Income Tax Act — I-3.3 95
a partnership) that is resident in Canada and does not, at that time, deal at arm’s length with the taxpayer, (b) a specified predecessor corporation of the taxpayer or of a specified person or partnership in respect of the taxpayer, (c) a foreign affiliate of (i) the taxpayer, (ii) a person that is at that time a specified person or partnership in respect of the taxpayer under this definition because of paragraph (a) or (b), or (iii) a partnership that is at that time a specified person or partnership in respect of the taxpayer under this definition because of paragraph (d), or (d) a partnership a member of which is at that time a specified person or partnership in respect of the taxpayer under this definition; ( personne ou société de personnes déterminée ) specified predecessor corporation of a particular corporation means (a) an antecedent corporation of the particular corporation, (b) a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation by which the particular corporation was formed, or (c) a specified predecessor corporation of a specified predecessor corporation of the particular corporation; ( société remplacée déterminée ) specified purchaser , at any time, in respect of a particular taxpayer resident in Canada, means an entity that is, at that time, (a) the particular taxpayer, (b) an entity resident in Canada with which the particular taxpayer does not deal at arm’s length, (c) a foreign affiliate of an entity described in any of paragraphs (a) and (b) and (d) to (f), (d) a trust (other than an exempt trust) in which an entity described in any of paragraphs (a) to (c) and (e) and (f) is beneficially interested, (e) a partnership of which an entity described in any of paragraphs (a) to (d) and (f) is a member, or (f) an entity (other than an entity described in any of paragraphs (a) to (e)) with which an entity described in any of paragraphs (a) to (e) does not deal at arm’s length; ( acheteur déterminé ) surplus entitlement percentage , at any time, of a taxpayer in respect of a foreign affiliate has the meaning assigned by regulation; ( pourcentage de droit au surplus ) taxable Canadian business , at any time, of a foreign affiliate of a taxpayer resident in Canada or of a partnership of which a foreign affiliate of a taxpayer resident in Canada is a member (which foreign affiliate or partnership is referred to in this definition as the “operator”), means a business the income from which (a) is, or would be if there were income from the business for the operator’s taxation year or fiscal period that includes that time, included in computing the foreign affiliate’s taxable income earned in Canada for a taxation year under subparagraph 115(1)(a)(ii), and (b) is not, or would not be if there were income from the business for the operator’s taxation year or fiscal period that includes that time, exempt, because of a tax treaty with a country, from tax under this Part; ( entreprise canadienne imposable ) taxation year in relation to a foreign affiliate of a taxpayer means the period for which the accounts of the foreign affiliate have been ordinarily made up, but no such period may exceed 53 weeks; ( année d’imposition ) trust company includes a corporation that is resident in Canada and that is a loan company as defined in subsection 2(1) of the Canadian Payments Act . ( société de fiducie ) British Virgin Islands (1.1) For the purposes of paragraph (b) of the definition non-qualifying country in subsection (1), the British Overseas Territory of the British Virgin Islands is deemed to have a comprehensive tax information exchange agreement with Canada that is in force and has effect after 2013 and before March 11, 2014. Determination of certain components of foreign accrual property income (2) For the purposes of this Subdivision, (a) in computing the income or loss from an active business for a taxation year of a particular foreign affiliate of a taxpayer in respect