Income Tax Act — I-3.3 15
 time; and (b) the total amount of the deemed repayments referred to in paragraph (a) is equal to the absolute value of that negative amount. Back-to-back arrangement — definitions (2.192) The following definitions apply in this subsection and subsections (2.16) to (2.191). funder , in respect of a funding arrangement, means (a) if the funding arrangement is described in paragraph (a) of the definition funding arrangement , the immediate funder; (b) if the funding arrangement is described in paragraph (b) of the definition funding arrangement , the creditor in respect of the debt or other obligation or the grantor of the specified right, as the case may be; and (c) a person or partnership that does not deal at arm’s length with a person or partnership referred to in paragraph (a) or (b). ( bailleur de fonds ) funding arrangement means (a) the shareholder debt; and (b) each debt or other obligation or specified right, owing by or granted to a funder, in respect of a particular funding arrangement, if the debt or other obligation or specified right meets the conditions in subparagraph (2.16)(c)(i) or (ii) in respect of a funding arrangement. ( mécanisme de financement ) specified right has the same meaning as in subsection 18(5). ( droit déterminé ) ultimate funder means a funder, if subsection (2) would apply to the shareholder debt if the creditor under the shareholder debt were the funder instead of the immediate funder. ( bailleur de fonds ultime ) When s. 15(2) not to apply — non-resident persons (2.2) Subsection 15(2) does not apply to indebtedness between non-resident persons. When s. 15(2) not to apply – ordinary lending business (2.3) Subsection (2) does not apply to a debt that arose in the ordinary course of the creditor’s business or a loan made in the ordinary course of the lender’s ordinary business of lending money (other than a business of lending money if, at any time during which the loan is outstanding, less than 90% of the aggregate outstanding amount of the loans of the business is owing by borrowers that deal at arm’s length with the lender) where, at the time the indebtedness arose or the loan was made, bona fide arrangements were made for repayment of the debt or loan within a reasonable time. Interpretation – partnerships (2.31) For the purposes of this subsection and subsection (2.3), (a) a person or partnership that is a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership; and (b) a borrower shall be considered to deal at arm’s length with a lender only if (i) for greater certainty, the borrower and the lender deal with each other at arm’s length, (ii) where either the borrower or the lender is a partnership and the other party is not, each member of the partnership deals at arm’s length with the other party, and (iii) where both the borrower and the lender are partnerships, the borrower and each member of the borrower deal at arm’s length with the lender and each member of the lender. When s. 15(2) not to apply — certain employees (2.4) Subsection 15(2) does not apply to a loan made or a debt that arose (a) in respect of an individual who is an employee of the lender or creditor but not a specified employee of the lender or creditor, (b) in respect of an individual who is an employee of the lender or creditor or who is the spouse or common-law partner of an employee of the lender or creditor to enable or assist the individual to acquire a dwelling or a share of the capital stock of a cooperative housing corporation acquired for the sole purpose of acquiring the right to inhabit a dwelling owned by the corporation, where the dwelling is for the individual’s habitation, (c) where the lender or creditor is a particular corporation, in respect of an employee of the particular corporation or of another corporation that is related to the particular corporation, to enable or assist the employee to acquire from the particular corporation