Income Tax Act — I-3.3 95
 laws of the country in which the business is principally carried on and all of those countries are members of the European Union, or (ii) the development of real property or immovables for sale, the lending of money, the leasing or licensing of property or the insurance or reinsurance of risks, (b) either (i) the affiliate (otherwise than as a member of a partnership) carries on the business (the affiliate being, in respect of those times, in that period of the year, that it so carries on the business, referred to in paragraph (c) as the “operator”), or (ii) the affiliate carries on the business as a qualifying member of a partnership (the partnership being, in respect of those times, in that period of the year, that the affiliate so carries on the business, referred to in paragraph (c) as the “operator”), and (c) the operator employs (i) more than five employees full time in the active conduct of the business, or (ii) the equivalent of more than five employees full time in the active conduct of the business taking into consideration only (A) the services provided by employees of the operator, and (B) the services provided outside Canada to the operator by any one or more persons each of whom is, during the time at which the services were performed by the person, an employee of (I) a corporation related to the affiliate (otherwise than because of a right referred to in paragraph 251(5)(b)), (II) in the case where the operator is the affiliate, 1 a corporation (referred to in this subparagraph as a “providing shareholder”) that is a qualifying shareholder of the affiliate, 2 a designated corporation in respect of the affiliate, or 3 a designated partnership in respect of the affiliate, and (III) in the case where the operator is the partnership described in subparagraph (b)(ii), 1 any person (referred to in this subparagraph as a “providing member”) who is a qualifying member of that partnership, 2 a designated corporation in respect of the affiliate, or 3 a designated partnership in respect of the affiliate, if the corporations referred to in subclause (B)(I) and the designated corporations, designated partnerships, providing shareholders or providing members referred to in subclauses (B)(II) and (III) receive compensation from the operator for the services provided to the operator by those employees the value of which is not less than the cost to those corporations, partnerships, shareholders or members of the compensation paid or accruing to the benefit of those employees that performed the services during the time at which the services were performed by those employees; ( entreprise de placement ) investment property of a foreign affiliate of a taxpayer includes (a) a share of the capital stock of a corporation other than a share of another foreign affiliate of the taxpayer that is excluded property of the affiliate, (b) an interest in a partnership other than an interest in a partnership that is excluded property of the affiliate, (c) an interest in a trust other than an interest in a trust that is excluded property of the affiliate, (d) indebtedness or annuities, (e) commodities or commodities futures purchased or sold, directly or indirectly in any manner whatever, on a commodities or commodities futures exchange (except commodities manufactured, produced, grown, extracted or processed by the affiliate or a person to whom the affiliate is related (otherwise than because of a right referred to in paragraph 251(5)(b)) or commodities futures in respect of such commodities), (f) currency, (g) real property or immovables, (h) Canadian and foreign resource properties, (i) interests in funds or entities other than corporations, partnerships and trusts, and (j) interests in, or for civil law rights in, or options in respect of, property that is included in any of paragraphs (a) to (i); ( bien de placement ) lease obligation of a person includes an obligation under an agreement that authorizes the use of or the production or rep