Income Tax Regulations — 6804
6804 (1) The definitions in this subsection apply in this section. foreign non-profit organization means, (a) at any time before 1995, an organization (i) that at that time meets the conditions in subparagraphs (b)(i) to (iii), or (ii) that at that time is not operated for the purpose of profit, and whose assets are situated primarily outside Canada throughout the calendar year that includes that time, and (b) at any time after 1994, an organization that at that time (i) is not operated for the purpose of profit, (ii) has its main place of management outside Canada, and (iii) carries on its activities primarily outside Canada. ( organisme étranger à but non lucratif ) foreign plan means a plan or arrangement (determined without regard to subsection 207.6(5) of the Act) that would, but for paragraph (l) of the definition retirement compensation arrangement in subsection 248(1) of the Act, be a retirement compensation arrangement. ( régime étranger ) qualifying entity means a non-resident entity that holds all or part of the assets of a foreign plan where the following conditions are satisfied: (a) the entity is resident in a country under the laws of which an income tax is imposed, and (b) where those laws provide an exemption from tax, a reduced rate of tax or other favourable tax treatment for entities that hold assets of pension or other retirement plans, the entity qualifies for the favourable treatment. ( entité admissible ) Electing Employer (2) For the purposes of this section, an employer is an electing employer for a calendar year with respect to a foreign plan where (a) the employer has sent or delivered to the Minister a letter stating that the employer elects to have this section apply with respect to contributions to the foreign plan, and (b) the letter was sent or delivered on or before (i) the last day of February in the year following the first calendar year after 1991 in which a contribution that is, or would be if subsection 207.6(5.1) of the Act were read without reference to paragraph (a) of that subsection, a resident’s contribution (as defined in that subsection) was made under the foreign plan in respect of services rendered by an individual to the employer, or (ii) any later date that is acceptable to the Minister, except that an employer is not an electing employer for a year with respect to a foreign plan if the Minister has granted written permission for the employer to revoke, for the year or a preceding calendar year, the election made under paragraph (a) in respect of the foreign plan. Election by Union (3) Except as otherwise permitted in writing by the Minister, an election made by a trade union for the purpose of subsection (2) is valid only if it is made by the highest-level structural unit of the union. Contributions Made before 1992 (4) For the purpose of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons in a calendar year before 1992 is a prescribed contribution where (a) the contribution is paid to a qualifying entity; (b) each employer (in this subsection referred to as a “contributor”) that makes a contribution under the foreign plan in the year is (i) a non-resident corporation throughout the year, (ii) a partnership that makes contributions under the foreign plan primarily in respect of services rendered outside Canada to the partnership by non-resident employees, or (iii) a foreign non-profit organization throughout the year; (c) if a corporation or partnership (other than a corporation or partnership that is a foreign non-profit organization throughout the year) is a contributor, no individual who is entitled (either absolutely or contingently) to benefits under the foreign plan is a member of a registered pension plan, or a beneficiary under a deferred profit sharing plan, to which a contributor, or a person or body of persons not dealing at arm’s length with a contributor, makes, or is required to make, contributions in relat