Income Tax Act — I-3.3 18.2
s defined in subsection 123(1) of the Excise Tax Act ) or a registered charity that is a public college , school authority or university (each as defined in subsection 123(1) of the Excise Tax Act ). ( administration du secteur public ) ratio of permissible expenses of a taxpayer for a taxation year means the percentage that is (a) if the taxpayer’s taxation year begins on or after October 1, 2023, and before January 1, 2024, 40%, other than for the purpose of determining the taxpayer’s cumulative unused excess capacity for any taxation year that begins on or after January 1, 2024; and (b) if the taxpayer’s taxation year begins on or after January 1, 2024, and for the purposes referred to in paragraph (a) for which 40% is not the applicable percentage, 30%. ( ratio des dépenses admissibles ) received capacity means an amount of received capacity of a transferee for a taxation year as determined under subsection (4). ( capacité reçue ) relevant affiliate interest and financing expenses of a controlled foreign affiliate of a taxpayer (determined as though the definition taxpayer in this subsection did not include the words “or a partnership”) for an affiliate taxation year means, subject to subsection (19), the total of all amounts (other than an amount that is deductible in computing any income or loss of the affiliate that is included in computing the affiliate’s income or loss from an active business because of paragraph 95(2)(a) or an amount that is described in clause 95(2)(a)(ii)(D) and treated as nil for the purposes of determining an amount for A or D in the definition foreign accrual property income in subsection 95(1)), each of which would be the affiliate’s interest and financing expenses (determined without regard to paragraph (j) of the description of A in the definition interest and financing expenses ) for the affiliate taxation year for the purposes of determining, in respect of the taxpayer for the affiliate taxation year, each amount referred to in subparagraph 95(2)(f)(i) or (ii), if (a) the references in the definition interest and financing expenses to “in the absence of this section” were read as references to “in the absence of clause 95(2)(f.11)(ii)(D)”; and (b) clause 95(2)(f.11)(ii)(A) were read without regard to the reference to subsection 18.2(2). ( dépenses d’intérêts et de financement de la société affiliée pertinentes ) relevant affiliate interest and financing revenues of a controlled foreign affiliate of a taxpayer (determined as though the definition taxpayer in this subsection did not include the words “or a partnership”) for an affiliate taxation year means, subject to subsection (19), the total of all amounts (other than an amount included in computing the affiliate’s income or loss from an active business under paragraph 95(2)(a) or (2.44)(b)), each of which would be the affiliate’s interest and financing revenues (determined without regard to paragraph (g) of the description of A in the definition interest and financing revenues ) for the affiliate taxation year for the purposes of determining, in respect of the taxpayer for the affiliate taxation year, each amount referred to in subparagraph 95(2)(f)(i) or (ii), if clause 95(2)(f.11)(ii)(A) were read without regard to the reference to subsection 18.2(2). ( revenus d’intérêts et de financement de la société affiliée pertinents ) relevant inter-affiliate interest , of a controlled foreign affiliate of a taxpayer for an affiliate taxation year, means an amount of interest to the extent that the amount (a) is paid or payable by the affiliate to, or received or receivable by the affiliate from, a controlled foreign affiliate (in this definition referred to as the “other affiliate”) of (i) the taxpayer, or (ii) a taxpayer that is an eligible group entity in respect of the taxpayer; and (b) would, in the absence of subsection (19), be included in (i) if the amount is paid or payable by the affiliate, the affiliate’s relevant affiliate interest an