Income Tax Act — I-3.3 18
III because of paragraph 212(1)(c), or (C) paid or payable to a person other than a specified non-resident beneficiary of the trust, and (c) in the case of a corporation or trust that is not resident in Canada, including a corporation or trust that files a return under this Part in accordance with subsection 216(1) in respect of the year, 40% of the amount, if any, by which (i) the average of all amounts each of which is the cost of a property, other than an interest as a member of a partnership, owned by the corporation or trust at the beginning of a calendar month that ends in the year (A) that is used by the corporation or trust in the year in, or held by it in the year in the course of, carrying on business in Canada, or (B) that is an interest in real property, or a real right in immovables, in Canada, or an interest in, or for civil law a right in, timber resource properties and timber limits, in Canada, and in respect of which the corporation or trust files a return under this Part in accordance with subsection 216(1) in respect of the year, exceeds (ii) the average of all amounts each of which is the total of all amounts outstanding, at the beginning of a calendar month that ends in the year, as or on account of a debt or other obligation to pay an amount that was payable by the corporation or trust that may reasonably be regarded as relating to a business carried on by it in Canada or to an interest or right described in clause (i)(B), other than a debt or obligation that is included in the outstanding debts to specified non-residents of the corporation or trust; ( montant des capitaux propres ) equity contribution , to a trust, means a transfer of property to the trust that is made (a) in exchange for an interest as a beneficiary under the trust, (b) in exchange for a right to acquire an interest as a beneficiary under the trust, or (c) for no consideration by a person beneficially interested in the trust; ( apport de capitaux propres ) outstanding debts to specified non-residents , of a corporation or trust at any particular time in a taxation year, means (a) the total of all amounts each of which is an amount outstanding at that time as or on account of a debt or other obligation to pay an amount (i) that was payable by the corporation or trust to a person who was, at any time in the year, (A) a specified non-resident shareholder of the corporation or a specified non-resident beneficiary of the trust, or (B) a non-resident person who was not dealing at arm’s length with a specified shareholder of the corporation or a specified beneficiary of the trust, as the case may be, and (ii) on which any amount in respect of interest paid or payable by the corporation or trust is or would be, but for subsection (4), deductible in computing the income of the corporation or trust for the year, but does not include (b) an amount outstanding at the particular time as or on account of a debt or other obligation (i) to pay an amount to (A) a non-resident insurance corporation to the extent that the obligation was, for the non-resident insurance corporation’s taxation year that included the particular time, designated insurance property in respect of an insurance business carried on in Canada through a permanent establishment as defined by regulation, or (B) an authorized foreign bank, if the bank uses or holds the obligation at the particular time in its Canadian banking business, or (ii) that is a debt obligation described in subparagraph (ii) of the description of A in paragraph 17.1(1)(b) to the extent that the proceeds of the debt obligation can reasonably be considered to directly or indirectly fund at the particular time, in whole or in part, a pertinent loan or indebtedness (as defined in subsection 212.3(11)) owing to the corporation or another corporation resident in Canada that does not, at the particular time, deal at arm’s length with the corporation; ( dettes impayées envers des non-résidents déterminés ) security inte