Income Tax Act — I-3.3 125.1
r its equivalent, or (iii) tar sands ore from a mineral resource located in Canada to any stage that is not beyond the crude oil stage or its equivalent, (g) producing industrial minerals, (h) producing or processing electrical energy or steam, for sale, (i) processing natural gas as part of the business of selling or distributing gas in the course of operating a public utility, (j) 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, (k) Canadian field processing, or (l) any manufacturing or processing of goods for sale or lease, if, for any taxation year of a corporation in respect of which the expression is being applied, less than 10% of its gross revenue from all active businesses carried on in Canada was from (i) the selling or leasing of goods manufactured or processed in Canada by it, and (ii) the manufacturing or processing in Canada of goods for sale or lease, other than goods for sale or lease by it. ( fabrication ou transformation ) Determination of gross revenue (4) For the purposes of paragraph (l) of the definition manufacturing or processing in subsection 125.1(3), where a corporation was a member of a partnership at any time in a taxation year, (a) there shall be included in the gross revenue of the corporation for the year from all active businesses carried on in Canada, that proportion of the gross revenue from each such business carried on in Canada by means of the partnership, for the fiscal period of the partnership coinciding with or ending in that year, that the corporation’s share of the income of the partnership from that business for that fiscal period is of the income of the partnership from that business for that fiscal period; and (b) there shall be included in the gross revenue of the corporation for the year from all activities described in subparagraphs (l)(i) and (ii) of the definition manufacturing or processing in subsection 125.1(3), that proportion of the gross revenue from each such activity engaged in in the course of a business carried on by means of the partnership, for the fiscal period of the partnership coinciding with or ending in that year, that the corporation’s share of the income of the partnership from that business for that fiscal period is of the income of the partnership from that business for that fiscal period. Interpretation (5) For the purpose of the description of A in subsection (2) and for the purpose of applying the Income Tax Regulations (other than section 5201 of those Regulations) to that subsection other than the description of B, (a) electrical energy and steam are deemed to be goods; and (b) the generation of electrical energy for sale, and the production of steam for sale, are deemed to be, subject to paragraph (l) of the definition manufacturing or processing in subsection (3), manufacturing or processing. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 125.1; 1994, c. 7, Sch. II, s. 101, Sch. VIII, s. 64; 1996, c. 21, s. 27; 1997, c. 25, s. 33; 2000, c. 19, s. 34; 2001, c. 17, s. 114; 2006, c. 4, s. 74; 2013, c. 34, s. 263