Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations — 1
lease means the aggregate of (a) the amount of any overdue payments, (b) the net present value of all future payments due under the capital lease, discounted at the annual imputed rate of interest used in the calculation of the scheduled payments, and (c) the present value, discounted at the annual imputed rate of interest used in the calculation of the scheduled payments of the lesser of (i) the residual value of the equipment set out in the registration form referred to in subsection 12(1), and (ii) the bargain purchase option price of the equipment set out in the capital lease. ( solde impayé du contrat de location-acquisition ) rate of interest on Government of Canada bonds means (a) for a capital lease with a term of less than three years, the one to three year Government of Canada marketable bonds average yield as published by the Bank of Canada on the last Wednesday of the month before the day on which the capital lease is entered into; (b) for a capital lease with a term of three to five years, the three to five year Government of Canada marketable bonds average yield as published by the Bank of Canada on the last Wednesday of the month before the day on which the capital lease is entered into; and (c) for a capital lease with a term exceeding five years but not exceeding ten years, the five to ten year Government of Canada marketable bonds average yield as published by the Bank of Canada on the last Wednesday of the month before the day on which the capital lease is entered into. ( taux de rendement des obligations du gouvernement du Canada ) small business means a business carried on or about to be carried on in Canada for gain or profit with an estimated gross annual revenue (a) in the case of a business being carried on, not exceeding $5 million for the fiscal year of the business during which a capital lease is approved by a lessor, or a loan is approved by a lender, in respect of the business; or (b) in the case of a business about to be carried on, that is not expected, at the time a capital lease is approved by a lessor or a loan is approved by a lender in respect of the business, to exceed $5 million for its first fiscal year that is at least 52 weeks in duration. It does not include the business of farming or a business having as its principal object the furtherance of a charitable or religious purpose. ( petite entreprise ) total financing amount of a capital lease means the aggregate of (a) the financed cost of the equipment, and (b) the registration fee referred to in subsection 14(1), if the fee has been financed and is set out in the registration form referred to in subsection 12(1). ( montant total du financement du contrat de location-acquisition ) (2) For the purposes of these Regulations, the provisions of the Income Tax Act apply to the determination of whether a person is dealing at arm’s length with another person. (3) For the purposes of these Regulations, a lessee is related to another lessee or borrower if (a) either lessee or borrower directly or indirectly controls the other in any manner; (b) both lessees or both the lessee and the borrower are directly or indirectly controlled in any manner by the same person or group of persons; (c) the lessee carries on their small business in partnership with the other lessee or borrower who carries on another small business; or (d) the lessee shares management services, administrative services, equipment, facilities or overhead expenses of the business with the other lessee or borrower, but is not in partnership with that lessee or borrower. (4) For the purpose of subsection (3), control means the holding of shares of a corporation to which are attached more than 50% of the votes necessary to elect a majority of their directors. (5) Despite subsection (3), a lessee is not related to another lessee or borrower for the purposes of these Regulations if their businesses are located at different premises and neither derives more than 25% of their actual or p