek), Cowichan Valley B, F, G and I, East Kootenay A to C and E to G, Fraser Valley A to G, Greater Vancouver A, Kitimat-Stikine B, Kootenay Boundary B to E, Mount Waddington A to D, Nanaimo (City), Nanaimo C and E to H, North Cowichan, North Okanagan B and D to F, North Saanich, Okanagan-Similkameen A to H, Pitt Meadows, Powell River A to D, Saanich, Squamish-Lillooet A to D, Strathcona A, C and D (Oyster Bay-Buttle Lake), Sunshine Coast A, Thompson-Nicola A (Wells Gray Country), B (Thompson Headwaters), E (Bonaparte Plateau), I (Blue Sky Country), J (Copper Desert Country), L (Grasslands), M (Beautiful Nicola Valley-North), N (Beautiful Nicola Valley-South), O (Lower North Thompson) and P (Rivers and the Peaks), Part 2 of Census Subdivision Capital H, as these subdivisions were developed by Statistics Canada for the 2011 Census,in Saskatchewan, the Rural Municipalities of Antelope Park, Arlington, Auvergne, Baildon, Battle River, Beaver River, Bengough, Big River, Big Stick, Biggar, Blaine Lake, Bone Creek, Bratt’s Lake, Britannia, Brokenshell, Buffalo, Calder, Caledonia, Canaan, Canwood, Carmichael, Caron, Chaplin, Chester, Chesterfield, Clayton, Clinworth, Corman Park, Cote, Coteau, Coulee, Craik, Cupar, Cut Knife, Deer Forks, Douglas, Dufferin, Dundurn, Eagle Creek, Edenwold, Eldon, Elmsthorpe, Enfield, Enterprise, Excel, Excelsior, Eye Hill, Eyebrow, Fertile Valley, Fillmore, Fox Valley, Francis, Frenchman Butte, Frontier, Glen Bain, Glen McPherson, Glenside, Grandview, Grass Lake, Grassy Creek, Gravelbourg, Great Bend, Gull Lake, Happy Valley, Happyland, Harris, Hart Butte, Hazel Dell, Heart’s Hill, Hillsborough, Hillsdale, Hudson Bay, Huron, Indian Head, Kelvington, Key West, Keys, Kindersley, King George, Lac Pelletier, Lacadena, Laird, Lajord, Lake Alma, Lake Johnston, Lake of the Rivers, Laurier, Lawtonia, Leask, Livingston, Lone Tree, Longlaketon, Loon Lake, Loreburn, Lost River, Lumsden, Manitou Lake, Mankota, Maple Bush, Maple Creek, Mariposa, Marquis, Marriott, Mayfield, McKillop, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montmartre, Montrose, Moose Jaw, Morse, Mountain View, Newcombe, North Battleford, North Qu’Appelle, Norton, Oakdale, Old Post, Parkdale, Paynton, Pense, Perdue, Piapot, Pinto Creek, Pittville, Pleasant Valley, Poplar Valley, Porcupine, Prairiedale, Preeceville, Progress, Redberry, Redburn, Reford, Reno, Riverside, Rodgers, Rosedale, Rosemount, Round Hill, Round Valley, Rudy, Sarnia, Saskatchewan Landing, Scott, Senlac, Shamrock, Sherwood, Snipe Lake, South Qu’Appelle, Spiritwood, St. Andrews, St. Philips, Stonehenge, Surprise Valley, Sutton, Swift Current, Terrell, The Gap, Tramping Lake, Turtle River, Val Marie, Vanscoy, Victory, Waverley, Webb, Wellington, Weyburn, Wheatlands, Whiska Creek, White Valley, Willow Bunch, Wilton, Winslow, Wise Creek and Wood River, andin Alberta, the portion of the territory of Alberta that is not included in, nor surrounded by, the Improvement Districts No. 12 and 24 and the Regional Municipality of Wood Buffalo;in respect of the 2016 calendar yearin Ontario, the Cities of Barrie, Belleville, Brampton, Burlington, Clarence-Rockland, Cornwall, Hamilton, Kawartha Lakes, Kingston, Markham, Mississauga, Niagara Falls, Oshawa, Ottawa, Peterborough, Pickering, Port Colborne, Quinte West, St. Catharines, Thorold, Toronto, Vaughan and Welland, the Counties of Haldimand, Norfolk and Prince Edward, the Municipalities of Brighton, Centre Hastings, Clarington, Highlands East, Marmora and Lake, North Grenville, Port Hope, South Dundas, The Nation, Trent Hills, Trent Lakes and Tweed, the Towns of Ajax, Aurora, Bracebridge, Bradford West Gwillimbury, Caledon, East Gwillimbury, Fort Erie, Georgina, Gravenhurst, Greater Napanee, Grimsby, Halton Hills, Innisfil, Lincoln, Milton, Mono, New Tecumseth, Newmarket, Niagara-on-the-Lake, Oakville, Pelham, Richmond Hill, Wasaga Beach, Whitby and Whitchurch-Stouffville, the Townships of Addington Highlands, Adjala-Tosorontio, Alfred and Plantagenet, Algonquin Highlands, Alnwick/Haldimand, Amaranth, Asphodel-Norwood, Athens, Augusta, Beckwith, Brock, Cavan Monaghan, Central Frontenac, Champlain, Clearview, Cramahe, Douro-Dummer, Drummond/North Elmsley, East Hawkesbury, Edwardsburgh/Cardinal, Elizabethtown-Kitley, Essa, Front of Yonge, Frontenac Islands, Havelock-Belmont-Methuen, King, Lake of Bays, Leeds and the Thousand Islands, Limerick, Loyalist, Madoc, Melancthon, Minden Hills, Montague, Mulmur, North Dundas, North Glengarry, North Kawartha, North Stormont, Oro-Medonte, Otonabee-South Monaghan, Puslinch, Ramara, Rideau Lakes, Russell, Scugog, Selwyn, Severn, South Frontenac, South Glengarry, South Stormont, Springwater, Stirling-Rawdon, Stone Mills, Tay, Tay Valley, Tiny, Tudor and Cashel, Tyendinaga, Uxbridge, Wainfleet, West Lincoln and Wollaston, the United Townships of Dysart, Dudley, Harcourt, Guilford, Harburn, Bruton, Havelock, Eyre and Clyde and the Village of Merrickville-Wolford,in Quebec, the Cities of Gatineau, Lachute, Mirabel, Saint-Jérôme and Salaberry-de-Valleyfield, the Municipalities of Boileau, Bowman, Denholm, Duhamel, Elgin, Franklin, Grenville-sur-la-Rouge, Hinchinbrooke, Huberdeau, Kazabazua, La Conception, La Minerve, Labelle, Lac-des-Plages, Lac-Sainte-Marie, Lac-Simon, Les Cèdres, Mayo, Mille-Isles, Montcalm, Montpellier, Morin-Heights, Mulgrave-et-Derry, Namur, Notre-Dame-de-Bonsecours, Notre-Dame-de-la-Paix, Notre-Dame-du-Laus, Oka, Ormstown, Papineauville, Plaisance, Ripon, Saint-Adolphe-d’Howard, Saint-André-Avellin, Saint-André-d’Argenteuil, Saint-Anicet, Saint-Clet, Saint-Faustin-Lac-Carré, Saint-Joseph-du-Lac, Saint-Placide, Saint-Polycarpe, Saint-Sixte, Saint-Stanislas-de-Kostka, Saint-Télesphore, Sainte-Barbe, Sainte-Justine-de-Newton, Sainte-Marthe, Très-Saint-Rédempteur, Val-des-Bois and Wentworth-Nord, the Parishes of Brébeuf and Saint-Louis-de-Gonzague, the Regional County Municipality of Les Collines-de-l’Outaouais, the Towns of Boisbriand, Brownsburg-Chatham, Coteau-du-Lac, Mont-Tremblant, Rigaud, Saint-Colomban, Saint-Eustache, Saint-Sauveur, Sainte-Agathe-des-Monts and Vaudreuil-Dorion, the Townships of Amherst, Arundel, Dundee, Godmanchester, Gore, Harrington, Lochaber, Lochaber-Partie-Ouest, Low and Wentworth and the Census Subdivision of Lac-Ernest (Unorganized), as this subdivision was developed by Statistics Canada for the 2016 Census,in Nova Scotia, the Counties of Annapolis and Kings, the Districts of Argyle, Barrington, Chester, Clare, Digby, Lunenburg, Shelburne, West Hants and Yarmouth and the Region of Queens,in British Columbia, the Census Subdivisions of East Kootenay A, Kitimat-Stikine A, B and D and of Skeena-Queen Charlotte D and E, as these subdivisions were developed by Statistics Canada for the 2016 Census, andin Alberta, the City of Calgary, the Counties of Clearwater, Kneehill, Lacombe, Lethbridge, Mackenzie, Mountain View, Newell, Red Deer, Rocky View, Vulcan and Wheatland, the Improvement District No. 9, Kananaskis Improvement District, the Municipality of Crowsnest Pass and the Municipal Districts of Bighorn, Foothills, Pincher Creek, Ranchland, Taber and Willow Creek;in respect of the 2017 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, ofin Quebec, Albertville, Amqui, Auclair, Baie-des-Sables, Biencourt, Cacouna, Causapscal, Dégelis, Esprit-Saint, Kamouraska, La Malbaie, Lac-à-la-Croix, Lac-Alfred, Lac-des-Aigles, Lac-des-Eaux-Mortes, Lac-Huron, Lac-Matapédia, Lejeune, Les Bergeronnes, L’Isle-Verte, Notre-Dame-des-Neiges, Pohénégamook, Rimouski, Rivière-du-Loup, Routhierville, Ruisseau-Ferguson, Sacré-Coeur, Saint-Alexandre-de-Kamouraska, Saint-André, Saint-Antonin, Saint-Arsène, Saint-Bruno-de-Kamouraska, Saint-Clément, Saint-Cléophas, Saint-Cyprien, Sainte-Angèle-de-Mérici, Sainte-Flavie, Sainte-Jeanne-d’Arc, Saint-Éloi, Sainte-Luce, Saint-Elzéar-de-Témiscouata, Saint-Épiphane, Saint-Eusèbe, Saint-Fabien, Saint-Gabriel-de-Rimouski, Saint-Germain, Saint-Guy, Saint-Hubert-de-Rivière-du-Loup, Saint-Jean-de-Dieu, Saint-Léon-le-Grand, Saint-Mathieu-de-Rioux, Saint-Octave-de-Métis, Saint-Pascal, Saint-Simon, Saint-Ulric, Sayabec, Témiscouata-sur-le-Lac and Val-Brillant,in British Columbia, Alberni-Calyoquot A, B, D and F, Cariboo A to L, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Columbia-Shuswap A and C to F, Comox Valley A, Comox Valley C (Puntledge-Black Creek), East Kootenay A to C and E to G, Fraser Valley B and D to G, Fraser-Fort George C to E, Kootenay Boundary B/Lower Columbia-Old-Glory, Kootenay Boundary D/Rural Grand Forks, Kootenay Boundary E/West Boundary, North Okanagan B and D to F, Okanagan-Similkameen A to H, Spallumcheen, Squamish-Lillooet B and C, Strathcona D (Oyster Bay-Buttle Lake), Thompson-Nicola A (Wells Gray Country), Thompson-Nicola B (Thompson Headwaters), Thompson-Nicola E (Bonaparte Plateau), Thompson-Nicola I (Blue Sky Country), Thompson-Nicola J (Copper Desert Country), Thompson-Nicola L (Grasslands), Thompson-Nicola M (Beautiful Nicola Valley-North), Thompson-Nicola N (Beautiful Nicola Valley-South), Thompson-Nicola O (Lower North Thompson) and Thompson-Nicola P (Rivers and the Peaks),in Saskatchewan, Aberdeen No. 373, Abernethy No. 186, Antelope Park No. 322, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Bayne No. 371, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Quill No. 308, Big Stick No. 141, Birch Hills No. 460, Blucher No. 343, Bone Creek No. 108, Bratt’s Lake No. 129, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buckland No. 491, Caledonia No. 99, Cambria No. 6, Canaan No. 225, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342, Connaught No. 457, Corman Park No. 344, Coteau No. 255, Coulee No. 136, Craik No. 222, Cupar No. 218, Cymri No. 36, Deer Forks No. 232, Dufferin No. 190, Dundurn No. 314, Edenwold No. 158, Elcapo No. 154, Elfros No. 307, Elmsthorpe No. 100, Emerald No. 277, Enfield No. 194, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eyebrow No. 193, Fertile Valley No. 285, Fillmore No. 96, Fish Creek No. 402, Flett’s Springs No. 429, Foam Lake No. 276, Fox Valley No. 171, Francis No. 127, Frontier No. 19, Garden River No. 490, Garry No. 245, Glen Bain No. 105, Glen McPherson No. 46, Golden West No. 95, Grant No. 372, Grassy Creek No. 78, Gravelbourg No. 104, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazelwood No. 94, Hillsborough No. 132, Hoodoo No. 401, Humboldt No. 370, Huron No. 223, Indian Head No. 156, Insinger No. 275, Invergordon No. 430, Ituna Bon Accord No. 246, Kellross No. 247, Key West No. 70, Kindersley No. 290, King George No. 256, Kingsley No. 124, Kinistino No. 459, Lac Pelletier No. 107, Lacadena No. 228, Lajord No. 128, Lake Alma No. 8, Lake Johnston No. 102, Lake Lenore No. 399, Lake of the Rivers No. 72, Lakeside No. 338, Lakeview No. 337, Last Mountain Valley No. 250, Laurier No. 38, Lawtonia No. 135, Leroy No. 339, Lipton No. 217, Lomond No. 37, Lone Tree No. 18, Longlaketon No. 219, Loreburn No. 254, Lost River No. 313, Lumsden No. 189, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Marquis No. 191, Marriott No. 317, McCraney No. 282, McKillop No. 220, McLeod No. 185, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montmartre No. 126, Montrose No. 315, Moose Jaw No. 161, Morris No. 312, Morse No. 165, Mount Hope No. 279, Mountain View No. 318, Newcombe No. 260, Nipawin No. 487, North Qu’Appelle No. 187, Norton No. 69, Oakdale No. 320, Old Post No. 43, Paddockwood No. 520, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Pleasantdale No. 398, Poplar Valley No. 12, Prairie Rose No. 309, Prairiedale No. 321, Prince Albert No. 461, Redburn No. 130, Reno No. 51, Riverside No. 168, Rodgers No. 133, Rosedale No. 283, Rudy No. 284, Sarnia No. 221, Saskatchewan Landing No. 167, Saskatoon, Scott No. 98, Shamrock No. 134, Sherwood No. 159, Snipe Lake No. 259, Souris Valley No. 7, South Qu’Appelle No. 157, Spalding No. 368, St. Andrews No. 287, St. Louis No. 431, St. Peter No. 369, Stanley No. 215, Star City No. 428, Stonehenge No. 73, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Three Lakes No. 400, Torch River No. 488, Touchwood No. 248, Tullymet No. 216, Usborne No. 310, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Viscount No. 341, Waverley No. 44, Webb No. 138, Wellington No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willow Creek No. 458, Winslow No. 319, Wise Creek No. 77, Wolseley No. 155, Wolverine No. 340, Wood Creek No. 281, Wood River No. 74 and Wreford No. 280, andin Alberta, the City of Calgary, the Counties of Cardston, Clearwater, Cypress, Kneehill, Lacombe, Lethbridge, Mountain View, Newell, Red Deer, Rocky View, Starland, Vulcan and Wheatlands, Forty Mile County No. 8, Paintearth County No. 18, Stettler County No. 6, Warner County No. 5, the Municipal Districts of Bighorn No. 8, Foothills No. 31, Pincher Creek No. 9, Ranchland No. 66, Taber and Willow Creek No. 26 and Special Areas No. 2, 3 and 4;in respect of the 2018 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, ofin Ontario, Arran-Elderslie, Brockton, Chatsworth, Georgian Bluffs, Gordon/Barrie Island, Grey Highlands, Kincardine, Meaford, Northeastern Manitoulin and the Islands, Northern Bruce Peninsula, Saugeen Shores, South Bruce Peninsula, The Blue Mountains and West Grey,in Quebec, Albertville, Amqui, Baie-des-Sables, Bonaventure, Cap-Chat, Caplan, Carleton-sur-Mer, Causapscal, Collines-du-Basque, Gaspé, Grosses-Roches, Lac-à-la-Croix, Lac-Alfred, Lac-des-Eaux-Mortes, Lac-Matapédia, Matane, Mont-Alexandre, New Richmond, Percé, Rivière-Bonaventure, Rivière-Bonjour, Rivière-Nouvelle, Routhierville, Ruisseau-des-Mineurs, Ruisseau-Ferguson, Saint-Cléophas, Saint-François-d’Assise, Saint-Gabriel-de-Rimouski, Saint-Léon-le-Grand (Census Division – La Matapédia), Saint-Octave-de-Métis, Saint-Ulric, Sainte-Angèle-de-Mérici, Sainte-Félicité (Census Division – Matane), Sainte-Flavie, Sainte-Jeanne-d’Arc, Sainte-Luce, Sayabec and Val-Brillant,in New Brunswick, Beresford, Caraquet, Dalhousie, Durham, New Bandon, Paquetville, Shippagan and Tracadie,in Manitoba, Alexander, Alonsa, Argyle, Armstrong, Bifrost-Riverton, Boissevain-Morton, Brenda-Waskada, Brokenhead, Cartier, Cartwright-Roblin, Clanwilliam-Erickson, Coldwell, De Salaberry, Deloraine-Winchester, Division No. 18 (Unorganized, East Part), Dufferin, Ellice-Archie, Elton, Emerson-Franklin, Fisher, Gimli, Glenboro-South Cypress, Glenella-Lansdowne, Grahamdale, Grassland, Grey, Hamiota, Hanover, Harrison Park, Headingley, Killarney – Turtle Mountain, La Broquerie, Lakeshore, Lorne, Louise, Macdonald, McCreary, Minto-Odanah, Montcalm, Morris, Norfolk-Treherne, North Cypress-Langford, North Norfolk, Oakland-Wawanesa, Oakview, Pembina, Piney, Pipestone, Portage la Prairie, Prairie Lakes, Prairie View, Rhineland, Ritchot, Riverdale, Rockwood, Roland, Rosedale, Rosser, Sifton, Souris-Glenwood, Springfield, St. Andrews, St. Clements, St. François Xavier, St. Laurent, Stanley, Ste. Anne, Ste. Rose, Stuartburn, Taché, Thompson, Two Borders, Victoria, Wallace-Woodworth, West Interlake, West St. Paul, WestLake-Gladstone, Whitehead, Winnipeg, Woodlands and Yellowhead,in British Columbia, Abbotsford, Alberni-Clayoquot A, B, D and F, Bulkley-Nechako A to G, Burnaby, Cariboo A to C and I, Central Coast A, Central Kootenay A to E, G, H, J and K, Comox Valley A, Comox Valley B (Lazo North), Comox Valley C (Puntledge – Black Creek), Cowichan Valley B, F and G, Delta, East Kootenay A to C and E, Fraser-Fort George A and C to F, Fraser Valley D to G, Greater Vancouver A, Juan de Fuca (Part 2), Kitimat-Stikine B, Kitimat-Stikine C (Part 1), Kootenay Boundary B/Lower Columbia-Old-Glory, Kootenay Boundary D/Rural Grand Forks, Langley, Maple Ridge, Mount Waddington C, Nanaimo, Nanaimo C and E to H, North Cowichan, Pitt Meadows, Powell River A, C and E, Richmond, Saltspring Island, Skeena-Queen Charlotte C to E, Southern Gulf Islands, Squamish-Lillooet C, Strathcona C, Strathcona D (Oyster Bay – Buttle Lake), Sunshine Coast A, Surrey and Vancouver,in Saskatchewan, Aberdeen No. 373, Abernethy No. 186, Antler No. 61, Argyle No. 1, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Bayne No. 371, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Quill No. 308, Big Stick No. 141, Biggar No. 347, Birch Hills No. 460, Blaine Lake No. 434, Blucher No. 343, Bone Creek No. 108, Bratt’s Lake No. 129, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buckland No. 491, Caledonia No. 99, Cambria No. 6, Canaan No. 225, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342. Corman Park No. 344, Coteau No. 255, Coulee No. 136, Craik No. 222, Cupar No. 218, Cymri No. 36, Deer Forks No. 232, Duck Lake No. 463, Dufferin No. 190, Dundurn No. 314, Eagle Creek No. 376, Edenwold No. 158, Elcapo No. 154, Elfros No. 307, Elmsthorpe No. 100, Emerald No. 277, Enfield No. 194, Enniskillen No. 3, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eyebrow No. 193, Fertile Belt No. 183, Fertile Valley No. 285, Fillmore No. 96, Fish Creek No. 402, Flett’s Springs No. 429, Foam Lake No. 276, Fox Valley No. 171, Francis No. 127, Frontier No. 19, Garden River No. 490, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Golden West No. 95, Grandview No. 349, Grant No. 372, Grassy Creek No. 78, Gravelbourg No. 104, Grayson No. 184, Great Bend No. 405, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazelwood No. 94, Hillsborough No. 132, Hoodoo No. 401, Humboldt No. 370, Huron No. 223, Indian Head No. 156, Invergordon No. 430, Ituna Bon Accord No. 246, Kellross No. 247, Key West No. 70, Kindersley No. 290, King George No. 256, Kingsley No. 124, Kinistino No. 459, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lajord No. 128, Lake Alma No. 8, Lake Johnston No. 102, Lake Lenore No. 399, Lake of the Rivers No. 72, Lakeside No. 338, Last Mountain Valley No. 250, Laurier No. 38, Lawtonia No. 135, Leask No. 464, Leroy No. 339, Lipton No. 217, Lomond No. 37, Lone Tree No. 18, Longlaketon No. 219, Loreburn No. 254, Lost River No. 313, Lumsden No. 189, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Marquis No. 191, Marriott No. 317, Martin No. 122, Maryfield No. 91, Mayfield No. 406, McCraney No. 282, McKillop No. 220, McLeod No. 185, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montmartre No. 126, Montrose No. 315, Moose Creek No. 33, Moose Jaw No. 161, Moose Mountain No. 63, Moosomin No. 121, Morris No. 312, Morse No. 165, Mount Hope No. 279, Mount Pleasant No. 2, Mountain View No. 318, Newcombe No. 260, Nipawin No. 487, North Qu’Appelle No. 187, Norton No. 69, Old Post No. 43, Paddockwood No. 520, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Poplar Valley No. 12, Prairie Rose No. 309, Prince Albert No. 461, Reciprocity No. 32, Redberry No. 435, Redburn No. 130, Reno No. 51, Riverside No. 168, Rocanville No. 151, Rodgers No. 133, Rosedale No. 283, Rosthern No. 403, Rudy No. 284, Sarnia No. 221, Saskatchewan Landing No. 167, Scott No. 98, Shamrock No. 134, Shellbrook No. 493, Sherwood No. 159, Silverwood No. 123, Snipe Lake No. 259, Souris Valley No. 7, South Qu’Appelle No. 157, St. Andrews No. 287, St. Louis No. 431, St. Peter No. 369, Stanley No. 215, Star City No. 428, Stonehenge No. 73, Storthoaks No. 31, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Three Lakes No. 400, Torch River No. 488, Touchwood No. 248, Tullymet No. 216, Usborne No. 310, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Viscount No. 341, Walpole No. 92, Waverley No. 44, Wawken No. 93, Webb No. 138, Wellington, No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willow Creek No. 458, Willowdale No. 153, Winslow No. 319, Wise Creek No. 77, Wolseley No. 155, Wolverine No. 340, Wood Creek No. 281, Wood River No. 74 and Wreford No. 280, andin Alberta, Beaver County, Bighorn No. 8, Brazeau County, Calgary, Camrose County, Cardston County, Clearwater County, Cypress County, Flagstaff County, Foothills No. 31, Forty Mile County No. 8, Kneehill County, Lacombe County, Lac Ste. Anne County, Lamont County, Leduc County, Lethbridge County, Mackenzie County, Minburn County No. 27, Mountain View County, Newell County, Paintearth County No. 18, Parkland County, Pincher Creek No. 9, Ponoka County, Ranchland No. 66, Red Deer County, Rocky View County, Special Areas No. 2 and No. 3, Starland County, Stettler County No. 6, Taber, Vulcan County, Warner County No. 5, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26 and Yellowhead County;in respect of the 2019 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, ofin Ontario, Alberton, Chapple, Dawson, Emo, La Vallee, Lake of the Woods, Morley and Rainy River (Unorganized),in Quebec, Albertville, Amqui, Cap-Chat, Causapscal, Collines-du-Basque, Grosses-Roches, Lac-Matapédia, Matane, Rivière-Bonjour, Ruisseau-des-Mineurs, Saint-Cléophas, Sainte-Félicité (Census Division – Matane), Saint-Léon-le-Grand (Census Division – La Matapédia), Saint-Ulric, Sayabec and Val-Brillant,in Manitoba, Alexander, Alonsa, Argyle, Armstrong, Bifrost-Riverton, Boissevain-Morton, Brenda-Waskada, Brokenhead, Cartier, Cartwright-Roblin, Clanwilliam-Erickson, Coldwell, Dauphin, De Salaberry, Deloraine-Winchester, Division No. 1 (Unorganized), Division No. 17 (Unorganized), Division No. 18 (Unorganized, East Part), Division No. 18, (Unorganized, West Part), Division No. 19 (Unorganized), Division No. 20 (Unorganized, South Part), Dufferin, Ellice-Archie, Elton, Emerson-Franklin, Ethelbert, Fisher, Gilbert Plains, Gimli, Glenboro-South Cypress, Glenella-Lansdowne, Grahamdale, Grandview, Grassland, Grey, Hamiota, Hanover, Harrison Park, Headingley, Hillsburg-Roblin-Shell River, Killarney – Turtle Mountain, La Broquerie, Lac du Bonnet, Lakeshore, Lorne, Louise, Macdonald, McCreary, Minitonas-Bowsman, Minto-Odanah, Montcalm, Morris, Mossey River, Mountain (North), Mountain (South), Norfolk-Treherne, North Cypress-Langford, North Norfolk, Oakland-Wawanesa, Oakview, Pembina, Piney, Pipestone, Portage la Prairie, Prairie Lakes, Prairie View, Reynolds, Rhineland, Riding Mountain West, Ritchot, Riverdale, Rockwood, Roland, Rosedale, Rossburn, Rosser, Russell-Binscarth, Sifton, Souris-Glenwood, Springfield, St. Andrews, St. Clements, St. François Xavier, St. Laurent, Stanley, Ste. Anne, Ste. Rose, Stuartburn, Swan Valley West, Taché, Thompson, Two Borders, Victoria, Wallace-Woodworth, West Interlake, West St. Paul, WestLake-Gladstone, Whitehead, Whitemouth, Winnipeg, Woodlands and Yellowhead,in British Columbia, Alberni-Clayoquot A, B, D and F, Bulkley-Nechako A to D, F et G, Cariboo A to E and I to K, Central Saanich, Comox Valley A, Comox Valley B (Lazo North), Comox Valley C (Puntledge – Black Creek), Cowichan Valley B, F and G, Fraser-Fort George A and C to F, Juan de Fuca (Part 2), Kitimat-Stikine C (Part 1), Nanaimo (City), Nanaimo C and E to H, North Cowichan, North Saanich, Peace River B to E, Powell River E, Saanich, Saltspring Island, Skeena-Queen Charlotte C to E, Southern Gulf Islands and Strathcona D (Oyster Bay – Buttle Lake),in Saskatchewan, Aberdeen No. 373, Abernethy No. 186, Antelope Park No. 322, Antler No. 61, Argyle No. 1, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Battle River No. 438, Bayne No. 371, Beaver River No. 622, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Quill No. 308, Big Stick No. 141, Biggar No. 347, Blucher No. 343, Bone Creek No. 108, Bratt’s Lake No. 129, Britannia No. 502, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buchanan No. 304, Buffalo No. 409, Calder No. 241, Caledonia No. 99, Cambria No. 6, Cana No. 214, Canaan No. 225, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Churchbridge No. 211, Clayton No. 333, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342, Corman Park No. 344, Cote No. 271, Coteau No. 255, Coulee No. 136, Craik No. 222, Cupar No. 218, Cut Knife No. 439, Cymri No. 36, Deer Forks No. 232, Douglas No. 436, Dufferin No. 190, Dundurn No. 314, Eagle Creek No. 376, Edenwold No. 158, Elcapo No. 154, Eldon No. 471, Elfros No. 307, Elmsthorpe No. 100, Emerald No. 277, Enfield No. 194, Enniskillen No. 3, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eye Hill No. 382, Eyebrow No. 193, Fertile Belt No. 183, Fertile Valley No. 285, Fillmore No. 96, Foam Lake No. 276, Fox Valley No. 171, Francis No. 127, Frenchman Butte No. 501, Frontier No. 19, Garry No. 245, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Golden West No. 95, Good Lake No. 274, Grandview No. 349, Grant No. 372, Grass Lake No. 381, Grassy Creek No. 78, Gravelbourg No. 104, Grayson No. 184, Great Bend No. 405, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazel Dell No. 335, Hazelwood No. 94, Heart’s Hill No. 352, Hillsborough No. 132, Hillsdale No. 440, Humboldt No. 370, Huron No. 223, Indian Head No. 156, Insinger No. 275, Invermay No. 305, Ituna Bon Accord No. 246, Kellross No. 247, Key West No. 70, Keys No. 303, Kindersley No. 290, King George No. 256, Kingsley No. 124, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lajord No. 128, Lake Alma No. 8, Lake Johnston No. 102, Lake Lenore No. 399, Lake of the Rivers No. 72, Lakeside No. 338, Lakeview No. 337, Langenburg No. 181, Last Mountain Valley No. 250, Laurier No. 38, Lawtonia No. 135, Leroy No. 339, Lipton No. 217, Livingston No. 331, Lomond No. 37, Lone Tree No. 18, Longlaketon No. 219, Loon Lake No. 561, Loreburn No. 254, Lost River No. 313, Lumsden No. 189, Manitou Lake No. 442, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Mariposa No. 350, Marquis No. 191, Marriott No. 317, Martin No. 122, Maryfield No. 91, Mayfield No. 406, McCraney No. 282, McKillop No. 220, McLeod No. 185, Meadow Lake No. 588, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montmartre No. 126, Montrose No. 315, Moose Creek No. 33, Moose Jaw No. 161, Moose Mountain No. 63, Moosomin No. 121, Morris No. 312, Morse No. 165, Mount Hope No. 279, Mount Pleasant No. 2, Mountain View No. 318, Newcombe No. 260, North Battleford No. 437, North Qu’Appelle No. 187, Norton No. 69, Oakdale No. 320, Old Post No. 43, Orkney No. 244, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Poplar Valley No. 12, Prairie Rose No. 309, Prairiedale No. 321, Preeceville No. 334, Progress No. 351, Reciprocity No. 32, Redburn No. 130, Reford No. 379, Reno No. 51, Riverside No. 168, Rocanville No. 151, Rodgers No. 133, Rosedale No. 283, Rosemount No. 378, Rosthern No. 403, Round Valley No. 410, Rudy No. 284, Saltcoats No. 213, Sarnia No. 221, Saskatchewan Landing No. 167, Saskatoon, Sasman No. 336, Scott No. 98, Senlac No. 411, Shamrock No. 134, Sherwood No. 159, Silverwood No. 123, Sliding Hills No. 273, Snipe Lake No. 259, Souris Valley No. 7, South Qu’Appelle No. 157, Spalding No. 368, Spy Hill No. 152, St. Andrews No. 287, St. Peter No. 369, St. Philips No. 301, Stanley No. 215, Stonehenge No. 73, Storthoaks No. 31, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Three Lakes No. 400, Touchwood No. 248, Tramping Lake No. 380, Tullymet No. 216, Usborne No. 310, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Viscount No. 341, Wallace No. 243, Walpole No. 92, Waverley No. 44, Wawken No. 93, Webb No. 138, Wellington No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willowdale No. 153, Wilton No. 472, Winslow No. 319, Wise Creek No. 77, Wolseley No. 155, Wolverine No. 340, Wood Creek No. 281, Wood River No. 74 and Wreford No. 280, andin Alberta, Athabasca County, Barrhead County No. 11, Beaver County, Big Lakes County, Birch Hills County, Bonnyville No. 87, Brazeau County, Camrose County, Cardston County, Clear Hills, Clearwater County, Cypress County, Edmonton, Fairview No. 136, Flagstaff County, Forty Mile County No. 8, Grande Prairie County No. 1, Greenview No. 16, Kneehill County, Lac la Biche County, Lac Ste. Anne County, Lacombe County, Lamont County, Leduc County, Lesser Slave River No. 124, Lethbridge County, Mackenzie County, Minburn County No. 27, Newell County, Northern Lights County, Northern Sunrise County, Paintearth County No. 18, Parkland County, Peace No. 135, Ponoka County, Provost No. 52, Red Deer County, Saddle Hills County, Smoky Lake County, Smoky River No. 130, Special Areas No. 2, No. 3, and No. 4, Spirit River No. 133, St. Paul County No. 19, Starland County, Stettler County No. 6, Strathcona County, Sturgeon County, Taber, Thorhild County, Two Hills County No. 21, Vermilion River County, Vulcan County, Wainwright No. 61, Warner County No. 5, Westlock County, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26, Woodlands County and Yellowhead County;in respect of the 2020 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, ofin Quebec, Albertville, Amqui, Auclair, Baie-des-Sables, Biencourt, Bonaventure, Cacouna, Cap-Chat, Caplan, Carleton-sur-Mer, Causapscal, Collines-du-Basque, Dégelis, Esprit-Saint, Gaspé, Grosses-Roches, Kamouraska, Lac-à-la-Croix, Lac-Alfred, Lac-des-Aigles, Lac-des-Eaux-Mortes, Lac-Huron, Lac-Matapédia, Lejeune, L’Isle-Verte, Matane, Mont-Alexandre, Mont-Carmel, New Richmond, Notre-Dame-des-Neiges, Percé, Petit-Lac-Sainte-Anne, Pohénégamook, Rimouski, Rivière-Bonaventure, Rivière-Bonjour, Rivière-du-Loup, Rivière-Nouvelle, Rivière-Ouelle, Routhierville, Ruisseau-des-Mineurs, Ruisseau-Ferguson, Saint-Alexandre-de-Kamouraska, Saint-André, Saint-Antonin, Saint-Arsène, Saint-Bruno-de-Kamouraska, Saint-Clément, Saint-Cléophas, Saint-Cyprien (Census Division – Rivière-du-Loup), Saint-Denis-De La Bouteillerie, Sainte-Angèle-de-Mérici, Sainte-Anne-de-la-Pocatière, Sainte-Félicité (Census Division – Matane), Sainte-Flavie, Sainte-Jeanne-d’Arc (Census Division – La Mitis), Saint-Éloi, Sainte-Luce, Saint-Elzéar-de-Témiscouata, Saint-Épiphane, Saint-Eusèbe, Saint-Fabien, Saint-François-d’Assise, Saint-Gabriel-de-Rimouski, Saint-Germain, Saint-Guy, Saint-Hubert-de-Rivière-du-Loup, Saint-Jean-de-Dieu, Saint-Jean-de-la-Lande, Saint-Léon-le-Grand (Census Division – La Matapédia), Saint-Mathieu-de-Rioux, Saint-Octave-de-Métis, Saint-Onésime-d’Ixworth, Saint-Pacôme, Saint-Pascal, Saint-Philippe-de-Néri, Saint-Simon (Census Division – Les Basques), Saint-Ulric, Sayabec, Shigawake, Témiscouata-sur-le-Lac and Val-Brillant,in Nova-Scotia, Colchester, Subdivision A, and Cumberland, Subdivisions A to D,in New Brunswick, the entire province, andin Prince Edward Island, the entire province;in respect of the 2021 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, ofin Ontario, Alberton, Chapple, Dawson, Emo, Kenora (Unorganized), La Vallee, Lake of the Woods, Morley, Neebing, O’Connor, Oliver Paipoonge, Rainy River (Unorganized), Thunder Bay and Thunder Bay (Unorganized),in Manitoba, Alexander, Alonsa, Argyle, Armstrong, Bifrost-Riverton, Boissevain-Morton, Brenda-Waskada, Brokenhead, Cartier, Cartwright-Roblin, Clanwilliam-Erickson, Coldwell, Dauphin, De Salaberry, Deloraine-Winchester, Division No. 1 (Unorganized), Division No. 17 (Unorganized), Division No. 18 (Unorganized, East Part), Division No. 18 (Unorganized, West Part), Division No. 19 (Unorganized), Division No. 20 (Unorganized, South Part), Division No. 21 (Unorganized), Dufferin, Ellice-Archie, Elton, Emerson-Franklin, Ethelbert, Fisher, Gilbert Plains, Gimli, Glenboro-South Cypress, Glenella-Lansdowne, Grahamdale, Grandview, Grassland, Grey, Hamiota, Hanover, Harrison Park, Headingley, Hillsburg-Roblin-Shell River, Killarney – Turtle Mountain, La Broquerie, Lac du Bonnet, Lakeshore, Lorne, Louise, Macdonald, McCreary, Minitonas-Bowsman, Minto-Odanah, Montcalm, Morris, Mossey River, Mountain (North), Mountain (South), Norfolk-Treherne, North Cypress-Langford, North Norfolk, Oakland-Wawanesa, Oakview, Pembina, Piney, Pipestone, Portage la Prairie, Prairie Lakes, Prairie View, Reynolds, Rhineland, Riding Mountain West, Ritchot, Riverdale, Rockwood, Roland, Rosedale, Rossburn, Rosser, Russell-Binscarth, Sifton, Souris-Glenwood, Springfield, St. Andrews, St. Clements, St. François Xavier, St. Laurent, Stanley, Ste. Anne, Ste. Rose, Stuartburn, Swan Valley West, Taché, Thompson, Two Borders, Victoria, Wallace-Woodworth, West Interlake, West St. Paul, WestLake-Gladstone, Whitehead, Whitemouth, Winnipeg, Woodlands and Yellowhead,in British Columbia, Abbotsford, Alberni-Clayoquot A, B, D and F, Burnaby, Cariboo E, G, H, K and L, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Central Saanich, Columbia-Shuswap A and C to F, Comox Valley A, Comox Valley B (Lazo North), Comox Valley C (Puntledge – Black Creek), Cowichan Valley B, F and G, Delta, East Kootenay A to C and E to G, Fraser Valley B and D to G, Fraser-Fort George H, Greater Vancouver A, Juan de Fuca (Part 2), Kootenay Boundary B/Lower Columbia-Old-Glory, Kootenay Boundary D/Rural Grand Forks, Kootenay Boundary E/West Boundary, Langley, Maple Ridge, Nanaimo, Nanaimo C and E to H, North Cowichan, North Okanagan B and D to F, North Saanich, Okanagan-Similkameen A to H, Peace River D, Pitt Meadows, Richmond, Saanich, Saltspring Island, Southern Gulf Islands, Spallumcheen, Squamish-Lillooet B, Strathcona D (Oyster Bay – Buttle Lake), Surrey, Thompson-Nicola A (Wells Gray Country), Thompson-Nicola B (Thompson Headwaters), Thompson-Nicola E (Bonaparte Plateau), Thompson-Nicola I (Blue Sky Country), Thompson-Nicola J (Copper Desert Country), Thompson-Nicola L (Grasslands), Thompson-Nicola M (Beautiful Nicola Valley – North), Thompson-Nicola N (Beautiful Nicola Valley – South), Thompson-Nicola O (Lower North Thompson), Thompson-Nicola P (Rivers and the Peaks) and Vancouver,in Saskatchewan, Aberdeen No. 373, Abernethy No. 186, Antelope Park No. 322, Antler No. 61, Arborfield No. 456, Argyle No. 1, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Barrier Valley No. 397, Battle River No. 438, Bayne No. 371, Beaver River No. 622, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Quill No. 308, Big River No. 555, Big Stick No. 141, Biggar No. 347, Birch Hills No. 460, Bjorkdale No. 426, Blaine Lake No. 434, Blucher No. 343, Bone Creek No. 108, Bratt’s Lake No. 129, Britannia No. 502, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buchanan No. 304, Buckland No. 491, Buffalo No. 409, Calder No. 241, Caledonia No. 99, Cambria No. 6, Cana No. 214, Canaan No. 225, Canwood No. 494, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Churchbridge No. 211, Clayton No. 333, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342, Connaught No. 457, Corman Park No. 344, Cote No. 271, Coteau No. 255, Coulee No. 136, Craik No. 222, Cupar No. 218, Cut Knife No. 439, Cymri No. 36, Deer Forks No. 232, Division No. 18 (Unorganized), Douglas No. 436, Duck Lake No. 463, Dufferin No. 190, Dundurn No. 314, Eagle Creek No. 376, Edenwold No. 158, Elcapo No. 154, Eldon No. 471, Elfros No. 307, Elmsthorpe No. 100, Emerald No. 277, Enfield No. 194, Enniskillen No. 3, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eye Hill No. 382, Eyebrow No. 193, Fertile Belt No. 183, Fertile Valley No. 285, Fillmore No. 96, Fish Creek No. 402, Flett’s Springs No. 429, Foam Lake No. 276, Fox Valley No. 171, Francis No. 127, Frenchman Butte No. 501, Frontier No. 19, Garden River No. 490, Garry No. 245, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Golden West No. 95, Good Lake No. 274, Grandview No. 349, Grant No. 372, Grass Lake No. 381, Grassy Creek No. 78, Gravelbourg No. 104, Grayson No. 184, Great Bend No. 405, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazel Dell No. 335, Hazelwood No. 94, Heart’s Hill No. 352, Hillsborough No. 132, Hillsdale No. 440, Hoodoo No. 401, Hudson Bay No. 394, Humboldt No. 370, Huron No. 223, Indian Head No. 156, Insinger No. 275, Invergordon No. 430, Invermay No. 305, Ituna Bon Accord No. 246, Kellross No. 247, Kelvington No. 366, Key West No. 70, Keys No. 303, Kindersley No. 290, King George No. 256, Kingsley No. 124, Kinistino No. 459, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lajord No. 128, Lake Alma No. 8, Lake Johnston No. 102, Lake Lenore No. 399, Lake of the Rivers No. 72, Lakeside No. 338, Lakeview No. 337, Langenburg No. 181, Last Mountain Valley No. 250, Laurier No. 38, Lawtonia No. 135, Leask No. 464, Leroy No. 339, Lipton No. 217, Livingston No. 331, Lomond No. 37, Lone Tree No. 18, Longlaketon No. 219, Loon Lake No. 561, Loreburn No. 254, Lost River No. 313, Lumsden No. 189, Manitou Lake No. 442, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Mariposa No. 350, Marquis No. 191, Marriott No. 317, Martin No. 122, Maryfield No. 91, Mayfield No. 406, McCraney No. 282, McKillop No. 220, McLeod No. 185, Meadow Lake No. 588, Medstead No. 497, Meeting Lake No. 466, Meota No. 468, Mervin No. 499, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montmartre No. 126, Montrose No. 315, Moose Creek No. 33, Moose Jaw No. 161, Moose Mountain No. 63, Moose Range No. 486, Moosomin No. 121, Morris No. 312, Morse No. 165, Mount Hope No. 279, Mount Pleasant No. 2, Mountain View No. 318, Newcombe No. 260, Nipawin No. 487, North Battleford No. 437, North Qu’Appelle No. 187, Norton No. 69, Oakdale No. 320, Old Post No. 43, Orkney No. 244, Paddockwood No. 520, Parkdale No. 498, Paynton No. 470, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Pleasantdale No. 398, Ponass Lake No. 367, Poplar Valley No. 12, Porcupine No. 395, Prairie Rose No. 309, Prairiedale No. 321, Preeceville No. 334, Prince Albert No. 461, Progress No. 351, Reciprocity No. 32, Redberry No. 435, Redburn No. 130, Reford No. 379, Reno No. 51, Riverside No. 168, Rocanville No. 151, Rodgers No. 133, Rosedale No. 283, Rosemount No. 378, Rosthern No. 403, Round Hill No. 467, Round Valley No. 410, Rudy No. 284, Saltcoats No. 213, Sarnia No. 221, Saskatchewan Landing No. 167, Saskatoon, Sasman No. 336, Scott No. 98, Senlac No. 411, Shamrock No. 134, Shellbrook No. 493, Sherwood No. 159, Silverwood No. 123, Sliding Hills No. 273, Snipe Lake No. 259, Souris Valley No. 7, South Qu’Appelle No. 157, Spalding No. 368, Spiritwood No. 496, Spy Hill No. 152, St. Andrews No. 287, St. Louis No. 431, St. Peter No. 369, St. Philips No. 301, Stanley No. 215, Star City No. 428, Stonehenge No. 73, Storthoaks No. 31, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Three Lakes No. 400, Tisdale No. 427, Torch River No. 488, Touchwood No. 248, Tramping Lake No. 380, Tullymet No. 216, Turtle River No. 469, Usborne No. 310, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Viscount No. 341, Wallace No. 243, Walpole No. 92, Waverley No. 44, Wawken No. 93, Webb No. 138, Wellington No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willow Creek No. 458, Willowdale No. 153, Wilton No. 472, Winslow No. 319, Wise Creek No. 77, Wolseley No. 155, Wolverine No. 340, Wood Creek No. 281, Wood River No. 74 and Wreford No. 280, andin Alberta, Athabasca County, Barrhead County No. 11, Beaver County, Bighorn No. 8, Big Lakes County, Birch Hills County, Bonnyville No. 87, Brazeau County, Calgary, Camrose County, Cardston County, Clear Hills, Clearwater County, Cypress County, Edmonton, Fairview No. 136, Flagstaff County, Foothills No. 31, Forty Mile County No. 8, Grande Prairie County No. 1, Greenview No. 16, Improvement District No. 12, Jasper Park, Kneehill County, Lac la Biche County, Lac Ste. Anne County, Lacombe County, Lamont County, Leduc County, Lesser Slave River No. 124, Lethbridge County, Minburn County No. 27, Mountain View County, Newell County, Paintearth County No. 18, Parkland County, Peace No. 135, Pincher Creek No. 9, Ponoka County, Provost No. 52, Ranchland No. 66, Red Deer County, Rocky View County, Saddle Hills County, Smoky Lake County, Smoky River No. 130, Special Areas No. 2, No. 3 and No. 4, Spirit River No. 133, St. Paul County No. 19, Starland County, Stettler County No. 6, Strathcona County, Sturgeon County, Taber, Thorhild County, Two Hills County No. 21, Vermilion River County, Vulcan County, Wainwright No. 61, Warner County No. 5, Westlock County, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26, Woodlands County and Yellowhead County;in respect of the 2022 calendar year, the Consolidated Census Subdivisions, based on the 2021 Statistics Canada Census, ofin Ontario, Ashfield-Colborne-Wawanosh, Bluewater, Caledon, Cambridge, Central Huron, Centre Wellington, East Garafraxa, Erin, Guelph/Eramosa, Halton Hills, Huron East, Kitchener, Mapleton, Milton, Morris-Turnberry, North Dumfries, North Huron, North Perth, Oakville, Perth East, Perth South, Puslinch, South Huron, Wellesley, West Perth, Wilmot and Woolwich,in Manitoba, Alonsa, Argyle, Armstrong, Bifrost-Riverton, Boissevain-Morton, Brenda-Waskada, Brokenhead, Cartier, Cartwright-Roblin, Clanwilliam-Erickson, Coldwell, Dauphin, De Salaberry, Deloraine-Winchester, Division No. 17 (Unorganized), Division No. 18 (Unorganized, East Part), Division No. 18 (Unorganized, West Part), Dufferin, Elton, Emerson-Franklin, Fisher, Gimli, Glenboro-South Cypress, Glenella-Lansdowne, Grahamdale, Grassland, Grey, Hanover, Harrison Park, Headingley, Killarney – Turtle Mountain, Lakeshore, Lorne, Louise, Macdonald, McCreary, Minto-Odanah, Montcalm, Morris, Norfolk-Treherne, North Cypress-Langford, North Norfolk, Oakland-Wawanesa, Oakview, Pembina, Portage la Prairie, Prairie Lakes, Rhineland, Ritchot, Riverdale, Rockwood, Roland, Rosedale, Rosser, Souris-Glenwood, Springfield, St. Andrews, St. Clements, St. François Xavier, St. Laurent, Stanley, Ste. Rose, Taché, Thompson, Victoria, West Interlake, West St. Paul, WestLake-Gladstone, Whitehead, Winnipeg, Woodlands and Yellowhead,in Saskatchewan, Antelope Park No. 322, Arlington No. 79, Auvergne No. 76, Big Stick No. 141, Biggar No. 347, Blaine Lake No. 434, Blucher No. 343, Bone Creek No. 108, Buffalo No. 409, Canaan No. 225, Carmichael No. 109, Chaplin No. 164, Chesterfield No. 261, Clinworth No. 230, Corman Park No. 344, Coteau No. 255, Coulee No. 136, Deer Forks No. 232, Douglas No. 436, Dundurn No. 314, Eagle Creek No. 376, Enfield No. 194, Enterprise No. 142, Excelsior No. 166, Eye Hill No. 382, Fertile Valley No. 285, Fox Valley No. 171, Frontier No. 19, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Grandview No. 349, Grass Lake No. 381, Grassy Creek No. 78, Gravelbourg No. 104, Great Bend No. 405, Gull Lake No. 139, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Heart’s Hill No. 352, Kindersley No. 290, King George No. 256, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lake of the Rivers No. 72, Lawtonia No. 135, Leask No. 464, Lone Tree No. 18, Loreburn No. 254, Lost River No. 313, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Mariposa No. 350, Marriott No. 317, Mayfield No. 406, McCraney No. 282, Meeting Lake No. 466, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montrose No. 315, Morse No. 165, Mountain View No. 318, Newcombe No. 260, Oakdale No. 320, Old Post No. 43, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Poplar Valley No. 12, Prairiedale No. 321, Progress No. 351, Redberry No. 435, Reford No. 379, Reno No. 51, Riverside No. 168, Rosedale No. 283, Rosemount No. 378, Round Valley No. 410, Rudy No. 284, Saskatchewan Landing No. 167, Saskatoon, Shamrock No. 134, Snipe Lake No. 259, St. Andrews No. 287, Stonehenge No. 73, Sutton No. 103, Swift Current No. 137, Tramping Lake No. 380, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Waverley No. 44, Webb No. 138, Whiska Creek No. 106, White Valley No. 49, Willow Bunch No. 42, Winslow No. 319, Wise Creek No. 77 and Wood River No. 74, andin Alberta, Calgary, Cardston County, Cypress County, Foothills County, Forty Mile County No. 8, Kneehill County, Lacombe County, Lethbridge County, Mountain View County, Newell County, Paintearth County No. 18, Pincher Creek No. 9, Red Deer County, Rocky View County, Special Areas No. 2, No. 3, and No. 4, Starland County, Stettler County No. 6, Taber, Vulcan County, Warner County No. 5, Wheatland County and Willow Creek No. 26;in respect of the 2023 calendar year, the Consolidated Census Subdivisions, based on the 2021 Statistics Canada Census, ofin Manitoba, Argyle, Boissevain-Morton, Brenda-Waskada, Cartwright-Roblin, Deloraine-Winchester, Dufferin, Ellice-Archie, Glenboro-South Cypress, Glenella-Lansdowne, Grassland, Grey, Killarney-Turtle Mountain, Lorne, Louise, Macdonald, Montcalm, Morris, Norfolk-Treherne, North Norfolk, Oakland-Wawanesa, Pembina, Pipestone, Portage la Prairie, Prairie Lakes, Prairie View, Rhineland, Roland, Rosedale, Russell-Binscarth, Sifton, Souris-Glenwood, St. Laurent, Stanley, Thompson, Two Borders, Victoria, Wallace-Woodworth, WestLake-Gladstone and Woodlands,in British Columbia, Abbotsford, Alberni-Clayoquot A, B, D and F, Bulkley-Nechako A to G, Burnaby, Cariboo A to L, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan West, Central Saanich, Columbia-Shuswap A and C to F, Comox Valley A, Comox Valley B (Lazo North), Comox Valley C (Puntledge-Black Creek), Cowichan Valley B, F and G, Delta, East Kootenay A to C and E to G, Fraser-Fort George A and C to F, Fraser Valley B and D to G, Juan de Fuca (Part 2), Kootenay Boundary B/Lower Columbia-Old-Glory, Kootenay Boundary D/Rural Grand Forks, Kootenay Boundary E/West Boundary, Langley, Maple Ridge, Metro Vancouver A, Mount Waddington C, Nanaimo, Nanaimo C and E to H, North Cowichan, North Okanagan B and D to F, North Saanich, Northern Rockies, Okanagan-Similkameen A to H, Peace River B to E, Pitt Meadows, qathet A, C and E, Richmond, Saanich, Saltspring Island, Southern Gulf Islands, Spallumcheen, Squamish-Lillooet B and C, Strathcona C, Strathcona D (Oyster Bay-Buttle Lake), Sunshine Coast A, Surrey, Thompson-Nicola A (Wells Gray Country), Thompson-Nicola B (Thompson Headwaters), Thompson-Nicola E (Bonaparte Plateau), Thompson-Nicola I (Blue Sky Country), Thompson-Nicola J (Copper Desert Country), Thompson-Nicola L (Grasslands), Thompson-Nicola M (Beautiful Nicola Valley-North), Thompson-Nicola N (Beautiful Nicola Valley-South), Thompson-Nicola O (Lower North Thompson), Thompson-Nicola P (Rivers and the Peaks) and Vancouver,in Saskatchewan, Aberdeen No. 373, Antelope Park No. 322, Antler No. 61, Argyle No. 1, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Battle River No. 438, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Stick No. 141, Biggar No. 347, Blaine Lake No. 434, Blucher No. 343, Bone Creek No. 108, Britannia No. 502, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buffalo No. 409, Caledonia No. 99, Cambria No. 6, Canaan No. 225, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Churchbridge No. 211, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342, Corman Park No. 344, Coteau No. 255, Coulee No. 136, Craik No. 222, Cut Knife No. 439, Cymri No. 36, Deer Forks No. 232, Douglas No. 436, Dufferin No. 190, Dundurn No. 314, Eagle Creek No. 376, Elcapo No. 154, Eldon No. 471, Elmsthorpe No. 100, Enfield No. 194, Enniskillen No. 3, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eye Hill No. 382, Eyebrow No. 193, Fertile Belt No. 183, Fertile Valley No. 285, Fillmore No. 96, Fox Valley No. 171, Frontier No. 19, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Golden West No. 95, Grandview No. 349, Grant No. 372, Grass Lake No. 381, Grassy Creek No. 78, Gravelbourg No. 104, Grayson No. 184, Great Bend No. 405, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazelwood No. 94, Heart’s Hill No. 352, Hillsborough No. 132, Hillsdale No. 440, Huron No. 223, Key West No. 70, Kindersley No. 290, King George No. 256, Kingsley No. 124, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lake Alma No. 8, Lake Johnston No. 102, Lake of the Rivers No. 72, Langenburg No. 181, Laurier No. 38, Lawtonia No. 135, Leask No. 464, Lomond No. 37, Lone Tree No. 18, Loreburn No. 254, Lost River No. 313, Manitou Lake No. 442, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Mariposa No. 350, Marquis No. 191, Marriott No. 317, Martin No. 122, Maryfield No. 91, Mayfield No. 406, McCraney No. 282, Meeting Lake No. 466, Meota No. 468, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montrose No. 315, Moose Creek No. 33, Moose Jaw No. 161, Moose Mountain No. 63, Moosomin No. 121, Morris No. 312, Morse No. 165, Mount Pleasant No. 2, Mountain View No. 318, Newcombe No. 260, North Battleford No. 437, Norton No. 69, Oakdale No. 320, Old Post No. 43, Paynton No. 470, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Poplar Valley No. 12, Prairiedale No. 321, Progress No. 351, Reciprocity No. 32, Redberry No. 435, Redburn No. 130, Reford No. 379, Reno No. 51, Riverside No. 168, Rocanville No. 151, Rodgers No. 133, Rosedale No. 283, Rosemount No. 378, Rosthern No. 403, Round Hill No. 467, Round Valley No. 410, Rudy No. 284, Saltcoats No. 213, Sarnia No. 221, Saskatchewan Landing No. 167, Saskatoon, Scott No. 98, Senlac No. 411, Shamrock No. 134, Silverwood No. 123, Snipe Lake No. 259, Souris Valley No. 7, Spy Hill No. 152, St. Andrews No. 287, Stonehenge No. 73, Storthoaks No. 31, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Tramping Lake No. 380, Turtle River No. 469, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Walpole No. 92, Waverley No. 44, Wawken No. 93, Webb No. 138, Wellington No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willowdale No. 153, Wilton No. 472, Winslow No. 319, Wise Creek No. 77, Wood Creek No. 281 and Wood River No. 74, andin Alberta, Athabasca County, Barrhead County No. 11, Beaver County, Bighorn No. 8, Birch Hills County, Calgary, Camrose County, Cardston County, Clear Hills, Clearwater County, Cypress County, Edmonton, Fairview No. 136, Flagstaff County, Foothills County, Forty Mile County No. 8, Grande Prairie County No. 1, Kneehill County, Lacombe County, Lac Ste. Anne County, Lamont County, Leduc County, Lethbridge County, Mackenzie County, Minburn County No. 27, Mountain View County, Newell County, Northern Lights County, Northern Sunrise County, Paintearth County No. 18, Parkland County, Peace No. 135, Pincher Creek No. 9, Ponoka County, Provost No. 52, Ranchland No. 66, Red Deer County, Rocky View County, Saddle Hills County, Smoky Lake County, Special Areas No. 2, No. 3 and No. 4, Spirit River No. 133, Starland County, Stettler County No. 6, St. Paul County No. 19, Strathcona County, Sturgeon County, Taber, Thorhild County, Two Hills County No. 21, Vermilion River County, Vulcan County, Wainwright No. 61, Warner County No. 5, Westlock County, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26 and Woodlands County; andin respect of the 2024 calendar year, the Consolidated Census Subdivisions, based on the 2021 Statistics Canada Census, ofin Manitoba, Division No. 23, Unorganized,in British Columbia, Bulkley-Nechako A to G, Cariboo A to D, F and I to K, Central Coast A, Columbia-Shuswap A and E, East Kootenay A to C and F, Fraser-Fort George A, C to F and H, Kitimat-Stikine B and C (Part 1), Mount Waddington C, North Coast C to E, Northern Rockies, Peace River B to E, Stikine Region, Strathcona C, Strathcona D (Oyster Bay-Buttle Lake), Thompson-Nicola A (Wells Gray Country) and Thompson-Nicola B (Thompson Headwaters),in Saskatchewan, Antelope Park No. 322, Battle River No. 438, Beaver River No. 622, Britannia No. 502, Buffalo No. 409, Chesterfield No. 261, Clinworth No. 230, Cut Knife No. 439, Deer Forks No. 232, Division No. 18, Unorganized, Douglas No. 436, Eagle Creek No. 376, Eldon No. 471, Enterprise No. 142, Eye Hill No. 382, Fox Valley No. 171, Frenchman Butte No. 501, Glenside No. 377, Grass Lake No. 381, Great Bend No. 405, Happyland No. 231, Heart’s Hill No. 352, Hillsdale No. 440, Kindersley No. 290, Loon Lake No. 561, Manitou Lake No. 442, Maple Creek No. 111, Mayfield No. 406, Meadow Lake No. 588, Medstead No. 497, Meeting Lake No. 466, Meota No. 468, Mervin No. 499, Milton No. 292, Mountain View No. 318, Newcombe No. 260, North Battleford No. 437, Oakdale No. 320, Parkdale No. 498, Paynton No. 470, Pleasant Valley No. 288, Prairiedale No. 321, Progress No. 351, Redberry No. 435, Reford No. 379, Reno No. 51, Rosemount No. 378, Round Hill No. 467, Round Valley No. 410, Senlac No. 411, Snipe Lake No. 259, Spiritwood No. 496, Tramping Lake No. 380, Turtle River No. 469, Wilton No. 472 and Winslow No. 319,in Alberta, Athabasca County, Barrhead County No. 11, Beaver County, Bighorn No. 8, Big Lakes County, Birch Hills County, Bonnyville No. 87, Brazeau County, Calgary, Camrose County, Cardston County, Clear Hills, Clearwater County, Cypress County, Edmonton, Fairview No. 136, Flagstaff County, Foothills County, Forty Mile County No. 8, Grande Prairie County No. 1, Greenview No. 16, Improvement District No. 12 Jasper Park, Improvement District No. 24 Wood Buffalo, Kneehill County, Lac la Biche County, Lacombe County, Lac Ste. Anne County, Lamont County, Leduc County, Lesser Slave River No. 124, Mackenzie County, Minburn County No. 27, Mountain View County, Newell County, Northern Lights County, Northern Sunrise County, Paintearth County No. 18, Parkland County, Peace No. 135, Pincher Creek No. 9, Ponoka County, Provost No. 52, Ranchland No. 66, Red Deer County, Rocky View County, Saddle Hills County, Smoky Lake County, Smoky River No. 130, Special Areas No. 2, No. 3 and No. 4, Spirit River No. 133, Starland County, Stettler County No. 6, St. Paul County No. 19, Strathcona County, Sturgeon County, Taber, Thorhild County, Two Hills County No. 21, Vermilion River County, Vulcan County, Wainwright No. 61, Westlock County, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26, Wood Buffalo, Woodlands County and Yellowhead County,in Yukon, Yukon, Unorganized,in Northwest Territories, Region 2, Unorganized, Region 3, Unorganized, Region 4, Unorganized, Region 5, Unorganized and Region 6, Unorganized, andin Nunavut, Kivalliq, Unorganized.For the purpose of this section, reserve has the same meaning as assigned by the Indian Act.For the purpose of this section, if a portion of territory is surrounded by the territory of a census division, census subdivision, municipal entity or other geographic designation listed in subsection (1) in respect of a year, that portion of territory is deemed to be listed under that subsection in respect of that year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-3, s. 2; SOR/2013-206, s. 2; SOR/2018-12, s. 1SOR/2019-247, s. 1SOR/2024-10, s. 1SOR/2025-194, s. 1
For the purposes of subsection 80.3(4) of the Act, the following regions are prescribed regions of flood or excessive moisture:in respect of the 2008 calendar year, in Manitoba,the rural municipalities of Alonsa, Armstrong, Bifrost, Coldwell, Dauphin, Eriksdale, Ethelbert, Fisher, Gimli, Glenella, Grahamdale, Lakeview, Lawrence, McCreary, Mossey River, Mountain South, Ochre River, Rockwood, Siglunes, St. Andrews, St. Laurent, Ste. Rose and Woodlands, andany reserve that is contiguous to a rural municipality referred to in subparagraph (i), or that is part of a series of contiguous reserves one of which is contiguous to a rural municipality referred to in subparagraph (i), of the bands designated as Dauphin River, Ebb and Flow, Fisher River, Kinonjeoshtegon First Nation, Lake Manitoba First Nation, Lake St. Martin, Little Saskatchewan, O-Chi-Chak-Ko-Sipi First Nation, Peguis, Pinaymootang First Nation, Sandy Bay and Skownan First Nation;in respect of the 2009 calendar year, in Manitoba, the rural municipalities of Alexander, Alonsa, Armstrong, Bifrost, Brokenead, Coldwell, Eriksdale, Fisher, Gimli, Grahamdale, Lac du Bonnet, Lawrence, Mossey River, Reynolds, Rockwood, St. Andrews, St. Clements, St. Laurent, Siglunes, Whitemouth and Woodlands, and Census Division No. 18, Unorganized, East and West Parts and No. 19, Unorganized, as developed by Statistics Canada for the 2006 Census;in respect of the 2010 calendar year,in Manitoba, Census Divisions No. 18 and 19, Unorganized and No. 20, Unorganized, North and South Parts, as these divisions were developed by Statistics Canada for the 2006 Census, the Rural Municipalities of Albert, Alexander, Alonsa, Armstrong, Arthur, Bifrost, Brenda, Brokenhead, Cameron, Coldwell, Dauphin, East St. Paul, Edward, Eriksdale, Ethelbert, Fisher, Gilbert Plains, Gimli, Glenella, Grahamdale, Grandview, Hillsburg, Kelsey, Lac du Bonnet, Lawrence, McCreary, Minitonas, Mountain, Mossey River, Ochre River, Pipestone, Reynolds, Rockwood, St. Andrews, St. Clements, St. Laurent, Ste. Rose, Shellmouth-Boulton, Shell River, Sifton, Siglunes, Swan River, West St. Paul, Whitemouth, Winchester and Woodlands and the Valley River 63A reserve, andin Saskatchewan, the Rural Municipalities of Aberdeen, Arborfield, Barrier Valley, Bayne, Big Quill, Birch Hills, Bjorkdale, Blaine Lake, Blucher, Buchanan, Buckland, Calder, Cana, Canwood, Churchbridge, Clayton, Colonsay, Connaught, Corman Park, Cote, Cupar, Duck Lake, Dundurn, Elfros, Emerald, Fish Creek, Flett’s Springs, Foam Lake, Garden River, Garry, Good Lake, Grant, Great Bend, Hazel Dell, Hoodoo, Hudson Bay, Humboldt, Insinger, Invergordon, Invermay, Ituna Bon Accord, Kellross, Kelvington, Keys, Kinistino, Laird, Lakeland, Lake Lenore, Lakeside, Lakeview, Leask, Leroy, Lipton, Livingston, Lost River, McCraney, Moose Range, Morris, Mount Hope, Nipawin, Orkney, Paddockwood, Pleasantdale, Ponass Lake, Porcupine, Prairie Rose, Preeceville, Prince Albert, Redberry, Rosedale, Rosthern, Saltcoats, Sasman, Shellbrook, Sliding Hills, Spalding, St. Louis, St. Peter, St. Philips, Stanley, Star City, Three Lakes, Tisdale, Torch River, Touchwood, Tullymet, Usborne, Vanscoy, Viscount, Wallace, Willow Creek, Wolverine, Wood Creek and Wreford; andin respect of the 2011 calendar year,in Manitoba, Census Divisions No. 18 and 19, Unorganized, as these divisions were developed by Statistics Canada for the 2006 Census, and the Rural Municipalities of Albert, Alonsa, Archie, Armstrong, Arthur, Bifrost, Brenda, Cameron, Coldwell, Cornwallis, Dauphin, Edward, Eriksdale, Fisher, Gimli, Glenella, Glenwood, Grahamdale, Kelsey, Lakeview, Lawrence, McCreary, Miniota, Morton, Mossey River, Oakland, Ochre River, Pipestone, Portage la Prairie, St. Laurent, Ste. Rose, Sifton, Siglunes, Wallace, Westbourne, Whitehead, Whitewater, Winchester, Woodlands and Woodworth, andin Saskatchewan, the Rural Municipalities of Abernethy, Antler, Argyle, Benson, Bratt’s Lake, Brock, Brokenshell, Browning, Calder, Caledonia, Cambria, Cana, Chester, Churchbridge, Coalfields, Cymri, Elcapo, Enniskillen, Estevan, Fertile Belt, Fillmore, Francis, Golden West, Grayson, Griffin, Hazelwood, Indian Head, Kingsley, Lake Alma, Lajord, Langenburg, Laurier, Lomond, Martin, Maryfield, McLeod, Montmartre, Moose Creek, Moose Mountain, Moosomin, Mount Pleasant, Norton, Orkney, Reciprocity, Rocanville, Saltcoats, Scott, Silverwood, Souris Valley, Spy Hill, Stanley, Storthoaks, Tecumseh, Tullymet, Wallace, Walpole, Wawken, Wellington, Weyburn, Willowdale and Wolseley.For the purpose of this section, band and reserve have the same meaning as assigned by the Indian Act.For the purposes of this section, a city, county, district or other municipality is deemed to include any area that is surrounded by the territory of the city, county, district or other municipality.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 31, s. 17; SOR/2011-32, s. 2; SOR/2013-206, s. 3
For the purpose of subparagraph (v) of the description of A in paragraph 6(1)(k) of the Act, the amount prescribed for a taxation year isif a taxpayer is employed in a taxation year by a particular person principally in selling or leasing automobiles and an automobile is made available in the year to the taxpayer or a person related to the taxpayer by the particular person or a person related to the particular person, 31 cents; andin any other case, 34 cents.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/95-244, s. 6; SOR/99-239, s. 1; SOR/2000-326, s. 1; SOR/2001-253, s. 1; SOR/2003-266, s. 1; SOR/2005-265, s. 1; SOR/2006-250, s. 1; 2009, c. 2, s. 113; SOR/2014-118, s. 1; SOR/2016-296, s. 1; SOR/2018-56, s. 1SOR/2023-246, s. 1SOR/2025-193, s. 1
For the purposes of paragraph 18(1)(r) of the Act, the amount in respect of the use of one or more automobiles in a taxation year by an individual for kilometres driven in the year for the purpose of earning income of the individual is the total ofthe product of 66 cents multiplied by the number of those kilometres;the product of 6 cents multiplied by the lesser of 5,000 and the number of those kilometres; andthe product of 4 cents multiplied by the number of those kilometres driven in the Yukon Territory, the Northwest Territories or Nunavut.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-673, s. 4; SOR/99-239, s. 2; SOR/2000-326, s. 2; SOR/2001-253, s. 2; SOR/2003-266, s. 2; SOR/2005-265, s. 2; SOR/2006-250, s. 2; 2009, c. 2, s. 114; SOR/2014-118, s. 2; SOR/2015-122, s. 1; SOR/2016-296, s. 2SOR/2023-246, s. 2SOR/2025-193, s. 2
For the purposes of subsection 13(2), paragraph 13(7)(g), subparagraph 13(7)(h)(iii), subsections 20(4) and (16.1), the description of B in paragraph 67.3(d) and subparagraph 85(1)(e.4)(i) of the Act, the amount prescribed iswith respect to an automobile acquired, or leased under a lease entered into, after August 1989 and before 1991, $24,000; andwith respect to an automobile acquired, or leased under a lease entered into, after 1990, the amount determined by the formulaA + BwhereAis, with respect to an automobile acquired, or leased under a lease entered into,before 1997, $24,000,in 1997, $25,000,in 1998 or 1999, $26,000,in 2000, $27,000,after 2000 and before 2022, $30,000,after 2021 and before 2023, $34,000,after 2022 and before 2024, $36,000,after 2023 and before 2025, $37,000, andafter 2024, $38,000, andBis the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the automobile if it had been acquired, at a cost equal to A before the application of the federal and provincial sales taxes, if the automobilewas acquired, at the time of the acquisition, orwas leased, at the time the lease was entered into.For the purposes of paragraph 13(7)(i) of the Act, the amount prescribed in respect of a zero-emission passenger vehicle of a taxpayer is the amount determined by the formulaA + BwhereAis, with respect to a vehicle acquired,after March 18, 2019 and before 2022, $55,000,after 2021 and before 2023, $59,000, andafter 2022, $61,000; andBis the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the vehicle if it had been acquired by the taxpayer at a cost equal to A, before the application of the federal and provincial sales taxes.For the purpose of the description of A in section 67.2 of the Act, the amount prescribed in respect of an automobile that is acquiredafter August 1989 and before 1997 or after 2000 and before 2024, is $300; andafter 2023, is $350.For the purpose of the description of A in paragraph 67.3(c) of the Act, the amount prescribed in respect of a taxation year of a lessee is, with respect to an automobile leased under a lease entered intoafter August 1989 and before 1991, $650; andafter 1990, the amount determined by the formulaA + BwhereAisfor leases entered into after 1990 but before 1997, $650,for leases entered into in 1997, $550,for leases entered into in 1998 or 1999, $650,for leases entered into in 2000, $700,for leases entered into after 2000 but before 2022, $800,for leases entered into after 2021 but before 2023, $900,for leases entered into after 2022 but before 2024, $950,for leases entered into after 2023 but before 2025, $1,050, andfor leases entered into after 2024, $1,100, andBis the sum of the federal and provincial sales taxes that would have been payable on a monthly payment under the lease in the taxation year of the lessee if, before those taxes, the lease had required monthly payments equal to A.For the purpose of the description of C in paragraph 67.3(d) of the Act, the amount prescribed in respect of an automobile leased under a lease entered into after August 1989 is the amount equal to 100/85 of the amount determined in accordance with subsection (1) in respect of the automobile.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-673, s. 4; SOR/94-128, s. 2; SOR/95-244, s. 7; SOR/99-239, s. 3; SOR/2000-326, s. 3; SOR/2001-253, s. 32019, c. 29, s. 59SOR/2023-246, s. 3SOR/2025-193, s. 3
In this section, carrier has the meaning assigned by subsection 146.3(1) of the Act.For the purposes of this section, a retirement income fund is a qualifying retirement income fund at a particular time ifthe fund was entered into before 1993 and the carrier has not accepted any property as consideration under the fund after 1992 and at or before the particular time, orthe carrier has not accepted any property as consideration under the fund after 1992 and at or before the particular time, other than property transferred from a retirement income fund that, immediately before the time of the transfer, was a qualifying retirement income fund.For the purposes of the definition minimum amount in subsection 146.3(1) of the Act, the prescribed factor in respect of an individual for a year in connection with a retirement income fund that was a qualifying retirement income fund at the beginning of the year is the factor, determined pursuant to the following table, that corresponds to the age in whole years (in the table referred to as “X”) attained by the individual at the beginning of that year or that would have been so attained by the individual if the individual had been alive at the beginning of that year.XFactorUnder 721/(90 – X)720.0540730.0553740.0567750.0582760.0598770.0617780.0636790.0658800.0682810.0708820.0738830.0771840.0808850.0851860.0899870.0955880.1021890.1099900.1192910.1306920.1449930.1634940.187995 or older0.2000
For the purposes of the definition minimum amount in subsection 146.3(1) of the Act and subsection 8506(5), the prescribed factor in respect of an individual for a year in connection with a retirement income fund (other than a fund that was a qualifying retirement income fund at the beginning of the year) or the designated factor in respect of an individual for a year in connection with an account under a money purchase provision of a registered pension plan, as the case may be, is the factor, determined in accordance with the following table, that corresponds to the age in whole years (in the table referred to as “Y”) attained by the individual at the beginning of the year or that would have been so attained by the individual if the individual was alive at the beginning of the year.YFactorUnder 711/(90 – Y)710.0528720.0540730.0553740.0567750.0582760.0598770.0617780.0636790.0658800.0682810.0708820.0738830.0771840.0808850.0851860.0899870.0955880.1021890.1099900.1192910.1306920.1449930.1634940.187995 or older0.2000
[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.]  SOR/94-127, s. 1; SOR/2000-63, s. 2; SOR/2005-264, s. 14; 2015, c. 36, s. 23
For the purpose of section 67.6 of the Act, penalties imposed under paragraph 110.1(1)(a) of the Excise Act are prescribed.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2011-187, s. 1
For the purpose of the definition eligible apprentice in subsection 127(9) of the Act, a prescribed trade in respect of a province means, at all times in a taxation year, a trade that is, at any time in that taxation year, a Red Seal trade for the province under the Interprovincial Standards Red Seal Program.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2007, c. 35, s. 80
Prescribed Forest Management Plans for Woodlots
For the purposes of subsections 70(9), (9.3) and (10) and 73(3) of the Act, a prescribed forest management plan in respect of a woodlot of a taxpayer is a written plan for the management and development of the woodlot thatdescribes the composition of the woodlot, provides for the attention necessary for the growth, health and quality of the trees on the woodlot and is approved in accordance with the requirements of a provincial program established for the sustainable management and conservation of forests; orhas been certified in writing by a recognized forestry professional to be a plan that describes the composition of the woodlot, provides for the attention necessary for the growth, health and quality of the trees on the woodlot and includesa description of, or a map indicating, the location of the woodlot,a description of the characteristics of the woodlot, including a map of the woodlot site that shows those characteristics,a description of the development of the woodlot, including the activities carried out on the woodlot, since the taxpayer acquired it,information acceptable to the recognized forestry professional estimatingthe ages and heights of the trees on the woodlot, and their species,the quantity of wood on the woodlot,the quality and composition of the soil underlying the woodlot, andthe quantity of wood that the woodlot could yield as a result of the implementation of the plan,a description of, and the timing for, the activities proposed to be carried out on the woodlot under the plan, including any of those activities that deal withharvesting,renewal and regeneration,the application of silviculture techniques, andresponsible stewardship and the protection of the environment, anda description of the objectives and strategies for the management and development of the woodlot over a period of at least five years.A recognized forestry professional referred to in subsection (1) is a forestry professional who has a degree, diploma or certificate recognized by the Canadian Forestry Accreditation Board, the Canadian Institute of Forestry or the Canadian Council of Technicians and Technologists.A recognized forestry professional referred to in subsection (1) is not required to express an opinion as to the completeness or correctness of a description of past activities referred to in subparagraph (1)(b)(iii) or of information referred to in subparagraph (1)(b)(iv) if the information was not prepared by that recognized forestry professional.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2007-35, s. 1
[Repealed, 2013, c. 33, s. 36]
[Repealed, 2013, c. 33, s. 36][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2008-49, s. 1; 2013, c. 33, s. 36; SOR/2013-22, s. 1
Carved-out Property Exclusion
For the purposes of paragraph (g) of the definition carved-out property in subsection 209(1) of the Act, a prescribed property at any time isany right, licence or privilege to prospect, explore, drill or mine for minerals in a mineral resource (other than a bituminous sands deposit, oil sands deposit or oil shale deposit) in Canada;any rental or royalty computed by reference to the amount or value of production of minerals from a mineral resource (other than a bituminous sands deposit, oil sands deposit or oil shale deposit) in Canada;any real property in Canada the principal value of which depends on its mineral resource content (other than a bituminous sands deposit, oil sands deposit or oil shale deposit);any right to or interest in any property described in any of paragraphs (a) to (c); ora property acquired before that time by a taxpayer in the circumstances described in paragraph (c) of the definition carved-out property in subsection 209(1) of the Act, except where it is reasonable to consider that one of the main reasons for the acquisition of the property, or any series of transactions or events in which the property was acquired by the taxpayer was to reduce or postpone tax that would, but for this paragraph, be payable by another taxpayer under Part XII.1 of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-463, s. 2
Prescribed Prizes
For the purposes of subparagraph 56(1)(n)(i) of the Act, a prescribed prize is any prize that is recognized by the general public and that is awarded for meritorious achievement in the arts, the sciences or service to the public but does not include any amount that can reasonably be regarded as having been received as compensation for services rendered or to be rendered.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-473, s. 2
Specified Pension Plans
For the purposes of the definition specified pension plan in subsection 248(1) of the Act, a prescribed arrangement is the Saskatchewan Pension Plan established under The Saskatchewan Pension Plan Act, chapter S-32.2 of the Statutes of Saskatchewan, 1986, as amended from time to time.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/89-474, s. 1; SOR/2001-295, s. 8; 2011, c. 24, s. 89
Prescribed Financial Institutions
For the purposes of the definitions excluded income and excluded revenue and specified deposit in subsection 95(2.5) of the Act, each of the following is a prescribed financial institution:a member of the Canadian Payments Association; anda credit union that is a shareholder or member of a body corporate or organization that is a central for the purposes of the Canadian Payments Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-285, s. 2; SOR/94-686, s. 79(F); SOR/97-505, s. 10; SOR/2009-302, s. 11; 2013, c. 33, s. 37
Prescribed Reserve Amount and Recovery Rate
For the purpose of clause 20(1)(l)(ii)(C) of the Act, the prescribed reserve amount for a taxation year means the aggregate ofwhere the taxpayer is a bank, an amount equal to the lesser ofthe amount of the reserve reported in its annual report for the year that is filed with and accepted by the relevant authority or, where the taxpayer was throughout the year subject to the supervision of the relevant authority but was not required to file an annual report for the year with the relevant authority, in its financial statements for the year, as general provisions or as specific provisions, in respect of exposures to designated countries in respect of loans or lending assets of the taxpayer made or acquired by it in the ordinary course of its business, andan amount in respect of the loans or lending assets of the taxpayer at the end of the year that were made or acquired by the taxpayer in the ordinary course of its business and reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as part of the taxpayer’s total exposure to designated countries for the purposes of determining the taxpayer’s general provisions or specific provisions referred to in subparagraph (i) or that were acquired by the taxpayer after August 16, 1990 and reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country (in this subparagraph referred to as the “loans”) equal to the positive or negative amount, as the case may be, determined by the formula45% (A + B) - (B + C)whereAis the aggregate of all amounts each of which is the amount that would be the amortized cost of a loan to the taxpayer at the end of the year if the definition amortized cost in section 248 of the Act were read without reference to paragraphs (e) and (i) thereof,Bis the aggregate of all amounts each of which is the amount, if any, by which the principal amount of a loan outstanding at the time it was acquired by the taxpayer exceeds the amortized cost of the loan to the taxpayer immediately after the time it was acquired by the taxpayer, andCis the aggregate of all amounts each of which isan amount deducted in respect of a loan under clause 20(1)(l)(ii)(B) of the Act in computing the taxpayer’s income for the year, oran amount in respect of a loan determined as the amount, if any, by whichthe aggregate of all amounts in respect of the loan deducted under paragraph 20(1)(p) of the Act in computing the taxpayer’s income for the year or a preceding taxation yearexceedsthe aggregate of all amounts in respect of the loan included under paragraph 12(1)(i) of the Act in computing the taxpayer’s income for the year or a preceding taxation year, andwhere the taxpayer is a bank, the positive or negative amount that would be determined under the formula in subparagraph (a)(ii) in respect of the specified loans owned by the taxpayer at the end of the year if that subparagraph applied to those loans.[Repealed, SOR/99-91, s. 2][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-78, s. 4; SOR/92-681, s. 3(F); SOR/94-686, s. 40(F); SOR/99-91, s. 2
[Repealed, SOR/99-91, s. 3][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-91, s. 3
For the purposes of paragraph 8000(a),the principal amount outstanding at any time of a lending asset of a taxpayer that is a share of the capital stock of a corporation is the part of the consideration received by the corporation for the issue of the share that is outstanding at that time;wherea taxpayer realizes a loss from the disposition of a loan or lending asset described in subparagraph 8000(a)(ii) or a specified loan described in paragraph 8000(a.1) (in this paragraph referred to as the “former loan”) for consideration that included another loan or lending asset that was a loan or lending asset described in subparagraph 8000(a)(ii) or paragraph 8000(a.1) (in this paragraph referred to as the “new loan”), andin the case of a former loan that is not a specified loan, the loss is included in computing the taxpayer’s provisionable assets as reported for the year to the relevant authority, in accordance with the guidelines established by the relevant authority, for the purpose of determining the taxpayer’s general provisions or specific provisions in respect of exposures to designated countries,the principal amount of the new loan outstanding at the time it was acquired by the taxpayer is deemed to be equal to the principal amount of the former loan outstanding immediately before that time; andwhere at the end of a particular taxation year a taxpayer owns a specified loan that, at the end of the preceding taxation year, was described in an inventory of the taxpayer, the amortized cost of the specified loan to the taxpayer at the end of the particular year is its value determined under section 10 of the Act at the end of the preceding year for the purpose of computing the taxpayer’s income for the preceding year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-78, s. 4; SOR/94-686, s. 79(F); SOR/99-91, s. 4
Where a taxpayer elects to have this section apply by notifying the Minister in writing within 90 days after the day on which this section is published in the Canada Gazette, the loans or lending assets of the taxpayer that are described in subparagraph 8000(a)(ii) shall not include any loan or lending asset acquired by the taxpayer before November 1988 from a person with whom the taxpayer was dealing at arm’s length.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-78, s. 4
[Repealed, SOR/99-91, s. 5][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-91, s. 5
For the purposes of subparagraph 8000(a)(ii), where a loan or lending asset of a person (in this section referred to as the “holder”) related to a taxpayerwas reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country,was acquired by the holder or another person related to the taxpayer after August 16, 1990 as part of a series of transactions or events in which the taxpayer or a person related to the taxpayer disposed of a loan or lending asset thatfor the taxation year immediately preceding the particular year in which it was disposed of, was a loan or lending asset that was reported by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country, andwas a loan or lending asset a loss arising on the disposition of which would be a loss in respect of which a deduction is permitted under Part I of the Act to the taxpayer or a person related to the taxpayer, andhad an amortized cost to the holder, immediately after the time it was acquired by the holder, that was less than 55 per cent of its principal amount,the following rules apply:the loan or lending asset shall be deemedto be a loan or lending asset of the taxpayer at the end of the year,to be a loan or lending asset of the taxpayer that was acquired by the taxpayer at the time it was acquired by the holder, andto have an amortized cost to the taxpayer, at any time, that is equal to its amortized cost to the holder at that time, andany amount in respect of the loan or lending asset deducted under paragraph 20(1)(p) of the Act or included under paragraph 12(1)(i) of the Act in computing the holder’s income for a particular year shall be deemed to have been so deducted or included, as the case may be, in computing the income of the taxpayer for the year in which the particular year ends.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-78, s. 4
For the purposes of this Part,designated country has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (pays désigné)exposure to a designated country has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (risque que représente un pays désigné)general provisions has the same meaning as the expression general country risk provisions in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (provisions générales)provisionable assets has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (actifs ouvrant droit à provision)relevant authority means the Superintendent of Financial Institutions; (autorité compétente)specific provisions has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time. (provisions spécifiques)specified loan meansa United Mexican States Collateralized Par Bond due in 2019, ora United Mexican States Collateralized Discount Bond due in 2019; (prêt désigné)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-681, s. 3; SOR/99-91, s. 6
[Repealed, SOR/99-91, s. 7][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-91, s. 7
[Repealed, 2013, c. 34, s. 406]
[Repealed, 2013, c. 34, s. 406][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-78, s. 4; SOR/94-686, ss. 78(F), 79(F), 81(F); SOR/96-443, s. 3; 2013, c. 34, s. 406
[Repealed, 2013, c. 34, s. 406][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-78, s. 4; SOR/94-686, s. 78(F); SOR/96-443, s. 3; 2013, c. 34, s. 406
[Repealed, 2013, c. 34, s. 406][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-443, s. 3; SOR/2009-222, s. 6; 2013, c. 34, s. 406
[Repealed, 2013, c. 34, s. 406][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-443, s. 3; SOR/2009-222, s. 6; 2013, c. 34, s. 406
[Repealed, 2013, c. 34, s. 406][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-443, s. 3; SOR/2009-222, s. 6; 2013, c. 34, s. 406
[Repealed, 2013, c. 34, s. 406][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-443, s. 3; SOR/2009-222, s. 6; 2013, c. 34, s. 406
Prescribed Properties and Permanent EstablishmentsPrescribed Properties[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 14
For the purposes of subsection 16.1(1) of the Act, prescribed property meansexempt property, within the meaning assigned by paragraph 1100(1.13)(a), other than property leased on or before February 2, 1990 that isa truck or tractor that is designed for use on highways and has a “gross vehicle weight rating” (within the meaning assigned that expression by the Motor Vehicle Safety Regulations) of 11,778 kilograms or more,a trailer that is designed for use on highways and is of a type designed to be hauled under normal operating conditions by a truck or tractor described in subparagraph (i), ora railway car,property that is the subject of a lease where the tangible property, other than exempt property (within the meaning assigned by paragraph 1100(1.13)(a)), that was the subject of the lease had, at the time the lease was entered into, an aggregate fair market value not in excess of $25,000, andintangible property.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-196, s. 5; SOR/92-681, s. 3(F)
For the purposes of subsection 13(18.1), the definition Canadian renewable and conservation expense in subsection 66.1(6) and subparagraph 241(4)(d)(vi.1) of the Act, prescribed energy conservation property means property described in Class 43.1 or 43.2 in Schedule II.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-377, s. 5; SOR/2006-117, s. 7; 2013, c. 40, s. 114
Permanent Establishments
For the purposes of subsection 16.1(1), the definition outstanding debts to specified non-residents in subsection 18(5), subsections 100(1.3) and 112(2), the definition qualified Canadian transit organization in subsection 118.02(1), subsections 125.4(1) and 125.5(1), the definition taxable supplier in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), section 233.8, the definitions Canadian banking business and tax-indifferent investor in subsection 248(1) and paragraph 260(5)(a) of the Act, a permanent establishment of a person or partnership (either of whom is referred to in this section as the person) means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person’s business is conducted, andwhere the person carries on business through an employee or agent, established in a particular place, who has general authority to contract for the person or who has a stock of merchandise owned by the person from which the employee or agent regularly fills orders, the person shall be deemed to have a permanent establishment at that place,where the person is an insurance corporation, the person is deemed to have a permanent establishment in each country in which the person is registered or licensed to do business,where the person uses substantial machinery or equipment at a particular place at any time in a taxation year, the person shall be deemed to have a permanent establishment at that place,the fact that the person has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise shall not of itself be held to mean that the person has a permanent establishment, andwhere the person is a corporation, the fact that the person has a subsidiary controlled corporation at a place or a subsidiary controlled corporation engaged in trade or business at a place shall not of itself be held to mean that the person is operating a permanent establishment at that place,except that, where the person is resident in a country with which the Government of Canada has concluded a tax treaty in which the expression permanent establishment is given a particular meaning, that meaning shall apply.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 15; SOR/94-686, s. 41(F); SOR/2000-62, s. 4; SOR/2005-264, s. 15; SOR/2010-93, s. 25; 2012, c. 31, s. 68; 2013, c. 34, ss. 49, 427; 2016, c. 7, s. 58, c. 12, s. 82
[Repealed, SOR/2000-62, s. 5][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2000-62, s. 5
Pension Adjustments, Past Service Pension Adjustments, Pension Adjustment Reversals and Prescribed Amounts[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 5; SOR/99-9, s. 3Interpretation
In this Part,certifiable past service event, with respect to an individual, means a past service event that is required, by reason of subsection 147.1(10) of the Act, to be disregarded, in whole or in part, in determining the benefits to be paid under a registered pension plan with respect to the individual until a certification of the Minister in respect of the event has been obtained; (fait à attester)complete period of reduced services of an individual means a period of reduced services of the individual that is not part of a longer period of reduced services of the individual; (période complète de services réduits)designated savings arrangement of an individual means a RRIF or RRSP under which the individual is the annuitant, or the individual’s account under a money purchase provision of a registered pension plan; (mécanisme d’épargne désigné)excluded contribution, to a registered pension plan, means an amount that iscontributed to the plan and that is deductible under paragraph 60(j.1) of the Act, ortransferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (4) and (5) to (7) and 147.5(21) of the Act; (cotisation exclue)flat benefit provision of a pension plan means a defined benefit provision of the plan under which the amount of lifetime retirement benefits provided to each member is based on the aggregate of all amounts each of which is the product of a fixed rate and either the duration of service of the member or the number of units of output of the member, and, for the purposes of this definition, wherethe amount of lifetime retirement benefits provided under a defined benefit provision to each member is subject to a limit based on the remuneration received by the member, andthe limit may reasonably be considered to be included to ensure that the amount of lifetime retirement benefits provided to each member does not exceed the maximum amount of such benefits that may be provided by a registered pension plan,the limit shall be disregarded for the purpose of determining whether the provision is a flat benefit provision; (disposition à prestations forfaitaires)individual pension plan, in respect of a calendar year, means a registered pension plan that contains a defined benefit provision if, at any time in the year or a preceding year, the planhas fewer than four members and at least one of them is related to a participating employer in the plan, oris a designated plan and it is reasonable to conclude that the rights of one or more members to receive benefits under the plan exist primarily to avoid the application of paragraph (a); (régime de retraite individuel)member, in relation to a deferred profit sharing plan or a benefit provision of a registered pension plan, means an individual who has a right (either immediate or in the future and either absolute or contingent) to receive benefits under the plan or the provision, as the case may be, other than an individual who has such a right only because of the participation of another individual in the plan or under the provision, as the case may be; (participant)PA offset for a calendar year meansfor years before 1997, $1,000, andfor years after 1996, $600; (montant de réduction du FE)past service event means any transaction, event or circumstance that occurs after 1989 and as a consequence of whichretirement benefits become provided to an individual under a defined benefit provision of a pension plan in respect of a period before the time the transaction, event or circumstance occurs, other than, if accrued retirement benefits under the provision were previously reduced in respect of a particular period, an increase to a level of retirement benefits for that particular period not exceeding the level of retirement benefits from which those benefits were previously reduced,there is a change to the way in which retirement benefits provided to an individual under a defined benefit provision of a pension plan in respect of a period before the time the transaction, event or circumstance occurs are determined, including a change that is applicable only in specified circumstances, orthere is a change in the value of an indexing or other automatic adjustment that enters into the determination of the amount of an individual’s retirement benefits under a defined benefit provision of a pension plan in respect of a period before the time the value of the adjustment changes; (fait lié aux services passés)period of reduced services of an individual means, in connection with a benefit provision of a registered pension plan, a period that consists of one or more periods each of which isan eligible period of reduced pay or an eligible period of temporary absence of the individual with respect to an employer who participates under the provision, ora period of disability of the individual; (période de services réduits)refund benefit meanswith respect to an individual and a benefit provision of a pension plan, a return of contributions made by the individual under the provision, andwith respect to an individual and a deferred profit sharing plan, a return of contributions made by the individual to the plan,and includes any interest (computed at a rate not exceeding a reasonable rate) payable in respect of those contributions. (prestation de remboursement)resident compensation of an individual from an employer for a calendar year means the amount that would be the individual’s compensation from the employer for the year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraphs (b) and (c) of that definition. (rétribution de résident)The Minister may waive in writing the application of the definition individual pension plan in subsection (1) if is just and equitable to do so having regard to all the circumstances.The definition past service event in subsection (1) is applicable for the purposes of subsection 147.1(1) of the Act.All words and expressions used in this Part that are defined in sections 147 or 147.1 of the Act or in Part LXXXV have the meanings assigned in those provisions unless a definition in this Part is applicable.For the purposes of this Part, an officer who receives remuneration for holding an office shall, for any period that the officer holds the office, be deemed to render services to, and to be in the service of, the person from whom the officer receives the remuneration.For the purposes of this Part (other than the definition member in subsection (1)), where an individual has received an interest in an annuity contract in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a pension plan, any rights of the individual under the contract are deemed to be rights under the defined benefit provision.For the purposes of this Part and subsection 147.1(10) of the Act, and subject to subsection 8308(1), the following rules apply in respect of the determination of the benefits that are provided to an individual under a defined benefit provision of a pension plan at a particular time:where a term of the defined benefit provision, or an amendment to a term of the provision, is not applicable with respect to the individual before a specified date, the term shall be considered to have been added to the provision, or the amendment shall be considered to have been made to the term, on the specified date;where an alteration to the benefits provided to the individual is conditional on the requirements of subsection 147.1(10) of the Act being met, those requirements shall be assumed to have been met;benefits that will be reinstated if the individual returns to employment with an employer who participates in the plan shall be considered not to be provided until the individual returns to employment; andwhere benefits under the provision depend on the individual’s job category or other circumstances, the only benefits provided to the individual are the benefits that are relevant to the individual’s circumstances at the particular time.For the purposes of subsections 8301(3) and (8), paragraph 8302(3)(c), subsections 8302(5) and 8304(5) and (5.1), paragraphs 8304.1(10)(c) and (11)(c), subparagraph 8306(4)(a)(ii) and subsection 8308(3), the benefits to which an individual is entitled at any time under a deferred profit sharing plan or pension plan include benefits to which the individual has only a contingent right because a condition for the vesting of the benefits has not been satisfied.For the purposes of this Part, such portion of an amount allocated to an individual at any time under a money purchase provision of a registered pension plan asis attributable toforfeited amounts under the provision or earnings of the plan that are reasonably attributable to those amounts,a surplus under the provision,property transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan, orproperty transferred to the provision in respect of the surplus under another money purchase provision of the plan or under a money purchase provision of another registered pension plan, andcan reasonably be considered to be allocated in lieu of a contribution that would otherwise have been made under the provision by an employer in respect of the individualshall be deemed to be a contribution made under the provision by the employer with respect to the individual at that time and not to be an amount attributable to anything referred to in paragraph (a).For the purposes of this Part and Part LXXXV, where property held in connection with a particular benefit provision of a pension plan is made available at any time to pay benefits under another benefit provision of the plan, the property is deemed to be transferred at that time from the particular benefit provision to the other benefit provision.For the purposes of this Part and Parts LXXXIV and LXXXV, and subject to subsection (11), an individual is considered to have terminated from a deferred profit sharing plan or a benefit provision of a registered pension plan when the individual has ceased to be a member in relation to the plan or the provision, as the case may be.Where the benefits provided with respect to an individual under a particular defined benefit provision of a registered pension plan depend on benefits provided with respect to the individual under one or more other defined benefit provisions of registered pension plans (each of the particular provision and the other provisions being referred to in this subsection as a “related provision”), for the purposes of this Part and Parts LXXXIV and LXXXV,if the individual ceases, at any particular time after 1996, to be a member in relation to a specific related provision and is, at the particular time, a member in relation to another related provision, the individual is deemednot to terminate from the specific provision at the particular time, andto terminate from the specific provision at the earliest subsequent time when the individual is no longer a member in relation to any of the related provisions;if the conditions in subsection 8304.1(14) (read without reference to the words “after 1996 and”) are not satisfied with respect to the individual’s termination from a related provision, the conditions in that subsection are deemed not to be satisfied with respect to the individual’s termination from each of the other related provisions; anda specified distribution (as defined in subsection 8304.1(8)) made at any particular time in respect of the individual and a related provision is deemed, for the purpose of subsection 8304.1(5), also to be a specified distribution made at the particular time in respect of the individual and each of the other related provisions, except to the extent that the Minister has waived the application of this paragraph with respect to the distribution.For the purposes of this Part, whereall or any part of the amounts payable to an individual under a deferred profit sharing plan are paid by a trustee under the plan to a licensed annuities provider to purchase for the individual an annuity described in subparagraph 147(2)(k)(vi) of the Act, oran individual has acquired, in full or partial satisfaction of the individual’s entitlement to benefits under a benefit provision of a registered pension plan (other than benefits to which the individual was entitled only because of the participation of another individual under the provision), an interest in an annuity contract (other than as a consequence of a transfer of property from the provision to a registered retirement savings plan or a registered retirement income fund under which the individual is the annuitant),the individual is deemed to continue, from the time of the payment or acquisition, as the case may be, until the individual’s death, to be a member in relation to the plan or provision, as the case may be.For the purposes of this Part and Part LXXXV, where a benefit is to be provided, or may be provided, to an individual under a defined benefit provision of a registered pension plan as a consequence of an allocation that is to be made, or may be made, to the individual of all or part of an actuarial surplus under the provision, the individual is considered not to have any right to receive the benefit under the provision until the time at which the benefit becomes provided under the provision.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 1; SOR/99-9, s. 4; SOR/2003-328, s. 5; SOR/2005-264, s. 16; SOR/2007-116, s. 11(E); 2011, c. 24, s. 90SOR/2024-231, s. 21
Pension AdjustmentsPension Adjustment with Respect to Employer
For the purpose of subsection 248(1) of the Act, pension adjustment of an individual for a calendar year with respect to an employer means, subject to paragraphs 8308(4)(d) and (5)(c), the total of all amounts each of which isthe individual’s pension credit for the year with respect to the employer under a deferred profit sharing plan or under a benefit provision of a registered pension plan;the individual’s pension credit for the year with respect to the employer under a foreign plan, determined under section 8308.1; orthe individual’s pension credit for the year with respect to the employer under a specified retirement arrangement, determined under section 8308.3.Pension Credit — Deferred Profit Sharing PlanFor the purposes of subsection (1) and Part LXXXV and subsection 147(5.1) of the Act, and subject to subsection 8304(2), an individual’s pension credit for a calendar year with respect to an employer under a deferred profit sharing plan is the amount determined by the formulaA - BwhereAis the total of all amounts each of which isa contribution made to the plan in the year by the employer with respect to the individual, orthe portion of an amount allocated in the year to the individual that is attributable to forfeited amounts under the plan or to earnings of the plan in respect of forfeited amounts, except to the extent that the portionis included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, oris paid to the individual in the year; andBis nil, unless the conditions in subsection (2.1) are satisfied, in which case it is the total referred to in paragraph (2.1)(b).Conditions Re — Description of B in Subsection (2)The following are conditions for the purpose of the description of B in subsection (2):the total of all amounts, each of which would be the individual’s pension credit for the calendar year with respect to the employer under a deferred profit sharing plan if the description of B in subsection (2) were read as “is nil”., isequal to, or less than, 50% of the money purchase limit for the year,greater than 18% of the amount that would be the individual’s compensation from the employer for the year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraph (b) of that definition, andequal to, or less than, 18% of the amount that would be the individual’s compensation from the employer for the preceding year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraph (b) of that definition; andthe total of all amounts, each of which is an amount that is paid from the plan to the individual or the employer in the calendar year or in the first two months of the following year that can reasonably be considered to derive from an amount included in the value of A in subsection (2) with respect to the individual and the employer for the year, is greater than nil.Non-vested Termination from DPSPFor the purposes of subsection (1) and Part LXXXV and subsection 147(5.1) of the Act, wherean individual ceased in a calendar year after 1989 and before 1997 to be employed by an employer who participated in a deferred profit sharing plan for the benefit of the individual,as a consequence of the termination of employment, the individual ceased in the year to have any rights to benefits (other than a right to a refund benefit) under the plan,the individual was not entitled to benefits under the plan at the end of the year, or was entitled only to a refund benefit, andno benefit has been paid under the plan with respect to the individual, other than a refund benefit,the individual’s pension credit under the plan for the year with respect to the employer is nil.Pension Credit — Money Purchase ProvisionFor the purposes of subsection (1) and Part LXXXV and subsection 147.1(9) of the Act, and subject to subsections (4.1) and (8) and 8304(2), an individual’s pension credit for a calendar year with respect to an employer under a money purchase provision of a registered pension plan is the total of all amounts each of which isa contribution (other than an excluded contribution, a contribution described in paragraph 8308(6)(e) or (g) or a contribution made under subsection 147.1(20) of the Act) made under the provision in the year bythe individual, except to the extent that the contribution was not made in connection with the individual’s employment with the employer and is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, orthe employer with respect to the individual, orsuch portion of an amount allocated in the year to the individual as is attributable toforfeited amounts under the provision or earnings of the plan in respect thereof,a surplus under the provision,property transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan, orproperty transferred to the provision in respect of the surplus under another money purchase provision of the plan or under a money purchase provision of another registered pension plan,except to the extent that that portion isincluded in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan,paid to the individual in the year, orwhere the year is 1990, attributable to amounts forfeited before 1990 or earnings of the plan in respect thereof,except that the individual’s pension credit is nil where the year is before 1990, and, for the purposes of this subsection, the plan administrator shall determine the portion of a contribution made by an individual or an amount allocated to the individual that is to be included in determining the individual’s pension credit with respect to each employer.Money Purchase Pension Credits Based on Amounts AllocatedWhere,under the terms of a money purchase provision of a pension plan, the method for allocating contributions is such that contributions made by an employer with respect to a particular individual may be allocated to another individual, andthe Minister has, on the written application of the administrator of the plan, approved in writing a method for determining pension credits under the provision that, for each individual, takes into account amounts allocated to the individual,each pension credit under the provision is the amount determined in accordance with the method approved by the Minister.Pension Credit — Defined Benefit Provision of a Specified Multi-employer PlanFor the purposes of this Part and Part LXXXV and subsection 147.1(9) of the Act, an individual’s pension credit for a calendar year with respect to an employer under a defined benefit provision of a registered pension plan that is, in the year, a specified multi-employer plan is the aggregate ofthe aggregate of all amounts each of which is a contribution (other than an excluded contribution) made under the provision by the individualin the year, in respect ofthe year, ora plan year ending in the year (other than in respect of such portion of a plan year as is before 1990), orin January of the year (other than in January 1990) in respect of the immediately preceding calendar year,except to the extent that the contribution was not made in connection with the individual’s employment with the employer and is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan,the aggregate of all amounts each of which is a contribution made in the year by the employer in respect of the provision, to the extent that the contribution may reasonably be considered to be determined by reference to the number of hours worked by the individual or some other measure that is specific to the individual, andthe amount determined by the formula(A / B) × (C - B)whereAis the amount determined under paragraph (b) for the purpose of computing the individual’s pension credit,Bis the aggregate of all amounts each of which is the amount determined under paragraph (b) for the purpose of computing the pension credit of an individual for the year with respect to the employer under the provision, andCis the aggregate of all amounts each of which is a contribution made in the year by the employer in respect of the provision,except that, where the year is before 1990, the individual’s pension credit is nil.Pension Credit — Defined Benefit ProvisionSubject to subsections (7), (8) and (10) and sections 8304 and 8308, for the purposes of this Part and Part LXXXV and subsection 147.1(9) of the Act, an individual’s pension credit for a calendar year with respect to an employer under a defined benefit provision of a particular registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) isif the year is after 1989, the amount determined by the formulaA - BwhereAis 9 times the individual’s benefit entitlement under the provision with respect to the employer and the year, andBis the amount, if any, by which the PA offset for the year exceeds the total of all amounts each of which is the value of B determined under this paragraph for the purpose of computing the individual’s pension credit for the yearwith respect to the employer under any other defined benefit provision of a registered pension plan,with respect to any other employer who at any time in the year does not deal at arm’s length with the employer, under a defined benefit provision of a registered pension plan, orwith respect to any other employer under a defined benefit provision of the particular plan; andif the year is before 1990, nil.Pension Credit — Defined Benefit Provision of a Multi-employer PlanWhere a registered pension plan is a multi-employer plan (other than a specified multi-employer plan) in a calendar year, the following rules apply, except to the extent that the Minister has waived in writing their application in respect of the plan, for the purpose of determining the pension credit of an individual for the year under a defined benefit provision of the plan:where the individual is employed in the year by more than one participating employer, the pension credit of the individual for the year under the provision with respect to a particular employer shall be determined as if the individual were not employed by any other participating employer;the description of B in paragraph (6)(a) shall be read as“Bis the amount determined by the formula(C × D) - EwhereCis the PA offset for the year,Diswhere the member rendered services on a full-time basis throughout the year to the employer, one, andin any other case, the fraction (not greater than one) that measures the services that, for the purpose of determining the member’s lifetime retirement benefits under the provision, the member is treated as having rendered in the year to the employer, expressed as a proportion of the services that would have been rendered by the member in the year to the employer if the member had rendered services to the employer on a full-time basis throughout the year, andEis the total of all amounts each of which is the value of B determined under this paragraph for the purpose of computing the individual’s pension credit for the year with respect to the employer under any other defined benefit provision of the plan; and”;where a period in the year is a period of reduced services of the individual, the pension credit of the individual for the year under the provision with respect to each participating employer shall be determined as the aggregate ofthe pension credit that would be determined if no benefits (other than benefits attributable to services rendered by the individual) had accrued to the individual in respect of periods of reduced services, andthe pension credit that would be determined if the only benefits that had accrued to the individual were benefits in respect of periods of reduced services, other than benefits attributable to services rendered by the individual during such periods; andsubsection (10) shall not apply.Non-vested Termination from RPPFor the purposes of this Part and Part LXXXV and subsection 147.1(9) of the Act, and subject to subsection (9), wherean individual ceased in a calendar year after 1989 and before 1997 to be employed by an employer who participated in a registered pension plan for the benefit of the individual,as a consequence of the termination of employment, the individual ceased in the year to have any rights to benefits (other than a right to a refund benefit) under a benefit provision of the plan,the individual was not entitled to benefits under the provision at the end of the year, or was entitled only to a refund benefit, andno benefit has been paid under the provision with respect to the individual, other than a refund benefit,the individual’s pension credit under the provision for the year with respect to the employer iswhere the provision is a money purchase provision, the total of all amounts each of which is a contribution (other than an additional voluntary contribution made by the individual in 1990, an excluded contribution or a contribution described in paragraph 8308(6)(e)) made under the provision in the year by the individual, except to the extent that the contribution was not made in connection with the individual’s employment with the employer and is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, andwhere the provision is a defined benefit provision, the lesser ofthe pension credit that would be determined if this subsection were not applicable, andthe aggregate of all amounts each of which is a contribution (other than an excluded contribution) made under the provision by the individual in, and in respect of, the year, except to the extent that the contribution was not made in connection with the individual’s employment with the employer and is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan.Multi-employer PlansSubsection (8) is not applicable in respect of a registered pension plan that is a multi-employer plan in a calendar year, except wherethe plan is not a specified multi-employer plan in the year;if the plan contains a defined benefit provision, the Minister has waived in writing the application of paragraph (7)(b) in respect of the plan for the year; andthe Minister has approved in writing the application of subsection (8) in respect of the plan for the year.Transition Rule — Money Purchase OffsetsWhere,throughout the period beginning on January 1, 1981 and ending on December 31 of a particular calendar year after 1989 and before 2000, there has been subtracted, in determining the amount of lifetime retirement benefits under a defined benefit provision of a registered pension plan (other than a specified multi-employer plan), the amount of lifetime retirement benefits under a money purchase provision of the plan or of another registered pension plan,lifetime retirement benefits under the defined benefit provision are determined, at the end of the particular year, in substantially the same manner as they were determined at the end of 1989, andfor each individual and each calendar year before 1990, the amount of employer contributions made under the money purchase provision for the year with respect to the individual did not exceed $3,500,the pension credit of an individual for the particular year with respect to an employer under the defined benefit provision is equal to the amount, if any, by whichthe amount that would, but for this subsection, be the individual’s pension creditexceedsthe lesser of$2,500, andthe amount determined by the formula1/10 × (A - (B × C))whereAis the balance in the individual’s account under the money purchase provision at the end of 1989,Bis the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period ending before 1990 that is pensionable service of the individual under the defined benefit provision and that is not part of a longer period ending before 1990 that is pensionable service of the individual under the provision, andCis the amount that would be the individual’s pension credit for 1989 with respect to the employer under the defined benefit provision if subsection (6) were read without reference to the words “if the year is after 1989” in paragraph (6)(a) and without reference to paragraph (6)(b).Timing of ContributionsSubject to paragraph (12)(b), for the purposes of this Part, a contribution made by an employer in the first two months of a calendar year to a deferred profit sharing plan, in respect of a money purchase provision of a registered pension plan, or in respect of a defined benefit provision of a registered pension plan that was, in the immediately preceding calendar year, a specified multi-employer plan, shall be deemed to have been made by the employer at the end of the immediately preceding calendar year and not to have been made in the year, to the extent that the contribution can reasonably be considered to relate to a preceding calendar year.Indirect ContributionsFor the purposes of this Part and Part LXXXIV, where a trade union or association of employers (in this subsection and subsections (13) and (14) referred to as the “contributing entity”) makes contributions to a registered pension plan,such portion of a payment made to the contributing entity by an employer or individual as may reasonably be considered to relate to the plan (determined in accordance with subsection (13), where that subsection is applicable) shall be deemed to be a contribution made to the plan by the employer or individual, as the case may be, at the time the payment was made to the contributing entity; andsubsection (11) shall not apply in respect of a contribution deemed by paragraph (a) to have been made to the plan.Apportionment of PaymentsFor the purposes of subsection (12), where employers or individuals make payments in a calendar year to a contributing entity to enable the contributing entity to make contributions to a registered pension plan and the payments are not made solely for the purpose of being contributed to the plan, the contributing entity shalldetermine, in a manner that is reasonable in the circumstances, the portion of each payment that relates to the plan;make the determination in such a manner that all contributions made by the contributing entity to the plan, other than contributions made by the contributing entity as an employer or former employer of members of the plan, are considered to be funded by payments made to the contributing entity by employers or individuals;in the case of payments remitted to the contributing entity by an employer, notify the employer in writing, by January 31 of the immediately following calendar year, of the portion, or of the method for determining the portion, of each such payment that relates to the plan; andin the case of payments remitted to the contributing entity by an individual, notify the administrator of the plan in writing, by January 31 of the immediately following calendar year, of the total amount of payments made in the year by the individual that relate to the plan.Non-compliance by Contributing EntityWhere a contributing entity does not comply with the requirements of subsection (13) as they apply in respect of payments made to the contributing entity in a calendar year to enable the contributing entity to make contributions to a registered pension plan,the plan becomes, on February 1 of the immediately following calendar year, a revocable plan; andthe Minister may make any determinations referred to in subsection (13) that the contributing entity failed to make, or failed to make in accordance with that subsection.Transferred AmountsFor the purposes of subparagraph (b)(ii) of the description of A in subsection (2), paragraph (2.1)(b) and subparagraph (4)(b)(iv), an amount transferred for the benefit of an individual from a registered pension plan or a deferred profit sharing plan directly to a registered pension plan, a registered retirement savings plan, a registered retirement income fund or a deferred profit sharing plan is deemed to be an amount that was not paid to the individual.Subsequent EventsExcept as otherwise expressly provided in this Part, each pension credit of an individual for a calendar year shall be determined without regard to any transactions, events or circumstances that occur subsequent to the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 2; SOR/96-311, s. 6; SOR/99-9, s. 5; SOR/2003-328, s. 6; SOR/2005-264, s. 17; SOR/2007-116, s. 12(E)2023, c. 26, s. 105
Benefit Entitlement
For the purposes of subsection 8301(6), the benefit entitlement of an individual under a defined benefit provision of a registered pension plan in respect of a calendar year and an employer is the portion of the individual’s benefit accrual under the provision in respect of the year that can reasonably be considered to be attributable to the individual’s employment with that employer.Benefit Accrual for YearFor the purposes of subsection (1), and subject to subsections (6), (8) and (9), the benefit accrual of an individual under a defined benefit provision of a registered pension plan in respect of a calendar year is the amount computed in accordance with the following rules:determine the portion of the individual’s normalized pension under the provision at the end of the year that can reasonably be considered to have accrued in respect of the year;where the year is after 1989 and before 1995, determine the lesser of the amount determined under paragraph (a) andfor 1990, $1,277.78,for 1991 and for 1992, $1,388.89,for 1993, $1,500.00, andfor 1994, $1,611.11; andwhere, in determining the amount of lifetime retirement benefits payable to the individual under the provision, there is deducted from the amount of those benefits that would otherwise be payable the amount of lifetime retirement benefits payable to the individual under a money purchase provision of a registered pension plan or the amount of a lifetime annuity payable to the individual under a deferred profit sharing plan, reduce the amount that would otherwise be determined under this subsection by 1/9 of the total of all amounts each of which is the pension credit of the individual for the year under such a money purchase provision or deferred profit sharing plan.Normalized PensionsFor the purposes of paragraph (2)(a), and subject to subsection (11), the normalized pension of an individual under a defined benefit provision of a registered pension plan at the end of a particular calendar year is the amount (expressed on an annualized basis) of lifetime retirement benefits that would be payable under the provision to the individual immediately after the end of the particular year ifwhere lifetime retirement benefits have not commenced to be paid under the provision to the individual before the end of the particular year, they commenced to be paid immediately after the end of the year;where the individual had not attained 65 years of age before the time at which lifetime retirement benefits commenced to be paid (or are assumed by reason of paragraph (a) to have commenced to be paid) to the individual, the individual attained that age at that time;all benefits to which the individual is entitled under the provision were fully vested;where the amount of the individual’s lifetime retirement benefits would otherwise be determined with a reduction computed by reference to the individual’s age, duration of service or both, or with any other similar reduction, no such reduction were applied;no reduction in the amount of the individual’s lifetime retirement benefits were applied in respect of benefits described in any of clauses 8503(2)(a)(vi)(A) to (C);no adjustment that is permissible under subparagraph 8503(2)(a)(ix) were made to the amount of the individual’s lifetime retirement benefits;where the amount of the individual’s lifetime retirement benefits depends on the remuneration received by the individual in a calendar year (in this paragraph referred to as the “other year”) other than the particular year, the remuneration received by the individual in the other year were determined in accordance with the following rules:where the individual was remunerated for both the particular year and the other year as a person who rendered services on a full-time basis throughout each of the years, the remuneration received by the individual in the other year is identical to the remuneration received by the individual in the particular year,where subparagraph (i) is not applicable and the individual rendered services in the particular year, the remuneration received by the individual in the other year is the remuneration that the individual would have received in the other year (or a reasonable estimate thereof determined by a method acceptable to the Minister) had the individual’s rate of remuneration in the other year been the same as the individual’s rate of remuneration in the particular year, andwhere subparagraph (i) is not applicable and the individual did not render services in the particular year, the remuneration received by the individual in the other year is the remuneration that the individual would have received in the other year (or a reasonable estimate thereof determined by a method acceptable to the Minister) had the individual’s rate of remuneration in the other year been the amount that it is reasonable to consider would have been the individual’s rate of remuneration in the particular year had the individual rendered services in the particular year;where the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration and all or a portion of the remuneration received by the individual in the particular year is treated under the provision as if it were remuneration received in a calendar year preceding the particular year for services rendered in that preceding year, that remuneration were remuneration for services rendered in the particular year;where the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration and the particular year is after 1989 and before 1995, benefits, to the extent that they can reasonably be considered to be in respect of the following range of annual remuneration, were excluded:where the particular year is 1990, the range from $63,889 to $86,111,where the particular year is 1991 or 1992, the range from $69,444 to $86,111,where the particular year is 1993, the range from $75,000 to $86,111, andwhere the particular year is 1994, the range from $80,556 to $86,111;wherethe amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration,the formula for determining the amount of the individual’s lifetime retirement benefits includes an adjustment to the individual’s remuneration for one or more calendar years,the adjustment to the individual’s remuneration for a year (in this paragraph referred to as the “specified year”) consists of multiplying the individual’s remuneration for the specified year by a factor that does not exceed the ratio of the average wage for the year in which the amount of the individual’s lifetime retirement benefits is required to be determined to the average wage for the specified year (or a substantially similar measure of the change in the wage measure), andthe adjustment may reasonably be considered to be made to increase the individual’s remuneration for the specified year to reflect, in whole or in part, increases in average wages and salaries from that year to the year in which the amount of the individual’s lifetime retirement benefits is required to be determined,the formula did not include the adjustment to the individual’s remuneration for the specified year;where the amount of the individual’s lifetime retirement benefits depends on the Year’s Maximum Pensionable Earnings for calendar years other than the particular year, the Year’s Maximum Pensionable Earnings for each such year were equal to the Year’s Maximum Pensionable Earnings for the particular year;where the amount of the individual’s lifetime retirement benefits depends on the Year’s Additional Maximum Pensionable Earnings for calendar years other than the particular year, the Year’s Additional Maximum Pensionable Earnings for each such year were equal to the Year’s Additional Maximum Pensionable Earnings for the particular year;if the amount of the individual’s lifetime retirement benefits depends solely on the actual amount of the pension (in this paragraph referred to as the “statutory pension”) payable to the individual under paragraph 46(1)(a) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to25 per cent of the lesser of the Year’s Maximum Pensionable Earnings for the particular year andin the case of an individual who renders services throughout the particular year on a full-time basis to employers who participate in the plan, the aggregate of all amounts each of which is the individual’s remuneration for the particular year from such an employer, andin any other case, the amount that it is reasonable to consider would be determined under clause (A) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, orat the option of the plan administrator, any other amount determined in accordance with a method for estimating the statutory pension that can be expected to result in amounts substantially similar to amounts determined under subparagraph (i);where the amount of the individual’s lifetime retirement benefits depends on the actual amount of the pension (in this paragraph referred to as the “statutory pension”) payable to the individual under paragraphs 46(1)(a) to (c) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal tothe amount determined by the formulaA × BwhereAisfor 2018 and preceding years, 0.25,for 2019, 0.2625,for 2020, 0.275,for 2021, 0.29165,for 2022, 0.3125, andfor 2023 and subsequent years, 1/3, andBisfor each particular year prior to 2024, the lesser of the Year’s Maximum Pensionable Earnings for the year and,in the case of an individual who renders services throughout the particular year on a full-time basis to employers who participate in the plan, the aggregate of all amounts each of which is the individual’s remuneration for the particular year from such an employer, andin any other case, the amount that it is reasonable to consider would be determined under subclause (I) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, orfor each particular year after 2023, the lesser of the Year’s Additional Maximum Pensionable Earnings for the year and the amount determined under subclause (A)(I) or (II), as the case may be, orat the option of the plan administrator, any other amount determined in accordance with a method for estimating the statutory pension that can be expected to result in amounts substantially similar to amounts determined under subparagraph (i);where the amount of the individual’s lifetime retirement benefits depends on a pension (in this paragraph referred to as the “statutory pension”) payable to the individual under Part I of the Old Age Security Act, the amount of statutory pension payable for each calendar year were equal to the aggregate of all amounts each of which is the amount of the full monthly pension payable under Part I of that Act for a month in the particular year other than an amount described in subsection 7(5) of that Act;except as otherwise expressly permitted in writing by the Minister, where the amount of the individual’s lifetime retirement benefits depends on the amount of benefits (other than public pension benefits or similar benefits of a country other than Canada) payable under another benefit provision of a pension plan or under a deferred profit sharing plan, the amounts of the other benefits were such as to maximize the amount of the individual’s lifetime retirement benefits;where the individual’s lifetime retirement benefits would otherwise include benefits that the plan is required to provide by reason of a designated provision of the law of Canada or a province (within the meaning assigned by section 8513), or that the plan would be required to provide if each such provision were applicable to the plan with respect to all its members, such benefits were not included;wherethe individual attained 65 years of age before lifetime retirement benefits commenced to be paid (or are assumed by reason of paragraph (a) to have commenced to be paid) to the individual, andan adjustment is made in determining the amount of those benefits for the purpose of offsetting, in whole or in part, the decrease in the value of lifetime retirement benefits that would otherwise result by reason of the deferral of those benefits after the individual attained 65 years of age,that adjustment were not made, except to the extent that the adjustment exceeds the adjustment that would be made on an actuarially equivalent basis;except as otherwise provided by subsection (4), where the amount of the individual’s lifetime retirement benefits depends onthe form of benefits provided with respect to the individual under the provision (whether or not at the option of the individual), includingthe benefits to be provided after the death of the individual,the amount of retirement benefits, other than lifetime retirement benefits, provided to the individual, orthe extent to which the lifetime retirement benefits will be adjusted to reflect changes in the cost of living, orcircumstances that are relevant in determining the form of benefits,the form of benefits and the circumstances were such as to maximize the amount of the individual’s lifetime retirement benefits on commencement of payment;where the amount of the individual’s lifetime retirement benefits depends on whether the individual is totally and permanently disabled at the time at which retirement benefits commence to be paid to the individual, the individual were not so disabled at that time; andwhere lifetime retirement benefits have commenced to be paid under the provision to the individual before the end of the particular year, benefits payable as a consequence of cost-of-living adjustments described in paragraph 8303(5)(k) were disregarded.Optional FormsWhere the terms of a defined benefit provision of a registered pension plan permit a member to elect to receive additional lifetime retirement benefits in lieu of benefits that would, in the absence of the election, be payable after the death of the member if the member dies after retirement benefits under the provision commence to be paid to the member, paragraph (3)(o) applies as if the following elections were not available to the member:an election to receive additional lifetime retirement benefits, not exceeding additional benefits determined on an actuarially equivalent basis, in lieu of all or any portion of a guarantee that retirement benefits will be paid for a minimum period of 10 years or less, andan election to receive additional lifetime retirement benefits in lieu of retirement benefits that would otherwise be payable to an individual who is a spouse or common-law partner or former spouse or common-law partner of the member for a period beginning after the death of the member and ending with the death of the individual, wherethe election may be made only if the life expectancy of the individual is significantly shorter than normal and has been so certified in writing by a medical doctor or a nurse practitioner licensed to practise under the laws of a province or of the place where the individual resides, andthe additional benefits do not exceed additional benefits determined on an actuarially equivalent basis and on the assumption that the individual has a normal life expectancy.Termination of Entitlement to BenefitsFor the purposes of subsection (3), where an individual ceased in a calendar year to be entitled to all or part of the lifetime retirement benefits provided to the individual under a defined benefit provision of a registered pension plan, the normalized pension of the individual under the provision at the end of the year shall be determined on the assumption that the individual continued to be entitled to those benefits immediately after the end of the year.Defined Benefit OffsetWhere the amount of lifetime retirement benefits provided under a particular defined benefit provision of a registered pension plan to a member of the plan depends on the amount of lifetime retirement benefits provided to the member under one or more other defined benefit provisions of registered pension plans, the benefit accrual of the member under the particular provision in respect of a calendar year is the amount, if any, by whichthe amount that would, but for this subsection, be the benefit accrual of the member under the particular provision in respect of the year if the benefits provided under the other provisions were provided under the particular provisionexceedsthe amount that would be the benefit accrual of the member under the other provisions in respect of the year if the other provisions were a single provision.Offset of Specified Multi-employer Plan BenefitsWhere the amount of an individual’s lifetime retirement benefits under a defined benefit provision (in this subsection referred to as the “supplemental provision”) of a registered pension plan depends on the amount of benefits payable under a defined benefit provision of a specified multi-employer plan, the defined benefit provision of the specified multi-employer plan shall be deemed to be a money purchase provision for the purpose of determining the benefit accruals of the individual under the supplemental provision.Transition Rule — Career Average BenefitsWhereon March 27, 1988 lifetime retirement benefits under a defined benefit provision of a pension plan were determined as the greater of benefits computed on a career average basis and benefits computed on a final or best average earnings basis,the method for determining lifetime retirement benefits under the provision was not amended after March 27, 1988 and before the end of a particular calendar year, andit was reasonable to expect, on January 1, 1990, that the lifetime retirement benefits to be paid under the provision to at least 75 per cent of the members of the plan on that date (other than members to whom benefits do not accrue under the provision after that date) will be determined on a final or best average earnings basis,at the option of the plan administrator, benefit accruals under the provision in respect of the particular year may, where the particular year is before 1992, be determined without regard to the career average formula.Transition Rule — Benefit Rate Greater Than 2 Per CentSubject to subsection (6), wherethe amount of lifetime retirement benefits provided under a defined benefit provision of a registered pension plan to a member of the plan is determined, in part, by multiplying the member’s remuneration (or a function of the member’s remuneration) by one or more benefit accrual rates, andthe largest benefit accrual rate that may be applicable is greater than 2 per cent,the member’s benefit accrual under the provision in respect of 1990 or 1991 is the lesser ofthe member’s benefit accrual otherwise determined, and2 per cent of the aggregate of all amounts each of which is the amount that would, if the definition compensation in subsection 147.1(1) of the Act were read without reference to subparagraphs (a)(iii) and (iv) and paragraphs (b) and (c) thereof, be the member’s compensation for the year from an employer who participated in the plan in the year for the benefit of the member.Period of Reduced RemunerationFor the purposes of paragraph (9)(d), where a member of a registered pension plan is provided with benefits under a defined benefit provision of the plan in respect of a period in 1990 or 1991throughout which, by reason of disability, leave of absence, lay-off or other circumstance, the member rendered no services, or rendered a reduced level of services, to employers who participate in the plan, andthroughout which the member received no remuneration, or a reduced rate of remuneration,the member’s compensation shall be determined on the assumption that the member received remuneration for the period equal to the amount of remuneration that it is reasonable to consider the member would have received if the member had rendered services throughout the period on a regular basis (having regard to the services rendered by the member before the period) and the member’s rate of remuneration had been commensurate with the member’s rate of remuneration when the member did render services on a regular basis.Anti-avoidanceWhere the terms of a defined benefit provision of a registered pension plan can reasonably be considered to have been established or modified so that a pension credit of an individual for a calendar year under the provision would, but for this subsection, be reduced as a consequence of the application of paragraph (3)(g), that paragraph shall not apply in determining the individual’s normalized pension under the provision in respect of the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 3; SOR/2001-67, s. 1; SOR/2001-188, s. 6; 2017, c. 33, s. 1012019, c. 29, s. 60SOR/2024-231, s. 22
Past Service Pension AdjustmentPSPA with Respect to Employer
For the purpose of subsection 248(1) of the Act, past service pension adjustment of an individual for a calendar year in respect of an employer means the total ofthe accumulated past service pension adjustment (in this Part referred to as “accumulated PSPA”) of the individual for the year with respect to the employer, determined as of the end of the year,the total of all amounts each of which is the foreign plan PSPA (determined under subsection 8308.1(5) or (6)) of the individual with respect to the employer associated with a modification of benefits in the year under a foreign plan (as defined in subsection 8308.1(1)), andthe total of all amounts each of which is the specified retirement arrangement PSPA (determined under subsection 8308.3(4) or (5)) of the individual with respect to the employer associated with a modification of benefits in the year under a specified retirement arrangement (as defined in subsection 8308.3(1)).Accumulated PSPA for YearFor the purposes of this Part, the accumulated PSPA of an individual for a calendar year with respect to an employer, determined as of any time, is the total of all amounts each of which is the individual’s provisional past service pension adjustment (in this Part referred to as “provisional PSPA”) with respect to the employer that is associated witha past service event (other than a certifiable past service event with respect to the individual) that occurred in the preceding year; ora certifiable past service event with respect to the individual where the Minister has, in the year and before that time, issued a certification for the purposes of subsection 147.1(10) of the Act in respect of the event and the individual.1991 Past Service Events and CertificationsFor the purposes of subsection (2),a past service event that occurred in 1991 (including, for greater certainty, a past service event that is deemed by paragraph 8304(3)(b) to have occurred immediately after the end of 1990) shall be deemed to have occurred on January 1, 1992 and not to have occurred in 1991; anda certification issued by the Minister in 1991 shall be deemed to have been issued on January 1, 1992 and not to have been issued in 1991.Provisional PSPASubject to subsections (8) and (10) and sections 8304 and 8308, for the purposes of this Part, the provisional PSPA of an individual with respect to an employer that is associated with a past service event that occurs at a particular time in a particular calendar year is the amount determined by the formulaA - B - C + DwhereAis the aggregate of all amounts each of which is, in respect of a calendar year after 1989 and before the particular year, the amount that would have been the individual’s pension credit for the year with respect to the employer under a defined benefit provision of a registered pension plan (other than a plan that is, at the particular time, a specified multi-employer plan) had the individual’s benefit entitlement under the provision in respect of the year and the employer been equal to the individual’s redetermined benefit entitlement (determined as of the particular time) under the provision in respect of the year and the employer,Bis the aggregate that would be determined for A if the reference in the description of A to “determined as of the particular time” were read as a reference to “determined as of the time immediately before the particular time”,Cis such portion of the amount of the individual’s qualifying transfers made in connection with the past service event as is not deducted in computing the provisional PSPA of the individual with respect to any other employer, andDis the total of all amounts each of which is an excess money purchase transfer in relation to the individual and the past service event that is not included in determining any other provisional PSPA of the individual that is associated with the past service event.Redetermined Benefit EntitlementFor the purposes of the description of A in subsection (3), an individual’s redetermined benefit entitlement under a defined benefit provision of a registered pension plan in respect of a calendar year and an employer, determined as of a particular time, is the amount that would be determined under section 8302 to be the individual’s benefit entitlement under the provision in respect of the year and the employer if, for the purpose of computing the benefit accrual of the individual in respect of the year under the provision and, where subsection 8302(6) is applicable, under any other defined benefit provision, the amount determined under paragraph 8302(2)(a) in respect of a specific provision were equal to that portion of the individual’s normalized pension (computed in accordance with subsection (5)) under the specific provision at the particular time, determined with reference to the year, as may reasonably be considered to have accrued in respect of the year.Normalized PensionsFor the purposes of subsection (4), the normalized pension of an individual under a defined benefit provision of a registered pension plan at a particular time, determined with reference to a calendar year (in this subsection referred to as the “pension credit year”), is the amount (expressed on an annualized basis) of lifetime retirement benefits, other than excluded benefits, that would be payable to the individual under the provision immediately after the particular time ifwhere lifetime retirement benefits have not commenced to be paid under the provision to the individual before the particular time, they commenced to be paid immediately after the particular time,where the individual had not attained 65 years of age before the time at which lifetime retirement benefits commenced to be paid (or are assumed by reason of paragraph (a) to have commenced to be paid) to the individual, the individual attained that age at that time,the amount of the individual’s lifetime retirement benefits were determined with regard to all past service events occurring at or before the particular time and without regard to past service events occurring after the particular time,paragraphs 8302(3)(c) to (p) (other than paragraph 8302(3)(g), where subsection 8302(11) was applicable in respect of the pension credit year and the provision or would have been applicable had all benefits provided as a consequence of past service events become provided in the pension credit year) were applied for the purpose of determining the amount of the individual’s lifetime retirement benefits and, for the purpose of those paragraphs, the pension credit year were the particular year referred to in those paragraphs, andwherethe amount of the individual’s lifetime retirement benefits under the provision depends on the individual’s remuneration, andall or part of the individual’s lifetime retirement benefits in respect of the pension credit year became provided as a consequence of a past service event, pursuant to terms of the provision that enable benefits to be provided to members of the plan in respect of periods of employment with employers who have not participated under the provision,the remuneration received by the individual from each such employer in respect of a period of employment in respect of which the individual is provided with benefits under the provision were remuneration received from an employer who has participated under the provision for the benefit of the individual,and, for the purposes of this subsection, the following benefits are excluded benefits:where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual requires the calculation of an amount that is the product of a fixed rate and the duration of all or part of the individual’s pensionable service, benefits payable as a direct consequence of an increase in the value of the fixed rate at any time (in this paragraph referred to as the “time of increase”) after the pension credit year, other than benefitsprovided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual, orthat would not have become provided had the value of the fixed rate been increased to the amount determined by the formulaA × (B / C)whereAis the value of the fixed rate immediately before the time of the increase,Bis the average wage for the calendar year that includes the time of the increase, andCisif the value of the fixed rate was last increased or established in the calendar year that includes the time of the increase, the average wage for that year, orotherwise, the average wage for the year immediately preceding the calendar year that includes the time of increase,where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual includes a limit that is the product of the duration of the individual’s pensionable service and the lesser of a percentage of the individual’s remuneration and a fixed rate, and the value of the fixed rate is increased after the pension credit year to an amount equal to the defined benefit limit for the earlier of the year in which the increase occurs and the year in which retirement benefits under the provision commenced to be paid to the individual, the portion of the benefits payable as a direct consequence of the increase that would not have become provided had the value of the fixed rate been set at the defined benefit limit for the pension credit year, ifthe value of the fixed rate was, immediately before the increase, equal to the defined benefit limit for the year in which the value of the fixed rate was last established, andwhere the year in which the value of the fixed rate was last established precedes the year immediately preceding the year in which the increase occurs,the Minister has approved in writing the application of this paragraph in respect of the past service event,there are more than nine active members (within the meaning assigned by paragraph 8306(4)(a)) under the provision, andthe plan is not a designated plan,where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual includes a limit that is the product of the duration of the individual’s pensionable service and the lesser of a percentage of the individual’s remuneration and a fixed rate the value of which can reasonably be considered to be fixed each year as a portion of the defined benefit limit for that year, benefits payable as a direct consequence of an increase, after the pension credit year, in the value of the fixed rate to reflect the defined benefit limit for the year in which the increase occurs, ifexcept as otherwise expressly permitted by the Minister, it is reasonable to consider that, for years after 1989, the ratio of the fixed rate to the defined benefit limit has been, and will remain, constant,the benefits are not provided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual,the Minister has approved in writing the application of this paragraph in respect of the past service event, andthe plan is not a designated plan,wherethe provision is a flat benefit provision,at the particular time, the amount (expressed on an annual basis) of lifetime retirement benefits provided under the provision to each member in respect of pensionable service in each calendar year does not exceed 40 per cent of the defined benefit limit for the year that includes the particular time,the conditions in subsection 8306(2) are satisfied in respect of the provision and the past service event in connection with which the normalized pension is being calculated, andonly one fixed rate is applicable in determining the amount of the individual’s lifetime retirement benefits,benefits provided as a direct consequence of an increase in the value of the fixed rate at any time (in this paragraph referred to as the “time of increase”) after the pension credit year, other than benefitsprovided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual, orthat would not have become provided had the value of the fixed rate been increased to the greater ofthe greatest of all amounts each of which is an amount determined by the formulaA × (B / C)whereAis a value of the fixed rate in the period beginning on January 1, 1984 and ending immediately before the time of increase,Bis the average wage for the calendar year that includes the time of increase, andCis the average wage for the later of 1984 and the calendar year in which the value of the fixed rate used for A was first effective, andthe amount determined by the formulaD + (E × F)whereDis the value of the fixed rate immediately before the time of increase,Eis the amount by which the value of the fixed rate used for D would have to be increased to provide an increase in the individual’s annual lifetime retirement benefits equal to $18 for each year of pensionable service, andFis the duration (measured in years, including any fraction of a year) of the period beginning on the later of January 1, 1984 and the day on which the value of the fixed rate used for D was first effective and ending on the day that includes the time of increase,where the provision is a flat benefit provision, benefits provided as a direct consequence of an increase at any time (in this paragraph referred to as the “time of increase”) after the pension credit year in the value of a fixed rate under the provision wherethe value of the fixed rate was increased pursuant to an agreement made before 1992, andat the time the agreement was made, it was reasonable to expect that the percentage increase in the value of the fixed rate would approximate or be less than the percentage increase in the average wage from the calendar year in which the value of the fixed rate was last increased before the time of increase (or, if the increase is the first increase, the calendar year in which the initial value of the fixed rate was first applicable) to the calendar year that includes the time of increase,where the provision is a flat benefit provision under which the amount of each member’s retirement benefits depends on the member’s job category or rate of pay in such a manner that the ratio of the amount of lifetime retirement benefits to remuneration does not significantly increase as remuneration increases, benefits provided as a direct consequence of a change, after the pension credit year, in the individual’s job category or rate of pay,wherethe individual’s pensionable service under the provision ends before the particular time,the individual’s lifetime retirement benefits under the provision have been adjusted by a cost-of-living or similar adjustment in respect of the period (in this paragraph referred to as the “deferral period”) beginning at the latest ofthe time the individual’s pensionable service under the provision ends,if the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration, the end of the most recent period for which the individual received remuneration that is taken into account in determining the individual’s lifetime retirement benefits,if the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration and the remuneration is adjusted as described in paragraph 8302(3)(h), the end of the period in respect of which the adjustment is made, andif the formula for determining the amount of the individual’s lifetime retirement benefits requires the calculation of an amount that is the product of a fixed rate and the duration of all or part of the individual’s pensionable service (or other measure of services rendered by the individual), the time as of which the value of the fixed rate applicable with respect to the individual was established,and ending at the earlier of the particular time and the time, if any, at which lifetime retirement benefits commenced to be paid under the provision to the individual, andthe adjustment is warranted, having regard to all prior such adjustments, by the increase in the Consumer Price Index or in the wage measure from the commencement of the deferral period to the time the adjustment was made,benefits payable as a consequence of the adjustment,benefits payable as a consequence of a cost-of-living adjustment made after the time lifetime retirement benefits commenced to be paid under the provision to the individual, where the adjustmentis warranted, having regard to all prior such adjustments, by the increase in the Consumer Price Index from that time to the time the adjustment was made, oris a periodic adjustment described in subparagraph 8503(2)(a)(ii), andsuch portion of the individual’s lifetime retirement benefits aswould not otherwise be excluded in determining the individual’s normalized pension,may reasonably be considered to be attributable to cost-of-living adjustments or to adjustments made by reason of increases in a general measure of salaries and wages (other than increases in such a measure after the time lifetime retirement benefits commenced to be paid under the provision to the individual), andis acceptable to the Minister.Qualifying TransfersFor the purposes of subsections (3) and 8304(5), (7) and (10), and subject to subsection (6.1) and paragraph 8304(2)(h), the amount of an individual’s qualifying transfers made in connection with a past service event is the total of all amounts each of which isthe portion of an amount transferred to a registered pension planin accordance with any of subsections 146(16), 147(19) and 147.3(2), (5) and (7) of the Act, orfrom a specified multi-employer plan in accordance with subsection 147.3(3) of the Actthat is transferred to fund benefits provided to the individual as a consequence of the past service event; orthe amount of any property held in connection with a benefit provision of a registered pension plan that is made available to fund benefits provided to the individual under another benefit provision of the plan as a consequence of the past service event, where the transaction by which the property is made so available is such that, if the benefit provisions were in separate registered pension plans, the transaction would constitute a transfer of property from one plan to the other in accordance with any of subsections 147.3(2), (5) and (7) of the Act.Exclusion for Pre-1990 BenefitsThe amount of an individual’s qualifying transfers made in connection with a past service event shall be determined under subsection (6) without regard to the portion, if any, of amounts transferred or property made available, as the case may be, that can reasonably be considered to have been transferred or made available to fund benefits provided in respect of periods before 1990.Deemed PaymentWherean individual has given an irrevocable direction thatan amount be paid to a registered pension plan, orproperty held in connection with a benefit provision of a registered pension plan be made available to fund benefits provided to the individual under another benefit provision of the planin the event that the Minister issues a certification for the purposes of subsection 147.1(10) of the Act with respect to the individual and to benefits provided under a defined benefit provision of the plan as a consequence of a past service event, andthe amount is to be paid or the property is to be made available, as the case may be,where subparagraph (ii) does not apply, on or before the day that is 90 days after the day on which the certification is received by the administrator of the plan, andwhere the plan was deemed by paragraph 147.1(3)(a) of the Act to be a registered pension plan at the time the direction was given, on or before the day that is 90 days after the later ofthe day on which the certification is received by the administrator of the plan, andthe day on which the administrator of the plan receives written notice from the Minister of the registration of the plan for the purposes of the Act,the amount or property, as the case may be, is deemed, for the purpose of subsection (6), to have been paid or made available, as the case may be, at the time the direction was given.Excess Money Purchase TransferWhere lifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan (other than a specified multi-employer plan) in respect of a period (in this subsection referred to as the “past service period”) thatwas previously pensionable service of the individual under a particular defined benefit provision of a registered pension plan (other than a specified multi-employer plan),ceased to be pensionable service of the individual under the particular provision as a result of the payment of a single amount, all or part of which was transferred on behalf of the individual from the particular provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a defined benefit provision of a registered pension plan that was, at the time of the transfer, a specified multi-employer plan,has not, at any time after the payment of the single amount and before the past service event, been pensionable service of the individual under any defined benefit provision of a registered pension plan (other than a specified multi-employer plan), andis not, for the purpose of subsection 8304(5), a qualifying past service period in relation to the individual and the past service event,the amount determined by the formulaA - Bis, for the purpose of the description of D in subsection (3), an excess money purchase transfer in relation to the individual and the past service event, whereAis the portion of the amount transferred, as described in paragraph (b), that can reasonably be considered to be attributable to benefits in respect of the portion of the past service period that is after 1989, andBis the total of all amounts each of which is the portion of a pension credit, or the grossed-up amount of a provisional PSPA, of the individual that can reasonably be considered to be attributable to benefits previously provided under the particular provision in respect of the past service period.Specified Multi-employer PlanWhere, in a calendar year, an individual makes a contribution (other than an excluded contribution) in respect of a defined benefit provision of a registered pension plan that is, in the year, a specified multi-employer plan, and the contributionis made in respect of a period after 1989 and before the year, andis not included in determining the individual’s pension credit for the year with respect to any employer under the provision,the individual’s provisional PSPA with respect to an employer who participates in the plan, associated with the payment of the contribution, is the portion of the contribution that is not included in the individual’s provisional PSPA with respect to any other employer who participates in the plan, and, for the purpose of this subsection, the plan administrator shall determine the portion of the contribution to be included in the provisional PSPA of the individual with respect to each employer.Conditional ContributionsFor the purpose of subsection (8), a contribution includes an amount paid by an individual to a registered pension plan where the right of any person to retain the amount on behalf of the plan is conditional on the Minister issuing a certification for the purposes of subsection 147.1(10) of the Act as it applies with respect to the individual and to benefits provided as a consequence of the payment.Benefits in respect of Foreign ServiceWhere, as a consequence of a past service event, benefits become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period throughout which the individual was employed outside Canada, and the Minister has consented in writing to the application of this subsection, each provisional PSPA of the individual that is associated with the past service event shall be determined on the assumption that no benefits were provided in respect of the period.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 4; SOR/96-311, s. 7; SOR/99-9, s. 6; SOR/2001-67, s. 2; SOR/2005-264, s. 18; 2007, c. 35, s. 81; 2011, c. 24, s. 91; SOR/2011-188, s. 25
Past Service Benefits — Additional RulesReplacement of Defined Benefits
Wherean individual ceased, at any time in a calendar year, to have any rights to benefits under a defined benefit provision of a registered pension plan (in this subsection referred to as the “former provision”),benefits became provided at that time to the individual under another defined benefit provision of a registered pension plan (in this subsection referred to as the “current provision”) in lieu of the benefits under the former provision,the benefits that became provided at that time to the individual under the current provision in respect of the period in the year before that time are attributable to employment with the same employers as were the individual’s benefits in respect of that period under the former provision,no amount was transferred in the year on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund or a money purchase provision of a registered pension plan, andno benefits became provided under the former provision to the individual in the year and after that time,each pension credit of the individual under the former provision for the year is nil.Replacement of Money Purchase BenefitsWherean individual ceased, at any time in a calendar year, to have any rights to benefits under a money purchase provision of a registered pension plan or under a deferred profit sharing plan (in this subsection referred to as the “former provision”),benefits became provided at that time to the individual under a defined benefit provision of a registered pension plan (in this subsection referred to as the “current provision”) in lieu of benefits under the former provision,the benefits that became provided at that time to the individual under the current provision in respect of the period in the year before that time are attributable to employment with the same employers who made contributions under the former provision in respect of that period on behalf of the individual,no amount was transferred in the year on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a deferred profit sharing plan,no contributions were made under the former provision by or on behalf of the individual, and no other amounts were allocated under the former provision to the individual, in the year and after that time, andit is reasonable to consider that no excess would, if this subsection did not apply and if the year ended at that time, be determined under any of paragraphs 147(5.1)(a) to (c), 147.1(8)(a) and (b) and (9)(a) and (b) of the Act with respect to the individual for the year,the following rules apply:each pension credit of the individual under the former provision for the year is nil, andthe amount, if any, of the individual’s qualifying transfers made in connection with the replacement of the individual’s benefits shall be determined under subsection 8303(6) without regard to the portion, if any, of amounts transferred from the former provision to the current provision that can reasonably be considered to relate to an amount that, but for paragraph (g), would have been included in determining the individual’s pension credit under the former provision for the year.Past Service Benefits in Year of Past Service EventSubject to subsection (4), where, as a consequence of a past service event that occurs at a particular time in a calendar year, benefits (in this subsection and subsection (4) referred to as “past service benefits”) become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period in the year and before the particular time that, immediately before the past service event, was not pensionable service of the individual under the provision, the following rules apply, except to the extent that the Minister has waived in writing their application in respect of the plan:each pension credit of the individual under the provision for the year shall be determined as if the past service benefits had not become provided to the individual;where the year is 1990, the past service event shall be deemed, for the purposes of this Part, to have occurred immediately after the end of the year;where the year is after 1990, each provisional PSPA of the individual that is associated with the past service event as a consequence of which the past service benefits became provided shall be determined as if the past service event had occurred immediately after the end of the year;where information that is required for the computation of a provisional PSPA referred to in paragraph (c) is not determinable until after the time the provisional PSPA is computed, reasonable assumptions shall be made in respect of such information; andsubsection 147.1(10) of the Act shall apply in respect of the past service benefits to the extent that that subsection would apply if the past service event had occurred immediately after the end of the year.ExceptionsSubsection (3) does not apply wherethe past service benefits become provided in circumstances where subsection (1) or (2) is applicable; orthe period in respect of which the past service benefits are provided was not, at any time before the past service event,pensionable service of the individual under a defined benefit provision of a registered pension plan, ora period in respect of which a contribution was made on behalf of, or an amount (other than an amount in respect of earnings of a plan) was allocated to, the individual under a money purchase provision of a registered pension plan or under a deferred profit sharing plan.[Repealed, SOR/99-9, s. 7]Modified PSPA CalculationSubject to subsection (10), iflifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan in respect of one or more qualifying past service periods in relation to the individual and the past service event, andthe benefits are considered to be attributable to employment of the individual with a single employer,the provisional PSPA of the individual with respect to the employer that is associated with the past service event is the amount determined by the formulaA + B + C - DwhereAis the provisional PSPA that would be determined ifthis subsection did not apply,all former benefits in relation to the individual and the past service event had ceased to be provided at the time the past service event occurred,all former benefits in relation to the individual and the past service event were considered to be attributable to employment of the individual with the employer, andthe value of C in subsection 8303(3) were nil;Bis the total of all amounts each of which is a non-vested PA amount in respect of the individual and the past service event;Cis the total of all amounts each of which is a money purchase transfer in relation to the individual and the past service event; andDis the amount of the individual’s qualifying transfers made in connection with the past service event.Definitions for Subsection (5)For the purpose of subsection (5), wherelifetime retirement benefits (in this subsection referred to as “past service benefits”) have, as a consequence of a past service event occurring at a particular time, become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period thatimmediately before the particular time, was not pensionable service of the individual under the provision, andis, or was, pensionable service of the individual under another defined benefit provision (in this subsection referred to as the “former provision”) of a registered pension plan,eitherthe individual has not, at any time after 1996 and before the particular time, been a member in relation to the former provision,the individual ceased, at the particular time, to be a member in relation to the former provision,the past service event is a certifiable past service event and the individual is to cease being a member in relation to the former provision no later than 90 days after the day on which a certification of the Minister is issued for the purposes of subsection 147.1(10) of the Act in respect of the past service benefits, orthe following conditions apply:the individual has not ceased, at the particular time, to be a member in relation to the former provision, andsubparagraph 8503(3)(a)(v.1) applies to the period described in paragraph (a), andlifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period have not been taken into account under subsection (5) as former benefits in determining a provisional PSPA of the individual that is associated with any other past service event,the following rules apply:the period is a qualifying past service period in relation to the individual and the past service event,lifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period are former benefits in relation to the individual and the past service event,where subsection 8301(8) has applied in respect of the determination of a pension credit of the individual under the former provision with respect to an employer for a year that includes any part of the period, the amount determined by the formulaA - Bis a non-vested PA amount in respect of the individual and the past service event, whereAis the amount that would have been the individual’s pension credit under the former provision for the year with respect to the employer if subsection 8301(8) had not applied, andBis the individual’s pension credit under the former provision for the year with respect to the employer, andthe amount determined by the formulaA - Bis a money purchase transfer in relation to the individual and the past service event, whereAis the total of all amounts each of which isan amount that was transferred, at or before the particular time, on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a defined benefit provision of a registered pension plan that was, at the time of the transfer, a specified multi-employer plan, oran amount that is to be paid or otherwise made available under the former provision with respect to the individual after the particular time, other thanan amount that is to be transferred to fund the past service benefits or paid directly to the individual, orthe balance of property described in clause 8503(3)(a)(v.1)(B) that is required to be transferred after the particular time to fund the past service benefits,to the extent that the amount can reasonably be considered to be attributable to benefits in respect of the portion of the period that is after 1989, andBis the total of all amounts each of which is, in respect of an employer with respect to which a provisional PSPA of the individual that is associated with the past service event is determined under subsection (5), the amount, if any, by whichthe portion of the value determined for B in subsection 8303(3), for the purpose of determining the individual’s provisional PSPA with respect to the employer, that can reasonably be considered to be attributable to benefits provided in respect of the periodexceedsthe portion of the value determined for A in subsection 8303(3), for the purpose of determining the individual’s provisional PSPA with respect to the employer, that can reasonably be considered to be attributable to benefits provided in respect of the period.Reinstatement of Pre-1997 BenefitsWhere lifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period thatwas previously pensionable service of the individual under the provision,ceased to be pensionable service of the individual under the provision as a consequence of the individual ceasing before 1997 to be a member in relation to the provision, andhas not, at any time after 1996 and before the past service event, been pensionable service of the individual under a defined benefit provision of a registered pension plan,each provisional PSPA of the individual that is associated with the past service event shall be determined as if all benefits provided to the individual under the provision before 1997 in respect of the period had been provided to the individual under another defined benefit provision of a registered pension plan in relation to which the individual has not, at any time after 1996, been a member.Two or More EmployersWherelifetime retirement benefits (in this subsection referred to as “past service benefits”) provided to an individual under a defined benefit provision of a registered pension plan as a consequence of a past service event are attributable to employment of the individual with two or more employers (each of which is, in this subsection, referred to as a “current employer”), andsubsection (5) would, but for paragraph (5)(b), apply in respect of the determination of each provisional PSPA of the individual that is associated with the past service event,each such provisional PSPA shall be determined in accordance with the formula set out in subsection (5), except thatin determining the amount A,the former benefits of the individual shall be considered to be attributable to employment of the individual with the individual’s current employers, andthe portion of the former benefits attributable to employment with each current employer shall be determined by the administrator of the pension plan under which the past service benefits are provided in a manner that is consistent with the association of the past service benefits with each current employer,the amounts B and C shall be included in computing only one provisional PSPA of the individual, as determined by the administrator of the pension plan under which the past service benefits are provided, andthe amount D that is deducted in computing the individual’s provisional PSPA with respect to a particular employer shall equal such portion of the individual’s qualifying transfers made in connection with the past service event as is not deducted in computing the provisional PSPA of the individual with respect to any other employer.[Repealed, SOR/99-9, s. 7]Specified Multi-employer PlansExcept in subparagraph (4)(b)(i), a reference in this section to a defined benefit provision of a registered pension plan at any time does not, unless expressly provided, include a defined benefit provision of a plan that is, at that time, a specified multi-employer plan.Individual Pension PlansIf there is a past service event in relation to a defined benefit provision under an individual pension plan, the provisional PSPA of an individual with respect to an employer that is associated with the past service event is the amount, if any, determined by the formulaA – BwhereAis the greater ofthe provisional PSPA that would be determined ifthis subsection did not apply,the value of C in subsection 8303(3) were nil, andthe value of D in subsection 8304(5) were nil, andthe lesser ofthe total ofthe proportion of the fair market value of all property held in connection with the individual’s designated savings arrangements at the time of the past service event, thatthe total of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the individual under the provisionis ofthe lesser of 35 and the number of years by which the individual’s age in whole years at the time of the past service event exceeds 18, andthe individual’s unused RRSP deduction room at the end of the year immediately preceding the calendar year that includes the past service event, andthe actuarial liabilities of the retirement benefits associated with the past service event, determined on the basis of the funding assumptions specified under subsections 8515(6) and (7), at the same effective date as the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act that is not earlier than the calendar year of the past service event; andBis the amount of the individual’s qualifying transfers made in connection with the past service event.Subsection (10) does not apply to a past service event in relation to an individual pension plan if the provisional PSPA of the member determined under subsections 8303(3) and 8304(5) would be nil if no qualifying transfers were made in connection with the past service event, unless it is a past service event that results from the establishment of the plan or from an amendment to the plan to provide additional retirement benefits.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 5; SOR/99-9, s. 7; SOR/2001-67, s. 3; 2011, c. 24, s. 92SOR/2024-231, s. 23
Pension Adjustment ReversalTotal Pension Adjustment Reversal
For the purpose of subsection 248(1) of the Act, an individual’s total pension adjustment reversal for a calendar year is the total of all amounts each of which isthe pension adjustment reversal (in this Part and Part LXXXIV referred to as “PAR”) determined in connection with the individual’s termination in the year from a deferred profit sharing plan or from a benefit provision of a registered pension plan; orthe pension adjustment correction determined in respect of the individual for the year under subsection (16).Termination in 1997For the purposes of subsection (1) and the description of R in paragraph 8307(2)(b), where an individual terminates in 1997 from a deferred profit sharing plan or from a benefit provision of a registered pension plan, the termination is deemed to have occurred in 1998.PAR — Deferred Profit Sharing PlanFor the purposes of this Part and Part LXXXIV and subject to subsection (12), an individual’s PAR determined in connection with the individual’s termination from a deferred profit sharing plan isif the conditions in subsection (13) are satisfied with respect to the termination, the total of all amounts each of which is an amountincluded in determining a pension credit of the individual under the plan, andto which the individual has ceased, at or before the time of the termination, to have any rights,but does not include any amount to which a spouse or common-law partner or former spouse or common-law partner of the individual has acquired rights as a consequence of a breakdown of their marriage or common-law partnership; andin any other case, nil.PAR — Money Purchase ProvisionFor the purposes of this Part and Part LXXXIV and subject to subsection (12), an individual’s PAR determined in connection with the individual’s termination from a money purchase provision of a registered pension plan isif the conditions in subsection (14) are satisfied with respect to the termination, the total of all amounts each of which is an amountincluded in determining a pension credit of the individual under the provision, andto which the individual has ceased, at or before the time of the termination, to have any rights,but does not include any amount to which a spouse or common-law partner or former spouse or common-law partner of the individual has acquired rights as a consequence of a breakdown of their marriage or common-law partnership; andin any other case, nil.PAR — Defined Benefit ProvisionFor the purposes of this Part and Part LXXXIV and subject to subsections (6) and (12), an individual’s PAR determined in connection with the individual’s termination from a defined benefit provision of a registered pension plan iswhere the conditions in subsection (14) are satisfied with respect to the termination, the amount determined by the formulaA + B - C - DwhereAis the total of all amounts each of which is, in respect of a particular year that is the year in which the termination occurs or that is a preceding year, the lesser ofthe total of all amounts each of which is the pension credit of the individual under the provision for the particular year with respect to an employer, andthe RRSP dollar limit for the year following the particular year,Bis the total of all amounts each of which is the portion of the grossed-up amount of a provisional PSPA (other than a provisional PSPA determined in accordance with subsection 8303(8)) of the individual that is associated with a past service event occurring before the time of the termination that can reasonably be considered to be attributable to benefits provided under the provision,Cis the total of all amounts each of which is a specified distribution made in respect of the individual and the provision at or before the time of the termination, andDis the total of all amounts each of which is a PA transfer amount in relation to the individual’s termination from the provision; andin any other case, nil.Defined Benefit Pension CreditsFor the purpose of subparagraph (i) of the description of A in paragraph (5)(a), in determining an individual’s PAR in connection with the individual’s termination from a defined benefit provision of a registered pension plan,the individual’s pension credits under the provision for the year in which the termination occurs shall be determined without regard to benefits provided after the time of the termination; andthe individual’s pension credits under the provision for each year in which the plan was a specified multi-employer plan are deemed to be nil.Grossed-up PSPA AmountFor the purposes of the descriptions of B in subsection 8303(7.1) and paragraph (5)(a), the grossed-up amount of an individual’s provisional PSPA with respect to an employer that is associated with a past service event is the amount that would be the provisional PSPA ifthe values of C and D in subsections 8303(3) and 8304(5) were nil; andthe words “at the time the past service event occurred” in paragraph (b) of the description of A in subsection 8304(5) were read as “immediately before the time the past service event occurred”.Specified DistributionFor the purpose of the description of C in paragraph (5)(a), an amount paid under a defined benefit provision of a registered pension plan with respect to an individual is a specified distribution made in respect of the individual and the provision at the time it is paid, except to the extent thatit can reasonably be considered to be a payment of benefits in respect of any period before 1990;it is transferred to another registered pension plan (other than a plan that is, at the time of the transfer, a specified multi-employer plan) in accordance with subsection 147.3(3) of the Act;it is transferred to another defined benefit provision of the plan where the transfer would, if the provision and the other provision were in separate registered pension plans, constitute a transfer in accordance with subsection 147.3(3) of the Act;it is a payment in respect of an actuarial surplus;it isa return of contributions made by the individual under the provision, where the contributions are returned pursuant to an amendment to the plan that also reduces the future contributions that would otherwise be required to be made under the provision by members of the plan and that does not reduce benefits provided under the provision, ora payment of interest in respect of contributions that are returned as described in subparagraph (i);it can reasonably be considered to be a payment of benefits provided in respect of a period throughout which the plan was a specified multi-employer plan; orit can reasonably be considered to be a payment of benefits provided in respect of a period throughout which the individual was employed outside Canada, where the benefits became provided as a consequence of a past service event in respect of which the Minister had consented to the application of subsection 8303(10) for the purpose of determining the individual’s provisional PSPAs.Property Made AvailableWhere property held in connection with a particular defined benefit provision of a pension plan is made available at any time to provide benefits with respect to an individual under another benefit provision of a pension plan, subsection (8) applies as if the amount of the property had been paid under the particular provision at that time with respect to the individual.PA Transfer AmountWherean individual has terminated, at a particular time after 1996, from a defined benefit provision (in this subsection referred to as the “former provision”) of a registered pension plan,lifetime retirement benefits (in this subsection referred to as the “past service benefits”) have, as a consequence of a past service event occurring at or before the particular time, become provided to the individual under another defined benefit provision of a registered pension plan in respect of a period that is or was pensionable service of the individual under the former provision, andlifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period have, under subsection 8304(5), been taken into account as former benefits in determining a provisional PSPA of the individual that is associated with the past service event,for the purposes of subsection 8406(5) and the description of D in paragraph (5)(a), the lesser ofthe portion of the value determined for A in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the past service benefits, andthe portion of the value determined for B in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the former benefitsis a PA transfer amount in relation to the individual’s termination from the former provision.Special 1997 PA Transfer AmountWherean individual has terminated, at a particular time in 1997, from a particular defined benefit provision of a registered pension plan,lifetime retirement benefits (in this subsection referred to as the “past service benefits”) have, as a consequence of a past service event that occurred after the particular time and before 1998, become provided to the individual under the particular provision, or under another defined benefit provision of a registered pension plan, in respect of a period that was previously pensionable service of the individual under the particular provision, andlifetime retirement benefits to which the individual was previously entitled under the particular provision in respect of the period have, under subsection 8304(5), been taken into account as former benefits in determining a provisional PSPA of the individual that is associated with the past service event,for the purposes of subsection 8406(5) and the description of D in paragraph (5)(a), the lesser ofthe portion of the value determined for A in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the past service benefits, andthe portion of the value determined for B in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the former benefitsis a PA transfer amount in relation to the individual’s termination from the particular provision at the particular time.Subsequent MembershipWhere an individual has ceased at a particular time to be a member in relation to a deferred profit sharing plan or a benefit provision of a registered pension plan and subsequently becomes a member in relation to the plan or the provision, as the case may be, the following rules apply in determining the individual’s PAR in connection with any subsequent termination from the plan or the provision, as the case may be:in the case of a deferred profit sharing plan or money purchase provision, any amounts included in a pension credit of the individual under the plan or provision because of an allocation to the individual before the particular time shall be disregarded; andin the case of a defined benefit provision,the value of A in paragraph (5)(a) shall be determined without regard to any pension credit, or portion of a pension credit, that is attributable to benefits provided under the provision before the particular time,the value of B in paragraph (5)(a) shall be determined without regard to any provisional PSPA that is associated with a past service event that occurred before the particular time, andthe value of C in paragraph (5)(a) shall be determined without regard to any specified distribution (as defined in subsection (8)) made at or before the particular time.Termination Conditions — Deferred Profit Sharing PlanFor the purpose of paragraph (3)(a), the conditions with respect to an individual’s termination from a deferred profit sharing plan are the following:the termination occurs after 1996 and otherwise than because of death; andno payments described in subparagraph 147(2)(k)(v) of the Act have been made out of or under the plan with respect to the individual.Termination Conditions — Registered Pension PlanFor the purposes of paragraphs (4)(a) and (5)(a), the conditions with respect to an individual’s termination from a benefit provision of a registered pension plan are the following:the termination occurs after 1996 and otherwise than because of death; andno retirement benefits have been paid under the provision with respect to the individual (other than retirement benefits paid with respect to the individual’s spouse or common-law partner or former spouse or common-law partner as a consequence of a breakdown of their marriage or common-law partnership).Breakdown of Marriage or Common-law Partnership[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-188, s. 7Wherebefore a member terminates from a defined benefit provision of a registered pension plan, there has been a breakdown of the member’s marriage or common-law partnership, andas a consequence of the breakdown,the member has ceased to have rights to all or a portion of the benefits provided under the provision with respect to the member, andan individual who is the member’s spouse or common-law partner or former spouse or common-law partner has acquired rights under the provision in respect of those benefits,for the purpose of subsection (8),any amount paid under the provision with respect to the rights acquired by the individual (other than a single amount paid under the provision at or before the time of the member’s termination in full satisfaction of the rights acquired by the individual) is deemed not to have been paid with respect to the member, andunless a single amount has been paid under the provision at or before the time of the member’s termination in full satisfaction of the rights acquired by the individual, a single amount equal to the present value (at the time the member terminates from the provision) of the benefits to which the member has ceased to have rights as a consequence of the breakdown is deemed to have been paid to the member at that time under the provision in full satisfaction of those benefits.Pension Adjustment CorrectionIf a distribution described in subparagraph 8502(d)(iii) or subsection 147.1(19) of the Act is made in a calendar year in respect of an individual under a money purchase provision, the individual’s pension adjustment correction for the year is the total of all amounts each of which is an amount, in respect of one or more of the 10 years immediately preceding the calendar year (each such year referred to in this subsection as a “retroactive year”), determined by the formulaA − B − CwhereAis the total of all amounts each of which was included in determining the individual’s pension credit with respect to an employer for the retroactive year under the provision;Bis the total amount that ought to have been contributed to the provision under the terms of the plan as registered with respect to the individual for the retroactive year; andCis the amount, if any, by which the total of all amounts each of which is the individual’s pension adjustment for the retroactive year in respect of a participating employer exceeds the lesser of the money purchase limit for the retroactive year and 18% of the individual’s compensation (as defined in subsection 147.1(1) of the Act) from participating employers for the retroactive year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-9, s. 8; SOR/2001-188, ss. 7, 13, 152023, c. 26, s. 106
Association of Benefits with Employers
Where, for the purposes of this Part, it is necessary to determine the portion of an amount of benefits provided with respect to a member of a registered pension plan under a defined benefit provision of the plan that is attributable to the member’s employment with a particular employer, the following rules apply, subject to subsection 8308(7):the determination shall be made by the plan administrator;benefits provided as a consequence of services rendered by the member to an employer who participates in the plan shall be regarded as attributable to employment with that employer, whether the benefits become provided at the time the services are rendered or at a subsequent time; andthe determination shall be made in a manner thatis reasonable in the circumstances,is not inconsistent with such determinations made previously, andresults in the full amount of benefits being attributed to employment with one or more employers who participate in the plan.Where the administrator of a registered pension plan does not comply with the requirements of subsection (1) in connection with the determination of an amount under this Part at any time,the plan becomes, at that time, a revocable plan; andthe Minister shall make any determinations referred to in subsection (1) that the administrator fails to make, or fails to make in accordance with that subsection.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Exemption from Certification
For the purposes of subsection 147.1(10) of the Act as it applies in respect of a past service event and the benefits provided under a defined benefit provision of a registered pension plan with respect to a particular member of the plan, a certification of the Minister is not required whereeach provisional PSPA of the member that is associated with the past service event is nil;the conditions in subsection (2) or (3) are satisfied;the conditions in subsection (2) or (3) are substantially satisfied and the Minister waives in writing the requirement for certification;paragraph 8303(5)(f.1) was applicable in determining the provisional PSPA of the member that is associated with the past service event; orthe past service event is deemed by paragraph 8304(3)(b) to have occurred immediately after the end of 1990.The following are conditions for the purposes of paragraphs (1)(b) and (c) and 8303(5)(g):there are more than 9 active members under the provision;no more than 25 per cent of the active members under the provision are specified active members under the provision;for all or substantially all of the active members under the provision, the amount of lifetime retirement benefits accrued under the provision has increased as a consequence of the past service event;where there is a specified active member under the provision,the amounts C and D in subparagraph (ii) are greater than nil, andthe amount determined by the formula A/C does not exceed the amount determined by the formula B/D whereAis the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately after the past service event, to a specified active member under the provision,Bis the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately after the past service event, to an active member (other than a specified active member) under the provision,Cis the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately before the past service event, to a specified active member under the provision, andDis the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately before the past service event, to an active member (other than a specified active member) under the provision; andthe benefits provided under the provision as a consequence of the past service event to members of the plan who are not active members under the provision are not more advantageous than such benefits provided to active members under the provision.The following are conditions for the purposes of paragraphs (1)(b) and (c):the past service event consists of the establishment of the provision;there are more than 9 active members under the provision;no more than 25 per cent of the active members under the provision are specified active members under the provision;the member is not a specified active member under the provision;if the member is not an active member under the provision, for each of the 5 years immediately preceding the calendar year in which the past service event occurs,the member was not connected at any time in the year with an employer who participates in the plan, andthe aggregate of all amounts each of which is the remuneration of the member for the year from an employer who participates in the plan did not exceed 2 1/2 times the Year’s Maximum Pensionable Earnings for the year; andthe aggregate of all amounts each of which is a provisional PSPA of the member that is associated with the past service event does not exceed 7/2 of the money purchase limit for the year in which the past service event occurs.For the purposes of this section as it applies in respect of a past service event,a member of a pension plan is an active member under a defined benefit provision of the plan iflifetime retirement benefits accrue under the provision to the member in respect of a period that immediately follows the time the past service event occurs, orthe member is entitled, immediately after the time the past service event occurs, to lifetime retirement benefits under the provision in respect of a period before that time and it is reasonable to expect, at that time, that lifetime retirement benefits will accrue under the provision to the member in respect of a period after that time; andan active member under a defined benefit provision of a pension plan is a specified active member under the provision ifthe member is connected, at the time of the past service event, with an employer who participates in the plan, orit is reasonable to expect, at the time of the past service event, that the aggregate of all amounts each of which is the remuneration of the member for the calendar year in which the past service event occurs from an employer who participates in the plan will exceed 2 1/2 times the Year’s Maximum Pensionable Earnings for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/2005-264, s. 19
Certification in Respect of Past Service EventsApplication for Certification
Application for a certification of the Minister for the purposes of subsection 147.1(10) of the Act shall be made in prescribed form by the administrator of the registered pension plan to which the certification relates.Prescribed ConditionFor the purposes of subsection 147.1(10) of the Act in respect of a past service event and benefits with respect to a particular member of a registered pension plan, the prescribed condition is that, at the particular time the Minister issues the certification,the aggregate of all amounts each of which is the member’s provisional PSPA with respect to an employer that is associated with the past service eventdoes not exceedthe amount determined by the formula$8,000 + A + B + C - D + RwhereAis the member’s unused RRSP deduction room at the end of the year immediately preceding the calendar year (in this paragraph referred to as the “particular year”) that includes the particular time,Bis the amount of the member’s qualifying withdrawals made for the purposes of the certification, determined as of the particular time,Cis the amount of the member’s PSPA withdrawals for the particular year, determined as of the particular time,Dis the aggregate of all amounts each of which is the accumulated PSPA of the member for the particular year with respect to an employer, determined as of the particular time, andRis the total of all amounts each of which is a PAR determined in connection with the individual’s termination in the particular year from a deferred profit sharing plan, or from a benefit provision of a registered pension plan, and in respect of which an information return has been filed under section 8402.01 with the Minister before the particular time.Qualifying WithdrawalsFor the purposes of paragraph (5)(a) and the description of B in paragraph (2)(b), the amount of an individual’s qualifying withdrawals made for the purposes of a certification in respect of a past service event, determined as of a particular time, is the lesser ofthe aggregate of all amounts each of which is such portion of an amount withdrawn by the individual from a registered retirement savings plan under which the individual was the annuitant (within the meaning assigned by subsection 146(1) of the Act) at the time of the withdrawal asis eligible, pursuant to subsection (4), to be designated for the purposes of the certification, andis designated by the individual for the purposes of the certification by filing a prescribed form containing prescribed information with the Minister before the particular time, andthe amount, if any, by whichthe aggregate of all amounts each of which is the provisional PSPA of the individual with respect to an employer that is associated with the past service eventexceedsthe amount, positive or negative, determined by the formulaA + C - D + Rwhere A, C, D and R have the same values as they have at the particular time for the purposes of the formula in paragraph (2)(b).Eligibility of Withdrawn Amount for DesignationAn amount withdrawn by an individual from a registered retirement savings plan is eligible to be designated for the purposes of a certification, except to the extent that the following rules provide otherwise:the amount is not eligible to be designated if the amount waswithdrawn from a registered retirement savings plan in a calendar year other than the year in which the designation would be filed with the Minister or either of the 2 immediately preceding calendar years, orwithdrawn in circumstances that entitle the individual to a deduction under paragraph 60(l) of the Act; andthe amount is not eligible to be designated to the extent the amount wasdesignated by the individual for the purposes of any other certification, ordeducted under section 60.2 or subsection 146(8.2) or 147.3(13.1) of the Act in computing the individual’s income for any taxation year.PSPA WithdrawalsFor the purposes of the description of C in paragraph (2)(b) and the description of G in the definition net past service pension adjustment in subsection 146(1) of the Act, the amount of an individual’s PSPA withdrawals for a calendar year, determined as of a particular time, isif the Minister has issued, in the year and before the particular time, a certification for the purposes of subsection 147.1(10) of the Act with respect to the individual, the aggregate of all amounts each of which is the amount of the individual’s qualifying withdrawals made for the purposes of a certification that the Minister has issued in the year and before the particular time; andin any other case, nil.Prescribed WithdrawalFor the purposes of subsection (7) and subsections 146(8.2) and 147.3(13.1) of the Act, a prescribed withdrawal is the portion of an amount withdrawn by an individual from a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1) of the Act) that is designated in accordance with subparagraph (3)(a)(ii) for the purposes of a certification in respect of the individual.Prescribed PremiumFor the purpose of subsection 146(6.1) of the Act, a premium paid by a taxpayer under a registered retirement savings plan under which the taxpayer is the annuitant (within the meaning assigned by subsection 146(1) of the Act) at the time the premium is paid is a prescribed premium for a particular taxation year of the taxpayer where the following conditions are satisfied:the taxpayer withdrew an amount (in this subsection referred to as the “withdrawn amount”) in the particular year from a registered retirement savings plan for the purposes of a certification in respect of a past service event;all or part of the withdrawn amount is a prescribed withdrawal pursuant to subsection (6);it is subsequently determined thatas a consequence of reasonable error, the taxpayer withdrew a greater amount than necessary for the purposes of the certification, oras a consequence of the application of paragraph 147.1(3)(b) of the Act, it was not necessary for the taxpayer to withdraw any amount;the premium is paid by the taxpayer in the 12-month period immediately following the time the determination referred to in paragraph (c) is made;if the individual subsequently pays all or a part of the contribution to the plan pursuant to the commitment, the amount paid to the plan is, for the purposes of paragraphs 8301(4)(a) and (8)(e), a contribution described in this paragraph,the taxpayer files with the Minister, on or before the day on or before which the taxpayer is required (or would be required if tax under Part I of the Act were payable by the taxpayer for the taxation year in which the taxpayer pays the premium) by section 150 of the Act to file a return of income for the taxation year in which the taxpayer pays the premium, a written notice in which the taxpayer designates the premium as a recontribution of all or a portion of the withdrawn amount; andif an employer subsequently pays to the plan all or a part of a contribution in respect of which paragraph (f) applies, the amount paid to the plan is, for the purposes of paragraph 8301(4)(a), a contribution described in this paragraph.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/99-9, s. 9; SOR/2001-67, s. 4
Special RulesBenefits Provided Before Registration
For the purposes of this Part and subsection 147.1(10) of the Act, benefits that became provided under a defined benefit provision of a pension plan before the day as of which the plan becomes a registered pension plan shall be deemed to have become provided as a consequence of an event occurring on that day and not to have been provided before that day.Prescribed Amount for Connected PersonsWhereat any particular time in a calendar year after 1990,an individual becomes a member of a registered pension plan, orlifetime retirement benefits commence to accrue to the individual under a defined benefit provision of a registered pension plan following a period in which lifetime retirement benefits did not accrue to the individual,the individual is connected at the particular time, or was connected at any time after 1989, with an employer who participates in the plan for the benefit of the individual,the individual did not have a pension adjustment for 1990 that was greater than nil, andthis subsection did not apply before the particular time to prescribe an amount with respect to the individual,an amount equal to the lesser of $11,500 and 18% of the individual’s earned income (as defined in subsection 146(1) of the Act) for 1990 is prescribed with respect to the individual for the calendar year that includes the particular time for the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act.Remuneration for Prior YearsWhere an individual who is entitled to benefits under a defined benefit provision of a registered pension plan receives remuneration at a particular time in a particular calendar year no part of which is pensionable service of the individual under the provision and the remuneration is treated for the purpose of determining benefits under the provision as if it were remuneration received in one or more calendar years preceding the particular calendar year for services rendered in those preceding years, the following rules apply:such portion of the remuneration as is treated under the provision as if it were remuneration received in a preceding calendar year for services rendered in that preceding year shall be deemed, for the purpose of determining, as of the particular time and any subsequent time, a redetermined benefit entitlement of the individual under the provision, to have been received in that preceding year for services rendered in that preceding year; andthe pension credit of the individual for the particular year under the provision with respect to an employer is the aggregate ofthe amount that would otherwise be the individual’s pension credit for the particular year, andthe amount that would, if the payment of the remuneration were a past service event, be the provisional PSPA (or a reasonable estimate thereof determined in a manner acceptable to the Minister) of the individual with respect to the employer that is associated with the payment of the remuneration.Period of Reduced Services — Retroactive BenefitsWhere,as a consequence of a past service event, retirement benefits (in this subsection referred to as “retroactive benefits”) become provided under a defined benefit provision of a registered pension plan (other than a plan that is a specified multi-employer plan) to an individual in respect of a period of reduced services of the individual,the period of reduced services was not, before the past service event, pensionable service of the individual under the provision, andthe past service event occurs on or before April 30 of the year immediately following the calendar year in which ends the complete period of reduced services of the individual that includes the period of reduced services,the following rules apply:each pension adjustment of the individual with respect to an employer for a year before the calendar year in which the past service event occurs shall be deemed to be, and to always have been, the aggregate ofthe amount that would otherwise be the individual’s pension adjustment with respect to the employer for the year, andsuch portion of the provisional PSPA of the individual with respect to the employer that is associated with the past service event as may reasonably be considered to be attributable to the provision of retroactive benefits in respect of the year, andeach provisional PSPA of the individual with respect to an employer that is associated with the past service event shall be deemed (except for the purposes of this subsection) to be such portion of the amount that would otherwise be the individual’s provisional PSPA as may reasonably be considered not to be attributable to the provision of retroactive benefits.COVID-19 — Retroactive BenefitsParagraph (4)(c), in its application to a complete period of reduced services that ended in 2019, is to be read as follows:the past service event occurs on or before June 1, 2020 or such later date as is acceptable to the Minister,Period of Reduced Services — Retroactive ContributionsWherea contribution (in this subsection referred to as a “retroactive contribution”) is made by an individual, or by an employer with respect to the individual, under a money purchase provision of a registered pension plan in respect of a period in a particular calendar year that is a period of reduced services of the individual, andthe retroactive contribution is made after the particular year and on or before April 30 of the year immediately following the calendar year in which ends the complete period of reduced services of the individual that includes the period of reduced services,the following rules apply:each pension adjustment of the individual for the particular year with respect to an employer shall be deemed to be, and to always have been, the amount that it would have been had the retroactive contribution been made at the end of the particular year, andthe retroactive contribution shall be deemed, for the purpose of determining pension adjustments of the individual for any year after the particular year, to have been made at the end of the particular year and not to have been made at any subsequent time.COVID-19 — Retroactive ContributionsParagraph (5)(b), in its application to a complete period of reduced services that ended in 2019, is to be read as follows:the retroactive contribution is made after 2019 and on or before June 1, 2020 or such later date as is acceptable to the Minister,Conditions — Retroactive ContributionsSubsection (5.3) applies in respect of a contribution made with respect to an individual under a money purchase provision of a registered pension plan (in this subsection and in subsection (5.3) referred to as a “retroactive contribution”), ifin the case of a contribution payable by an individual,the individual makes the retroactive contribution after 2020 and on or before April 30, 2022, orthe individual makes a written commitment, on or before April 30, 2022, to the plan administrator, or to a participating employer of the plan, to make the retroactive contribution;in the case of a contribution payable by a participating employer,the employer makes the retroactive contribution after 2020 and on or before April 30, 2022, orit is conditional on the individual making the retroactive contribution that the individual has committed to pay under subparagraph (a)(ii); andthe retroactive contribution replaces, in whole or in part, a contribution that would have been required to be made to the plan in the calendar year 2020 or 2021 but for an amendment made to the plan under sections 8511 and 8512 that reduced the contributions required to be made.COVID-19 — Retroactive ContributionsIf this subsection applies in respect of a retroactive contribution,each pension adjustment of the individual for the 2020 or 2021 calendar year with respect to an employer is deemed to be, and to always have been, the amount that it would have been had the retroactive contribution been made at the end of 2020 or 2021, as the case may be; andthe retroactive contribution is deemed, for the purpose of determining pension adjustments of the individual for any calendar year after the year referred to in paragraph (5.2)(c), to have been made at the end of that year and not to have been made at any subsequent time.Conditions – Permitted Corrective ContributionIf the individual makes a written commitment to the administrator of the plan or to an employer who participates in the plan to make a permitted corrective contribution in accordance with subsection 147.1(20) of the Act in installments, amounts payable by the individual or the employer in respect of the contribution are deemed for the purposes of subsection 8402(4) and the definition net past service pension adjustment in subsection 146(1) of the Act to have been made at the time when the written commitment was made.Commitment to Make Retroactive ContributionsWherean individual enters into a written commitment to make a contribution under a money purchase provision of a registered pension plan,the commitment is made to the administrator of the plan or to an employer who participates in the plan, andthe rules in subsection (5) would apply in respect of the contribution if the contribution were made at the time at which the individual enters into the commitment,the following rules apply for the purposes of this Part:the individual shall be deemed to have made the contribution to the plan at the time the individual enters into the commitment,if the individual subsequently pays all or a part of the contribution to the plan pursuant to the commitment, the amount paid to the plan is, for the purposes of paragraphs 8301(4)(a) and (8)(e), a contribution described in this paragraph,any contribution that an employer is required to make under the money purchase provision conditional on the individual making the contribution that the individual has committed to pay and in respect of which subsection (5) would apply if the contribution were made by the employer at the time the individual enters into the commitment shall be deemed to have been made by the employer at that time, andif an employer subsequently pays to the plan all or a part of a contribution in respect of which paragraph (f) applies, the amount paid to the plan is, for the purposes of paragraph 8301(4)(a), a contribution described in this paragraph.Loaned EmployeesWhere, pursuant to an arrangement between an employer (in this subsection referred to as the “lending employer”) who is a participating employer in relation to a pension plan and an employer (in this subsection referred to as the “borrowing employer”) who, but for this subsection, would not be a participating employer in relation to the plan,an employee of the lending employer renders services to the borrowing employer for which the employee receives remuneration from the borrowing employer, andwhile the employee renders services to the borrowing employer, benefits continue to accrue under a defined benefit provision of the plan to the employee, or the lending employer continues to make contributions under a money purchase provision of the plan with respect to the employee,the following rules apply:for the purpose of the definition participating employer in subsection 147.1(1) of the Act as it applies in respect of the plan, the borrowing employer is a prescribed employer,the determination, for the purposes of this Part, of the portion of the employee’s benefit accrual under a defined benefit provision of the plan in respect of a year that can reasonably be considered to be attributable to the employee’s employment with each of the lending and borrowing employers shall be made with regard to the remuneration received by the employee for the year from each employer, andsuch portion of the contributions made under a money purchase provision of the plan by the lending employer as may reasonably be considered to be in respect of the employee’s remuneration from the borrowing employer shall be deemed, for the purposes of this Part, to be contributions made by the borrowing employer.Successor PlansNotwithstanding any other provisions of this Part, other than section 8310, whereall benefits with respect to an individual under a defined benefit provision (in this subsection referred to as the “former provision”) of a registered pension plan are replaced in a calendar year by identical benefits under a defined benefit provision of another registered pension plan,the replacement of benefits is consequent on a transfer of the individual’s employment from one employer (in this subsection referred to as the “former employer”) to another employer (in this subsection referred to as the “successor employer”), andthe Minister consents in writing to the application of this subsection in respect of that replacement of benefits,the individual’s pension adjustments for the year with respect to the former employer and the successor employer shall be the amounts that they would be if all benefits with respect to the individual under the former provision had been attributable to employment with the successor employer and not to employment with the former employer.Special Downsizing BenefitsWherelifetime retirement benefits that do not comply with the condition in paragraph 8503(3)(a) are provided to an individual under a defined benefit provision of a registered pension plan, andthe benefits are permissible only by reason of subsection 8505(3),each pension credit of the individual under the provision and each provisional PSPA of the individual shall be determined without regard to the lifetime retirement benefits.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 6; SOR/2007-116, s. 13SOR/2021-127, s. 22023, c. 26, s. 107
Foreign PlansDefinition
In this section, foreign plan means a plan or arrangement (determined without regard to subsection 207.6(5) of the Act) that would, but for paragraph (l) of the definition retirement compensation arrangement in subsection 248(1) of the Act, be a retirement compensation arrangement.Pension CreditSubject to subsections (3) to (4.1), the pension credit of an individual for a calendar year with respect to an employer under a foreign plan iswhere paragraph (b) does not apply, nil; andwherethe year is 1992 or a subsequent year,the individual became entitled in the year, either absolutely or contingently, to benefits under the foreign plan in respect of services rendered to the employer in a period throughout which the individual was resident in Canada and rendered services to the employer that were primarily services rendered in Canada or services rendered in connection with a business carried on by the employer in Canada, or a combination of those services,the individual continued to be entitled at the end of the year, either absolutely or contingently, to all or part of the benefits, andeitherno contribution was made under the foreign plan in the year in respect of the individual, except whereno contribution was made because the foreign plan had an actuarial surplus, andhad a contribution been made in respect of the benefits referred to in subparagraph (ii), it would have been a resident’s contribution (as defined in subsection 207.6(5.1) of the Act), ora contribution that is not a resident’s contribution was made under the foreign plan in the year in respect of the individual,the lesser ofthe amount, if any, by which 18% of the individual’s resident compensation from the employer for the year exceeds the PA offset for the year, andthe amount by which the money purchase limit for the year exceeds the PA offset for the year.Pension Credit — Tax TreatyFor the purposes of applying subsection (2) in determining an individual’s pension credit for a calendar year with respect to an employer under a foreign plan, if any contributions made to, or benefits accruing under, the plan in respect of the individual and the calendar year benefit from the application of paragraph 8 of Article XVIII of the Canada-United States Tax Convention signed at Washington on September 26, 1980, or from the application of a similar provision in another tax treaty,subparagraph (2)(b)(ii) shall be read without reference to the words “was resident in Canada and”; andthe portion of subsection (2) after subparagraph (b)(iv) shall be read as “the lesser of the money purchase limit for the year and 18% of the individual’s resident compensation from the employer for the year”.Pension Credit — Alternative DeterminationSubject to subsection (4), where the Minister has, on the written application of an employer, approved in writing a method for determining pension credits for a year with respect to the employer under a foreign plan, the pension credits shall be determined in accordance with that method.Pension Credits for 1992, 1993 and 1994The pension credit of an individual for 1992, 1993 or 1994 with respect to an employer under a foreign plan is the lesser ofthe amount that would, but for this subsection, be determined as the pension credit for the year, andthe amount, if any, by which the lesser of18% of the amount that would be the individual’s compensation from the employer for the year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraphs (b) and (c) of that definition, andthe money purchase limit for the yearexceeds the total of$1,000, andthe amount that would be the pension adjustment of the individual for the year with respect to the employer if subsection 8301(1) were read without reference to paragraph (b) of that subsection.Pension Credits — 1996 to 2002For the purpose of determining the pension credit of an individual for a calendar year after 1995 and before 2003 with respect to an employer under a foreign plan, subparagraph (2)(b)(vi) shall be read asthe money purchase limit for the year.”Foreign Plan PSPASubject to subsection (6), where the benefits to which an individual is entitled, either absolutely or contingently, under a foreign plan are modified, the foreign plan PSPA of the individual with respect to an employer associated with the modification of benefits is the amount, if any, by whichthe total of all amounts each of which is the amount that, if this section were read without reference to subsection (3), would be the pension credit of the individual with respect to the employer under the foreign plan for a calendar year before the year in which the individual’s benefits are modifiedexceeds the total of all amounts each of which isthe pension credit of the individual with respect to the employer under the foreign plan for a calendar year before the year in which the individual’s benefits are modified, orthe foreign plan PSPA of the individual with respect to the employer associated with a previous modification of the individual’s benefits under the foreign plan.Foreign Plan PSPA — Alternative DeterminationWhere the Minister has, on the written application of an employer, approved in writing a method for determining the foreign plan PSPA of an individual with respect to the employer associated with a modification of the individual’s benefits under a foreign plan, the individual’s foreign plan PSPA shall be determined in accordance with that method.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 8; SOR/99-9, s. 10; SOR/2005-264, s. 20; 2009, c. 2, s. 115
Prescribed Amount for Member of Foreign PlanPrescribed Amount
For the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, there is prescribed in respect of an individual for a calendar year the lesser of the money purchase limit for the preceding calendar year (in this section referred to as the “service year”) and the amount determined by subsection (2), if the individualrendered services to an employer (excluding services that were primarily services rendered in Canada or services rendered in connection with a business carried on by the employer in Canada, or a combination of those services) throughout a period in the service year in which the individual was resident in Canada;became entitled, either absolutely or contingently, in the service year to benefits under a foreign plan (as defined in subsection 8308.1(1)) in respect of the services; andcontinued to be entitled at the end of the service year, either absolutely or contingently, to all or part of the benefits.The amount determined for the purpose of subsection (1) is,if the only benefits to which the individ- ual became entitled in the service year under the foreign plan were provided under one or more money purchase provisions of the foreign plan, the total of all amounts each of which is the individual’s pension credit for the service year with respect to the employer under a money purchase provision of the foreign plan, determinedas though the foreign plan were a registered pension plan,without regard to any contributions made by the individual, andif, under the laws of the country in which the foreign plan is established, any contributions made after the end of the service year are treated as having been made in the service year, as though those contributions were made in the service year and not when the contributions were actually made; andin any other case, the greater ofthe total that would be determined under paragraph (a) if the individual had not become entitled in the service year to any benefits under a defined benefit provision of the foreign plan, and10% of the portion of the individual’s resident compensation from the employer for the service year that is attributable to services rendered to the employer and included under paragraph (1)(a).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 8; SOR/99-9, s. 11; SOR/2005-264, s. 21; 2009, c. 2, s. 116
Specified Retirement ArrangementsDefinition
In this section, specified retirement arrangement means, in respect of an individual and an employer, a plan or arrangement under which payments that are attributable to the individual’s employment with the employer are to be, or may be, made to or for the benefit of the individual after the termination of the individual’s employment with the employer, but does not includea plan or arrangement referred to in any of paragraphs (a) to (k), (m) and (n) of the definition retirement compensation arrangement in subsection 248(1) of the Act;[Repealed, SOR/99-9, s. 12]a plan or arrangement that does not provide in any circumstances for payments to be made to or for the benefit of the individual after the later of the last day of the calendar year in which the individual attains 71 years of age and the day that is 5 years after the day of termination of the individual’s employment with the employer;a plan or arrangement (in this paragraph referred to as the “arrangement”) that is, or would be, but for paragraph (l) of the definition retirement compensation arrangement in subsection 248(1) of the Act, a retirement compensation arrangement wherethe funding of the arrangement is subject to the Pension Benefits Standards Act, 1985 or a similar law of a province, orthe arrangement is funded substantially in accordance with the funding requirements that would apply if the arrangement were subject to the Pension Benefits Standards Act, 1985;a plan or arrangement that is deemed by subsection 207.6(6) of the Act to be a retirement compensation arrangement; oran arrangement established by the Judges Act or the Lieutenant Governors Superannuation Act.Pension CreditSubject to subsections (3) and (3.1), the pension credit of an individual for a calendar year with respect to an employer under a specified retirement arrangement iswhere paragraph (b) does not apply, nil; andwherethe year is 1993 or a subsequent year,the employer is, at any time in the year,a person who is exempt, because of section 149 of the Act, from tax under Part I of the Act on all or part of the person’s taxable income, orthe Government of Canada or the government of a province,the individual became entitled in the year, either absolutely or contingently, to benefits under the arrangement in respect of employment with the employer,at the end of the year, the individual is entitled, either absolutely or contingently, to benefits under the arrangement, andthe amount determined by the formula0.85A - Bis greater than nil whereAis the lesser ofthe amount, if any, by which 18% of the individual’s resident compensation from the employer for the year exceeds the PA offset for the year, andthe amount by which the money purchase limit for the year exceeds the PA offset for the year, andBis the amount that would be the pension adjustment of the individual for the year with respect to the employer if subsection 8301(1) were read without reference to paragraph (c) of that subsection,the amount that would be determined by the formula in subparagraph (v) if the reference to “0.85” in that formula were replaced by a reference to “1”.Pension Credit — Alternative DeterminationWhere the Minister has, on the written application of an employer, approved in writing a method for determining pension credits for a year with respect to the employer under a specified retirement arrangement, the pension credits shall be determined in accordance with that method.Pension Credits — 1996 to 2002For the purpose of determining the pension credit of an individual for a calendar year after 1995 and before 2003 with respect to an employer under a specified retirement arrangement, the portion of paragraph (2)(b) after subparagraph (iv) shall be read asthe amount determined by the formula0.85A - Bis greater than nil whereAthe lesser ofthe amount, if any, by which 18% of the individual’s resident compensation from the employer for the year exceeds the PA offset for the year, andthe amount by which $15,500 exceeds the PA offset for the year, andBis the amount that would be the pension adjustment of the individual for the year with respect to the employer if subsection 8301(1) were read without reference to paragraph (c),the amount that would be determined by the formula in subparagraph (v) ifthe reference to “0.85A” in that formula were read as a reference to “A”, andclause (B) of the description of A in that subparagraph were read asthe money purchase limit for the year, and”.”.Specified Retirement Arrangement PSPASubject to subsection (5), where the benefits to which an individual is entitled, either absolutely or contingently, under a specified retirement arrangement are modified, the specified retirement arrangement PSPA of the individual with respect to an employer associated with the modification of benefits is the amount, if any, by whichthe total of all amounts each of which is the amount that, if this section were read without reference to subsection (3), would be the pension credit of the individual with respect to the employer under the arrangement for a calendar year before the year in which the individual’s benefits are modifiedexceeds the total of all amounts each of which isthe pension credit of the individual with respect to the employer under the arrangement for a calendar year before the year in which the individual’s benefits are modified, orthe specified retirement arrangement PSPA of the individual with respect to the employer associated with a previous modification of the individual’s benefits under the arrangement.Specified Retirement Arrangement PSPA — Alternative DeterminationWhere the Minister has, on the written application of an employer, approved in writing a method for determining the specified retirement arrangement PSPA of an individual with respect to the employer associated with a modification of the individual’s benefits under a specified retirement arrangement, the individual’s specified retirement arrangement PSPA shall be determined in accordance with that method.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 8; SOR/99-9, s. 12; SOR/2005-264, s. 22; 2007, c. 29, s. 33
Government-Sponsored Retirement ArrangementsDefinitions
The definitions in this subsection apply in this section.administrator means, in respect of a government-sponsored retirement arrangement, the government or other entity that has ultimate responsibility for the administration of the arrangement. (administrateur)government-sponsored retirement arrangement means a plan or arrangement established to provide pensions directly or indirectly from the public money of Canada or a province to one or more individuals each of whom renders services in respect of which amounts that are included in computing the income from a business of any person or partnership are paid directly or indirectly from the public money of Canada or a province. (mécanisme de retraite sous régime gouvernemental)Prescribed AmountWherein a particular calendar year after 1992 an individual renders services in respect of which an amount that is included in computing the income from a business of any person was payable directly or indirectly by the Government of Canada or of a province, andat the end of the particular year, the individual is entitled, either absolutely or contingently, to benefits under a government-sponsored retirement arrangement that provides benefits in connection with such services,there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act,where the particular year is before 1996, the amount by which the RRSP dollar limit for that following year exceeds $1,000, andin any other case, the RRSP dollar limit for that following year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 8; SOR/99-9, s. 13
Prescribed Amount for Lieutenant Governors and Judges
Subject to subsection (3), where an individual is, at any time in a particular calendar year after 1989, a lieutenant governor of a province (other than a lieutenant governor who is not a contributor as defined in section 2 of the Lieutenant Governors Superannuation Act), there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, the lesser ofthe amount, if any, by which 18% of the salary received by the individual for the particular year as a lieutenant governor exceeds the PA offset for the particular year, andthe amount by which the money purchase limit for the particular year exceeds the PA offset for the particular year.Subject to subsection (3), where an individual is, at any time in a particular calendar year after 1990, a judge in receipt of a salary under the Judges Act, there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, the lesser ofthe amount, if any, by which 18% of the portion of the salary received by the individual for the particular year under the Judges Act in respect of which contributions are required under subsection 50(1) or (2) of that Act exceeds the PA offset for the particular year; andthe amount determined by the formulaA × B / 12whereAis the amount by which the money purchase limit for the particular year exceeds the PA offset for the particular year, andBis the number of months, in the particular year, for which the individual received salary in respect of which contributions were required under subsection 50(1) or (2) of the Judges Act.For the purpose of determining the amount prescribed under subsection (1) or (2) in respect of an individual for a calendar year after 2000 and before 2004,paragraph (1)(b) shall be read as follows:the money purchase limit for the particular year.”, andthe description of A in paragraph (2)(b) shall be read as follows:“Ais the money purchase limit for the particular year, and”.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/99-9, s. 14; SOR/2001-339, s. 1; SOR/2005-264, s. 23
Minister’s Powers
Where more than one method for determining an amount under this Part complies with the rules in this Part, only such of those methods as are acceptable to the Minister shall be used.Where, in a particular case, the rules in this Part require the determination of an amount in a manner that is not appropriate having regard to the provisions of this Part read as a whole and the purposes for which the amount is determined, the Minister may permit or require the amount to be determined in a manner that, in the Minister’s opinion, is appropriate.Where, pursuant to subsection (2), the Minister gives permission or imposes a requirement, the permission or requirement is not effective unless it is given or imposed in writing.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Rounding of Amounts
Where a pension credit, provisional PSPA or PAR of an individual is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two such consecutive multiples, to the higher of the two multiples.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/99-9, s. 15
Retirement and Profit-sharing Plans — Reporting and Provision of InformationDefinitions[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 9
All words and expressions used in this Part that are defined in subsection 8300(1), 8308.4(1) or 8500(1) or in subsection 147.1(1) of the Act have the meanings assigned in those provisions.A reference in this Part to a pension credit of an individual means a pension credit of the individual as determined under Part LXXXIII.For the purposes of this Part, where the administrator of a pension plan is not otherwise a person, the administrator shall be deemed to be a person.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/96-311, s. 10
Pension Adjustment
Where the pension adjustment of an individual for a calendar year with respect to an employer is greater than nil, the employer shall, on or before the last day of February in the immediately following calendar year, file with the Minister an information return in prescribed form reporting the pension adjustment, other than the portion, if any, required by subsection (2) or (3) to be reported by the administrator of a registered pension plan.Where an individual makes a contribution in a particular calendar year to a registered pension plan that is a specified multi-employer plan in the year and the contribution is not remitted to the plan by any participating employer on behalf of the individual, the plan administrator shall, on or before the last day of February in the immediately following calendar year, file with the Minister an information return in prescribed form reporting the aggregate of all amounts each of which is the portion, if any, of the individual’s pension adjustment for the particular year with respect to an employer that may reasonably be considered to result from the contribution.Where the portion of a pension credit of an individual for a calendar year that, pursuant to subsection (4), is reportable by the administrator of a registered pension plan is greater than nil, the administrator shall, on or before the last day of February in the immediately following calendar year, file with the Minister an information return in prescribed form reporting that portion of the pension credit.For the purpose of subsection (3), where, on application by the administrator of a registered pension plan that is, in a calendar year, a multi-employer plan (other than a specified multi-employer plan), the Minister consents in writing to the application of this subsection in respect of the plan in the year, such portion of each pension credit for the year under a defined benefit provision of the plan as may reasonably be considered to be attributable to benefits provided in respect of a period of reduced services of an individual is, to the extent permitted by the Minister, reportable by the administrator.Subsections (1) to (3) do not apply to require the reporting of amounts with respect to an individual for the calendar year in which the individual dies.Where the pension adjustment of an individual for a calendar year with respect to an employer is altered by reason of the application of paragraph 8308(4)(d) or (5)(c) and the amount (in this subsection referred to as the “redetermined amount”) that a person would have been required to report based on the pension adjustment as altered exceedsif the person has not previously reported an amount in respect of the individual’s pension adjustment, nil, andotherwise, the amount reported by the person in respect of the individual’s pension adjustment,the person shall, within 60 days after the day on which paragraph 8308(4)(d) or (5)(c), as the case may be, applies to alter the pension adjustment, file with the Minister an information return in prescribed form reporting the redetermined amount.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Past Service Pension Adjustment
Where a provisional PSPA (computed under section 8303, 8304 or 8308) of an individual with respect to an employer that is associated with a past service event (other than a certifiable past service event) is greater than nil, the administrator of each registered pension plan to which the past service event relates shall, within 120 days after the day on which the past service event occurs, file with the Minister an information return in prescribed form reporting such portion of the aggregate of all amounts each of which is the individual’s PSPA with respect to an employer that is associated with the past service event as may reasonably be considered to be attributable to benefits provided under the plan, except that a return is not required to be filed by an administrator if the amount that would otherwise be reported by the administrator is nil.Where a foreign plan PSPA (computed under subsection 8308.1(5) or (6)) of an individual with respect to an employer associated with a modification of benefits under a foreign plan (as defined by subsection 8308.1(1)) is greater than nil, the employer shall, on or before the last day of February in the year following the calendar year in which the individual’s benefits were modified, file with the Minister an information return in prescribed form reporting the foreign plan PSPA.Where a specified retirement arrangement PSPA (computed under subsection 8308.3(4) or (5)) of an individual with respect to an employer associated with a modification of benefits under a specified retirement arrangement (as defined by subsection 8308.3(1)) is greater than nil, the employer shall, on or before the last day of February in the calendar year following the calendar year in which the individual’s benefits were modified, file with the Minister an information return in prescribed form reporting the specified retirement arrangement PSPA.The administrator of a registered pension plan shall file with the Minister an information return in prescribed form within 120 days after a contribution is made to the plan in respect of an individual under subsection 147.1(20) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/96-311, s. 11; SOR/2005-123, s. 52023, c. 26, s. 108
Pension Adjustment ReversalDeferred Profit Sharing Plan
Where the PAR determined in connection with an individual’s termination from a deferred profit sharing plan is greater than nil, each trustee under the plan shall file with the Minister an information return in prescribed form reporting the PARwhere the termination occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the termination occurs, andwhere the termination occurs in the fourth quarter of a calendar year, before February of the following calendar year,and, for this purpose, an information return filed by a trustee under a deferred profit sharing plan is deemed to have been filed by each trustee under the plan.Deferred Profit Sharing Plan — Employer ReportingWhere an amount included in an individual’s pension credit in respect of an employer under a deferred profit sharing plan is included in determining a PAR in connection with the individual’s termination from the plan, the employer is deemed to be a trustee under the plan for the purpose of reporting the PAR.Benefit Provision of a Registered Pension PlanSubject to subsection (4), where the PAR determined in connection with an individual’s termination from a benefit provision of a registered pension plan is greater than nil, the administrator of the plan shall file with the Minister an information return in prescribed form reporting the PARwhere the termination occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the termination occurs; andwhere the termination occurs in the fourth quarter of a calendar year, before February of the following calendar year.Extended Deadline — PA Transfer AmountWhere, in determining an individual’s PAR in connection with the individual’s termination from a defined benefit provision of a registered pension plan, it is reasonable for the administrator of the plan to conclude, on the basis of information provided to the administrator by the administrator of another pension plan or by the individual, that the value of D in paragraph 8304.1(5)(a) in respect of the termination may be greater than nil, the administrator shall file with the Minister an information return in prescribed form reporting the PAR, if it is greater than nil, on or before the later ofthe day on or before which it would otherwise be required to be filed; andthe day that is 60 days after the earliest day on which the administrator has all the information required to determine that value.Pension Adjustment Correction – Employer ReportingIf a pension adjustment correction under subsection 8304.1(16) is determined for an individual in connection with a distribution from a registered pension plan (other than a pension adjustment correction that is nil), the administrator of the plan shall file with the Minister an information return in prescribed form reporting the pension adjustment correctionif the distribution occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the distribution occurs; andif the distribution occurs in the fourth quarter of a calendar year, before February of the following calendar year.Calendar Year QuarterFor the purposes of this section,the first quarter of a calendar year is the period beginning on January 1 and ending on March 31 of the calendar year;the second quarter of a calendar year is the period beginning on April 1 and ending on June 30 of the calendar year;the third quarter of a calendar year is the period beginning on July 1 and ending on September 30 of the calendar year; andthe fourth quarter of a calendar year is the period beginning on October 1 and ending on December 31 of the calendar year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-9, s. 162023, c. 26, s. 109
Government-Sponsored Retirement Arrangements
Where an amount is prescribed by subsection 8308.4(2) in respect of an individual for a calendar year because of the individual’s entitlement (either absolute or contingent) to benefits under a government-sponsored retirement arrangement (as defined in subsection 8308.4(1)), the administrator of the arrangement shall, on or before the last day of February in the year, file with the Minister an information return in prescribed form reporting the prescribed amount.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-311, s. 12
Connected Persons
Where, at any particular time after 1990,an individual becomes a member of a registered pension plan, orlifetime retirement benefits commence to accrue to the individual under a defined benefit provision of a registered pension plan following a period in which lifetime retirement benefits did not accrue to the individual,each employer who participates in the plan for the benefit of the individual and with whom the individual is connected (within the meaning assigned by subsection 8500(3)) at the particular time, or was connected at any time after 1989, shall, within 60 days after the particular time, file with the Minister an information return in prescribed form containing prescribed information with respect to the individual unless the employer has previously filed an information return under this section with respect to the individual.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Reporting to Individuals
Every person who is required by section 8401 or 8402.1 to file an information return with the Minister shall, on or before the day on or before which the return is required to be filed with the Minister, send to each individual to whom the return relates, two copies of the portion of the return that relates to the individual.Every person who is required by section 8402, 8402.01 or 8403 to file an information return with the Minister shall, on or before the day on or before which the return is required to be filed with the Minister, send to each individual to whom the return relates, one copy of the portion of the return that relates to the individual.Every person who obtains a certification from the Minister for the purposes of subsection 147.1(10) of the Act in respect of a past service event and an individual shall, within 60 days after receiving from the Minister the form submitted to the Minister pursuant to subsection 8307(1) in respect of the past service event and the individual, forward to the individual one copy of the form as returned by the Minister.Every person who is required by subsection (1), (2) or (3) to forward a copy of an information return or a form to an individual shall send the copy to the individual at the individual’s latest known address or deliver the copy to the individual in person.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/96-311, s. 13; SOR/99-9, s. 17
Discontinuance of Business
Subsection 205(2) and section 206 are applicable, with such modifications as the circumstances require, in respect of returns required to be filed under this Part.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Provision of Information
Where a person who is required to file an information return under section 8401 requires information from another person in order to determine an amount that is to be reported or to otherwise complete the return and makes a written request to the other person for the information, the other person shall provide the person with the information that is available to that other person,where the information return is required to be filed in the calendar year in which the request is received, within 30 days after receipt of the request; orin any other case, by January 31 of the year immediately following the calendar year in which the request is received.Where the administrator of a registered pension plan requires information from a person in order to determine a provisional PSPA of an individual under section 8303, 8304 or 8308 and makes a written request to the person for the information, the person shall, within 30 days after receipt of the request, provide the administrator with the information that is available to the person.Where the administrator of a registered pension plan requires information from a person in order to complete an information return required to be filed under section 8409 and makes a written request to the person for the information, the person shall, within 30 days after receipt of the request, provide the administrator with the information that is available to that person.Where a person requires information from another person in order to determine a PAR under section 8304.1 in connection with an individual’s termination in a calendar year from a deferred profit sharing plan or from a benefit provision of a registered pension plan (other than information that the other person is required to provide to the person under subsection (5)) and makes a written request to the other person for the information, the other person shall provide the person with the information that is available to the other person on or beforeif the request is received before December 17 of the year, the day that is 30 days after the day on which the request is received; andin any other case, the later of the day that is 15 days after the day on which the request is received and January 15 of the year following the year.Where benefits provided to an individual under a registered pension plan (in this subsection referred to as the “importing plan”) as a consequence of a past service event result in a PA transfer amount in relation to the individual’s termination from a defined benefit provision of another registered pension plan (in this subsection referred to as the “exporting plan”),the administrator of the importing plan shall, in writing on or before the day that is 30 days after the day on which the past service event occurred, notify the administrator of the exporting plan of the occurrence of the past service event and of its relevance in determining the individual’s PAR in connection with the individual’s termination from the defined benefit provision; andthe administrator of the importing plan shall notify the administrator of the exporting plan of the PA transfer amount in writing on or before the day that is 60 days afterin the case of a certifiable past service event, the day on which the Minister issues a certification for the purposes of subsection 147.1(10) of the Act in respect of the past service event and the individual, andin any other case, the day on which the past service event occurred.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/99-9, s. 18
Qualifying Withdrawals
Wherean individual who has withdrawn an amount from a registered retirement savings plan under which the individual was, at the time of the withdrawal, the annuitant (as defined in subsection 146(1) of the Act) provides to the issuer (as defined in subsection 146(1) of the Act) of the plan, in the calendar year in which the amount was withdrawn or one of the two immediately following calendar years, the prescribed form referred to in subparagraph 8307(3)(a)(ii) accompanied by a request that the issuer complete the form in respect of the withdrawal, andthe issuer has not, at the time of receipt of the request, forwarded to the individual 2 copies of the information return required by subsection 214(1) to be made by the issuer in respect of the withdrawal, and does not, within 30 days after receipt of the request, forward to the individual 2 copies of that return,the issuer shall, within 30 days after receipt of the request, complete those portions of the form that the form indicates are required to be completed by the issuer in respect of the withdrawal and return the form to the individual.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/2007-116, s. 14
Requirement To Provide Minister with Information
The Minister may, by notice served personally or by registered or certified mail, require that a person provide the Minister, within such reasonable time as is stipulated in the notice, withinformation relating to the determination of amounts under Part LXXXIII;where the person claims that paragraph 147.1(10)(a) of the Act is not applicable with respect to an individual and a past service event by reason of an exemption provided by regulation, information relevant to the claim; orinformation for the purpose of determining whether the registration of a pension plan may be revoked.Where a person fails to provide the Minister with information pursuant to a requirement under subsection (1), each registered pension plan and deferred profit sharing plan to which the information relates becomes a revocable plan as of the day on or before which the information was required to be provided.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Annual Information Returns
The administrator of a registered pension plan that is administered under the supervision of a government regulator shall file an information return for a fiscal period of the plan in prescribed form and containing prescribed informationwhere an agreement concerning annual information returns has been entered into by the Minister and a regulator identified in subsection (2), with that regulator, on or before the day that an information return required by that regulator is to be filed for the fiscal period; andin any other case, with the Minister on or before the day that is 180 days after the end of the fiscal period.For the purposes of paragraph (1)(a), the following government regulators have entered into an agreement concerning annual information returns with the Minister:the Office of the Superintendent of Financial Institutions;the Financial Services Regulatory Authority of Ontario;Retraite Québec;the Superintendent of Pensions, Province of Nova Scotia;the Superintendent of Pensions, Province of New Brunswick;the Office of the Superintendent - Pension Commission, Province of Manitoba;the Superintendent of Pensions, Province of British Columbia;the Superintendent of Pensions, Province of Saskatchewan;the Superintendent of Pensions, Province of Alberta; andthe Superintendent of Pensions, Province of Newfoundland and Labrador.The administrator of a registered pension plan shall, within 60 days after the final distribution of property held in connection with the plan, notify the Minister in writing of the date of the distribution and the method of settlement.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 7; SOR/96-127, s. 1SOR/2024-231, s. 24
Actuarial Reports
The administrator of a registered pension plan that contains a defined benefit provision shall, on demand from the Minister served personally or by registered or certified mail and within such reasonable time as is stipulated in the demand, file with the Minister a report prepared by an actuary on the basis of reasonable assumptions and in accordance with generally accepted actuarial principles and containing such information as is required by the Minister in respect of the defined benefit provisions of the plan.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Registered Pension PlansInterpretation
In this Part,active member of a pension plan in a calendar year means a member of the plan to whom benefits accrue under a defined benefit provision of the plan in respect of all or any portion of the year or who makes contributions, or on whose behalf contributions are made, in relation to the year under a money purchase provision of the plan; (participant actif)average Consumer Price Index for a calendar year means the amount that is obtained by dividing by 12 the aggregate of all amounts each of which is the Consumer Price Index for a month in the 12-month period ending on September 30 of the immediately preceding calendar year; (moyenne de l’indice des prix à la consommation)beneficiary of an individual means a person who has a right, by virtue of the participation of the individual in a pension plan, to receive benefits under the plan after the death of the individual; (bénéficiaire)benefit provision of a pension plan means a money purchase or defined benefit provision of the plan; (version anglaise seulement)bridging benefits provided to a member under a benefit provision of a pension plan means retirement benefits payable to the member under the provision for a period ending no later than on a date determinable at the time the benefits commence to be paid; (prestation de raccordement)Consumer Price Index for a month means the Consumer Price Index for Canada for the month as published by Statistics Canada under the authority of the Statistics Act; (indice des prix à la consommation)defined benefit limit for a calendar year means the greater of$1,722.22, and1/9 of the money purchase limit for the year; (plafond des prestations déterminées)dependant of an individual at the time of the individual’s death means a parent, grandparent, brother, sister, child or grandchild of the individual who, at that time, is both dependent on the individual for support andunder 19 years of age and will not attain 19 years of age in the calendar year that includes that time,in full-time attendance at an educational institution, ordependent on the individual by reason of mental or physical infirmity; (personne à charge)designated plan has the meaning assigned by section 8515; (régime désigné)disabled means, in relation to an individual, suffering from a physical or mental impairment that prevents the individual from performing the duties of the employment in which the individual was engaged before the commencement of the impairment; (invalide)eligible period of reduced pay of an employee with respect to an employer means a period (other than a period in which the employee is, at any time after 1990, connected with the employer or a period any part of which is a period of disability of the employee)that begins after the employee has been employed by the employer or predecessor employers to the employer for not less than three months,throughout which the employee renders services to the employer, andthroughout which the remuneration received by the employee from the employer is less than the remuneration that it is reasonable to expect the employee would have received from the employer had the employee rendered services throughout the period on a regular basis (having regard to the services rendered by the employee to the employer before the period) and had the employee’s rate of remuneration been commensurate with the employee’s rate of remuneration before the period; (période admissible de salaire réduit)eligible period of temporary absence of an individual with respect to an employer means a period throughout which the individual does not render services to the employer by reason of leave of absence, layoff, strike, lock-out or any other circumstance acceptable to the Minister, other than a perioda part of which is a period of disability of the individual, orin which the individual is, at any time after 1990, connected with the employer; (période admissible d’absence temporaire)eligible survivor benefit period, in relation to a person who is a dependant of an individual at the time of the individual’s death, means the period beginning on the day of death of the individual and ending on the latest ofwhere the dependant is under 19 years of age throughout the calendar year that includes the day of death of the individual, the earlier ofDecember 31 of the calendar year in which the dependant attains 18 years of age, andthe day of death of the dependant,where the dependant is in full-time attendance at an educational institution on the later of the day of death of the individual and December 31 of the calendar year in which the dependant attains 18 years of age, the day on which the dependant ceases to be in full-time attendance at an educational institution, andwhere the dependant is dependent on the individual at the time of the individual’s death by reason of mental or physical infirmity, the day on which the dependant ceases to be infirm or, if there is no such day, the day of death of the dependant; (période admissible de prestations au survivant)existing plan means a pension plan that was a registered pension plan on March 27, 1988 or in respect of which an application for registration was made to the Minister before March 28, 1988, and includes a pension plan that was established before March 28, 1988 pursuant to an Act of Parliament that deems member contributions to be contributions to a registered pension plan; (régime existant)forfeited amount under a money purchase provision of a pension plan means an amount to which a member of the plan has ceased to have any rights, other than the portion thereof, if any, that is payableto a beneficiary of the member as a consequence of the member’s death, orto a spouse or common-law partner or former spouse or common-law partner of the member as a consequence of the breakdown of their marriage or common-law partnership; (montant perdu)grandfathered plan meansan existing plan that, on March 27, 1988, contained a defined benefit provision, ora pension plan that was established to provide benefits under a defined benefit provision to one or more individuals in lieu of benefits to which the individuals were entitled under a defined benefit provision of another pension plan that is a grandfathered plan, whether or not benefits are also provided to other individuals; (régime exclu)IPP minimum amount, for a year, for a person who is a member of an individual pension plan (or a beneficiary, in respect of the plan, who was, at the time of the member’s death, a spouse or common-law partner of the member) meansif there is only one such person in respect of the plan, the minimum amount that would be determined under subsection 146.3(1) of the Act for the year in respect of the plan if the plan were a registered retirement income fund that held the same property as the property held by the plan and the person were the annuitant of the fund, andin any other case, the minimum amount that would be determined under subsection 146.3(1) of the Act if the person were the annuitant of a registered retirement income fund and the fair market value of the property held in connection with the fund at the beginning of the year were determined by the formulaA × B/CwhereAis the fair market value of all property held in connection with the plan at the beginning of the year,Bis the amount of the actuarial liabilities in respect of the benefits payable to the person under the terms of the plan at the beginning of the year, andCis the amount of the actuarial liabilities in respect of all benefits payable under the terms of the plan at the beginning of the year; (minimum RRI)lifetime retirement benefits provided to a member under a benefit provision of a pension plan meansretirement benefits provided to the member under the provision that, after they commence to be paid, are payable to the member until the member’s death, unless the benefits are commuted or payment of the benefits is suspended, andfor greater certainty, retirement benefits provided to the member under the provision in accordance with paragraph 8506(1)(e.1); (prestation viagère)multi-employer plan in a calendar year meansa pension plan in respect of which it is reasonable to expect, at the beginning of the year (or at the time in the year when the plan is established, if later), that at no time in the year will more than 95 per cent of the active members of the plan be employed by a single participating employer or by a related group of participating employers, other than a plan where it is reasonable to consider that one of the main reasons there is more than one employer participating in the plan is to obtain the benefit of any of the provisions of the Act or these Regulations that are applicable only in respect of multi-employer plans, ora pension plan that is, in the year, a specified multi-employer plan,and, for the purposes of this definition, 2 corporations that are related to each other solely by reason that they are both controlled by Her Majesty in right of Canada or a province shall be deemed not to be related persons; (régime interentreprises)pensionable service of a member of a pension plan under a defined benefit provision of the plan means the periods in respect of which lifetime retirement benefits are provided to the member under the provision; (services validables)period of disability of an individual means a period throughout which the individual is disabled; (période d’invalidité)predecessor employer means, in relation to a particular employer, an employer (in this definition referred to as the “vendor”) who has sold, assigned or otherwise disposed of all or part of the vendor’s business or undertaking or all or part of the assets of the vendor’s business or undertaking to the particular employer or to another employer who, at any time after the sale, assignment or other disposition, becomes a predecessor employer in relation to the particular employer, if all or a significant number of employees of the vendor have, in conjunction with the sale, assignment or disposition, become employees of the employer acquiring the business, undertaking or assets; (employeur remplacé)public pension benefits means amounts that are payable on a periodic basis under the Canada Pension Plan, a provincial pension plan as defined in section 3 of the Canada Pension Plan, or Part I of the Old Age Security Act, but does not include disability, death or survivor benefits provided under those Acts; (prestation de pension de l’État)public safety occupation means the occupation offirefighter,police officer,corrections officer,air traffic controller,commercial airline pilot, orparamedic; (profession liée à la sécurité publique)retirement benefits provided to an individual under a benefit provision of a pension plan means benefits provided to the individual under the provision that are payable on a periodic basis; (prestation de retraite)surplus under a money purchase provision of a pension plan at any time means such portion, if any, of the amount held at that time in respect of the provision as has not been allocated to members and is not reasonably attributable toforfeited amounts under the provision or earnings of the plan that are reasonably attributable to those amounts,contributions made under the provision by an employer that will be allocated to members as part of the regular allocation of such contributions, orearnings of the plan (other than earnings that are reasonably attributable to the surplus under the provision before that time) that will be allocated to members as part of the regular allocation of such earnings; (surplus)totally and permanently disabled means, in relation to an individual, suffering from a physical or mental impairment that prevents the individual from engaging in any employment for which the individual is reasonably suited by virtue of the individual’s education, training or experience and that can reasonably be expected to last for the remainder of the individual’s lifetime; (invalidité totale et permanente)Year’s Additional Maximum Pensionable Earnings for a calendar year has the meaning assigned by section 18.1 of the Canada Pension Plan; (maximum supplémentaire des gains annuels ouvrant droit à pension)Year’s Maximum Pensionable Earnings for a calendar year has the meaning assigned by section 18 of the Canada Pension Plan. (maximum des gains annuels ouvrant droit à pension)The definition surplus in subsection (1) applies for the purpose of subsection 147.3(7.1) of the Act.The definition predecessor employer in subsection (1) applies for the purpose of subsection 147.2(8) of the Act.For the purpose of determining under subsection 8507(3) whether a period in a calendar year is a qualifying period of an individual in the year with respect to an employer, the definition eligible period of reduced pay in subsection (1) is, in respect of the individual and the employer for the calendar year 2020 or 2021, modified as follows:it is to be read without reference to its paragraph (a); andits paragraph (c) is to be read as follows:throughout which the remuneration received by the employee from the employer is less than the remuneration so received before the period; (période admissible de salaire réduit)All words and expressions used in this Part that are defined in subsection 147.1(1) of the Act or in Part LXXXIII have the meanings assigned in those provisions.For the purposes of this Part, a person is connected with an employer at any time where, at that time, the personowns, directly or indirectly, not less than 10 per cent of the issued shares of any class of the capital stock of the employer or of any other corporation that is related to the employer,does not deal at arm’s length with the employer, oris a specified shareholder of the employer by reason of paragraph (d) of the definition specified shareholder in subsection 248(1) of the Act,and, for the purposes of this subsection,a person shall be deemed to own, at any time, each share of the capital stock of a corporation owned, at that time, by a person with whom the person does not deal at arm’s length,where shares of the capital stock of a corporation are owned at any time by a trust,if the share of any beneficiary in the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, any discretionary power, each beneficiary of the trust shall be deemed to own, at that time, all the shares owned by the trust, andin any other case, each beneficiary of a trust shall be deemed to own, at that time, that proportion of the shares owned by the trust that the fair market value at that time of the beneficiary’s beneficial interest in the trust is of the fair market value at that time of all beneficial interests in the trust,each member of a partnership shall be deemed to own, at any time, that proportion of all shares of the capital stock of a corporation that are property of the partnership at that time that the fair market value at that time of the member’s interest in the partnership is of the fair market value at that time of the interests of all members in the partnership, anda person who, at any time, has a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to, or to acquire, shares of the capital stock of a corporation shall be deemed to own, at that time, those shares if one of the main reasons for the existence of the right may reasonably be considered to be that the person not be connected with an employer.For the purposes of this Part, an officer who receives remuneration for holding an office shall, for any period that the officer holds the office, be deemed to render services to, and to be in the service of, the person from whom the officer receives the remuneration.For the purpose of this Part, spouse and former spouse of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual.Where this Part provides that an amount is to be determined by aggregating the durations of periods that satisfy specified conditions, a period shall be included in determining the aggregate only if it is not part of a longer period that satisfies the conditions.For the purposes of the definition active member in subsection (1), subparagraph 8503(3)(a)(v) and paragraphs 8504(7)(d), 8506(2)(c.1) and 8507(3)(a), the portion of an amount allocated to an individual at any time under a money purchase provision of a registered pension plan that is attributable toforfeited amounts under the provision or earnings of the plan that are reasonably attributable to those amounts,a surplus under the provision,property transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan, orproperty transferred to the provision in respect of the surplus under another money purchase provision of the plan or under a money purchase provision of another registered pension planshall be deemed to be a contribution made under the provision on behalf of the individual at that time.Where an individual who is entitled to receive benefits (in this subsection referred to as “member benefits”) under a pension plan because of the individual’s membership in the plan is also entitled to receive other benefits (in this subsection referred to as “non-member benefits”) under the plan or under any other pension plan solely because of the participation of another individual in the plan or in the other plan, the following rules apply:for the purpose of determining whether the member benefits are permissible under this Part, the non-member benefits shall be disregarded;for the purpose of determining whether the non-member benefits are permissible under this Part, the member benefits shall be disregarded; andfor the purpose of determining a pension adjustment, pension adjustment reversal or provisional past service pension adjustment of the individual under Part LXXXIII, the non-member benefits shall be disregarded.For the purposes of paragraph 147.3(6)(b) of the Act and subparagraphs 8502(d)(iv) and 8503(2)(h)(iii), if an amount is transferred in accordance with subsection 147.3(3) of the Act to a defined benefit provision (referred to in this subsection as the “current provision”) of a registered pension plan from a defined benefit provision (referred to in this subsection as the “former provision”) of another registered pension plan on behalf of all or a significant number of members whose benefits under the former provision are replaced by benefits under the current provision, each current service contribution made at a particular time under the former provision by a member whose benefits are so replaced is deemed to be a current service contribution made at that particular time under the current provision by the member.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/94-686, ss. 76(F), 78(F), 79(F); SOR/95-64, s. 8; SOR/99-9, s. 19; SOR/2001-67, s. 5; SOR/2001-188, s. 8; SOR/2003-328, s. 7; SOR/2005-264, s. 24; 2007, c. 35, s. 82; SOR/2007-116, s. 15; 2011, c. 24, s. 93; 2013, c. 34, s. 407SOR/2021-127, s. 3SOR/2024-231, s. 25
Prescribed Conditions for Registration and Other Conditions Applicable to Registered Pension PlansConditions for Registration
For the purposes of section 147.1 of the Act, and subject to sections 8509 and 8510, the prescribed conditions for the registration of a pension plan arethe conditions set out in paragraphs 8502(a), (c), (e), (f) and (l),if the plan contains a defined benefit provision, the conditions set out in paragraphs 8503(4)(a) and (c), andif the plan contains a money purchase provision, the conditions set out in paragraphs 8506(2)(a) and (d),and the following conditions:there is no reason to expect, on the basis of the documents that constitute the plan and establish the funding arrangements, thatthe plan may become a revocable plan pursuant to subsection (2), orthe conditions in subsection 147.1(10) of the Act may not be complied with, andthere is no reason to expect that the plan may become a revocable plan under subsection 147.1(8) or (9) of the Act or subsections 8503(15) or (26) or 8506(4).Conditions Applicable to Registered Pension PlansFor the purposes of paragraph 147.1(11)(c) of the Act, and subject to sections 8509 and 8510, a registered pension plan becomes a revocable plan at any time that it fails to comply witha condition set out in any of paragraphs 8502(b), (d), (g) to (k) and (m);where the plan contains a defined benefit provision, a condition set out in paragraph 8503(3)(a), (b), (d), (j), (k) or (l) or (4)(b), (d), (e) or (f); orwhere the plan contains a money purchase provision, a condition set out in any of paragraphs 8506(2)(b) to (c.1) and (e) to (i).Permissive RulesThe conditions in this Part do not apply in respect of a pension plan to the extent that they are inconsistent with the provisions of subsections 8503(6) and (8) and 8505(3) and (4).Supplemental PlansWherethe benefits provided under a pension plan (in this subsection referred to as the “supplemental plan”) that contains one defined benefit provision and no money purchase provisions may reasonably be considered to be supplemental to the benefits provided under a defined benefit provision (in this subsection referred to as the “base provision”) of another pension plan,the supplemental plan does not otherwise comply with the condition set out in paragraph 8502(a) or the condition set out in paragraph 8502(c), andthe Minister has approved the application of this subsection, which approval has not been withdrawn,for the purpose of determining whether the supplemental plan complies with the conditions in paragraphs 8502(a) and (c), the benefits provided under the base provision shall be considered to be provided under the supplemental plan.Benefits Payable after the Breakdown of the Marriage or Common-law PartnershipWherean individual who is a spouse or common-law partner or former spouse or common-law partner of a member of a registered pension plan is entitled to receive all or a portion of the benefits that would otherwise be payable under the plan to the member, andthe entitlement was createdby assignment of benefits by the member, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership, orby a provision of the law of Canada or a province applicable in respect of the division of property between the member and the individual, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership,the following rules apply:except where paragraph (d) applies, the benefits to which the individual is entitled are, for the purposes of this Part, deemed to be benefits provided and payable to the member, andthe benefits to which the individual is entitled are, for the purposes of this Part, deemed to be benefits provided and payable to the individual and not provided or payable to the member wherethe entitlement of the individual was created by a provision of the law of Canada or a province described in subparagraph (b)(ii), andthat provisionrequires that benefits commence to be paid to the individual at a time that may be different from the time benefits commence to be paid to the member, orgives the individual any rights in respect of the benefits to which the individual is entitled in addition to the rights that the individual would have as a consequence of an assignment by the member, in whole or in part, of the member’s right to benefits under the plan.Indirect ContributionsWhere an employer or individual makes payments to a trade union or an association of employers (in this subsection referred to as the “contributing entity”) to enable the contributing entity to make contributions to a pension plan, such portion of a contribution made by the contributing entity to the plan as is reasonably attributable to a payment made to the contributing entity by an employer or individual shall, for the purposes of the conditions in this Part, be considered to be a contribution made by the employer or individual, as the case may be, and not by the contributing entity.Member Contributions for Unfunded LiabilityFor the purposes of the conditions in this Part (other than subparagraph 8510(9)(b)(i)), a contribution made by a member of a pension plan in respect of a defined benefit provision of the plan is deemed to be a current service contribution made by the member in respect of the member’s benefits under the provision ifthe contribution cannot, but for this subsection, reasonably be considered to be made in respect of the member’s benefits under the provision;the contribution is determined by reference to the actuarial liabilities under the provision in respect of periods before the time of the contribution; andthe contribution is made pursuant to an arrangementunder which all, or a significant number, of the active members of the plan are required to make similar contributions,the main purpose of which is to ensure that the plan has sufficient assets to pay benefits under the provision, andthat is approved by the Minister.Prescribed Eligible ContributionsFor the purpose of paragraph 147.2(4)(a) of the Act, a contribution described in subsection (6.1) is a prescribed eligible contribution.Benefits Provided with Surplus on Plan Wind-upWherea single amount is paid in full or partial satisfaction of an individual’s entitlement to retirement benefits (in this subsection referred to as the “commuted benefits”) under a defined benefit provision of a registered pension plan,other benefits are subsequently provided to the individual under the provision as a consequence of an allocation, on full or partial wind-up of the plan, of an actuarial surplus under the provision,the other benefits include benefits (in this subsection referred to as “ancillary benefits”) that, but for this subsection, would not be permissible under this Part,if the individual had previously terminated from the provision and the conditions in subsection 8304.1(14) were satisfied with respect to the termination, it is reasonable to consider that all of the ancillary benefits are in respect of periods before 1990, andthe Minister has approved the application of this subsection in respect of the ancillary benefits,for the purpose of determining whether the ancillary benefits are permissible under this Part, the individual is considered to have an entitlement under the provision to the commuted benefits.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 9; SOR/96-311, s. 14; SOR/99-9, s. 20; SOR/2001-188, s. 9; SOR/2003-328, s. 8; SOR/2005-264, s. 25; SOR/2007-212, s. 5; 2011, c. 24, s. 94
Conditions Applicable to all Plans
For the purposes of section 8501, the following conditions are applicable in respect of a pension plan:Primary Purposethe primary purpose of the plan is to provide periodic payments to individuals after retirement and until death in respect of their service as employees;Permissible Contributionseach contribution that is made to the plan after 1990 is an amount thatis paid by a member of the plan in accordance with the plan as registered, where the amount is credited to the member’s account under a money purchase provision of the plan or is paid in respect of the member’s benefits under a defined benefit provision of the plan,is paid in accordance with a money purchase provision of the plan as registered, by an employer with respect to the employer’s employees or former employees,is an eligible contribution that is paid in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees,is transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (8) and 147.5(21) of the Act,is acceptable to the Minister and that is transferred to the plan from a pension plan that is maintained primarily for the benefit of non-residents in respect of services rendered outside Canada, oris paid by the trustee of a trust described in paragraph 6802(h) or (i), where the amount would have been an eligible contribution if the amount had been paid in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees,and, for the purposes of this paragraph,an eligible contribution is a contribution that is paid by an employer in respect of a defined benefit provision of a pension plan where it is an eligible contribution under subsection 147.2(2) of the Act or, in the case of a plan in which Her Majesty in right of Canada or a province is a participating employer, would be an eligible contribution under subsection 147.2(2) of the Act if all amounts held to the credit of the plan in the accounts of Canada or the province were excluded from the assets of the plan, andthe portion of each contribution that is made by Her Majesty in right of Canada or of a province, or by a person described in paragraph 4802(1)(d), in respect of a defined benefit provision of the plan and that can reasonably be considered to be made with respect to one or more employees or former employees of another person is deemed to be a contribution made by that other person;Permissible Benefitsthe plan does not provide for, and its terms are such that it will not under any circumstances provide for, any benefits other than benefitsthat are provided under one or more defined benefit provisions and are in accordance with subsection 8503(2), paragraphs 8503(3)(c) and (e) to (i) and section 8504,that are provided under one or more money purchase provisions and are in accordance with subsection 8506(1),that the plan is required to provide by reason of a designated provision of the law of Canada or a province, or that the plan would be required to provide if each such provision were applicable to the plan with respect to all its members, orthat the plan is required to provide to an individual who is a spouse or common-law partner or former spouse or common-law partner of a member of the plan by reason of a provision of the law of Canada or a province applicable in respect of the division of property between the member and the individual, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership;Permissible Distributionseach distribution that is made from the plan isa payment of benefits in accordance with the plan as registered,a transfer of property held in connection with the plan where the transfer is made in accordance with subsection 147.3(3), (4.1), (7.1) or (8) of the Act,a return of all or a portion of the contributions made by a member of the plan or an employer who participates in the plan, where the payment is made to avoid the revocation of the registration of the plan,a return of all or a portion of the contributions made by a member of the plan under a defined benefit provision of the plan, where the return of contributions is pursuant to an amendment to the plan that also reduces the future contributions that would otherwise be required to be made under the provision by members,a payment of interest (computed at a rate not exceeding a reasonable rate) in respect of contributions that are returned as described in subparagraph (iii) or (iv),a payment in full or partial satisfaction of the interests of a person in an actuarial surplus that relates to a defined benefit provision of the plan,a payment to an employer of property held in connection with a money purchase provision of the plan,where the Minister has, under subsection 8506(2.1), waived the application of the condition in paragraph 8506(2)(b.1) in respect of a money purchase provision of the plan, a payment under the provision of an amount acceptable to the Minister,a payment, other than a payment described in subparagraph (i), with respect to a member of a single amount that the plan is required to make because of the Pension Benefits Standards Act, 1985 or a similar law of a province, where the single amount is not transferred directly to another registered pension plan, a registered retirement savings plan or a registered retirement income fund, orthe portion of the IPP minimum amount for an individual that is not described in subparagraph (i).Payment of Pensionthe planrequires that the retirement benefits of a member under each benefit provision of the plan begin to be paid not later than the end of the calendar year in which the member attains 71 years of age except that,in the case of benefits provided under a defined benefit provision, the benefits may begin to be paid at any later time that is acceptable to the Minister, if the amount of benefits (expressed on an annualized basis) payable does not exceed the amount of benefits that would be payable if payment of the benefits began at the end of the calendar year in which the member attains 71 years of age,in the case of benefits provided under a money purchase provision in accordance with paragraph 8506(1)(e.1), the benefits may begin to be paid not later than the end of the calendar year in which the member attains 72 years of age, andin the case of benefits provided under a money purchase provision in accordance with paragraph 8506(1)(e.2), the benefits may begin to be paid not later than the later ofthe end of the calendar year in which the member attains 71 years of age, andthe end of the calendar year in which a transfer was made from the member’s account to acquire rights under the VPLA fund, andprovides that retirement benefits under each benefit provision are payable not less frequently than annually;Assignment of Rightsthe plan includes a stipulation that no right of a person under the plan is capable of being assigned, charged, anticipated, given as security or surrendered, and, for the purposes of this condition,assignment does not includeassignment pursuant to a decree, order or judgment of a competent tribunal or a written agreement in settlement of rights arising out of a marriage or common-law partnership between an individual and the individual’s spouse or common-law partner or former spouse or common-law partner, on or after the breakdown of their marriage or common-law partnership, orassignment by the legal representative of a deceased individual on the distribution of the individual’s estate, andsurrender does not includea reduction in benefits to avoid the revocation of the registration of the plan, ora surrender of retirement benefits payable to a beneficiary of a member after the member’s death, to the extent permitted under the Pension Benefits Standards Act, 1985 or a similar law of a province;Funding Mediathe arrangement under which property is held in connection with the plan is acceptable to the Minister;Investmentsthe property that is held in connection with the plan does not includea prohibited investment under subsection 8514(1),at any time that the plan is subject to the Pension Benefits Standards Act, 1985 or a similar law of a province, an investment that is not permitted at that time under such laws as apply to the plan, orat any time other than a time referred to in subparagraph (ii), an investment that would not be permitted were the plan subject to the Pension Benefits Standards Act, 1985;Borrowingsubject to paragraph (i.2), a trustee or other person who holds property in connection with the plan does not borrow money for the purposes of the plan, except wherethe borrowing is for a term not exceeding 90 days,the borrowing is not part of a series of loans or other transactions and repayments, andnone of the property that is held in connection with the plan is used as security for the borrowed money (except where the borrowing is necessary to provide funds for the current payment of benefits or the purchase of annuities under the plan without resort to a distressed sale of the property that is held in connection with the plan),or wherethe money is borrowed for the purpose of acquiring real property that may reasonably be considered to be acquired for the purpose of producing income from property,the aggregate of all amounts borrowed for the purpose of acquiring the property and any indebtedness incurred as a consequence of the acquisition of the property does not exceed the cost to the person of the property, andnone of the property that is held in connection with the plan, other than the real property, is used as security for the borrowed money;COVID-19 — Borrowingin their application to loans that are entered into after April 2020 and before February 2022, subparagraphs (i)(i) and (ii) are to be read as follows:the loan or, if the loan is part of a series of loans or repayments, the series of loans and repayments is repaid no later than April 30, 2022, andBorrowing – Defined Benefit Provisionin the case of a defined benefit provision of the plan (other than an individual pension plan), a trustee or other person who holds property in connection with the provision does not borrow money for the purposes of the provision, except in the circumstances described in paragraph (i) or if, at the time an amount is borrowedthe difference between A and B in subparagraph (ii) does not exceed 125% of the actuarial liabilities (determined on the effective date of the plan’s most recent actuarial report) in respect of the provision, andthe total of the borrowed amount and the amount of any other outstanding borrowings in respect of the provision (other than an amount described in paragraph (i)) does not exceed the amount determined by the formula0.20 × (A − B)whereAis the value of the plan assets in respect of the provision on the first day of the fiscal period of the plan in which the amount is borrowed, andBis the amount of outstanding borrowings in respect of the provision, determined on the first day of the fiscal period in which the amount is borrowed;Determination of Amountsexcept as otherwise provided in this Part, each amount that is determined in connection with the plan is determined, where the amount is based on assumptions, using such reasonable assumptions as are acceptable to the Minister, and, where actuarial principles are applicable to the determination, in accordance with generally accepted actuarial principles;Transfer of Property Between Provisionsproperty that is held in connection with a benefit provision of the plan is not made available to pay benefits under another benefit provision of the plan (including another benefit provision that replaces the first benefit provision), except where the transaction by which the property is made so available is such that if the benefit provisions were in separate registered pension plans, the transaction would constitute a transfer of property from one plan to the other in accordance with any of subsections 147.3(1) to (4.1), (6), (7.1) and (8) of the Act;Appropriate Pension Adjustmentsthe plan terms are not such that an amount that is determined under Part LXXXIII in respect of the plan would be inappropriate having regard to the provisions of that Part read as a whole and the purposes for which the amount is determined; andParticipants in GSRAsno individual who, at any time after 1993, is entitled, either absolutely or contingently, to benefits under the plan because of employment with an employer with whom the individual is connected is entitled at that time, either absolutely or contingently, to benefits under a government-sponsored retirement arrangement (as defined in subsection 8308.4(1)).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/94-686, s. 42(F); SOR/95-64, s. 10; SOR/96-311, s. 15; SOR/99-9, s. 21; SOR/2001-188, s. 10; SOR/2003-328, s. 9; SOR/2005-264, s. 26; SOR/2007-212, s. 6; 2007, c. 29, s. 34; 2011, c. 24, s. 95; SOR/2011-188, s. 26; 2012, c. 31, s. 69; 2013, c. 34, s. 4082021, c. 23, s. 88SOR/2021-127, s. 42023, c. 26, s. 110SOR/2024-231, s. 26
Defined Benefit ProvisionsNet Contribution Accounts
In this section and subsection 8517(2), the net contribution account of a member of a pension plan in relation to a defined benefit provision of the plan is an account that iscredited withthe amount of each contribution that is made by the member to the plan in respect of the provision,each amount that is transferred on behalf of the member to the plan in respect of the provision in accordance with any of subsections 146(16), 147(19) and 147.3(2) and (5) to (7) of the Act,such portion of each amount that is transferred to the plan in respect of the provision in accordance with subsection 147.3(3) of the Act as may reasonably be considered to derive from contributions that are made by the member to a registered pension plan or interest (computed at a reasonable rate) in respect of those contributions,the amount of any property that was held in connection with another benefit provision of the plan and that has been made available to provide benefits under the provision, to the extent that if the provisions were in separate registered pension plans, the amount would be included in the member’s net contribution account by reason of subparagraph (ii) or (iii), andinterest (computed at a reasonable rate determined by the plan administrator) in respect of each period throughout which the account has a positive balance; andcharged witheach amount that is paid under the provision with respect to the member, otherwise than in respect of an actuarial surplus under the provision,the amount of any property that is held in connection with the provision (other than property that is in respect of an actuarial surplus under the provision) and that is made available to provide benefits with respect to the member under another benefit provision of the plan, andinterest (computed at a reasonable rate determined by the plan administrator) in respect of each period throughout which the account has a negative balance.Permissible BenefitsFor the purposes of paragraph 8502(c), the following benefits may, subject to the conditions set out in respect of each benefit, be provided under a defined benefit provision of a pension plan:Lifetime Retirement Benefitslifetime retirement benefits provided to a member where the benefits are payable in equal periodic amounts, or are not so payable only by reason thatthe benefits payable to a member after the death of the member’s spouse or common-law partner are less than the benefits that would be payable to the member were the member’s spouse or common-law partner alive,the plan provides for periodic cost-of-living adjustments to be made to the benefits, where the adjustmentsare determined in such a manner that they do not exceed cost-of-living adjustments warranted by increases in the Consumer Price Index after the benefits commence to be paid,consist of periodic increases at a rate not exceeding 4 per cent per annum after the time the benefits commence to be paid,are based on the rates of return on a specified pool of assets after the benefits commence to be paid, orconsist of any combination of adjustments described in clauses (A) to (C),and, in the case of adjustments described in clauses (C) and (D), the present value (at the time the member’s benefits commence to be paid) of additional benefits that can reasonably be expected to be paid as a consequence of the adjustments does not exceed the greater ofthe present value (at the time the member’s benefits commence to be paid) of additional benefits that could reasonably be expected to be paid as a consequence of adjustments warranted by increases in the Consumer Price Index after the member’s benefits commence to be paid, andthe present value (at the time the member’s benefits commence to be paid) of additional benefits that would be paid as a consequence of adjustments at a fixed rate of 4 per cent per annum after the time the member’s benefits commence to be paid,where the plan does not provide for periodic cost-of-living adjustments to be made to the benefits, or provides only for such adjustments as are described in clause (ii)(A) or (B), the plan provides for cost-of-living adjustments to be made to the benefits from time to time at the discretion of any person, where the adjustments, together with periodic cost-of-living adjustments, if any, are warranted by increases in the Consumer Price Index after the benefits commence to be paid,the amount of the benefits is increased as a consequence of additional lifetime retirement benefits becoming provided to the member under the provision;the amount of the benefits is determined with a reduction computed by reference to the member’s age, duration of service, or both (or with any other similar reduction), and the amount is subsequently adjusted to reduce or eliminate the portion, if any, of the reduction that is not required for the benefits to comply with the conditions in paragraph (3)(c),the amount of the benefits is determined with a reduction computed by reference to the following benefits and the amount is subsequently adjusted to reduce or eliminate the reduction:disability benefits to which the member is entitled under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act,benefits to which the member is entitled under an employees’ or workers’ compensation law of Canada or a province in respect of an injury or disability, orbenefits to which the member is entitled pursuant to a sickness or accident insurance plan or a disability insurance plan,the amount of the benefits is determined with a reduction computed by reference to other benefits provided under the provision in respect of the member that are permissible under paragraph (c), (d), (k) or (n), and the amount is subsequently adjusted to reduce or eliminate the reduction,the amount of the benefits is reduced as a consequence of benefits that are permissible under paragraph (c), (d), (k) or (n) becoming provided under the provision in respect of the member,the amount of the benefits payable to the member while the member is in receipt of remuneration from a participating employer is less than the amount of the benefits that would otherwise be payable to the member if the member were not in receipt of the remuneration,the amount of the benefits is adjusted in accordance with plan terms that were submitted to the Minister before April 19, 2000, where the benefits have commenced to be paid before 2003 and the adjustment is approved by the Minister, orthe amount of the benefits is reduced as permitted under the Pension Benefits Standards Act, 1985 or a similar law of a province;Bridging Benefitsbridging benefits provided to a member wherethe bridging benefits are payable for a period beginning no earlier than the time lifetime retirement benefits commence to be paid under the provision to the member and ending no later than the end of the month immediately following the month in which the member attains 65 years of age, andthe amount of the bridging benefits payable for a particular month does not exceed the amount that is determined for that month by the formulaA × (1 - .0025 × B) × C × (D / 10)whereAis the amount (or a reasonable estimate thereof) of public pension benefits that would be payable to the member for the month in which the bridging benefits commence to be paid to the member ifthe member were 65 years of age throughout that month,that month were the first month for which public pension benefits were payable to the member,the member were entitled to the maximum amount of benefits payable under the Old Age Security Act, andthe member were entitled to the total ofthat proportion, not exceeding one, of the maximum benefits that an individual could receive under paragraphs 46(1)(a) and (b) of the Canada Pension Plan (or a similar provision of a provincial pension plan as defined in that Act) that the total of the member’s remuneration for the three calendar years in which the remuneration is the highest is of the total of the Year’s Maximum Pensionable Earnings for those three years (or such other proportion of remuneration to Year’s Maximum Pensionable Earnings as is acceptable to the Minister),that proportion, not exceeding one, of the maximum benefits that an individual could receive under paragraph 46(1)(c) of the Canada Pension Plan (or a similar provision of a provincial pension plan as defined in that Act) that the total of the member’s remuneration in excess of the Year’s Maximum Pensionable Earnings for the three calendar years in which the remuneration is the highest is of the total of the Year’s Additional Maximum Pensionable Earnings in excess of the Year’s Maximum Pensionable Earnings for those three years (or such other proportion as is acceptable to the Minister),Bisexcept where clause (B) is applicable, the number of months, if any, from the date on which the bridging benefits commence to be paid to the member to the date on which the member attains 60 years of age, andwhere the member is totally and permanently disabled at the time the bridging benefits commence to be paid to the member and the member was not, at any time after 1990, connected with an employer who has participated in the plan, nil,Cis the greatest of all amounts each of which is the ratio of the Consumer Price Index for a month not before the month in which the bridging benefits commence to be paid to the member and not after the particular month, to the Consumer Price Index for the month in which the bridging benefits commence to be paid to the member, andDisexcept where clause (B) is applicable, the lesser of 10 andwhere the member was not, at any time after 1990, connected with an employer who has participated in the plan, the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision, andin any other case, the aggregate that would be determined under subclause (I) if the duration of each period were multiplied by a fraction (not greater than 1) that measures the services rendered by the member throughout the period to employers who participate in the plan as a proportion of the services that would have been rendered by the member throughout the period to such employers had the member rendered services on a full-time basis, andwhere the member is totally and permanently disabled at the time the bridging benefits commence to be paid to the member and the member was not, at any time after 1990, connected with an employer who has participated in the plan, 10;Guarantee Periodretirement benefits (in this paragraph referred to as “continued retirement benefits”) provided to one or more beneficiaries of a member who dies after retirement benefits under the provision commence to be paid to the member wherethe continued retirement benefits are payable for a period beginning after the death of the member and endingif retirement benefits permissible under paragraph (d) are provided under the provision to a spouse or common-law partner or former spouse or common-law partner of the member, no later than five years, andin any other case, no later than 15 yearsafter the day on which retirement benefits commence to be paid under the provision to the member, andthe aggregate amount of continued retirement benefits payable under the provision for each month does not exceed the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive;Post-retirement Survivor Benefitsretirement benefits (in this paragraph referred to as “survivor retirement benefits”) provided to one or more beneficiaries of a member who dies after retirement benefits under the provision commence to be paid to the member whereeach beneficiary is, at the time of the member’s death, a spouse, a common-law partner, a former spouse, a former common-law partner or a dependant, of the member,the survivor retirement benefits provided to a spouse or common-law partner or former spouse or common-law partner are payable for a period beginning after the death of the member and ending with the death of the spouse or common-law partner or former spouse or common-law partner,the survivor retirement benefits provided to a dependant are payable for a period beginning after the death of the member and ending no later than at the end of the dependant’s eligible survivor benefit period,the amount of survivor retirement benefits payable for each month to a beneficiary does not exceed 66 2/3 per cent of the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive, andthe aggregate amount of survivor retirement benefits and other retirement benefits payable under the provision for each month to beneficiaries of the member does not exceed the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive;Pre-retirement Survivor Benefitsretirement benefits (in this paragraph referred to as “survivor retirement benefits”) provided to one or more beneficiaries of a member who dies before retirement benefits under the provision commence to be paid to the member whereno other benefits (other than benefits permissible under paragraph (g), (j), (l.1) or (n)) are payable as a consequence of the member’s death,each beneficiary is, at the time of the member’s death, a spouse, a common-law partner, a former spouse, a former common-law partner or a dependant, of the member,the survivor retirement benefits provided to a spouse or common-law partner or former spouse or common-law partner are payable for a period beginning after the death of the member and ending with the death of the spouse or common-law partner or former spouse or common-law partner,the survivor retirement benefits provided to a dependant are payable for a period beginning after the death of the member and ending no later than at the end of the dependant’s eligible survivor benefit period,the amount of survivor retirement benefits payable for a month to a beneficiary does not exceed 66 2/3 per cent of the amount that is determined in respect of the month by the formula set out in subparagraph (vi), andthe aggregate amount of survivor retirement benefits payable under the provision for a particular month to beneficiaries of the member does not exceed the amount that is determined for the particular month by the formula((A + B) / 12) × CwhereAis the amount (expressed on an annualized basis) of lifetime retirement benefits that accrued under the provision to the member as of the member’s day of death, determined without any reduction computed by reference to the member’s age, duration of service, or both, and without any other similar reduction,Bis, in the case of a member who attains 65 years of age before the member’s death or who was, at any time after 1990, connected with an employer who has participated in the plan, nil, and, otherwise, the amount, if any, by which the lesser ofthe amount (expressed on an annualized basis) of lifetime retirement benefits that could reasonably be expected to have accrued to the member to the day on which the member would have attained 65 years of age if the member had survived to that day and continued in employment and if the member’s rate of remuneration had not increased after the member’s day of death, andthe amount, if any, by which 3/2 of the Year’s Maximum Pensionable Earnings for the calendar year in which the member dies exceeds such amount as is required by the Minister to be determined in respect of benefits provided, as a consequence of the death of the member, under other benefit provisions of the plan and under benefit provisions of other registered pension plansexceeds the amount determined for A, andCis the greatest of all amounts each of which is the ratio of the Consumer Price Index for a month not before the month in which the member dies and not after the particular month, to the Consumer Price Index for the month in which the member dies;Pre-retirement Survivor Benefits — Alternative Ruleretirement benefits (in this paragraph referred to as “survivor benefits”) provided to a beneficiary of a member who dies before retirement benefits under the defined benefit provision commence to be paid to the member whereno other benefits (other than benefits permissible under paragraph (g), (j), (l.1) or (n)) are payable as a consequence of the member’s death,the beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member,the survivor benefits are payable for a period beginning not later than the later ofthe day that is one year after the day of death of the member, andthe end of the calendar year in which the beneficiary attains 71 years of age,and ending with the death of the beneficiary,the survivor benefits would be in accordance with paragraph (a) if the beneficiary were a member of the plan, andthe present value (at the time of the member’s death) of all benefits provided as a consequence of the member’s death does not exceed the present value (immediately before the member’s death) of all benefits that have accrued under the provision with respect to the member to the day of the member’s death;Pre-retirement Survivor Benefits — Guarantee Periodretirement benefits provided to one or more individuals as a consequence of the death of a person whois a beneficiary of a member who died before retirement benefits under the provision commenced to be paid to the member,was, at the time of the member’s death, a spouse or common-law partner or former spouse or common-law partner of the member, anddies after the member’s death,where the benefits would be in accordance with paragraph (c) if the person were a member of the plan;Lump Sum Payments on Terminationthe payment, with respect to a member in connection with the member’s termination from the plan (otherwise than by reason of death), of one or more single amounts wherethe payments are the last payments to be made under the provision with respect to the member,if subparagraph (iii) is not applicable, each single amount does not exceed the balance in the member’s net contribution account immediately before the time of payment of the single amount, andifthe Minister has, pursuant to subsection (5), waived the application of the conditions in paragraph (4)(a) in respect of the provision, orthe member’s contributions under the provision for each calendar year after 1990 would have been in accordance with paragraph (4)(a) if the reference in clause (i)(B) thereof to “70 per cent” were read as a reference to “50 per cent”,each single amount does not exceed the amount that would be the balance in the member’s net contribution account immediately before the time of the payment of the single amount if, for each current service contribution made by the member under the provision, the account were credited at the time of the contribution with an additional amount equal to the amount of the contribution (other than the portion of the contribution, if any, paid in respect of one or more periods that were not periods of regular employment and that would not have been required to be paid by the member if the periods were periods of regular employment);Payment of Commuted Value of Benefits on Death Before Retirementthe payment of one or more single amounts to one or more beneficiaries of a member who dies before retirement benefits under the provision commence to be paid to the member whereno retirement benefits are payable as a consequence of the member’s death, andthe aggregate of all amounts, each of which is such a single amount (other than the portion thereof, if any, that can reasonably be considered to be interest, computed at a rate not exceeding a reasonable rate, in respect of the period from the day of death of the member to the day the single amount is paid), does not exceed the present value, immediately before the death of the member or at any other time allowed under the Pension Benefits Standards Act, 1985 or similar law of a province, of all benefits that have accrued under the provision with respect to the member to the day of the member’s death;Lump Sum Payments on Deaththe payment of one or more single amounts after the death of a member wherethe payments are the last payments to be made under the provision with respect to the member,if the member dies before retirement benefits under the provision commence to be paid to the member and no retirement benefits are payable as a consequence of the member’s death, the aggregate amount to be paid at any time complies with whichever of the conditions in subparagraphs (h)(ii) and (iii) would be applicable if the single amounts were paid in connection with the member’s termination from the plan otherwise than by reason of death, andif subparagraph (ii) is not applicable, the aggregate amount to be paid at any time does not exceed the balance, immediately before that time, in the member’s net contribution account in relation to the provision;Additional Post-retirement Death Benefitsretirement benefits (in this paragraph referred to as “additional death benefits”) payable after the death of a member who dies after retirement benefits under the provision commence to be paid to the member where the additional death benefits areretirement benefits provided to a spouse or common-law partner or former spouse or common-law partner of the member that are in excess of the benefits that are permissible under paragraph (d), but that would be permissible under that paragraph if the reference in subparagraph (d)(iv) to “66 2/3 per cent” were read as a reference to “100 per cent”,retirement benefits provided to one or more beneficiaries of the member that are in excess of the benefits that are permissible under paragraph (c), but that would be permissible under that paragraph if it were read without reference to clause (i)(A) thereof, ora combination of retirement benefits described in subparagraphs (i) and (ii),and wherethe additional death benefits are provided in lieu of a proportion of the lifetime retirement benefits that would otherwise be payable under the provision to the member, andthe present value of all benefits provided under the provision with respect to the member does not exceed the present value of the benefits that would be provided ifthe amount of the member’s lifetime retirement benefits were determined without any reduction dependent on the benefits payable after the death of the member or on circumstances that are relevant in determining such death benefits,the maximum amount of retirement benefits that are permissible under paragraph (d) were payable to the member’s spouse or common-law partner or former spouse or common-law partner after the death of the member, andthose present values were determined as ofexcept where subclause (II) applies, the particular time at which retirement benefits under the provision commence to be paid to the member, andwhere the additional death benefits become provided after the particular time, the time at which the additional death benefits become provided;Additional Bridging Benefitsbridging benefits in excess of bridging benefits that are permissible under paragraph (b) (referred to in this paragraph as “additional bridging benefits”) provided to a member wherethe additional bridging benefits would be permissible under paragraph (b) ifthe formula in subparagraph (b)(ii) were replaced by the formula “A/12 x C”, andthe description of A in subparagraph (b)(ii) were read as follows:“Ais 40% of the Year’s Maximum Pensionable Earnings for the year in which the bridging benefits commence to be paid to the member,”the additional bridging benefits are provided in lieu of all or a proportion of the benefits that would otherwise be payable under the provision with respect to the member, andthe present value (at the time retirement benefits under the provision commence to be paid to the member) of all benefits provided under the provision with respect to the member does not exceed the present value (at that time) of the benefits that would be so provided if the additional bridging benefits were not provided;Survivor Bridging Benefitsretirement benefits (in this paragraph referred to as “survivor bridging benefits”) provided to a beneficiary of a member after the death of the member wherethe beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member,the survivor bridging benefits are payable at the election of the beneficiary, andthe survivor bridging benefits would be in accordance with paragraph (l) if the beneficiary were a member of the plan;Commutation of Benefitsthe payment with respect to a member of a single amount in full or partial satisfaction of the member’s entitlement to other benefits under the provision, where the single amount does not exceed the total ofthe present value (at the particular time determined in accordance with subsection (2.1)) ofthe other benefits that, as a consequence of the payment, cease to be provided, andbenefits, other than benefits referred to in clause (A), that it is reasonable to consider would cease to be provided as a consequence of the payment ifwhere retirement benefits have not commenced to be paid under the provision to the member at the particular time, the plan provided for the retirement benefits that accrued to the member under the provision to be adjusted to reflect the increase in a general measure of wages and salaries from the particular time to the day on which the benefits commence to be paid, andthe plan provided for periodic cost-of-living adjustments to be made to the retirement benefits payable under the provision to the member to reflect increases in the Consumer Price Index after the retirement benefits commence to be paid (other than increases before the particular time), andinterest (computed at a reasonable rate) from the particular time to the time the single amount is paid;the payment, with respect to an individual after the death of a member, of a single amount in full or partial satisfaction of the individual’s entitlement to other benefits under the provision, wherethe individual is a beneficiary of the member,the single amount does not exceed the total ofthe present value (at the particular time determined in accordance with subsection (2.1)) of the other benefits that, as a consequence of the payment, cease to be provided, andinterest (computed at a reasonable rate) from the particular time to the time the single amount is paid, andif the other benefits in respect of which the single amount is paid include benefits described in paragraph (e) and the beneficiary was a spouse or common-law partner or former spouse or common-law partner of the member at the time of the member’s death, the single amount is not transferred from the plan directly to another registered pension plan, a registered retirement savings plan or a registered retirement income fund except with the approval of the Minister; andretirement benefits provided to a member or a beneficiary of the member after the death of the member, if the beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member, as permitted by the Pension Benefits Standards Act, 1985 or a similar law of a province wherethe life expectancy of the individual is significantly shorter than normal and has been so certified by a medical doctor or nurse practitioner licensed under the laws of a province or of the place where the individual resides,the retirement benefits replace all or a portion of retirement benefits (referred to in subparagraph (iii) as the “former benefits”) that would otherwise be payable under the provision with respect to the individual, andat the time the retirement benefits replace the former benefits, the present value of the benefits does not exceed the present value of the former benefits.Rule for Commutation of BenefitsFor the purpose of determining the limit on a single amount that can be paid with respect to an individual under paragraph (2)(m) or (n), the particular time referred to in that paragraph isexcept where paragraph (b) applies, the time the single amount is paid; andan earlier time than the time the single amount is paid, wherethe amount is based on a determination of the actuarial value (at the earlier time) of the individual’s benefits,the use of the earlier time in determining the actuarial valueis required by the Pension Benefits Standards Act, 1985 or a similar law of a province, oris reasonable having regard to accepted actuarial practice and the circumstances in which the individual acquires the right to the payment, andexcept where clause (ii)(A) applies, the earlier time is no more than two years before the time the single amount is paid.Conditions Applicable to BenefitsFor the purposes of subsection 8501(2) and subparagraph 8502(c)(i), the following conditions are applicable in respect of the benefits provided under each defined benefit provision of a pension plan:Eligible Servicethe only lifetime retirement benefits provided under the provision to a member (other than additional lifetime retirement benefits provided to a member because the member is totally and permanently disabled at the time the member’s retirement benefits commence to be paid) are lifetime retirement benefits provided in respect of one or more of the following periods (other than the portion of a period that is after the calendar year in which the member attains 71 years of age), namely,a period throughout which the member is employed in Canada by, and receives remuneration from, an employer who participates in the plan,a period throughout which the member was employed in Canada by, and received remuneration from, a predecessor employer to an employer who participates in the plan,an eligible period of temporary absence of the member with respect to an employer who participates in the plan or a predecessor employer to such an employer,a period of disability of the member subsequent to a period described in subparagraph (i) where, throughout such part of the period of disability as is after 1990, the member is not connected with an employer who participates in the plan,a period in respect of whichunless the provision is a provision of an individual pension plan,subparagraph (v.1) does not apply, andbenefits that are attributable to employment of the member with a former employer accrued to the member under a defined benefit provision of another registered pension plan, orcontributions were made by or on behalf of the member under a money purchase provision of another registered pension plan,where the member has ceased to be a member of that other plan,unless the provision is a provision of an individual pension plan, a portion — determined by reference to the proportion of property that has been transferred, as described in clause (B) — of a period in respect of whichbenefits that are attributable to employment of the member with a former employer accrued to the member under a defined benefit provision of another registered pension plan, andpursuant to the Pension Benefits Standards Act, 1985 or a similar law of a province, a portion of property held in connection with the benefits described in clause (A) has been transferred to the provision and the balance of property is required to be transferred to the provision at a later date,unless the provision is a provision of an individual pension plan, a period throughout which the member was employed in Canada by a former employer where the period was an eligibility period for the participation of the member in another registered pension plan, anda period acceptable to the Minister throughout which the member is employed outside Canada;Benefit Accruals After Pension Commencementbenefits are not provided under the provision (in this paragraph referred to as the “particular provision”) to a member in respect of a period that is after the day on which retirement benefits (other than retirement benefits payable as a consequence of the death of another person) commence to be paid to the member under a defined benefit provision ofthe plan, orany other registered pension plan ifan employer who participated under the particular provision for the benefit of the member, oran employer who does not deal at arm’s length with an employer referred to in clause (A)has participated under the defined benefit provision of the other plan for the benefit of the member;Early Retirementwhere lifetime retirement benefits commence to be paid under the provision to a member at any time beforein the case of a member whose benefits are provided in respect of employment in a public safety occupation, the earliest ofthe day on which the member attains 55 years of age,the day on which the member has 25 years of early retirement eligibility service in relation to the provision,the day on which the aggregate of the member’s age (measured in years, including any fraction of a year) and years of early retirement eligibility service in relation to the provision is equal to 75, andif the member was not, at any time after 1990, connected with any employer who has participated in the plan, the day on which the member becomes totally and permanently disabled, andin any other case, the earliest ofthe day on which the member attains 60 years of age,the day on which the member has 30 years of early retirement eligibility service in relation to the provision,the day on which the aggregate of the member’s age (measured in years, including any fraction of a year) and years of early retirement eligibility service in relation to the provision is equal to 80, andif the member was not, at any time after 1990, connected with any employer who has participated in the plan, the day on which the member becomes totally and permanently disabled,the amount (expressed on an annualized basis) of lifetime retirement benefits payable to the member for each calendar year does not exceed the amount that is determined for the year by the formulaX × (1 - .0025 × Y)whereXis the amount (expressed on an annualized basis) of lifetime retirement benefits that would be payable to the member for the year if the benefits were determined without a reduction computed by reference to the member’s age, duration of service, or both, and without any other similar reduction, andYis the number of months in the period from the day on which lifetime retirement benefits commence to be paid to the member to the earliest of the days that would be determined under clauses (i)(A) to (C) or (ii)(A) to (C), as the case may be, if the member continued in employment with an employer who participates in the plan,and, for the purposes of this paragraph,early retirement eligibility service of a member in relation to a defined benefit provision of a pension plan means one or more periods each of which isa period that is pensionable service of the member under the provision, ora period throughout which the member was employed by an employer who has participated in the plan or by a predecessor employer to such an employer, andyears of early retirement eligibility service of a member in relation to a defined benefit provision of a pension plan means the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is early retirement eligibility service of the member in relation to the provision;Increased Benefits for Disabled Memberwhere the amount of lifetime retirement benefits provided under the provision to a member depends on whether the member is physically or mentally impaired at the time (in this paragraph referred to as the “time of commencement”) at which retirement benefits under the provision commence to be paid to the member,the amount of lifetime retirement benefits payable if the memberis not totally and permanently disabled at the time of commencement, oris totally and permanently disabled at the time of commencement and was, at any time after 1990, connected with an employer who has participated in the plansatisfies the limit that would be determined by the formula set out in paragraph (c) if the member were not impaired at the time of commencement, andthe amount of lifetime retirement benefits payable for a particular month to the member if subparagraph (i) is not applicable does not exceed the amount that is determined for the particular month by the formula((A + B) / 12) × CwhereAis the amount (expressed on an annualized basis) of lifetime retirement benefits that have accrued under the provision to the member to the time of commencement, determined as if the member were not impaired at the time of commencement and without any reduction computed by reference to the member’s age, duration of service, or both, and without any other similar reduction,Bis, in the case of a member who attains 65 years of age before the time of commencement, nil, and, otherwise, the amount, if any, by which the lesser ofthe amount (expressed on an annualized basis) of lifetime retirement benefits that could reasonably be expected to have accrued to the member to the day on which the member would have attained 65 years of age if the member had survived to that day and continued in employment and if the member’s rate of remuneration had not increased after the time of commencement, andthe amount, if any, by which the Year’s Maximum Pensionable Earnings for the calendar year that includes the time of commencement exceeds such amount as is required by the Minister to be determined in respect of benefits provided to the member under other benefit provisions of the plan and under benefit provisions of other registered pension plansexceeds the amount determined for A, andCis the greatest of all amounts each of which is the ratio of the Consumer Price Index for a month not before the month that includes the time of commencement and not after the particular month to the Consumer Price Index for the month that includes the time of commencement;Pre-1991 Benefitsall benefits provided under the provision in respect of periods before 1991 are acceptable to the Minister and, for the purposes of this condition, any benefits in respect of periods before 1991 that become provided after 1988 with respect to a member who is connected with an employer who participates in the plan or was so connected at any time before the benefits become provided shall, unless the Minister is notified in writing that the benefits are provided with respect to the member, be deemed to be unacceptable to the Minister;Determination of Retirement Benefitsthe amount of retirement benefits provided under the provision to a member is determined in such a manner that the member’s pension credit (as determined under Part LXXXIII) under the provision for a calendar year with respect to an employer is determinable at the end of the year;Benefit Accrual Rateif the amount of lifetime retirement benefits provided under the provision to a member is determined, in part, by multiplying the member’s remuneration (or a function of the member’s remuneration) by an annual benefit accrual rate, or in a manner that is equivalent to that calculation, the annual benefit accrual rate or the quivalent annual benefit accrual rate does not exceedin the case of a member whose benefits are provided in respect of employment in a public safety occupation and for whom the formula for determining the amount of the lifetime retirement benefits can reasonably be considered to take into account public pension benefits, 2.33 per cent, andin any other case, 2 per cent;Increase in Accrued Benefitswhere the amount of lifetime retirement benefits provided to a member in respect of a calendar year depends onthe member’s remuneration in subsequent years, orthe average wage (or other general measure of wages and salaries) for subsequent years,and this condition has not been waived by the Minister, the formula for determining the amount of lifetime retirement benefits is such thatthe percentage increase from year to year in the amount of lifetime retirement benefits that accrued to the member in respect of the year can reasonably be expected to approximate or be less than the percentage increase from year to year in the member’s remuneration or in the average wage (or other general measure of wages and salaries), as the case may be, orthe condition in subparagraph (iii) is not satisfied only by reason that the formula can reasonably be considered to have been designed taking into account the public pension benefits payable to members,and, for the purposes of this condition, where in determining the amount of lifetime retirement benefits provided under the provision to a member there is deducted an amount described in subparagraph (j)(i), it shall be assumed that the amount so deducted is nil;where the amount of lifetime retirement benefits provided to a member in respect of a calendar year depends on the member’s remuneration in other years, the formula for determining the amount of the lifetime retirement benefits is such that any increase in the amount of lifetime retirement benefits that accrued to the member in respect of the year that is attributable to increased remuneration is primarily attributable to an increase in the rate of the member’s remuneration;Offset Benefitswherein determining the amount of lifetime retirement benefits provided under the provision to a member there is deductedthe amount of lifetime retirement benefits provided to the member under a benefit provision of a registered pension plan, orthe amount of a lifetime annuity that is provided to the member under a deferred profit sharing plan, anda single amount is paid in full or partial satisfaction of the member’s entitlement to benefits under the benefit provision referred to in clause (i)(A) or the deferred profit sharing plan referred to in clause (i)(B),the amount that is so deducted in determining the amount of the member’s lifetime retirement benefits under the defined benefit provision includes the amount of lifetime retirement benefits or lifetime annuity that may reasonably be considered to have been foregone as a consequence of the payment of the single amount;Bridging Benefits — Cross-plan Restrictionbridging benefits are not paid under the provision to a member who receives bridging benefits under another defined benefit provision of the plan (in this paragraph referred to as the “particular plan”) or under a defined benefit provision of another registered pension plan, except that this condition is not applicable where it is waived by the Minister or wherebridging benefits are paid to the member under only one defined benefit provision of the particular plan,the decision to provide bridging benefits under the particular plan to the member was not made by the member, by persons with whom the member does not deal at arm’s length or by the member and such persons, andeach employer who has participated in any registered pension plan (other than the particular plan) under a defined benefit provision of which the member receives bridging benefitshas not participated in the particular plan, andhas always dealt at arm’s length with each employer who has participated in the particular plan,and, for the purposes of this paragraph, bridging benefits provided under a defined benefit provision of a registered pension plan to the member do not include benefits that are provided on a basis no more favourable than an actuarially equivalent basis in lieu of all or a proportion of the benefits that would otherwise be payable under the provision with respect to the member; andDivision of Benefits on Breakdown of the Marriage or Common-law Partnershipif, by reason of a provision of a law described in subparagraph 8501(5)(b)(ii), an individual who is a spouse or common-law partner or former spouse or common-law partner of a member becomes entitled to receive all or a portion of the benefits that would otherwise be payable under the defined benefit provision to the member, and paragraph 8501(5)(d) applies with respect to the benefits,the present value of benefits provided under the provision with respect to the member (including, for greater certainty, benefits provided with respect to the individual) is not increased as a consequence of the individual becoming so entitled to benefits, andthe benefits provided under the provision to the member are not, at any time, adjusted to replace, in whole or in part, the portion of the member’s benefits to which the individual has become entitled.Additional ConditionsFor the purposes of section 8501, the following conditions are applicable in respect of each defined benefit provision of a pension plan:Member Contributionswhere members are required or permitted to make contributions under the provision,the aggregate amount of current service contributions to be made by a member in respect of a calendar year after 1990, no part of which is a period of disability or an eligible period of reduced pay or temporary absence of the member, does not exceed the lesser of9 per cent of the aggregate of all amounts each of which is the member’s compensation for the year from an employer who participates in the plan in the year for the benefit of the member, andthe aggregate of $1,000 and 70 per cent of the aggregate of all amounts each of which is the amount that would be the member’s pension credit (as determined under Part LXXXIII) for the year under the provision with respect to an employer if section 8302 were read without reference to paragraphs (2)(b) and (3)(g) thereof,the method for determining current service contributions to be made by a member in respect of a calendar year that includes a period of disability or an eligible period of reduced pay or temporary absence of the member (referred to in this subparagraph as a “period of reduced services”) is consistent with that used for determining contributions in respect of years described in subparagraph (i), except that the member may be permitted or required to make, in respect of a period of reduced services, current service contributions not exceeding the amount reasonably necessary to fund the member’s benefits in respect of the period of reduced services, andthe aggregate amount of contributions to be made by a member in connection with benefits that, as a consequence of a transaction, event or circumstance occurring at a particular time, become provided under the provision in respect of periods before that time does not exceed the amount reasonably necessary to fund such benefits;Pre-payment of Member Contributionsthe contributions that are made under the provision by a member in respect of a calendar year are not paid before the year;Reduction in Benefits and Return of Contributionswhere the plan is not established by an enactment of Canada or a province, it includes a stipulation that permits, for the purpose of avoiding revocation of the registration of the plan,the plan to be amended at any time to reduce the benefits provided under the provision with respect to a member, anda contribution that is made under the provision by a member or an employer to be returned to the person who made the contribution,which stipulation may provide that an amendment to the plan, or a return of contributions, is subject to the approval of the authority administering the Pension Benefits Standards Act, 1985 or a similar law of a province;Undue Deferral of Paymenteach single amount that is payable after the death of a member is paid as soon as is practicable after the member’s death (or, in the case of a single amount permitted by reason of paragraph (2)(j), after all other benefits have been paid);Evidence of Disabilitywhere additional lifetime retirement benefits are provided under the provision to a member because the member is totally and permanently disabled, the additional benefits are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the member is totally and permanently disabled; andwhere lifetime retirement benefits are provided under the provision to a member in respect of a period of disability of the member, the benefits, to the extent that they would not be in accordance with paragraph (3)(a) if that paragraph were read without reference to subparagraph (iv) thereof, are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the period is a period of disability.Waiver of Member Contribution ConditionThe Minister may waive the conditions in paragraph (4)(a) where member contributions under a defined benefit provision of a pension plan are determined in a manner acceptable to the Minister and it is reasonable to expect that, on a long-term basis, the aggregate of the regular current service contributions made under the provision by all members will not exceed 1/2 of the amount that is required to fund the aggregate benefits in respect of which those contributions are made.Pre-retirement Death BenefitsA pension plan may provide, in the case of a member who dies before retirement benefits under a defined benefit provision of the plan commence to be paid to the member but after becoming eligible to have retirement benefits commence to be paid, benefits under the provision to the beneficiaries of the member where the benefits would be in accordance with subsection (2) if retirement benefits under the provision had commenced to be paid to the member immediately before the member’s death.Commutation of Lifetime Retirement BenefitsWhere a pension plan permits a member to receive a single amount in full or partial satisfaction of the member’s entitlement to lifetime retirement benefits under a defined benefit provision of the plan, the following rules apply:the condition in subparagraph (2)(b)(i) that the payment of bridging benefits under the provision not commence before lifetime retirement benefits commence to be paid under the provision to the member is not applicable where, before the member’s lifetime retirement benefits commence to be paid, a single amount is paid in full satisfaction of the member’s entitlement to the lifetime retirement benefits; andsuch part of the member’s lifetime retirement benefits as remains payable after a single amount is paid in full satisfaction of the member’s entitlement to lifetime retirement benefits that would otherwise be payable after the member attains a particular age shall be deemed, for the purposes of the conditions in this section, to be lifetime retirement benefits and not to be bridging benefits.Bridging Benefits and ElectionWhere a pension plan permits a member, or a spouse or common-law partner or former spouse or common-law partner of the member, to elect to receive benefits described in any of paragraphs (2)(b), (l) or (l.1) under a defined benefit provision of the plan on a basis no more favourable than an actuarially equivalent basis in lieu of all or a proportion of the benefits that would otherwise be payable under the provision with respect to the member, the following rules apply:the condition in subparagraph (2)(b)(i) that the payment of bridging benefits under the provision not commence before lifetime retirement benefits commence to be paid under the provision to the member does not apply if, as a consequence of the election, no lifetime retirement benefits remain payable under the provision to the member; andfor the purpose of determining whether retirement benefits provided under the provision to beneficiaries of the member are in accordance with paragraphs (2)(c), (d) and (k), the election may be disregarded.Suspension or Cessation of PensionA pension plan may provide forthe suspension of payment of a member’s retirement benefits under a defined benefit provision of the plan wherethe retirement benefits payable to the member after the suspension are not altered by reason of the suspension, orsubsection (9) is applicable in respect of the member’s retirement benefits; andthe cessation of payment of any additional benefits that are payable to a member under a defined benefit provision of the plan because of a physical or mental impairment of the member or the termination of the member’s employment under a downsizing program (within the meaning assigned by subsection 8505(1)).Re-employed MembersSubject to subsection (10), where a pension plan provides, in the case of a member who becomes an employee of a participating employer after the member’s retirement benefits under a defined benefit provision of the plan have commenced to be paid, thatpayment of the member’s retirement benefits under the provision is suspended while the member is employed by a participating employer, andthe amount of retirement benefits payable to the member after the suspension is redeterminedto include benefits in respect of all or a part of the period throughout which payment of the member’s benefits was suspended,where the retirement benefits payable under the provision to the member after the suspension are not adjusted by any cost-of-living or similar adjustments in respect of the period throughout which payment of the member’s benefits was suspended, to take into account the member’s remuneration from the employer for the period throughout which payment of the benefits was suspended,where the member was totally and permanently disabled at the time the member’s retirement benefits commenced to be paid, to include benefits in respect of all or a part of the period of disability of the member,where the amount of the member’s retirement benefits was previously determined with a reduction computed by reference to the member’s age, duration of service, or both, or with any other similar reduction, by redetermining the amount of the reduction, orwhere payment of the member’s retirement benefits resumes after the member attains 65 years of age, by applying an adjustment for the purpose of compensating, in whole or in part, for the payments foregone by the member after attaining 65 years of age,the following rules apply:the condition in paragraph (3)(b) is not applicable in respect of benefits provided under the provision to the member in respect of a period throughout which payment of the member’s benefits is suspended,where the member was totally and permanently disabled at the time the member’s retirement benefits commenced to be paid, the condition in paragraph (3)(b) is not applicable in respect of benefits provided under the provision to the member in respect of a period of disability of the member,the conditions in paragraphs (2)(b) and (3)(c) and (d) and section 8504 are applicable in respect of benefits payable under the provision to the member after a suspension of the member’s retirement benefits as if the member’s retirement benefits had not previously commenced to be paid,for the purpose of paragraph 8502(c) as it applies in respect of benefits provided under the provision on the death of the member during or after a period throughout which payment of the member’s benefits is suspended, subsections (2) and (6) are applicable as if the member’s retirement benefits had not commenced to be paid before the period, andthe provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring in the period in which the member’s benefits are suspended as if the member’s benefits had not previously commenced to be paid.Re-employed Member — Special Rules Not ApplicableSubsection (9) does not apply in respect of benefits provided under a defined benefit provision of a pension plan to a member unless the terms of the plan that provide for the redetermination of the amount of the member’s retirement benefits do not apply where retirement benefits have, at any time, been paid under the provision to the member while the member was an employee of a participating employer.Re-employed Member — Anti-avoidanceWhere a member of a registered pension plan has become an employee of a participating employer after the member’s retirement benefits under a defined benefit provision of the plan have commenced to be paid and it is reasonable to consider that one of the main reasons for the employment of the member is to enable the member to benefit from terms of the plan that provide for a redetermination of the amount of the member’s retirement benefits provided in respect of a period before the benefits commenced to be paid, the plan becomes a revocable plan at the time the payment of the member’s benefits resumes.Special Rules for Member Aged 70 or 71 in 2007Wherea member of a registered pension plan attained 69 years of age in 2005 or 2006,the member’s retirement benefits under a defined benefit provision of the plan commenced to be paid to the member in the year in which the member attained 69 years of age,the member’s retirement benefits are suspended as of any particular time in 2007, andthe member was employed with a participating employer from the time the member’s retirement benefits commenced to be paid to the particular time,the following rules apply:subsections (9) and (11) shall apply with respect to the member as though the member became an employee of the participating employer at the particular time, andfor the purpose of subsection (10), retirement benefits paid under the provision to the member before the particular time shall be disregarded.Limits Dependent on Consumer Price IndexBenefits provided under a defined benefit provision of a pension plan that are benefits to which a condition in any of subparagraphs (2)(b)(ii) and (e)(v) and (vi) and (3)(d)(ii) is applicable shall be deemed to comply with the condition where they would so comply if the Consumer Price Index ratio computed as part of the formula that applies for the purpose of the condition were replaced by a substantially similar measure of the change in the Consumer Price Index.Statutory Plans — Special RulesNotwithstanding subsection (3),for the purposes of the condition in paragraph (3)(b) as it applies in respect of benefits provided under the pension plan established by the Public Service Superannuation Act, the reference to “any other registered pension plan” in subparagraph (3)(b)(ii) does not include the pension plans established by the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act; andthe condition in paragraph (3)(c) does not apply in respect of benefits provided under the pension plan established by the Canadian Forces Superannuation Act.Artificially Reduced Pension AdjustmentsWherethe amount of lifetime retirement benefits provided under a defined benefit provision of a registered pension plan to a member depends on the member’s remuneration,remuneration (in this subsection referred to as “excluded remuneration”) of certain types is disregarded for the purpose of determining the amount of the member’s lifetime retirement benefits, andit can reasonably be considered that one of the main reasons that remuneration in the form of excluded remuneration was paid to the member by an employer at any time was to artificially reduce a pension credit of the member under the provision with respect to the employer,the following rules apply for the purposes of the conditions in subsection 8504(1):the member shall be deemed to have been connected with the employer while the member was employed by the employer, andthe member shall be deemed not to have received such remuneration as is excluded remuneration.Past Service Employer ContributionsWherea contribution that is made by an employer to a registered pension plan is made, in whole or in part, in respect of benefits (in this subsection referred to as “past service benefits”) provided under the plan to a member in respect of a period before 1990 and before the calendar year in which the contribution is made,the contribution is madeafter December 10, 1989, orbefore December 11, 1989 where the contribution has not, before that date, been approved by the Minister under paragraph 20(1)(s) of the Act, andit is reasonable to consider that all or substantially all of such portion of the contribution as is in respect of past service benefits was paid by the employer, with the consent of the member, in lieu of a payment or other benefit to which the member would otherwise be entitled,the plan becomes, for the purposes of paragraph 147.1(11)(c) of the Act, a revocable plan on the later of December 11, 1989 and the day immediately before the day on which the contribution is made.DefinitionsThe following definitions apply in this subsection and in subsections (17) to (23).qualifying period of a member under a defined benefit provision of a pension plan means a period throughout which the member is employed by an employer who participates in the plan but does not include any period that is before the day that is the first day, on or after the later of the following days, in respect of which retirement benefits are provided under the provision to the member:the day on which retirement benefits first commenced to be paid to the member under the provision; andthe member’s specified eligibility day under the provision. (période admissible)specified eligibility day of a member under a defined benefit provision of a pension plan means the earlier ofthe later ofthe day on which the member attains 55 years of age, andthe day on which the member attains the earliest age at which payment of the member’s lifetime retirement benefits may commence under the terms of the provision without a reduction computed by reference to the member’s age, duration of service, or both (and without any other similar reduction), otherwise than because of the member being totally and permanently disabled; andthe day on which the member attains 60 years of age. (date d’admissibilité)Bridging Benefits Payable on a Stand-alone BasisThe condition in subparagraph (2)(b)(i) that bridging benefits be payable to a member under a defined benefit provision of a pension plan for a period beginning no earlier than the time lifetime retirement benefits commence to be paid under the provision to the member does not apply where the following conditions are satisfied:the bridging benefits do not commence to be paid before the member’s specified eligibility day under the provision;the plan provides that bridging benefits are payable under the provision to the member only for calendar monthsat any time in which the member is employed by an employer who participates in the plan, orthat begin on or after the time the member’s lifetime retirement benefits under the provision commence to be paid;the member was not, at any time before the time at which the bridging benefits commence to be paid, connected with an employer who participates in the plan; andthe plan is not a designated plan.Rules of ApplicationWhere bridging benefits under a defined benefit provision of a pension plan commence to be paid to a member in circumstances to which subsection (17) applies, the following rules apply:if the member dies before lifetime retirement benefits under the provision commence to be paid to the member, subsections (2) and (6) apply in respect of benefits provided under the provision on the death of the member as if the bridging benefits had not commenced to be paid before the member’s death; andthe provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring before lifetime retirement benefits under the provision commence to be paid to the member as if the bridging benefits had not commenced to be paid.Benefit Accruals After Pension CommencementParagraph (3)(b) does not apply to retirement benefits (in this subsection and in subsections (20) and (21) referred to as “additional benefits”) provided under a defined benefit provision of a pension plan to a member of the plan if the following conditions are satisfied:the additional benefits are provided in respect of all or part of a qualifying period of the member under the provision;the amount of retirement benefits payable to the member under the provision for each whole calendar month in the qualifying period does not exceed 5% of the amount (expressed on an annualized basis) of retirement benefits that have accrued under the provision to the member to the beginning of the month, determined without a reduction computed by reference to the member’s age, duration of service, or both, and without any other similar reduction (except that, if the plan limits the amount of pensionable service of a member or prohibits the provision of benefits in respect of periods after a member attains a specific age or combination of age and pensionable service, this condition does not apply to any calendar month in respect of which no benefits can be provided to the member because of the limit or prohibition, as the case may be);no part of the additional benefits are provided as a consequence of a past service event, unless the benefits are provided in circumstances to which subsection 8306(1) would apply if no qualifying transfers were made in connection with the past service event;the member was not, at any time before the additional benefits become provided, connected with an employer who participates in the plan; andthe plan is not a designated plan.Redetermination of BenefitsWhere the amount of retirement benefits payable under a defined benefit provision of a pension plan to a member is redetermined to include additional benefits provided to the member in respect of a qualifying period of the member under the provision, the conditions in paragraph (2)(b) and section 8504 apply in respect of benefits payable under the provision to the member after the redetermination as if the member’s retirement benefits had first commenced to be paid at the time of the redetermination.Rules of ApplicationWhere additional benefits are provided under a defined benefit provision of a pension plan to a member in respect of a qualifying period of the member under the provision, the following rules apply:if the qualifying period ends as a consequence of the member’s death, subsections (2) and (6) apply in respect of benefits provided under the provision on the death of the member as if the member’s retirement benefits had not commenced to be paid before the member’s death; andthe provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring in the qualifying period as if the member’s retirement benefits had not commenced to be paid.Anti-avoidanceSubsections (20) and (21) do not apply where it is reasonable to consider that one of the main reasons for the provision of additional benefits to the member is to obtain the benefit of any of those subsections.Cross-plan RulesWhere a member is provided with benefits under two or more associated defined benefit provisions, the determination of whether the conditions in subsections (17) and (19) are satisfied in respect of benefits payable or provided to the member under a particular associated provision shall be made on the basis of the following assumptions:benefits payable to the member under each of the other associated provisions were payable under the particular associated provision;if, before the member’s specified eligi-bility day (determined without reference to this paragraph) under the particular associated provision, the member had commenced to receive retirement benefits under another associated provision on or after the member’s specified eligibility day under that provision, the member’s specified eligibility day under the particular associated provision were the member’s specified eligibility day under that other associated provision; andif one or more of the other associated provisions is in a designated plan, the plan that includes the particular provision were also a designated plan.Associated Defined Benefit ProvisionsFor the purpose of subsection (23), a defined benefit provision is associated with another defined benefit provision (other than a provision that is not in a registered pension plan) ifthe provisions are in the same pension plan; orthe provisions are in separate pension plans andthere is an employer who participates in both plans, oran employer who participates in one of the plans does not deal at arm’s length with an employer who participates in the other plan.Subsection (24) not ApplicableA particular defined benefit provision of a pension plan is not associated with a defined benefit provision of another pension plan if it is unreasonable to expect the benefits under the particular provision to be coordinated with the benefits under the other provision and the Minister has agreed not to treat the particular provision as being associated with the other provision.IPP — Minimum WithdrawalAn individual pension plan becomes a revocable plan at the end of a year ifa person who is a member or a beneficiary, in respect of the plan, who was, at the time of the member’s death, a spouse or common-law partner of the member, is in receipt of retirement benefits under the terms of the plan;the person has attained 71 years of age before the year; andthe plan has not paid in the year an amount to the person equal to the greater ofthe retirement benefits payable to the person for the year, andthe lesser ofthe IPP minimum amount for the person for the year, andthe actuarial surplus under the plan at the beginning of the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 11; SOR/99-9, s. 22; SOR/2001-67, s. 6; SOR/2001-188, ss. 11, 14 to 16; SOR/2003-396, s. 1; SOR/2005-264, s. 27; 2007, c. 29, s. 35, c. 35, s. 83; SOR/2007-116, s. 16(F); 2011, c. 24, 96; 2017, c. 33, s. 1022021, c. 23, s. 89SOR/2024-231, s. 27
Maximum BenefitsLifetime Retirement Benefits
For the purposes of subparagraph 8502(c)(i), the following conditions are applicable in respect of the lifetime retirement benefits provided to a member under a defined benefit provision of a pension plan:the amount (expressed on an annualized basis) of lifetime retirement benefits payable to the member for the calendar year (in this paragraph referred to as the “year of commencement”) in which the lifetime retirement benefits commence to be paid does not exceed the aggregate ofthe aggregate of all amounts each of which is, in respect of a calendar year after 1990 (in this paragraph referred to as a “specified year”) in which the member was, at any time, connected with an employer who participated in the plan in the year for the benefit of the member, the lesser ofthe amount determined by the formula.02 × A × (B / C)whereAis the aggregate of all amounts each of which is the member’s compensation for the specified year from an employer who participated under the provision in the year for the benefit of the member,Bis the greatest of all amounts each of which is the average wage for a calendar year not before the specified year and not after the year of commencement, andCis the average wage for the specified year, andthe amount determined by the formulaD × EwhereDis the defined benefit limit for the year of commencement, andEis the fraction of the specified year that is pensionable service of the member under the provision, andthe amount determined by the formulaF × GwhereFis the lesser of2 per cent of the member’s highest average compensation (computed under subsection (2)) for the purpose of the provision, indexed to the year of commencement, andthe defined benefit limit for the year of commencement, andGis the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision and no part of which is in a specified year; andthe amount of lifetime retirement benefits payable to the member for a particular calendar year after the year in which the lifetime retirement benefits commence to be paid does not exceed the product ofthe aggregate of the amounts determined under subparagraphs (a)(i) and (ii), andthe greatest of all amounts each of which is the ratio ofthe average Consumer Price Index for a calendar year not earlier than the calendar year in which the lifetime retirement benefits commence to be paid and not later than the particular yeartothe average Consumer Price Index for the calendar year in which the lifetime retirement benefits commence to be paid.Highest Average CompensationFor the purposes of subsection (1) and paragraph 8505(3)(d), the highest average compensation of a member of a pension plan for the purpose of a defined benefit provision of the plan, indexed to the calendar year (in this subsection referred to as the “year of commencement”) in which the member’s lifetime retirement benefits under the provision commence to be paid, is,in the case of a member who has been employed for 3 non-overlapping periods of 12 consecutive months each by employers who participated under the provision for the benefit of the member, 1/3 of the greatest of all amounts each of which is the aggregate of the member’s total indexed compensation for the purpose of the provision for each of the 36 months in 3 such periods throughout which the member was so employed, andin any other case, the amount determined by the formula12 × (H / I)whereHis the aggregate of all amounts each of which is the member’s total indexed compensation for the purpose of the provision for a month throughout which the member was employed by an employer who participated under the provision for the benefit of the member, andIis the number of months for which total indexed compensation is included in the amount determined for H,and, for the purposes of this subsection, the member’s total indexed compensation for a month for the purpose of the provision is the amount determined by the formulaJ × (K / L)whereJis the aggregate of all amounts each of which is such portion of the member’s compensation for the calendar year (in this subsection referred to as the “compensation year”) that includes the month from an employer who participated under the provision for the benefit of the member as may reasonably be considered to have been received in the month or to otherwise relate to the month,Kis the greatest of all amounts each of which is the average wage for a calendar year not before the later of the compensation year and 1986 and not after the year of commencement, andLis the average wage for the later of the compensation year and 1986.Predecessor EmployerFor the purposes of subsection (2), if the pensionable service of the member under the provision includes a period throughout which the member was employed by a predecessor employer to an employer who participates in the plan, the predecessor employer is deemed to have participated under the provision for the benefit of the member.Alternative Compensation RulesLifetime retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the conditions in subsection (1) where they would so comply if either or both of the following rules were applicable:determine, for the purpose of subsection (2), the member’s compensation from an employer for a calendar year by adding to the compensation otherwise determined such portion of the amount of each bonus and retroactive increase in remuneration paid by the employer to the member after the year as may reasonably be considered to be in respect of the year and by deducting therefrom such portion of the amount of each bonus and retroactive increase in remuneration paid by the employer to the member in the year as may reasonably be considered to be in respect of a preceding year; anddetermine, for the purpose of computing the amount J in subsection (2), the portion of the member’s compensation from an employer for a calendar year that may reasonably be considered to relate to a month in the year by apportioning the compensation uniformly over the period in the year in respect of which it was paid.Part-time EmployeesWhere the pensionable service of a member under a defined benefit provision of a pension plan includes a period throughout which the member rendered services on a part-time basis to an employer who participates in the plan, the lifetime retirement benefits provided under the provision to the member shall be deemed to comply with the conditions in subsection (1) where they would so comply or be deemed by subsection (3) to so comply iffor the purpose of determining the amount J in subsection (2), the member’s compensation from an employer for a calendar year in which the member rendered services on a part-time basis to the employer were the amount that it is reasonable to expect would have been the member’s compensation for the year from the employer if the member had rendered services to the employer on a full-time basis throughout the period or periods in the year throughout which the member rendered services to the employer, andin determining the amount G in subparagraph (1)(a)(ii), the duration of each period were multiplied by a fraction (not greater than one) that measures the services rendered by the member throughout the period to employers who participate in the plan as a proportion of the services that would have been rendered by the member throughout the period to such employers had the member rendered services on a full-time basis,and, for the purposes of this subsection,where a member of a pension plan has rendered services throughout a period to 2 or more employers who participate in the plan, the employers shall be deemed to be, throughout the period, the same employer, andwhere a period isan eligible period of reduced pay or temporary absence of a member of a pension plan with respect to an employer, ora period of disability of the member,the member shall be deemed to haverendered services throughout the period on a regular basis (having regard to the services rendered by the employee before the period) to the employer or employers by whom the member was employed before the period, andreceived remuneration throughout the period at a rate commensurate with the member’s rate of remuneration before the period.Retirement Benefits before Age 65For the purposes of subparagraph 8502(c)(i), the following conditions are applicable in respect of retirement benefits (other than retirement benefits payable as the result of the death of another member) payable under a defined benefit provision of a pension plan to a member of the plan for the period (in this subsection referred to as the “bridging period”) from the time the benefits commence to be paid to the time the member attains 65 years of age:the amount (expressed on an annualized basis) of retirement benefits payable to the member for that part of the bridging period that is in the calendar year in which the benefits commence to be paid does not exceed the amount determined by the formula(A × B) + (0.25 × C × (D ÷ 35)) + (0.3333 × E × (F ÷ 35))whereAis the defined benefit limit for the calendar year in which the benefits commence to be paid,Bis the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision,Cis the average of the Year’s Maximum Pensionable Earnings for the year in which the benefits commence to be paid and for each of the 2 immediately preceding years,Dis the amount by which the lesser of 35 and the amount determined for B exceeds the amount determined for F,Eisfor years after 2027, the average of the Year’s Additional Maximum Pensionable Earnings for the calendar year in which the benefits commence to be paid and for each of the four immediately preceding years, andfor years prior to 2028, the average of the Year’s Additional Maximum Pensionable Earnings for the year in which the benefits commence to be paid and for each of the immediately preceding years after 2023, andFis the lesser of 35 and the amount determined for B for years after 2023; andthe amount of retirement benefits (expressed on an annualized basis) payable to the member for that part of the bridging period that is in a particular calendar year after the year in which the retirement benefits commence to be paid does not exceed the product ofthe amount determined by the formula set out in paragraph (a), andthe greatest of all amounts each of which is the ratio ofthe average Consumer Price Index for a calendar year not earlier than the calendar year in which the retirement benefits commence to be paid and not later than the particular yeartothe average Consumer Price Index for the calendar year in which the retirement benefits commence to be paid.Pre-1990 BenefitsFor the purposes of subparagraph 8502(c)(i), and subject to subsection (7), the lifetime retirement benefits provided under a defined benefit provision of a pension plan to a member of the plan in respect of pensionable service in a particular calendar year before 1990 (in this subsection referred to as the “benefit year”) are subject to the condition thatthe amount (expressed on an annualized basis) of such lifetime retirement benefits payable to the member for a particular calendar year (in this subsection referred to as the “payment year”)does not exceedthe amount determined by the formula(2 / 3) × A × B × CwhereAis the greater of $1,725 and the defined benefit limit for the year in which the benefits commence to be paid,Bis the aggregate of all amounts each of which is the duration (measured as a fraction of a year) of a period in the benefit year that is pensionable service of the member under the provision, andCis the greatest of all amounts each of which is the ratio ofthe average Consumer Price Index for a calendar year not earlier than the calendar year in which the lifetime retirement benefits commence to be paid and not later than the payment yeartothe average Consumer Price Index for the calendar year in which the lifetime retirement benefits commence to be paid.Limit Not ApplicableThe condition in subsection (6) is not applicable in respect of lifetime retirement benefits provided to an individual in respect of periods of pensionable service in a particular calendar year ifat any time before June 8, 1990, a period in the particular year was pensionable service of the individual under a defined benefit provision of a registered pension plan;on June 7, 1990, the individual was entitled, pursuant to an arrangement in writing, to be provided with lifetime retirement benefits under a defined benefit provision of a registered pension plan in respect of a period in the particular year, whether or not the individual’s entitlement was conditional on the individual making contributions under the provision;at the beginning of the particular year, a period in a preceding year was pensionable service of the individual under a defined benefit provision of a registered pension plan, and the individual did not, by reason of disability or leave of absence, render services in the particular year to an employer who participated in the plan with respect to the individual;contributions were made before June 8, 1990 by or on behalf of the individual under a money purchase provision of a registered pension plan in respect of the year; orcontributions were made in the year by or on behalf of the individual to a deferred profit sharing plan.Cross-plan RestrictionsWhere an individual is provided with benefits under more than one defined benefit provision, the determination of whether the benefits provided to the individual under a particular defined benefit provision comply with the conditions in subsections (5) and (6) shall be made on the assumption that benefits provided to the individual under each other defined benefit provision (other than a provision that is not included in a registered pension plan) associated with the particular provision were provided under the particular provision.Associated Defined Benefit ProvisionsFor the purposes of subsection (8), a defined benefit provision is associated with a particular defined benefit provision ifthe provisions are in the same pension plan, orthe provisions are in separate pension plans andthere is an employer who participates in both plans,an employer who participates in one of the plans does not deal at arm’s length with an employer who participates in the other plan, orthere is an individual who is provided with benefits under both provisions and the individual, or a person with whom the individual does not deal at arm’s length, has the power to determine the benefits that are provided under the particular provision,unless it is unreasonable to expect the benefits under the particular provision to be coordinated with the benefits under the other provision and the Minister has agreed not to treat the other provision as being associated with the particular provision.Excluded BenefitsFor the purpose of determining whether lifetime retirement benefits provided under a defined benefit provision of a pension plan comply with the conditions in subsection (1), the following benefits shall be disregarded:additional lifetime retirement benefits payable to a member because the member is totally and permanently disabled at the time the member’s retirement benefits commence to be paid; andadditional lifetime retirement benefits payable to a member whose retirement benefits commence to be paid after the member attains 65 years of age, where the additional benefits result from an adjustment that is made to offset, in whole or in part, the decrease in the value of lifetime retirement benefits that would otherwise result by reason of the deferral of such benefits after the member attains 65 years of age and the adjustment is not more favourable than such an adjustment made on an actuarially equivalent basis.For the purpose of determining whether retirement benefits provided under a defined benefit provision of a pension plan comply with the conditions in subsection (5), the following benefits shall be disregarded:additional lifetime retirement benefits that are described in paragraph (10)(a); andbridging benefits payable at the election of a member, where the benefits are provided on a basis that is not more favourable than an actuarially equivalent basis in lieu of all or a proportion of the benefits that would otherwise be payable under the provision with respect to the member.For the purpose of determining whether lifetime retirement benefits provided under a defined benefit provision of a pension plan comply with the condition in subsection (6), additional lifetime retirement benefits that are described in paragraph (10)(b) shall be disregarded.Alternative CPI IndexingThe lifetime retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in paragraph (1)(b) where they would so comply, or would be deemed by subsection (3) or (4) to so comply, if the ratio that is determined under subparagraph (1)(b)(ii) were replaced by a substantially similar measure of the change in the Consumer Price Index.The retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in paragraph (5)(b) where they would so comply if the ratio that is determined under subparagraph (5)(b)(ii) were replaced by a substantially similar measure of the change in the Consumer Price Index.The lifetime retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in subsection (6) where they would so comply if the amount C in the formula set out in paragraph (6)(b) were replaced by a substantially similar measure of the change in the Consumer Price Index.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/2001-67, s. 7; 2007, c. 35, s. 84; 2013, c. 34, s. 409SOR/2024-231, s. 28
Additional Benefits on DownsizingDownsizing Program
For the purposes of this section, downsizing program means the actions that are taken by an employer to bring about a reduction in the employer’s workforce, includingthe termination of the employment of employees; andthe payment of amounts and the provision of special benefits to employees who elect to or are required to terminate their employment.Applicability of Downsizing RulesFor the purposes of this section,a downsizing program is an approved downsizing program if the Minister has approved in writing the application of this section in respect of the program;subject to subsection (2.1), an individual is a qualifying individual in relation to an approved downsizing program ifthe employment of the individual is terminated while the downsizing program is in effect,the individual was not, at any time before the termination of employment, connected with the employer from whom the individual terminated employment, andthe Minister has approved in writing the application of this section to the individual; andthe specified day is, in respect of an approved downsizing program,the day that is designated by the Minister in writing for the purpose of subparagraph (3)(c)(ii), andif no such day has been designated, the day that is 2 years after the day on which the Minister approves the application of this section in respect of the downsizing program.Qualifying Individual — ExclusionAn individual whose employment is terminated under an approved downsizing program is not a qualifying individual in relation to the program if, at the time the individual’s employment is terminated, it is reasonable to expect thatthe individual will become employed by, or provide services to,a person or body of persons from whom the individual terminated employment under the downsizing program, ora person or body of persons that does not deal at arm’s length with a person or body of persons referred to in subparagraph (i), ora corporation with which the individual is connected will provide services to a person or body of persons referred to in paragraph (a) and the individual will be directly involved in the provision of the services,except that this subsection does not apply with respect to an individual whereit is reasonable to expect thatthe individual will not be employed or provide services, orif paragraph (b) is applicable, the corporation will not provide services,for a period exceeding 12 months, andthe Minister has waived the application of this subsection with respect to the individual.Additional Lifetime Retirement BenefitsLifetime retirement benefits (in this section referred to as “special retirement benefits”) that do not comply with the condition in paragraph 8503(3)(a) may be provided under a defined benefit provision of a pension plan to a member of the plan who terminates employment after attaining 55 years of age where the following conditions are satisfied:the special retirement benefits are provided pursuant to an approved downsizing program;the member is a qualifying individual in relation to the downsizing program;under the terms of the provision,retirement benefits will not commence to be paid to the member until the member ceases to be employed by all employers who participate in the plan, andretirement benefits will commence to be paid to the member no later than on the specified day;the amount (expressed on an annualized basis) of special retirement benefits payable to the member for a particular calendar year does not exceed the amount that is determined by the formulaA × B × CwhereAis the lesser of2 per cent of the member’s highest average compensation (computed under subsection 8504(2)) for the purpose of the provision, indexed to the calendar year (in this paragraph referred to as the “year of commencement”) in which retirement benefits commence to be paid under the provision to the member, andthe defined benefit limit for the year of commencement,Bis the lesser of 7 and the amount, if any, by which 65 exceeds the member’s age (expressed in years, including any fraction of a year) at termination of employment, andCis the greatest of all amounts each of which is the ratio ofthe average Consumer Price Index for a calendar year not earlier than the year of commencement and not later than the particular yeartothe average Consumer Price Index for the year of commencement;[Repealed, SOR/95-64, s. 12]the plandoes not permit the commutation of retirement benefits payable to the member, orpermits the commutation of retirement benefits payable to the member only if the life expectancy of the member is significantly shorter than normal; andlifetime retirement benefits that are permissible only by reason of this subsection are not provided to the member under any other defined benefit provision, unless this condition has been waived by the Minister.Re-employed MembersWherea member of a pension plan becomes an employee of a participating employer after lifetime retirement benefits that are permissible only by reason of subsection (3) have commenced to be paid under a defined benefit provision of the plan to the member, andpayment of the member’s retirement benefits under the provision is suspended while the member is so employed,the condition in paragraph (3)(d) is applicable in respect of benefits payable under the provision to the member after the suspension as ifthe member had not become so employed, andpayment of the member’s retirement benefits had not been suspended.Early Retirement ReductionWhere a member of a pension plan is a qualifying individual in relation to an approved downsizing program, the terms of a defined benefit provision of the plan that determine the amount by which the member’s lifetime retirement benefits under the provision are reduced because of the early commencement of the benefits may, under the downsizing program, be modified in such a way that the benefits do not comply with the condition in paragraph 8503(3)(c) but would so comply if the member’s benefits were provided in respect of employment in a public safety occupation.Exception for Future BenefitsSubsection (4) does not apply with respect to benefits that are provided to an individual in respect of a period that is after the day on which the individual’s employment was terminated under an approved downsizing program.Alternative CPI IndexingSpecial retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in paragraph (3)(d) where they would so comply if the amount C in that paragraph were replaced by a substantially similar measure of the change in the Consumer Price Index.Exclusion from Maximum Pension RulesFor the purpose of determining whether retirement benefits provided under a defined benefit provision of a pension plan comply with the conditions in subsections 8504(1) and (5), lifetime retirement benefits that are permissible only by reason of subsection (3) shall be disregarded.Exemption from Past Service Contribution RuleSubsection 8503(15) does not apply in respect of a contribution that is made in respect of benefits provided to a qualifying individual pursuant to an approved downsizing program.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/94-686, s. 79(F); SOR/95-64, s. 12
Money Purchase ProvisionsPermissible Benefits
For the purposes of paragraph 8502(c), the following benefits may, subject to the conditions specified in respect of each benefit, be provided under a money purchase provision of a pension plan:Lifetime Retirement Benefitslifetime retirement benefits provided to a member where the benefits are payable in equal periodic amounts or are not so payable only by reason thatthe benefits payable to a member after the death of the member’s spouse or common-law partner are less than the benefits that would be payable to the member were the member’s spouse or common-law partner alive, orthe benefits are adjusted, after they commence to be paid, where those adjustments would be in accordance with any of subparagraphs 146(3)(b)(iii) to (v) of the Act if the annuity by means of which the lifetime retirement benefits are provided were an annuity under a retirement savings plan;Bridging Benefitsbridging benefits provided to a member where the bridging benefits are payable for a period ending no later than the end of the month following the month in which the member attains 65 years of age;Guarantee Periodretirement benefits (in this paragraph referred to as “continued retirement benefits”) provided to one or more beneficiaries of a member who dies after retirement benefits under the provision commence to be paid to the member wherethe continued retirement benefits are payable for a period beginning after the death of the member and ending no later than 15 years after the day on which retirement benefits commence to be paid under the provision to the member, andthe total amount of continued retirement benefits payable under the provision for each month does not exceed the amount of retirement benefits (other than benefits permissible under paragraph (e.1)) that would have been payable under the provision for the month to the member if the member were alive;Post-retirement Survivor Benefits[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-188, s. 17(E)retirement benefits (in this paragraph referred to as “survivor retirement benefits”) provided to a beneficiary of a member who dies after retirement benefits under the provision commence to be paid to the member wherethe beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member at the time the member’s retirement benefits commence to be paid,the survivor retirement benefits are payable for a period beginning after the death of the member and ending with the death of the beneficiary, andthe total amount of survivor retirement benefits and other retirement benefits (other than benefits permissible under paragraph (e.1)) payable under the provision for each month to beneficiaries of the member does not exceed the amount of retirement benefits (other than benefits permissible under paragraph (e.1)) that would have been payable under the provision for the month to the member if the member were alive;Pre-retirement Survivor Benefits[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2001-188, s. 17(E)retirement benefits provided to a beneficiary of a member who dies before retirement benefits under the provision commence to be paid to the member, and benefits provided to other individuals after the death of the beneficiary, wherethe beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member at the time of the member’s death,the benefits would be permissible under paragraphs (a) to (c) if the beneficiary were a member of the plan, andthe retirement benefits are payable to the beneficiary beginning no later than on the later of one year after the day of death of the member and the end of the calendar year in which the beneficiary attains 71 years of age;Variable benefitsretirement benefits (in this paragraph referred to as “variable benefits”), other than benefits permissible under any of paragraphs (a) to (e) and (e.2), provided to a member and, after the death of the member, to one or more beneficiaries of the member ifthe variable benefits are paid from the member’s account,the variable benefits provided to the member or a beneficiary (other than a beneficiary who is the specified beneficiary of the member in relation to the provision) are payable for a period ending no later than the end of the calendar year following the calendar year in which the member dies,the variable benefits provided to a beneficiary who is the specified beneficiary of the member in relation to the provision are payable for a period ending no later than the end of the calendar year in which the specified beneficiary dies, andthe amount of variable benefits payable to the member and beneficiaries of the member for each calendar year is not less than the minimum amount for the member’s account under the provision for the calendar year;Variable Payment Life Annuityretirement benefits (referred to in this paragraph as “VPLA benefits”), other than benefits permissible under any of paragraphs (a) to (e.1), provided to a member and, after the death of the member, to one or more beneficiaries of the member ifthe VPLA benefits are paid from a VPLA fund,the VPLA benefits are provided to the member (or, after the death of the member, to one or more beneficiaries of the member) because of a transfer of one or more amounts from the member’s account to the VPLA fund,each VPLA benefit is any of the following:a benefit described in any of paragraphs (b) to (e) and (i),in the case of the wind-up of the VPLA fund, a payment described in paragraph (h),a retirement benefit that would be described in paragraph (a) if its subparagraph (ii) read as follows:the benefits are adjusted annually, after they commence to be paid, in whole or in part to reflect increases at a rate specified under the terms of the plan not exceeding 2% per annum;the payment of one or more single amounts to a beneficiary after the death of a member, as permitted by the Pension Benefits Standards Act, 1985 or similar law of a province, andthe VPLA benefits are increased or decreased to the extent thatthe following differ from the actuarial assumptions used to determine the VPLA benefits:the amount or rate of return earned by the VPLA fund, orthe rate of mortality of the members and beneficiaries of one or more VPLA funds under the pension plan, orthe mortality-related actuarial assumptions are changed;Payment from Accountthe payment with respect to a member of a single amount from the member’s account under the provision;Payment from Account after Deaththe payment, with respect to one or more beneficiaries of a member, of one or more single amounts from the member’s account under the provision;Commutation of Benefitsthe payment with respect to a member of a single amount in full or partial satisfaction of the member’s entitlement to other benefits under the provision, where the single amount does not exceed the present value (at the time the single amount is paid) of the other benefits that, as a consequence of the payment, cease to be provided; andthe payment, with respect to an individual after the death of a member, of a single amount in full or partial satisfaction of the individual’s entitlement to other benefits under the provision, where the individual is a beneficiary of the member and the single amount does not exceed the present value (at the time the single amount is paid) of the other benefits that, as a consequence of the payment, cease to be provided.Additional ConditionsFor the purposes of section 8501, the following conditions are applicable in respect of each money purchase provision of a pension plan:Employer Contributions Acceptable to Ministerthe amount of contributions that are to be made under the provision by each employer who participates in the plan is determined in a manner acceptable to the Minister;Employer Contributions with respect to Particular Memberseach contribution that is made under the provision by an employer consists only of amounts each of which is an amount that is paid by the employer with respect to a particular member;Allocation of Employer Contributionseach contribution that is made under the provision by an employer is allocated to the member with respect to whom it is made;Employer Contributions Not Permittedcontributions are not made under the provision by an employer, and property is not transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan,at a time when there is a surplus under the provision, orat a time after 1991 when an amount that became a forfeited amount under the provision before 1990, or any earnings of the plan that are reasonably attributable to that amount, is being held in respect of the provision and has not been reallocated to members of the plan;Contributions Not Permittedno contribution is made under the provision with respect to a member, and no amount is transferred for the benefit of a member to the provision from another benefit provision of the plan, at any time after the calendar year in which the member attains 71 years of age, other than an amount that is transferred for the benefit of the member to the provisionin accordance with subsection 146.3(14.1) or 147.3(1) or (4) of the Act, orfrom another benefit provision of the plan, where the amount so transferred would, if the benefit provisions were in separate registered pension plans, be in accordance with subsection 147.3(1) or (4) of the Act;Return of Contributionswhere the plan is not established by an enactment of Canada or a province, it includes a stipulation that permits, for the purpose of avoiding revocation of the registration of the plan, a contribution made under the provision by a member or by an employer to be returned to the person who made the contribution, which stipulation may provide that a return of contributions is subject to the approval of the authority administering the Pension Benefits Standards Act, 1985 or a similar law of a province;Allocation of Earningsthe earnings of the plan, to the extent that they relate to the provision and are not reasonably attributable to forfeited amounts or a surplus under the provision, are allocated to plan members on a reasonable basis and no less frequently than annually;Payment or Reallocation of Forfeited Amountseach forfeited amount under the provision (other than an amount forfeited before 1990) and all earnings of the plan that are reasonably attributable to the forfeited amount arepaid to participating employers,reallocated to members of the plan, orpaid as or on account of administrative, investment or similar expenses incurred in connection with the planon or before December 31 of the year immediately following the calendar year in which the amount is forfeited, or such later time as is permitted by the Minister under subsection (3);Retirement Benefitsretirement benefits (other than benefits permissible under paragraph (1)(e.1) or (e.2)) under the provision are provided by means of annuities that are purchased from a licensed annuities provider;Undue Deferral of Payment — Death of Membereach single amount that is payable after the death of a member (other than a single amount that is payable after the death of the specified beneficiary of the member in relation to the provision) is paid as soon as is practicable after the member’s death; andUndue Deferral of Payment — Death of Specified Beneficiaryeach single amount that is payable after the death of the specified beneficiary of a member in relation to the provision is paid as soon as is practicable after the specified beneficiary’s death.Alternative Method for Allocating Employer ContributionsThe Minister may, on the written application of the administrator of a pension plan, waive the application of the condition in paragraph (2)(b.1) in respect of a money purchase provision of the plan where contributions made under the provision by an employer are allocated to members of the plan in a manner acceptable to the Minister.Reallocation of ForfeituresThe Minister may, on the written application of the administrator of a registered pension plan, extend the time for satisfying the requirements of paragraph (2)(f) wherethe aggregate of the forfeited amounts that arise in a calendar year is greater than normal because of unusual circumstances; andthe forfeited amounts are to be reallocated on a reasonable basis to a majority of plan members or paid as or on account of administrative, investment or similar expenses incurred in connection with the plan.Non-payment of Minimum Amount — Plan RevocableA registered pension plan that contains a money purchase provision becomes, for the purposes of paragraph 147.1(11)(c) of the Act, a revocable plan at the beginning of a calendar year if the total amount of retirement benefits (other than retirement benefits permissible under any of paragraphs (1)(a) to (e)) paid from the plan in the calendar year in respect of a member’s account under the provision is less than the minimum amount for the account for the calendar year.Minimum AmountFor the purposes of paragraph (1)(e.1) and subsection (4), but subject to subsection (7), the minimum amount for a member’s account under a money purchase provision of a registered pension plan for a calendar year is the amount determined by the formulaA x BwhereAis the balance in the account at the beginning of the year; andBisif there is a specified beneficiary of the member for the year in relation to the provision, the factor designated under subsection 7308(4) for the year in respect of the specified beneficiary,if paragraph (a) does not apply for the year, the factor designated under subsection 7308(4) for the year in respect of an individual wherethe individual was, at the time the designation referred to in subparagraph (ii) was made, the member’s spouse or common-law partner,the member had, before the beginning of the year, provided the administrator of the plan with a written designation of the individual for the purpose of this paragraph in relation to the provision, andthe member had not, before the beginning of the year, revoked the designation, andin any other case, the factor designated under subsection 7308(4) for the year in respect of the member.Determination of Account BalanceFor the purpose of the description of A in subsection (5), the balance in a member’s account at the beginning of a calendar year (in this subsection referred to as the “current year”) is to be determined in accordance with the following rules:the determination is to be made in a manner that reasonably reflects the fair market value of the property held in connection with the account at the beginning of the current year, including an estimate of the portion of any unallocated earnings of the plan that arose in the preceding calendar year and that can reasonably be expected to be allocated to the account in the current year; andif retirement benefits (other than benefits permissible under paragraph (1)(e.1)) provided under the provision with respect to the member had commenced to be paid before the current year and continue to be payable in the current year, the determination is to be made without regard to the value of any property held in connection with those benefits.Special Rules for Minimum AmountThe minimum amount for a member’s account under a money purchase provision of a registered pension plan for a calendar year isnil, if an individual who is either the member or the specified beneficiary of the member for the year in relation to the provisionis alive at the beginning of the year, andhad not attained 71 years of age at the end of the preceding calendar year; andif paragraph (a) does not apply and the year is 2008, 75 per cent of the amount that would, in the absence of this subsection, be the minimum amount for the account for the year.The minimum amount for a member’s account under a money purchase provision of a registered pension plan for 2020 is 75% of the amount that would, in the absence of this subsection, be the minimum amount for the account for the year.Specified BeneficiaryIn this section, an individual is the specified beneficiary of a member for a calendar year in relation to a money purchase provision of a registered pension plan ifthe member died before the beginning of the year;the individual is a beneficiary of the member and was, immediately before the member’s death, the member’s spouse or common-law partner; andthe member or the member’s legal representative had, before the beginning of the year, provided the administrator of the plan with a written designation of the individual (and of no other individual) as the specified beneficiary of the member for the calendar year in relation to the provision.Recontribution — Adjusted Minimum Amount for 2008If a contribution made by a member of a registered pension plan and credited to the member’s account under a money purchase provision of the plan complies with the conditions in subsection (10), the contributionis deemed to have been made in accord- ance with the plan as registered;is to be disregarded for the purposes of paragraph (2)(c.1); andis deemed to be an excluded contribution for the purposes of paragraph 8301(4)(a).Conditions Referred to in Subsection (9)The conditions referred to in subsection (9) are as follows:the contribution is made in 2008;the contribution is designated for the purposes of this subsection in a manner acceptable to the Minister; andthe amount of the contribution does not exceed the amount determined by the formulaA – B – CwhereAis the lesser ofthe total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2008 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, andthe amount that would, in the absence of paragraph (7)(b), be the minimum amount for the account for 2008,Bis the minimum amount for the account for 2008, andCis the total of all other contributions made by the member under the money purchase provision at or before the time of the contribution and designated for the purposes of this subsection.Recontribution for 2015If a contribution made by a member of a registered pension plan and credited to the member’s account under a money purchase provision of the plan complies with the conditions in subsection (12), the contributionis deemed to have been made in accordance with the plan as registered;is to be disregarded for the purposes of paragraph (2)(c.1); andis deemed to be an excluded contribution for the purposes of paragraph 8301(4)(a).Conditions Referred to in Subsection (11)The conditions referred to in subsection (11) are as follows:the contribution is made after December 31, 2014 and before March 1, 2016;the contribution is designated for the purposes of this subsection in a manner acceptable to the Minister; andthe amount of the contribution does not exceed the amount determined by the formulaA – B – CwhereAis the lesser ofthe total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2015 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, andthe amount that would be the minimum amount for the account for 2015 if it were determined using the factor designated under subsection 7308(4) as it read on December 31, 2014,Bis the minimum amount for the account for 2015, andCis the total of all other contributions made by the member under the money purchase provision at or before the time of the contribution and designated for the purposes of this subsection.VPLA fundFor the purposes of paragraph (1)(e.2) and clause 8502(e)(i)(C), a VPLA fund under a money purchase provision of a pension plan is an arrangement that meets the following conditions:no amounts are contributed to the arrangement other than amounts that aretransferred from accounts of the members under one or more plans of the participating employer or a related group of participating employers, ortransferred from another VPLA fund under the plan, to the extent that an increase or decrease in VPLA benefits takes into account rates of mortality of the members and beneficiaries of that other VPLA fund;the arrangement has at least 10 members at the time it is established and, at all times after it is established, it is reasonable to expect that the arrangement will have at least 10 members on an ongoing basis; andno benefit may be paid from the arrangement other than retirement benefits described in subparagraph (1)(e.2)(iii).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 13; SOR/99-9, s. 23; SOR/2001-188, ss. 14, 15; SOR/2005-264, s. 28; 2007, c. 29, s. 36; 2009, c. 2, s. 117; 2015, c. 36, s. 242020, c. 5, s. 72021, c. 23, s. 902023, c. 26, s. 111SOR/2024-231, s. 29
Periods of Reduced PayPrescribed Compensation
For the purposes of paragraph (b) of the definition compensation in subsection 147.1(1) of the Act, there is prescribed for inclusion in the compensation of an individual from an employer for a calendar year after 1990where the individual has a qualifying period in the year with respect to the employer, the amount that is determined under subsection (2) in respect of the period; andwhere the individual has a period of disability in the year, the amount that would be determined under paragraph (2)(a) in respect of the period if the period were a qualifying period of the individual with respect to the employer.Additional Compensation in respect of Qualifying PeriodFor the purposes of paragraph (1)(a) and subsection (5), the amount that is determined in respect of a period in a calendar year that is a qualifying period of an individual with respect to an employer is the lesser ofthe amount, if any, by whichthe amount that it is reasonable to consider would have been the remuneration of the individual for the period from the employer if the individual had rendered services to the employer throughout the period on a regular basis (having regard to the services rendered by the individual to the employer before the complete period of reduced pay of which the period is a part) and the individual’s rate of remuneration had been commensurate with the individual’s rate of remuneration before the beginning of the complete period of reduced payexceedsthe remuneration of the individual for the period from the employer, andthe amount determined by the formula(5 + A + B - C) × DwhereAis the lesser of 3 and the amount that would be the cumulative additional compensation fraction of the individual with respect to the employer, determined to the time that is immediately before the end of the period, if the individual’s only qualifying periods had been periods that are also periods of parenting,Bisif no part of the period is a period of parenting, nil, andotherwise, the lesser ofthe amount, if any, by which 3 exceeds the amount determined for A, andthe ratio ofthe amount that would be determined under paragraph (a) if the remuneration referred to in subparagraphs (a)(i) and (ii) were the remuneration for such part of the period as is a period of parentingtothe amount determined for D,Cis the cumulative additional compensation fraction of the individual with respect to the employer, determined to the time that is immediately before the end of the period, andDis the amount that it is reasonable to consider would have been the individual’s remuneration for the year from the employer if the individual had rendered services to the employer on a full-time basis throughout the year and the individual’s rate of remuneration had been commensurate with the individual’s rate of remuneration before the beginning of the complete period of reduced pay of which the period is a part.Qualifying Periods and Periods of ParentingFor the purposes of this section,a period in a calendar year is a qualifying period of an individual in the year with respect to an employer ifthe period is an eligible period of reduced pay or an eligible period of temporary absence of the individual in the year with respect to the employer,eitherlifetime retirement benefits are provided to the individual under a defined benefit provision of a registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) in respect of the period, orcontributions are made by or on behalf of the individual under a money purchase provision of a registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) in respect of the period,pursuant to terms of the plan that apply in respect of periods that are not regular periods of employment,the lifetime retirement benefits or the contributions, as the case may be, exceed the benefits that would otherwise be provided or the contributions that would otherwise be made if the benefits or contributions were based on the services actually rendered by the individual and the remuneration actually received by the individual,the individual’s pension adjustment for the year with respect to the employer includes an amount in respect of the lifetime retirement benefits or the contributions, as the case may be,no benefits are provided in respect of the period to the individual under a defined benefit provision of any registered pension plan in which the employer does not participate,no contributions are made by or on behalf of the individual in respect of the period under a money purchase provision of a registered pension plan or a deferred profit sharing plan in which the employer does not participate, andno part of the period is after the earlier ofthe time at which bridging benefits commence to be paid to the individual in circumstances to which subsection 8503(17) applied, andthe earliest day in respect of which benefits have been provided to the individual in circumstances to which subsection 8503(19) applied; anda period of parenting of an individual is all or a part of a period thatbegins at the time of the birth of a child of whom the individual is a natural parent, or at the time the individual adopts a child, andends 18 months after that time.Cumulative Additional Compensation FractionFor the purposes of this section, the cumulative additional compensation fraction of an individual with respect to an employer, determined to any time, is the aggregate of all amounts each of which is the additional compensation fraction that is associated with a period that ends at or before that time and that is a qualifying period of the individual in a calendar year after 1990 with respect tothe employer;any other employer who does not deal at arm’s length with the employer; orany other employer who participates in a registered pension plan in which the employer participates for the benefit of the individual.Additional Compensation FractionFor the purposes of subsection (4), the additional compensation fraction associated with a qualifying period of an individual in a calendar year with respect to a particular employer is the amount determined by the formulaE / DwhereDis the amount that is determined for D under paragraph (2)(b) in respect of the qualifying period, andEisifall or a part of the qualifying period is a period throughout which the individual renders services to another employer pursuant to an arrangement in respect of which subsection 8308(7) is applicable,the particular employer is a lending employer for the purposes of subsection 8308(7) as it applies in respect of the arrangement, andthe particular employer and the other employer deal with each other at arm’s length,the amount that would be determined under subsection (2) in respect of the qualifying period if, in the determination of the amount under paragraph (2)(a), no remuneration were included in respect of the portion of the qualifying period referred to in subparagraph (a)(i), andotherwise, the amount that is determined under subsection (2) in respect of the qualifying period.Exclusion of SubperiodsA reference in this section to a qualifying period of an individual in a calendar year with respect to an employer or to a period of disability of an individual in a calendar year does not include a period that is part of a longer such period.Complete Period of Reduced PayIn subsection (2), complete period of reduced pay of an individual with respect to an employer means a period that consists of one or more periods each of which isa period of disability of the individual, oran eligible period of reduced pay or an eligible period of temporary absence of the individual with respect to the employer,and that is not part of a longer such period.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 14; 2007, c. 35, s. 85SOR/2024-231, s. 30
Salary Deferral Leave Plan
Where an employee and an employer enter into an arrangement in writing described in paragraph 6801(a) or (b),the period throughout which the employee defers salary or wages pursuant to the arrangement shall be deemed to be an eligible period of reduced pay of the employee with respect to the employer; andfor the purposes of section 8507, the amount that it is reasonable to consider would have been the remuneration of the employee for any period from the employer shall be determined on the basis that the employee’s rate of remuneration was the amount that it is reasonable to consider would, but for the arrangement, have been the employee’s rate of remuneration.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Transition RulesPrescribed Conditions Applicable Before 1992 to Grandfathered Plan
The prescribed conditions for the registration of a grandfathered plan are, before 1992,the condition set out in paragraph 8502(a),the condition set out in paragraph 8502(c), but only in respect of benefits provided under a money purchase provision of the plan, andif the plan contains a money purchase provision, the condition set out in paragraph 8506(2)(a),and the following conditions:the benefits provided under each defined benefit provision of the plan are acceptable to the Minister and, for the purposes of this condition, any benefits in respect of periods before 1991 that become provided after 1988 with respect to a member who is connected with an employer who participates in the plan, or was so connected at any time before the benefits become provided, shall, unless the Minister is notified in writing that the benefits are provided with respect to the member, be deemed to be unacceptable to the Minister, andthe plan contains such terms as may be required by the Minister.Conditions Applicable after 1991 to Benefits under Grandfathered PlanFor the purpose of the condition in paragraph 8502(c) as it applies after 1991 in respect of a grandfathered plan,the condition in subparagraph 8503(2)(b)(ii) is replaced by the condition that the amount of bridging benefits payable to a member for a particular month does not exceed the amount that is determined in respect of the month by the formula(A × C × (E / F)) + (G × (1 - (E / F)))whereAis the amount determined for A under subparagraph 8503(2)(b)(ii) with respect to the member for the month,Cis the amount determined for C under subparagraph 8503(2)(b)(ii) with respect to the member for the month,Eis the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period ending before 1992 that is pensionable service of the member under the provision,Fis the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision, andGis the amount determined with respect to the member for the month by the formula set out in subparagraph 8503(2)(b)(ii);the conditions in paragraphs 8503(3)(c), (h) and (i) and 8504(1)(a) and (b) apply only in respect of lifetime retirement benefits provided in respect of periods after 1991; andfor the purposes of the conditions in paragraphs 8504(1)(a) and (b),the aggregate that is determined under subparagraph 8504(1)(a)(i) does not include an amount in respect of 1991, andthe amount that is determined for G under subparagraph 8504(1)(a)(ii) is based only on periods of pensionable service after 1991.Additional Prescribed Condition for Grandfathered Plan after 1991The prescribed conditions for the registration of a grandfathered plan include, after 1991, the condition that all benefits provided under each defined benefit provision of the plan in respect of periods before 1992 are acceptable to the Minister.Defined Benefits under Grandfathered Plan Exempt from ConditionsThe Minister may, after 1991, exempt from the condition in paragraph 8502(c) the following benefits provided under a defined benefit provision of a grandfathered plan:benefits that are payable after the death of a member, to the extent that the benefits can reasonably be considered to relate to lifetime retirement benefits provided to the member in respect of periods before 1992; andbridging benefits in excess of bridging benefits that are permissible under paragraph 8503(2)(b), to the extent that the excess bridging benefits are vested in a member on December 31, 1991.Benefits under Grandfathered Plan — Pre-1992 DisabilityWhere benefits are provided under a defined benefit provision of a grandfathered plan to a member of the plan as a consequence of the member having become, before 1992, physically or mentally impaired, the following rules apply:the conditions in this Part (other than the condition in paragraph (b)) do not apply in respect of the benefits;the prescribed conditions for the registration of the plan include the condition that the benefits are acceptable to the Minister; andsubsections 147.1(8) and (9) of the Act do not apply to render the plan a revocable plan where those subsections would not so apply if the member’s pension credits under the provision were determined without regard to the benefits.Conditions Not Applicable to Grandfathered PlanWhere a pension plan is a grandfathered plan,the conditions referred to in paragraph 8501(2)(b) do not apply before 1992 in respect of the plan;the condition in paragraph 8502(d) does not apply in respect of distributions that are made before 1992 under a defined benefit provision of the plan; andthe conditions in paragraphs 8503(3)(a) and (b) do not apply in respect of benefits provided under a defined benefit provision of the plan in respect of periods before 1992.PA Limits for Grandfathered Plan for 1991Subsections 147.1(8) and (9) of the Act do not apply in respect of a grandfathered plan for a calendar year before 1992 ifthe plan does not contain a money purchase provision in that year; orno contributions are made in respect of that year under the money purchase provisions of the plan.Limit on Pre-Age 65 BenefitsWhere a pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “June 7, 1990” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “June 8, 1990”,the conditions in paragraphs 8504(5)(a) and (b) apply only in respect of retirement benefits provided in respect of periods after 1991; andthe amounts that are determined for B and D under paragraph 8504(5)(a) are based only on periods of pensionable service after 1991.Benefit Accrual Rate Greater than 2 Per CentWhere a pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “July 31, 1991” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “August 1, 1991”,the condition in paragraph 8503(3)(g) applies only in respect of lifetime retirement benefits provided under a defined benefit provision of the plan in respect of periods after 1994; andsubparagraph 8503(3)(h)(iv) is not applicable in respect of lifetime retirement benefits provided under a defined benefit provision of the plan to a member unless the formula for determining the amount of the member’s lifetime retirement benefits complies with the condition in paragraph 8503(3)(g) as that condition would, but for this subsection, apply.Benefits under Plan other than Grandfathered PlanThe following rules apply in respect of the benefits provided under a defined benefit provision of a pension plan that is not a grandfathered plan:the condition in paragraph 8502(c) does not apply in respect of benefits provided with respect to an individualto whom retirement benefits have commenced to be paid under the provision before 1992, orwho has died before 1992; andthe prescribed conditions for the registration of the plan include the condition that all benefits referred to in paragraph (a) are acceptable to the Minister.Money Purchase Benefits Exempt from ConditionsThe Minister may exempt from the condition in paragraph 8502(c) all or a portion of the benefits provided under a money purchase provision of a pension plan with respect to a member that may reasonably be considered to derive from contributions made before 1992 under a money purchase provision of a registered pension plan.Stipulation Not Required for Pre-1992 PlansThe conditions in paragraphs 8503(4)(c) and 8506(2)(d) do not apply in respect of a pension planthat was a registered pension plan on December 31, 1991,in respect of which an application for registration was made to the Minister before 1992, orthat was established to provide benefits to one or more individuals in lieu of benefits to which the individuals were entitled under another pension plan that is a plan described in paragraph (a) or (b) or this paragraph, whether or not benefits are also provided to other individuals.Benefits Acceptable to MinisterFor greater certainty, where benefits under a defined benefit provision of a pension plan are, by reason of paragraph 8503(3)(e) or subsection (3), subject to the condition that they be acceptable to the Minister, the provisions of this section shall not be considered to limit in any way the requirements that may be imposed by the Minister in respect of the benefits.PA Limits — 1996 to 2002Neither subsection 147.1(8) nor (9) of the Act applies to render a registered pension plan a revocable plan at the end of any calendar year after 1995 and before 2003 solely because a pension adjustment, a total of pension adjustments or a total of pension credits of an individual for the year (each of which is, in this subsection, referred to as a “test amount”) is excessive where the subsection would not apply to render the plan a revocable plan at the end of the year if each test amount were decreased by the lesser ofthe amount, if any, by which the lesser ofthe total of all amounts each of which isa pension credit under a defined benefit provision of a registered pension plan that is included in determining the test amount, ora pension credit under a money purchase provision of a registered pension plan or under a deferred profit sharing plan that is included in determining the test amount and that is taken into account, under paragraph 8302(2)(c), in determining a pension credit referred to in clause (A), and$15,500exceeds the money purchase limit for the year, andthe total of all amounts each of which is a pension credit referred to in clause (a)(i)(A).Maximum Benefits Indexed Before 2005Wherea pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “March 5, 1996” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “March 6, 1996”,under the terms of the plan as they read immediately before March 6, 1996, the plan provided for benefits that are benefits to which a condition in any of subsections 8504(1), (5) and (6) and paragraph 8505(3)(d) applies and, at that time, the benefits complied with the condition, andas a consequence of the change in the defined benefit limit effective March 6, 1996, the benefits would, if this Part were read without reference to this subsection, cease to comply with the condition,the following rules apply:for the purpose of determining at any time after March 5, 1996 and before 1998 whether the benefits comply with the condition, the defined benefit limit for each year after 1995 is deemed to be the amount that it would be if the definition money purchase limit in subsection 147.1(1) of the Act were applied as it read on December 31, 1995, andfor the purpose of determining at any time after 1997 whether the benefits comply with the condition, the defined benefit limit for 1996 and 1997 is deemed to be the amount that it would be if it were determined in accordance with paragraph (d).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 15; SOR/99-9, s. 24; SOR/2005-264, s. 29
Multi-employer Plans and Other Special Plans[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2007-212, s. 7Definition of Multi-employer Plan
The definition multi-employer plan in subsection 8500(1) is applicable for the purposes of subsection 147.1(1) of the Act.Definition of Specified Multi-employer PlanFor the purposes of this Part and subsection 147.1(1) of the Act, specified multi-employer plan in a calendar year means a pension planin respect of which the conditions in subsection (3) are satisfied at the beginning of the year (or at the time in the year when the plan is established, if later),that has, on application by the plan administrator, been designated in writing by the Minister to be a specified multi-employer plan in the year, orthat was, by reason of paragraph (a), a specified multi-employer plan in the immediately preceding calendar year (where that year is after 1989),but does not include a pension plan where the Minister has, before the beginning of the year, given notice by registered mail to the plan administrator that the plan is not a specified multi-employer plan.Qualification as a Specified Multi-employer PlanThe conditions referred to in paragraph (2)(a) are the following:it is reasonable to expect that at no time in the year will more than 95 per cent of the active members of the plan be employed by a single participating employer or by a related group of participating employers;where the year is 1991 or a subsequent year, it is reasonable to expect thatat least 15 employers will contribute to the plan in respect of the year, orat least 10 per cent of the active members of the plan will be employed in the year by more than one participating employer,and, for the purposes of this condition, all employers who are related to each other shall be deemed to be a single employer;each employer participates in the plan pursuant to one or more collective bargaining agreements or participation agreements whose contribution rates and benefits are substantially the same as under the collective bargaining agreements related to the plan;all or substantially all of the employers who participate in the plan are persons, each of whom isnot exempt from tax under Part I of the Act, orexempt from tax under Part I of the Act pursuant to paragraph 149(1)(f) or (l) of the Act and, collectively with its related persons, employs fewer than 100 full-time employees at the time the employer or its predecessor employer became a participating employer;contributions are made by employers in accordance with a negotiated contribution formula that does not provide for any variation in contributions determined by reference to the financial experience of the plan;the contributions that are to be made by each employer in the year are determined, in whole or in part, by reference to the number of hours worked by individual employees of the employer or some other measure that is specific to each employee in respect of whom contributions are made to the plan;the administrator is a board of trustees or similar body that is not controlled by representatives of employers; andthe administrator has the power to determine the benefits to be provided under the plan, whether or not that power is subject to the terms of a collective bargaining agreement.Minister’s NoticeFor the purpose of subsection (2), the Minister may give notice that a plan is not a specified multi-employer plan only if the Minister is satisfied that participating employers will be able to comply with all reporting obligations imposed by Part LXXXIV in respect of the plan if it is not a specified multi-employer plan, andthe notice is given at or after a time when the conditions in subsection (3) are not satisfied in respect of the plan; orthe plan administrator has applied to the Minister for the notice.Special Rules — Multi-employer PlanWhere a pension plan is a multi-employer plan in a calendar year,each member of the plan who is connected at any time in the year with an employer who participates in the plan shall be deemed, for the purposes of applying the conditions in sections 8503 and 8504 in respect of the plan in the year and in each subsequent year, not to be so connected in the year;paragraph 8503(3)(b) shall, in its application in respect of benefits provided under a defined benefit provision of the plan in respect of a period in the year, be read without reference to subparagraph (ii) thereof; andthe condition in paragraph 8503(3)(k) and the rule in subsection 8504(8) shall apply in the year in respect of the plan without regard to benefits provided under any other pension plan.Special Rules — Specified Multi-employer PlanWhere a pension plan is a specified multi-employer plan in a calendar year,a contribution that is made in the year in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees in accordance with the plan as registered shall be deemed, for the purpose of paragraph 8502(b), to be an eligible contribution;subparagraph 8502(c)(i) shall, in its application in the year in respect of the plan, be read as follows:benefits that are in accordance with subsection 8503(2), paragraphs 8503(3)(c), (e) and (g) and subsections 8504(5) and (6)”the conditions in paragraphs 8503(3)(j) and (4)(a) do not apply in the year in respect of the plan; anda payment made in the year under a defined benefit provision of the plan with respect to a member is deemed to comply with the conditions in paragraph 8503(2)(h) (in the case of a payment made in connection with the member’s termination from the plan otherwise than by reason of death) or (j) (in the case of a payment made after the death of the member) where it would comply if paragraph 8503(2)(h) were read as follows:the payment, with respect to a member in connection with the member’s termination from the plan (otherwise than by reason of death), of one or more single amounts wherethe payments are the last payments to be made under the provision with respect to the member, andeach single amount does not exceed the amount that would be the balance in the member’s net contribution account immediately before the time of payment of the single amount if, for each contribution that is a specified contribution, the account were credited at the time of the specified contribution with an additional amount equal to the amount of the specified contribution and, for this purpose, a specified contribution isa contribution included in determining a pension credit of the member under the provision because of paragraph 8301(5)(b), ora contribution made before 1990 in respect of the provision by a participating employer, to the extent that the contribution can reasonably be considered to have been determined by reference to the number of hours worked by the member or some other measure specific to the member;Additional Prescribed ConditionsWhere a pension plan is a specified multi-employer plan in a calendar year, the prescribed conditions for the registration of the plan include, in that year, the following conditions:when employer and member contribution rates under the plan were last established, it was reasonable to expect that, for each calendar year beginning with the year in which the contribution rates were last established,the aggregate of all amounts each of which is the pension credit of an individual for the year with respect to an employer under a benefit provision of the planwould not exceed18 per cent of the aggregate of all amounts each of which is, for an individual and an employer where the pension credit of the individual for the year with respect to the employer under a benefit provision of the plan is greater than nil, the compensation of the individual from the employer for the year,except that this condition does not apply for years before 1992 in the case of a pension plan that is a grandfathered plan;where the plan contains a money purchase provision,the plan terms are such that, if subsection 147.1(9) of the Act were applicable in respect of the plan, the plan would not under any circumstances become a revocable plan at the end of the year pursuant to that subsection, orif the plan terms do not comply with the condition in subparagraph (i), the only circumstances that would result in the plan becoming a revocable plan at the end of the year pursuant to subsection 147.1(9) of the Act, if that subsection were applicable in respect of the plan, are circumstances acceptable to the Minister; andno contributions are madeto the plan with respect to a member at any time after the end of the calendar year in which the member attains 71 years of age, orto a defined benefit provision of the plan with respect to a member during a period (other than a qualifying period, as defined in subsection 8503(16)) in which the member is in receipt of retirement benefits from a defined benefit provision of the plan.Purchase of Additional BenefitsWhere, in the case of a pension plan that is a specified multi-employer plan in a calendar year,the amount of lifetime retirement benefits provided under a defined benefit provision of the plan to each member is determined by reference to the hours of employment of the member with participating employers,the plan permits a member whose actual hours of employment in a period are fewer than a specified number of hours for the period to make contributions to the plan in order to increase, to an amount not exceeding the specified number of hours for the period, the number of hours that are treated under the provision as hours of employment of the member in the period, andthe specified number of hours for a period does not exceed a reasonable measure of the actual hours of employment of members who render services throughout the period on a full-time basis,the condition in paragraph 8503(3)(a) does not apply in respect of such portion of the lifetime retirement benefits provided under the provision to a member as is determined by reference to hours acquired by the member as a consequence of contributions made to the plan in the year by the member, as described in paragraph (b).Special Rules – Member-funded Pension PlansWhere a pension plan (other than a specified multi-employer plan) is a member-funded pension plan for the purposes of Division IX of the Regulation respecting the exemption of certain categories of pension plans from the provisions of the Supplemental Pension Plans Act of Quebec (R.Q., c. R.-15.1, r. 2), as amended from time to time,paragraph 8502(c) shall in its application in respect of the plan be read without reference to subparagraph (iii);the prescribed conditions for the registration of the plan include the following conditions:the plan terms are such that each contribution to be made by a member under a defined benefit provision of the plan would be an eligible contribution under subsection 147.2(2) of the Act ifthe contribution were made by an employer who participates in the plan for the benefit of the member, andthis subsection were read without reference to paragraph (c),unless this condition is waived by the Minister, the plan is maintained pursuant to a collective bargaining agreement,the plan is not, and it is reasonable to expect that the plan will not become, a designated plan, andthe amount of benefits provided to members, the amount of contributions required to be made by members and the entitlement of members’ to benefit from actuarial surplus are determined in a manner that isclearly established in the plan terms, andnot more advantageous for members who, at any time after the plan is established, are specified individuals (within the meaning assigned by subsection 8515(4)) under the plan than for members who are not specified individuals; anda contribution made by an employer to the plan is a prescribed contribution for the purposes of subsection 147.2(2) of the Act ifthe contribution is a current service contribution that would be an eligible contribution under subsection 147.2(2) of the Act if no contributions were prescribed for the purposes of that subsection and if that subsection were read without reference to its subparagraph (d)(ii), andthe recommendation pursuant to which the contribution is made is such that the current service contributions to be made by the employer do not exceed,where the amount of actuarial surplus in respect of the employer is greater than the amount determined under subparagraph 147.2(2)(d)(ii) of the Act, 50% of the current service contribution that would be required to be made by the employer if there were no actuarial surplus under the provisions, andin any other case, the current service contributions that would be required to be made by the employer if there were no actuarial surplus under the provisions.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/2001-67, s. 8; SOR/2007-212, s. 8; 2010, c. 12, s. 242021, c. 23, s. 91SOR/2024-231, s. 31
Conditions Applicable to Amendments
For the purposes of paragraph 147.1(4)(c) of the Act, the following conditions are prescribed in respect of an amendment to a registered pension plan:where the amendment increases the accrued lifetime retirement benefits provided to a member under a defined benefit provision of the plan, the increase is not, in the opinion of the Minister, inconsistent with the conditions in paragraphs 8503(3)(h) and (i); andwhere the plan is a grandfathered plan and the amendment increases the bridging benefits provided to a member under a defined benefit provision of the plan, the member’s bridging benefits, as amended, comply with the condition in subparagraph 8503(2)(b)(ii) that would apply if the plan were not a grandfathered plan.Where an amendment to a registered pension plan provides for the return to a member of all or a part of the contributions made by the member under a defined benefit provision of the plan, the plan becomes a revocable plan at any time that an amount (other than an amount that may be transferred from the plan in accordance with subsection 147.3(6) of the Act) that is payable to the member as a consequence of the amendment is not paid to the member as soon after the amendment as is practicable.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 16
Registration and Amendment
For the purpose of subsection 147.1(2) of the Act, an application for registration of a pension plan shall be made by sending the following documents by registered mail to the Commissioner of Revenue at Ottawa:an application in prescribed form containing prescribed information;certified copies of the plan text and any other documents that contain terms of the plan;certified copies of all trust deeds, insurance contracts and other documents that relate to the funding of benefits under the plan;certified copies of all agreements that relate to the plan; andcertified copies of all resolutions and by-laws that relate to the documents referred to in paragraphs (b) to (d).Where an amendment is made to a registered pension plan, to the arrangement for funding benefits under the plan or to a document that has been filed with the Minister in respect of the plan, within 60 days after the day on which the amendment is made, the plan administrator shall send to the Commissioner of Revenue at Ottawaa prescribed form containing prescribed information; andcertified copies of all documents that relate to the amendment.For the purpose of subsection 147.1(4) of the Act, an application for the acceptance of an amendment to a registered pension plan is made in prescribed manner if the documents that are required by subsection (2) are sent by registered mail to the Commissioner of Revenue at Ottawa.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/2007-116, s. 17
Designated Laws
For the purposes of paragraph 8302(3)(m), subparagraph 8502(c)(iii) and paragraph 8517(5)(f), designated provision of the law of Canada or a province means section 21 of the Pension Benefits Standards Act, 1985 and any provision of a law of a province that is similar to that section.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7SOR/2024-231, s. 32
Prohibited Investments
For the purposes of subparagraph 8502(h)(i) and subject to subsections (2), (2.1) and (3), a prohibited investment in respect of a registered pension plan is a share of the capital stock of, an interest in, or a debt ofan employer who participates in the plan,a person who is connected with an employer who participates in the plan,a member of the plan,a person or partnership that controls, directly or indirectly, in any manner whatever, a person or partnership referred to in paragraph (a) or (b), ora person or partnership that does not deal at arm’s length with a person or partnership referred to in paragraph (a), (b), (c) or (d),or an interest in, or a right to acquire, such a share, interest or debt.A prohibited investment does not includea debt obligation described in paragraph (a) of the definition fully exempt interest in subsection 212(3) of the Act;a share listed on a designated stock exchange;a bond, debenture, note or similar obligation of a corporation any shares of which are listed on a designated stock exchange;an interest in, or a right to acquire, property referred to in paragraph (b) or (c);a mortgage in respect of real property situated in Canada thatwhere this condition has not been waived by the Minister and the amount paid for the mortgage, together with the amount of any indebtedness outstanding at the time the mortgage was acquired under any mortgage or hypothec that ranks equally with or superior to the mortgage, exceeds 75 per cent of the fair market value, at that time, of the real property that is subject to the mortgage, is insured under the National Housing Act or by a corporation that offers its services to the public in Canada as an insurer of mortgages,where the registered pension plan in connection with which the mortgage is held would be a designated plan for the purposes of subsection 8515(5) if subsection 8515(4) were read without reference to paragraph (b) thereof, is administered by an approved lender under the National Housing Act, andbears a rate of interest that would be reasonable in the circumstances if the mortgagor dealt with the mortgagee at arm’s length; orexcept in the case of an individual pension plan, a share of the capital stock of, an interest in, or a debt of a person or partnership that does not deal at arm’s length with a participating employer, if the participating employer’s principal activity is to manage the investments of or provide investment advice toone or more registered pension plans,His Majesty in right of Canada or a province, oran entity described in paragraph 149(1)(c) to (d.4) of the Act.Where a share of the capital stock of, an interest in or a debt of, a person who is connected with a particular employer who participates in a registered pension plan that is a multi-employer plan would, but for this subsection, be a prohibited investment in respect of the plan, the property is not a prohibited investment in respect of the plan ifthe plan contains no money purchase provision other than a money purchase provision under which each member account is credited, on a reasonable basis and no less frequently than annually, an amount based on the income earned, losses incurred and capital gains and capital losses realized, on all of the property held by the plan;at the time the property is acquired by the plan, there are at least 15 employers who participate in the plan and, for this purpose,all employers who are related to each other are deemed to be a single employer, andall the structural units of a trade union, including each local, branch, national and international unit, are deemed to be a single employer;at the time the property is acquired by the plan, no more than 10% of the active members of the plan are employed by the particular employer or by any person related to the particular employer;the property would not be a prohibited investment in respect of the plan if subsection (1) were read without reference to paragraph (1)(b); andimmediately after the time the property is acquired by the plan, the total of all amounts each of which is the cost amount to a person of a property held in connection with the plan that would, but for this subsection, be a prohibited investment in respect of the plan does not exceed 10% of the total of all amounts each of which is the cost amount to a person of a property held in connection with the plan.For the purposes of the conditions set out in paragraphs (2.1)(b) and (c), two corporations that are related to each other solely because they are both controlled by Her Majesty in right of Canada or a province are deemed not to be related to each other.A prohibited investment in respect of a registered pension plan does not include an investment that was acquired by the plan before March 28, 1988.For the purposes of subsection (3), where at any time after March 27, 1988, the principal amount of a bond, debenture, note, mortgage or similar obligation increases as a consequence of the advancement or lending of additional amounts, or the maturity date of such an obligation is extended, the obligation shall, after that time, be deemed to have been issued at that time.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/94-686, ss. 62, 78(F), 79(F); SOR/2001-67, s. 9; 2007, c. 35, s. 86; 2013, c. 34, s. 410SOR/2024-231, s. 33
Special Rules for Designated PlansDesignated Plans
For the purposes of subsections (5) and (9), and subject to subsection (3), a registered pension plan that contains a defined benefit provision is a designated plan throughout a calendar year if the plan is not maintained pursuant to a collective bargaining agreement andthe aggregate of all amounts each of which is a pension credit (as determined under Part LXXXIII) for the year of a specified individual under a defined benefit provision of the planexceeds50 per cent of the aggregate of all amounts each of which is a pension credit (as determined under Part LXXXIII) for the year of an individual under a defined benefit provision of the plan.Designated Plan in Previous YearFor the purposes of subsections (5) and (9), a registered pension plan is a designated plan throughout a particular calendar year after 1990 if the plan was a designated plan at any time in the immediately preceding year, except where the Minister has waived in writing the application of this subsection in respect of the plan.ExceptionsA registered pension plan is not a designated plan in a calendar year pursuant to subsection (1) ifthe plan would not be a designated plan in the year pursuant to that subsection if the reference in paragraph (1)(b) to “50 per cent” were read as a reference to “60 per cent”;the plan was established before the year; andthe amount determined under paragraph (1)(a) in respect of the plan for the immediately preceding year did not exceed the amount determined under paragraph (1)(b).[Repealed, SOR/2011-188, s. 27]If a designated plan has more than nine active members, the Minister may waive the application of any provision of this Part or Part LXXXIII that would otherwise apply to the designated plan because of its status as a designated plan.Specified IndividualsAn individual is a specified individual for the purposes of paragraph (1)(a) in respect of a pension plan and a particular calendar year ifthe individual was connected at any time in the year with an employer who participates in the plan; orthe aggregate of all amounts each of which is the remuneration of the individual for the year from an employer who participates in the plan, or from an employer who does not deal at arm’s length with a participating employer, exceeds 2 1/2 times the Year’s Maximum Pensionable Earnings for the year.Eligible ContributionsFor the purpose of determining whether a contribution that is made by an employer to a registered pension plan at a time when the plan is a designated plan is an eligible contribution under subsection 147.2(2) of the Act, a prescribed condition is thatthe contribution satisfies the condition in subsection (6); orthe contribution would satisfy the condition in subsection (6) ifparagraph (6)(b) and subparagraph (7)(e)(i) were applicable only in respect of retirement benefits that became provided under the plan after 1990,paragraph (6)(c) were applicable only in respect of those benefits payable after the death of a member that relate to retirement benefits that became provided under the plan to the member after 1990, andthe assumption as to the time retirement benefits (other than retirement benefits that became provided after 1990) will commence to be paid is the same for the purposes of the maximum funding valuation as for the purposes of the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act pursuant to which the contribution is made.Funding RestrictionThe condition referred to in subsection (5) is that the contribution would be required to be made for the plan to have sufficient assets to pay benefits under the defined benefit provisions of the plan, as registered, with respect to the employees and former employees of the employer ifrequired contributions were determined on the basis of a maximum funding valuation prepared as of the same effective date as the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act pursuant to which the contribution is made;each defined benefit provision of the plan provided that, with respect to restricted-funding members, retirement benefits are payable monthly in advance;each defined benefit provision of the plan provided that, after retirement benefits commence to be paid with respect to a restricted-funding member, the benefits are adjusted annually by a percentage increase for each year that is one percentage point less than the percentage increase in the Consumer Price Index for the year, in lieu of any cost-of-living adjustments actually provided;each defined benefit provision of the plan provided the following benefits after the death of a restricted-funding member who dies after retirement benefits under the provision have commenced to be paid to the member, in lieu of the benefits actually provided:where the member dies within 5 years after retirement benefits commence to be paid under the provision, the continuation of the retirement benefits for the remainder of the 5 years as if the member were alive, andwhere an individual who is a spouse or common-law partner of the member when retirement benefits commence to be paid under the provision to the member is alive on the later of the day of death of the member and the day that is 5 years after the day on which the member’s retirement benefits commence to be paid, retirement benefits payable to the individual for the duration of the individual’s life, with the amount of the benefits payable for each month equal to 66 2/3 per cent of the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive;where more than one employer participates in the plan, assets and actuarial liabilities were apportioned in a reasonable manner among participating employers with respect to their employees and former employees; andthe rule in paragraph 147.2(2)(d) of the Act that provides for the disregard of a portion of the assets of the plan apportioned to the employer with respect to the employer’s employees and former employees were applicable for the purpose of determining required contributions pursuant to this subsection.Maximum Funding ValuationFor the purposes of subsection (6), a maximum funding valuation is a valuation prepared by an actuary in accordance with the following rules:the projected accrued benefit method is used for the purpose of determining actuarial liabilities and current service costs;the valuation rate of interest is 7.5 per cent per annum;it is assumed thatthe rate of increase in general wages and salaries and in each member’s rate of remuneration will be 5.5 per cent per annum, andthe rate of increase in the Consumer Price Index will be 4 per cent per annum;each assumption made in respect of economic factors other than those referred to in paragraph (c) is consistent with the assumptions in that paragraph;in the case of a restricted-funding member, it is assumed thatretirement benefits will commence to be paid to the member no earlier than the day on which the member attains 65 years of age,the member will survive to the time the member’s retirement benefits commence to be paid,where the member is employed by a participating employer as of the effective date of the valuation, the member will continue in employment until the time the member’s retirement benefits commence to be paid, andwhen the member’s retirement benefits commence to be paid, the member will be married to a person who is the same age as the member;the rate of mortality at each age is equal toin the case of a restricted-funding member, 80 per cent of the average of the rates at that age for males and females in the 1983 Group Annuity Mortality Table, as published in Volume XXXV of the Transactions of the Society of Actuaries, andin the case of any other member, 80 per cent of the rate at that age in the mortality table referred to in subparagraph (i) for individuals of the same sex as the member;it is assumed that where a member has a choice between receiving retirement benefits or a lump sum payment, retirement benefits will be paid to the member; andthe plan’s assets are valued at an amount equal to their fair market value as of the effective date of the valuation.Restricted-Funding MembersFor the purposes of subsections (6) and (7) as they apply in respect of a contribution made to a registered pension plan, a member of the plan is a restricted-funding member if, at the time the maximum funding valuation is prepared,the member has a right, whether absolute or contingent, to receive retirement benefits under a defined benefit provision of the plan and the benefits have not commenced to be paid; orthe payment of retirement benefits under a defined benefit provision of the plan to the member has been suspended.Member ContributionsWherea member of a registered pension plan makes a contribution to the plan to fund benefits that have become provided at a particular time under a defined benefit provision of the plan in respect of periods before that time,the contribution is made at a time when the plan is a designated plan, andthe contribution would not be an eligible contribution under subsection 147.2(2) of the Act if it were made by an employer who participates in the plan on behalf of the member,the plan becomes, for the purposes of paragraph 147.1(11)(c) of the Act, a revocable plan immediately before the time the contribution is made.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 17; SOR/2001-188, s. 14; SOR/2011-188, s. 27
Eligible ContributionsPrescribed Contribution
For the purposes of subsection 147.2(2) of the Act, a contribution described in subsection (2) or (3) is a prescribed contribution.Funding on Termination BasisA contribution that is made by an employer to a registered pension plan is described in this subsection ifthe contribution is made pursuant to a recommendation by an actuary in whose opinion the contribution is required to be made so that, if the plan is terminated immediately after the contribution is made, it will have sufficient assets to pay benefits accrued under the defined benefit provisions of the plan, as registered, to the time the contribution is made;the recommendation is based on an actuarial valuation that complies with the following conditions:the effective date of the valuation is not more than four years before the day on which the contribution is made,all assumptions made for the purposes of the valuation are reasonable at the time the valuation is prepared and at the time the contribution is made,the valuation is prepared in accordance with generally accepted actuarial principles applicable with respect to a valuation prepared on the basis that a plan will be terminated, andwhere more than one employer participates in the plan, assets and actuarial liabilities are apportioned in a reasonable manner among participating employers;the recommendation is approved by the Minister; andat the time the contribution is made, the plan is not a designated plan.Contributions Required by Pension Benefits LegislationA contribution that is made by an employer to a registered pension plan is described in this subsection ifthe contributionis required to be made to comply with the Pension Benefits Standards Act, 1985 or a similar law of a province,is made in respect of benefits under the defined benefit provisions of the plan as registered, andis made pursuant to a recommendation by an actuary;the recommendation is based on an actuarial valuation that complies with the following conditions:the effective date of the valuation is not more than four years before the day on which the contribution is made,all assumptions made for the purposes of the valuation are reasonable at the time the valuation is prepared and at the time the contribution is made, andwhere more than one employer participates in the plan, assets and actuarial liabilities are apportioned in a reasonable manner among participating employers;the recommendation is approved by the Minister; andat the time the contribution is made, the plan is not a designated plan.[Repealed, 2010, c. 12, s. 25][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/95-64, s. 18; SOR/99-9, s. 25; SOR/2003-328, s. 10; 2007, c. 35, s. 87; 2010, c. 12, s. 25
Transfer — Defined Benefit to Money PurchasePrescribed Amount
Subject to subsections (2) to (3.1), for the purpose of applying paragraph 147.3(4)(c) of the Act to the transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan, the prescribed amount is the amount that is determined by the formulaA × BwhereAis the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), andBisthe present value factor that corresponds to the age attained by the individual at the time of the transfer, determined pursuant to the table to this subsection, orwhere the present value factor referred to in paragraph (a) is less than the present value factor that corresponds to the next higher age, the present value factor determined by interpolation between those two factors on the basis of the age (expressed in years, including any fraction of a year) of the individual.TABLEAttained AgePresent Value FactorUnder 509.0509.4519.6529.85310.05410.25510.45610.65710.85811.05911.36011.56111.76212.06312.26412.46512.46612.06711.76811.36911.07010.67110.37210.1739.8749.4759.1768.7778.4788.0797.7807.3817.0826.7836.4846.1855.8865.5875.2884.9894.7904.4914.2923.9933.7943.5953.296 or over3.0
Minimum Prescribed AmountWhere an amount is transferred in full satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan, the prescribed amount for the purposes of paragraph 147.3(4)(c) of the Act in respect of the transfer is the greater of the amount that would, but for this subsection, be the prescribed amount, and the balance, at the time of the transfer, in the individual’s net contribution account (within the meaning assigned by subsection 8503(1)) in relation to the provision.Underfunded PensionSubsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan ifthe individual is an employee or a former employee of an employer (or a predecessor employer of the employer);the employerwas a participating employer under the provision,is the subject of proceedings commenced under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act, andhas ceased making regular contributions under the provision;after the commencement of the proceedings, lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered;the plan is not a designated plan; andthe Minister has approved the application of subsection (3.01) in respect of the transfer.Subsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan ifthe individual is an employee or a former employee of an employer (or a predecessor employer of the employer) that was a participating employer under the provision;lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered;the Minister has approved the application of subsection (3.01) in respect of the transfer; andeitherthe plan is not an individual pension plan and the reduction in the lifetime retirement benefits paid or payable to the individual has been approved under the Pension Benefits Standards Act, 1985 or a similar law of a province, orthe plan is an individual pension plan, the amount transferred from the plan on behalf of the individual is the last payment from the plan to the individual and all the property held in connection with the plan is distributed from the plan on behalf of plan members within 90 days of the transfer.If this subsection applies, the description of A in subsection (1) is to be read as follows in respect of the transfer:Ais the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), but without reference to the benefit reduction referred to in paragraph (3)(c) or (3.001)(b), as the case may be; andIf a particular amount is transferred in full or partial satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan and subsection (3.01) had applied in respect of a transfer (in this subsection referred to as the “initial transfer”) of an amount on behalf of the individual under the provision, for the purpose of paragraph 147.3(4)(c) of the Act the prescribed amount in respect of the transfer of the particular amount is the lesser ofthe particular amount, andthe amount, if any, by which the prescribed amount in respect of the initial transfer exceeds the total of all amounts each of which is the amount of a previous transfer to which this subsection or subsection (3.01) applied in respect of the individual’s entitlement to benefits under the provision.Benefits Provided With Surplus on Plan Wind-upWhere an amount is transferred in full or partial satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan and the benefits include benefits (in this subsection referred to as “ancillary benefits”) that are permissible solely because of subsection 8501(7), the prescribed amount for the purpose of paragraph 147.3(4)(c) of the Act in respect of the transfer is the total ofthe amount that would, but for this subsection, be the prescribed amount, andan amount approved by the Minister not exceeding the lesser ofthe present value (at the time of the transfer) of the ancillary benefits that, as a consequence of the transfer, cease to be provided, andthe total of all amounts each of which is, in respect of a previous transfer from the provision to a money purchase provision of a registered pension plan, a registered retirement savings plan or a registered retirement income fund in full or partial satisfaction of the individual’s entitlement to other benefits under the defined benefit provision, the amount, if any, by whichthe prescribed amount for the purpose of paragraph 147.3(4)(c) of the Act in respect of the previous transferexceedsthe amount of the previous transfer.Amount of Lifetime Retirement Benefits CommutedFor the purposes of subsection (1), and subject to subsection (7), the amount of an individual’s lifetime retirement benefits under a defined benefit provision of a registered pension plan commuted in connection with the transfer of an amount on behalf of the individual in full or partial satisfaction of the individual’s entitlement to benefits under the provision is the aggregate ofwhere retirement benefits have commenced to be paid under the provision to the individual, the amount (expressed on an annualized basis) by which the individual’s lifetime retirement benefits under the provision are reduced as a result of the transfer,where retirement benefits have not commenced to be paid under the provision to the individual, the amount (expressed on an annualized basis) by which the individual’s normalized pension (computed in accordance with subsection (5)) under the provision at the time of the transfer is reduced as a result of the transfer, andwhere, in conjunction with the transfer, any other payment (other than an amount that is transferred in accordance with subsection 147.3(5) of the Act or that is transferred after 1991 in accordance with subsection 147.3(3) of the Act) is made from the plan in partial satisfaction of the individual’s entitlement to benefits under the provision, the amount (expressed on an annualized basis) by whichif paragraph (a) is applicable, the individual’s lifetime retirement benefits under the provision are reduced, andif paragraph (b) is applicable, the individual’s normalized pension (computed in accordance with subsection (5)) under the provision at the time of the payment is reduced,as a result of the payment, except to the extent that such reduction is included in determining, for the purposes of subsection (1), the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer of another amount on behalf of the individual.Normalized PensionsFor the purposes of subsection (4), the normalized pension of an individual under a defined benefit provision of a registered pension plan at a particular time is the amount (expressed on an annualized basis) of lifetime retirement benefits that would be payable under the provision at the particular time iflifetime retirement benefits commenced to be paid to the individual at the particular time;where the individual has not attained 65 years of age before the particular time, the individual attained that age at the particular time;all benefits to which the individual is entitled under the provision were fully vested;where the amount of the individual’s lifetime retirement benefits would otherwise be determined with a reduction computed by reference to the individual’s age, duration of service, or both, or with any other similar reduction, no such reduction were applied;where the amount of the individual’s lifetime retirement benefits depends on the amount of benefits provided under another benefit provision of the plan or under another plan or arrangement, a reasonable estimate were made of those other benefits;where the individual’s lifetime retirement benefits would otherwise include benefits that the plan is required to provide by reason of a designated provision of the law of Canada or a province, or that the plan would be required to provide if each such provision were applicable to the plan with respect to all its members, such benefits were not included; andexcept as otherwise provided by subsection (6), where the amount of the individual’s lifetime retirement benefits depends onthe form of benefits provided with respect to the individual under the provision (whether or not at the option of the individual), includingthe benefits to be provided after the death of the individual,the amount of retirement benefits, other than lifetime retirement benefits, provided to the individual, orthe extent to which the lifetime retirement benefits will be adjusted to reflect changes in the cost of living, orcircumstances that are relevant in determining the form of benefits,the form of benefits and the circumstances were such as to maximize the amount of the individual’s lifetime retirement benefits on commencement of payment.Optional FormsWherethe terms of a defined benefit provision of a registered pension plan permit an individual to elect to receive additional lifetime retirement benefits in lieu of benefits that would, in the absence of the election, be payable after the death of the individual if the individual dies after retirement benefits under the provision commence to be paid to the individual, andthe elections available to the individual include an electionto receive additional lifetime retirement benefits, not exceeding additional benefits determined on an actuarially equivalent basis, in lieu of all or a portion of a guarantee that retirement benefits will be paid for a minimum period of 10 years or less, orto receive additional lifetime retirement benefits in lieu of retirement benefits that would otherwise be payable to a person who is a spouse or common-law partner or former spouse or common-law partner of the individual for a period beginning after the death of the individual and ending with the death of the person, wherethe election may be made only if the life expectancy of the person is significantly shorter than normal and has been so certified in writing by a medical doctor or a nurse practitioner licensed to practise under the laws of a province or of the place where the person resides, andthe additional benefits do not exceed additional benefits determined on an actuarially equivalent basis and on the assumption that the person has a normal life expectancy,paragraph (5)(g) applies as ifthe election described in subparagraph (b)(i) were not available to the individual, andwhere the particular time the normalized pension of the individual is determined under subsection (5) is after 1991, the election described in subparagraph (b)(ii) were not available to the individual.Replacement BenefitsWherean amount is transferred on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision (in this subsection referred to as the “particular provision”) of a registered pension plan,in conjunction with the transfer, benefits become provided to the individual under another defined benefit provision of the plan or under a defined benefit provision of another registered pension plan, andan employer who participated under the particular provision for the benefit of the individual also participates under the other provision for the individual’s benefit,the amount of the individual’s lifetime retirement benefits under the particular provision commuted in connection with the transfer is the amount that would be determined under subsection (4) if the benefits provided under the other provision were provided under the particular provision.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/99-9, s. 26; SOR/2001-188, s. 12; 2011, c. 24, s. 97; 2014, c. 20, s. 36; 2017, c. 33, s. 103
[Repealed, SOR/2005-264, s. 30][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/2005-264, s. 30
Association of Benefits with Time Periods
Where, for the purposes of Part LXXXIII or this Part or subsection 147.1(10) of the Act, it is necessary to associate benefits provided under a defined benefit provision of a pension plan with periods of time, the association shall be made in a manner acceptable to the Minister.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Minister’s Actions
For the purposes of this Part, a waiver, extension of time or other modification of the requirements of this Part granted by the Minister or an approval by the Minister in respect of any matter is not effective unless it is in writing and expressly refers to the requirement that is modified or the matter in respect of which the approval is given.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7
Taxable Capital Employed in Canada
For the purposes of this Part and Part I.3 of the Act,attributed surplus of a non-resident insurer for a taxation year has the meaning assigned by subsection 2400(1); (surplus attribué)Canadian assets of a corporation that is a financial institution (as defined in subsection 181(1) of the Act) at any time in a taxation year means, in respect of the year, the amount, if any, by whichthe total of all amounts each of which is the amount at which an asset of the corporation (which asset is required, or, if the corporation were a bank to which the Bank Act applied, would be required, to be reflected in a return under subsection 223(1) of the Bank Act, as that Act read on May 31, 1992, if that return were prepared on a non-consolidated basis) would be shown on the corporation’s balance sheet at the end of the year if its balance sheet were prepared on a non-consolidated basisexceedsthe investment allowance of the corporation for the year determined under subsection 181.3(4) of the Act; (actif canadien)[Repealed, 2013, c. 33, s. 38]Canadian premiums for a taxation year, in respect of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on a life insurance business, means the total of the insurance corporation’s net premiums for the yearin respect of insurance on property situated in Canada, andin respect of insurance, other than on property, from contracts with persons resident in Canada,and, for the purposes of this definition, net premiums has the same meaning as in subsection 403(2), and subsection 403(3) applies as if the references therein to “province” were read as references to “country”; (primes canadiennes)Canadian reserve liabilities of an insurer as at the end of a taxation year has the meaning assigned by subsection 2400(1); ((passif de réserve canadienne))contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12) of the Act; (marge sur services contractuels)group of insurance contracts of an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de contrats d’assurance)group of reinsurance contracts held by an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de contrats de réassurance)group of segregated fund policies of an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de polices à fonds réservé)permanent establishment has the same meaning as in subsection 400(2); (établissement stable)policyholders’ liabilities of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act; (obligation envers les titulaires de polices)reinsurance contract held amount for a group of reinsurance contracts held by an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act; (montant au titre des contrats de réassurance détenus)total assets of a corporation that is a financial institution (as defined in subsection 181(1) of the Act) at any time in a taxation year means, in respect of that year, the amount, if any, by whichthe total of all amounts each of which is the amount at which an asset of the corporation would be shown on the corporation’s balance sheet at the end of the year if its balance sheet were prepared on a non-consolidated basisexceedsthe investment allowance of the corporation for the year determined under subsection 181.3(4) of the Act; (actif total)total premiums for a taxation year, in respect of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on a life insurance business, means the total of the corporation’s net premiums for the year (as defined in subsection 403(2)) that are included in computing its income under Part I of the Act; (total des primes)total reserve liabilities of an insurer as at the end of a taxation year means the amount determined by the formulaA − A.1 + A.2 + A.3 − (0.9 × B) − (C − (0.9 × D))whereAis the total of the insurer’s liabilities and reserves including liabilities for segregated fund guarantees (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year in respect of insurance policies, as determined for the purposes of the Superintendent of Financial Institutions, if the insurer is required by law to report to the Superintendent of Financial Institutions, or, in any other case, the superintendent of insurance or other similar officer or authority of the province under the laws of which the insurer is incorporated;A.1is the total of all amounts each of which is the amount of an item reported by the insurer as an insurance contract asset as at the end of the year;A.2is the total of all amounts each of which is an amount of funds withheld as at the end of the year by the insurer in respect of the reinsurance of a risk under an insurance policy;A.3is the total of all amounts each which is an amount recoverable as at the end of the year by the insurer under a funds withheld arrangement in respect of the reinsurance of a risk by the insurer under an insurance policy;Bis the total of all amounts each of which is the contractual service margin for a group of insurance contracts (other than a group of segregated fund policies) of the insurer at the end of the year;Cis the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isthe reinsurance contract held amount for the group, if there is no reinsurance contract held amount for the group that is in respect of the reinsurance of an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, andin any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined excluding any portion that is in respect of the reinsurance of an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply; andDis the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that isif no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy. (passif total de réserve)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-298, s. 2; SOR/94-686, ss. 57(F), 79(F); SOR/2000-413, s. 8; 2010, c. 25, s. 86; 2013, c. 33, s. 382022, c. 19, s. 90
For the purpose of determining the taxable capital employed in Canada of a corporation for a taxation year under subsection 181.2(1) of the Act, the prescribed proportion of the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year is the amount determined by the formulaA × (B / C)whereAis the taxable capital (as determined under Part I.3 of the Act) of the corporation for the year,Bis the total of all amounts each of which is the amount, determined in accordance with Part IV (or, in the case of an airline corporation, that would be so determined if the corporation had a permanent establishment in every province and if paragraphs 407(1)(a) and (b) were read without reference to the words “in Canada”), of the corporation’s taxable income earned in the year in a particular province or the amount of its taxable income that would, pursuant to that Part, be earned in the year in a province if all permanent establishments of the corporation in Canada were in a province, andCis the corporation’s taxable income for the year,except that, where the corporation’s taxable income for the year is nil, the corporation shall, for the purposes of this section, be deemed to have a taxable income for the year of $1,000.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-298, s. 2; SOR/94-686, ss. 43(F); 79(F)
For the purposes of paragraph (b) of the definition Canadian surtax payable in subsection 125.3(4) of the Act, the prescribed proportion of the amount determined under section 123.2 of the Act in respect of a corporation for a taxation year is the amount determined by the formulaA × (B / C)whereAis the amount determined under section 123.2 of the Act in respect of the corporation for the year;Biswhere the corporation carried on a life insurance business at any time in the year, the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year, andin any other case, the corporation’s taxable capital employed in Canada (as would be determined under Part I.3 of the Act if that Part were read without reference to paragraphs 181.3(1)(a) and (b) thereof) for the year; andCis the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-298, s. 2; SOR/94-686, s. 79(F)
For the purposes of Part VI of the Act,Canadian assets of a corporation that is a financial institution (as defined in subsection 190(1) of the Act) at any time in a taxation year means, in respect of that year, the amount that would be determined under the definition Canadian assets in section 8600 in respect of the corporation for the year if the reference in that definition to “subsection 181(1)” were read as a reference to “subsection 190(1)” and paragraph (b) of that definition were read as follows:the total determined under section 190.14 of the Act in respect of the corporation’s investments for the year in financial institutions related to it;”;total assets of a corporation that is a financial institution (as defined in subsection 190(1) of the Act) at any time in a taxation year means, in respect of that year, the amount that would be determined under the definition total assets in section 8600 in respect of the corporation for the year if the reference in that definition to “subsection 181(1)” were read as a reference to “subsection 190(1)” and paragraph (b) of that definition were read as follows:the total determined under section 190.14 of the Act in respect of the corporation’s investments for the year in financial institutions related to it;”attributed surplus, Canadian reserve liabilities and total reserve liabilities have the same respective meanings as in section 8600.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-298, s. 2; SOR/94-686, s. 79(F); 2013, c. 33, s. 39(E)
[Repealed, 2013, c. 34, s. 411][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-298, s. 2; SOR/94-686, s. 79(F); SOR/98-571, s. 1; 2001, c. 22, s. 22; 2013, c. 34, s. 411
For the purposes of subclause 181.3(1)(c)(ii)(A)(II) and clause 190.11(b)(i)(B) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time is the total of all amounts each of which is the amount determined in respect of a corporation that is, at the particular time, a foreign insurance subsidiary of the particular corporation, determined by the formulaA − BwhereAis the amount determined by the formulaC + D + (0.9 × E) − (0.9 × F) − GwhereCis the amount of the subsidiary’s long-term debt at the end of the subsidiary’s last taxation year ending at or before the particular time (in this subsection referred to as the “last taxation year”),Dis the total amount at the end of the subsidiary’s last taxation year of the subsidiary’scapital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions),retained earnings,accumulated other comprehensive income,policyholders’ liabilities,contributed surplus, andany other surpluses,Eis total of all amounts each of which is the contractual service margin for a group of insurance contracts of the subsidiary at the end of the subsidiary’s last taxation year other than a group of segregated fund policies,Fis the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the subsidiary at the end of the subsidiary’s last taxation year, that isif no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, andin any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy, andGis the amount of any deficit deducted in computing the subsidiary’s shareholders’ equity at the end of the subsidiary’s last taxation year; andBis the amount determined by the formulaH + IwhereHis the total of all amounts each of which is the carrying value to its owner at the particular time for the taxation year that includes the particular time of a share of the subsidiary’s capital stock or its long-term debt that is owned at the particular time bythe particular corporation,a subsidiary of the particular corporation,a corporationthat is resident in Canada,that carried on a life insurance business in Canada at any time in its taxation year ending at or before the particular time, andthat isa corporation of which the particular corporation is a subsidiary, ora subsidiary of a corporation described in clause (A), ora subsidiary of a corporation described in paragraph (c), andIis the total of all amounts each of which is an amount included under the description of A in respect of any surplus of the subsidiary contributed by a corporation described in paragraphs (a) to (d) of the description of H, other than an amount included under the description of H.For the purposes of subclause 181.3(1)(c)(ii)(A)(III) and clause 190.11(b)(i)(C) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time is the total of all amounts each of which is the amount determined in respect of a corporation that is, at the particular time, a foreign insurance subsidiary of the particular corporation, determined by the formulaA − BwhereAis the amount determined for B in subsection (1) in respect of the subsidiary, andBis the amount determined for A in subsection (1) in respect of the subsidiary.For the purposes of subclause 181.3(1)(c)(ii)(A)(V) and clause 190.11(b)(i)(E) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time means the total of all amounts each of which would be the total reserve liabilities of a foreign insurance subsidiary of the particular corporation as at the end of the subsidiary’s last taxation year ending at or before the particular time if the subsidiary were required by law to report to the Superintendent of Financial Institutions for that year.The definitions in this subsection apply in this section.foreign insurance subsidiary of a particular corporation at any time means a non-resident corporation thatcarried on a life insurance business throughout its last taxation year ending at or before that time,did not carry on a life insurance business in Canada at any time in its last taxation year ending at or before that time, andis at that timea subsidiary of the particular corporation, andnot a subsidiary of any corporation thatis resident in Canada,carried on a life insurance business in Canada at any time in its last taxation year ending at or before that time, andis a subsidiary of the particular corporation. (filiale d’assurance étrangère)subsidiary of a corporation (in this definition referred to as the parent corporation) means a corporation controlled by the parent corporation where shares of each class of the capital stock of the corporation having a fair market value of not less than 75% of the fair market value of all of the issued and outstanding shares of that class belong tothe parent corporation,a corporation that is a subsidiary of the parent corporation, orany combination of corporations each of which is a corporation referred to in paragraph (a) or described in paragraph (b). (filiale)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/96-475, s. 1; SOR/98-571, s. 2; SOR/2000-413, s. 92022, c. 19, s. 91
National Arts Service Organizations
For the purposes of paragraph 149.1(6.4)(d) of the Act, the following conditions are prescribed for a national arts service organization:the organization is an organizationthat is, because of paragraph 149(1)(l) of the Act, exempt from tax under Part I of the Act,that represents, in an official language of Canada, a community of artists from one or more of the following sectors of activity in the arts community, that is, theatre, opera, music, dance, painting, sculpture, drawing, crafts, design, photography, the literary arts, film, sound recording and other audio-visual arts,no part of the income of which may be payable to, or otherwise available for the personal benefit of, any proprietor, member, shareholder, trustee, or settlor of the organization, except where the payment is for services rendered or is an amount to which paragraph 56(1)(n) of the Act applies in respect of the recipient,all of the resources of which are devoted to the activities and objects described in its application for its last designation by the Minister of Canadian Heritage pursuant to paragraph 149.1(6.4)(a) of the Act,more than 50 per cent of the directors, trustees, officers or other officials of which deal with each other at arm’s length, andno more than 50% of the property of which at any time has been contributed or otherwise paid into the organization by one person or members of a group of persons who do not deal with each other at arm’s length and, for the purpose of this subparagraph, a reference to any person or to members of a group does not include a reference to Her Majesty in Right of Canada or a province, a municipality, a registered charity that is not a private foundation or any club, society or association described in paragraph 149(1)(l) of the Act; andthe activities of the organization (which may include collective bargaining on behalf of its sector of activity under the Status of the Artist Act, provided it is not the organization’s primary activity) are confined to one or more ofpromoting one or more art forms,conducting research into one or more art forms,sponsoring arts exhibitions or performances,representing interests of the arts community or a sector thereof (but not of individuals) before governmental, judicial, quasi-judicial or other public bodies,conducting workshops, seminars, training programs and similar development programs relating to the arts for members of the organization, in respect of which the value of benefits received or enjoyed by members of the organization is required by paragraph 56(1)(aa) of the Act to be included in computing the incomes of those members,educating the public about the arts community or the sector represented by the organization,organizing and sponsoring conventions, conferences, competitions and special events relating to the arts community or the sector represented by the organization,conducting arts studies and surveys of interest to members of the organization relating to the arts community or the sector represented by the organization,acting as an information centre by maintaining resource libraries and data bases relating to the arts community or the sector represented by the organization,disseminating information relating to the arts community or the sector represented by the organization, andpaying amounts to which paragraph 56(1)(n) of the Act applies in respect of the recipient and which relate to the arts community or the sector represented by the organization.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 16; SOR/94-686, s. 51(F); SOR/2007-116, s. 18; SOR/2010-93, s. 40; SOR/2011-188, s. 28
Disability-related Modifications and Apparatus
The renovations and alterations that are prescribed for the purposes of paragraph 20(1)(qq) of the Act arethe installation ofan interior or exterior ramp, ora hand-activated electric door opener; anda modification to a bathroom, elevator or doorway to accommodate its use by a person in a wheelchair.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-565, s. 1
The devices and equipment that are prescribed for the purposes of paragraph 20(1)(rr) of the Act arean elevator car position indicator, such as a braille panel or an audio signal, for individuals having a sight impairment;a visual fire alarm indicator, a listening device for group meetings or a telephone device, for individuals having a hearing impairment; anda disability-specific computer software or hardware attachment.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/93-565, s. 1; SOR/95-182, s. 1
Entities Prescribed with Respect to Certain RulesInternational Organizations
For the purposes of subparagraph 110(1)(f)(iii) and paragraph 126(3)(a) of the Act, the following international organizations are prescribed:the United Nations; andeach international organization that is a specialized agency brought into relationship with the United Nations in accordance with Article 63 of the Charter of the United Nations.International Non-governmental OrganizationsFor the purpose of subparagraph 110(1)(f)(iv) of the Act, the following international non-governmental organizations are prescribed:the International Air Transport Association;the Société internationale de télécommunications aéronautiques; andthe World Anti-Doping Agency.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/95-202, s. 1; SOR/2003-83, s. 1; 2013, c. 40, s. 115
[Repealed, 2013, c. 34, s. 412][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2003-83, s. 2; 2013, c. 34, s. 412
COVID-19 Wage and Rent Subsidies[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2020-207, s. 1SOR/2020-284, s. 1
For the purposes of paragraph (f) of the definition eligible entity in subsection 125.7(1) of the Act, the following entities are prescribed:a corporation that meets the following conditions:it is described in paragraph 149(1)(d.5) of the Act,not less than 90% of the shares, or the capital, of the corporation are owned by one or more Aboriginal governments (as defined in subsection 241(10) of the Act) — or similar Indigenous governing bodies — described in paragraph 149(1)(c) of the Act, andit carries on a business;a corporation that meets the following conditions:it is described in paragraph 149(1)(d.6) of the Act,all of the shares (except directors’ qualifying shares), or the capital, of the corporation are owned by one or more ofan Aboriginal government (as defined in subsection 241(10) of the Act) — or a similar Indigenous governing body — described in paragraph 149(1)(c) of the Act, ora corporation described in this paragraph or paragraph (a), andit carries on a business;a partnership, each member of which isan eligible entity, oran Aboriginal government (as defined in subsection 241(10) of the Act) — or a similar Indigenous governing body — described in paragraph 149(1)(c) of the Act;a partnership, in respect of a qualifying period, if throughout the qualifying period it is the case thatA ≤ 0.5BwhereAis the total of all amounts, each of which is the fair market value of an interest in the partnership held — directly or indirectly, through one or more partnerships — by a person or partnership other than an eligible entity, andBis the total fair market value of all interests in the partnership;a person described in paragraph 149(1)(g) or (h) of the Act; anda person or partnership that operates a private school or private college.For the purposes of subsection 125.7(1) of the Act, qualifying tourism or hospitality entity, for a qualifying period, means an eligible entity that meets the following conditions:the entity has a prior year revenue decline greater than or equal to 40%; andthe total of all amounts, each of which is the eligible entity’s qualifying revenue for the prior reference period for any of the first qualifying period to the thirteenth qualifying period (but including only one of the tenth qualifying period or the eleventh qualifying period), was earned primarily from carrying on one or more of the following activities:operating or managing a facility providing short-term lodging, such as a hotel, a motel, a cottage, a bed and breakfast or a youth hostel,preparing and serving meals, snacks and beverages made to order for immediate consumption on or off the premises,such as a restaurant, a food truck, a cafeteria, a caterer, a coffee shop, a food concession, a bar, a pub or a nightclub, andfor greater certainty, not including the operation of a facility primarily engaged in retailing food or beverage products, such as a supermarket or a convenience store,operating a travel agency or as a tour operator, including:acting as an agent for tour operators, transportation companies and short-term lodging establishments in selling travel, tour and accommodation services, orarranging, assembling and marketing tours,organizing, promoting, hosting, supporting or participating in events that meet the artistic or cultural interests of their patrons, including live performances or exhibits intended for public viewing,preserving and exhibiting objects, sites and natural wonders of historical, cultural or educational value, such as the operation of a museum, a historic and heritage site, a zoo, a botanical garden or a nature park,organizing, promoting or supporting scenic and sightseeing tours, such as sightseeing or dinner cruises, steam train excursions, horse-drawn sightseeing rides, air-boat rides, hot-air balloon rides or charter fishing services,providing charter bus services, ifthe buses do not operate on fixed routes and schedules, andthe entire vehicle is rented, rather than individual seats,operating or managing an amusement or theme park, which includesoperating a variety of attractions, such as mechanical rides, water rides, games, shows or theme exhibits, andleasing space on a concession basis for these operations,operating or managing a facility or providing a service that enables patrons to participate in recreational activities,includingfitness and recreational sports centres,downhill and cross-country ski/snowboard areas, and equipment such as ski lifts and tows (including revenues from equipment rental services and ski/snowboard instruction services provided at the area),the operation of docking and storage facilities for pleasure-craft owners, with or without related activities, such as retailing fuel and marine supplies, boat repair and maintenance and rental services,the operation of recreation and amusement facilities and services including establishments primarily engaged in maintaining non-gambling coin-operated amusement devices, in businesses operated by others, andother amusement activities, such as amateur sports clubs, teams or leagues, archery or shooting, ballroom dancing, river rafting, curling clubs, mini golf and bowling, andexcludinggolf, golf instruction and the ownership or operation of a facility that is a golf course, a golf driving range, or a golf clubhouse,country clubs, andprofessional sports clubs, teams or leagues or facilities used primarily by such organizations,operating or managing serviced or unserviced sites to accommodate campers and their equipment for tents, tent trailers, travel trailers and recreational vehicles, excluding mobile home sites,operating or managing an overnight recreational camp, such as a children’s camp, a family vacation camp or an outdoor adventure retreat,operating or managing a hunting camp or a fishing camp,operating or managing a duty-free retail store at a land border crossing where the only exit route is to the United States,operating or managing a facility that is primarily engaged in exhibiting motion pictures, such as a cinema or a drive-in theatre,operating or managing an amusement arcade, such as a family fun centre, an indoor play area, a pinball arcade or a video game arcade,operating a facility allowing passengers to board and leave a cruise ship,operating or managing an airport, including renting hangar space and providing baggage handling, cargo handling and aircraft parking services,operating or managing a casino,promoting a destination or region in Canada for the purpose of attracting tourism,organizing, planning, promoting, hosting or supporting:conventions, trade shows or festivals, orweddings, parties or similar events, andpromoting the interests of the members of an industry organization or association, if the members are primarily engaged in activities described in any of subparagraphs (i) to (xx).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2020-107, s. 12021, c. 26, s. 2
DefinitionsThe following definitions apply in this section.partial public health restriction means a public health restriction as defined in subsection 125.7(1) of the Act if paragraphs (f) to (h) of that definition were replaced by the following:as a result of the order or decision, some or all of the activities of the eligible entity — or the specified tenant — at, or in connection with, the qualifying property (that it is reasonable to expect the eligible entity — or the specified tenant — would, absent the order or decision, otherwise have engaged in) are required to be reduced by means of capacity or similar restrictions by not less than 50% (referred to in this subsection as the “limited activities”); andthe limited activities are required to be reduced for a period of at least one week. (restrictions sanitaires partielles)qualifying partial public health restriction, of an eligible entity for a qualifying period, means thatone or more qualifying properties of the eligible entity — or of one or more specified tenants (within the meaning of the definition public health restriction) of the eligible entity — is subject to a partial public health restriction for at least seven days in the qualifying period; andit is reasonable to conclude that at least approximately 50% of the qualifying revenues of the eligible entity — together with the qualifying revenues of any specified tenants of the eligible entity — for the prior reference period were derived from the limited activities. (restrictions sanitaires partielles admissibles)The amount determined by regulation in respect of a qualifying entity for the purposes of clause (b)(iv)(B) of the description of A in subsection 125.7(2) of the Act for a week in a qualifying period isfor the seventh qualifying period and the eighth qualifying period, the greater ofthe amount determined for the week under subparagraph (a)(i) of the description of A in subsection 125.7(2) of the Act, andthe amount determined for the week under subparagraph (a)(ii) of the description of A in subsection 125.7(2) of the Act;for the ninth qualifying period and the tenth qualifying period, the greater of$500, andthe lesser of55% of baseline remuneration (as defined in subsection 125.7(1) of the Act) in respect of the eligible employee determined for that week, and$573;for any of the eleventh qualifying period to the nineteenth qualifying period, the greater of$500, andthe lesser of55% of baseline remuneration (as defined in subsection 125.7(1) of the Act) in respect of the eligible employee determined for that week, and$595; andfor the twentieth qualifying period and any subsequent qualifying period, nil.Base percentageThe percentage determined for the purposes of the definition base percentage in subsection 125.7(1) of the Act, in respect of an eligible entity, is, for the twenty-fourth qualifying period to the twenty-sixth qualifying period, the greater ofthe percentage determined for the eligible entity for the qualifying period under paragraph (l) of the definition base percentage in subsection 125.7(1) of the Act if it were read without the application of this subsection, andthe lesser of 75% and the eligible entity’s revenue reduction percentage for the qualifying period, if, for the qualifying period,the eligible entity’s revenue reduction percentage is greater than or equal to 25%, andone of the following conditions is met:the eligible entity is subject to a qualifying public health restriction, orthe eligible entity is subject to a qualifying partial public health restriction.[Repealed, 2021, c. 26, s. 3][Repealed, 2021, c. 26, s. 3][Repealed, 2021, c. 26, s. 3][Repealed, 2021, c. 26, s. 3][Repealed, 2021, c. 26, s. 3][Repealed, 2021, c. 26, s. 4][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2020, c. 11, s. 4SOR/2020-160, s. 1SOR/2020-207, s. 2SOR/2020-227, s. 1SOR/2020-243, s. 1SOR/2020-284, s. 22021, c. 23, s. 922021, c. 26, s. 32021, c. 26, s. 4SOR/2021-56, s. 1SOR/2021-206, s. 1SOR/2021-240, s. 1SOR/2022-11, s. 1SOR/2022-68, s. 1
Financial Institutions — Prescribed Entities and PropertiesPrescribed Person not a Financial Institution
For the purposes of paragraph (e) of the definition financial institution in subsection 142.2(1) of the Act, the following are prescribed persons:the Business Development Bank of Canada;Farm Credit Canada;BDC Capital Inc.; anda trust, at any particular time, if at that particular timethe trust is a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a) of the Act),the trust is deemed, under paragraph 138.1(1)(a) of the Act, to have been created at a time that is not more than two years before that particular time, andthe cost of the trustee’s interest (as determined by paragraph 138.1(1)(c) and (d) of the Act) in the trust does not exceed $5,000,000.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 118; 2014, c. 20, s. 37SOR/2024-231, s. 34
Prescribed Property not Mark-to-Market Property
In this section, qualified small business corporation, at any time, means a corporation in respect of which the following conditions are satisfied at that time:the corporation is a Canadian-controlled private corporation;the corporation either is an eligible corporation (as defined in subsection 5100(1)) or would be an eligible corporation if the definition eligible corporation in subsection 5100(1) were read without reference to its paragraph (e);the carrying value of the total assets of the corporation and all corporations related to it (determined in accordance with generally accepted accounting principles on a consolidated or combined basis, where applicable) does not exceed $50,000,000; andthe number of employees of the corporation and all corporations related to it does not exceed 500.For the purpose of paragraph (e) of the definition excluded property in subsection 142.2(1) of the Act, a share of the capital stock of a corporation is a prescribed property of a taxpayer ifimmediately after the time at which the taxpayer acquired the share, the corporation was a qualified small business corporation, andthe corporation continued to be a qualified small business corporation for one year after that time, orthe taxpayer could not reasonably expect at that time that the corporation would cease to be a qualified small business corporation within one year after that time; orthe share was issued to the taxpayer in exchange for one or more shares of the capital stock of the corporation that were, at the time of the exchange, prescribed property of the taxpayer under this subsection.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 118
Prescribed Property not Mark-to-Market Property
For the purposes of paragraph (e) of the definition excluded property in subsection 142.2(1) of the Act, and of subparagraph 142.6(4)(a)(ii) of the Act, a debt obligation held by a bank is a prescribed property of the bank if the obligation isan exposure to a designated country (within the meaning assigned by section 8006);a United Mexican States Collateralized Par Bond due 2019; ora United Mexican States Collateralized Discount Bond due 2019.For the purpose of paragraph (e) of the definition excluded property in subsection 142.2(1) of the Act, a share is a prescribed property of a taxpayer for a taxation year ifthe share is a lending asset of the taxpayer in the year; orthe share was, immediately after its issuance, a share described in paragraph (e) of the definition term preferred share in subsection 248(1) of the Act, and the share would, at any time in the year, be a term preferred share ifthat definition were read without ref- erence to the portion following paragraph (b), andwhere the share was issued or acquired on or before June 28, 1982, it were issued or acquired after that day.For the purpose of paragraph (e) of the definition excluded property in subsection 142.2(1) of the Act, a share of the capital stock of a corporation that is held by a credit union is a prescribed property of the credit union for a taxation year if, throughout the period (referred to in this subsection as the “holding period”) in that taxation year during which the credit union holds the sharethe corporation is a credit union; orthe following conditions are satisfied:credit unions hold shares of the corporation thatgive those credit unions at least 50% of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation, andhave a fair market value of at least 50% of the fair market value of all the issued shares of the corporation,the corporation is not controlled, directly or indirectly in any manner whatever, by any person that is not a credit union, andthe corporation would not be controlled by a person that is not a credit union if each share of the corporation that is not owned at any time in the holding period by a credit union were owned, at that time, by the person.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 118
Prescribed Payment Card Corporation Share not Mark-to-Market Property
For the purpose of paragraph (b) of the definition excluded property in subsection 142.2(1) of the Act, a prescribed payment card corporation share of a taxpayer at any time means a share of the capital stock of a particular corporation if, at that time,the particular corporation is any one of the followingMasterCard International Incorporated,MasterCard Incorporated,Visa Inc., orInterac Corp.; andthe shareis of a class of shares that is not listed on a stock exchange,is not convertible into or exchangeable for a share of the class of the capital stock of a corporation that is listed on a stock exchange, andwas issued by the particular corporation to the taxpayer or to a person related to the taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 118SOR/2024-231, s. 35
[Repealed, 2009, c. 2, s. 118][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 118
Significant Interest in a Corporation
For the purpose of paragraph 142.2(3)(c) of the Act, a share described in paragraph 9002(2)(b) is prescribed in respect of all taxpayers.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 118
Financing Arrangement not a Specified Debt Obligation
For the purpose of paragraph (c) of the definition specified debt obligation in subsection 142.2(1) of the Act, a property is a prescribed property throughout a taxation year ifthe property is a direct financing lease, or any other financing arrangement, of a taxpayer that is reported as a loan in the taxpayer’s financial statements for the year prepared in accordance with generally accepted accounting principles; andin computing the taxpayer’s income for the year, an amount is deductible under paragraph 20(1)(a) of the Act in respect of the property that is the subject of the arrangement.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-91, s. 8; 2009, c. 2, s. 118
Prescribed Non-reporting Financial Institution
For the purposes of the definition non-reporting financial institution in subsection 270(1) of the Act, the following entities are prescribed:a labour-sponsored venture capital corporation as prescribed in section 6701;a registered retirement savings plan;a registered retirement income fund;a pooled registered pension plan;a deferred profit sharing plan;a registered disability savings plan;a registered education savings plan;a registered pension plan;a trust governed by a registered pension plan;a trust described in paragraph 149(1)(o.4) of the Act, if all of the interests in the trust as a beneficiary are held by one or more registered pension plans;a corporation described in clause 149(1)(o.1)(i)(A) or subparagraph 149(1)(o.1)(ii) or (o.2)(i) of the Act;a corporation described in any of subparagraphs 149(1)(o.2)(ii) to (iii) of the Act, if all of the shares of the corporation are held byone or more registered pension plans or trusts governed by registered pension plans,one or more trusts described in paragraph (j), orone or more corporations described in this paragraph or paragraph (k);a trust, if all of the interests in the trust as a beneficiary are held by one or more plans, trusts or corporations described in paragraph (i), (k) or (l);a central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act and whose accounts are maintained for member financial institutions;a TFSA; anda FHSA.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2016, c. 12, s. 832024, c. 15, s. 84
Prescribed Excluded Accounts
For the purposes of the definition excluded account in subsection 270(1) of the Act, the following accounts are prescribed:a registered retirement savings plan;a registered retirement income fund;a pooled registered pension plans;a registered pension plan;a registered disability savings plan;a registered education savings plan;a deferred profit sharing plan;a net income stabilization account, including a NISA Fund No. 2;an eligible funeral arrangement;a dormant account if the balance or value of the account does not exceed 1,000 USD;a TFSA; anda FHSA.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2016, c. 12, s. 832024, c. 15, s. 85
Financial Institutions — Income from Specified Debt ObligationsInterpretation
DefinitionsThe following definitions apply in this Part.fixed payment obligation, of a taxpayer, means a specified debt obligation under whichthe amount and timing of each payment (other than a fee or similar payment or an amount payable because of a default by the debtor) to be made by the debtor were fixed when the taxpayer acquired the obligation and have not been changed; andall payments are to be made in the same currency. (titre à paiements fixes)primary currency, of a specified debt obligation, meansthe currency with which the obligation is primarily connected; andif there is no such currency, Canadian currency. (monnaie principale)tax basis, of a specified debt obligation at any time to a taxpayer, has the meaning assigned by subsection 142.4(1) of the Act. (montant de base)total return, of a taxpayer from a fixed payment obligation, means the amount, measured in the primary currency of the obligation, by whichthe total of all amounts each of which is the amount of a payment (other than a fee or similar payment) required to be made by the debtor under the obligation after its acquisition by the taxpayerexceedsthe cost to the taxpayer of the obligation. (rendement total)[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
Prescribed Inclusions and Deductions
InclusionFor the purpose of paragraph 142.3(1)(a) of the Act, where a taxpayer holds a specified debt obligation at any time in a taxation year, the amount prescribed in respect of the obligation for the year is the total ofthe taxpayer’s accrued return from the obligation for the year,if the taxpayer’s accrual adjustment determined under section 9102 in respect of the obligation for the year is greater than nil, the amount of the adjustment, andif a foreign exchange adjustment is determined under section 9104 in respect of the obligation for the year and is greater than nil, the amount of the adjustment.DeductionFor the purpose of paragraph 142.3(1)(b) of the Act, where a taxpayer holds a specified debt obligation at any time in a taxation year, the amount prescribed in respect of the obligation is the total ofif the taxpayer’s accrual adjustment determined under section 9102 in respect of the obligation for the year is less than nil, the absolute value of the amount of the adjustment, andif a foreign exchange adjustment is determined under section 9104 in respect of the obligation for the year and is less than nil, the absolute value of the amount of the adjustment.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
General Accrual Rules
Fixed payment obligation not in defaultFor the purpose of paragraph 9101(1)(a), a taxpayer’s accrued return for a taxation year from a fixed payment obligation, under which each payment required to be made before the end of the year was made by the debtor when it was required to be made, shall be determined in accordance with the following rules:determine, in the primary currency of the obligation, the portion of the taxpayer’s total return from the obligation that is allocated to each day in the year usingthe level-yield method described in subsection (2), orany other reasonable method that is substantially similar to the level-yield method;if the primary currency of the obligation is not Canadian currency, translate to Canadian currency the amount allocated to each day in the year, using a reasonable method of translation; anddetermine the total of all amounts each of which is the Canadian currency amount allocated to a day, in the year, at the beginning of which the taxpayer holds the obligation.Level-yield methodFor the purpose of subsection (1), the level-yield method for allocating a taxpayer’s total return from a fixed payment obligation is the method that allocates, to each particular day in the period that begins on the day following the day on which the taxpayer acquired the obligation and that ends on the day on which the obligation matures, the amount determined by the formula(A + B - C) × DwhereAis the cost of the obligation to the taxpayer (expressed in the primary currency of the obligation);Bis the total of all amounts each of which is the portion of the taxpayer’s total return from the obligation that is allocated to a day before the particular day;Cis the total of all payments required to be made under the obligation after it was acquired by the taxpayer and before the particular day; andDis the rate of interest per day that, if used in computing the present value (as of the end of the day on which the taxpayer acquired the obligation and based on daily compounding) of all payments to be made under the obligation after it was acquired by the taxpayer, produces a present value equal to the cost to the taxpayer of the obligation (expressed in the primary currency of the obligation).Other specified debt obligationsFor the purpose of paragraph 9101(1)(a), a taxpayer’s accrued return for a taxation year from a specified debt obligation, other than an obligation to which subsection (1) applies, shall be determinedusing a reasonable method that,taking into account the extent to which the obligation differs from fixed payment obligations, is consistent with the principles implicit in the methods that can be used under subsection (1) for fixed payment obligations, andis in accordance with generally accepted accounting practice for the measurement of profit from debt obligations; andon the basis of reasonable assumptions with respect to the timing and amount of any payments to be made by the debtor under the obligation that are not fixed in their timing or amount (expressed in the primary currency of the obligation).Accrual adjustment nilFor the purposes of paragraphs 9101(1)(b) and (2)(a), if subsection 142.3(1) of the Act applies to a taxpayer for a particular taxation year in respect of a specified debt obligation and either the subsection did not apply in respect of the obligation for the taxpayer’s immediately preceding taxation year or the taxpayer did not own the obligation at the end of that immediately preceding taxation year, the taxpayer’s accrual adjustment in respect of the obligation for the particular taxation year is nil.Accrual adjustmentFor the purposes of paragraphs 9101(1)(b) and (2)(a), if subsection (4) does not apply to determine a taxpayer’s accrual adjustment in respect of a specified debt obligation for a particular taxation year, the taxpayer’s accrual adjustment is the positive or negative amount determined by the formulaA - BwhereAis the total of all amounts each of which is the amount that would be the taxpayer’s accrued return from the obligation for a taxation year, before the particular taxation year, for which subsection 142.3(1) of the Act applied to the taxpayer in respect of the obligation if the accrued return were redetermined on the basis ofthe information available at the end of the particular taxation year, andthe assumptions, if any, with respect to the timing and amount of payments to be made under the obligation after the particular taxation year that were used for the purpose of determining the taxpayer’s accrued return from the obligation for the particular taxation year; andBis the total ofthe amount included under paragraph 9101(1)(a) as the taxpayer’s accrued return from the obligation for the taxation year immediately preceding the particular taxation year, andif the taxpayer’s accrual adjustment in respect of the obligation for that immediately preceding taxation year was determined under this subsection, the value of A for the purpose of determining that accrual adjustment.Special cases and transitionThe rules in this section for determining accrued returns and accrual adjustments are subject to section 9103.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
Accrual Rules — Special Cases and Transition
Convertible obligationFor the purposes of section 9102, if the terms of a specified debt obligation of a taxpayer give the taxpayer the right to exchange the obligation for shares of the debtor or of a corporation related to the debtorsubject to paragraph (b), the right shall be disregarded (whether it has been exercised or not); andif 5% or more of the cost of the obligation to the taxpayer is attributable to the right, the cost is deemed to equal the amount by which the cost exceeds the portion of the cost attributable to the right.[Repealed, SOR/2009-222, s. 7]Amendment of obligationIf the terms of a specified debt obligation of a taxpayer are amended at any time in a taxation year of the taxpayer to change the timing or amount of any payment to be made, at or after that time, under the obligation, the taxpayer’s accrued returns for the taxation year and for each subsequent taxation year are to be redetermined under section 9102 using a reasonable method that fully gives effect, in those accrued returns, to the alteration to the payments under the obligation.Obligations acquired before financial institution rules applyIf a taxpayer held a specified debt obligation at the beginning of the taxpayer’s first taxation year (in this subsection referred to as the “initial year”) for which subsection 142.3(1) of the Act applied to the taxpayer in respect of the obligation, the following rules apply:the taxpayer’s accrued return from the obligation for the initial year or a subsequent taxation year shall not include an amount to the extent that the amount was included in computing the taxpayer’s income for a taxation year preceding the initial year; andif interest on the obligation in respect of a period before the initial year becomes receivable or is received by the taxpayer in a particular taxation year that is the initial year or a subsequent taxation year, and all or part of the interest would not, but for this paragraph, be included in computing the taxpayer’s income for any taxation year, there shall be included in determining the taxpayer’s accrued return from the obligation for the particular taxation year the amount, if any, by whichthe portion of the interest that would not otherwise be included in computing the taxpayer’s income for any taxation yearexceedsthe portion of the cost of the obligation to the taxpayer that is reasonably attributable to that portion of the interest.Prepaid interest — transition ruleIf, before November 1994 and in a taxation year that ended after February 22, 1994, a taxpayer received an amount under a specified debt obligation in satisfaction, in whole or in part, of the debtor’s obligation to pay interest in respect of a period after the taxation year,the amount may, at the election of the taxpayer, be included in determining the taxpayer’s accrued return for the taxation year from the obligation; andif the amount is so included, the taxpayer’s accrued returns for subsequent taxation years from the obligation shall not include any amount in respect of interest that, because of the payment of the amount, the debtor is no longer required to pay.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
Foreign Exchange Adjustment
Obligations held at end of taxation yearFor the purposes of paragraphs 9101(1)(c) and (2)(b), if, at the end of a taxation year, a taxpayer holds a specified debt obligation the primary currency of which is not Canadian currency, the taxpayer’s foreign exchange adjustment in respect of the obligation for the taxation year is the positive or negative amount determined by the formula(A × B) - CwhereAis the amount that would be the tax basis of the obligation to the taxpayer at the end of the year ifthe tax basis were determined using the primary currency of the obligation as the currency in which all amounts are expressed,the definition tax basis in subsection 142.4(1) of the Act were read without reference to paragraphs (f), (h), (o) and (q), andthe taxpayer’s foreign exchange adjustment in respect of the obligation for each year were nil;Bis the rate of exchange at the end of the year of the primary currency of the obligation into Canadian currency; andCis the amount that would be the tax basis of the obligation to the taxpayer at the end of the year ifthe definition tax basis in subsection 142.4(1) of the Act were read without reference to paragraphs (h) and (q), andthe taxpayer’s foreign exchange adjustment in respect of the obligation for the year were nil.Disposition of obligationIf a taxpayer disposes of a specified debt obligation the primary currency of which is not Canadian currency, the taxpayer’s foreign exchange adjustment in respect of the obligation for the taxation year in which the disposition occurs is the amount that would be the foreign exchange adjustment if the taxation year had ended immediately before the disposition.Disposition of obligation before 1996At the election of a taxpayer, subsection (2) does not apply to specified debt obligations disposed of by the taxpayer before 1996.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
Financial Institutions — Disposition of Specified Debt ObligationsInterpretation
DefinitionsThe following definitions apply in this Part.gain, of a taxpayer from the disposition of a specified debt obligation, means the gain from the disposition determined under paragraph 142.4(6)(a) of the Act. (gain)loss, of a taxpayer from the disposition of a specified debt obligation, means the loss from the disposition determined under paragraph 142.4(6)(b) of the Act. (perte)residual portion, of a taxpayer’s gain or loss from the disposition of a specified debt obligation, means the amount determined under subsection 142.4(8) of the Act in respect of the disposition. (partie résiduelle)Amortization dateFor the purposes of this Part, the amortization date for a specified debt obligation disposed of by a taxpayer is the day determined as follows:subject to paragraphs (b) to (d), the amortization date is the later of the day of disposition and the day on which the debtor is required to make the final payment under the obligation, determined without regard to any option respecting the timing of payments under the obligation (other than an option that was exercised before the disposition);subject to paragraphs (c) and (d), the amortization date is the day of disposition if the day on which the debtor is required to make the final payment under the obligation is not determinable for the purpose of paragraph (a);subject to paragraph (d), the amortization date is the first day, if any, after the disposition on which the interest rate could change, if the obligation is one in respect of which the following conditions are satisfied:the obligation provides for stipulated interest payments,the rate of interest for one or more periods after the issuance of the obligation was not fixed on the day of issue, andwhen the obligation was issued, it was reasonable to expect that the interest rate for each period would equal or approximate a reasonable market rate of interest for that period; andif, for purposes of its financial statements, the taxpayer had a gain or loss from the disposition that is being amortized to profit, the amortization date is the last day of the amortization period.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
Transition amountFor the purpose of subsection 142.4(1) of the Act, transition amount, of a taxpayer in respect of the disposition of a specified debt obligation, means,if neither paragraph (b) nor (c) applies, nil;ifthe taxpayer acquired the obligation before its taxation year that includes February 23, 1994,neither paragraph 7000(2)(a) nor (b) has applied to the obligation, andthe principal amount of the obligation exceeds the cost of the obligation to the taxpayer (which excess is referred to in this paragraph as the “discount”),the amount determined by the formulaA - BwhereAis the total of all amounts each of which is the amount included in respect of the discount in computing the taxpayer’s profit for a taxation year that ended before February 23, 1994, andBis the total of all amounts each of which is the amount included in respect of the discount in computing the taxpayer’s income for a taxation year that ended before February 23, 1994; andwherethe conditions in subparagraphs (b)(i) and (ii) are satisfied, andthe cost of the obligation to the taxpayer exceeds the principal amount of the obligation (which excess is referred to in this paragraph as the “premium”),the negative of the amount determined by the formulaA - BwhereAis the total of all amounts each of which is the amount deducted in respect of the premium in computing the taxpayer’s profit for a taxation year that ended before February 23, 1994, andBis the total of all amounts each of which is the amount deducted in respect of the premium in computing the taxpayer’s income for a taxation year that ended before February 23, 1994.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
Prescribed Debt Obligations
Application of related electionThe following rules apply with respect to an election made under subsection (3) or (4) by a taxpayer:the election applies only ifit is in writing,it specifies the first taxation year (in this subsection referred to as the “initial year”) of the taxpayer to which it is to apply, andeither it is received by the Minister within six months after the end of the initial year, or the Minister has expressly accepted the later filing of the election;subject to paragraph (c), the election applies to dispositions of specified debt obligations in the initial year and subsequent taxation years; andif the Minister has approved, on written application by the taxpayer, the revocation of the election, the election does not apply to dispositions of specified debt obligations in the taxation year specified in the application and in subsequent taxation years.Prescribed specified debt obligationFor the purpose of subparagraph 142.4(5)(a)(ii) of the Act, a specified debt obligation disposed of by a taxpayer in a taxation year is prescribed in respect of the taxpayer if the amortization date for the obligation is not more than two years after the end of the taxation year.Prescribed specified debt obligation — exceptionSubsection (2) does not apply in respect of a taxpayer for a taxation year ifgenerally accepted accounting principles require that the taxpayer’s gains and losses arising on the disposition of a class of debt obligations be amortized to profit for the purpose of the taxpayer’s financial statements;the taxpayer has elected not to have subsection (2) apply; andthe election applies to dispositions in the year.Prescribed specified debt obligationFor the purpose of subparagraph 142.4(5)(a)(ii) of the Act, a specified debt obligation disposed of by a taxpayer in a taxation year is prescribed in respect of the taxpayer ifthe taxpayer has elected to have this subsection apply;the election applies to dispositions in the year; andthe absolute value of the positive or negative amount determined by the formula (A - B) does not exceed the lesser of $5,000 and the amount, if any, specified in the election, whereAis the total of all amounts each of which is the residual portion of the taxpayer’s gain from the disposition of the obligation or any other specified debt obligation disposed of in the same transaction, andBis the total of all amounts each of which is the residual portion of the taxpayer’s loss from the disposition of the obligation or any other specified debt obligation disposed of in the same transaction.Prescribed specified debt obligationFor the purpose of subparagraph 142.4(5)(a)(ii) of the Act, a specified debt obligation disposed of by a taxpayer in a taxation year is prescribed in respect of the taxpayer ifthe disposition resulted in an extinguishment of the obligation, other than an extinguishment that occurred because of a purchase of the obligation by the debtor in the open market;the taxpayer had the right to require the obligation to be settled at any time; orthe debtor had the right to settle the obligation at any time.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
Residual Portion of Gain or Loss
Allocation of residual portionSubject to section 9204, if subsection 142.4(4) of the Act applies to the disposition of a specified debt obligation by a taxpayer, the amount allocated to each taxation year in respect of the residual portion of the gain or loss from the disposition shall be determined, for the purpose of that subsection,by a method that complies with, or is substantially similar to a method that complies with, subsection (2); orif gains and losses from the disposition of debt obligations are amortized to profit for the purpose of the taxpayer’s financial statements, by the method used for the purpose of the taxpayer’s financial statements.Proration methodFor the purpose of subsection (1), a method for allocating to taxation years the residual portion of a taxpayer’s gain or loss from the disposition of a specified debt obligation complies with this subsection if the amount allocated to each taxation year is determined by the formulaA × B/CwhereAis the residual portion of the taxpayer’s gain or loss;Bis the number of days in the taxation year that are in the period referred to in the description of C; andCis the number of days in the period that,where subsection (3) applies in respect of the obligation, is determined under that subsection, andin any other case,begins on the day on which the taxpayer disposed of the obligation, andends on the earlier ofthe amortization date for the obligation, andthe day that is 20 years after the day on which the taxpayer disposed of the obligation.Single proration periodThis subsection applies in respect of specified debt obligations disposed of by a taxpayer in a transaction in a taxation year, and the period determined under this subsection in respect of the obligations is the period that begins on the day of disposition and ends on the weighted average amortization date for those obligations so disposed of to which subsection 142.4(4) of the Act applies, ifthe taxpayer has elected in its return of income for the taxation year to have this subsection apply in respect of the obligations so disposed of;all the obligations so disposed of were disposed of at the same time; andthe number of the obligations so disposed of to which subsection 142.4(4) of the Act applies is at least 50.Weighted average amortization dateFor the purpose of subsection (3), the weighted average amortization date for a group of specified debt obligations disposed of on the same day by a taxpayer is,if paragraph (b) does not apply, the day that is the number of days after the day of disposition equal to the total of the number of days determined in respect of each obligation by the formulaA × B/CwhereAis the number of days from the day of disposition to the amortization date for the obligation,Bis the residual portion of the gain or loss from the disposition of the obligation, andCis the total of all amounts each of which is the residual portion of the gain or loss from the disposition of an obligation in the group; andthe day that the taxpayer determines using a reasonable method for estimating the day determined under paragraph (a).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7
Special Rules for Residual Portion of Gain or Loss
ApplicationThis section applies for the purposes of subparagraphs 142.4(4)(c)(ii) and (d)(ii) of the Act.Winding-upIf subsection 88(1) of the Act has applied to the winding-up of a taxpayer (in this subsection referred to as the “subsidiary”), the following rules apply in respect of the residual portion of a gain or loss of the subsidiary from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies:the amount of that residual portion allocated to the taxation year of the subsidiary in which its assets were distributed to its parent on the winding-up shall be determined on the assumption that the taxation year ended when the assets were distributed to its parent;no amount shall be allocated in respect of that residual portion to any taxation year of the subsidiary after its taxation year in which its assets were distributed to its parent; andthe amount of that residual portion allocated to the taxation year of the parent in which the subsidiary’s assets were distributed to it shall be determined on the assumption that the taxation year began when the assets were distributed to it.[Repealed, SOR/2009-302, s. 12]Transfer of an insurance businessNo amount in respect of the residual portion of a gain or loss of an insurer from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies shall be allocated to any taxation year of the insurer that ends after the insurer ceased to carry on all or substantially all of an insurance business, ifsubsection 138(11.5) or (11.94) of the Act has applied to the transfer of that business; andthe person to whom that business was transferred is considered, because of paragraph 138(11.5)(k) of the Act, to be the same person as the insurer in respect of that residual portion.Transfer to new partnershipIf subsection 98(6) of the Act deems a partnership (in this subsection referred to as the “new partnership”) to be a continuation of another partnership (in this subsection referred to as the “predecessor partnership”), the following rules apply in respect of the residual portion of a gain or loss of the predecessor partnership from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies:the amount of that residual portion allocated to the taxation year of the predecessor partnership in which its property was transferred to the new partnership shall be determined on the assumption that the taxation year ended when the property was transferred;no amount shall be allocated in respect of that residual portion to any taxation year of the predecessor partnership after its taxation year in which its property was transferred to the new partnership; andthe amount of that residual portion allocated to the taxation year of the new partnership in which the predecessor partnership’s property was transferred to it shall be determined on the assumption that the taxation year began when the property was transferred to it.Ceasing to carry on businessThere shall be allocated to a particular taxation year of a taxpayer the part, if any, of the residual portion of the taxpayer’s gain or loss that is from a disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies and that was not allocated to a preceding taxation year, ifat any time in the particular taxation year the taxpayer ceases to carry on all or substantially all of a business, otherwise than as a result of a merger to which subsection 87(2) of the Act applies, a winding-up to which subsection 88(1) of the Act applies or a transfer of the business to which subsection 98(6) or 138(11.5) or (11.94) of the Act applies;the disposition occurred before that time; andthe specified debt obligation was property used in the business.Non-resident taxpayerFor the purpose of subsection (5), a non-resident taxpayer is considered to cease to carry on all or substantially all of a business if the taxpayer ceases to carry on, or ceases to carry on in Canada, all or substantially all of the part of the business that was carried on in Canada.Ceasing to be a financial institutionThere shall be allocated to a particular taxation year of a taxpayer the part, if any, of the residual portion of the taxpayer’s gain or loss that is from a disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies and that was not allocated to a preceding taxation year, ifthe particular taxation year ends immediately before the time at which the taxpayer ceases to be a financial institution, otherwise than because it has ceased to carry on a business; andthe disposition occurred before that time.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-222, s. 7; SOR/2009-302, s. 12
Film or Video Production Services Tax CreditAccredited Production
Subject to subsection (2), for the purpose of section 125.5 of the Act, accredited production meansa film or video production in respect of which the aggregate expenditures, included in the cost of the production, in the period that ends 24 months after the time that the principal filming or taping of the production began, exceeds $1,000,000; anda film or video production that is part of a series of television productions that has two or more episodes, or is a pilot programme for such a series of episodes, in respect of which the aggregate expenditures included in the cost of each episode in the period that ends 24 months after the time that the principal filming or taping of the production began exceedsin the case of an episode whose running time is less than 30 minutes, $100,000, andin any other case, $200,000.The references to “24 months” in paragraphs 9300(1)(a) and (b) are to be read as references to “36 months” in respect of film or video productions for which the Canadian labour expenditure of the corporation in respect of the production for the taxation years ending in 2020 or 2021 was greater than nil.An accredited production does not include a production that is any of the following:news, current events or public affairs programming, or a programme that includes weather or market reports;a talk show;a production in respect of a game, questionnaire or contest;a sports event or activity;a gala presentation or awards show;a production that solicits funds;reality television;pornography;advertising; anda production produced primarily for industrial, corporate or institutional purposes.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-126, s. 52022, c. 10, s. 43
[Repealed, 2016, c. 7, s. 59]
[Repealed, 2016, c. 7, s. 59][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2007, c. 35, s. 88; 2014, c. 39, s. 89; 2016, c. 7, s. 59
[Repealed, 2016, c. 7, s. 59][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2011, c. 24, s. 99; 2016, c. 7, s. 59
Employee Life and Health Trusts
Prescribed rightsFor the purpose of subparagraph 144.1(2)(g)(iii) of the Act, prescribed payments are payments to General Motors of Canada Limited or Chrysler Canada Inc. by the employee life and health trust established for the benefit of retired automobile industry workers by the Canadian Auto Workers’ Union thatare reasonable in the circumstances;are made as consideration for administrative services provided to or on behalf of the trust or its beneficiaries, or as reimbursement for employee benefit payments made on behalf of, or in contemplation of the establishment of, the trust; andthe recipient acknowledges in writing shall be included in computing the recipient’s income in the year that they are receivable, to the extent that the recipient deducts in the year, or deducted in a prior year, in computing its income amounts in respect of the services or benefit payments described in paragraph (b).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2010, c. 25, s. 87
School Supplies Tax Credit
Prescribed durable goodsFor the purpose of the definition teaching supplies in subsection 122.9(1) of the Act, the following are prescribed durable goods:books;games and puzzles;containers (such as plastic boxes or banker boxes);educational support software;calculators (including graphing calculators);external data storage devices;web cams, microphones and headphones;multimedia projectors;wireless pointer devices;electronic educational toys;digital timers;speakers;video streaming devices;printers; andlaptop, desktop and tablet computers, provided that none of these items are made available to the eligible educator by their employer for use outside of the classroom.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2016, c. 7, s. 602022, c. 5, s. 8
COVID-19 — Air Quality Improvement Tax Credit
Tax credit — air quality improvementThe following definitions apply in this section.HEPA filter means a high-efficiency particulate air filter that has been tested to ensure efficiency equal to or exceeding 99.97% for removal of airborne particles having a mean aerodynamic diameter of 0.3 µm (micrometres) from the air. (filtre HEPA)HVAC system means a mechanical heating, ventilating and air conditioning system that is installed in a building, and includes all of its equipment and components. (système CVCA)MERV means the minimum efficiency reporting value parameters specified in ANSI/ASHRAE Standard 52.2-2017, Method of Testing General Ventilation Air-Cleaning Devices for Removal Efficiency by Particle Size, Section 12, Minimum Efficiency Reporting Value (MERV) for Air Cleaners, Table 12-1, Minimum Efficiency Reporting Value (MERV) Parameters. (MERV)Subject to subsection (3), for the purposes of the definition qualifying expenditure in subsection 127.43(1) of the Act, the following outlays and expenses are prescribed to the extent that they are reasonable and intended primarily to increase outdoor air intake or to improve air cleaning:outlays and expenses that are directly attributable to the purchase, installation, conversion or upgrade of a new or retrofitted HVAC system placed in service at a qualifying location that meets either of the following conditions:the system is designed to filter air at a rate in excess of MERV 8 or an equivalent level of filtration, orthe system is designed to filter air at a rate equal to MERV 8 or an equivalent level of filtration and the following conditions are met:the system is designed to achieve an outdoor air supply rate in excess of what is required for the space by applicable building codes, andin the case of an upgrade or conversion of an existing system, prior to the upgrade or conversion, the system was designed to filter air at a rate equal to MERV 8; andoutlays and expenses that are directly attributable to the purchase of a device that is placed in service at a qualifying location and designed to filter air using a HEPA filter.The outlays and expenses in subsection (2) do not include an outlay or expense of an eligible entitymade or incurred under the terms of an agreement entered into before the start of the qualifying period;that is the cost of recurring or routine repair or maintenance;that can reasonably be expected to be paid or returned, directly or indirectly, in any manner whatever, tothe eligible entity,a person or partnership not dealing at arm’s length with the eligible entity, oranother person or partnership at the direction of the eligible entity;that is paid to a party with which the eligible entity does not deal at arm’s length;that is salary or wages paid to an employee of the eligible entity; orfor financing costs.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2022, c. 5, s. 9
(Sections 100, 102 and 106)Ranges of Remuneration and of Total Remuneration
For the purposes of paragraph 102(1)(c), the ranges of remuneration for each pay period in a taxation year shall be determined as follows:in respect of a daily pay period, the ranges of remuneration shall commence at $44 and increase in increments of $2 for each range up to and including $151.99;in respect of a weekly pay period, the ranges of remuneration shall commence at $202 and increase in increments of$2 for each range up to and including $309.99,$4 for each range from $310 to $529.99,$8 for each range from $530 to $969.99,$12 for each range from $970 to $1,629.99,$16 for each range from $1,630 to $2,509.99,$20 for each range from $2,510 to $3,609.99;in respect of a bi-weekly pay period, the ranges of remuneration shall commence at $403 and increase in increments of$4 for each range up to and including $618.99,$8 for each range from $619 to $1,058.99,$16 for each range from $1,059 to $1,938.99,$24 for each range from $1,939 to $3,258.99,$32 for each range from $3,259 to $5,018.99,$40 for each range from $5,019 to $7,218.99;in respect of a semi-monthly pay period, the ranges of remuneration shall commence at $437 and increase in increments of$4 for each range up to and including $652.99,$8 for each range from $653 to $1,092.99,$18 for each range from $1,093 to $2,082.99,$26 for each range from $2,083 to $3,512.99,$34 for each range from $3,513 to $5,382.99,$44 for each range from $5,383 to $7,802.99;in respect of 12 monthly pay periods, the ranges of remuneration shall commence at $873 and increase in increments of$8 for each range up to and including $1,304.99,$18 for each range from $1,305 to $2,294.99,$34 for each range from $2,295 to $4,164.99,$52 for each range from $4,165 to $7,024.99,$70 for each range from $7,025 to $10,874.99,$86 for each range from $10,875 to $15,604.99;in respect of 10 monthly pay periods, the ranges of remuneration shall commence at $1,048 and increase in increments of$10 for each range up to and including $1,587.99,$20 for each range from $1,588 to $2,687.99,$42 for each range from $2,688 to $4,997.99,$62 for each range from $4,998 to $8,407.99,$84 for each range from $8,408 to $13,027.99,$104 for each range from $13,028 to $18,747.99;in respect of four-week pay periods, the ranges of remuneration shall commence at $806 and increase in increments of$8 for each range up to and including $1,237.99,$16 for each range from $1,238 to $2,117.99,$32 for each range from $2,118 to $3,877.99,$48 for each range from $3,878 to $6,517.99,$64 for each range from $6,518 to $10,037.99,$80 for each range from $10,038 to $14,437.99;in respect of 22 pay periods per annum, the ranges of remuneration shall commence at $477 and increase in increments of$6 for each range up to and including $800.99,$10 for each range from $801 to $1,350.99,$18 for each range from $1,351 to $2,340.99,$28 for each range from $2,341 to $3,880.99,$38 for each range from $3,881 to $5,970.99,$48 for each range from $5,971 to $8,610.99.
For the purposes of paragraph 102(1)(d), the mid-point of the range of amount of personal credits for a taxation year shall be as follows:from $0 to $8,929, $8,929;from $8,929.01 to $10,817, $9,873.00;from $10,817.01 to $12,705, $11,761.00;from $12,705.01 to $14,593, $13,649.00;from $14,593.01 to $16,481, $15,537.00;from $16,481.01 to $18,369, $17,425.00;from $18,369.01 to $20,257, $19,313.00;from $20,257.01 to $22,145, $21,201.00;from $22,145.01 to $24,033, $23,089.00;from $24,033.01 to $25,921, $24,977.00;for amounts in excess of $25,921, the amount of the personal credits.
[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-331, s. 4; SOR/78-449, s. 5; SOR/78-625, s. 3; SOR/79-359, s. 3; SOR/79-694, s. 3; SOR/80-187, s. 2; SOR/80-683, s. 4; SOR/80-941, s. 6; SOR/81-471, s. 7; SOR/81-596, s. 1; SOR/83-349, s. 5; SOR/83-360, s. 2; SOR/83-692, s. 8; SOR/84-223, s. 2; SOR/84-913, s. 4; SOR/84-968, s. 1; SOR/85-453, s. 4; SOR/86-629, s. 4; SOR/86-949, s. 1; SOR/87-471, s. 4; SOR/88-310, s. 3; SOR/89-508, s. 7; SOR/90-161, s. 3; SOR/91-279, ss. 3, 4; SOR/91-536, s. 4; SOR/92-138, s. 3; SOR/92-667, ss. 4, 5; SOR/94-569, s. 3; SOR/96-206, s. 1; SOR/99-18, ss. 2, 3; SOR/2000-10, ss. 2, 3; SOR/2000-329, ss. 2, 3; SOR/2001-221, ss. 7, 8; SOR/2005-123, s. 6; SOR/2005-185, s. 4; SOR/2007-149, s. 1(Sections 215, 700, 701, 1100 to 1105, 1205, 1206, 1700, 1704, 3900, 4600, 4601, 5202 and 5204)Capital Cost Allowances(4 per cent)Property not included in any other class that isa bridge;a canal;a culvert;a dam;a jetty acquired before May 26, 1976;a mole acquired before May 26, 1976;a road, sidewalk, airplane runway, parking area, storage area or similar surface construction, acquired before May 26, 1976;railway track and grading, including components such as rails, ballast, ties and other track material,that is not part of a railway system, orthat was acquired after May 25, 1976;railway traffic control or signalling equipment, acquired after May 25, 1976, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor;a subway or tunnel, acquired after May 25, 1976;electrical generating equipment (except as specified elsewhere in this Schedule);a pipeline, other thana pipeline that is gas or oil well equipment, anda pipeline that is for oil or natural gas if the Minister, in consultation with the Minister of Natural Resources, is or has been satisfied that the main source of supply for the pipeline is or was likely to be exhausted within 15 years after the date on which the operation of the pipeline commenced;the generating or distributing equipment and plant (including structures) of a producer or distributor of electrical energy;manufacturing and distributing equipment and plant (including structures) acquired primarily for the production or distribution of gas, excepta property acquired for the purpose of producing or distributing gas that is normally distributed in portable containers,a property acquired for the purpose of processing natural gas, before the delivery of such gas to a distribution system, ora property acquired for the purpose of producing oxygen or nitrogen;the distributing equipment and plant (including structures) of a distributor of water;the production and distributing equipment and plant (including structures) of a distributor of heat; ora building or other structure, or a part of it, including any component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators (except property described in any of paragraphs (k) and (m) to (p) of this Class or in any of paragraphs (a) to (e) of Class 8).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 10; SOR/97-377, s. 6; SOR/2005-371, s. 7; SOR/2006-117, s. 8; SOR/2010-93, s. 27(F)(6 per cent)Property that iselectrical generating equipment (except as specified elsewhere in this Schedule),a pipeline, other than gas or oil well equipment, unless, in the case of a pipeline for oil or natural gas, the Minister in consultation with the Minister of Energy, Mines and Resources, is or has been satisfied that the main source of supply for the pipeline is or was likely to be exhausted within 15 years from the date on which operation of the pipeline commenced,the generating or distributing equipment and plant (including structures) of a producer or distributor of electrical energy, except a property included in Class 10, 13, 14, 26 or 28,manufacturing and distributing equipment and plant (including structures) acquired primarily for the production or distribution of gas, excepta property included in Class 10, 13 or 14,a property acquired for the purpose of producing or distributing gas that is normally distributed in portable containers,a property acquired for the purpose of processing natural gas, before delivery of such gas to a distribution system, ora property acquired for the purpose of producing oxygen or nitrogen,the distributing equipment and plant (including structures) of a distributor of water, except a property included in Class 10, 13 or 14,the production and distributing equipment and plant (including structures) of a distributor of heat, except a property included in Class 10, 13 or 14,acquired by the taxpayerbefore 1988, orbefore 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,that was under construction by or on behalf of the taxpayer on June 18, 1987, orthat is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-427, s. 2; SOR/85-270, s. 1; SOR/86-1092, ss. 19(F), 20; SOR/90-22, s. 11(5 per cent)Property not included in any other class that isa building or other structure, or part thereof, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, acquired by the taxpayerbefore 1988, orbefore 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,that was under construction by or on behalf of the taxpayer on June 18, 1987, orthat is a component part of a building that was under construction by or on behalf of the taxpayer on June 18, 1987;a breakwater;a dock;a trestle;a windmill;a wharf;an addition or alteration, made during the period that is after March 31, 1967 and before 1988, to a building that would have been included in this class during that period but for the fact that it was included in Class 20;a jetty acquired after May 25, 1976;a mole acquired after May 25, 1976;telephone, telegraph or data communication equipment, acquired after May 25, 1976, that is a wire or cable;an addition or alteration, other than an addition or alteration described in paragraph (k) of Class 6, made after 1987, to a building included, in whole or in part,in this class,in Class 6 by virtue of subparagraph (a)(viii) thereof, orin Class 20,to the extent that the aggregate cost of all such additions or alterations to the building does not exceed the lesser of$500,000, and25 per cent of the aggregate of the amounts that would, but for this paragraph, be the capital cost of the building and any additions or alterations thereto included in this class or Class 6 or 20; orancillary to a wire or cable referred to in paragraph (j) or Class 42 and that is supporting equipment such as a pole, mast, tower, conduit, brace, crossarm, guy or insulator.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-949, s. 2; SOR/90-22, s. 12; SOR/94-140, s. 17(6 per cent)Property that would otherwise be included in another class in this Schedule that isa railway system or a part thereof, except automotive equipment not designed to run on rails or tracks, that was acquired after the end of the taxpayer’s 1958 taxation year and before May 26, 1976; ora tramway or trolley bus system or a part thereof, except property included in Class 10, 13 or 14.(10 per cent)Property that isa chemical pulp mill or ground wood pulp mill, including buildings, machinery and equipment, but not including hydro-electric power plants and their equipment, oran integrated mill producing chemical pulp or ground wood pulp and manufacturing therefrom paper, paper board or pulp board, including buildings, machinery and equipment, but not including hydro-electric power plants and their equipment,but not including any property that was acquired after the end of the taxpayer’s 1962 taxation year.(10 per cent)Property not included in any other class that isa building offrame,log,stucco on frame,galvanized iron, orcorrugated metalconstruction, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, if the buildingis used by the taxpayer for the purpose of gaining or producing income from farming or fishing,has no footings or any other base support below ground level,was acquired by the taxpayer before 1979 and is not a building described in subparagraph (vi) or (vii),was acquired by the taxpayer after 1978 under circumstances such thathe was obligated to acquire the building under the terms of an agreement in writing entered into before 1979, andthe installation of footings or any other base support of the building was commenced before 1979, orwas acquired by the taxpayer after 1978 under circumstances such thathe commenced construction of the building before 1979, orthe construction of the building was commenced under the terms of an agreement in writing entered into by him before 1979, andthe installation of footings or any other base support of the building was commenced before 1979;a wooden breakwater;a fence;a greenhouse;an oil or water storage tank;a railway tank car acquired before May 26, 1976;a wooden wharf;an airplane hangar acquired after the end of the taxpayer’s 1958 taxation year;an addition or alteration, madeduring the period that is after March 31, 1967 and before 1979, orafter 1978 if the taxpayer was obligated to have it made under the terms of an agreement in writing entered into before 1979,to a building that would have been included in this class during that period but for the fact that it was included in Class 20;a railway locomotive that is acquired after May 25, 1976 and before February 26, 2008 and that is not an automotive railway car;an addition or alteration, made after 1978 to a building included in this class by virtue of subparagraph (a)(viii), to the extent that the aggregate cost of all such additions and alterations to the building does not exceed $100,000.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-949, s. 3; SOR/94-140, s. 18; SOR/2009-126, s. 5(15 per cent)Property that isa canoe or rowboat;a scow;a vessel, but not including a vesselof a separate class prescribed by subsection 1101(2a), orincluded in Class 41;furniture, fittings or equipment attached to a property included in this class, but not including radiocommunication equipment;a spare engine for a property included in this class;a marine railway;a vessel under construction, other than a vessel included in Class 41;subject to an election made under subsection 1103(2i), property acquired after February 27, 2000 that isa rail suspension device designed to carry trailers that are designed to be hauled on both highways and railway tracks, ora railway car;property that is acquired after February 27, 2000 (other than property included in paragraph (y) of Class 10), that is a railway locomotive and that is not an automotive railway car;pumping or compression equipment, including equipment ancillary to pumping and compression equipment, acquired after February 22, 2005 if the equipment pumps or compresses petroleum, natural gas or a related hydrocarbon for the purpose of moving itthrough a transmission pipeline,from a transmission pipeline to a storage facility, orto a transmission pipeline from a storage facility; orpumping or compression equipment that is acquired after February 25, 2008, including equipment ancillary to pumping and compression equipment, that is on a pipeline and that pumps or compresses carbon dioxide for the purpose of moving it through the pipeline.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 13; SOR/2005-371, s. 8; SOR/2006-117, s. 9; SOR/2009-126, s. 6(20 per cent)Property not included in Class 1, 2, 7, 9, 11, 17, 30, 57 or 58 that isa structure that is manufacturing or processing machinery or equipment;tangible property attached to a building and acquired solely for the purpose ofservicing, supporting or providing access to or egress from, machinery or equipment,manufacturing or processing, orany combination of the functions described in subparagraphs (i) and (ii);a building that is a kiln, tank or vat, acquired for the purpose of manufacturing or processing;a building or other structure, acquired after February 19, 1973, that is designed for the purpose of preserving ensilage on a farm;a building or other structure, acquired after February 19, 1973, that isdesigned to store fresh fruits or fresh vegetables at a controlled level of temperature and humidity, andto be used principally for the purpose of storing fresh fruits or fresh vegetables by or for the person or persons by whom they were grown;electrical generating equipment acquired after May 25, 1976, ifthe taxpayer is not a person whose business is the production for the use of or distribution to others of electrical energy,the equipment is auxiliary to the taxpayer’s main power supply, andthe equipment is not used regularly as a source of supply;electrical generating equipment, acquired after May 25, 1976, that has a maximum load capacity of not more than 15 kilowatts;portable electrical generating equipment acquired after May 25, 1976;a tangible capital property that is not included in another class in this Schedule exceptland or any part thereof or any interest therein,an animal,a tree, shrub, herb or similar growing thing,an oil or gas well,a mine,a specified temporary access road of the taxpayer,radium,a right of way,a timber limit,a tramway track, orproperty of a separate class prescribed by subsection 1101(2a);property not included in any other class that is radiocommunication equipment acquired after May 25, 1976;a rapid transit car that is used for the purpose of public transportation within a metropolitan area and is not part of a railway system;an outdoor advertising poster panel or bulletin board; ora greenhouse constructed of a rigid frame and a replaceable, flexible plastic cover.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-881, s. 1; SOR/80-926, s. 3(F); SOR/85-853, s. 1; SOR/90-22, s. 14; SOR/94-140, s. 19; SOR/97-377, s. 7; SOR/99-179, s. 12; SOR/2005-371, s. 92024, c. 15, s. 86(25 per cent)Property acquired before May 26, 1976, other than property included in Class 30, that iselectrical generating equipment, ifthe taxpayer is not a person whose business is the production for the use of or distribution to others of electrical energy,the equipment is auxiliary to the taxpayer’s main power supply, andthe equipment is not used regularly as a source of supply,radar equipment,radio transmission equipment,radio receiving equipment,electrical generating equipment that has a maximum load capacity of not more than 15 kilowatts, orportable electrical generating equipment,and property acquired after May 25, 1976 that isan aircraft;furniture, fittings or equipment attached to an aircraft; ora spare part for an aircraft, or for furniture, fittings or equipment attached to an aircraft.(30 per cent)Property not included in any other class that isautomotive equipment, including a trolley bus, but not includingan automotive railway car acquired after May 25, 1976,a railway locomotive, ora tramcar,a portable tool acquired after May 25, 1976 for the purpose of earning rental income for short terms, such as hourly, daily, weekly or monthly, except a property described in Class 12,harness or stable equipment,a sleigh or wagon,a trailer, including a trailer designed to be hauled on both highways and railway tracks,general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, acquired after May 25, 1976 and before March 23, 2004 (or after March 22, 2004 and before 2005 if an election in respect of the property is made under subsection 1101(5q)), but not including property that is principally or is used principally aselectronic process control or monitor equipment,electronic communications control equipment,systems software for a property referred to in subparagraph (i) or (ii), ordata handling equipment unless it is ancillary to general-purpose electronic data processing equipment,a designated underground storage cost, oran unmanned telecommunication spacecraft designed to orbit above the earth,and property (other than property included in Class 41, 41.1 or 41.2 or property included in Class 43 that is described in paragraph (b) of that Class) that would otherwise be included in another Class in this Schedule, that isa building or other structure (other than property described in paragraph (l) or (m) that would otherwise be included in Class 1, 3 or 6 and that was acquired for the purpose of gaining or producing income from a mine, excepta property included in Class 28,a property acquired principally for the purpose of gaining or producing income from the processing of ore from a mineral resource that is not owned by the taxpayer,an office building not situated on the mine property, ora refinery that was acquired by the taxpayerbefore November 8, 1969, orafter November 7, 1969 and that had been used before November 8, 1969 by any person with whom the taxpayer was not dealing at arm’s length;[Repealed, SOR/80-99, s. 1]contractor’s movable equipment, including portable camp buildings, acquired for use in a construction business or for lease to another taxpayer for use in that other taxpayer’s construction business, except a property included inthis Class by virtue of paragraph (t),a separate class prescribed by subsection 1101(2b), orClass 22 or 38;a floor of a roller skating rink;gas or oil well equipment;property (other than property included in class 28 or property described in paragraph (l) or (m)) that was acquired for the purpose of gaining or producing income from a mine and that isa structure that would otherwise be included in Class 8, ormachinery or equipment,except a property acquired before May 9, 1972 for the purpose of gaining or producing income from the processing of ore after extraction from a mineral resource that is not owned by the taxpayer;property acquired after the 1971 taxation year for the purpose of gaining or producing income from a mine and providing services to the mine or to a community where a substantial proportion of the persons who ordinarily work at the mine reside, if such property isan airport, dam, dock, fire hall, hospital, house, natural gas pipeline, power line, recreational facility, school, sewage disposal plant, sewer, street lighting system, town hall, water pipeline, water pumping station, water system, wharf or similar property,a road, sidewalk, airplane runway, parking area, storage area or similar surface construction, ormachinery or equipment ancillary to any of the property described in subparagraph (i) or (ii),but is nota property included in Class 28, ora railway not situated on the mine property;property acquired after March 31, 1977, principally for the purpose of gaining or producing income from a mine, if such property israilway track and grading including components such as rails, ballast, ties and other track material,property ancillary to the track referred to in subparagraph (i) that israilway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, ora bridge, culvert, subway, trestle or tunnel,machinery or equipment ancillary to any of the property referred to in subparagraph (i) or (ii), orconveying, loading, unloading or storing machinery or equipment, including a structure, acquired for the purpose of shipping output from the mine by means of the track referred to in subparagraph (i),but is notproperty included in Class 28, orfor greater certainty, rolling stock;property that was acquired for the purpose of cutting and removing merchantable timber from a timber limit and that will be of no further use to the taxpayer after all merchantable timber that the taxpayer is entitled to cut and remove from the limit has been cut and removed, unless the taxpayer has elected to include another property of this kind in another class in this Schedule;mechanical equipment acquired for logging operations, except a property included in Class 7;an access road or trail for the protection of standing timber against fire, insects or disease;property acquired for a motion picture drive-in theatre;property included in this class by virtue of subsection 1102(8) or (9), except a property included in Class 28;a motion picture film or video tape acquired after May 25, 1976, except a property included in paragraph (w) or (x) or in Class 12;a property acquired after May 22, 1979 that is designed principally for the purpose ofdetermining the existence, location, extent or quality of accumulations of petroleum or natural gas,drilling oil or gas wells, ordetermining the existence, location, extent or quality of mineral resources,except a property included in a separate class prescribed by subsection 1101(2b);property acquired after 1980 to be used primarily in the processing in Canada of heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent that isproperty that would otherwise be included in Class 8 except railway rolling stock or a property described in paragraph (j) of Class 8,an oil or water storage tank,a powered industrial lift truck that would otherwise be included in paragraph (a), orproperty that would otherwise be included in paragraph (f);property acquired after August 31, 1984 (other than property that is included in Class 30) that is equipment used for the purpose of effecting an interface between a cable distribution system and electronic products used by consumers of that system and that is designed primarilyto augment the channel capacity of a television receiver or radio,to decode pay television or other signals provided on a discretionary basis, orto achieve any combination of functions described in subparagraphs (i) and (ii);a certified production acquired after 1987 and before March 1996;a Canadian film or video production; ora railway locomotive that is not an automotive railway car and that was not used or acquired for use for any purpose by any taxpayer before February 26, 2008.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 6; SOR/79-426, s. 4; SOR/80-99, ss. 1, 2; SOR/80-926, s. 4; SOR/81-974, s. 14; SOR/86-1136, s. 13; SOR/89-27, s. 4; SOR/90-22, s. 15; SOR/94-140, s. 20; SOR/94-169, s. 9; SOR/2005-126, s. 6; SOR/2005-414, s. 5; SOR/2009-126, s. 7; 2010, c. 25, s. 88; SOR/2010-93, s. 28(F); SOR/2011-9, s. 6; 2013, c. 40, s. 116Property that would otherwise be included in Class 10 that is a passenger vehicle, the cost of which to the taxpayer exceeds $20,000 or such other amount as may be prescribed for the purposes of subsection 13(2) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/91-673, s. 5(35 per cent)Property not included in any other class that is used to earn rental income and that isan electrical advertising sign owned by the manufacturer thereof, acquired before May 26, 1976; oran outdoor advertising poster panel or bulletin board acquired by the taxpayerbefore 1988, orbefore 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, orthat was under construction by or on behalf of the taxpayer on June 18, 1987.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 16(100 per cent)Property not included in any other class that isa book that is part of a lending library;chinaware, cutlery or other tableware;a kitchen utensil costing less than$100, if acquired before May 26, 1976,$200, if acquired after May 25, 1976, and before May 2, 2006, or$500, if acquired after May 1, 2006;a die, jig, pattern, mould or last;a medical or dental instrument costing less than$100, if acquired before May 26, 1976,$200, if acquired after May 25, 1976, and before May 2, 2006, or$500, if acquired after May 1, 2006;a mine shaft, main haulage way or similar underground work designed for continuing use, or any extension thereof, sunk or constructed after the mine came into production, to the extent that the property was acquired before 1988;linen;a tool (other than an electronic communication device or electronic data processing equipment that is acquired after May 1, 2006 and that can be used for a purpose other than any of measuring, locating and calculating) costing less than$100, if acquired before May 26, 1976,$200, if acquired after May 25, 1976, and before May 2, 2006, or$500, if acquired after May 1, 2006;a uniform;the cutting or shaping part in a machine;apparel or costume, including accessories used therewith, used for the purpose of earning rental income;a video tape acquired before May 26, 1976;a motion picture film or video tape that is a television commercial message;a certified feature film or certified production;computer software acquired after May 25, 1976, but not including systems software and property that is described in paragraph (s);a metric scale or a scale designed for ready conversion to metric weighing, acquired after March 31, 1977 and before 1984 for use in a retail business and having a maximum weighing capacity of 100 kilograms;a designated overburden removal cost; ora video-cassette, a video-laser disk or a digital video disk, that is acquired for the purpose of renting and that is not expected to be rented to any one person for more than 7 days in any 30- day period;and property that would otherwise be included in another class in this Schedule that isacquired by the taxpayer after August 8, 1989 and before 1993, for use in a business of selling goods or providing services to consumers that is carried on in Canada, or for lease to another taxpayer for use by that other taxpayer in such a business, and that iselectronic bar code scanning equipment designed to read bar codes applied to goods held for sale in the ordinary course of the business,a cash register or similar sales recording device designed with the capability of calculating and recording sales tax imposed by more than one jurisdiction in respect of the same sale,equipment or computer software that is designed to convert a cash register or similar sales recording device to one having the capability of calculating and recording sales tax imposed by more than one jurisdiction in respect of the same sale, orelectronic equipment or computer software that is ancillary to property described in subparagraph (i), (ii) or (iii) and all or substantially all the use of which is in conjunction with that property.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 7; SOR/79-426, s. 5; SOR/81-244, s. 2; SOR/85-696, s. 20; SOR/86-254, s. 3; SOR/90-670, s. 2; SOR/91-79, s. 14; SOR/94-686, s. 44(F), 66(F); SOR/95-244, s. 8(F); SOR/2005-126, s. 7; SOR/2010-93, s. 29; SOR/2011-187, s. 2Property that is a leasehold interest and property acquired by a taxpayer that would, if that property had been acquired by a person with whom the taxpayer was not dealing at arm’s length at the time the property was acquired by the taxpayer, be a leasehold interest of that person, exceptan interest in minerals, petroleum, natural gas, other related hydrocarbons or timber and property relating thereto or in respect of a right to explore for, drill for, take or remove minerals, petroleum, natural gas, other related hydrocarbons or timber;that part of the leasehold interest that is included in another class in this Schedule by reason of subsection 1102(5) or (5.1); ora property included in Class 23.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 21Property that is a patent, franchise, concession or licence for a limited period in respect of property, excepta franchise, concession or licence in respect of minerals, petroleum, natural gas, other related hydrocarbons or timber and property relating thereto (except a franchise for distributing gas to consumers or a licence to export gas from Canada or from a province) or in respect of a right to explore for, drill for, take or remove minerals, petroleum, natural gas, other related hydrocarbons or timber;a leasehold interest;a property included in Class 23;a licence to use computer software; ora property that is included in Class 44.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-855, s. 2; SOR/94-170, s. 4(5 per cent)Property of a taxpayer that, in respect of a business of the taxpayer,is goodwill;was eligible capital property of the taxpayer immediately before January 1, 2017 and is owned by the taxpayer at the beginning of that day; oris acquired after 2016, other thanproperty that is tangible or, for civil law, corporeal property,property that is not acquired for the purpose of gaining or producing income from business,property in respect of which any amount is deductible (otherwise than as a result of being included in this class) in computing the taxpayer’s income from the business,property in respect of which any amount is not deductible in computing the taxpayer’s income from the business because of any provision of the Act (other than paragraph 18(1)(b)) or these Regulations,an interest in a trust,an interest in a partnership,a share, bond, debenture, mortgage, hypothecary claim, note, bill or other similar property, orproperty that is an interest in, or for civil law a right in, or a right to acquire, a property described in any of subparagraphs (i) to (vii).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2016, c. 12, s. 84Property that would otherwise be included in another class in this Schedule and thatwas acquired for the purpose of cutting and removing merchantable timber from a timber limit, andwill be of no further use to the taxpayer after all merchantable timber that the taxpayer is entitled to cut and remove from the limit has been cut and removed,exceptproperty that the taxpayer has, in the taxation year or a preceding taxation year, elected not to include in this class, ora timber resource property.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 22(40 per cent)Property acquired before May 26, 1976 that isan aircraft,furniture, fittings or equipment attached to an aircraft, ora spare part for a property included in this class,property acquired after May 25, 1976 that isa taxicab,property acquired after November 12, 1981 that isa motor vehicle thatwould be an automobile as that term is defined in subsection 248(1) of the Act, if that definition were read without reference to paragraph (d) thereof,was acquired for the purpose of renting or leasing, andis not expected to be rented or leased to any person for more than 30 days in any 12 month period,property acquired after February 15, 1984 that isa coin-operated video game or pinball machine,and property acquired after December 6, 1991 that isa truck or tractor designed for hauling freight, and that is primarily so used by the taxpayer or a person with whom the taxpayer does not deal at arm’s length in a business that includes hauling freight, and that has a “gross vehicle weight rating” (as that term is defined in subsection 2(1) of the Motor Vehicle Safety Regulations) in excess of 11,788 kg.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/83-340, s. 4; SOR/85-696, s. 21; SOR/91-673, s. 6; SOR/94-140, s. 23, SOR/94-686, s. 66(F)(8 per cent)Property that would otherwise be included in another class in this Schedule (other than property included in Class 57 or 58) that isa telephone system, telegraph system, or a part thereof, acquired before May 26, 1976, exceptradiocommunication equipment, ora property included in Class 10, 13, 14 or 28, orproperty (other than a building or other structure) acquired after February 27, 2000 that has not been used for any purpose before February 28, 2000 and iselectrical generating equipment (other than electrical generating equipment described in Class 43.1, 43.2 or 48 or in Class 8 because of paragraph (f), (g) or (h) of that Class), orproduction and distribution equipment of a distributor of water or steam (other than such property described in Class 43.1 or 43.2) used for heating or cooling (including, for this purpose, pipe used to collect or distribute an energy transfer medium but not including equipment or pipe used to distribute water that is for consumption, disposal or treatment),and property not included in any other class, acquired after May 25, 1976, that istelephone, telegraph or data communication switching equipment, exceptequipment installed on customers’ premises, orproperty that is principally electronic equipment or systems software therefor; ora road (other than a specified temporary access road of the taxpayer), sidewalk, airplane runway, parking area, storage area or similar surface construction.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/99-179, s. 13; SOR/2005-371, s. 10; SOR/2006-117, s. 10; SOR/2010-93, s. 30(F)2024, c. 15, s. 87(60 per cent)Property that is a motion picture film acquired before May 26, 1976, excepta television commercial message; ora certified feature film.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/95-244, s. 9(F)Property acquired by the taxpayer after June 13, 1963 and before January 1, 1967 that would otherwise be included in Class 8 if,in the taxation year in which the property was acquired,the taxpayer was an individual who was resident in Canada for not less than 183 days, orthe taxpayer was a corporation that had a degree of Canadian ownership;the property was acquired for use in Canada in a business carried on by the taxpayer that,for the fiscal period in which the property was acquired, orfor the fiscal period in which the business first commenced selling goods in reasonable commercial quantities,whichever was later, was a business in which the aggregate ofits net sales, as they would be determined under paragraphs 71A(2)(d) and (f) of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), from the sale of goods processed or manufactured in Canada by the business,an amount equal to that part of its gross revenue that is rent from goods processed or manufactured in Canada in the course of the business, andits gross revenue from advertisements in a newspaper or magazine produced by the business,was not less than 2/3 of the amount by which the gross revenue from the business for the period exceeded the aggregate of each amount paid or credited in the period to a customer of the business as a bonus, rebate or discount or for returned or damaged goods, and was not a business that was principallyoperating a gas or oil well,logging,mining,construction, ora combination of two or more of the activities referred to in subparagraphs (vi) to (ix); andthe property had not been used for any purpose whatever before it was acquired by the taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 48, 79(F), 81(F)Property that would otherwise be included in Class 3 or 6that was acquired after December 5, 1963 and before April 1, 1967 that isa building,an extension to a building, outside the previously existing walls or roof of the building, if the aggregate cost of the extensions added in the aforementioned period exceeded the lesser of$100,000, and25 per cent of the capital cost to the taxpayer of the building on December 5, 1963, oran addition or alteration to a property described in subparagraph (i) or (ii),and that has been certified by the Minister of Industry, upon application by the taxpayer in such form as may be prescribed by the Minister of Industry,to be situated in an area that was a designated area, as determined for the purposes of section 71A of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules),at the time the property was acquired,in a case where the property was built by the taxpayer, at the time construction was commenced, orin a case where the property was built for the taxpayer pursuant to a contract entered into by the taxpayer, at the time the contract was entered into, andto have not been used for any purpose whatever before it was acquired by the taxpayer; orthe capital cost of which was included in the approved capital costs as defined in the Area Development Incentives Act upon which approved capital cost the Minister of Industry has based the amount of a development grant authorized under that Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 48; SOR/2010-93, s. 31(F)Property that would otherwise be included in Class 8 or 19that was acquired after December 5, 1963 and before April 1, 1967 and thatwas acquired for use in a business carried on by the taxpayer that has been certified by the Minister of Industry, for the purposes of section 71A of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), to be a new manufacturing or processing business in a designated area for the fiscal period in which the property was acquired or for a subsequent fiscal period, andhad not been used for any purpose whatever before it was acquired by the taxpayer; orthe capital cost of which was included in the approved capital costs as defined in the Area Development Incentives Act upon which approved capital cost the Minister of Industry has based the amount of a development grant authorized under that Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 48, 81(F)Property acquired by the taxpayer after March 16, 1964 andbefore 1988, orbefore 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, orthat was under construction by or on behalf of the taxpayer on June 18, 1987that is power-operated movable equipment designed for the purpose of excavating, moving, placing or compacting earth, rock, concrete or asphalt, except a property included in Class 7.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-426, s. 6; SOR/90-22, s. 17(100 per cent)Property that isa leasehold interest or a concession in respect of land granted under or pursuant to an agreement in writing with the Canadian Corporation for the 1967 World Exhibition where such leasehold interest or concession is to expire not later than June 15, 1968;a building or other structure, including component parts, erected on land that is the subject matter of a leasehold interest or concession described in paragraph (a) where such building or other structure, including component parts, is of a temporary nature and is required by the agreement to be removed not later than June 15, 1968;a leasehold interest or licence in respect of land granted under or pursuant to an agreement in writing with the Expo 86 Corporation where such leasehold interest or licence is to expire not later than January 31, 1987; ora building or other structure, including component parts, erected on land that is the subject matter of a leasehold interest or licence described in paragraph (c) where such building or other structure, including component parts, is of a temporary nature and is required by the agreement to be removed not later than January 31, 1987.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/85-13, s. 2; SOR/94-686, s. 79(F)Property acquired after April 26, 1965 and before 1971that would otherwise be included in Class 2, 3, 6 or 8 and thatwas acquired primarily for the purpose of preventing, reducing or eliminating pollution ofany of the inland, coastal or boundary waters of Canada, orany lake, river, stream, watercourse, pond, swamp or well in Canada,by industrial waste, refuse or sewage created by operations in the course of carrying on a business by the taxpayer or that would be created by such operations if the property had not been acquired and used, andhad not been used for any purpose whatever before it was acquired by the taxpayer,but not including property acquired for use in the production of by-products or the recovery of materials unless the by-products are produced from, or the materials are recovered from, materials that after April 26, 1965,were being discarded as waste by the taxpayer, orwere commonly being discarded as waste by other taxpayers who carried on operations of a type similar to the operations carried on by the taxpayer,and property acquired before 1999that would otherwise be included in another class in this Schedulethat has not been included by the taxpayer in any other class,that had not been used for any purpose whatever before it was acquired by the taxpayer,that was acquired by the taxpayer after 1970 primarily for the purpose of preventing, reducing or eliminating pollution ofany of the inland, coastal or boundary waters of Canada, orany lake, river, stream, watercourse, pond, swamp or well in Canada,that is caused, or that, if the property had not been acquired and used, would be caused byoperations carried on by the taxpayer at a site in Canada at which operations have been carried on by him from a time that is before 1974,the operation in Canada of a building or plant by the taxpayer, the construction of which was either commenced before 1974 or commenced under an agreement in writing entered into by him before 1974, orthe operation of transportation or other movable equipment that has been operated by the taxpayer in Canada (including any of the inland, coastal or boundary waters of Canada) from a time that is before 1974,or that was acquired by him after May 8, 1972, that would otherwise have been property referred to in this subparagraph except thatit was acquiredfor the purpose of gaining or producing income from a business by a taxpayer whose business includes the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph that is caused or that otherwise would be caused primarily by operations referred to in clause (C), (D) or (E) carried on by other taxpayers (not including persons referred to in section 149 of the Act), andto be used in a business referred to in subclause (I) in the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph, orit was acquiredfor the purpose of gaining or producing income from a property by a corporation whose principal business is the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, the lending of money, or the leasing of property, or any combination thereof, andto be leased to a taxpayer (other than a person referred to in section 149 of the Act) to be used by him, in an operation referred to in clause (C), (D), (E) or (F), in the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph, andthat has, upon application by the taxpayer to the Minister of the Environment, been accepted by that Minister as property the primary use of which is to be the preventing, reducing or eliminating of pollution of a kind referred to in subparagraph (iii),and for the purposes of paragraphs (a) and (b)where a corporation (in this paragraph referred to as the “predecessor corporation”) has, as a result of an amalgamation within the meaning assigned by subsection 87(1) of the Act, merged at any time after 1973 with one or more other corporations to form one corporate entity (in this paragraph referred to as the “new corporation”), the new corporation shall be deemed to be the same corporation as, and a continuation of, the predecessor corporation;where a corporation (in this paragraph referred to as the “subsidiary”) has been wound up at any time after 1973 in circumstances to which subsection 88(1) of the Act applies, the parent (within the meaning assigned by that subsection) shall be deemed to be the same corporation as, and a continuation of, the subsidiary; andthis class shall be read without reference to subparagraph (b)(i) where paragraph (c) or (d) applies to the taxpayer and the property was acquired before 1992.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-146, s. 1; SOR/79-426, s. 7; SOR/94-140, s. 24; SOR/94-686, s. 79(F); SOR/97-377, s. 8; SOR/2010-93, s. 32(F)(100 per cent)Property that would otherwise be included in another class in this Schedule that is property acquired by the taxpayerbefore October 23, 1968, orafter October 22, 1968 and before 1974, where the acquisition of the property may reasonably be regarded as having been in fulfilment of an obligation undertaken in an agreement made in writing before October 23, 1968 and ratified, confirmed or adopted by the legislature of a province by a statute that came into force before that date,if the taxpayer was, on October 22, 1968, a corporation, commission or association to which, on the assumption that October 22, 1968 was in its 1969 taxation year, paragraph 62(1)(c) of the former Act (within the meaning assigned by paragraph 8 (b) of the Income Tax Application Rules),would not apply; andwould have applied but for subparagraph (i) or (ii) of that paragraph.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, ss. 48, 79(F)(5 per cent)Property that isa catalyst; ordeuterium enriched water (commonly known as “heavy water”) acquired after May 22, 1979.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/79-427, s. 3Property acquired before 1999 that would otherwise be included in another Class in this Schedulethat has not been included by the taxpayer in any other class;that had not been used for any purpose whatever before it was acquired by the taxpayer;that was acquired by the taxpayer after March 12, 1970 primarily for the purpose of preventing, reducing or eliminating air pollution byremoving particulate, toxic or injurious materials from smoke or gas, orpreventing the discharge of part or all of the smoke, gas or other air pollutant,that is discharged or that, if the property had not been acquired and used, would be discharged into the atmosphere as a result ofoperations carried on by the taxpayer at a site in Canada at which operations have been carried on by him from a time that is before 1974,the operation in Canada of a building or plant by the taxpayer, the construction of which was either commenced before 1974 or commenced under an agreement in writing entered into by him before 1974, orthe operation of transportation or other movable equipment that has been operated by the taxpayer in Canada (including any of the inland, coastal or boundary waters of Canada) from a time that is before 1974,or that was acquired by him after May 8, 1972, that would otherwise have been property referred to in this paragraph except thatit was acquiredfor the purpose of gaining or producing income from a business by a taxpayer whose business includes the preventing, reducing or eliminating of air pollution that is caused or that otherwise would be caused primarily by operations referred to in subparagraph (iii), (iv) or (v) carried on by other taxpayers (not including persons referred to in section 149 of the Act), andto be used in a business referred to in clause (A) in the preventing, reducing or eliminating of air pollution in a manner referred to in this paragraph, orit was acquiredfor the purpose of gaining or producing income from a property by a corporation whose principal business is the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, the lending of money, or the leasing of property, or any combination thereof, andto be leased to a taxpayer (other than a person referred to in section 149 of the Act) to be used by him, in an operation referred to in subparagraph (iii), (iv), (v) or (vi), in the preventing, reducing or eliminating of air pollution in a manner referred to in this paragraph; andthat has, upon application by the taxpayer to the Minister of the Environment, been accepted by that Minister as property the primary use of which is to be the preventing, reducing or eliminating of air pollution in a manner referred to in paragraph (c),and for the purposes of paragraphs (a) to (d),where a corporation (in this paragraph referred to as the “predecessor corporation”) has, as a result of an amalgamation within the meaning assigned by subsection 87(1) of the Act, merged at any time after 1973 with one or more other corporations to form one corporate entity (in this paragraph referred to as the “new corporation”), the new corporation shall be deemed to be the same corporation as, and a continuation of, the predecessor corporation;where a corporation (in this paragraph referred to as the “subsidiary”) has been wound up at any time after 1973 in circumstances to which subsection 88(1) of the Act applies, the parent (within the meaning assigned by that subsection) shall be deemed to be the same corporation as, and a continuation of, the subsidiary; andthis class shall be read without reference to paragraph (a) where paragraph (e) or (f) applies to the taxpayer and the property was acquired before 1992.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-146, s. 2; SOR/79-426, s. 8; SOR/94-140, s. 25; SOR/94-686, ss. 45(F), 79(F); SOR/97-377, s. 9; SOR/2010-93, s. 33(F)Property situated in Canada that would otherwise be included in another class in this Schedule thatwas acquired by the taxpayerbefore 1988, orbefore 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,that was under construction by or on behalf of the taxpayer on June 18, 1987, orthat is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987,and thatwas acquired by the taxpayer principally for the purpose of gaining or producing income from one or more mines operated by the taxpayer and situated in Canada and each of whichcame into production in reasonable commercial quantities after November 7, 1969, orwas the subject of a major expansion after November 7, 1969whereby the greatest designed capacity, measured in weight of input of ore, of the mill that processed the ore from the mine was not less than 25% greater in the year following the expansion than it was in the year preceding the expansion, orwhere in the one year period preceding the expansionthe Minister, in consultation with the Minister of Natural Resources, determines that the greatest designed capacity of the mine, measured in weight of output of ore, immediately after the expansion was not less than 25% greater than the greatest designed capacity of the mine immediately before the expansion, andeitherno mill processed the ore from the mine at any time, orthe mill that processed the ore from the mine processed other ore,was acquired by the taxpayerafter November 7, 1969,before the coming into production of the mine or the completion of the expansion of the mine referred to in subparagraph (b)(i) or (ii), as the case may be, andin the case of a mine that was the subject of a major expansion described in subparagraph (b)(ii), in the course of and principally for the purposes of the expansion,had not, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length, andis any of the following, namely,property that was acquired before the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (g), (k), (l) or (r) of that class or would have been so included in that class if it had been acquired after the 1971 taxation year,property that was acquired before the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (m) of that class, orproperty that was acquired after the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (g), (k), (l) or (r) of that class,or that would be described in paragraphs (b) to (e) if in those paragraphs each reference to a “mine” were read as a reference to a “mine that is a location in a bituminous sands deposit, oil sands deposit or oil shale deposit from which material is extracted”, and each reference to “after November 7, 1969” were read as “before November 8, 1969”.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 8; SOR/80-926, s. 5; SOR/90-22, s. 18; SOR/94-140, s. 26; SOR/2000-327, s. 5Property (other than property included in Class 41 solely because of paragraph (c) or (d) of that Class or property included in Class 47 because of paragraph (b) of that Class) that would otherwise be included in another class in this Schedulethat is property manufactured by the taxpayer, the manufacture of which was completed by him after May 8, 1972, or other property acquired by the taxpayer after May 8, 1972,to be used directly or indirectly by him in Canada primarily in the manufacturing or processing of goods for sale or lease, orto be leased, in the ordinary course of carrying on a business in Canada of the taxpayer, to a lessee who can reasonably be expected to use, directly or indirectly, the property in Canada primarily in Canadian field processing carried on by the lessee or in the manufacturing or processing by the lessee of goods for sale or lease, if the taxpayer is a corporation whose principal business isleasing property,manufacturing property that it sells or leases,the lending of money,the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, orselling or servicing a type of property that it also leases,or any combination thereof, unless use of the property by the lessee commenced before May 9, 1972;that isproperty that, but for this class, would be included in Class 8, except railway rolling stock or a property described in paragraph (j) of Class 8,an oil or water storage tank,a powered industrial lift truck,electrical generating equipment described in Class 9,property that is described in paragraph (b) or (f) of Class 10, orproperty that would be described in paragraph (f) of Class 10 if the portion of that paragraph before subparagraph (i) read as follows:general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, acquired after March 18, 2007 and before January 28, 2009, but not including property that is principally or is used principally as”; andthat is property acquired by the taxpayerbefore 1988,before 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,that was under construction by or on behalf of the taxpayer on June 18, 1987, orthat is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987, orafter March 18, 2007 and before 2016 if the property is machinery, or equipment,that would be described in paragraph (a) if subparagraph (a)(ii) were read without reference to “in Canadian field processing carried on by the lessee or,”, andthat is described in any of subparagraphs (b)(i) to (iii) and (vi).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 19; SOR/94-686, ss. 46(F), 66(F); SOR/99-179, s. 14; SOR/2009-115, s. 5; SOR/2009-126, s. 8; 2011, c. 24, s. 100; 2013, c. 33, s. 40Property of a taxpayer that isan unmanned telecommunication spacecraft that was designed to orbit above the earth and that was acquired by the taxpayerbefore 1988, orbefore 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, orthat was under construction by or on behalf of the taxpayer on June 18, 1987; orequipment used for the purpose of effecting an interface between a cable or satellite distribution system (other than a satellite radio distribution system) and electronic products used by consumers of that system if the equipmentis designed primarilyto augment the channel capacity of a television receiver, orto decode pay television or other signals provided on a discretionary basis,is acquired by the taxpayer after March 4, 2010, andhas not been used or acquired for use for any purpose by any taxpayer before March 5, 2010.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 20; 2010, c. 25, s. 89(5 per cent)Property that is a multiple-unit residential building in Canada that would otherwise be included in Class 3 or Class 6 and in respect of whicha certificate has been issued by Canada Mortgage and Housing Corporation certifyingin respect of a building that would otherwise be included in Class 3, that the installation of footings or any other base support of the building was commencedafter November 18, 1974 and before 1980, orafter October 28, 1980 and before 1982,as the case may be, andin respect of a building that would otherwise be included in Class 6, that the installation of footings or any other base support of the building was commenced after December 31, 1977 and before 1979,and that, according to plans and specifications for the building, not less than 80 per cent of the floor space will be used in providing self-contained domestic establishments and related parking, recreation, service and storage areas,not more than 20 per cent of the floor space is used for any purpose other than the purposes referred to in paragraph (a),the certificate referred to in paragraph (a) was issued on or before the later ofDecember 31, 1981, andthe day that is 18 months after the day on which the installation of footings or other base support of the building was commenced, andthe construction of the building proceeds, after 1982, without undue delay, taking into consideration acts of God, labour disputes, fire, accidents or unusual delay by common carriers or suppliers of materials or equipment,and that was acquired by the taxpayerbefore June 18, 1987, orafter June 17, 1987 pursuant toan obligation in writing entered into by the taxpayer before June 18, 1987, orthe terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice required to be filed with a public authority in Canada and filed before June 18, 1987 with that public authority.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-146, s. 3; SOR/79-426, s. 9; SOR/81-244, s. 3; SOR/82-1070, s. 1; SOR/90-22, s. 21(10 per cent)Property that is a multiple-unit residential building in Canada that would otherwise be included in Class 6 if the reference to “1979” in subparagraph (a)(viii) of that Class were read as a reference to “1980”, and in respect of whicha certificate has been issued by Central Mortgage and Housing Corporation certifyingthat the installation of footings or any other base support of the building was commenced after November 18, 1974 and before 1978, andthat, according to plans and specifications for the building, not less than 80 per cent of the floor space will be used in providing self-contained domestic establishments and related parking, recreation, service and storage areas; andnot more than 20 per cent of the floor space is used for any purpose other than the purposes referred to in subparagraph (a)(ii).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-949, s. 4(15 per cent)Property that is a timber resource property.Property that would otherwise be included in Class 1, 2 or 8that iselectrical generating equipment,production equipment and pipelines of a distributor of heat,steam generating equipment that was acquired by the taxpayer primarily for the purpose of producing steam to operate property described in subparagraph (i), oran addition to a property described in subparagraph (i), (ii) or (iii),but not including buildings or other structures,that was acquired by the taxpayer after May 25, 1976,thatwas acquired by the taxpayer for use by him in a business carried on in Canada, oris to be leased by the taxpayer to a lessee for use by the lessee in Canada, andthat is property in respect of which a certificate has been issuedbefore December 11, 1979 by the Minister of Industry, Trade and Commerce certifying that the property is part of a plan designed toproduce heat derived primarily from the consumption of wood wastes or municipal wastes,produce electrical energy by the utilization of fuel that is petroleum, natural gas or related hydrocarbons, coal, coal gas, coke, lignite or peat (in this clause referred to as “fossil fuel”), wood wastes or municipal wastes, or any combination thereof, if the consumption of fossil fuel (expressed as the high heat value of the fossil fuel), if any, chargeable to electrical energy on an annual basis in respect of the property is no greater than 7,000 British Thermal Units per kilowatt-hour of electrical energy produced, orrecover heat that is a by-product of an industrial process, orafter December 10, 1979, by the Minister of Energy, Mines and Resources certifying that the property is part of a plan designed toproduce heat derived primarily from the consumption of natural gas, coal, coal gas, lignite, peat, wood wastes or municipal wastes, or any combination thereof,produce electrical energy by the utilization of fuel that is petroleum, natural gas or related hydrocarbons, coal, coal gas, coke, lignite or peat (in this clause referred to as “fossil fuel”), wood wastes or municipal wastes, or any combination thereof, if the consumption of fossil fuel (expressed as the high heat value of the fossil fuel), if any, chargeable to electrical energy on an annual basis in respect of the property is no greater than 7,000 British Thermal Units per kilowatt-hour of electrical energy produced, orrecover heat that is a by-product of an industrial process,and property that was acquired by the taxpayer after December 10, 1979 (other than property described in paragraph (a)) and would otherwise be included in another Class in this Schedulethat isactive solar heating equipment including solar collectors, solar energy conversion equipment, storage equipment, control equipment, equipment designed to interface solar heating equipment with other heating equipment, and solar water heaters, used toheat a liquid or air to be used directly in the course of manufacturing or processing,provide space heating when installed in a new building or other new structure at the time of its original construction where that construction commenced after December 10, 1979, orheat water for a use other than a use described in clause (A) or (B),a hydro electric installation of a producer of hydro electric energy with a planned maximum generating capacity not exceeding 15 megawatts upon completion of site development that is the generating equipment and plant (including structures) of that producer including a canal, a dam, a dyke, an overflow spillway, a penstock, a powerhouse complete with generating equipment and other equipment ancillary thereto, control equipment, fishways or fish bypasses and transmission equipment, except distribution equipment and a property included in Class 10 or 17,heat recovery equipment that is designed to conserve energy or reduce the requirement to acquire energy by extracting and reusing heat from thermal waste including condensers, heat exchange equipment, steam compressors used to upgrade low pressure steam, waste heat boilers and ancilliary equipment such as control panels, fans, instruments or pumps,an addition or alteration to a hydro electric installation described in subparagraph (ii) that results in a change in generating capacity if the new maximum generating capacity at the hydro electric installation does not exceed 15 megawatts, ora fixed location device acquired after February 25, 1986, that is a wind energy conversion system designed to produce electrical energy, consisting of a wind-driven turbine, generating equipment and related equipment, including control and conditioning equipment, support structures, a powerhouse complete with equipment ancillary thereto, and transmission equipment, but not including distribution equipment, equipment designed to store electrical energy or property included in Class 10 or 17,thatwas acquired by the taxpayer for use by him for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, oris to be leased by the taxpayer to a lessee for use by the lessee in Canada, andthat is property in respect of which a certificate has been issued by the Minister of Energy, Mines and Resources,but not includingproperty in respect of which a certificate issued under paragraph (d) or (g) has been revoked pursuant to subsection 1104(11);property that had been used before it was acquired by the taxpayer unless the property had previously been included in Class 34 for the purpose of computing the income of the person from whom it was acquired;property acquired by the taxpayer after February 21, 1994 other thanproperty acquired by the taxpayerpursuant to an agreement of purchase and sale in writing entered into by the taxpayer before February 22, 1994,in order to satisfy a legally binding obligation entered into by the taxpayer in writing before February 22, 1994 to sell electricity to a public power utility in Canada,that was under construction by or on behalf of the taxpayer on February 22, 1994, orthat is machinery or equipment that is a fixed and integral part of a building, structure or other property that was under construction by or on behalf of the taxpayer on February 22, 1994, andproperty acquired by the taxpayer before 1996pursuant to an agreement of purchase and sale in writing entered into before 1995 to acquire the property from a person or partnership in circumstances wherethe property was part of a project that was under construction by the person or partnership on February 22, 1994, andit is reasonable to conclude, having regard to all of the circumstances, that the person or partnership constructed the project with the intention of transferring all or part of the project to another taxpayer after completion, orpursuant to an agreement in writing entered into before 1995 by the taxpayer with a person or partnership where the taxpayer agrees to assume a legally binding obligation entered into by the person or partnership before February 22, 1994 to sell electricity to a public power utility in Canada, orproperty in respect of which a certificate has not been issued under paragraph (d) or (g) before the time that is the later ofthe end of 1995, and2 years after the property is acquired by the taxpayer or, where the property is property acquired in circumstances to which paragraph (j) applies, 2 years after substantial completion of the property.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-114, s. 1; SOR/80-935, s. 2; SOR/82-265, s. 6(F); SOR/84-454, s. 3; SOR/85-853, s. 2; SOR/87-667, s. 1; SOR/90-22, s. 22; SOR/94-686, s. 66(F); 77(F); SOR/97-377, s. 10Property not included in any other class that isa railway car acquired after May 25, 1976; ora rail suspension device designed to carry trailers that are designed to be hauled on both highways and railway tracks.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 27Property acquired after December 11, 1979 that is deemed to be depreciable property by virtue of paragraph 13(5.2)(c) of the Act.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/82-265, s. 6(15 per cent)Property that would otherwise be included in another class in this schedule that is property used in connection with an amusement park, includingland improvements (other than landscaping) for or in support of park activities, includingroads, sidewalks, parking areas, storage areas, or similar surface constructions, andcanals,buildings (other than warehouses, administration buildings, hotels or motels), structures and equipment (other than automotive equipment), includingrides, attractions and appurtenances associated with a ride or attraction, ticket booths and facades,equipment, furniture and fixtures, in or attached to a building included in this class,bridges, andfences or similar perimeter structures, andautomotive equipment (other than automotive equipment designed for use on highways or streets),and property not included in another class in this schedule that is a waterway or a land improvement (other than landscaping, clearing or levelling land) used in connection with an amusement park.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/82-265, s. 6Property not included in Class 22 but that would otherwise be included in that class if that class were read without reference to paragraphs (a) and (b) thereof.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 23Property acquired after 1987 and before February 26, 1992 that is not included in Class 29, but that would otherwise be included in that Class if that Class were read without reference to subparagraphs (b)(iii) and (v) and paragraph (c) thereof.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 23; SOR/94-169, s. 10Property acquired after 1987 and before 1990 that is a powered industrial lift truck or property described in paragraph (b) or (f) of Class 10 and that is property not included in Class 29 but that would otherwise be included in that class if that class were read without reference to paragraph (c) thereof.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 23Property (other than property included in Class 41.1, 41.2, 57 or 58)not included in Class 28 that would otherwise be included in that Class if that Class were read without reference to paragraph (a) of that Class, and if subparagraphs (e)(i) to (iii) of that Class were read as follows:property that was acquired before the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (g), (k), (l) or (r) of that Class or would have been so included in that Class if it had been acquired after the 1971 taxation year, and property that would, but for this Class, be included in Class 41 because of subsection 1102(8) or (9),property that was acquired before the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (m) of that Class, orproperty that was acquired after the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (g), (k), (l) or (r) of that Class, and property that would, but for this Class, be included in Class 41 because of subsection 1102(8) or (9);”that is the portion, expressed as a percentage determined by reference to capital cost, of property thatwould, but for this Class, be included in Class 10 because of paragraph (g), (k) or (l) of that Class, or that is included in this Class because of subsection 1102(8) or (9),is not described in paragraph (a) or (a.2),was acquired by the taxpayer principally for the purpose of gaining or producing income from one or more mines that are operated by the taxpayer and situated in Canada, and that became available for use for the purpose of subsection 13(26) of the Act in a taxation year, andhad not, before it was acquired by the taxpayer, been used for any purpose by any person or partnership with whom the taxpayer was not dealing at arm’s length,where that percentage is determined by the formula100 × (([A - (B × 365 / C)]) / A)whereAis the total of all amounts each of which is the capital cost of a property of the taxpayer that became available for use for the purpose of subsection 13(26) of the Act in the year and that is described in subparagraphs (i) to (iv) in respect of the mine or mines, as the case may be,Bis 5% of the taxpayer’s gross revenue from the mine or mines, as the case may be, for the year, andCis the number of days in the year;thatis property that would, but for this Class, be included in Class 10 because of paragraph (g), (k) or (l) of that Class or that is included in this Class because of subsection 1102(8) or (9),was acquired by the taxpayer in a taxation year principally for the purpose of gaining or producing income from one or more mines each of whichis one or more wells operated by the taxpayer for the extraction of material from a deposit of bituminous sands or oil shales, operated by the taxpayer and situated in Canada,was the subject of a major expansion after March 6, 1996, andis a mine in respect of which the Minister, in consultation with the Minister of Natural Resources, determines that the greatest designed capacity of the mine, measured in volume of oil that is not beyond the crude oil stage or its equivalent, immediately after the expansion was not less than 25% greater than the greatest designed capacity of the mine immediately before the expansion,was acquired by the taxpayerafter March 6, 1996,before the completion of the expansion, andin the course of and principally for the purposes of the expansion, andhad not, before it was acquired by the taxpayer, been used for any purpose by any person or partnership with whom the taxpayer was not dealing at arm’s length;that is property included in this Class because of subsection 1102(8) or (9), other than property described in paragraph (a) or (a.2) or the portion of property described in paragraph (a.1);that is property, other than property described in subsection 1101(2c),described in paragraph (f.1), (g), (j), (k), (l), (m), (r), (t) or (u) of Class 10 that would be included in that Class if this Schedule were read without reference to this paragraph, orthat is a vessel, including the furniture, fittings, radio communication equipment and other equipment attached thereto, that is designed principally for the purpose ofdetermining the existence, location, extent or quality of accumulations of petroleum, natural gas or mineral resources, ordrilling oil or gas wells,and that was acquired by the taxpayer after 1987 other than property that was acquired before 1990pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,that was under construction by or on behalf of the taxpayer on June 18, 1987, orthat is machinery and equipment that is a fixed and integral part of property that was under construction by or on behalf of the taxpayer on June 18, 1987;acquired by the taxpayer after May 8, 1972, to be used directly or indirectly by the taxpayer in Canada primarily in Canadian field processing, where the property would be included in Class 29 ifClass 29 were read without reference tothe words “property included in Class 41 solely because of paragraph (c) or (d) of that Class or”,its subparagraphs (b)(iii) and (v), andits paragraph (c),subsection 1104(9) were read without reference to paragraph (k) of that subsection, andthis Schedule were read without reference to this Class, Class 39 and Class 43; oracquired by the taxpayer after December 5, 1996 (otherwise than pursuant to an agreement in writing made before December 6, 1996) to be leased, in the ordinary course of carrying on a business in Canada of the taxpayer, to a lessee who can reasonably be expected to use, directly or indirectly, the property in Canada primarily in Canadian field processing carried on by the lessee, where the property would be included in Class 29 ifClass 29 were read without reference tothe words “property included in Class 41 solely because of paragraph (c) or (d) of that Class or”,its subparagraphs (b)(iii) and (v), andits paragraph (c), andthis Schedule were read without reference to this Class, Class 39 and Class 43.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/90-22, s. 23; SOR/94-169, s. 11; SOR/97-377, s. 11(E); SOR/98-97, s. 5; SOR/99-179, s. 15; SOR/2000-327, s. 6; SOR/2001-295, s. 9(E); SOR/2005-371, s. 11; SOR/2009-115, s. 6; SOR/2011-9, s. 7; SOR/2011-195, s. 9(F); 2013, c. 40, s. 1172024, c. 15, s. 88Oil sands property (other than specified oil sands property or property included in Class 57 or 58) thatis acquired by a taxpayer after March 18, 2007 and before 2016 and that if acquired before March 19, 2007, would be included in paragraphs (a), (a.1) or (a.2) of Class 41, oris acquired by a taxpayer after 2015 and that if acquired before March 19, 2007 would be included in Class 41.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2011-9, s. 82024, c. 15, s. 89Property, other than specified oil sands property, eligible mine development property or property included in Class 57 or 58,that is acquired by a taxpayer after March 20, 2013 and before 2021 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41; orthat is acquired by a taxpayer after 2020 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 40, s. 1182024, c. 15, s. 90Property that isfibre-optic cable; ortelephone, telegraph or data communication equipment that is a wire or cable (other than a cable included in this class because of paragraph (a)), acquired after February 22, 2005, and that has not been used, or acquired for use, for any purpose before February 23, 2005.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-140, s. 28; SOR/2006-117, s. 11Property acquired after February 25, 1992 (other than property included in Class 57 or 58) thatis not included in Class 29 or 53, but that would otherwise be included in Class 29 if that Class were read without reference to its subparagraphs (b)(iii) and (v) and paragraph (c); oris propertythat is described in paragraph (k) of Class 10 and that would be included in that Class if this Schedule were read without reference to this paragraph and paragraph (b) of Class 41, andthat, at the time of its acquisition, can reasonably be expected to be used entirely in Canada and primarily for the purpose of processing ore extracted from a mineral resource located in a country other than Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-169, s. 12; SOR/97-377, s. 12; 2015, c. 36, s. 252024, c. 15, s. 91Property, other than reconditioned or remanufactured equipment, that would otherwise be included in Class 1, 2, 8 or 48 or in Class 17 because of paragraph (a.1) of that Classthat iselectrical generating equipment, including any heat generating equipment used primarily for the purpose of producing heat energy to operate the electrical generating equipment,equipment that generates both electrical and heat energy other than, for greater certainty, fuel cell equipment,fixed location fuel cell equipment that uses hydrogen generated only from internal, or ancillary, fuel reformation equipment,heat recovery equipment used prima- rily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated by equipment referred to in subparagraph (i) or (ii),district energy equipment that is part of a district energy system that uses thermal energy that is primarily supplied by electrical cogeneration equipment that would be property described in paragraphs (a) to (c) if read without reference to this subparagraph,control, feedwater and condensate systems and other equipment, if that property is ancillary to equipment described in any of subparagraphs (i) to (iii), oran addition to a property described in any of subparagraphs (i) to (iv),other than buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), transmission equipment, distribution equipment, fuel handling equipment that is not used to upgrade the combustible portion of the fuel and fuel storage facilities,thatis situated in Canada,isacquired by the taxpayer for use by the taxpayer for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, orleased by the taxpayer to a lessee for the use by the lessee for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, andhas not been used for any purpose before it was acquired by the taxpayer unlessthe property was depreciable property thatwas included in Class 34, 43.1 or 43.2 of the person from whom it was acquired, orwould have been included in Class 34, 43.1 or 43.2 of the person from whom it was acquired had the person made a valid election to include the property in Class 43.1 or 43.2, as the case may be, under paragraph 1102(8)(d) or 1102(9)(d), andthe property was acquired by the taxpayer not more than five years after the time it is considered to have become available for use, for the purpose of subsection 13(26) of the Act, by the person from whom it was acquired and remains at the same site in Canada as that at which that person used the property, andthat ispart of a system thatis used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy, or both electrical and heat energy, using only fuel that is eligible waste fuel, fossil fuel, producer gas, spent pulping liquor or any combination of those fuels,if the system is rated to generate more than three megawatts of electrical energy, meets the following condition on an annual basis:A ≥ (2 × B + C)/(D + E/3412)whereAis 11,000 BTU per kilowatt-hour,Bis the energy content of fossil fuel other than solution gas (expressed as the higher heating value of the fuel) consumed by the system in BTU,Cis the energy content of the eligible waste fuel, producer gas and spent pulping liquor (expressed as the higher heating value of the fuel) consumed by the system in BTU,Dis the gross electrical energy produced by the system in kilowatt-hours, andEis the net useful energy in the form of heat exported from the system to a thermal host in BTU, anduses fuel of which no more than 25% of the energy content (expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis, or[Repealed, 2022, c. 10, s. 44]equipment that is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy in a process all or substantially all of the energy input of which is thermal waste, other thanequipment that uses heat produced by a gas turbine that is part of the first stage of a combined cycle system, andequipment that, on the date of its acquisition, uses chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs), within the meaning assigned by the Ozone-Depleting Substances Regulations, 1998,and property, other than reconditioned or remanufactured equipment, that would otherwise be included in another Class in this Schedulethat isproperty that meets the following conditions :it is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of heating an actively circulated liquid or gas and isactive solar heating equipment, including such equipment that consists of above ground solar collectors, solar energy conversion equipment, solar water heaters, thermal energy storage equipment, control equipment and equipment designed to interface solar heating equipment with other heating equipment,equipment that is part of a ground source heat pump system that transfers heat to or from the ground or groundwater (but not to or from surface water such as a river, a lake or an ocean) and that, at the time of installation, meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), energy conversion equipment, thermal energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating or cooling equipment, orequipment that is part of an air-source heat pump system that transfers heat from the outside air, including refrigerant piping, energy conversion equipment, thermal energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating and cooling equipment, andit is not a building, part of a building (other than a solar collector that is not a window and that is integrated into a building), energy equipment that backs up equipment described in subclause (A)(I), (II) or (III) nor equipment that distributes heated or cooled air or water in a building,a hydro-electric installation of a producer of hydro-electric energy, where that installationhas, if acquired after February 21, 1994 and before December 11, 2001, an annual average generating capacity not exceeding 15 megawatts upon completion of the site development, or, if acquired after December 10, 2001, a rated capacity at the hydro-electric installation site that does not exceed 50 megawatts, andis the electrical generating equipment and plant (including structures) of that producer including a canal, a dam, a dyke, an overflow spillway, a penstock, a powerhouse (complete with electrical generating equipment and other ancillary equipment), control equipment, fishways or fish bypasses, and transmission equipment,other than distribution equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),an addition or alteration, which is acquired after February 21, 1994 and before December 11, 2001, to a hydro-electric installation that is described in subparagraph (ii) or that would be so described if that installation were acquired by the taxpayer after February 21, 1994, and which results in an increase in generating capacity, if the resulting annual average generating capacity of the hydro-electric installation does not exceed 15 megawatts,an addition or alteration, which is acquired after December 10, 2001, to a hydro-electric installation that is described in subparagraph (ii) or that would be so described if that installation were acquired by the taxpayer after February 21, 1994, and which results in an increase in generating capacity, if the resulting rated capacity at the hydro-electric installation site does not exceed 50 megawatts,heat recovery equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of conserving energy, reducing the requirement to acquire energy or extracting heat for sale, by extracting for reuse thermal waste that is generated directly in an industrial process (other than an industrial process that generates or processes electrical energy), including such equipment that consists of heat exchange equipment, compressors used to upgrade low pressure steam, vapour or gas, waste heat boilers and other ancillary equipment such as control panels, fans, instruments or pumps, but not including property that is employed in re-using the recovered heat (such as property that is part of the internal heating or cooling system of a building or electrical generating equipment) or is a building,a fixed location device that is a wind energy conversion system thatis used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy, andconsists of a wind-driven turbine, electrical generating equipment and related equipment, includingcontrol and conditioning equipment,support structures,a powerhouse complete with other ancillary equipment, andtransmission equipment,other than distribution equipment, auxiliary electrical generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),fixed location photovoltaic equipment that is used by the taxpayer, or a lessee of the taxpayer, primarily for the purpose of generating electrical energy from solar energy if the equipment consists of solar cells or modules and related equipment including inverters, control and conditioning equipment, support structures and transmission equipment, but not includinga building or a part of a building (other than a solar cell or module that is integrated into a building),auxiliary electrical generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i), anddistribution equipment,equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy or heat energy, or both electrical and heat energy, solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of completing a well (including the wellhead and production string), or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, distribution equipment, equipment described in subclause (i)(A)(II), property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its paragraph (a.1),equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of collecting landfill gas or digester gas, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), fans, compressors, storage tanks, heat exchangers and related equipment used to collect gas, to remove non-combustibles and contaminants from the gas or to store the gas, but not including property otherwise included in Class 10 or 17,equipment thatis used by the taxpayer, or by a lessee of the taxpayer, for the sole purpose of generating heat energy, not using any fuel other than eligible waste fuel, fossil fuel, producer gas or a combination of those fuels,uses fuel of which no more than 25% of the energy content (expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis,may includefuel handling equipment used to upgrade the combustible portion of the fuel,control, feedwater and condensate systems, andother ancillary equipment, anddoes not includeequipment used for the purpose of producing heat energy to operate electrical generating equipment,buildings or other structures,heat rejection equipment (such as condensers and cooling water systems),fuel storage facilities,other fuel handling equipment, andproperty otherwise included in Class 10 or 17,an expansion engine with one or more turbines, or cylinders, that convert the compression energy in pressurized natural gas into shaft power that generates electricity, including the related electrical generating equipment and ancillary controls, where the expansion engineis part of a system that is installedon a distribution line of a distributor of natural gas, oron a branch distribution line of a taxpayer primarily engaged in the manufacturing or processing of goods for sale or lease if the branch line is used to deliver natural gas directly to the taxpayer’s manufacturing or processing facility, andis used instead of a pressure reducing valve,equipment all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to produce liquid biofuel, including storage, materials handling and ash-handling equipment and equipment used to remove non-combustibles and contaminants from the fuels produced, but not includingequipment used to produce spent pulping liquor,equipment used for the collection or transportation of specified waste material or carbon dioxide,equipment used for the transmission or distribution of liquid biofuel,property that would otherwise be included in Class 17,automotive vehicles, andbuildings or other structures,fixed location fuel cell equipment used by the taxpayer, or by a lessee of the taxpayer, that uses hydrogen generated only from ancillary electrolysis equipment (or, if the fuel cell is reversible, the fuel cell itself) using electricity all or substantially all of which is generated by using kinetic energy of flowing water or wave or tidal energy or by geothermal, photovoltaic, wind energy conversion, or hydro-electric equipment, of the taxpayer or the lessee, and equipment ancillary to the fuel cell equipment other than buildings or other structures, transmission equipment, distribution equipment, auxiliary electrical generating equipment and property otherwise included in Class 10 or 17,property that is part of a system that is used by the taxpayer, or by a lessee of the taxpayer, primarily to produce and store biogas, including equipment that is an anaerobic digester reactor, a buffer tank, a pre-treatment tank, biogas piping, a fan, a compressor, a heat exchanger, a biogas storage tank and equipment used to remove non-combustibles and contaminants from the gas, but not includingproperty (other than a buffer tank) that is used to collect, move or store organic waste,equipment used to process the residue after digestion or to treat recovered liquids,buildings or other structures, andproperty otherwise included in Class 10 or 17,property that is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electricity using kinetic energy of flowing water or wave or tidal energy, including support structures, control and conditioning equipment, submerged cables and transmission equipment, but not including buildings, distribution equipment, auxiliary electricity generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that class were read without reference to its subparagraph (a.1)(i),district energy equipment thatis used by the taxpayer or by a lessee of the taxpayer,is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraphs (i), (iv), (vii) or (ix) or would be described in those subparagraphs if owned by the taxpayer, andis not a building,equipment thatis used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating producer gas (other than producer gas that is to be converted into liquid fuels or chemicals),uses feedstock of which no more than 25% of the energy content (expressed as the higher heating value of the feedstock) is from fossil fuel, as determined on an annual basis,may includerelated piping (including fans and compressors),air separation equipment,storage equipment,equipment used for drying or shredding feedstock,ash-handling equipment,equipment used to upgrade the producer gas into biomethane, andequipment used to remove non-combustibles and contaminants from the producer gas, anddoes not includebuildings or other structures,heat rejection equipment (such as condensers and cooling water systems),equipment used to convert producer gas into liquid fuels or chemicals, andproperty otherwise included in Class 10 or 17,equipment used by the taxpayer, or by a lessee of the taxpayer, for the purpose of charging electric vehicles, including charging stations, transformers, distribution and control panels, circuit breakers, conduits and related wiring, ifthe equipment is situatedon the load side of an electricity meter used for billing purposes by a power utility, oron the generator side of an electricity meter used to measure electricity generated by the taxpayer or the lessee, as the case may be,more than 75 per cent of the electrical equipment capacity is dedicated to charging electric vehicles, andthe equipment isan electric vehicle charging station (other than a building) that supplies more than 10 kilowatts of continuous power, orused primarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power,fixed location energy storage property thatis used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of storing and discharging electrical energyincluding batteries, compressed air energy storage, flywheels, ancillary equipment (including control and conditioning equipment) and related structures, andnot including buildings, pumped hydroelectric storage, hydro electric dams and reservoirs, property used solely for backup electrical energy, batteries used in motor vehicles, fuel cell systems where the hydrogen is produced via steam reformation of methane and property otherwise included in Class 10 or 17, andeitherthe electrical energy to be stored and discharged is generated from other property that is described in paragraph (c) or in any other subparagraph of this paragraph, ormeets the condition that the efficiency of the electrical energy storage system that includes the property – computed by reference to the quantity of electrical energy supplied to and discharged from the electrical energy storage system – is greater than 50%, anda pumped hydroelectric energy storage installation all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to store and discharge electrical energy including reversing turbines, transmission equipment, dams, reservoirs and related structures, and that meets the condition in either subclause (d)(xviii)(B)(I) or (II) in this Class, but not includingproperty used solely for backup electrical energy, andbuildings,equipment all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to produce solid biofuel, including storage, materials handling and ash-handling equipment, but not includingequipment used to make wood chips, hog fuel or black liquor,property that would otherwise be included in Class 17,automotive vehicles, andbuildings and other structures,equipment used by the taxpayer, or by a lessee of the taxpayer, to dispense hydrogen for use in automotive equipment powered by hydrogen, including vaporization, compression, cooling and storage equipment, but not includingequipment used for the production or transmission of hydrogen,equipment used for the transmission or distribution of electricity,automotive vehicles,auxiliary electrical generating equipment, andbuildings and other structures, orequipment all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to produce hydrogen through electrolysis of water, including electrolysers, rectifiers and other ancillary electrical equipment, water treatment and conditioning equipment and equipment used for hydrogen compression and storage, but not includingequipment used for the transmission or distribution of hydrogen,equipment used for the transmission or distribution of electricity,automotive vehicles,auxiliary electrical generating equipment, andbuildings and other structures, andthatis situated in Canada, including property described in subparagraph (d)(v) or (xiv) that is installed in the exclusive economic zone of Canada,isacquired by the taxpayer for use by the taxpayer for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, orleased by the taxpayer to a lessee for the use by the lessee for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, andhas not been used for any purpose before it was acquired by the taxpayer unlessthe property was depreciable property thatwas included in Class 34, 43.1 or 43.2 of the person from whom it was acquired, orwould have been included in Class 34, 43.1 or 43.2 of the person from whom it was acquired had the person made a valid election to include the property in Class 43.1 or 43.2, as the case may be, under paragraph 1102(8)(d) or 1102(9)(d), andthe property was acquired by the taxpayer not more than five years after the time it is considered to have become available for use, for the purpose of subsection 13(26) of the Act, by the person from whom it was acquired and remains at the same site in Canada as that at which that person used the property.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/97-377, s. 13; SOR/2000-327, s. 7; SOR/2001-295, s. 10; SOR/2005-371, s. 12; SOR/2005-415, s. 2; err.(F), Vol. 140, No. 12; SOR/2006-117, s. 12; SOR/2006-249, s. 2; SOR/2009-115, ss. 7, 12; 2010, c. 25, s. 90; SOR/2010-93, s. 34(F); 2011, c. 24, s. 101; 2012, c. 31, s. 70; 2013, c. 40, s. 119; 2014, c. 39, s. 90; 2017, c. 33, s. 1042019, c. 29, s. 612022, c. 10, s. 442022, c. 19, s. 922024, c. 15, s. 922024, c. 17, s. 79Property that is acquired after February 22, 2005 and before 2025 (other than property that was included, before it was acquired, in another class in this Schedule by any taxpayer) and that is property that would otherwise be included in Class 43.1otherwise than because of paragraph (d) of that Class; orbecause of paragraph (d) of that Class, if[Repealed, 2022, c. 10, s. 45]subclauses (d)(xvii)(C)(I) and (II) of that Class were read as follows:an electric vehicle charging station (other than a building) that supplies at least 90 kilowatts of continuous power, orusedprimarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power, andin connection with one or more electric vehicle charging stations (other than buildings) each of which supplies at least 90 kilowatts of continuous power, orandclause (d)(xviii)(B) of that Class were read without reference to its subclause (II).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2006-117, s. 13; SOR/2009-115, s. 8; 2018, c. 12, s. 452019, c. 29, s. 622022, c. 10, s. 45Property that is a patent, or a right to use patented information for a limited or unlimited period.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-170, s. 5Property acquired after March 22, 2004 and before March 19, 2007 (other than property acquired before 2005 in respect of which an election is made under subsection 1101(5q)) that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is principally or is used principally aselectronic process control or monitor equipment;electronic communications control equipment;systems software for equipment referred to in paragraph (a) or (b); ordata handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-414, s. 6; SOR/2009-115, s. 9; SOR/2010-93, s. 35(F)Property acquired after March 22, 2004 that is data network infrastructure equipment, and systems software for that equipment, that would, but for this Class, be included in Class 8 because of paragraph (i) of that Class.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2005-414, s. 6; SOR/2010-93, s. 36(F)Property that istransmission or distribution equipment (which may include for this purpose a structure) acquired after February 22, 2005 and that is used for the transmission or distribution of electrical energy, other thanproperty that is a building, andproperty that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005; orequipment acquired after March 18, 2007 that is part of a liquefied natural gas facility that liquefies or regasifies natural gas, including controls, cooling equipment, compressors, pumps, storage tanks, vaporizers and ancillary equipment, loading and unloading pipelines on the facility site used to transport liquefied natural gas between a ship and the facility, and related structures, other than property that isacquired for the purpose of producing oxygen or nitrogen,a breakwater, a dock, a jetty, a wharf, or a similar structure, ora building.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2006-117, s. 14; SOR/2009-115, s. 10Property acquired after February 22, 2005 that is a combustion turbine (including associated burners and compressors) that generates electrical energy, other thanelectrical generating equipment described in any of paragraphs (f) to (h) of Class 8;property acquired before 2006 in respect of which an election is made under subsection 1101(5t); andproperty that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2006-117, s. 14Property (other than property included in Class 57 or 58) that is a pipeline, including control and monitoring devices, valves and other equipment ancillary to the pipeline, thatis acquired after February 22, 2005, is used for the transmission (but not the distribution) of petroleum, natural gas or related hydrocarbons, and is nota pipeline described in subparagraph (l)(ii) of Class 1,property that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005,equipment included in Class 7 because of paragraph (j) of that Class, ora building or other structure; oris acquired after February 25, 2008, is used for the transmission of carbon dioxide, and is notequipment included in Class 7 because of paragraph (k) of that Class, ora building or other structure.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2006-117, s. 14; SOR/2009-126, s. 92024, c. 15, s. 93Property acquired after March 18, 2007 that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is included in Class 52 or that is principally or is used principally aselectronic process control or monitor equipment;electronic communications control equipment;systems software for equipment referred to in paragraph (a) or (b); ordata handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-115, s. 11; SOR/2009-126, s. 10; SOR/2010-93, s. 37(F)Property acquired after March 18, 2007 that is a pipeline, including control and monitoring devices, valves and other equipment ancillary to the pipeline, used for the distribution (but not the transmission) of natural gas, other thana pipeline described in subparagraph (l)(ii) of Class 1 or in Class 49;property that has been used or acquired for use for any purpose by a taxpayer before March 19, 2007; anda building or other structure.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-115, s. 11Property acquired by a taxpayer after January 27, 2009 and before February 2011 thatis general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is principally or is used principally aselectronic process control or monitor equipment,electronic communications control equipment,systems software for equipment referred to in paragraph (i) or (ii), ordata handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment);is situated in Canada;has not been used, or acquired for use, for any purpose whatever before it is acquired by the taxpayer; andis acquired by the taxpayerfor use in a business carried on by the taxpayer in Canada or for the purpose of earning income from property situated in Canada, orfor lease by the taxpayer to a lessee for use by the lessee in a business carried on by the lessee in Canada or for the purpose of earning income from property situated in Canada.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2009-126, s. 11; SOR/2009-155, s. 1Property acquired after 2015 and before 2026 (other than property included in Class 57 or 58) that is not included in Class 29, but that would otherwise be included in that class ifsubparagraph (a)(ii) of that Class were read without reference to “in Canadian field processing carried on by the lessee or”; andthat Class were read without reference to its subparagraphs (b)(iv) to (vi) and paragraph (c).[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2015, c. 36, s. 262024, c. 15, s. 94Property that is a zero-emission vehicle that is not included in Class 16 or 55.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2019, c. 29, s. 63Property that is a zero-emission vehicle that would otherwise be included in Class 16.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2019, c. 29, s. 63Property that is acquired, and becomes available for use, by a taxpayer after March 1, 2020 and before 2028, if the propertyis eitherautomotive equipment (other than a motor vehicle) that is fully electric or powered by hydrogen, oran addition or alteration made by the taxpayer to automotive equipment (other than a motor vehicle) to the extent it causes the automotive equipment to become fully electric or powered by hydrogen; andwould be accelerated investment incentive property of the taxpayer if subsection 1104(4) were read without its exclusion for property included in Class 56.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2021, c. 23, s. 93Property that is part of a CCUS project of a taxpayer and that isequipment that is not expected to be used for hydrogen production, natural gas processing or acid gas injection and thatis not oxygen production equipment and is to be used solely for capturing carbon dioxidethat would otherwise be released into the atmosphere, ordirectly from the ambient air,prepares or compresses captured carbon for transportation,generates or distributes electrical energy, heat energy or a combination of electrical and heat energy, that directly and solely supports a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, and, for greater certainty, not including equipment thatsupports the qualified CCUS project indirectly by way of an electrical utility grid, orexpands the capacity of existing equipment that supports the qualified CCUS project and that distributes electrical energy, heat energy or a combination of electrical and heat energy,is equipment that solely supports a qualified CCUS project and transmits electrical energy from electrical generation equipment described in subparagraph (iii) to the qualified CCUS project, ordelivers, collects, recovers, treats or recirculates water, or a combination of any of those activities, that solely supports a qualified CCUS project;equipment that is to be used solely for transportation of captured carbon, including equipment used for the transportation system safety and integrity;equipment that is to be used solely for storage of captured carbon in a geological formation, including equipment used for the storage system safety and integrity, but not including equipment used for enhanced oil recovery;property that is physically and functionally integrated with the equipment described in any of paragraphs (a) to (c) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in any of paragraphs (a) to (c) within a CCUS process as part ofan electrical system,a fuel supply system,a liquid delivery and distribution system,a cooling system,a process material storage and handling and distribution system,a process venting system,a process waste management system, ora utility air or nitrogen distribution system;equipment used for system safety and integrity or as part of a control or monitoring system solely to support the equipment described in any of paragraphs (a) to (d); ora building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in any of paragraphs (a) to (e); orproperty that is used solely toconvert another property that would not otherwise be described in any of paragraphs (a) to (f) if the conversion causes the other property to satisfy the description in any of paragraphs (a) to (f), orrefurbish property described in any of paragraphs (a) to (f) that is part of a CCUS project of the taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2024, c. 15, s. 952024, c. 17, s. 80Property that is part of a CCUS project of a taxpayer, and that isequipment to be used solely for using captured carbon in industrial production (including for enhanced oil recovery);property that is physically and functionally integrated with the equipment described in paragraph (a) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in paragraph (a) within a CCUS process as part ofan electrical system,a fuel supply system,a liquid delivery and distribution system,a cooling system,a process material storage and handling and distribution system,a process venting system,a process waste management system, ora utility air or nitrogen distribution system;equipment used as part of a control, monitoring or safety system solely to support the equipment described in paragraph (a) or (b);a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in any of paragraphs (a) to (c); orproperty that is used solely toconvert another property that would not otherwise be described in any of paragraphs (a) to (d) if the conversion causes the other property to satisfy the description in any of paragraphs (a) to (d), orrefurbish property described in any of paragraphs (a) to (d) that is part of a CCUS project of the taxpayer.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2024, c. 15, s. 95Intangible property (including property deemed to have been acquired under subsection 13(7.6) of the Act) that is not included in any other class and that isacquired for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery) in Canada, including property acquired as a result of undertaking environmental studies or community consultations (including studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery)); andnot acquired for the purpose of drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2024, c. 15, s. 95Intangible property (including property deemed to have been acquired under subsection 13(7.6) of the Act) not included in any other class that isacquired for the purposes ofdrilling or converting a well in Canada for the permanent storage of captured carbon (other than for enhanced oil recovery),drilling or completing a well for the permanent storage of captured carbon (other than for enhanced oil recovery) in Canada, building a temporary access road to the well or preparing a site in respect of the well, ordrilling or converting a well in Canada for the purposes of monitoring pressure changes or other phenomena in a geological formation in which captured carbon is permanently stored (other than for enhanced oil recovery); ora right, licence or privilegefor the purposes of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery), orto permanently store captured carbon in dedicated geological storage.[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2024, c. 15, s. 95(Section 1100)Capital Cost Allowances, Class 13
For the purposes of paragraph 1100(1)(b), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of the capital cost of property of Class 13 in Schedule II is the lesser ofthe aggregate of each amount determined in accordance with section 2 of this Schedule that is a prorated portion of the part of the capital cost to him, incurred in a particular taxation year, of a particular leasehold interest; andthe undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100) of property of the class.
Subject to section 3 of this Schedule, the prorated portion for the year of the part of the capital cost, incurred in a particular taxation year, of a particular leasehold interest is the lesser of1/5 of that part of the capital cost; andthe amount determined by dividing that part of the capital cost by the number of 12-month periods (not exceeding 40 such periods) falling within the period commencing with the beginning of the particular taxation year in which the capital cost was incurred and ending with the day the lease is to terminate.
For the purpose of determining, under section 2 of this Schedule, the prorated portion for the year of the part of the capital cost, incurred in a particular taxation year, of a particular leasehold interest, the following rules apply:where an item of the capital cost of a leasehold interest was incurred before the taxation year in which the interest was acquired, it shall be deemed to have been incurred in the taxation year in which the interest was acquired;where, under a lease, a tenant has a right to renew the lease for an additional term, or for more than one additional term, after the term that includes the end of the particular taxation year in which the capital cost was incurred, the lease shall be deemed to terminate on the day on which the term next succeeding the term in which the capital cost was incurred is to terminate;the prorated portion for the year of the part of the capital cost, incurred in a particular taxation year, of a particular leasehold interest shall not exceed the amount, if any, remaining after deducting from that part of the capital cost the aggregate of the amounts claimed and deductible in previous years in respect thereof;where, at the end of a taxation year, the aggregate ofthe amounts claimed and deductible in previous taxation years in respect of a particular leasehold interest, andthe proceeds of disposition, if any, of part or all of that interestequals or exceeds the capital cost as of that time of the interest, the prorated portion of any part of that capital cost shall, for all subsequent years, be deemed to be nil; andwhere, at the end of a taxation year, the undepreciated capital cost to the taxpayer of property of Class 13 in Schedule II is nil, the prorated portion of any part of the capital cost as of that time shall, for all subsequent years, be deemed to be nil.
Where a taxpayer has acquired a property that would, if the property had been acquired by a person with whom the taxpayer was not dealing at arm’s length at the time the property was acquired, be a leasehold interest of that person, a reference in this Schedule to a leasehold interest shall, in respect of the taxpayer, include a reference to that property, and the terms and conditions of the leasehold interest of that property in respect of the taxpayer shall be deemed to be the same as those that would have applied in respect of that person had that person acquired the property.
[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1092, s. 21(F); SOR/94-140, s. 29; SOR/94-686, s. 66(F)(Sections 1100 and 1101)Capital Cost Allowances, Class 15
For the purposes of paragraph 1100(1)(f), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of property described in Class 15 in Schedule II is the lesser ofan amount equal toif the property is an accelerated investment incentive property acquired in the year,if the property is acquired before 2024, 1.5 times an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, andif the property is acquired after 2023, 1.25 times an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, andin any other case, an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, andthe undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100 for the taxation year) of property of that class.
Where all the property of the class is used in connection with one timber limit or section thereof, the rate per cord, board foot or cubic metre is the amount determined by dividingthe undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100 for the taxation year and computed as if subparagraph 1(a)(i) did not apply) of the propertybythe number of cords, board feet or cubic metres of timber in the limit or section thereof as of the commencement of the taxation year, obtained by deducting the quantity cut up to that time from the amount shown by the latest cruise.
Where a part of the property of the class is used in connection with one timber limit or a section thereof and a part is used in connection with another limit or section thereof, a separate rate shall be computed for each part of the property, in the manner provided in section 2 of this Schedule, as though each part of the property were the taxpayer’s only property of that class.
[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1092, s. 22(F); SOR/94-140, ss. 30, 312019, c. 29, s. 642019, c. 29, s. 65(Sections 1100, 1101 and 1104)Capital Cost Allowances, Industrial Mineral Mines
For the purposes of paragraph 1100(1)(g), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of a property described in that paragraph that is an industrial mineral mine or a right to remove industrial minerals from an industrial mineral mine is the lesser ofan amount computed on the basis of a rate (computed under section 2 or 3 of this Schedule, as the case may be) per unit of mineral mined in the taxation year; andthe undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100) of the mine or right.
If the taxpayer has not been granted an allowance in respect of the mine or right for a previous taxation year, the rate for a taxation year is determined by the formulaA(B – C)/DwhereAis1.5, if the property is an accelerated investment incentive property acquired before 2024,1.25, if the property is an accelerated investment incentive property acquired after 2023, and1, in any other case;Bis the capital cost of the mine or right to the taxpayer;Cis the residual value, if any, of the mine or right; andDisif the taxpayer has acquired a right to remove only a specified number of units, the specified number of units of material that the taxpayer acquired a right to remove, andin any other case, the number of units of commercially mineable material estimated as being in the mine when the mine or right was acquired.
Where the taxpayer has been granted an allowance in respect of the mine or right in a previous taxation year, the rate for the taxation year isif paragraph (b) does not apply,if section 2 applied in the previous year to determine the rate employed to determine the allowance for the year, the rate that would have been determined under section 2 if paragraph (c) of the description of A in that section applied, andin any other case, the rate employed to determine the allowance for the most recent year for which an allowance was granted; andwhere it has been established that the number of units of material remaining to be mined in the previous taxation year was in fact different from the quantity that was employed in determining the rate for the previous year referred to in paragraph (a), or where it has been established that the capital cost of the mine or right is substantially different from the amount that was employed in determining the rate for that previous year, a rate determined by dividing the amount that would be the undepreciated capital cost to the taxpayer of the mine or right as of the commencement of the year if paragraph (c) of the description of A in section 2 had applied in respect of each previous taxation year minus the residual value, if any, byin any case where the taxpayer has acquired a right to remove only a specified number of units, the number of units of commercially mineable material that, at the commencement of the year, he had a right to remove, andin any other case, the number of units of commercially mineable material estimated as remaining in the mine at the commencement of the year.
In lieu of the aggregate of deductions otherwise allowable under this Schedule, a taxpayer may elect that the deduction for the taxation year be the lesser of$100; andthe amount received by him in the taxation year from the sale of mineral.
In this Schedule, residual value means the estimated value of the property if all commercially mineable material were removed.
[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1092, s. 23(F)2019, c. 29, s. 662019, c. 29, s. 67(Sections 1100 and 1101)Capital Cost Allowances, Timber Limits and Cutting Rights
For the purposes of paragraph 1100(1)(e), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of the capital cost to him of a property, other than a timber resource property, that is a timber limit or a right to cut timber from a limit is the lesser ofthe aggregate ofan amount computed on the basis of a rate (determined under section 2 or 3 of this Schedule) per cord, board foot or cubic metre cut in the year, andthe lesser of1/10 of the amount expended by the taxpayer after the commencement of his 1949 taxation year that is included in the capital cost to him of the timber limit or right, for surveys, cruises or preparation of prints, maps or plans for the purpose of obtaining a licence or right to cut timber, andthe amount expended as described in clause (A) minus the aggregate of amounts deducted under this subparagraph in computing the income of the taxpayer in previous years; andthe undepreciated capital cost to the taxpayer as of the end of the year (before making any deduction under section 1100 for the year) of the timber limit or right.
If the taxpayer has not been granted an allowance in respect of the limit or right for a previous taxation year, the rate for a taxation year is an amount determined by the formulaA(B – (C +D))/EwhereAis1.5, if the property is an accelerated investment incentive property acquired before 2024,1.25, if the property is an accelerated investment incentive property acquired after 2023, and1, in any other case;Bis the capital cost of the mine or right to the taxpayer;Cis the residual value of the timber limit;Dis the total of all amounts expended by the taxpayer after the commencement of the taxpayer’s 1949 taxation year that are included in the capital cost to the taxpayer of the timber limit or right, for surveys, cruises or preparation of prints, maps or plans for the purpose of obtaining a licence or right to cut timber; andEis the quantity of timber in the limit or the quantity of timber the taxpayer has obtained a right to cut, as the case may be, (expressed in cords, board feet or cubic metres) as shown by a cruise.
If the taxpayer has been granted an allowance in respect of the limit or right in a previous taxation year, the rate for a taxation year isif paragraph (b) does not apply,if section 2 applied in the previous year to determine the rate employed to determine the allowance for the year, the rate that would have been determined under section 2 if paragraph (c) of the description of A in that section applied, andin any other case, the rate employed to determine the allowance for the most recent year for which an allowance was granted; andwhere it has been established that the quantity of timber that was in the limit or that the taxpayer had a right to cut was in fact substantially different from the quantity that was employed in determining the rate for the previous year referred to in paragraph (a), or where it has been established that the capital cost of the limit or right is substantially different from the amount that was employed in determining the rate for that previous year, a rate determined by dividingthe amount that would be the undepreciated capital cost to the taxpayer of the limit or right as of the commencement of the year if paragraph (c) of the description of A in section 2 had applied in respect of each previous taxation year, minus the residual value,bythe estimated remaining quantity of timber that is in the limit or that the taxpayer has a right to cut, as the case may be, (expressed in cords, board feet or cubic metres) at the commencement of the year.
In lieu of the deduction otherwise determined under this Schedule, a taxpayer may elect that the deduction for a taxation year be the lesser of$100; andthe amount received by him in the taxation year from the sale of timber.
In this Schedule, residual value means the estimated value of the property if the merchantable timber were removed.
[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/86-1092, s. 24(F); SOR/94-140, ss. 32 to 342019, c. 29, s. 682019, c. 29, s. 69(Section 4400)Publicly-Traded Shares or SecuritiesColumn IColumn IIA-1 Steel & Iron Foundry (Vancouver) Ltd.Cl A.6.75A-1 Steel & Iron Foundry (Vancouver) Ltd.Cl B.6.50Aabro Mining & Oils Ltd.Com.Abbey Life Insurance Company of CanadaCom.Abcourt Metals Inc.Com..28Aberdeen Minerals Ltd.Com.Abeta Mining Corp. Ltd.Com..05Abex Mines Ltd.Com..01Abino Gold Mines Ltd.Com..03Abitibi Asbestos Mining Co. Ltd.Com.1.75Abitibi Copper Mines Ltd.Com..13Abitibi Paper Co. Ltd.Com.7.25Abitibi Paper Co. Ltd.7½ pc cu A pr.49.50Abstainers Insurance Co.Com.11.00Acadia Uranium Mines Ltd.Com..06Accra Explorations LimitedCom..07Accurate Calculations Ltd.Com.1.13Acheron Mines Ltd.Com..16Acklands LimitedCom.7.50Acklands Limited6 pc cu pr.15.75Acklands Limited6 pc cu cv 2nd pr.11.25Acme Gas & Oil Co. Ltd.Com..22AconicCom..02Acres LimitedCom.11.63Acres Limited$7.20 pc A pr.40.00Acres LimitedWt.2.40Acroll Oil & Gas Ltd.Com..63Adanac Mining & Exploration Ltd.Com..46Adera Mining LimitedCom..33Admiral CorporationCom.18.50Admiral Mines LimitedCom..15Advance Red Lake Gold Mines Ltd.Com..04Advocate Mines Ltd.Com.1.80Aetna Investment Ltd.Com..85Afton Mines LimitedCom.1.21A.G.F. Management Ltd.Cl B pr.5.75AGF Special Fund Ltd.Com.3.00Agressive Mining LimitedCom..11Agnico Mines Ltd.Com.1.98Agra Industries Ltd.Com.9.63AGT Data Systems Ltd.Com.1.00AHED Music Corp. Ltd.Com.4.70Aiken Russet Red Lake Mines Ltd.Com..07Aimco Industries Ltd.Com.16.00A.I.S. Resources Ltd.Com.5.90Ajax Mercury Mines Ltd.Com..11Ajax Minerals LimitedCom..23Akaitcho Yellowknife Gold Mines Ltd.Com..45Alakon Metals LimitedCom..06Albany Oil and Gas Ltd.Com..45Albarmont Mines CorporationCom..27Albatros Gold Mines Ltd.Com.Alberta Copper Resources Ltd.Com..40Alberta Eastern Gas Ltd.Com.5.45Alberta Gas Trunk Line Co. Ltd.Com.49.75Alberta Gas Trunk Line Co. Ltd.4¾ pc cu C pr.76.00Alberta Gas Trunk Line Co. Ltd.53/8 pc cu cvD pr.138.00Alberta Gypsum Ltd.Com..15Alberta Natural Gas Co. Ltd.Com.20.00Alcan Aluminium Ltd.Com.18.88Alcan Aluminium Ltd.4 1/4 pc cu cv pr.26.75Alchib Development Ltd.Com..45Alcor Minerals LimitedCom..12Alexander Red Lake Mines Ltd.Com..03Algoma Central Railway Co.Com.8.25Algoma Steel Corp. Ltd. TheCom.13.38Algonquin Building Credits Ltd.Com.4.05Algonquin Building Credits Ltd.6 pc cu pr.4.00Alice Arm Mining Ltd.Com..11Alice Lake Mines LimitedCom..23Alina Mines & Oils Ltd.Com..80Aljo Mines Ltd.Com.Allarco Developments Inc.Com.4.80All Canadian-American Investments LimitedCom..55All-Can Holdings Ltd.Cl A.All-Can Holdings Ltd.Cl B.Allcop Mines Ltd.Com..02Alliance Building Corp. Ltd.Com.3.20Alliance Building Corp. Ltd.7 pc cu cv A pr.7.00Allied Mining Corp.Com.3.25Allied Roxana Minerals LimitedCom..65Allied Telemedia Ltd.Com..03Alminex Ltd.Com.5.35Alscope Consolidated Ltd.Com.1.25Altair Mining Corp. LimitedCom..10Aluminum Co. of Canada Ltd.4 pc cu 1st pr.18.00Aluminum Co. of Canada Ltd.4½ pc cu 2nd pr.36.13Alvija Mines Ltd.Com..07Alwin Mining Co. Ltd.Com..64Amalgamated Beau Belle Mines Ltd.Com..04Amalgamated Kirkland Mines Ltd.Com.Amalgamated Larder Mines Ltd.Com..49Amalgamated Properties Ltd.Com..70Amalgamated Rare Earth Mines Ltd.Com..07Amalgamated Resources Ltd.Com..03Amalta Oils & Minerals Ltd.Com..13Ambassador Development Corp. of Canada Ltd.Com..70Ambassador Mines Ltd.Com..09Amber Resources Ltd.Com..30Ameranium Mines Ltd.Com..06Americ Mines Ltd.Com..17American Chibougamau Mines Ltd.Com.American Copper & Smelting Ltd.Com.American Eagle Petroleums Ltd.Com..75American Leduc Petroleums Ltd.Com..09American Metropolitan Enterprises Ltd.Com.1.15American Quasar Petroleum Co.Com.4.80American Uranium LimitedCom.Amigo Mines Ltd.Com..06Anaconda Petroleum LimitedCom.Anchor Mines LimitedCom..23Anchor Petroleums Ltd.Com..04Andacollo Mining Co. Ltd.Com.Andex Mines Ltd.Com..30Angelus Petroleums 1965 Ltd.Com..23Anglo American Nickel Mining Corp. Ltd.Com.Anglo-Bomarc Mines LimitedCom..60Anglo-Canadian Pulp & Paper Mills Ltd.Com.4.70Anglo-Canadian Pulp & Paper Mills Ltd.4 1/2 pc cu cv pr.14.00Anglo-Canadian Telephone Co.4 1/2 pc cu pr.30.75Anglo-Canadian Telephone Co.$2.65 cu pr.34.00Anglo-Canadian Telephone Co.$2.90 cu pr.38.00Anglo-Canadian Telephone Co.$3.15 cu pr.42.63Anglo-Permanent Corporate Holdings LimitedCom.13.50Anglo-Rouyn Mines Ltd.Com..32Anglo United Development Corp. Ltd.Com..71Anglo Western Minerals Ltd.Com..17Angot Group Limited, TheCom.1.00Annmar Mining LimitedCom..05Ansil Mines Ltd.Com..01Anthes Imperial Limited5 1/2 pc cu A 1st pr.Anthes Imperial Limited5 1/2 pc cu B 1st pr.80.00Anthes Imperial Limited5 1/4 pc cu C 1st pr.80.00Anthonian Mining Corp. Ltd.Com..03Anthony Gas & Oil Explorations Ltd.Com.1.43Antoine Silver Mines Ltd.Com..04Anuk River Mines Ltd.Com..25Anuwon Uranium Mines Ltd.Com..02Aquablast IncorporatedCom.3.65Aquacare International Ltd.Com.Aquitaine Co. of Canada Ltd.Com.24.50Arcadia Explorations Ltd.Com..11Arctic Gold & Silver Mines Ltd.Com..09Arctic Yellowknife Mines Ltd.Com..03Ardel Explorations LimitedCom..08Ardo Mines Ltd.Com..16Ardo Mines Ltd.B wt.Argosy Mining Corp. Ltd.Com..45Argus Corporation LimitedCom.13.00Argus Corporation Limited$2.50 cu A pr.32.00Argus Corporation Limited$2.60 cu A pr.34.13Argus Corporation Limited$2.70 cu B pr.35.75Argus Corporation LimitedC pr.9.75Arjon Gold Mines Ltd.Com..01Arlington Silver Mines Ltd.Com..17Armore Mines Ltd.Com..14Arno Mines Ltd.Com..04Arrowhead Gold Mines Ltd.Com..01Asamera Oil Corporation Ltd.Com.18.50Asbestos Corporation Ltd.Com.25.50Ascopex Explorations Ltd.Com.Aselo Industries Ltd.Com..13Ashland Oil Canada Ltd.Com.11.88Ashland Oil Canada Ltd.6 pc cu cv pr.29.50Ashland Oil Inc.Com.20.38Aspen Grove Mines Ltd.Com..10Associated Porcupine Mines Ltd.Com..32Astonish Lake Uranium Mining Corp. Ltd.Com.Astrabrun Mines Ltd.Com..03Astral Communications Ltd.Com.1.97Atco Industries Ltd.Com.8.13Athabasca Columbia Resources Ltd.Com.1.65Athena Mines LimitedCom..08Atlanta Mines Ltd.Com.Atlantic Coast Copper Corp. Ltd.Com..46Atlantic Nickel Mines Ltd.Com..22Atlantic Richfield Co.Com.64.13Atlantic Sugar Refineries Co. LimitedCom.6.38Atlantic Sugar Refineries Co. LimitedA cu pr.15.00Atlantic Sugar Refineries Co. Limited5 pc cu pr.62.38Altantic Sugar Refineries Co. LimitedWt.1.40Atlantic Trust CompanyCom.Atlantic Tungsten Corp. Ltd.Com..17Atlas Explorations LimitedCom..32Atlas Yellowknife Mines Ltd.Com..05Attila Resources Ltd.Com.1.13Augdome Corp. Ltd.Com..19Augmitto Explorations Ltd.Com.August Porcupine Gold Mines Ltd.Com..02Aunor Gold Mines Ltd.Com.2.30Auscan Mining and Oil Corporation LimitedCom..90Austin Investment Corp. Ltd.Com..41Auto Electric Services Co. Ltd.Com.6.00Auto Marine Electric Ltd.Com.Auto Marine Electric Ltd.Pr..40Automotive Hardware LimitedCom.7.25Autotelic Industries Ltd.Com..65Ava Gold Mining Co. Ltd.Com.Avco CorporationCom.Avilla International Explorations Ltd.Com..28Avino Mines & Resources LimitedCom..33Avoca Mines Canada Ltd.Com..65Babine International Resources Ltd.Com..14Bahamas-Caribbean Development Corporation LimitedCom..16Baker Talc Ltd.Com..42Balco Forest Products Ltd.Com.8.25Bald Mountain Oil Co.Com..03Baldwin Consolidated Mines Ltd.Com..01Ballinderry Explorations LimitedCom..90Bamboo Creek Gold Mines Ltd.Com..80Banco Finance LimitedCl B.Bancroft Uranium Mines Ltd.Com.Band-Ore Gold Mines Ltd.Com..05Bankeno Mines Ltd.Com.6.40Bankfield Consolidated Mines Ltd.Com..02Bank of British ColumbiaCom.22.25Bank of MontrealCom.18.50Bank of Nova ScotiaCom.31.13Banner Porcupine Mines Ltd.Com.Banque Canadienne NationaleCom.14.00La Banque Provinciale du CanadaCom.13.75Bantam Mining Ltd.Com..40Barber-Ellis of Canada Ltd.Com.13.50Barber Oil CorporationCom.48.50Barbi Lake Copper Mines Ltd.Com..15Barcelona Traction Light & Power Co.Com..20Barclay Resources Ltd.Com.Barex-Trust, TheCom..20Barima Minerals Ltd.Com..01Barons Oil LimitedCom..05Barrington Exploration Corp. Ltd.Com..07Bartaco Industries LimitedCom.4.50Barvallee Mines Ltd.Com.Barymin Explorations Ltd.Com.1.20Base Metals Mining Corp. Ltd.Com..01Bashaw Leduc Oil & Gas LimitedCom..05Basic Resources International LimitedCom.3.30Baslen Petroleums Ltd.Com..07Bateman Bay Mining Co.Com..06Bathurst Norsemines Ltd.Com..85Bathurst Norsemines Ltd.A wt.Bathurst Paper Ltd.5 1/4 pc cu 1963 pr.6.75Baton Broadcasting Ltd.Com.14.88Bay Mills Ltd.Com.1.34Bay Mills Ltd.6 pc cu A 1st pr.3.05B.C. Turf LimitedCom.4.00Beacon Mining Co. Ltd.Com..05Bear International Industries Ltd.Com..19Beattie-Duquesne Mines Ltd.Com..04Beauce Placer Mining Co. Ltd.Com..01Beaumont Resources LimitedCom..09Beauport Holdings Ltd.Com..36Beaver Engineering Ltd.Com.6.50Beaver Lumber Co. Ltd.Com.19.50Beaver Lumber Co. Ltd.Cl A.19.38Beaver Lumber Co. Ltd.$1.40 cu pr.21.00Becker Milk Co. Ltd.Cl B pr.10.00Bel-Air Mining Ltd.Com..92Belcarra Explorations Ltd.Com.Belding-Corticelli LimitedCom.10.25Belding-Corticelli Limited7 pc cu pr.10.34Belding-Corticelli LimitedWt.2.80Belgium Standard Ltd.Com.15.50Belgium Standard Ltd.5 pc cu pr.Bell CanadaCom.46.88Bell Canada$3.20 cu cv pr.52.38Bell Canada$3.34 cu cv cl B pr.53.88Bellechasse Mining Corp Ltd.Com..04Belleterre Quebec Mines Ltd.Com..15Bellex Mines Ltd.Com..02Bell Knit Industries Ltd.Com..88Bell Molybdenum Mines Ltd.Com..14Belore Mines Ltd.Com..16Belra Explorations Ltd.Com.Benson Mines LimitedCom..14Berkley HotelCom.1.75Berncam International Industries Ltd.Com.6.13Bethlehem Copper Corporation Ltd.Com.18.00Betrust Investment Corporation Ltd.Com.16.50Betrust Investment Corporation Ltd.5 3/4 pc cu A pr.Big I Mines Ltd., TheCom.Big Jackpot Mines Ltd.Com..01Big Long Lac Gold Mining Co. Ltd.Com..01Big Nama Creek Mines Ltd.Com..09Big Town Copper Mines Ltd.Com.Bilmac Gold Mines Ltd.Com.Biltmore Hats LimitedCom.13.00Biltmore Hats LimitedCl A cu pr.10.50Bio-Millet LaboratoriesCom.Bird Construction Co. Ltd.Com.57.50Bird River Mines Co. Ltd.Com..65Biroco Kirkland Mines Ltd.Com..01Biron Bay Gold Mines Ltd.Com..23Bison Petroleum & Minerals Ltd.Com.9.10Black Bay Uranium Ltd.Com.Black Cricket Mines Ltd.Com..60Black Giant Mines Ltd.Com..30Black Hawk Mining Ltd.Com..50Black Photo Corporation Ltd.Com.4.85Blackwater Mines Ltd.Com..30Block Bros. Industries Ltd.Com.3.00Block Bros. Industries Ltd.A wt.5.00Block Bros. Industries Ltd.B wt.Blue Bonnets Raceway Inc.Com.2.05Blue Grass Uranium Mines Ltd.Com..01Blue Gulch Explorations LimitedCom..48Blue Star Mines LimitedCom..06Bluewater Oil & Gas Ltd.Com..90Bochawna Copper Mines Ltd.Com.Bock & Frère Ltée6 3/4 pc cu pr.Boise Yellowknife Mines Ltd.Com.Bombardier LimitedCl A.9.50Bonanza Explorations Ltd.Com.Bonnet Plume River Mines Ltd.Com..15Bon-Val Mines Ltd.Com..44Boraway Mines Ltd.Com..11Border Chemical Company LimitedCom.10.38Bordun Mining (Quebec) LimitedCom..30Borealis Exploration Ltd.Com..30Borealis Exploration Ltd.Wt.Boswell River Mines Ltd.Com..22Boundary Exploration Ltd.Com..14Bounty Exploration Ltd.Com..13Bourbeau Lake Mines Ltd.Com..02Bourlamaque Central Mines 1945 Ltd.Com..02Bovis Corporation Ltd.Com.1.90Bowater Paper Corporation Ltd.Com.4.65Bowaters Mersey Paper Company Ltd.5 1/2 pc cu pr.32.00Bowes Co. Ltd.Com.12.50Bow Valley Industries Ltd.Com.28.38Bow Valley Industries Ltd.5 1/2 pc cu A pr.14.25BP Canada Ltd.5 pc pr.75.00BP Oil & Gas LimitedCom.6.20Bracemac Mines Ltd.Com..03Bralorne Can-Fer Resources Ltd.Com.1.75Bralorne Oil & Gas Ltd.Com.2.25Bralsaman Petroleums Ltd.Com.3.25Bramalea Consolidated Development Ltd.Com.3.45Bramalea Consolidated Development Ltd.Wt.2.10Brameda Resources LimitedCom..92Braminco Mines Ltd.Com..03Brandy Brook Mines Ltd.Com..10Brascan LimitedCom.18.50Brenda Mines LimitedCom.4.55Brenmac Mines LimitedCom..38Brettland Mining Ltd.Com.Brett Oils LimitedCom..23Brewster Lake Mines LimitedCom..60Briarcourt Mines Ltd.Com..11Bridge Hill Mines LimitedCom..38Bridge & Tank Co. of Canada Ltd.Com.4.50Bridge & Tank Co. of Canada Ltd.$2.90 cu pr.32.25Bright & Co. Ltd. T.G.Com.16.00Bright Red Lake Mines Ltd.Com..01Bright Star Trio Mining Ltd.Com.1.10Brilund Mines Ltd.Com.8.00Brinco Ltd.Com.5.63British American Bank Note Co. Ltd.Com.13.00British Columbia Forest Products Ltd.Com.19.75British Columbia Forest Products Ltd.6 pc cu pr.41.50British Columbia Oil Lands LimitedCom.7.50British Columbia Packers Ltd.Cl A.20.00British Columbia Packers Ltd.Cl B.19.50British Columbia Sugar Refinery Ltd.Com.19.38British Columbia Sugar Refinery Ltd.5 pc cu pr.17.00British Columbia Telephone Co.Com.63.75British Columbia Telephone Co.4 3/8 pc cu pr.63.00British Columbia Telephone Co.4 1/2 pc cu pr.63.00British Columbia Telephone Co.4 3/4 pc C pr.66.50British Columbia Telephone Co.4 3/4 pc 1956 cu D pr.66.00British Columbia Telephone Co.4.84 pc cu pr.17.50British Columbia Telephone Co.5.15 pc cu pr.71.50British Columbia Telephone Co.5 3/4 pc cu pr.80.50British Columbia Telephone Co.6 pc cu pr.84.50British Columbia Telephone Co.6 pc cu 2nd pr.82.00British Columbia Telephone Co.6.80 pc cu pr.26.50British Controlled Oilfields Ltd.Com..20British International Finance Canada Ltd.Cl A.British Matachewan Gold Mines Ltd.Com.Broken Hill Explorations Ltd.Com..08Brooke Bond Foods Ltd.4.16 pc cu pr.19.50Brosnan Canadian Mines Ltd.Com.Broulan Reef Mines Ltd.Com..23Brown-McDade Mines Ltd.Com..10Bruck Mills Ltd.Cl A.15.00Bruck Mills Ltd.Cl B.8.00Bruneau Mining Corporation 1970Com..11Brunswick Mining & Smelting Corp. Ltd.Com.3.05Brycon Industries Ltd.Com..18Buchanan Mines LimitedCom..15Buckeye Explorations Ltd.Com..35Budd Automotive Co. of Canada Ltd.Com.6.63Budd Automotive Co. of Canada Ltd.Wt.2.40Buffalo Gas & Oil Corporation LimitedCom.1.05Buffalo Lake Mines Ltd.Com.Bullion Mountain Mining Ltd.Com..65Bullion Mountain Mining Ltd.A wt.Bunker Hill Extension Mines Ltd.Com..05Burlington Mines & Enterprises Ltd.Com.Burns Foods LimitedCom12.75Burnt Hill Tungsten & Metallurgical Ltd.Com..18Burrard Dry Dock Co. Ltd.Com.7.00Burrard Mortgage Investments Ltd.Com.1.90Burrex Mines LimitedCom..04Bushnell Communications LimitedCom.6.00Buval Executive Mining Industries Ltd.Com..40Cable Copper Mines LimitedCom.Cabot CorporationCom.Cadillac Development Corp. Ltd.Com.8.38Cadillac Development Corp. Ltd.6 1/2 pc cu B pr.20.25Cadillac Explorations Ltd.Com.1.30CAE Industries Ltd.Com.4.65Calcorp Resources Ltd.Com..14Caledon Mountain Estates Ltd.Com.4.50Calgary Power Ltd.Com.27.25Calgary Power Ltd.4 pc cu pr.Calgary Power Ltd.$5.00 cu pr.69.00Calgary Power Ltd.$5.40 cu cv pr.91.00Calico Silver Mines Ltd.Com..18Caliper Developments LimitedCom..75Calix Mines Ltd.Com..05Calmark Industries Ltd.Com.Calmor Iron Bay Mines Ltd.Com..50Calta Mines LimitedCom.1.02Calvert-Dale Estates Ltd.Com..82Calvert Gas & Oils Ltd.Com..14Cambridge Leaseholds LimitedCom.11.50Cambridge Mines LimitedCom..38Cambridge Mining Corp. Ltd.Com..02Camdeck Mines Ltd.Com..15Camflo Mines LimitedCom.2.51Camindex Mines Ltd.Com..13Camlaren Mines Ltd.Com..08Cam Mines Ltd.Com..30Campbell Chibougamau Mines Ltd.Com.4.70Campbell Red Lake Mines Ltd.Com.21.50Campeau Corporation Ltd.Com.3.50Canada & Dominion Sugar Co. Ltd.Com.32.50Canada Cement Lafarge Ltd.Com.46.63Canada Cement Lafarge Ltd.6 1/2 pc cu pr.19.75Canada Forgings Ltd.Com.4.50Canada Geothermal Oil Ltd.Com..68Canada Machinery Corporation Ltd.Com.19.00Canada Malting Co. LimitedCom.26.00Canada Malting Co. LimitedB pr..89Canada Northwest Land LimitedCom.1.50Canada Packers Ltd.Com.18.50Canada Permanent Mortgage CorporationCom.18.00Canada Safeway Limited$4.40 cu pr.82.50Canada Southern Petroleum Ltd.Com.6.20Canada Southern Petroleum Ltd.Wt.3.10Canada Steamship Lines Ltd.Com.40.00Canada Steamship Lines Ltd.5 pc cu pr.5.13Canada Tungsten Mining Corp. Ltd.Com.1.55Canada Western Cordage Company Ltd.Cl A.Canada Western Cordage Company Ltd.Cl B.Canadex Mining Corp. Ltd.Com..13Canadian Allied Property Investments LimitedCom.7.00Canadian All-Metal Explorations Ltd.Com.Canadian Arena Co.Com.15.00Canadian Arrow Mines LimitedCom..14Canadian Barranca Corp. Ltd.Com..22Canadian Bonanza Petroleums Ltd.Com.1.30Canadian Breweries LimitedCom.7.50Canadian Breweries Limited$2.20 cu A pr.32.00Canadian Breweries Limited$2.65 cu B pr.36.50Canadian Cablesystems Ltd.Com.14.13Canadian Cablesystems Ltd.Wt.2.25Canadian Canners Ltd.CI A.6.50Canadian Converters Co. Ltd.CI A.2.00Canadian Converters Co. Ltd.CI B.Canadian Corporate Management Company LimitedCom.16.00Canadian Corporate Management Company LimitedCI B.Canadian Curtiss-Wright Ltd.Com..70Canadian Delhi Oil LimitedCom.5.00Canadian Equity & Development Company LimitedCom.12.00Canadian Export Gas & Oil Ltd.Com.3.60Canadian Food Products Ltd.Com.5.20Canadian Food Products Ltd.6 pc cu 1st pr.32.50Canadian Food Products Ltd.6 pc cv 2nd pr.32.00Canadian & Foreign Securities Co. Ltd.Com.Canadian Fortune Oil LimitedCom.Canadian Foundation Co. Ltd.Com.6.00Canadian Foundation Co. Ltd.6 pc cu A pr.7.75Canadian Gas & Energy Fund Ltd.B wt.7.25Canadian General Electric Company Ltd.Com.22.50Canadian General Electric Company Ltd.Cu cv pr.26.00Canadian General Investments Ltd.Com.66.00Canadian General Securities LimitedCI A.12.75Canadian General Securities LimitedCI B.30.00Canadian Goldale Corp. Ltd.Com.3.50Canadian Hidrogas Resources Ltd.Com..72Canadian Homestead Oils LimitedCom.8.60Canadian Homestead Oils Limited6 pc cu cv pr.17.00Canadian Hydrocarbons Ltd.Com.13.88Canadian Hydrocarbons Ltd.5 1/2 pc cu A pr.14.00Canadian Imperial Bank of CommerceCom.25.75Canadian Industrial Gas & Oil Ltd.Com.9.13Canadian Industrial Gas & Oil Ltd.5 1/2 pc cu cv pr.21.50Canadian Industries Ltd.Com.13.88Canadian Industries Ltd.7 1/2 pc cu pr.52.50Canadian International Investment Trust Ltd.Com.32.00Canadian International Investment Trust Ltd.5 pc cu pr.Canadian International Power Company Ltd.Com.22.50Canadian International Power Company Ltd.5.20 pc 1965 cu pr.13.50Canadian Interurban Properties LimitedCom.2.00Canadian Interurban Properties Limited7 pc cu cv A pr.7.75Canadian Jamieson Mines Ltd.Com.1.25Canadian Javelin LimitedCom.9.60Canadian Keeley Mines Ltd.Com..05Canadian Leisure Industries Ltd.Com..06Canadian Lencourt Mines Ltd.Com..07Canadian Long Island Petroleums Ltd.Com..65Canadian Magnesite Mines Ltd.Com..31Canadian Malartic Gold Mines Ltd.Com..27Canadian Manoir Industries LimitedCom.3.35Canadian Manoir Industries Limited6 pc cu pr.Canadian Marconi CompanyCom.3.05Canadian Merrill Ltd.Com.4.75Canadian Nistro Mines Ltd.Com..09Canadian Occidental Petroleum Ltd.Com.9.13Canadian Pacific Investments LimitedCom.12.00Canadian Pacific Investments Limited4 3/4 pc cv A pr.24.50Canadian Pacific Investments LimitedWt.3.05Canadian Pacific LimitedOrdinary13.88Canadian Pacific Limited4 pc pr Canadian unit9.63Canadian Pacific Limited4 pc pr United Kingdom unit7.75Canadian Pacific Limited7 1/4 pc A pr.10.75Canadian Provident, TheCom.Canadian Refractories Ltd.Com.Canadian Reserve Oil & Gas Ltd.Com.5.60Canadian Reynolds Metals Co. LimitedPr.Canadian Salt Co. Ltd.Com.15.00Canadian Scenic Oils Ltd.Com..80Canadian Security Management Ltd.Cl A.1.25Canadian Southern Cross Mines (No Liability)Com.Canadian Superior Oil Ltd.Com.43.25Canadian Tire Corp. Ltd.Com.40.25Canadian Tire Corp. Ltd.Cl A.35.38Canadian Tricentrol Oils Ltd.Com.14.63Canadian Union Insurance CompanyCom.Canadian Utilities LimitedCom.37.25Canadian Utilities Limited4 1/4 pc cu pr.57.25Canadian Utilities Limited5 pc cu pr.66.50Canadian Utilities Limited6 pc cu pr.78.75Canadian Utilities LimitedWt.8.50Canadian Vickers Ltd.Com.9.25Canadian Wallpaper Manufacturers Ltd.Com.85.50Canadian Western Natural Gas Company LimitedCom.21.00Canadian Western Natural Gas Company Limited4 pc cu pr.11.50Canadian Western Natural Gas Company Limited5 1/2 pc cu pr.15.00Canadore Mining & Development Corp.Com..10Can-American Natural Resources Ltd.Com.Can-American Petroleums Ltd.Com.Canarctic Resources Ltd.Com..27Can-Base Industries Ltd.Com..18Canbridge Oil Explorations Ltd.Com.1.50Can-Con Enterprises & Explorations Ltd.Com..10Candida Holdings Naamloze VennootschapCom.16.75Candore Explorations Ltd.Com..04Candy Mines & Investments Ltd.Com..12Caneonti Mines Ltd.Com..01Cannon Mines LimitedCom..07Canol Metal Mines Ltd.Com..02Canol Mines LimitedCom..25Canron Ltd.Com.19.38Canron Ltd.4 1/4 pc cu cv pr.70.00Canterra Development Corp. Ltd.Com.1.00Cantol Ltd.Com.3.40Cantrend Industries Ltd.Cl A.Cantrend Industries Ltd.Cl B.Canuc Mines LimitedCom..30Canyon City Explorations Ltd.Com..05C-A Petroleums Ltd.Com.Capital Diversified Industries Ltd.Com..59Capital Diversified Industries Ltd.A wt..15Capital Dynamics Ltd.Com.1.80Capital Dynamics Ltd.Wt..03Capital Estates Inc.Com.Capri Mining Corporation Ltd.Com..14Caprive Industries & Resources LimitedCom..09Captain International Industries LimitedCom.6.00Captain Mines LimitedCom..11Cara Operations Ltd.Com.4.60Caravelle Mines Ltd.Com..11Card Lake Copper Mines Ltd.Com..10Cardwell Resources LimitedCom..15Cariboo Bell Copper Mines LimitedCom..25Cariboo Gold Quartz Mining Co. Ltd.Com..95Carling Copper Mines Ltd.Com..20Carlson Mines Ltd.Com.Carlton Cleaning Carousels Ltd.Com..25Carndesson Mines Ltd.Com.Carnegie New Mining Corp Ltd.Com.Carolin Mines LimitedCom..20Carrier Shoe Co. Ltd. J. D.Com.6.63Carrier Shoe Co. Ltd. J. D.Wt.3.25Carroll & Reed Ltd.Com.Carter J. B. Ltd.Cl A.10.12Carter J. B. Ltd.Cl B.60.00Cartier Quebec Explorations Ltd.Com..10Casavant Brothers LimitedCl A.1.00Cascade Molybdenum Mines Ltd.Com..23Casino Silver Mines Ltd.Com..55Cassiar Asbestos Corporation LimitedCom.18.63Cassiar Consolidated Mines Ltd.Com..10Cassidy’s Ltd.Com.4.35Cassidy’s Ltd.6 1/4 pc cu cv A 1st pr.8.75Castlebar Silver & Cobalt Mines Ltd.Com..06Castle Oil and Gas LimitedCom.1.40C & C Yachts Ltd.Com.2.50CDP Computer Data Processors Ltd.Com.1.30CDRH LimitedCom.5.88Cedarvale Mines Ltd.Com..35Celtic Minerals Ltd.Com..79Centex Mines Ltd.Com..12Central Dynamics LimitedCom..90Central Fund of Canada Ltd.Cl A.6.25Central Ontario Savings & Loan Corp.Com.8.00Central Patricia Gold Mines Ltd.Com.1.70Central Trust Company of Canada, TheCom.13.75Centura Mining Ltd.Com..36Cessland Corp. Ltd.Com..28CFTO-TV LimitedCom.CGC Mines Ltd.Com.Chance Mining & Exploration Co. Ltd.Com.Chapparal Mines LimitedCom..16Charter Industries Ltd.Com.1.30Charter Oil Company Ltd.Com.6.00Chataway Exploration Co. Ltd.Com..17Chateau-Gai Wines Ltd.Com.16.88Chemalloy Mineral Ltd.Com.2.06Chemcell Ltd.Com.4.35Chemcell Ltd.$1.00 cu pr.12.50Chemcell Ltd.$1.75 cu pt pr.19.75Chesbar Iron Powder LimitedCom.2.00Chesbar Iron Powder LimitedWt..40Chesterville Mines LimitedCom..10Chibex Mining Corp.Com..38Chib-Kayrand Copper Mines Ltd.Com..05Chibougamau Mining & Smelting Co. Inc.Com..29Chiboug Copper Corp Ltd.Com..18Chieftain Development Company Ltd.Com.8.10Chimo Gold Mines Ltd.Com.1.20Chinook Shopping Centre LimitedCom.3.00Chipman Mining & Energy Corp. Ltd.Com..40Choiceland Iron Mines Ltd.Com..25Chromex Nickel Mines Ltd.Com..18Chromium Mining & Smelting Corporation LimitedCom.1.75Chrysler CorporationCom.29.75Chukuni Gold Mines Ltd.Com..04CHUM LimitedCom.5.50CHUM LimitedCl B.8.50Churchill Copper Corporation Ltd.Com..75Cicada Mines Ltd.Com..03Cimco LimitedCl A.12.06Cincinnati-Porcupine Mines Ltd.Com..02Cinola Mines Ltd.Com..08Citadel Mines Ltd.Com..04Citex Mines Ltd.Com..05Cities Service CompanyCom.City Associated Enterprises Ltd.Cl B..70Clairtone Sound Corporation LimitedCom.Clarepine Development Ltd.Com..20Clark Canadian Exploration Co.Com.3.75Clavos Porcupine Mines Ltd.Com..02Claw Lake Molybdenum Mines Ltd.Com..03Clearwater Mines Ltd.Com..15Clero Mines Ltd.Com..06Cleveland Mining & Smelting Co.Com..05Clicker Red Lake Mines Ltd.Com.Clinger Gold Mines Ltd.Com..02Coast Copper Company LimitedCom.3.00Coast Interior VenturesCom..75Coast Silver Mines Ltd.Com..14Cochenour Willans Gold Mines Ltd.Com..21Cochrane-Dunlop Hardware Ltd.Com.35.00Cochrane-Dunlop Hardware Ltd.Cl A.30.50Cockfield Brown & Company LimitedCom.6.00Codville Distributors Ltd.Cl A.3.75Coin Canyon Mines Ltd.Com.Coin Canyon Mines Ltd.A wt.Coin Lake Gold Mines Ltd.Com..09Coleman Collieries Ltd.Cl A.7.00Coleman Collieries Ltd.Cl B.6.95Coleman Collieries Ltd.6 pc 1st cv pr..73Coleman Collieries Ltd.B wt.2.51Colleen Copper Mines Ltd.Com..12College Plumbing Supplies Ltd.Com.4.00Collingwood Terminals Ltd.Com.Collingwood Terminals Ltd.Pr.Colonial Oil and Gas Ltd.Com..65Columbia Cellulose Company LimitedCom.2.90Columbia Cellulose Company Limited$1.20 cu cv pr.8.63Columbia Gas System Inc.Com.Columbia Metals Corporation Ltd.Com..36Columbia Placers Ltd.Com..08Columbia River Mines LimitedCom..28Columbiere Mines Ltd.Com.Comaplex Resources International Ltd.Com.1.80Comaplex Resources International Ltd.A wt..64Combined Engineered Products LimitedCom.2.60Combined Engineered Products Limited$1.10 cu cv pr.11.88Combined Insurance Co. of AmericaCom.40.00Combined Larder Mines Ltd.Com..01Combined Metal Mines Ltd.Com..12Comet Industries Ltd.Com..70Cominco Ltd.Com.22.88Cominga Compagnie Minière de l’UngavaCom..03Commerce Nickel Mines Ltd.Com..08Commercial Finance Corporation LimitedCom.Commercial Holdings & Metals Corp.Com.2.00Commercial Life Assurance Co. of CanadaCom.Commercial Oil & Gas LimitedCom..09Commodore Business Machines (Canada) LimitedCom.8.13Commodore Business Machines (Canada) LimitedA wt.4.25Commonwealth Holiday Inns of Canada Ltd.Com.12.25Compton Exploration Ltd.Com.Computel Systems Ltd.Com.3.00Computrex Centres Ltd.Com..38Comstock Keno Mines Ltd.Com..07Comtech Group International LimitedCom.1.90Comtech Group International Limited5 pc cu pr.Concorde Explorations Ltd.Com.Concourse Building Ltd.Com.Condor Mines LimitedCom..11Conduits National Co. Ltd.Com.3.00Congress Mining Corporation LimitedCom..48Coniagas Mines Ltd.Com..28Conigo Mines Ltd.Com..13Conoco Silver Mines Ltd.Com..25Con Quest Exploration Ltd.Com..40Consolidated Ad Astra Minerals Ltd.Com..11Consolidated Bathurst LimitedCom.7.88Consolidated Bathurst Limited6 pc cu pr.11.75Consolidated Bathurst Limited1968 Wt.3.00Consolidated Bathurst LimitedWt..55Consolidated Bellekemo Mines Ltd.Com..01Consolidated Brewis Minerals Ltd.Com..08Consolidated Buffalo Red Lake Mines Ltd.Com..07Consolidated Building Corp. Ltd.Com.1.50Consolidated Building Corp. Ltd.6 pc cu A pr.Consolidated Callinan Flin-Flon Mines LimitedCom..07Consolidated Canadian Faraday Ltd.Com..80Consolidated Canorama Exploration Ltd.Com..15Consolidated Daering Mining Inc.Com..09Consolidated Developments Ltd.Com..70Consolidated Diversified Standard Securities Ltd.Cl A.2.50Consolidated Diversified Standard Securities Ltd.$2.50 1st pr.25.00Consolidated Dolsam Mines Ltd.Com..12Consolidated Durham Mines & Resources Ltd.Com..73Consolidated East Crest Oil Company LimitedCom.1.52Consolidated Fenimore Iron Mines Ltd.Com..02Consolidated Gem Exploration Ltd.Com..05Consolidated Harpers Malartic Gold Mines Ltd.Com..05Consolidated Imperial Minerals Ltd.Com..07Consolidated Manitoba Mines Ltd.Com.Consolidated Marbenor Mines Ltd.Com.1.55Consolidated Marcus Gold Mines Ltd.Com..05Consolidated Mogador Mines Ltd.Com..03Consolidated Monpas Mines Ltd.Com.Consolidated Montclerg Mines Ltd.Com..03Consolidated Morrison Explorations Ltd.Com.1.58Consolidated Negus Mines Ltd.Com..07Consolidated Nicholson Mines Ltd.Com..05Consolidated Northern Exploration Ltd.Com..29Consolidated Novell Mines Ltd.Com..02Consolidated Oil & Gas Inc.Com.Consolidated Panther Mines Ltd.Com..30Consolidated Pershcourt Mining Ltd.Com.Consolidated Professor Mines Ltd.Com.Consolidated Proprietary Mines Holdings Ltd.Com..06Consolidated Prudential Mines Ltd.Com..10Consolidated Rambler Mines Ltd.Com.1.55Consolidated Rexspar Minerals & Chemicals LimitedCom..16Consolidated Ribago Mines Ltd.Com..02Consolidated Shunsby Mines Ltd.Com..10Consolidated Standard Mines Ltd.Com..05Consolidated Textile Mills Ltd.Com.4.75Consolidated Theatres Ltd.Cl A.Consolidated Vigor Mines Ltd.Com..03Consolidated Virginia Mining Corp.Com.Consolidated West Petroleum LimitedCom.1.28Consumers Distributing Company LimitedCom.23.88Consumers Gas CompanyCom.19.50Consumers Gas Company5 1/2 pc cu A pr.83.25Consumers Gas Company5 1/2 pc cu B pr.84.00Consumers Glass Co. Ltd.Com.10.50Contact Ventures Ltd.Com..55Continental Can Company Inc.Com.32.00Continental Cinch Mines Ltd.Com..09Continental Copper Mines Ltd.Com..08Continental McKinney Mines Ltd.Com..08Continental Potash Corporation Ltd.Com..04Continental Research & Development Ltd.Com.7.00Controlled Foods International Ltd.Com.1.90Conuco LimitedCom..35Conwest Exploration Co. Ltd.Com.7.75Cooper of Canada Ltd.Com.14.50Copconda Mines Ltd.Com.Copeland Process Ltd.Com.4.00Cop-Mac Mines Ltd.Com..23Copp-Clark Publishing Co. Ltd.Pr.Coppercorp LimitedCom..15Copper Corp of AmericaCom..08Copperfields Mining Corp. Ltd.Com.1.25Copper Giant Mining Corporation Ltd.Com..10Copper Horn Mining Ltd.Com..04Copper Lake Explorations Ltd.Com..31Copperline Mines LimitedCom..19Copper-Lode Mines Ltd.Com..09Copper-Man Mines Ltd.Com..04Copper Pass Mines Ltd.Com.Copper Queen Explorations LimitedCom..09Copper Ridge Mines Ltd.Com..22Copperstream-Frontenac Mines Ltd.Com.Copperville Mining Corp. Ltd.Com.09Corby Distilleries LimitedCl A.23.00Corby Distilleries LimitedCl B.23.50Corgemines LimitedCom..20Cornat Industries LimitedCom.1.65Coronation Allied Industries Ltd.Com..57Coronation Credit Corp Ltd.Com.1.20Coronation Credit Corp. Ltd.6 pc cu cv A pr.1.75Coronation Credit Corp. Ltd.Wt. series 2.Coronet Mines LimitedCom..25Corporate Foods Ltd.Com.8.00Corporate Foods Ltd.$2.75 A cu pr.28.00Corporate Properties Ltd.Com.3.31Corporation d’expansion financièreCom.1.25Coseka Resources LimitedCom.1.01Cosmic Nickel Mines LimitedCom..09Cosmos Imperial Mills LimitedCom..85Costain Richard Canada Ltd.Com.7.50Coulee Lead & Zinc Mines Ltd.Com..13Courier Explorations Ltd.Com..28Courvan Mining Co. Ltd.Com..07Cove Uranium Mines Ltd.Com.Cowl LimitedCom.3.50Crackingstone Mines Ltd.Com..04Craibbe Fletcher Gold Mines Ltd.Com..01Craig Bit Co. Ltd., TheCom.4.75Craigmont Mines Ltd.Com.7.00Crain Limited, R. L.Com.11.13Crawford Allied Industries Ltd.Com.1.85Cream Silver Mines LimitedCom..24Creative Patents & Products LimitedCom.2.25Credit Foncier Franco-CanadienCom.57.00Credo Mining LimitedCom..05Cree Lake MiningCom..40Crestbrook Forest Industries Ltd.Com.3.90Crestland Mines Ltd.Com..07Crest Ventures Ltd.Com..18Crestwood Kitchens Ltd.Com.1.75Cresus Mining LimitedCom..07Creswell Mines Ltd.Com.Cross Co. Ltd., W. B.Com.3.00Crowbank Mines Ltd.Com..12Crownbridge Copper Mines Ltd.Com..03Crown Cork & Seal Co. Ltd.Com.150.00Crown Life Insurance CompanyCom.30.25Crown Trust CompanyCom.15.50Crown Zellerbach Canada Ltd.Cl A.16.63Crows Nest Industries Ltd.Com.26.00Croydon Mines Ltd.Com..14Croydon Rouyn Mines Ltd.Com..03Crusade Petroleum Corp. Ltd.Com..65Crush International Ltd.Com.19.00Cultus Exploration Ltd.Com..20Cumex Mines Ltd.Com..45Cummings Properties LimitedCom.Cumont Mines Ltd.Com..32Cunningham Drug Stores LimitedCom.Cuvier Mines Ltd.Com..10Cygnus Corporation Ltd.Cl A.5.75Cygnus Corporation Ltd.Cl B.6.25Dairy Barn Stores of Canada LimitedCom.2.07Dairy Barn Stores of Canada LimitedWt..38Dale-Ross Holdings Ltd.Com.7.50Dale-Ross Holdings Ltd.6 pc cu A pr.7.50Dalex Co. Limited7 pc cu pr.80.00Dalex Mines LimitedCom..06Dalfen’s Ltd.Com.12.50Dalhousie Oil Co. Ltd.Com..18Daniel Diversified Ltd.Com..30Dankoe MinesCom..60D’Aragon Mines Ltd.Com..17Darkhawk Mines LimitedCom..40Darsi Mines LimitedCom..09Dasson Copper Corp. Ltd.Com..19Dataline Systems Ltd.Com.1.83Datapro Ltd.Com.2.25Datateck Systems Ltd.Com.1.00Dauphin Iron Mines Ltd.Com..07David Minerals LimitedCom..27Davis Distributing & Vending Ltd.Com.1.30Davis-Keays Mining Co. Ltd.Com..70Dawson Developments Ltd.Com.6.00Debenture & Securities Corp. of Canada5 pc cu pr.Debhold (Canada) Limited6 1/4 pc cu B pr.78.00Decca Resources LimitedCom.2.20Deerhorn Mines Ltd.Com..03Dejour Mines Ltd.Com..17Delahey Consolidated Nickel Mines LimitedCom..05D’Eldona Gold Mines Ltd.Com..45Delhi Pacific Mines Ltd.Com..07Delkirk Mining Ltd.Com..07Delmico Mines Ltd.Com..03Delta-BencoCom.1.65Delta Hotels Ltd.Com.2.30Delta Hotels Ltd.6 pc cl A pr.1.35Delta Hotels Ltd.Rt.Delta Minerals Corp.Com.Deltan Corp. Ltd.Com.6.38Delta Petroleum Corporation Ltd.Com..73Deltec Panamerica (Sociedad Anonima)Com.1.00Demsey Mines Ltd.Com..17Denison Mines Ltd.Com.24.50Derby Mines Ltd.Com.Derlak Red Lake Gold Mines Ltd.Com..01Deseret Peak Mines Ltd.Com..18Desjardins Mines Ltd.Com..55Despina Gold Mines Ltd.Com.Destorbelle Mines Ltd.Com..01Devil’s Elbow Mines Ltd.Com..06Dickenson Mines Ltd.Com..85Dictator Mines Ltd.Com..33Discovery Mines Ltd.Com..75Dison International Ltd.Com.1.34Distillers Corporation-Seagrams Ltd.Com.31.25District Trust Co.Com.15.00Diversified Credit Corp. Ltd.Com.Dixie-Carolina Mining Corp. Ltd.Com.DLP Diversified Ltd.Com.Dog’n Suds Food Services Ltd.Com..25Dolly Varden Mines Ltd.Com..35Doman Industries Ltd.Com.9.75Doman Industries Ltd.6 1/2 pc cu cv A pr.39.00Doman Industries Ltd.Wt.22.00Domco Industries LimitedCom.5.00Dome Mines Ltd.Com.54.50Dome Petroleum Ltd.Com.34.00Dominion & Anglo Investment Corporation Ltd.Com.Dominion & Anglo Investment Corporation Ltd.5 pc cu pr.74.25Dominion Bridge Co. Ltd.Com.23.75Dominion Citrus & Drugs Ltd.Com.8.50Dominion Coal Co. Ltd.Pr.23.38Dominion Corset Co. Ltd.Com.6.00Dominion Dairies Ltd.Com.34.00Dominion Dairies Ltd.5 pc pr.25.00Dominion Explorers Ltd.Com.1.40Dominion Fabrics LimitedCom.Dominion Fabrics LimitedCl. A cu pt pr.4.38Dominion Foundries & Steel Ltd.Com.25.00Dominion Foundries & Steel Ltd.4 3/4 pc cu A pr.74.00Dominion Glass Company LimitedCom.10.25Dominion Glass Company Limited7 pc cu cv pr.12.75Dominion Jubilee Corp. Ltd.Com..70Dominion Leaseholds Ltd.Com..06Dominion Life Assurance Co.Com.95.00Dominion Lime LimitedCom.7.88Dominion Lime LimitedWt..50Dominion Magnesium Ltd.Com.6.00Dominion of Canada General Insurance Co.Com.Dominion-Scottish Investments Ltd.Com.15.68Dominion-Scottish Investments Ltd.5 pc cu pr.30.75Dominion Stores Ltd.Com.15.00Dominion Textile LimitedCom.21.00Dominion Textile Limited7 pc cu pr.101.00Domtar LimitedCom.12.25Domtar Limited$1.00 cu pr.13.38Donalda Mines Ltd.Com..08Donlee Manufacturing Industries LimitedCom.4.50Donna Mines LimitedCom..07Donohue Company LimitedCom.4.00Donohue Company Limited6 1/4 pc cu pr.15.75Donrand Mines Ltd.Com.Don-X Mines Ltd.Com.Doral Mining Exploration Ltd.Com.Dorion Red Lake Mines Ltd.Com..01Dorita Silver Mines Ltd.Com..11Douglas Leaseholds LimitedCom.2.25Dove Lake Mines Inc.Com..40Dover Industries Ltd.Com.15.00Dover Industries Ltd.6 pc cu pr.8.00DRG LimitedCom.14.00Drummond Die & Stamping Co. Ltd.Com..16Drummond Welding & Steel Works Ltd.Cl A.3.00Dubuisson Goldfields Ltd.Com..03Ducros Mines Ltd.Com..16Duke Mining Company LimitedCom..20Dumagami Mines LimitedCom..19Dumont Nickel CorporationCom..29Duncan Range Iron Mines Ltd.Com..10Dundee Mines Ltd.Com..18Dunraine Mines Ltd.Com..14Dunterra Mines Ltd.Com.Dunvegan Mines Ltd.Com.Dupont of Canada Ltd.Com.20.25Dupont of Canada Ltd.7 1/2 pc cu pr.52.00Duport Mining Co. Ltd.Com.Dupuis Frères LimitedCl A cu pr.6.00Dustbane Enterprises Ltd.Com.6.50Dusty Mac Mines LimitedCom..10Duvan Copper Co. Ltd.Com..03Duvex Oils & Mines Ltd.Com..02Dylex Diversified LimitedCom.8.75Dylex Diversified LimitedCl A pt pr.8.63Dynacore Enterprises Ltd.Com.Dynaco Resources Ltd.Com..25Dynalta Oil & Gas Co. Ltd.Com.1.25Dynamic Mining Exploration Ltd.Com..16Dynamic Petroleum Products Ltd.Com.1.02Dynamo Mines LimitedCom..17Dynasty Exploration Ltd.Com.5.90Eagle Gold Mines Ltd.Com.3.00Eagle Industries LimitedCom.5.63Eagle River Mines LimitedCom..38Earlcrest Resources Ltd.Com..11Early Bird Mines Ltd.Com..13East Amphi Gold Mines Ltd.Com..01East Bay Gold Ltd.Com..04Eastern Bakeries Ltd.Com.4.00Eastern Bakeries Ltd.4 pc cu pr.Eastern Canada Savings & Loan CompanyCom.12.50Eastern Utilities Limited5 1/2 pc cu. pr.EastgateCom..73East Lun Gold Mines Ltd.Com..01East Malartic Mines Ltd.Com..95Eastmont Larder Lake Gold Mines Ltd.Com.Eastmont Silver Mines Ltd.Com.Eastrock Explorations Ltd.Com..40East Sullivan Mines Ltd.Com.2.70East Ventures Ltd.Com..04Eastview Mines Ltd.Com.Eaton CorporationCom.42.00Echo Bay Mining Ltd.Com..15Economic Investment Trust Ltd.Com.13.75Economic Investment Trust Ltd.5 pc cu A pr.32.50Eddy Match Co. Ltd.Com.10.25Edmonton Concrete Block Co. Ltd.Com.Edmonton International Speedway Ltd.Com..65EDP Industries LimitedCom..30EDP Industries Limited5 pc cu cv A pr.EDP Industries LimitedWt.Ego Mines Ltd.Com..09El Bonanza Mining Corp Ltd.Com..12El Coco Explorations Ltd.Com..07Electrohome LimitedCom.41.00Electrohome Limited5 3/4 pc cu A pr.77.75Electro-Knit Fabrics (Canada) Ltd.Com.5.38Electronic Associates of Canada LimitedCom.2.25E-L Financial Corporation LimitedCom.6.88E-L Financial Corporation LimitedA cv pr.9.75E-L Financial Corporation LimitedWt.2.45Elk Creek Waterworks Co. Ltd.Com.Elmac Malartic Mines Ltd.Com..03El Paso Natural Gas CompanyCom.Embassy Petroleums Ltd.Com..43Embassy Petroleums Ltd.A wt..20Emco LimitedCom.6.25Emperor Mines Ltd.Com..10Empire Life Insurance Co., TheCom.8.00Empire Metals Corporation Ltd.Com..10Empire Minerals Inc.Com..05Enamel & Heating Products LimitedCl A.2.25Enamel & Heating Products LimitedCl. B.1.25Enex Mines Ltd.Com..21Entarea Management Ltd.Com.5.00Equatorial Resources LimitedCom..19Ericksen-Ashby Mines Ltd.Com.Erie Diversified Industries Ltd.Com.8.00Erie Diversified Industries Ltd.Cl. A.8.00ERI Explorations Inc.Com..77Eskimo Copper Mines Ltd.Com..12Essex Packers LimitedCom.Essex Packers Limited5 pc cu 1st pr.Ethel Copper Mines Ltd.Com.Evangeline Savings & Mortgage Co.Com.Evenlode Mines Ltd.Com..01Excellence Life Insurance Co. (The)Com.Excelsior Life Insurance Co.Com.Exeter Mines Ltd.Com..40Expo Iron LimitedCom..45Expo Ungava Mines LimitedCom..20Exquisite Form Brassiere (Canada) LimitedCom.4.10Exquisite Form Brassiere (Canada) Limited6 pc cu cv pr.6.75Extendicare (Canada) Ltd.Com.8.50Extendicare (Canada) Ltd.Wt.3.50Fab Metal Mines Ltd.Com..04Fairborn Mines Ltd.Com..12Fairway Explorations Ltd.Com.Falaise Lake Mines Ltd.Com..16Falconbridge Nickel Mines Ltd.Com.81.00Falcon Explorations Ltd.Com..55Fallinger Mining CorporationCom.1.32Family Life Assurance Co.50 pc paidFannex Resources Ltd.Com..37Fanny Farmer Candy Shops Inc.Com.Far East Minerals Ltd.Com.Farmers & Merchants Trust Co. Ltd.Com.2.50Farwest Mining Ltd.Com..06Fathom Oceanology Ltd.Com..73Fawn Bay Development Ltd.Com..05Federal Diversiplex Ltd.Com.1.20Federal Grain LimitedCom.8.00Federated Mining Corp. Ltd.Com..45Federated Mining Corp Ltd.Rt.Fidelity Mining Investments Ltd.Com..06Fidelity Mortgage & Savings CorporationCom.Fidelity Trust Co., TheCom.1.55Fidelity Trust Co., TheWt..65Fields Stores LimitedCom.13.50Financial Collection Agencies Ltd.Com.16.00Financial Life Assurance Co.Com.Finlayson Enterprises Ltd.Cl A.14.00Finlayson Enterprises Ltd.Cl B.Finning Tractor & Equipment Company LimitedCom.12.50First City Financial Corp. Ltd.Com.7.75First Maritime Mining Corp Ltd.Com..60First National City Corp.Com.First National Uranium Mines LimitedCom..15First Orenda Mines Ltd.Com..08Fiscal Investments Ltd.Com.9.00Fiscal Investments Ltd.Pr..20Fittings Ltd.Com.15.00Five Star Petroleum and Mines Ltd.Com..16Flagstone Mines LimitedCom..17Fleet Manufacturing Ltd.Com..86Fleetwood CorporationCom.8.00Flemdon Ltd.Com.1.40Fleming Mines Ltd.Com..01Flin Flon Mines Ltd.Com..27Flint Rock Mines Ltd.Com.1.95Foley Silver Mines Ltd.Com..04Fontana Mines 1945 Ltd.Com..03Ford Motor CompanyCom.70.00Ford Motor Co. of Canada Ltd.Com.82.75Forest Kerr Mines Ltd.Com..04Fort Norman Explorations Inc.Com..53Fort Reliance Minerals Ltd.Com..32Fort St. John Petroleums Ltd.Com..67Fortune Channel Mines Ltd.Com..14Fortune Channel Mines Ltd.A wt.Fosco Mining Ltd.Com.1.18Founders GroupCom..45Fourbar Mines LimitedCom..104-F Foods LimitedCom..19Four Seasons Hotels Ltd.Com.14.25Four Seasons Hotels Ltd.Wt.6.50Four Seasons Mining & Resources Ltd.Com.Fox Lake Mines Ltd.Com..03FPE Pioneer Electric Ltd.Cl A.17.50FPE Pioneer Electric Ltd.5 1/2 pc cu cv A pr.69.00Francana Oil & Gas Ltd.Com.4.55Fraser Companies LimitedCom.12.13Frebert Mines Ltd.Com..01Freehold Gas & Oil LimitedCom.1.76Freehold Gas & Oil LimitedA wt.Freehold Gas & Oil LimitedB wt.Freiman Ltd., A. J.Com.5.88Frobex LimitedCom..34Frontier Explorations LimitedCom..16Fruehauf Trailer Company of Canada LimitedCom.16.50Fulcrum Investments Co. Ltd.Com.3.65Fulcrum Investments Co. Ltd.6 pc cu pr.7.50Fundy Chemical Corporation Ltd.Com.8.75Fundy Exploration Ltd.Com..02Futurity Oils LimitedCom..27Galex Mines LimitedCom..45Galt Malleable Iron LimitedCom.7.50Galt Malleable Iron Limited6 pc cu 1st pr.Gan Copper Mines Ltd.Com..02Ganda Silver Mines Ltd.Com.Garrison Creek Consolidated Mines Ltd.Com..06Gary Mines Ltd.Com..10Gaspé Copper Mines Ltd.Com.49.00Gaspé Park Mines Ltd.Com.Gaspé Quebec Mines Ltd.Com..64Gaspesie Mining Co. LimitedCom.Gaspex Mines Ltd.Com.Gateford Mines Ltd.Com..02Gateway Uranium Mines Ltd.Com..02Gaz Métropolitain Inc.Com.5.50Gaz Métropolitain Inc.5.40 pc cu pr.66.00Gaz Métropolitain Inc.5 1/2 pc cu pr.66.00Gaz Métropolitain Inc.1963 wt.1.45Gaz Métropolitain Inc.1966 wt.2.20G & B Automated Equipment LimitedCom.1.75General Bakeries Ltd.Com.3.35General Developments CorporationCom.25.50General Distributors of Canada Ltd.Com.15.88General Dynamics CorporationCom.General Investment Corporation of QuebecCom.3.00General Motors CorporationCom.80.50General Products Mfg. Corporation LimitedCl A.82.00General Products Mfg. Corporation LimitedCl B.81.00General Resources Ltd.Com..08General Trust of CanadaCom.23.75Genesco Inc.Com.Genstar LimitedCom.13.13Genstar LimitedWt.4.50Geoquest Resources Ltd.Com.1.95Georgia Lake Mines Ltd.Com.Gesco Distributing LimitedCom.3.50Getty Oil CompanyCom.80.00Giant Explorations Ltd.Com..40Giant Mascot Mines Ltd.Com.5.00Giant Metallics Mines Ltd.Com..11Giant Reef Petroleums LimitedCom..21Giant Yellowknife Mines Ltd.Com.7.05Gibbex Mines Ltd.Com..35Gibraltar Mines Ltd.Com.4.70Gibson Mines Ltd.Com.Glenburk Mines Ltd.Com..03Glen Copper Mines Ltd.Com..16Glendale Mobile Homes Ltd.Com.5.25Glengair Group LimitedCom.1.90Glengair Group Limited6 pc cv B pr.3.10Glengair Group LimitedCl A wt..85Glengair Group LimitedCl B wt..90Glengair Group LimitedUnit6.25Glenlyon Mines LimitedCom..12Goderich Elevator & Transit Co. Ltd.Com.Gogama Minerals Ltd.Com.23Golconda Mining ExplorationCom.5.50Goldcrest Products Ltd.Com.3.50Golden Age Mines Ltd.Com..40Golden Gate Explorations Ltd.Com..25Golden Harker Explorations Ltd.Com..07Golden Shaft Mines Ltd.Com.Golden Spike Western Petroleums LimitedCom..06Golden West Resources LimitedCom..11Goldex Mines Ltd.Com.1.20Gold Hawk Exploration Ltd.Com.Gold Hawk Mines Ltd.Com..11Goldray Mines Ltd.Com..67Goldrim Mining Company Ltd.Com..10Gold River Mines Ltd.Com..15Goldstar Explorations & Investments LimitedCom.Golsil Mines Ltd.Com..46Goodyear Tire & Rubber Co. of Canada Ltd.Com.153.00Goodyear Tire & Rubber Co. of Canada Ltd.4 pc cu pr.34.50Gordon-Lebel Mines Ltd.Com..01Gordon Mackay & Stores Ltd.Cl A.6.00Gordon Mackay & Stores Ltd.Cl B.21.75Governor Gold Mines Ltd.Com.Gowganda Silver MinesCom..23Gradore Mines Ltd.Com.Grafton Fraser Limited6 pc cu pr.17.25Grafton Group Ltd.Com.20.75Gramara Mercantile Corp. Ltd.Com..18Grand Bahama Developments Co. Ltd.Com.Grandex Exploration and Investment Co. Ltd.Com.Grandroy Mines Ltd.Com..09Granduc Mines Ltd.Com.4.50Grandview Mines Ltd.Com..12Granisle Copper LimitedCom.7.95Granite Club Ltd.Com.14.75Granite Mountain Mines Ltd.Com..17Grasset Lake Mines Ltd.Com..20Gray Industries Inc.Com..40Great Bear Silver Mines Ltd.Com.Great Britain & Canada Investments Ltd.Com.18.75Great Britain & Canada Investments Ltd.5 1/4 pc cu pr.30.00Great Canadian Oil Sands LimitedCom.5.40Great Eagle Explorations & Holdings Ltd.Com.Great Eastern Resources Canada Ltd.Com..39Great Lakes Nickel Ltd.Com.1.37Great Lakes Paper Company LimitedCom.17.75Great Lakes Paper Company LimitedWt.2.30Great Lakes Power Corporation Ltd.Com.19.38Great Lakes Silver Mines Ltd.Com..11Great National Land & Investment Corp. Ltd.Com.1.05Great Northern Capital Corp. Ltd.Com.8.75Great Northern Gas Utilities Ltd.6 pc cu A pr.19.00Great Northern Petroleums & Mines Ltd.Com..69Great Northern Petroleums & Mines Ltd.A wt.Great Pacific Industries Ltd.Com.1.30Great Plains Development Co. of Canada Ltd.Com.29.75Great Slave Mines Ltd.Com..05Great West International Equities Ltd.Com.Great West Life Assurance Co.Com.43.00Great West Mining & Smelting Corp. Ltd.Com..16Great West Steel Industries Ltd.Com.5.13Greb Industries LimitedCom.4.90Green Coast Resources LimitedCom.4.90Green Eagle Mines Ltd.Com..42Greenfields Development Corporation Ltd.Com.Green Point Mines Ltd.Com..18Grenache Inc.Cl A.3.37Greyhound Computer of Canada Ltd.Com.1.65Greyhound Lines of Canada Ltd.Com.15.75Grissol Foods Ltd.Com.8.25Grouse Mountain Resorts Ltd.Com.2.40Grouse Mountain Resorts Ltd.6 pc cv pr.1.70Growers Wine Co. Ltd.Cl A.3.90Growers Wine Co. Ltd.Cl B.3.75GSW LimitedCl A.9.13GSW LimitedCl B.9.00GSW Limited5 pc cu pr.71.63Guarantee Co. of North America, TheCom.Guaranty Trust Company of CanadaCom.14.88Guaranty Trust Company of CanadaRt..53Guardian Growth Fund Ltd.Pr.8.84Guardian Management Corporation Ltd.Com.7.00Gubby Mines Ltd.Com.Guichon Mine Ltd.Com..03Gui-Por Uranium Mines & Metals Ltd.Com..15Gulch Mines Ltd.Com..06Gulf Lead Mines Ltd.Com.Gulf Oil Canada LimitedCom.25.63Gulf Oil CorporationCom.25.50Gulf Titanium Ltd.Com..25Gunn Mines Ltd.Com..24Hahn Brass Limited5 pc 1st pr.Halifax Developments LimitedCom.1.85Hallnor Mines Ltd.Com..80Halren Mines Ltd.Com..10Hambro Corp. of Canada Ltd.Com.13.00Hambro Corp. of Canada Ltd.5 1/2 pc cu A pr.Hamilton Group Limited, TheCom.21.38Hamilton Group Limited, The5 pc cu A pr.85.00Hamilton Harvey Ltd.Com.8.00Hamilton Trust & Savings Corp.Com.10.25Hamilton Trust & Savings Corp.Voting trustcom.10.50Hamilton Trust & Savings Corp.7 pc cu A Pr.18.88Hammond Investment CorporationCom.1.00Hand Chemical Industries LimitedCom.5.00Hand Chemical Industries LimitedPt pr.5.00Handy Andy CompanyCom.3.63Hanna Gold Mines Ltd.Com..19Hansa Explorations Ltd.Com.Hanson Mines Ltd.Com..14Hardee Farms International Ltd.Com.1.10Hardee Farms International Ltd.6 1/2 pc A pr.80.00Harding Carpets Ltd.Com.14.88Harding Carpets Ltd.Cl A.14.50Hardwicke Investment Corporation Ltd.Com.50.00Harlequin Enterprises Ltd.Com3.80Harris & Sons Ltd., J.Com.3.00Hart River Mines Ltd.Com..16Harvest Petroleums Ltd.Com..04Harvey’s Foods Ltd.Com..82Harvey Woods Ltd.Cl A.1.65Harvey Woods Ltd.Cl B..50Hawker Industries Ltd.Com.Hawker Siddeley Canada Ltd.Com.2.40Hawker Siddeley Canada Ltd.5 3/4 pc cu cv pr.58.50Hayes-Dana LimitedCom.12.00Headvue Mines Ltd.Com.Headway Corporation LimitedCom.3.45Headway Red Lake Gold Mines Ltd.Com..07Hearne Coppermine Explorations Ltd.Com..15Heath Gold Mines Ltd.Com..01Hedman Mines Ltd.Com..50Hertz Industries Ltd.Com..12Hewbet Mines Ltd.Com.Hibernia Mining Co. Ltd.Com..11Highland-Bell LimitedCom.Highland Chief Mines Ltd.Com..12Highland Lodge Mines Ltd.Com..08Highland Mercury Mines Ltd.Com..15Highland Queen Mines Ltd.Com..23Highland Queen Sportswear Ltd.Com.1.63Highland Valley Mines LimitedCom..09Highmont Mining Corporation Ltd.Com.2.10Highpoint Mines LimitedCom..05Hi-Lite Uranium Explorations Ltd.Com.Hinde & Dauch Ltd.Com.125.00H & M Tax Savers Ltd.Com.Hobrough Ltd.Com.3.00Hobrough Ltd.6 pc cu pr.1.70Hogan Mines Ltd.Com..12Holberg Mines LimitedCom.Hollinger Mines Ltd.Com.36.50Hollingsworth Mines Ltd.Com.Home Oil Co. Ltd.CI A.33.38Home Oil Co. Ltd.CI B.33.00Home Smith International Ltd.Com..75Home Supermarket Ltd.Com..30Honda Mining Co. Ltd.Com..29Horne Fault Mines Ltd.Com..07Horne & Pitfield Foods Ltd.Com.2.50Hotstone Minerals Ltd.Com..01House of Braemore Furniture Ltd.Com.3.50Houston Oils LimitedCom.1.94Houston Oils LimitedWt..65Howard Smith Paper Mills Ltd.$2.00 cu pr.25.38Howden & Company Limited, D.H.Com.3.10Hubbard Dyers LimitedCom.45.00Hubbard Dyers LimitedPr.Hubert Lake Ungava Nickel Mines Ltd.Com..01Hub Mining Exploration Ltd.Com..16Hucamp Mines Ltd.Com..27Huclif Porcupine Mines Ltd.Com.Hudson Bay Mines Ltd.Com..16Hudson Bay Mining & Smelting Co. Ltd.Com.21.00Hudson Bay Mountain Silver Mines Ltd.Com..08Hudson’s Bay CompanyCom.18.88Hudson’s Bay Oil & Gas Co. Ltd.Com.46.00Hudson’s Bay Oil & Gas Co. Ltd.5 pc cu cv A pr.55.50Hughes-Owens Co. Ltd.Cl B.9.00Hughes-Owens Co. Ltd.6.40 pc cu pr.21.13Hugh-Pam Porcupine Mines Ltd.Com..16Humlin Red Lake Mines Ltd.Com..01Hummingbird Mines Ltd.Com..85Hunch Mines Ltd.Com..03Hunter Basin Mines Ltd.Com..07Hunter Douglas LimitedCom.Huron Bruce Mines LimitedCom.Huron & Erie Mortgage Corporation, TheCom.25.00Husky Oil Ltd.Com.16.38Husky Oil Ltd.6 pc cu A pr.43.00Husky Oil Ltd.6 pc cu B pr.44.25Husky Oil Ltd.D wt.6.90Husky Oil Ltd.E wt.5.60Hydra Explorations Ltd.Com..17Hy’s of Canada LimitedCom.3.00Hytec Electronics Ltd.Com.I.A.C. LimitedCom.19.75I.A.C. Limited4 1/2 pc cu pr.69.00I.A.C. Limited5 3/4 pc cu pr.23.00I.A.C. LimitedWt.8.00Ibes International Ltd.Com..25Ibsen Cobalt Silver Mines Ltd.Com.Ice Station Resources Ltd.Com..21Ideal Bay Explorations Ltd.Com..11Imasco LimitedCom.20.00Imasco Limited6 pc cu pr.4.60Imperial General Properties LimitedCom.4.50Imperial General Properties LimitedWt.1.00Imperial Life Assurance Co. of CanadaCom.137.00Imperial Marine Industries Ltd.Com.1.05Imperial Marine Industries Ltd.A wt..16Imperial Metals and Power Ltd.Com..23Imperial Metals and Power Ltd.Wt.Imperial Oil LimitedCom.31.50Income Disability & Reinsurance Co. of CanadaCom.6.00Income Disability & Reinsurance Co. of CanadaWt..58Indal Canada LimitedCom.8.38Independent Mining Corp. Ltd.Com..01Index Mines LimitedCom.1.40Indian Mountain Metal Mines Ltd.Com..49Indusmin LimitedCom.9.75Industrial Adhesives LimitedCom.13.38Industrial Growth Management LimitedCom.3.75Industrial Life Insurance Company, TheCom.Ingersoll Machine & Tool Company Limited4 pc cu pr.Inglis Co. Ltd., JohnCom.9.50Initiative New Exploration Ltd.Com.2.25Inland Chemicals Canada Ltd.Com.3.05Inland Copper Ltd.Com..23Inland Natural Gas Co. Ltd.Com.13.00Inland Natural Cas Co. Ltd.5 pc cu pr.14.50In-Place Electronics LimitedCom..35In-Place Electronics Limited7 pc cv pr.Inqua Resources Ltd.Com..50Integrated Wood Products Ltd.Com.3.50Inter-City Gas LimitedCom.6.75Inter-City Gas Limited6 1/2 pc cu A 2nd pr.16.50Inter-City Gas LimitedB 2nd pr.19.50Inter-City Gas LimitedWt.2.90Inter-City Gas Limited1971 wt.3.05Inter-City Manufacturing Ltd.Cl A.Interior Breweries LimitedCom.3.35Intermetco Ltd.Com.2.30International Altas Development & Exploration Ltd.Com..19International Bibis Tin Mines Ltd.Com..08International Bond and Equity Corporation Ltd.Com.1.40International Bond and Equity Corporation Ltd.Cl A.1.22International Bond and Equity Corporation Ltd.Wt..16International Bornite Mines Ltd.Com..19International Business Machines Corp.Com.339.00International Copper Corp Ltd.Com..16International Halliwell Mines Ltd.Com..21International Hydrodynamics Company Ltd.Com.1.20International Hydrodynamics Company Ltd.B Wt.International Hydrodynamics Company LtdRt.International Kenville Gold Mines Ltd.Com..10International Land Corporation Ltd.Com.5.75International Mariner Resources Ltd.Com..66International Mariner Resources Ltd.C wt..19International Minerals & Chemical Corp. (Canada) Ltd.Com.16.88International Mogul Mines Ltd.Com.7.40International Nickel Co. of Canada Ltd.Com.32.63International Norvalie Mines Ltd.Com..06International Obaska Mines Ltd.Com..28International Paper Co.Com.International Space Modules Ltd.Cl B.90International Systcoms Ltd.Com..57International Utilities CorporationCom.42.75International Utilities CorporationCl A cv.49.75International Utilities Corporation$1.32 cu cv pr.International Visual Systems Ltd.Com.1.25International Visual Systems Ltd.Wt..40Interplex S.P.A. Industries Ltd.Com..60Interpool International Ltd.Com.20.00Interprovincial Allied Properties Ltd.Com.1.35Inter-Provincial Diversified Holdings LimitedCom.3.25Interprovincial Pipeline Co.Com.30.63Interprovincial Pipeline Co.Wt.14.50Interprovincial Steel & Pipe Corp Ltd.Com.7.63Interprovincial Steel & Pipe Corp Ltd.$1.20 cu cv pr.23.75Inter-Rock Oil Co. of Canada LimitedCom..15Inter-Tech Development & Resources Ltd.Com..80Investment Foundation Ltd.Com.41.50Investors Group, TheCom.7.75Investors Group, TheCl A.7.75Investors Group, The5 pc cu cv pr.21.00Invicta Explorations, Ltd.Com..08Ionarc Smelters LimitedCom.1.40I.O.S. LimitedCom.Irish Copper Mines Ltd.Com..07Iron Bay TrustCom.3.10Iron City Mines Ltd.Com..15Iron Cliff Mines Ltd.Com..17Ironco Mining & Smelting Ltd.Com.Iroquois Petroleum Co. Ltd.Com.Irwin Toy Ltd.Com.17.00Isec Canada Ltd.Com..10Iskut Silver Mines Ltd.Com..16Island Telephone Co. Ltd.Com.10.25ISO Mines Ltd.Com.1.35Israel Continental Oil Co. Ltd.Com..21I.T.L. Industries LimitedCom.4.25I.T.L. Industries Limited6 1/2 pc cu cv pr.10.50Ivaco Industries LimitedCom.14.25IWC Industries LimitedCom.1.90Jackpot Copper Mines LimitedCom..07Jack Waite Mining Co.Com..03Jacobus Mining Corp. Ltd.Com..03Jacola Mines Ltd.Com..04Jagor Resources LimitedCom..20Jahalla Lake Mines Ltd.Com..04Jamaican Mining Ltd.Com.Jamaica Public Service Co. Ltd.Com..23Jameland Mines Ltd.Com..05James Bay Mining Corp.Com..22Jamex Explorations LimitedCom..32Janus Explorations Ltd.Com..06Jason Explorers Ltd.Com..13Jason Explorers Ltd.A wt.Jaye Explorations Ltd.Com..06J B Automatik Ltd.Com.Jean Lake Lithium Mines Ltd.Com..02Jelex Mines Ltd.Com..10Jenkins Bros. Ltd.Com.Jericho Mines Ltd.Com..10Jersey Consolidated Mines Ltd.Com..11Jespersen-Kay Systems Ltd.Com.3.00Joburke Gold Mines Ltd.Com..02Jockey Club Ltd., TheCom.5.25Jockey Club Ltd., The5 1/2 pc cu B pr.10.38Jockey Club Ltd., The5.60 pc cu 2nd pr.10.38Jockey Club Ltd., The6 pc cu A 1st pr.10.38Johnson & JohnsonCom.97.75Joliet-Quebec Mines Ltd.Com..19Jolly Jumper Products of America Ltd.Com.1.30Jolly Jumper Products of America Ltd.Wt.Jonsmith Mines Ltd.Com..07Jorex LimitedCom.1.36Joutel Copper Mines Ltd.Com..52Jowsey Denton Gold Mines Ltd.Com.Joy Mining Ltd.Com..95Joy Mining Ltd.A wt..05Juma Mining & Exploration Ltd.Com..02Juniper Mines Ltd.Com..16Kaiser Resources Ltd.Com.3.95Kalco Valley Mines Ltd.Com..15Kallio Iron Mines Ltd.Com.5.00Kal Resources Ltd.Com..64Kamad Silver Company Ltd.Com..35Kamco Developments Ltd.Com.Kam-Kotia Mines Ltd.Com..45Kamloops Copper Consolidated Ltd.Com..07Kappa Explorations Ltd.Com..36Kaps Transport LimitedCom.8.13Kardar Canadian Oils Ltd.Com.1.88KB Mining Co. Ltd.Com..11Keeprite Products Ltd.C1 A.11.75Kelglen Mines Ltd.Com..05Kellcam Explorations Ltd.Com.Kelly-Desmond Mining Corp. Ltd.Com..01Kelly-Deyong Sound Corporation Ltd.Com..85Kelly Douglas & Co. Ltd.C1 A cu pr.5.50Kelsey-Hayes Canada Ltd.Com.7.00Keltic Mining Corp. Ltd.Com.Kelver Mines LimitedCom..18Kelvinator of Canada LimitedCom.5.00Kendon Copper Mines Ltd.Com.Kenogamisis Gold Mines Ltd.Com..09Kenting LimitedCom.10.25Kenwest Mines Ltd.Com..02Kerr Addison Mines Ltd.Com.7.40Kewagama Gold Mines Que. Ltd.Com..05Key-Anacon Mines Ltd.Com..25Key Industries LimitedCom..22Keystone Business Forms LimitedCom.3.00Key-Way Mining Co. Ltd.Com..07Kidd Copper Mines Ltd.Com.Kiena Gold Mines Ltd.Com..75Kilarney Gas & Oil Development Co. Ltd.Com.Kilembe Copper Cobalt Ltd.Com.2.25Kimberlite Mining Corp. Ltd.Com.King Island Mines Ltd.Com..03King Kirkland Gold Mines Ltd.Com.Kingswood Explorations Ltd.Com..14Kingswood Explorations Ltd.Wt.Kirkland Gateway Gold Mines Ltd.Com.Kirkland Minerals Corp. Ltd.Com..07Kismet Mining Corporation Ltd.Com..37Knobby Lake Mines LimitedCom..20Knogo Corp. Ltd.Com..75Koffler Stores Ltd.Com.15.38Koffler Stores Ltd.7pc A 1st pr.8.88Koffler Stores Ltd.Wt.6.85Komo Explorations Ltd.Com..07Kontiki Lead & Zinc Mines Ltd.Com..03Kopan Developments Ltd.Com..06KSF Chemical Processes Ltd.Com.1.80KSF Chemical Processes Ltd.1968 wt..50K. T. Mining Ltd.Com..11Kukatush Mining Corp. (1960) Ltd.Com.1.75Kupfer Mines Ltd.Com..42Labatt Limited, JohnCom.22.00Labatt Limited, JohnCv A pr.23.88Labrador Mining & Exploration Co. Ltd.Com.35.25Lacanex Mining Company LimitedCom..90Lacanex Mining Company LimitedWt..45Laddie Gold Mines Ltd.Com..04Laduboro Oil Ltd.Com..90Laidlaw Motorways Ltd.Com.14.88Laidlaw Motorways Ltd.7 pc cu cv A pr.15.38Laidlaw Motorways Ltd.Wt.10.62Laiteries Leclerc Inc., LesCl A.10.75Lake Beaverhouse Mines LimitedCom..12Lake Dufault Mines Ltd.Com.12.13Lake Erie Gas Ltd.Com.Lake Expanse Gold Mines Ltd.Com..09Lakehead Mines Ltd.Com..09Lake Kozak Mines Ltd.Com..04Lakeland Natural Gas Ltd.Wt.Lakelyn Mines Ltd.Com..10Lake Ontario Cement Ltd.Com.2.70Lake-Osu Mines Ltd.Com..09Lake Shore Mines Ltd.Com.2.30Lakeside Oil & Gas Ltd.Com.La Luz Mines Ltd.Com.1.55Lambert Inc., AlfredCl A.15.25Lambton Loan & Investment Co.Com.Lancer of Canada LimitedCom.1.85Langis Silver & Cobalt Mining Co. Ltd.Com..06Larandona Mines Ltd.Com.Larchmont Mines Ltd.Com..08Largo Mines Ltd.Com..22Laroma Midlothian Mines Ltd.Com..04Laronge Mining Ltd.Com..81Larum Mines Ltd.Com..02Lassie Red Lake Gold Mines Ltd.Com..07Lassiter Petroleums Ltd.Com.Laura Mines LimitedCom..20Laura Secord Candy Shops Ltd.Com.8.88Laurentide Financial Corp. Ltd.Com.10.38Laurentide Financial Corp. Ltd.$1.25 cu pr.17.50Laurentide Financial Corp. Ltd.$1.40 cu pr.19.00Laurentide Financial Corp. Ltd.$2.00 cu cv 2nd pr.25.88Laurentide Financial Corp. Ltd.6 1/4 pc cu pr.17.00La Verendrye Management Corp.Com.8.00Lawson & Jones Ltd.Cl A.18.00Lawson & Jones Ltd.Cl B.92.50Leamoor Minerals Ltd.Com.1.10Lederic Mines Ltd.Com..18Leeds Metals Co. Ltd.Com..04Leemac Mines Ltd.Com..21Leigh Instruments LimitedCom.4.45Leigh Instruments Limited$2.60 cu cv A pr.25.00Leisure World Nursing Homes Ltd.Com.1.00Leitch Mines Ltd.Com.Lemtex Developments LimitedCom..55Lennie Red Lake Gold Mines Ltd.Com..03Leon’s Furniture Ltd.Com.6.13Lequer Mines & Investments Ltd.Com.Levack Mines Ltd.Com.Levy Industries Ltd.Com.13.50Levy Industries Ltd.6 pc cu A pr.6.50Lewes River Mines Ltd.Com..11Lewis Red Lake Mines Ltd.Com..22Lexington Mines LimitedCom..25Liberian Iron Ore LimitedCom.10.13Life Investors Ltd.Com.7.50Life Investors Ltd.Wt.1.25Lincoln Trust & Saving CompanyCom.12.13Lingside Copper Mining Co. LimitedCom..03Linland Equipment Sales Ltd.Com.1.25Lion Mines Ltd.Com.Lion Nickel Mines of Canada Ltd.Com..25Lithium Corporation of Canada Ltd.Com..05Little Hatchet Minerals Ltd.Com..30Little Long Lac Mines LimitedCom.1.80Livingston Industries Ltd.Com.9.00Livingston Industries Ltd.6 pc cu A 1st pr.39.25Livingston Industries Ltd.Wt.5.00Lobell Mines Ltd.Com.Loblaw Companies LimitedCl A.5.75Loblaw Companies LimitedCl B.5.75Loblaw Companies Limited$2.40 cu pr.30.00Loblaw Groceterias Co. LimitedCom.99.50Loblaw Groceterias Co. Limited$1.50 cu A pr.18.50Loblaw Groceterias Co. Limited$1.60 cu B pr.19.88Loblaw Groceterias Co. Limited$6.60 2nd pt pr.60.00Loblaw Inc.Com.7.00Locana Corporation Ltd.Com.Lochaber Oil Corp. Ltd.Com.Lochiel Explorations Ltd.Com.1.54Lodestar Mines Ltd.Com..05Loeb Ltd., M.Com.3.55Logistec Corp.Com.8.25Loisan Red Lake Gold Mines Ltd.Com..04London Life Insurance Co.Com.68.50London Pride Silver Mines Ltd.Com..09Lone Creek Mines Ltd.Com..50Lord Simcoe Hotel Ltd.Cl A.Lori Explorations Ltd.Com..21Lornex Mining Corporation Ltd.Com.6.80Lost River Mining Corp. Ltd.Com.3.85Louanna Gold Mines Ltd.Com..05Louisbourg Mines Ltd.Com.Louisiana Land & Exploration Co.Com.Louvicourt Goldfield Corp.Com..11Lower Valley Mines Ltd.Com..12Lucky Strike Mines LimitedCom..13Lundor Mines Ltd.Com..55Luxor Red Lake Mines Ltd.Com.Lynbar Mining Corp. Ltd.Com..10Lyndhurst Mining Co. Ltd.Com..02Lynx-Canada Explorations LimitedCom.1.35Lynx Yellowknife Gold Mines Ltd.Com..04Lytton Mineral LimitedCom.1.30Macandrews Red Lake Gold Mines Ltd.Com.Macdonald Mines Ltd.Com..08Maclan Exploration LimitedCom..63Maclaren Power & Paper Co.Cl A.15.00Maclaren Power & Paper Co.Cl B.16.00Maclaren Power & Paper Co.1 pc pr..50Maclean-Hunter Cable TV LimitedCom.8.00Maclean-Hunter Cable TV Limited7 pc cu A pr.18.62Maclean-Hunter LimitedCom.8.75Maclean-Hunter LimitedCl B.9.50Macmillan Bloedel LimitedCom.25.50Macmillan Bloedel Limited3 pc pr..47Madeleine Mines Ltd.Com.2.54Madill Ltd., S.Com.6.50Madison Oils Ltd.Com..12Madsen Red Lake Gold Mines Ltd.Com..60Magadyne Industries LimitedCom.1.25Magna Electronics Corp. Ltd.Com.4.05Magna Electronics Corp. Ltd.6 1/2 pc cu pr.Magnasonic Canada Ltd.Com.8.00Magnetics International Ltd.Com..80Magnum Fund Ltd.Com.23.38Magoma Mines Ltd.Com..04Maher Shoes LimitedCom.20.25Maher Shoes LimitedPr.8.00Main Oka Mining Corp.Com.Majestic Explorations Ltd.Com.Major Holdings & Development Ltd.Com.1.60Malartic Goldfields Quebec Ltd.Com..55Malartic Hygrade Gold Mines Ltd.Com.2.25Mandarin Mines Ltd.Com..16M and M Porcupine Gold Mines Ltd.Com..08Maneast Uranium Corp. Ltd.Com..01Manhattan Continental Development CorporationCom..31Manitou-Barvue Mines Ltd.Com..33Manix Mining Co. Ltd.Com..20Manoka Mining & Smelting Co. Ltd.Com.Manor Mines Ltd.Com.Manterre Gold Mines Ltd.Com..01Maple Leaf Gardens Ltd.Com.30.50Maple Leaf Mills Limited5 1/2 pc cl B pr.70.00Maple Leaf Mills LimitedCom.15.50Maple Leaf Mines Ltd.Com..13Maracambeau Mines Ltd.Com..07Mara Lake Mines Ltd.Com..09Marchant Mining Co. Ltd.Com..60Marche Union Inc.Com.3.60Mareast Explorations Ltd.Com.Margaret Red Lake Mines 1940 Ltd.Com.Maria Mining Corp. Ltd.Com.Marigot Investments Ltd.Com..25Mariner Mines LimitedB wt.Maritime Electric Co. Ltd.Com.27.00Maritime Telegraph & Telephone Co. Ltd.Com.22.13Maritime Telegraph & Telephone Co. Ltd.7 pc cu pr.Markborough Properties Ltd.Com.5.38Markborough Properties Ltd.Wt..70Marlex Enviro-Systems & Resources Ltd.Com..24Marshall Boston Iron Mines Ltd.Com..26Marshall Creek Copper Co. Ltd.Com..07Martin-Bird Gold Mines Ltd.Com..01Martin-McNeely Mines Ltd.Com..07Marval Mines Ltd.Com..35Marvens Ltd.Cl A.Massey-Ferguson LimitedCom.11.63Massval Mines LimitedCom..07Master Metal Corp. Mining Ltd.Com..55Mastermet Cobalt Mines Ltd.Com..05Matachewan Consolidated Mines Ltd.Com..07Mate Yellowknife Gold Mines LimitedCom..05Matrix Exploration LimitedCom..23Mattagami Lake Mines Ltd.Com.27.88Matt Berry Mines Ltd.Com..09Maverick Mines & Oils LimitedCom..12Maverick Mountain Resources Ltd.Com..20Maybrun Mines Ltd.Com..10Maycor Mines Ltd.Com..05Mayfair Molly Mines Ltd.Com..06Mayfield Explorations Ltd.Com..14Maylac Gold Mines Ltd.Com.McAdam Mining Corp. Ltd.Com..41McCarthy Milling Co. Ltd.Cl A.McCarthy Milling Co. Ltd.Cl B.McCoy Lake Mines LimitedCom.McCuaig Red Lake Gold Mines Ltd.Com..02McFinley Red Lake Gold Mines Ltd.Com..05McIntyre-Porcupine Mines Ltd.Com.74.75McLaughlin Associates Ltd., S.B.Com.13.00McLaughlin Associates Ltd., S.B.Wt.5.30McManus Red Lake Gold Mines Ltd.Com..01McMarmac Red Lake Gold Mines Ltd.Com..01McVittie Graham Mining Co. Ltd.Com.1.55Medipack Corp. Ltd.Com.1.45Melchers Distilleries LimitedCom.11.00Melton Real Estate Ltd.Com.1.60Melton Real Estate Ltd.A wt..48Menorah Mines Ltd.Com..11Mentor Exploration & Development Co. Ltd.Com..60MEPC Canadian Properties Ltd.Com.7.38MEPC Canadian Properties Ltd.6 pc cu A pr.18.88MEPC Canadian Properties Ltd.Wt.2.40MEPC Canadian Properties Ltd.Rt.Mercuria Industries LimitedCom..80Mercury Explorations LimitedCom..10Merged Mining Enterprises Ltd.Com..15Meridian Mining & Exploration Co. Ltd.Com..58Merland Explorations LimitedCom..75Meta Uranium Mines Ltd.Com..11Meteor Mining Company LimitedCom..04Metropolitan Stores of Canada Ltd.Com.15.38Metropolitan Stores of Canada Ltd.6 1/2 pc cu 1961 pr.18.50Metropolitan Stores of Canada Ltd.$1.30 cu 1967 pr.19.50Metropolitan Trust Company, TheCom.18.75Metropolitan Trust Company, TheRt..90Mexican Light & Power Co. LimitedCom.6.82Mexican Light & Power Co. Limited$1.00 cu pr.11.38Mextor Minerals Ltd.Com..30MGF Management Ltd.Cl A.1.95Mica Company of Canada Ltd.Com.Microsystems International Ltd.Com.5.38Microsystems International Ltd.Wt.1.70Midcon Oil & Gas LimitedCom..51Middle Bay Mines Ltd.Com..01Midepsa Industries Ltd.Com..16Mid Industries & Explorations Ltd.Com..40Midland Nickel Corp. Ltd.Com..18Midland Petroleums LimitedCom..06Mid Patepedia Mines Ltd.Com..14Midrim Mining Co. Ltd.Com..12Mid-West Mines Ltd.Com..05Mija Mines LimitedCom..12Miles Red Lake Mines Ltd.Com..02Milestone Exploration Ltd.Com..08Mill City Petroleums Ltd.Com.2.06Millerfields Silver Corp. Ltd.Com.Milton Brick Company Ltd.Com.3.85Mindustrial Corporation Ltd.Com.7.25Minedel Mines Ltd.Com..04Mineral Exploration Corp. Ltd.Com..12Mineral Mountain Mining Co. Ltd.Com..18Mineral Resources International Ltd.Com..35Mines Iberville LtéeCom.Minex Development Ltd.Com..10Min-Ore Mines Ltd.Com..03Mirado Nickel Mines Ltd.Com..02Miro Mines Ltd.Com..05Miron Company Ltd.Cl A.4.10Mistango River Mines Ltd.Com..12Mistassini Uranium Mines Ltd.Com..10Mitchell Co. Ltd., RobertCl A.11.50Mitchell Co. Ltd., RobertCl B.M L W Worthington LimitedCom.12.75Mobilex Development Corporation LimitedCom..85Mobil Oil CorporationCom.51.25Mogar Mines Ltd.Com.Mohawk Industries Ltd.Com..90Mohawk Industries Ltd.6 pc cu cv pr.1.95Mohawk Mines Ltd.Com..02Mollie Mac Mines Ltd.Com..09Molson Industries Ltd.Cl A.19.75Molson Industries Ltd.Cl B.19.75Molson Industries Ltd.Cl C.Molybdenite Corp of Canada LimitedCom.Molymine Exploration Ltd.Com..10Moly-Ore Mines Ltd.Com..32Monarch Gold Mines Ltd.Com..02Monarch Investments Ltd.Com.23.38Monarch Life AssuranceCom.28.00Monarch Metal Mines Ltd.Com..07Monenco Ltd.Com.6.00Moneta Porcupine Mines Ltd.Com..60Monpre Iron Mines Ltd.Com.Monteagle Minerals Ltd.Com..35Monterey Petroleum CorporationCom..21Mont Laurier Uranium Mines Ltd.Com..86Montreal City & District Savings BankCom.14.88Montreal Refrigerating & Storage Ltd.Com.Montreal Trust Co.Com.18.13Moore Corp. Ltd.Com.38.00Mooshla Gold Mines Co. Ltd.Com..01More Mines LimitedCom..17Moresby Mines Ltd.Com..15Morocco Mines Ltd.Com..08Morono Copper Mines Ltd.Com..21Morse Corporation Ltd., Robt.Cl A.14.00Morse Corporation Ltd., Robt.Cl B.30.00Morse Corporation Ltd., Robt.5 1/2 pc cu cv A pr.33.00Morse Corporation Ltd., Robt.5 1/2 pc cu cv B pr.31.50Motorcade Stores LimitedCom..25Mount Jamie Mines Quebec LimitedCom..15Mount Keno Mines Ltd.Com..01Mount Pleasant Mines Ltd.Com..25Mount Royal Rice Mills Ltd.Com.7.50Mount Royal Rice Mills Ltd.5.80 pc cu pr.20.00Mount Washington Copper Co. Ltd.Com..07Mount Wright Iron Mines Ltd.Com..20MPG Investment Corporation LimitedCom.4.20MPG Investment Corporation Limited$1.30 cu pr.15.00MSN Industries Ltd.Com.6.13Mt Hyland Mines Ltd.Com..17MTS International Services Inc.Com.3.00Multi-Minerals Ltd.Com..27Multiple Access General Computer Corporation LimitedCom.1.25Murgor Explorations Ltd.Com..09Murky Fault Metal Mines Ltd.Com..50Murmac Lake Athabasca Mines Ltd.Com..02Murphy Oil Co. Ltd.Com.12.00Murphy Oil Co. Ltd.5 3/4 pc cu cv A pr.31.00Murrit Photofax Ltd.Com.3.30Murrit Photofax Ltd.Wt..40Muscocho Exploration Ltd.Com..18Mustang Mines Ltd.Com..29Mymar Mining & Reduction Ltd.Com..27My-Pitt Red Lake Gold Mines Ltd.Com.Myteque Mines LimitedCom.Mytolon Chemical Inc.Com.2.75Mytolon Chemical Inc.Wt.1.00Nabors Drilling LimitedCom.10.00Na-Churs International LimitedCom.6.00Nadina Explorations Ltd.Com..91Naganta Mining & Development Co. Ltd.Com..21Nahanni Mines Ltd.Com..20Nasco Cobalt Silver Mines Ltd.Com..01National Drug & Chemical Co. of Canada Ltd.Com.6.00National Drug & Chemical Co. of Canada Ltd.Cu cv pr.8.50National Grocers Company Limited$1.50 cu pr.24.44National Hees Enterprises Ltd.Com.2.75National Hees Industries Ltd.Com.2.70National Hees Industries Ltd.6 pc cv 1st pr.National Nickel LimitedCom..17National Nursing Homes Ltd.Com.1.75National Nursing Homes Ltd.Wt..35National Petroleum CorporationCom.2.35National Sea Products Ltd.Com.9.50National Sea Products Ltd.5 1/2 pc cu pr.3.25National Trust Co. Ltd.Com.32.50Nation Lake Mines Ltd.Com.Native Minerals Ltd.Com..03Native Mines Ltd.Com..05Navco Food Services LimitedCom.Negor Mines Ltd.Com.Nello Mining Ltd.Com.Nelson’s Laundries Co. Ltd.6 pc cu pr.7.25Nemrod Mining Co. Ltd.Com..18Neonex International LimitedCom.3.70Nesbitt Mining & Exploration Ltd.Com..25New Arntfield Mines Ltd.Com.New Associated Developments Ltd.Com.New Athona Mines Ltd.Com..10Newbaska Gold & Copper Mines Ltd.Com.New Bedford Explorations Ltd.Com..09New Bidlamaque Gold Mines Ltd.Com.New Brunswick Telephone Co. Ltd.Com.14.63New Brunswick Uranium Metals & Mining Ltd.Com.2.90New Calumet Mines Ltd.Com..20New Campbell Island Mines Ltd.Com.New Cinch Uranium Ltd.Com..19Newconex Holdings Ltd.Com.4.70New Continental Oil Company of Canada LimitedCom..69New Cronin Babine Mines Ltd.Com..06New Davies Petroleums Ltd.Com..06New Digby Dome Mines Ltd.Com..04New Dimension Resources Ltd.Com..58New Dominion Nickel Mines Ltd.Com..02New Far North Exploration Ltd.Com..04New Formaque Mines Ltd.Com..04New Forty Four Mines Ltd.Com.Newfoundland Light & Power Co. Ltd.Com.12.25Newfoundland Light & Power Co. Ltd.5 1/2 pc cu A pr.New Gateway Oils & Minerals Ltd.Com..11New Glacier Explorers Ltd.Com..05New Gold Star Mines LimitedCom.New Goldvue Mines Ltd.Com..06New Harricana Mines Ltd.Com.New Hope Porcupine Gold Mines Ltd.Com.New Hosco Mines Ltd.Com..62New Indian Mines Ltd.Com..06New Insco Mines Ltd.Com..40New Jason Mines Ltd.Com..03New Kelore Mines Ltd.Com..05New Lorie Mines Ltd.Com..04Newlund Mines Ltd.Com..13New Mallen Red Lake Mines Ltd.Com..01New Marvel Oils Ltd.Com..15New Metalore Mining Co. Ltd.Com..45New Miller Pipe Lines & Mining Exploration Ltd.Com..07New Mount Costigan Mines Ltd.Com..16Newnorth Gold Mines Ltd.Com..05New Pascalis Mines Ltd.Com..20New Picton Uranium Mines Ltd.Com.New Potterdoal Mines Ltd.Com..04New Privateer Mines LimitedCom..19New Providence Development Co.Com..36New Quebec Raglan Mines LimitedCom.6.90New Redwood Gold Mines Ltd.Com.Newrich Explorations Ltd.Com..06New Senator Rouyn Ltd.Com..08New Taku Mines LimitedCom..26New Territorial Uranium Mines Ltd.Com..11New Unisphere Resources LimitedCom..42Newvan Resources Ltd.Com..28New Walcord Mines Ltd.Com..02New Wellington Mines Ltd.Com..21New York Oils LimitedCom..65Niagara Structural Steel Co. Ltd.Com.Niagara Structural Steel Co. Ltd.6 1/2 pc cu cv A pr.18.00Niagara Wire Weaving Company Limited, TheCom.11.00Niagara Wire Weaving Company Limited, TheCl B.10.00Nickel Hill Mines LimitedCom..14Nickel Lake Mines Ltd.Com..02Nickel Offsets Ltd.Com..14Nickel Rim Mines LimitedCom..10Nicoba Mines Ltd.Com..02Nicohal Mines Ltd.Com.Nisson Mining & Development LimitedCom.1.80Nith River Petroleums Ltd.Com..31Nitracell Canada Ltd.Com..30Noble Mines & Oils Ltd.Com.1.15Nocana Mines Ltd.Com..03Noctin Investment Corporation Ltd.Com.Noland Mines Ltd.Com.Nor-Acme Gold Mines Ltd.Com..18Noradco Mines Ltd.Com.Noranda Mines Ltd.Com.32.75Norbaska Mines Ltd.Com..19Norcan Mines LimitedCom..10Norco Oil Corp.Com.1.19Nordev Mines Ltd.Com..10Nordex Explosives Ltd.Com..50Nordic Industries Ltd.Com..18Norex Resources LimitedCom..20Norgold Mines LimitedCom..03Norlex Mines Ltd.Com..26Normont Copper Ltd.Com.Norque Copper Mines Ltd.Com.Norseman Mines LimitedCom..80Northair Mines Ltd.Com..15North American Asbestos Co. Ltd.Com..04North American Land & Leisure Ltd.Com.North American Rare Metals Ltd.Com..18North American Rockwell Corp.Com.29.00Northcal Mines Ltd.Com..41North Canadian Oils Ltd.Com.5.50North Canadian Oils Ltd.5 1/2 pc cu pr.38.00North Coldstream Mines Ltd.Com..48North Continental Oil & Gas Corporation Ltd.Com..02North D’Arcy Explorations Ltd.Com..20Northern Canada Mines Ltd.Com..49Northern & Central Gas Corporation Ltd.Com.14.00Northern & Central Gas Corporation Ltd.$1.06 cu cv pr.22.00Northern & Central Gas Corporation Ltd.$1.50 cu cv pr.28.75Northern & Central Gas Corporation Ltd.$2.60 cu 1st pr.37.25Northern & Central Gas Corporation Ltd.$2.70 cu pr.37.00Northern & Central Gas Corporation Ltd.Wt.5.50Northern Coal Mines Ltd.Com..12Northern Gem Mining Corp. Ltd.Com..02Northern Homestake Mines Ltd.Com..24Northern Homestake Mines Ltd.Rt..01Northern Metals LimitedCom.Northern Nuclear Mines Ltd.Com.Northern Quebec Explorers Ltd.Com..12Northern Tar, Chemical & Wood Ltd.Com.3.25Northern Tar, Chemical & Wood Ltd.Cu A pr.17.00Northern Telephone Ltd.5 1/2 pc cu A 1st pr.Northern Telephone Ltd.5 1/2 pc cu B 1st pr.Northern Telephone Ltd.5 1/2 pc cu C 1st pr.14.50North Expo Mines Ltd.Com.Northgate Exploration Ltd.Com.4.70North Island Mines LimitedCom..12Northland Oils Ltd.Com..82Northland Trust Co.Com.Northlode Explorations Ltd.Com..16North Pacific Mines Ltd.Com..37North Rock Explorations Ltd.Com.2.25Northville Explorations Ltd.Com..06Northwest Canalask Nickel Mines Ltd.Com..06North Western Utilities Ltd.4 pc cu pr.54.00Northwest Sports Enterprises Ltd.Com.6.00Northwest Trust Co.Com.Northwest Trust Co.Pr.Northwest Ventures LimitedCom..52North Whitney Mines Ltd.Com.Nor-West Kim Resources Ltd.Com..18Nor-West Kim Resources Ltd.B wt.Nouvelle Mining Exploration Ltd.Com..10Nova Beaucage Mines Ltd.Com..26Nova Scotia Light & Power Co. Ltd.Com.13.13Nova Scotia Light & Power Co. Ltd.4 pc cu pr.Nova Scotia Light & Power Co. Ltd.4 1/2 pc cu pr.Nova Scotia Light & Power Co. Ltd.5 pc cu pr.Nova Scotia Savings and Loan Co.Com.15.50NQN Mines Ltd.Com..17NSI Marketing Ltd.Com.3.65Nudulama Mines Ltd.Com.Numac Oil & Gas Ltd.Com.12.75Nu-West Development Corp. Ltd.Com.8.25NWL Financial Corporation Ltd.Com.2.10NWP Developments Ltd.Com.NWT Copper Mines Ltd.Com..15Oakville Wood Specialties Limited6 pc cu pr.Oakwood Petroleums LimitedCom.1.00O’Brien Gold Mines LimitedCom..14Occidental Petroleum CorporationCom.12.25Ocean Cement & Supplies Ltd.Com.29.50Oceanic Iron Ore of Canada Ltd.Com..15Ogilvie Flour Mills Co. Ltd.7 pc cu pr.25.25Oil Patch Equipment Sales & Rentals Ltd.Com.1.90Okanagan Helicopters Ltd.Com.6.25Okanagan Helicopters Ltd.6 pc cu A pr.Okanagan Helicopters Ltd.6 pc cv 2nd pr.11.50Okanagan Helicopters Ltd.Wt.3.00Okanagan Holdings Ltd.Com.5.13Okanagan Telephone Company$0.40 cu pr.5.25Old Canada Investment Corporation Ltd.Com..70Old Canada Investment Corporation Ltd.6 pc A 1st pr.1.45Old Canada Investment Corporation Ltd.Wt..50Olivet Gold Mines Ltd.Com.Omega Hydrocarbons Ltd.Com..07Omega Mines Ltd.Com..14Onaco Petroleums Ltd.Com..08Onapping Mines Ltd.Com..08Ontex Mining Ltd.Com..38Opemiska Copper Mines Quebec Ltd.Com.8.10Open End Mines LimitedCom..31Orangeroof Canada Ltd.Com.5.25Orchan Mines Ltd.Com.3.55Ordala Mines Ltd.Com.Orlando Realty Corporation Ltd.Com.4.95Orofino Mines Ltd.Com..13Oro Mines Ltd.Com..20Ortega Minerals Ltd.Com..05Orvalley Gold Mines Ltd.Com.OSF Industries LimitedCom.4.75Oshawa Group Ltd.CI A.11.38Oshawa Group Ltd.Wt.1.50Osisko Lake Mines Ltd.Com..27Ourgold Mining Co. Ltd.Com.Overland Express Ltd., TheCom.10.50Overland Express Ltd., The$0.60 cu cv pr.22.00Overland Express Ltd., The2nd pt pr.4.45Pace Industries Ltd.Com..85Pace Industries Ltd.Wt.Pacific Asbestos Ltd.Com.1.32Pacific Atlantic Canadian Investment Co. Ltd.Com.4.05Pacific Atlantic Canadian Investment Co. Ltd.5 pc cu A pr.Pacific Copper Mines Ltd.Com.1.85Pacific Enterprises Ltd.Com.1.65Pacific Gas Transmission Co.Com.Pacific Nickel Mines Ltd.Com..31Pacific Northern Gas Ltd.CI A.3.50Pacific Northern Gas Ltd.6 3/4 pc cu pr.22.50Pacific Northern Oils Ltd.Com..07Pacific Petroleums LimitedCom.31.63Pacific Silver Mines & Oils Ltd.Com..06Pacific Sulphur Ltd.Com.Pacific Western Airlines Ltd.Com.12.63Pacific Western Airlines Ltd.6 pc cu pr.30.88Packard Pershing Mines Ltd.Com.Paco Corporation of Canada Ltd.Com.1.85Page Petroleum Ltd.Com.1.50Palco Explorations Ltd.Com..15Palliser Petroleums Ltd.Com.Palmer McLellan (United) Ltd.Com.Palomino Explorations Ltd.Com..10Pamike Mines Ltd.Com..20Pamour Porcupine Mines Ltd.Com.1.75Panacan Resources Ltd.Com..38Panacea Mining & Exploration Ltd.Com.Pan American Mines Ltd.Com.Pan Canadian Petroleums LimitedCom.15.25Pancana Industries Ltd.Com.2.35Pan Eastern Corporation Ltd.Com..29Pango Gold Mines Ltd.Com.Pan Ocean Oil CorporationCom.11.38Panther Mines Ltd.Com..20Paragon Properties LimitedCom.3.10Paramaque Mines Ltd.Com..03Paramount Mining Ltd.Com..20Parkland Beef Industries Ltd.Com..30Park Lawn Cemetery CompanyCom.Parr Mines Ltd.Com..14Partridge River Mines Ltd.Com.Pathfinder Resources Ltd.Com..92Pathfinder Resources Ltd.B wt..16Patino Naamloze VennootschapCom.13.75Pato Consolidated Gold Dredging Ltd.Com.6.50Patricia Silver Mines Ltd.Com..06Paulpic Gold Mines Ltd.Com..13Pax International Mines Ltd.Com..01Payco Mines Ltd.Com..05Payette River Mines LimitedCom..06Payfair Industries Ltd.Com.PCE Explorations LimitedCom..52Peace River Mining & Smelting Ltd.Com.Peace River Petroleums Ltd.Com..17Peel-Elder LimitedCom.14.13Peel Resources Ltd.Com..14Pelangio Larder Mines Ltd.Com..02Pembina Pipe Line Ltd.CI A.7.13Pembina Pipe Line Ltd.CI B.7.00Pembina Pipe Line Ltd.5 pc cu 1st pr.48.00Pembina Pipe Line Ltd.6 pc cu A 2nd pr.25.50Pembroke Electric Light Co. Ltd.Com.27.50Pend Oreille Mines & Metals Co.Com..75Pennbec Mining Corp.Com.Pennington’s Stores LimitedCom.11.88Peoples Credit Jewellers Ltd.Com.9.38Peoples Credit Jewellers Ltd.CI A.9.00Peoples Credit Jewellers Ltd.6 pc cu pr.94.75Peoples Department Stores LimitedCom.11.75P.E.P. Professional & Engineered Patents Ltd.Com..35Pere Marquette Petroleums Ltd.Com..03Permo Gas & Oil LimitedCom..38Pershing Manitou Gold Mines Ltd.Com.Pershon Gold Mines Ltd.Com..01Peruvian Oils & Minerals Ltd.Com..29Peso Silver Mines Ltd.Com..14Peterson Red Lake Mines Ltd.Com.Petrofina Canada Ltd.Com.21.50Petrol Oil & Gas Company Ltd., TheCom.1.32Petromines Ltd.Com..26Petroquest Ltd.Com.Peyto Oils LimitedCom.1.87Pharaoh Mines Ltd.Com.Phillips Cables LimitedCom.9.75Phillips Petroleum Co.Com.Phoenix Canada Oil Company Ltd.Com.7.45Photo Engravers & Electrotypers Ltd.Com.19.00Pickel Crow Explorations LimitedCom..23Pickering Metal Mines Ltd.Com..01Pick Mines Ltd.Com.Picton MinesCom.Pine Bell Mines Ltd.Com..13Pine Lake Mining Co. Ltd.Com..13Pine Pacific Mines Ltd.Com..18Pine Point Mines Ltd.Com.24.00Pine Ridge Exploration Co. Ltd.Com..13Pine Tree Explorations Ltd.Com..15Pinex Mines Ltd.Com..69Pinnacle Mines Ltd.Com..12Pinnacle Petroleums Ltd.Com..44Pitchvein Mines Ltd.Com..01Pitt Gold Mining Co. Ltd.Com..04Pitts Engineering Construction Limited, C.A.Com.14.13Pizza Pan International Corp.Com.Place Gas & Oil Company LimitedCom.1.00Placer Development Ltd.Com.25.50Plains Petroleum Ltd.Com..27Plateau Metals LimitedCom..33Pleno Mines Ltd.Com.Polaris Mines Ltd.Com..05Polcon Corp.Com.3.00Polypump Ltd.Com.2.53Ponderay Exploration Co. Ltd.Com.1.15Ponder Oils Ltd.Com..68Popular Industries Ltd.Com.1.50Port Arthur Iron Ore Corp.Com.Portcomm Communications Corp. Ltd.Com..75Portcomm Communications Corp. Ltd.A. wt.Port Dover Gas & Oil Ltd.Com.Portfield Petroleums LimitedCom..10Portland Yellowknife Gold Mines LimitedCom.Potter Distilleries Ltd.Com.3.50Power Corp. of Canada Ltd.Com.5.50Power Corp. of Canada Ltd.4 3/4 pc 1st pr.28.38Power Corp. of Canada Ltd.5 pc cv A 2nd pr.8.88Power Corp. of Canada Ltd.6 pc 2nd pr.Prado Explorations Ltd.Com.1.12Prairie Oil Royalties Company Ltd.Com.11.75Prairie RoyaltyCom.Prefac Concrete Co. Ltd.Com.1.45Premier Cablevision LimitedCom.10.60Premier Trust Co., TheFully paid340.00Premium Iron Ores LimitedCom.1.75Preston Mines LimitedCom.6.70Price Company Limited, TheCom.7.25Price Company Limited, The4 pc cu pr.50.00Prime Potash Corporation of Canada Ltd.Com..03Primer Group Minerals Ltd.Com..09Probe Mines LimitedCom..20Proflex LimitedCom.2.20Pronghorn Petroleum Corp. Ltd.Com.Proto Explorations Ltd.Com..15Provident Assurance Company (The)Com.Provigo Inc.Com.6.75Provinces & Explorations Ltd.Com..22Puma Petroleums Ltd.Com..84Puma Petroleums Ltd.A wt..48Purdex Minerals Ltd.Com..01Pure Silver Mines Ltd.Com.2.30Pyramid Mining Co. Ltd.Com..31Q Broadcasting Ltd.Cl A.5.00Q.S.P. Ltd.Com.11.25Quadrate Explorations Ltd.Com..02Quatsino Copper-Gold Mines Ltd.Com..11Quebec Antimony Mines Ltd.Com..24Quebec Cobalt & Exploration Ltd.Com..55Quebec Explorers Corp. Ltd.Com..15Quebec Gold Belt Mines Ltd.Com..08Quebec Industrial Minerals Corp.Com.Quebec Manitou Mines Ltd.Com..12Quebec Mattagami Minerals Ltd.Com..25Quebec Sturgeon River Mines Ltd.Com..10Quebec TelephoneCom.13.75Quebec Telephone6 1/5 pc cu cv A pr.14.00Quebec Telephone5 pc cu pr 1951 series5.50Quebec Telephone5 pc cu pr 1955 series13.25Quebec Telephone5 pc cu pr 1956 seriesQuebec Telephone4 3/4 pc cu pr 1965 series12.50Quebec Uranium Mining Corp.Com..18Queenston Gold Mines Ltd.Com..20Quejo Mines Ltd.Com..04Quest Yellowknife Mines LimitedCom..01Quilchena Mining & Development Co. Ltd.Com.Quinte-Canlin LimitedCom.1.95Quinte-Canlin LimitedCl A.2.00Rackla River Mines Ltd.Com..06Rackla River Mines Ltd.Rt.Radex Minerals Ltd.Com..08Radex Minerals Ltd.Wt.Radiation Development Co. Ltd.Com.3.50Radio Hill Mines Co. Ltd.Com.Radiore Uranium Mines Ltd.Com..25Ragged Chute Silver Mines Ltd.Com.Ramada Resources Ltd.Com.Rambler Exploration Co. Ltd.Com.Ramid International Ltd.Com..24Ram Petroleums Ltd.Com..64Rancheria Mining Co. Ltd.Com..08Ranchmen’s Resources Ltd.Com..60Rand Malartic Mines Ltd.Com..02Rand Resources LimitedCom..53Ranger Oil Canada LimitedCom.13.75Rank Organization Ltd.Com.22.13Ranney Gold Mines Ltd.Com.Rapid Data Systems & Equipment Ltd.Com.4.50Rapid Data Systems & Equipment Ltd.6 pc cu cv pr.5.25Rapid Grip & Batten LimitedCom.5.00Rapid Grip & Batten LimitedCl A.7.00Rapid River Resources Ltd.Com..06Rawhide U Mines Ltd.Com..10Rayfield Mining Co.Com.Raylloyd Mines & Explorations Ltd.Com..20Raymond Tiblemont Gold Mines Ltd.Com..02Rayore Mines Ltd.Com..40Rayrock Mines LimitedCom.1.15Reactor Uranium Mines Ltd.Com..15Reader’s Digest Association (Canada) Ltd.Com.7.88Readyfoods Ltd.Com.1.88Realm Mining Corporation LimitedCom.Realty Capital Corporation Ltd.Cl A.3.40Realty Capital Corporation Ltd.Wt..85Reco Silver Mines Ltd.Com..10Redaurum Red Lake Gold Mines Ltd.Com.Redcoat Mines Ltd.Com.Redcon Gold Mines Ltd.Com..03Redhill Investment Corp. Ltd.Com.4.75Red Metal Mines Ltd.Com..06Redruth Gold Mines Ltd.Com..02Redstone Mines Ltd.Com..32Reed Shaw Osler LimitedCom.8.75Reeves Macdonald Mines Ltd.Com.1.00Regentbranch Holdings LimitedCom.2.25Reichhold Chemicals (Canada) Ltd.Com.9.00Reichhold Chemicals (Canada) Ltd.Wt.2.75Reid Lithographing Co. Ltd.Com.10.13Reid Lithographing Co. Ltd.6 1/4 pc cu A pr.41.13Reitman’s Canada Ltd.Com.19.13Reitman’s Canada Ltd.Cl A.19.25Renold Chains Canada Ltd.Cl A. cu pr.Renzy Mines Ltd.Com..43Reprox Corp. Ltd.Com.1.70Republic Resources Ltd.Com..17Revelstoke Building Materials Ltd.Com.14.75Revelstoke Building Materials Ltd.6 pc cu pr.15.00Revenue Properties Co. Ltd.Com..71Rexdale Mines Ltd.Com.Reynolds Aluminum Co. of Canada Ltd.4 3/4 pc cu 1st pr.64.75R.H.P. Canada Ltd.Cu pt cl A.Rhyolite-Rouyn Mines Ltd.Com.Richan Explorations LimitedCom..80Richelieu Vaudreuil Farms Ltd.Com.Richfault Explorations Ltd.Com.Rich Group Yellowknife Mines Ltd.Com..21Richore Gold Mines Ltd.Com.Richwood Industries Ltd.Com.2.10Ridgefield Explorations Ltd.Com.Riley’s Datashare International Ltd.Com.1.95Rimrock Mining Corporation Ltd.Com..50Rio-Algom Mines Ltd.Com.15.25Rio-Algom Mines Ltd.$5.80 cu A 1st pr.75.50Rio Plata Silver Mines Ltd.Com..07Rio Rupununi Mines Ltd.Com..01Ripley International Ltd.Com.3.80Riverside Yarns Ltd.Com.2.25Riverside Yarns Ltd.Cl A cu cv pr.2.75Riviera Industries & Resources Ltd.Com..22Robb Montbray Mines Ltd.Com..01Robert Mines Ltd.Com..50Robin Red Lake Mines Ltd.Com..50Robinson, Little & Co. Ltd.Com.37.25Robinson, Little & Co. Ltd.Cl A.36.75Rocket Mines LimitedCom..18Rockland Mining Ltd.Com..23Rodstrom Yellowknife Mines Ltd.Com..07Rokon Mines Ltd.Com..29Rolland Paper Co. LimitedCl A.3.10Rolland Paper Co. LimitedCl B.2.75Rolland Paper Co. Limited4 1/4 pc cu pr.Rolling Hills Copper Mines Ltd.Com..34Roman Corporation Ltd.Com.6.10Romfield Building Corp. Ltd.Com.Ronalds-Federated Ltd.Com.13.50Ronnoco Gold Mines Ltd.Com.Ron Roy Uranium Mines LimitedCom..12Rose Gold Mining Co. Ltd.Com..11Rose Pass Mines Ltd.Com..25Rothmans of Pall Mall Canada Ltd.Com.16.63Rothmans of Pall Mall Canada Ltd.6.85 pc cu 1st pr.82.50Rothmans of Pall Mall Canada Ltd.65/8 pc cv 2nd pr.19.88Rothmans of Pall Mall Canada Ltd.Wt.3.50Rouyn Exploration Ltd.Com..07Rowan Consolidated Mines Ltd.Com..02Roxmark Mines Ltd.Com..04Royal Agassiz Mines Ltd.Com..28Royal Bank of Canada, TheCom.29.50Royal Canadian Ventures Ltd.Com.1.02Royal Oak Dairy Ltd.Cl A.12.75Royal Oak Dairy Ltd.Cl B.Royal Trust Company, TheCom.37.50Royal Trust Co. Mortgage Corp., The5 pc cu A pr.14.25R R D LimitedCom.5.00R R D LimitedWt..50R S L LimitedCom.3.10Rugged Red Lake Mines Ltd.Com..01Russel Holdings Ltd.Com.1.08Russell FoodsCom.Russel Ltd., HughCl A.9.00Russel Ltd., Hugh6 1/2 pc cv A 1st pr.20.13Ruttan Lake Explorations Ltd.Com..37Ryanor Mining Co. Ltd.Com..14Sabina Industries Ltd.Com.2.35Safari Explorations LimitedCom..23St. Anthony Mines Ltd.Com.Saint Fabien Copper Mines Ltd.Com..07St. James Resources Ltd.Com.1.70Saint Lawrence Cement Co. Ltd.Cl A.36.50Saint Lawrence Columbium & Metals Corp.Com.1.00Saint Lawrence Corp. Ltd.Com.21.00Saint Lawrence Corp. Ltd.5 pc cu A pr.63.00Saint Lawrence Diversified Co.Com..65Saint Luci Exploration Co. Ltd.Com..16St. Mary’s Explorations Ltd.Com..04Saint Maurice Capital Corp. Ltd.Com..70Samson Mines Ltd.Com..02Sandwell & Company LimitedCom.5.75Sanelli Pools LimitedUnit.45Sangamo Co. Ltd.Com.14.38San Jacinto Explorations Ltd.Com..09San Judas Molybdenum Corp. Ltd.Com..40Santack Mines Ltd.Com.Santa Helena Mining Ltd.Com..20Santa Maria Mines Ltd.Com..31Santa’s Village Ltd.Com.10.00Santiago Mining & Exploration Ltd.Com.Sapawe Gold Mines Ltd.Com..03Saratoga Processing Co. Ltd.Com.4.40Sarimco Mines Ltd.Com..02Sarnoil Ltd.Com.Saskatchewan Trust & Loan Co.Com.Saskoba Mines Inc.Com..34Sastex Petro-Minerals Ltd.Com..07Satellite Metal Mines Ltd.Com..06Savanna Creek Gas & Oil Ltd.Com.Sayvette LimitedCom.4.70Scandia Mining & Exploration Ltd.Com..11Schneider Limited, J. M.Com.11.00Schneider Limited, J. M.B cu cv pr.8.25Schneider Limited, J. M.C cu cv pr.Schott Industries Inc.Com.5.50Sciminex LimitedCom..53Scintrex LimitedCom.2.90Scope Resources Ltd.Com..13Scott Chibougamau Mines Ltd.Com..01Scottish & York Holdings Ltd.Com.9.50Scott-Lasalle LimitedCom.9.13Scott Misener Steamships Ltd.Com.2.50Scott Misener Steamships Ltd.5 1/2 pc cu pr.7.50Scott Paper LimitedCom.18.50Scott’s Restaurant Ltd.Com.15.13SCU Industries Ltd.Com.1.75Scurry-Rainbow Oil LimitedCom.16.25Scythes and Company LimitedCom.16.00Seaboard Life Insurance Co.Com.2.00Seaway Copper Mines LimitedCom..83Seaway Multi-Corp. Ltd.Com.8.00Seaway Multi-Corp. Ltd.Cu cv A pr.5.88Seaway Multi-Corp. Ltd.Wt..94Seco-Cemp. Ltd.7 1/4 pc.10.31Secondo Mining Ltd.Com..10Security Capital Corp. Ltd.C1 B.3.90Seemar Mines Ltd.Com..25Seldore Mining Company LimitedCom..40Select Properties Ltd.Com.2.45Selkirk Holdings Ltd.C1 A.17.00Senior Gas & Oil Ltd.Com.September Mt Copper Mines Ltd.Com..10Seton Lake Mines Ltd.Com.Share Mines & Oils Ltd.Com..12Shasta Mines & Oils Ltd.Com..50Shaw Limited, L. E.Com.5.88Shawmin Explorations Ltd.Com.Shawnee Petroleums Ltd.Com..09Shawnex Mines LimitedCom..15Shaw Pipe Industries Ltd.Com.8.00Sheba Copper Mines Ltd.Com..22Sheba Mines Ltd.Com..04Sheldon-Larder Mines Ltd.Com..07Shell Canada LimitedC1 A.37.25Shell Investments Ltd.5 1/2 pc cu cv pr.37.25Shell Investments Ltd.Wt.17.00Shell Oil CompanyCom.Shelter Bay Mining Corp.Com..21Shepherd Casters Canada Ltd.Com.4.00Sheritt-Lee Mines Ltd.Com..28Sherritt Gordon Mines Ltd.Com.15.13Sherwin-Williams Co. of Canada Ltd.Com.13.50Sherwin-Williams Co. of Canada Ltd.7 pc cu pr.89.00Shewan Copper Mining Corp. Ltd.Com.Shield Development Co. Ltd., TheCom..80Shore to Shore Corporation LimitedCom.3.50Shully’s Industries LimitedCom.4.75Siebens Oil & Gas Ltd.Com.9.00Sierra Empire Mines Ltd.Com.1.50Sifton Properties Ltd.Com.3.60Sigma Mines Quebec Ltd.Com.3.75Silbak Premier Mines Ltd.Com..09Sileurian Chieftain Mining Co. Ltd.Com..09Silknit LimitedCom.22.00Silknit Limited5 pc pr.37.00Silmonac Mines Ltd.Com..27Silver Butte Mines Ltd.Com..07Silver Chief Minerals Ltd.Com..27Silver Christal Natural Gas & Minerals Ltd.Com..45Silver City Mines Ltd.Com..12Silver-Cup Mines Ltd.Com..20Silver Eureka Corp.Com..38Silver Key Mines Ltd.Com..05Silverknife Mines Ltd.Com..05Silver Lake Mines Ltd.Com.Silvermaque Mining Ltd.Com..18Silver-Men Mines Ltd.Com..03Silver-Miller Mines Ltd.Com..05Silver Monarch Mines Ltd.Com.Silver Pack Mines Ltd.Com.Silverquick Development Co. BC Ltd.Com..12Silver Ridge Mining Co. Ltd.Com..05Silver Shield Mines Inc.Com.3.10Silver Shield Mines Inc.A wt.2.19Silver Shield Mines Inc.B wt.2.02Silversides Mines Ltd.Com..07Silver Spring Mines Ltd.Com..58Silverstack Mines Ltd.Com..26Silver Standard Mines Ltd.Com.1.10Silver Star Mines Ltd.Com..10Silver Summit Mines Ltd.Com..02Silverwood Industries Ltd.Cl A.15.63Silverwood Industries Ltd.Cl B.14.75Simpsons LimitedCom.22.00Simpsons-Sears LimitedCom.28.63Sintra LimitedCom.5.50Sirmac Mines Ltd.Com.Skelly Oil CompanyCom.45.25Sklar Manufacturing Ltd.Com.2.35Sklar Manufacturing Ltd.Wt..75Skyline Hotels LimitedCom.9.25Sladen Quebec Ltd.Com.Slate Bay Gold Mines Ltd.Com..02Slater Steel Industries LimitedCom.10.00Slater Steel Industries Limited5 1/2 pc cu 1st pr.13.88Slater Steel Industries Limited5 1/2 pc 2nd pr.13.75Slater Steel Industries Limited$1.20 cu pr.15.00Slater Walker of Canada Ltd.Com.13.25Slater Walker of Canada Ltd.Rt.Slater Walker Securities Ltd.Com.8.00Slave Point Mines Ltd.Com..04S L Diversified Corp. Ltd.Com.9.38Slocan Ottawa Mines Ltd.Com..69S.M.A. Inc.Com..50S M Industries Ltd.Com.Snowdrift Base Metal Mines Ltd.Com..13Sobeys Stores LimitedCom.6.75Soca Ltée.Com..50Sogena Inc.Com.14.50Sogepet Ltd.Com.1.22Solar Explorations Ltd.Com.Solidarité Compagnie d’Assurance sur la VieCom.Solomon Development Ltd.Com..38Solomons Pillars Mines Ltd.Com.Somerville Industries Ltd.$2.80 cu pr.40.00Somex LtéeCom..83Southam Press LimitedCom.73.13South Dufault Mines Ltd.Com..05Southern Pacific Petroleum Ltd.Com..08Southern Union Oils Ltd.Com.South Pacific Mines Ltd.Com.South Seas Mining Ltd.Com..22South Winnipeg LimitedCom.Spacemaster Minerals Ltd.Com..03Spa Mines Ltd.Com..05Spanish River Mines Ltd.Com.Spar Aerospace Products Ltd.Com.1.65Sparling Ltd., GeorgeCom.2.40Spartan Air Services Ltd.Com..50Spartan Explorations Ltd.Com..13Spartex Oil & Gas Ltd.Com..08Spectroair Explorations Ltd.Com..13Speculators Fund Ltd.Com..42Spenho Mines Ltd.Com..06Spina Porcupine Mines Ltd.Com.Spirit Lake Mines Ltd.Com.Spooner Mines & Oils LimitedCom.1.10Stability Life Insurance Co.Com.Stafford Foods Ltd.Com.2.60Stairs Exploration & Mining Co. Ltd.Com..02Stall Lake Mines Ltd.Com..89Stampede International Resources Ltd.Com..68Standard Broadcasting Corp. Ltd.Com.13.00Standard Fuel Co. Ltd.4 1/2 pc cu pr.Standard Gold Mines Ltd.Com..07Standard Nickel Mines LimitedCom..22Standard Paving & Materials Ltd.Com.11.50Stanfield’s Ltd.Cl A.Stanfield’s Ltd.Cl B.Stanford Mines Ltd.Com..60Stannex Minerals Ltd.Com..14Stanrock Uranium Mines Ltd.Com..60Star Lake Gold Mines Ltd.Com..05Steel Co. of Canada Ltd., TheCom.26.75Steeltree Group Inc.Com..95Steeltree Group Inc.6 pc cu pr.3.55Steep Rock Iron Mines Ltd.Com.2.23Steetley Industries Ltd.Com.7.00Steinberg’s LimitedCl A.22.88Steinberg’s Limited5 1/4 pc cu A pr.77.00Steintron International Electronics Ltd.Com.3.35Stellako Mining Company Ltd.Com..11Sterisystems Ltd.Com.15.25Sterisystems Ltd.Cl A.15.50Sterling Trust CorporationCom.8.25Stewart Lake Iron Mines of Ontario Ltd.Com..15Stormy Mines Ltd.Com..28Stuart House International Ltd.Com.3.55Stuart House International Ltd.6 pc cu cv A pr.6.75Stuart Oil Company Ltd., D. A.Com.7.75Studer Mines LimitedCom..10Stump Mines Ltd.Com..08Sturdy Mines Ltd.Com..14Sturgeon Petroleums Ltd.Com.Sturgex Mines Ltd.Com..21Subeo LimitedCom..10Sudbury Contact Mines Ltd.Com..25Sullivan Mining Group Ltd.Com.2.70Summit Explorations & Holdings Ltd.Com..73Sun Bear Mines Ltd.Com..01Sunburst Explorations Ltd.Com..11Sunburst Explorations Ltd.Rt..01Sunlite Oil Company Ltd.Com.5.00Sunningdale Oils Ltd.Com.2.65Sun Publishing Co. LimitedCl A.34.75Sun Publishing Co. LimitedCl B.33.00Sunrise Silver Mines Ltd.Com..10Sunset Yellowknife Mines Ltd.Com.Superior Acid & Iron Ltd.Com..12Superior Electronics Industries Ltd.Com.2.05Supermarché à Domicile LtéeCom..30Superpack Corporation Ltd.Com.4.00Supersol Ltd.Com.Supertest Petroleum Corporation LimitedCom.16.25Supertest Petroleum Corporation LimitedOrdinary68.00Surluga Gold Mines Ltd.Com..07Surpass Chemicals LimitedCom.1.60Swim Lake Mines Ltd.Com..15Swiss Oils of Canada 1959 Ltd.Com..18Systems Air Corp. Ltd.Com..15Systems Dimensions Ltd.Com.6.88Tache Lake Mines Ltd.Com..03Tagami Mines LimitedCom..12Takla Silver Mines Ltd.Com..09Talisman Mines LimitedCom..15Taman Uranium Mines Ltd.Com..07Tamblyn Limited, GCom.18.50Tamblyn Limited, G4 pc cu pr.25.00Tancord Industries LimitedCom.2.40Tancord Industries LimitedA pr.2.50Taneloy Mines Ltd.Com..08Tanzilla Explorations Ltd.Com..11Tara Exploration & Development Company LimitedCom.12.75Target Mines Ltd.Com..08Tartan Explorations Ltd.Com..19Taseko Mines Ltd.Com..22Tashota-Nipigon Mines Ltd.Com..22Tasmaque Gold Mines Ltd.Com.Taylor Windfall Gold Mining Co. Ltd.Com..02Tay River Mines Ltd.Com..15Teck Corporation Ltd.Cl A.4.75Teck Corporation Ltd.Cl B.4.15Teckora Mines LimitedCom..51Teknol Mining Co. Ltd.Com..34Teledyne Canada Ltd.Com.4.65Tenneco Inc.Com.Terra Developers Ltd.Com.Terra Mining & Exploration Ltd.Com.2.40TerrasolCom.2.88Terrex Mining Co. Ltd.Com..15Texacal Resources Ltd.Com..24Texaco Canada LimitedCom.34.50Texaco Canada Limited4 pc cu pr.60.00Texal Development Ltd.Com..30Texas East TransmissionCom.Texas Gulf Sulphur Co. Inc.Com.14.38Texmont Mines Ltd.Com..39Texore Mines Ltd.Com..10Tex-Sol Explorations Ltd.Com..57Thermatron Corporation Ltd.Com.Thermatron Corporation Ltd.Wt.Third Canadian General Investment Trust Ltd.Com.11.75Third Canadian General Investment Trust Ltd.Pr.32.00Thomas Nationwide Transport LimitedCom.1.95Thompson Lundmark Gold Mines Ltd.Com..20Thompson Paper Box Co. LimitedCom.4.75Thompson Paper Box Co. Limited6 pc cu pr.Thomson Drilling Company Ltd.Com.1.50Thomson Newspapers LimitedCom.29.13Thomson Newspapers Limited6 3/4 pc cu pr.51.13Thor Explorations Ltd.Com..68Thorncrest Explorations Ltd.Com.Timken Co.Com.43.00Timrod Mining Co. Ltd.Com..21Tinex Development Exploration Ltd.Com.Tobe Mines Ltd.Com..12Tokar LimitedCom.1.40Tombill Mines Ltd.Com..55Tomrose Mines Ltd.Com.Tonecraft LimitedCom.12.50Tontine Mining LimitedCom..60Tooke Bros. Ltd.Com..75Tooke Bros. Ltd.A pr.Topley Criss Mines LimitedCom..09Torcan Explorations Ltd.Com..12Tormex Mining Developers Ltd.Com.1.68Toromont Industrial Holdings Ltd.Com.1.30Toromont Industrial Holdings Ltd.6 1/2 pc cu cv A pr.Toronado Mines Ltd.Com..17Toronto-Dominion BankCom.30.00Toronto Iron Works Ltd. (The)Com.8.75Toronto & London Investment Co. Ltd.Com.3.90Toronto Star LimitedCl B.38.00Toronto Star LimitedCl C.38.50Torwest Resources 1962 Ltd.Com..23Total Petroleum (North America) Ltd.Com.6.20Total Petroleum (North America) Ltd.3 1/2 pc cv A pr.14.25Tower Resources Ltd.Com..24Towmart Holdings LimitedCom..45Traders Building Association Ltd.Com.Traders Group LimitedCl A.15.75Traders Group LimitedCl B.15.00Traders Group Limited5 pc cu pr.25.00Traders Group Limited5 pc cu cv A pr.20.50Traders Group Limited4 1/2 pc cu pr.56.25Traders Group Limited$2.16 cu pr.26.00Traders Group Limited1965 wt.2.05Traders Group Limited1966 wt.4.70Traders Group Limited1969 wt.5.00Transair LimitedCom.3.15Transair LimitedPr.Transair LimitedWt..89Transair LimitedRt.Trans-American Mining Corp. Ltd.Com.Trans Canada Glass Ltd.Com.5.13Trans-Canada Pipe Lines LimitedCom.36.25Trans-Canada Pipe Lines Limited$2.75 cu cv pr.66.75Trans-Canada Pipe Lines Limited$2.80 cu pr.42.25Trans-Canada Pipe Lines LimitedWt.10.75Trans-Canada Resources Ltd.Com..82Trans Columbia Exploration Ltd.Com..11Transcontinental Resources Ltd.Com..27Trans Eastern Oil & Gas Ltd.Com.Trans Global Financial Services Ltd.Com.1.80Trans-Mountain Oil Pipeline CompanyCom.20.38Transocean Oil IncorporatedCom.Trans-Prairie Pipelines Ltd.Com.12.75Transterre Exploration Ltd.Com..20Trans Yukon Exploration Ltd.Com..06Tresdor Larder Mines Ltd.Com.Tribag Mining Co. Ltd.Com..60Tri-Bridge Mines LimitedCom..35Trimac Ltd.Com.6.50Trinity Chibougamau Mines Ltd.Com..10Triphope Resources Ltd.Com.Triton Explorations LimitedCom..70Trizec Corporation LimitedCom.17.00Trizec Corporation LimitedWt..50Troilus Mines Ltd.Com..15Trojan Consolidated Mines Ltd.Com..25Tromac Mines Ltd.Com..03Troy Silver Mines Ltd.Com..08Tru-Wall Concrete Forming Ltd.Com.2.90Tundra Gold Mines Ltd.Com..18Turbo Resources LimitedCom..93Turismo Industries Ltd.Com..37Turner Valley Oil Company LimitedCom..18Twentieth Century Explorations LimitedCom..75Twin Peak Mines Ltd.Com..28Twin Richfield Oils Ltd.Com..21Tyee Lake Resources LimitedCom..14U.A.P. Inc.Cl A.16.25Ulster Petroleums Ltd.Com.1.46Ultramar Company LimitedCom.6.13Unas Investments Ltd.Com.16.63Ungava Copper Corp. Ltd.Com..04Unican Security Systems Ltd.Com.4.05Unigesco Inc.Com.Unigesco Inc.Cl A.2.85Unigesco Inc.Cl B.2.72Union Acceptance Corporation Ltd.6 pc cu C Ist pr.40.44Union Acceptance Corporation Ltd.6 1/4 pc cu A 1st pr.40.00Union Acceptance Corporation Ltd.6 1/4 pc cu B 1st pr.42.50Union Carbide Canada LimitedCom.13.50Union Gas Company of Canada LimitedCom.14.75Union Gas Company of Canada Limited5 1/2 pc cu A pr.43.00Union Gas Company of Canada Limited6 pc cu B pr.44.13Union Mining CorporationCom..21Union Oil Company of Canada Ltd.Com.44.00United Asbestos Corp. Ltd.Com.4.05United Canadian Shares Ltd.Com.United Canso Oil & Gas Ltd.Com.4.25United Canso Oil & Gas Ltd.Wt..64United Cobalt Mines Ltd.Com.02United Comstock Lode Mines Ltd.Com.United Copper Corporation Ltd.Com..10United Corporations Ltd.Cl A.19.50United Corporations Ltd.Cl B.15.00United Corporations Ltd.$1.50 cu A pr.20.00United Corporations Ltd.5 pc cu 1963 pr.19.00United Equities LimitedCom.2.00United Funds Management Ltd.Com.8.38United Grain Growers Limited5 pc pr.14.00United Investment Life Assurance Co.Com.5.69United Keno Hill Mines Ltd.Com.3.85United Macfie Mines Ltd.Com..04United Mindamar Metals Ltd.Com..16United New Fortune Mines Ltd.Com.United Provincial Investment Ltd.Com.1.30United Reef Petroleums Ltd.Com..18United Siscoe Mines Ltd.Com.2.10United Westburne Industries Ltd.Com.4.00United Westburne Industries Ltd.6 1/4 pc cu A 1st pr.39.00United Westburne Industries Ltd.Wt.1.00Universal Factors Corp.Com.Universal Gas Co. Ltd.Com.Universal Minerals CorporationCom..24Universal Patent & Development Ltd.Com..12Universal Sections Ltd.Com.6.50Univex Mining Corporation Ltd.Com..41Upper Canada Mines Ltd.Com.1.66Uranium Ridge Mines Ltd.Com..03Uranium Valley Mines Ltd.Com..20Urban Quebec Mines Ltd.Com..04US-CA-MEX Explorations Ltd.Com..20Utilities & Funding Corp. Ltd.Com.1.60Utilities & Funding Corp. Ltd.CI A.1.60Valdex Mines Inc.Com..13Valley Copper Mines Ltd.Com.7.70Val Mar Swimming Pools Ltd.CI A.1.60Val Nor Exploration Ltd.Com.Vananda Exploration Ltd.Com..06Van Der Holt Associates LimitedCom.7.25Vandoo Consolidated Explorations Ltd.Com..04Van Ness Industries Ltd.Com..83Vargas Mines LimitedCom..53Vastlode Mining Company Ltd.Com..05Velcro Industries LimitedCom.17.63Vencap Investments Ltd.Com.1.80Venpower LimitedCom.1.30Ventures Mining LimitedCom..07Vermont Mines Ltd.Com.Versafood Services Ltd.Com.7.50Versatile Manufacturing Ltd.Com.3.50Versatile Manufacturing Ltd.CI A.2.75Vespar Mines Ltd.Com..14Vestor Explorations Ltd.Com..33Viau LimitedCom.Victoria Algoma Mineral Co. Ltd.Com..11Victoria & Grey Trust Co.Com.35.50Victoria & Grey Trust Co.5.35 pc cu A pr.40.63Victoria Wood Development Corp. Ltd.Com.Victoria Wood Development Corp. Ltd.7 1/2 pc cu A pr.8.13Victor Mining Corp. Ltd.Com..08Viking Mines Ltd.Com..08Villacentres Ltd.Com.9.88Vimy Explorations Ltd.Com..02Visa Bella Inc.Com.Volcanic Mines Ltd.Com..10Voyager Explorations Ltd.Com.Voyager Petroleums Ltd.Com.4.90Vulcan Industrial Packaging LimitedCom.9.00Wabasso LimitedCom.18.50Waco Petroleums Ltd.Com..02Wadge Mines Ltd.Com..01Waferboard Corp. Ltd.Com.1.50Wainoco Oil & Chemicals Ltd.Com.5.63Waite Dufault Mines Ltd.Com..09Wajax LimitedCom.13.63Walker-Gooderham & Worts Limited (Hiram)Com.42.38Wall & Redekop Corporation Ltd.Com.2.75Wardair Canada Ltd.Com.1.45Warner Investments Ltd., E.C.Cl A.Warner Investments Ltd., E.C.Cl B.Warner WestCom..43Warnock Hersey International LimitedCom.3.65Warnock Hersey International Limited$1.50 cu A pr.10.00Warrington Products Ltd.Pr.3.50Watson Lake Mines Ltd.Com..04Wavecom Development Ltd.Com..75W. C. P. Explorations Ltd.Com.10.13W. C. P. Explorations Ltd.5 pc cu cv A pr.30.00Webb & Knapp Canada LimitedCom..40Webbwood Exploration Co. Ltd.Com.1.25Webbwood Mobile Home Estates Ltd.Com.1.00Wee-Gee Uranium Mines Ltd.Com.Weldwood of Canada LimitedCom.13.50Weldwood of Canada LimitedRt.Welland Consolidated Mining Ltd.Com.Wellington BankCl A..38Wentworth Investment Corporation Ltd.Com.10.00Werner Lake Nickel Mines Ltd.Com..01Wescorp Industries Ltd.Com.5.40Wesley Mines Ltd.Com.Westairs Mines Ltd.Com.Westates Petroleum CompanyCom.5.05Westburne International Industries Ltd.Com.10.75Westburne International Industries Ltd.8 pc cu cv pr.36.00Westburne International Industries Ltd.Wt.6.70West Canadian Mineral Holdings Ltd.Com.1.10Westcoast Petroleum Ltd.Com.10.13Westcoast Petroleum Ltd.6 pc cu pr.30.00West Coast Resources Ltd.Com..06Westcoast Transmission Co. Ltd.Com.25.88Westcoast Transmission Co. Ltd.Wt.6.69Westcoast Transmission Co. Ltd.Rt..16Westeel-Rosco LimitedCom.13.88Western Allenbee Oil & Gas Company Ltd.Com..23Western Broadcasting Co. Ltd.Com.12.13Western Broadcasting Co. Ltd.5 3/4 pc cu cv pr.36.00Western-Buff Mines & Oils Ltd.Com..07Western Canadian Seed Processors Ltd.Com.4.50Western Decalta Petroleum Ltd.Com.6.55Western Exploration Company Ltd.Com..12Western Mines Ltd.Com.2.55Western Quebec Mines Co. Ltd.Com..10Western Realty Projects LimitedCom.7.13Western Standard Silver Mines Ltd.Com..10Western Supplies Ltd.Cl A cu cv.9.00Western & Texas Oil Co. Ltd.Com.Western Tin Mines Ltd.Com..02Western Warner Oils LimitedCom..47Westfair Foods Ltd.Cl A.26.50Westfair Foods Ltd.7 pc cu pr.19.00Westfield Minerals Ltd.Com..96Westfield Minerals Ltd.Wt..48West Hill Enterprises & Mining Ltd.Com..10West Indies Plantation Ltd.Com.1.75West Indies Plantation Ltd.Cl A.3.25Westinghouse Canada LimitedCom.14.50Westland Mines Ltd.Com..08Weston Limited, GeorgeCom.18.00Weston Limited, George4 1/2 pc cu pr.66.50Weston Limited, George6 pc cu pr.82.00West Red Lake Gold Mines Ltd.Com.Westview Investment Corporation Ltd.Com.2.08Westville Mines Ltd.Com.West Wasa Mines Ltd.Com..08Whim Creek Consolidated No LiabilityCom.Whipsaw Mines LimitedCom..10Whistler Petroleums Ltd.Com..32Whitehorse Copper Mines Ltd.Com.1.75White Pass & Yukon Corp. Ltd.Com.10.00White Pass & Yukon Corp. Ltd.6 3/4 pc cu A pr.22.00White Pass & Yukon Corp. Ltd.Wt..76White River Mines Ltd.Com..28Whiterock Estates Development Corporation LimitedCom.14.38Whitesail Mines Ltd.Com.White Star Copper Mines Ltd.Com..14Whitey Wilson Oil & Gas Ltd.Com..31Whonnock Industries LimitedCI A.13.50Whonnock Industries LimitedCI B14.00Wilco Mining Co. Ltd.Com..15Wildor MinesCom..01Wiley Oilfield Hauling Ltd.Com.7.00Williams Creek Gold Quartze Mining Co. Ltd.Com..46Willow Lake Mines Ltd.Com.Willroy Mines Ltd.Com..70Wilshire Oil Company of TexasCom.Wilson Red Lake Gold Mines Ltd.Com.Winco Steak & Burger Restaurants LimitedCom.4.60Windermere Exploration LimitedCom..20Windfall Oils & Mines Ltd.Com..09Win-Eldrich Mines Ltd.Com..09Winnipeg Supply and Fuel Co. Ltd.Com.8.50Win West Oil & Mining Ltd.Com..25Wisconsin Mining Company Ltd.Com..10Wolf Creek Mines Ltd.Com.Wood, Alexander Ltd.Com.2.53Wood-Croesus Gold Mines Ltd.Com..02Woodford Investment Ltd.CI A.Woodford Investment Ltd.Cl B.2.00Woodward Stores LimitedCom.25.00Worldwide Energy Company Ltd.Com.2.16Wosk’s Ltd.Com.7.75Wrightbar Mines LimitedCom..30Wright-Hargreaves Mines Ltd.Com.1.15Xoma Ltd.Com.4.05Yankee Canuck Oil and Mining Corp. Ltd.Com..04Yarandry Silver Mines Ltd.Com..05Yellorex Mines Ltd.Com..13Yellowknife Base Metals Ltd.Com.Yellowknife Bear Mines Ltd.Com.4.40Yorbeau Mines Inc.Com..05York Lambton Corporation LimitedCl A..80York Lambton Corporation LimitedCl B.Young-Davidson Mines Ltd.Com..16Young, H. G. Mines Ltd.Com..06Young-Shannon Gold Mines Ltd.Com..01Yreka Mines Ltd.Com..17Y & R Properties Ltd.Com.6.75Yukon Consolidated Gold Corp. Ltd.Com.1.10Yukon Properties LimitedCom.Yukon Revenue Mines LimitedCom..12Zahamy Mines Ltd.Com.2.38Zeller’s Ltd.Com.17.00Zeller’s Ltd.4 1/2 pc cu pr.34.00Zenith Electric Supply Ltd.Com.2.35Zenith Mining Corporation Ltd.Com..27Zenmac Metal Mines LimitedCom..06Zinat Mines LimitedCom..15Zodiac Ltd.CI A.1.90Zodiac Mines Ltd.Com.Zulapa Mining Corporation Ltd.Com..12
[NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/80-618, s. 8; SOR/81-24, s. 1[Repealed, 2018, c. 12, s. 46][NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-256, s. 1; SOR/79-336, s. 1; SOR/80-321, ss. 1 to 4; SOR/81-234, s. 1; SOR/82-408, s. 1; SOR/83-359, ss. 1 to 3; SOR/84-222, ss. 1, 2; SOR/85-332, ss. 1, 2; SOR/86-382, ss. 1 to 3; SOR/87-472, ss. 1, 2; SOR/88-209, ss. 1 to 3; SOR/89-233, ss. 1 to 3; SOR/90-411, ss. 2 to 4; SOR/91-198, ss. 1 to 3; SOR/92-332, ss. 1 to 4; SOR/93-229, ss. 1, 2; SOR/94-395, ss. 1 to 6; SOR/95-184, ss. 1, 2; SOR/96-250, ss. 1 to 6; SOR/97-385, s. 1; SOR/2000-191, ss. 1 to 9; SOR/2001-172, ss. 1 to 10; SOR/2003-5, ss. 15 to 19; SOR/2005-123, ss. 7, 8; SOR/2005-185, s. 5; SOR/2006-200, ss. 2 to 7; SOR/2006-205, ss. 1 to 3; SOR/2010-96, ss. 3 to 7; SOR/2012-218, ss. 1 to 9; SOR/2014-81, ss. 1 to 10; SOR/2015-170, ss. 4, 5; 2018, c. 12, s. 46[Repealed, SOR/93-440, s.4]SOR/2025-1932025-09-19SOR/2025-1942025-09-19SOR/2025-972025-03-12SOR/2025-752025-03-062022, c. 102025-01-01SOR/2024-2312024-11-222024, c. 152024-07-012024, c. 152024-06-202024, c. 172024-06-20SOR/2024-92024-02-14