Income Tax Regulations — 4802
4802 (1) For the purposes of clause 149(1)(o.2)(iv)(D) of the Act, the following are prescribed persons: (a) a trust all the beneficiaries of which are trusts described in clause 149(1)(o.2)(iv)(B) of the Act; (b) a corporation incorporated before November 17, 1978 solely in connection with, or for the administration of, a registered pension plan; (c) a trust or corporation established by or arising by virtue of an act of a province the principal activities of which are to administer, manage or invest the monies of a pension fund or plan that is established pursuant to an act of the province or an order or regulation made thereunder; (c.1) the Canada Pension Plan Investment Board; (c.2) the Public Sector Pension Investment Board; (c.3) a pooled registered pension plan; (d) a trust or corporation established by or arising by virtue of an act of a province in connection with a scheme or program for the compensation of workers injured in an accident arising out of or in the course of their employment; (e) Her Majesty in right of a province; (f) a trust all of the beneficiaries of which are any combination of (i) registered pension plans, (ii) trusts described in clause 149(1)(o.2)(iv)(B) or (C) of the Act, and (iii) persons described in this subsection; (f.1) the Pension Benefits Guarantee Fund under the Pension Benefits Act , R.S.O. 1990, c. P.8 and any corporation established solely for investing the assets of the Pension Benefits Guarantee Fund; and (g) a corporation all of the shares of the capital stock of which are owned by one or more of the following: (i) registered pension plans, (ii) trusts described in clause 149(1)(o.2)(iv)(B) or (C) of the Act, and (iii) persons described in this subsection. (1.1) For the purposes of subparagraph 127.55(f)(iii) and paragraphs 149(1)(o.4) and 150(1.2)(i) of the Act, a trust is prescribed at any particular time if, at all times after its creation and before the particular time, (a) it was resident in Canada; (b) its only undertaking was the investing of its funds; (c) it never borrowed money except where the borrowing was for a term not exceeding 90 days and it is established that the borrowing was not part of a series of loans or other transactions and repayments; (d) it never accepted deposits; and (e) each of the beneficiaries of the trust was a trust governed by a deferred profit sharing plan, a pooled registered pension plan or a registered pension plan. (1.2) For the purposes of paragraph 8502(i.2), if an amount is borrowed (other than an amount described in paragraph (1.1)(c)) at a particular time by a trust described in subsection (1.1) in relation to defined benefit provisions of one or more registered pension plans that are beneficiaries of the trust, each such defined benefit provision is deemed to have borrowed at the particular time an amount that is equal to the following amount: (a) if paragraph (b) does not apply, the amount determined by the formula A × (B ÷ C) where A is the amount borrowed by the trust at the particular time, B is the fair market value at the particular time of the interest of the defined benefit provision in (i) if the borrowing relates to a particular class of units of the trust, that class of units, and (ii) in any other case, the income and capital of the trust, and C is the fair market value at the particular time of all interests of defined benefit provisions in (i) if the borrowing relates to a particular class of units of the trust, that class of units, and (ii) in any other case, the income and capital of the trust; and (b) the portion of the amount borrowed by the trust at the particular time that is allocated to the defined benefit provision under an agreement entered into between the trust and the defined benefit provision, provided that the agreement allocates to the beneficiaries the total amount borrowed by the trust. (1.3) If an amount borrowed by a trust is deemed to have been borrowed by a defined benefit provision under subsection