Income Tax Act — I-3.3 204
Definitions 204 In this Part, debt obligation means a bond, debenture, note or similar obligation; ( titre de créance ) equity share means (a) a share, other than an excluded share or a non-participating share, the owner of which has, as owner thereof, a right (i) to a dividend, and (ii) to a part of the surplus of the corporation after repayment of capital and payment of dividend arrears on the redemption of the share, a reduction of the capital of the corporation or the winding-up of the corporation, at least as great, in any event, as the right of the owner of any other share, other than a non-participating share, of the corporation, when the magnitude of the right in each case is expressed as a rate based on the paid-up capital value of the share to which the right relates, or (b) a share, other than an excluded share or a non-participating share, the owner of which has, as owner thereof, a right (i) to a dividend, after a dividend at a rate not in excess of 12% per annum of the paid-up capital value of each share has been paid to the owners of shares of a class other than the class to which that share belongs, and (ii) to a part of the surplus of the corporation after repayment of capital and payment of dividend arrears on the redemption of the share, a reduction of the capital of the corporation or the winding-up of the corporation, after a payment of a part of the surplus at a rate not in excess of 10% of the paid-up capital value of each share has been made to the owners of shares of a class other than the class to which that share belongs, at least as great, in any event, as the right of the owner of any other share, other than a non-participating share, of the corporation, when the magnitude of the right in each case is expressed as a rate based on the paid-up capital value of the share to which the right relates; ( action à revenu variable ) excluded property , in relation to a trust governed by a deferred profit sharing plan or revoked plan, means a debt obligation or bankers’ acceptance issued by (a) an employer by whom payments are made in trust to a trustee under the plan for the benefit of beneficiaries under the plan, or (b) a corporation with whom that employer does not deal at arm’s length; ( bien exclu ) excluded share means each share of the capital stock of a private corporation where (a) the paid-up capital of the corporation that is represented by all its issued and outstanding shares that would, but for this definition, be equity shares is less than 50% of the paid-up capital of the corporation that is represented by all its issued and outstanding shares other than non-participating shares, or (b) a non-participating share of the corporation is issued and outstanding and the owner of which has, as owner thereof, a right to a dividend (i) at a fixed annual rate in excess of 12%, or (ii) at an annual rate not in excess of a fixed maximum annual rate, if the fixed maximum annual rate is in excess of 12%, when the right to the dividend is expressed as a rate based on the paid-up capital value of the share to which the right relates; ( action exclue ) initial base of a trust means the total of the values of all initial non-qualified investments held by the trust on December 21, 1966 when each such investment is valued at the lower of (a) its cost to the trust, and (b) its fair market value on December 21, 1966; ( base initiale ) initial non-qualified investment of a trust means an investment held by the trust on December 21, 1966 that was, on that date, a non-qualified investment but does not include (a) any interest in a life insurance policy, or (b) an equity share that would be a qualified investment if the date of acquisition of the share were December 21, 1966; ( placement initial non admissible ) non-participating share means (a) in the case of a private corporation, a share the owner of which is not entitled to receive, as owner thereof, any dividend, other than a dividend, whether cumulative or not,