Income Tax Act — I-3.3 126
-income tax or non-business-income tax for any taxation year. Denial of foreign tax credit (4.11) If a taxpayer is a member of a partnership, any income or profits tax paid to the government of a particular country other than Canada — in respect of the income of the partnership for a period during which the taxpayer’s direct or indirect share of the income of the partnership under the income tax laws (referred to in subsection (4.12) as the “relevant foreign tax law”) of any country other than Canada under the laws of which any income of the partnership is subject to income taxation, is less than the taxpayer’s direct or indirect share of the income for the purposes of this Act — is not included in computing the taxpayer’s business-income tax or non-business-income tax for any taxation year. Exceptions (4.12) For the purposes of subsection (4.11), a taxpayer is not to be considered to have a lesser direct or indirect share of the income of a partnership under the relevant foreign tax law than for the purposes of this Act solely because of one or more of the following: (a) a difference between the relevant foreign tax law and this Act in the manner of (i) computing the income of the partnership, or (ii) allocating the income of the partnership because of the admission to, or withdrawal from, the partnership of any of its members; (b) the treatment of the partnership as a corporation under the relevant foreign tax law; or (c) the fact that the taxpayer is not treated as a corporation under the relevant foreign tax law. Tiered partnerships (4.13) For the purposes of subsections (4.11) and (4.12), if a taxpayer is (or is deemed by this subsection to be) a member of a particular partnership that is a member of another partnership, the taxpayer is deemed to be a member of the other partnership. Short-term securities acquisitions (4.2) If at any particular time a taxpayer disposes of a property that is a share or debt obligation and the period that began at the time the taxpayer last acquired the property and ended at the particular time is one year or less, the amount included in business-income tax or non-business-income tax paid by the taxpayer for a particular taxation year on account of all taxes (referred to in this subsection and subsections (4.3) and 161(6.1) as the “foreign tax”) that are (a) paid by the taxpayer in respect of dividends or interest in respect of the period that are included in computing the taxpayer’s income from the property for any taxation year, (b) otherwise included in business-income tax or non-business-income tax for any taxation year, and (c) similar to the tax levied under Part XIII shall, subject to subsection (4.3), not exceed the amount determined by the formula A × (B - C) × D/E where A is (a) if the foreign tax would otherwise be included in business-income tax, the total of (i) that proportion of 26.5% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and (ii) that proportion of 25% that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year, and (b) if the foreign tax would otherwise be included in non-business-income tax, the total of (i) if the taxpayer is a corporation that is a Canadian-controlled private corporation throughout the taxation year, that proportion of 28% that the number of days in the taxation year that are after 2010 is of the number of days in the taxation year, and (ii) if the taxpayer is not a Canadian-controlled private corporation throughout the taxation year, the total of (A) that proportion of 16.5% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and (B) that proportion of 15% that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year, B is the total of the taxpayer’s proceeds from the disposition of the property at the particular time and the amo