Income Tax Act — I-3.3 251.2
Definitions 251.2 (1) The following definitions apply in this section. beneficiary has the same meaning as in subsection 251.1(3). ( bénéficiaire ) equity has the same meaning as in subsection 122.1(1) read without reference to paragraph (e) of the definition equity in that subsection. ( capitaux propres ) equity value has the same meaning as in subsection 122.1(1). ( valeur des capitaux propres ) fixed interest , at any time of a person in a trust, means an interest of the person as a beneficiary (in this definition, determined without reference to subsection 248(25)) under the trust provided that no amount of the income or capital of the trust to be distributed at any time in respect of any interest in the trust depends on the exercise by any person of, or the failure by any person to exercise, any discretionary power, other than a power in respect of which it is reasonable to conclude that (a) the power is consistent with normal commercial practice; (b) the power is consistent with terms that would be acceptable to the beneficiaries under the trust if the beneficiaries were dealing with each other at arm’s length; and (c) the exercise of, or failure to exercise, the power will not materially affect the value of an interest as a beneficiary under the trust relative to the value of other such interests under the trust. ( participation fixe ) investment fund , at any time, means a trust, if (a) at all times throughout the period that begins at the later of March 21, 2013 and the end of the calendar year in which it is created and that ends at that time, the trust has a class of units outstanding that complies with the conditions prescribed for the purposes of paragraph 132(6)(c) determined without reference to paragraph 4801(b) of the Income Tax Regulations ; and (b) at all times throughout the period that begins at the later of March 21, 2013 and the time of its creation and that ends at that time, the trust (i) is resident in Canada, (ii) has no beneficiaries who may for any reason receive directly from the trust any of the income or capital of the trust, other than beneficiaries whose interests as beneficiaries under the trust are fixed interests described by reference to units of the trust, (iii) follows a reasonable policy of investment diversification, (iv) limits its undertaking to the investing of its funds in property, (v) does not alone, or as a member of a group of persons, control a corporation, and (vi) does not hold (A) property that the trust, or a person with which the trust does not deal at arm’s length, uses in carrying on a business, (B) real or immovable property, an interest in real property or an immovable, or a real right in an immovable, (C) Canadian resource property, foreign resource property, or an interest or right in Canadian resource property or foreign resource property, or (D) more than 20% of the securities of any class of securities of a person (other than an investment fund or a mutual fund corporation that would meet the conditions in this paragraph, other than in subparagraph (ii), if it were a trust), unless at that time (I) the securities (other than liabilities) of the person held by the trust have a total fair market value that is no more than 10% of the equity value of the person, and (II) the liabilities of the person held by the trust have a total fair market value that is no more than 10% of the fair market value of all of the liabilities of the person. ( fiducie de placement déterminée ) majority-interest beneficiary has the same meaning as in subsection 251.1(3) read without reference to the expression “, if any,” in the definition majority-interest beneficiary in that subsection. ( bénéficiaires détenant une participation majoritaire ) majority-interest group of beneficiaries has the same meaning as in subsection 251.1(3). ( groupe de bénéficiaires détenant une participation majoritaire ) majority-interest group of partners has the same meaning as in subsection 251.1(3). ( groupe