Income Tax Act — I-3.3 143.2
lity incurred in the ordinary course of carrying on the business of the taxpayer or the partnership, (ii) as a consequence of the death of the taxpayer, (iii) in respect of an amount not included in the expenditure, determined without reference to subparagraph 143.2(6)(b)(ii), or (iv) because of an excluded obligation (as defined in subsection 6202.1(5) of the Income Tax Regulations ) in relation to a share issued to the taxpayer or, where the expenditure is the cost of an interest in a partnership, to the partnership. Amount or benefit (4) For the purposes of subsections 143.2(2) and (3), where the amount or benefit to which a taxpayer is entitled at any time is provided by way of an agreement or other arrangement under which the taxpayer has a right, either immediately or in the future and either absolutely or contingently (otherwise than as a consequence of the death of the taxpayer), to acquire property, for greater certainty the amount or benefit to which the taxpayer is entitled under the agreement or arrangement is considered to be not less than the fair market value of the property at that time. Amount or benefit (5) For the purposes of subsections 143.2(2) and (3), where the amount or benefit to which a taxpayer is entitled at any time is provided by way of a guarantee, security or similar indemnity or covenant in respect of any loan or other obligation of the taxpayer, for greater certainty the amount or benefit to which the taxpayer is entitled under the guarantee or indemnity at any particular time is considered to be not less than the total of the unpaid amount of the loan or obligation at that time and all other amounts outstanding in respect of the loan or obligation at that time. Amount of expenditure (6) Notwithstanding any other provision of this Act, the amount of any expenditure that is, or is the cost or capital cost of, a taxpayer’s tax shelter investment, and the amount of any expenditure of a taxpayer an interest in which is a tax shelter investment, shall be reduced to the amount, if any, by which (a) the amount of the taxpayer’s expenditure otherwise determined exceeds (b) the total of (i) the limited-recourse amounts of (A) the taxpayer, and (B) all other taxpayers not dealing at arm’s length with the taxpayer that can reasonably be considered to relate to the expenditure, (ii) the taxpayer’s at-risk adjustment in respect of the expenditure, and (iii) each limited-recourse amount and at-risk adjustment, determined under this section when this section is applied to each other taxpayer who deals at arm’s length with and holds, directly or indirectly, an interest in the taxpayer, that can reasonably be considered to relate to the expenditure. Limited-re­course debt in respect of a gift or monetary contribution (6.1) The limited-recourse debt in respect of a gift or monetary contribution of a taxpayer, at the time the gift or monetary contribution is made, is the total of (a) each limited-recourse amount at that time, of the taxpayer and of all other taxpayers not dealing at arm’s length with the taxpayer, that can reasonably be considered to relate to the gift or monetary contribution, (b) each limited-recourse amount at that time, determined under this section when this section is applied to each other taxpayer who deals at arm’s length with and holds, directly or indirectly, an interest in the taxpayer, that can reasonably be considered to relate to the gift or monetary contribution, and (c) each amount that is the unpaid amount at that time of any other indebtedness, of any taxpayer referred to in paragraph (a) or (b), that can reasonably be considered to relate to the gift or monetary contribution if there is a guarantee, security or similar indemnity or covenant in respect of that or any other indebtedness. Repayment of indebtedness (7) For the purpose of this section, the unpaid principal of an indebtedness is deemed to be a limited-recourse amount unless (a) bona fide arrangements, evidenced in w