Income Tax Act — I-3.3 218.3
Definitions 218.3 (1) The following definitions apply in this Part. assessable distribution , in respect of a Canadian property mutual fund investment, means the portion of any amount that is paid or credited (otherwise than as a SIFT trust wind-up event), by the mutual fund that issued the investment, to a non-resident investor who holds the investment, and that is not otherwise subject to tax under Part I or Part XIII. ( distribution déterminée ) Canadian property mutual fund investment means a share of the capital stock of a mutual fund corporation, or a unit of a mutual fund trust, if (a) the share or unit is listed on a designated stock exchange; and (b) more than 50% of the fair market value of the share or unit is attributable to one or more properties each of which is real property in Canada, a Canadian resource property or a timber resource property. ( placement collectif en biens canadiens ) Canadian property mutual fund loss — of a non-resident investor for a taxation year for which the non-resident investor has filed, on or before their filing-due date for the taxation year, a return of income under this Part in prescribed form, in respect of a Canadian property mutual fund investment — means the lesser of (a) the non-resident investor’s loss (for greater certainty as determined under section 40) for the taxation year from the disposition of the Canadian property mutual fund investment, and (b) the total of all assessable distributions that were paid or credited on the Canadian property mutual fund investment after the non-resident investor last acquired the investment and at or before the time of the disposition. ( perte collective en biens canadiens ) non-resident investor means a non-resident person or a partnership other than a Canadian partnership. ( investisseur non résident ) unused Canadian property mutual fund loss , of a non-resident investor for a taxation year, means the portion of the total of the non-resident investor’s Canadian mutual fund property losses for preceding taxation years that has neither reduced under subsection (3) the amount of tax payable, nor increased under subsection (5) the amount of a refund of tax paid, under this Part for any preceding taxation year. ( perte collective en biens canadiens inutilisée ) Tax payable (2) If at any time a person (referred to in this section as the “payer”) pays or credits, to a non-resident investor who holds a Canadian property mutual fund investment, an amount as, on account of, in lieu of payment of or in satisfaction of, an assessable distribution, (a) the non-resident investor is deemed for the purposes of this Act, other than section 150, to have disposed at that time, for proceeds equal to the amount of the assessable distribution, of a property (i) that is a taxable Canadian property the adjusted cost base of which to the non-resident investor immediately before that time is nil, and (ii) that is in all other respects identical to the Canadian property mutual fund investment; (b) the non-resident investor is liable to pay an income tax of 15% on the amount of any gain (for greater certainty as determined under section 40) from the disposition; and (c) the payer shall, notwithstanding any agreement or law to the contrary, (i) deduct or withhold 15% from the amount paid or credited, (ii) immediately remit that amount to the Receiver General on behalf of the non-resident investor on account of the tax, and (iii) submit with the remittance a statement in prescribed form. Use of losses (3) If a non-resident investor files, on or before their filing-due date for a taxation year, a return of income under this Part in prescribed form for the taxation year, the non-resident investor is liable, instead of paying tax under paragraph (2)(b) in respect of any amount paid or credited in the taxation year, to pay an income tax of 15% for the taxation year on the amount, if any, by which (a) the total of the non-resident investor’s gains under subsection (2)