Income Tax Act — I-3.3 18.4
agraph (a) would be satisfied if the references in that paragraph to “particular entity” were read as references to “other entity” and the references to “other entity” were read as references to “particular entity”; or (c) a third entity at that time, either alone or together with entities with which the third entity does not deal at arm’s length, owns directly or indirectly equity interests in the particular entity and the other entity that, in respect of each of the particular entity and the other entity, (i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders, if the particular entity or the other entity, as the case may be, is a corporation, or (ii) have 25% or more of the fair market value of all equity interests in the particular entity or the other entity, as the case may be. ( entité déterminée ) specified minimum tax regime means (a) any provisions in respect of global intangible low-taxed income (as defined in section 951A of the Internal Revenue Code of 1986 of the United States, as amended from time to time); (b) any provisions under the tax laws of a country that can reasonably be considered to have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, the Global Anti-Base Erosion Model Rules set out in Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) , published by the Organisation for Economic Co-operation and Development; or (c) any provisions under the tax laws of a country that can reasonably be considered to have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, a Qualified Domestic Minimum Top-up Tax (as defined in the model rules referred to in paragraph (b)). ( régime fiscal minimum déterminé ) structured arrangement means any transaction, or series of transactions, if (a) the transaction or series includes a payment that gives rise to a deduction/non-inclusion mismatch; and (b) it can reasonably be considered, having regard to all the facts and circumstances, including the terms or conditions of the transaction or series, that (i) portion of any economic benefit arising from the deduction/non-inclusion mismatch is reflected in the pricing of the transaction or series, or (ii) the transaction or series was otherwise designed to, directly or indirectly, give rise to the deduction/non-inclusion mismatch. ( dispositif structuré ) transaction includes an arrangement or event. ( opération ) Interpretation (2) This section, section 12.7 and subsection 113(5), as well as related provisions of the Act and the Income Tax Regulations , relate to the implementation of Neutralising the Effects of Hybrid Mismatch Arrangements, Action 2 — 2015 Final Report published by the Organisation for Economic Co-operation and Development and, unless the context otherwise requires, are to be interpreted consistently with that report, as amended from time to time. Primary rule — conditions for application (3) Subsection (4) applies in respect of a payment if (a) in the absence of this section and subsections 18(4) and 18.2(2), an amount would be deductible, in respect of the payment, in computing a taxpayer’s income from a business or property for a taxation year; and (b) that amount is the deduction component of a hybrid mismatch arrangement under which the payment arises. Primary rule — consequences (4) If this subsection applies in respect of a payment, notwithstanding any other provision of this Act, in computing a taxpayer’s income from a business or property for a taxation year, no deduction shall be made in respect of the payment to the extent of the hybrid mismatch amount in respect of the payment. Structured arrangements — exception (5) If subsection (4) or 12.7(3) would, in the absence of this subsection, apply in respect of a payment in computing a taxpayer’s income from a business or pr