Income Tax Act — I-3.3 248
rsons with whom the other corporation does not deal at arm’s length, or to the other corporation and persons with whom the other corporation does not deal at arm’s length, or (g) a corporation that is related to a particular corporation described in any of paragraphs (a) to (f), other than a particular corporation described in paragraph (e) or (e.1) the principal business of which is the factoring of trade accounts receivable that (i) the particular corporation acquired from a related person, (ii) arose in the course of an active business carried on by a person (in this paragraph referred to as the “business entity”) related at that time to the particular corporation, and (iii) at no particular time before that time were held by a person other than a person who was related to the business entity; ( institution financière déterminée ) specified future tax consequence for a taxation year means (a) the consequence of the deduction or exclusion of an amount referred to in paragraph 161(7)(a), (b) the consequence of a reduction under subsection 66(12.73) of a particular amount purported to be renounced by a corporation after the beginning of the year to a person or partnership under subsection 66(12.6) or 66(12.601) because of the application of subsection 66(12.66), determined as if the purported renunciation would, but for subsection 66(12.73), have been effective only where (i) the purported renunciation occurred in January, February or March of a calendar year, (ii) the effective date of the purported renunciation was the last day of the preceding calendar year, (iii) the corporation agreed in that preceding calendar year to issue a flow-though share to the person or partnership, (iv) the particular amount does not exceed the amount, if any, by which the consideration for which the share is to be issued exceeds the total of all other amounts purported by the corporation to have been renounced under subsection 66(12.6) or 66(12.601) in respect of that consideration, (v) paragraphs 66(12.66)(c) and 66(12.66)(d) are satisfied with respect to the purported renunciation, and (vi) the form prescribed for the purpose of subsection 66(12.7) in respect of the purported renunciation is filed with the Minister before May of the calendar year, and (c) the consequence of an adjustment or a reduction described in subsection 161(6.1); ( conséquence fiscale future déterminée ) specified hedging transaction , in respect of a DRA share of a person or partnership (referred to in this definition as the “particular person”), means a transaction (in this definition, as defined in subsection 245(1)) or series of transactions that satisfies the following conditions: (a) it is entered into by (i) the particular person if the particular person is a registered securities dealer or a partnership each member of which is a registered securities dealer, or (ii) a registered securities dealer or a partnership each member of which is a registered securities dealer (in either case, referred to in this definition as the “connected dealer”), if the connected dealer does not deal at arm’s length with, or is affiliated with, the particular person, (b) it has the effect, or would have the effect if the transaction or series were entered into by the particular person, of eliminating all or substantially all of the particular person’s risk of loss and opportunity for gain or profit in respect of the DRA share, determined without regard to any other transaction or series entered into in respect of the DRA share, (c) if paragraph 260(6)(a) were read without reference to subsection 260(6.2), an amount in respect of the transaction or series would be deductible by the particular person or the connected dealer under paragraph 260(6)(a), and (d) if the transaction or series is entered into by the connected dealer, it can reasonably be considered that the particular person or connected dealer knew or ought to have known that the effect described in paragraph (b) would result