Income Tax Act — I-3.3 250
) for a taxation year if (a) the relevant entity does not satisfy the condition in subparagraph (6)(a)(i), determined without reference to subsection (6.03); (b) all or substantially all the gross revenue of the relevant entity for the year consists of any one or more of (i) gross revenue from the provision of services to one or more eligible entities, other than services described in any of paragraphs (a) to (h) of the definition international shipping in subsection 248(1), (ii) gross revenue from international shipping, (iii) gross revenue from an eligible interest held by it in an eligible entity, and (iv) interest on a debt owing by an eligible entity in which an eligible interest is held by it or a person related to it; (c) either the relevant entity is a subsidiary wholly-owned corporation (as defined in subsection 87(1.4)) of the eligible entity referred to in paragraph (b) or an eligible interest in each eligible entity referred to in paragraph (b) is held throughout the year by (i) the relevant entity, (ii) one or more persons related to the relevant entity (if the relevant entity and each such person is a corporation), or persons or partnerships affiliated with the relevant entity (in any other case), or (iii) any combination of the relevant entity and persons or partnerships described in subparagraph (ii); and (d) all or substantially all the shares of the capital stock of, or interests in, the relevant entity are held, directly or indirectly through one or more subsidiary wholly-owned corporations (as defined in subsection 87(1.4)), throughout the year by one or more corporations, trusts or partnerships that would be eligible entities if they did not own shares of, or interests in, the relevant entity. Service providers (6.03) If this subsection applies for a taxation year, then for the purposes of subsection (6) and paragraphs 81(1)(c) and (c.1), (a) the relevant entity is deemed to have international shipping as its principal business in the year; and (b) the gross revenue described in subparagraph (6.02)(b)(i) is deemed to be gross revenue from international shipping. Definitions (6.04) The following definitions apply in this subsection and subsections (6) to (6.03). eligible entity , for a taxation year, means (a) a corporation that is deemed by subsection (6) to be resident in a country other than Canada for the year; (a.1) a corporation resident in Canada (if this Act were read without reference to subsection (4)) that satisfies the conditions set out in paragraphs (6)(a) and (b); or (b) a partnership or trust, if (i) it satisfies the conditions in subparagraph (6)(a)(i) or (ii), and (ii) all or substantially all its gross revenue for the year consists of any combination of amounts described in any of subparagraphs (6)(b)(i) to (iii). ( entité admissible ) eligible interest means (a) in respect of a corporation, shares of the capital stock of the corporation that (i) give the holders of those shares not less than 25% of the votes that could be cast at an annual meeting of the shareholders of the corporation, and (ii) have a fair market value that is not less than 25% of the fair market value of all the issued and outstanding shares of the capital stock of the corporation; (b) in respect of a trust, an interest as a beneficiary (as defined in subsection 108(1)) under the trust with a fair market value that is not less than 25% of the fair market value of all the interests of all beneficiaries under the trust; and (c) in respect of a partnership, an interest as a member of the partnership with a fair market value that is not less than 25% of the fair market value of all the membership interests in the partnership. ( participation admissible ) Holdings in eligible entities (6.05) For the purpose of determining whether a person or partnership (in this subsection referred to as the “holder”) holds an eligible interest in an eligible entity in subsections (6) to (6.04), the holder is deemed to hold all of the share