Excise Tax Act — E-15 149
Financial institutions 149 (1) For the purposes of this Part, a person is a financial institution throughout a particular taxation year of the person if (a) the person is (i) a bank, (ii) a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee, (iii) a person whose principal business is as a trader or dealer in, or as a broker or salesperson of, financial instruments or money, (iv) a credit union, (v) an insurer or any other person whose principal business is providing insurance under insurance policies, (vi) a segregated fund of an insurer, (vii) the Canada Deposit Insurance Corporation, (viii) a person whose principal business is the lending of money or the purchasing of debt securities or a combination thereof, (ix) an investment plan, (x) a person providing services referred to in section 158, or (xi) a corporation deemed under section 151 to be a financial institution, at any time in the particular year; (b) the total (in this section referred to as the “financial revenue”) of all amounts each of which is an amount that is interest, a dividend (other than a dividend in kind or a patronage dividend) or a separate fee or charge for a financial service and that is included in computing, for the purposes of the Income Tax Act , the person’s income, or, if the person is an individual, the person’s income from a business, for the taxation year of the person preceding the particular year exceeds the greater of (i) 10% of the total of (A) the amount that would, but for subsection (4), be the financial revenue, and (B) the total of all consideration that became due in that preceding taxation year, or that was paid in that preceding taxation year without having become due, to the person for supplies (other than supplies by way of sale of capital property of the person and supplies of financial services that are not zero-rated supplies described by section 3 of Part IX of Schedule VI) made by the person, and (ii) the amount determined by the formula $10,000,000 × A/365 where A is the number of days in that preceding taxation year; or (c) the total of all amounts each of which is an amount that is included in computing, for the purposes of that Act, the person’s income, or, where the person is an individual, the person’s income from a business, for that preceding taxation year and that is interest, or a separate fee or charge, with respect to (i) a credit card or charge card issued by the person, or (ii) the making of an advance, the lending of money or the granting of credit exceeds (iii) the amount determined by the formula $1,000,000 × A/365 where A is the number of days in that preceding taxation year. Amalgamations (2) For the purposes of this Part, where (a) at any time two or more corporations (in this subsection referred to as the “predecessors”) are merged or amalgamated to form one corporation (in this subsection referred to as the “new corporation”), and (b) the principal business of the new corporation immediately after that time is the same as or similar to the business of one or more of the predecessors that immediately before that time was a financial institution, the new corporation is a financial institution throughout the taxation year of the new corporation that began at that time. Acquisition of business (3) For the purposes of this Part, where (a) a particular person, at any time in a taxation year of the particular person, acquires a business as a going concern from another person who was immediately before that time a financial institution, and (b) immediately after that time the principal business of the particular person is the business so acquired, the particular person is a financial institution throughout the part of that taxation year that is after that time. Exclusion of interest and dividend (4) In determining a total for a person under paragraph (1)(b) or (c), there shall not be