Income Tax Regulations — 4901
4901 (1) For the purposes of paragraphs 204.4(2)(b), (d) and (f) and of subsection 204.6(1) of the Act, a property is a prescribed investment for a corporation or trust, as the case may be, if it is a qualified investment for a plan or fund described in paragraphs 204.4(1)(a) to (d) of the Act in respect of which the corporation or trust is seeking registration or has been registered, as the case may be. (1.1) [Repealed, SOR/94-471, s. 2] (2) In this Part, allocation in proportion to patronage has the meaning assigned by subsection 135(4) of the Act; ( répartition proportionnelle à l’apport commercial ) connected person under a governing plan of a plan trust means a person who is an annuitant, a beneficiary, an employer or a subscriber under, or a holder of, the governing plan and any person who does not deal at arm’s length with that person; ( personne rattachée ) connected shareholder of a corporation at any time is a person (other than an exempt person in respect of the corporation) who owns, directly or indirectly, at that time, not less than 10% of the issued shares of any class of the capital stock of the corporation or of any other corporation that is related to the corporation and, for the purposes of this definition, (a) paragraphs (a) to (e) of the definition specified shareholder in subsection 248(1) of the Act apply, and (b) an exempt person in respect of a corporation is a person who deals at arm’s length with the corporation where the total of all amounts, each of which is the cost amount of any share of the capital stock of the corporation, or of any other corporation that is related to it, that the person owns or is deemed to own for the purposes of the definition specified shareholder in subsection 248(1) of the Act, is less than $25,000; ( actionnaire rattaché ) consumer goods or services has the meaning assigned by subsection 135(4) of the Act; ( marchandises de consommation ou services ) designated shareholder of a corporation at any time means a taxpayer who at that time (a) is, or is related to, a person (other than an exempt person) who owns, directly or indirectly, not less than 10% of the issued shares of any class of the capital stock of the corporation or of any other corporation that is related to the corporation and, for the purposes of this definition, (i) paragraphs (a) to (e) of the definition specified shareholder in subsection 248(1) of the Act apply, and (ii) an exempt person in respect of a corporation is a person who deals at arm’s length with the corporation where the total of all amounts, each of which is the cost amount of any share of the capital stock of the corporation, or of any other corporation that is related to it, that the person owns or is deemed to own for the purposes of the definition specified shareholder in subsection 248(1) of the Act, is less than $25,000, (b) is or is related to a member of a partnership that controls the corporation, (c) is or is related to a beneficiary under a trust that controls the corporation, (d) is or is related to an employee of the corporation or a corporation related thereto, where any group of employees of the corporation or of the corporation related thereto, as the case may be, controls the corporation, except where the group of employees includes a person or a related group that controls the corporation, or (e) does not deal at arm’s length with the corporation; ( actionnaire désigné ) governing plan means a deferred profit sharing plan or a revoked plan, a FHSA, a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA; ( régime d’encadrement ) plan trust means a trust governed by a governing plan; ( fiducie de régime ) qualifying share , in respect of a specified cooperative corporation and a governing plan, means a share of the capital or capital stock of the corporation where (a) ownership of the share or a share identical to the share