Income Tax Act — I-3.3 214
anada and ending with the day the obligation was last assigned or otherwise transferred by the non-resident person to a person resident in Canada is of (d) the number of days in the period commencing with the day the obligation was issued and ending with the day the obligation was last assigned or otherwise transferred by the non-resident person to a person resident in Canada. (11) [Repealed, 2007, c. 35, s. 60] Where s. (2) does not apply (12) Subsection 214(2) does not apply in respect of a payment to a non-resident person under any obligation in respect of which that person is liable to pay tax under this Part by reason of subsection 214(7) or 214(7.1). Regulations respecting residents (13) The Governor in Council may make general or special regulations, for the purposes of this Part, prescribing (a) who is or has been at any time resident in Canada; (b) where a person was resident in Canada as well as in some other place, what amounts are taxable under this Part; and (c) where a non-resident person carried on business in Canada, what are taxable under this Part or what portion of the tax under this Part is payable by that person. Assignment of obligation (14) For the purposes of this section, any transaction or event by which an obligation held by a non-resident person is redeemed in whole or in part or is cancelled shall be deemed to be an assignment of the obligation by the non-resident person. Standby charges and guarantee fees (15) For the purposes of this Part, (a) where a non-resident person has entered into an agreement under the terms of which the non-resident person agrees to guarantee the repayment, in whole or in part, of the principal amount of a bond, debenture, bill, note, mortgage, hypothecary claim or similar obligation of a person resident in Canada, any amount paid or credited as consideration for the guarantee is deemed to be a payment of interest on that obligation; (b) where a non-resident person has entered into an agreement under the terms of which the non-resident person agrees to lend money, or to make money available, to a person resident in Canada, any amount paid or credited as consideration for so agreeing to lend money or to make money available is deemed to be a payment of interest; and (c) where a non-resident person has entered into an agreement under the terms of which the non-resident person agrees to the rescheduling or restructuring of a debt obligation of a person resident in Canada, and the rescheduling or restructuring, as the case may be, provides for the modification of the terms or conditions of the debt obligation or the conversion or substitution of the debt obligation to or with a share or another debt obligation, any amount paid or credited as consideration for so agreeing is deemed to be a payment of interest. Deemed dividends (16) For the purposes of this Part, (a) an amount paid or credited as interest by a corporation resident in Canada, or by a partnership, in a taxation year of the corporation to a non-resident person is deemed to have been paid by the corporation as a dividend, and not to have been paid or credited by the corporation or the partnership as interest, to the extent that an amount in respect of the interest (i) is not deductible in computing the income of the corporation for the year because of subsection 18(4), or (ii) is included in computing the income of the corporation for the year under paragraph 12(1)(l.1); and (b) to the extent that amounts paid or credited to a non-resident person in the year are deemed by paragraph (a) to have been paid by a corporation as dividends, the corporation may designate in its return of income under Part I for the year which amounts paid or credited as interest to the non-resident person in the year are deemed to have been paid as dividends and not as interest. Deemed interest payments (17) For the purposes of subsections (16) and (18), (a) interest payable (other than interest payable pursuant to a legal obligation to p