Income Tax Act — I-3.3 260
Definitions 260 (1) In this section dealer compensation payment means an amount received by a taxpayer as compensation, for an underlying payment, (a) from a registered securities dealer resident in Canada who paid the amount in the ordinary course of a business of trading in securities, or (b) in the ordinary course of the taxpayer’s business of trading in securities, where the taxpayer is a registered securities dealer resident in Canada; ( paiement compensatoire (courtier) ) qualified security means (a) a share of a class of the capital stock of a corporation that is listed on a stock exchange or of a class of the capital stock of a corporation that is a public corporation by reason of the designation of the class by the corporation in an election made under subparagraph (b)(i) of the definition public corporation in subsection 89(1) or by the Minister in a notice to the corporation under subparagraph (b)(ii) of that definition, (b) a bond, debenture, note or similar obligation of a corporation described in paragraph (a) or of a corporation that is controlled by such a corporation, (c) a bond, debenture, note or similar obligation of or guaranteed by the government of any country, province, state, municipality or other political subdivision, or a corporation, commission, agency or association controlled by any such person, (d) a warrant, right, option or similar instrument with respect to a share described in paragraph (a), or (e) a qualified trust unit; ( titre admissible ) qualified trust unit means an interest, as a beneficiary under a trust, that is listed on a stock exchange; ( unité de fiducie déterminée ) securities lending arrangement means an arrangement under which (a) a person (in this section referred to as the “lender”) transfers or lends at any particular time a qualified security to another person (in this section referred to as the “borrower”), (b) it may reasonably be expected, at the particular time, that the borrower will transfer or return after the particular time to the lender a security (in this section referred to as an “identical security”) that is identical to the security so transferred or lent, (c) the borrower is obligated to pay to the lender amounts equal to and as compensation for all amounts, if any, paid on the security that would have been received by the borrower if the borrower had held the security throughout the period that begins after the particular time and that ends at the time an identical security is transferred or returned to the lender, (d) the lender’s risk of loss or opportunity for gain or profit with respect to the security is not changed in any material respect, and (e) if the lender and the borrower do not deal with each other at arm’s length, it is intended that neither the arrangement nor any series of securities lending arrangements, loans or other transactions of which the arrangement is a part be in effect for more than 270 days, but does not include an arrangement one of the main purposes of which may reasonably be considered to be to avoid or defer the inclusion in income of any gain or profit with respect to the security. ( mécanisme de prêt de valeurs mobilières ) security distribution means an amount that is (a) an underlying payment, or (b) an SLA compensation payment, or a dealer compensation payment, that is deemed by subsection (5.1) to be an amount received as an amount described by any of paragraphs (5.1)(a) to (c); ( paiement de titre ) SLA compensation payment means an amount paid pursuant to (a) a securities lending arrangement as compensation for an underlying payment; or (b) a specified securities lending arrangement as compensation for an underlying payment, including, if the property transferred or lent is described in subparagraph (a)(ii) of the definition specified securities lending arrangement , as compensation for a taxable dividend paid on a share described in subparagraph (a)(i) of that definition; ( paiement compensatoire (MPVM) ) specified