Income Tax Act — I-3.3 91
 of which is a foreign affiliate of the taxpayer; or (d) a person or partnership referred to in any of subparagraphs (4.4)(a)(i) to (iii). Pertinent person or partnership (4.3) For the purposes of this subsection and subsection (4.1), a pertinent person or partnership , at any time, in respect of a particular foreign affiliate of a taxpayer means the particular affiliate or a person or partnership that is, at that time, (a) another foreign affiliate of the taxpayer (i) in which the particular affiliate has an equity percentage, or (ii) that has an equity percentage in the particular affiliate; (b) a partnership a member of which is at that time a pertinent person or partnership in respect of the particular affiliate under this subsection; or (c) a person or partnership referred to in any of subparagraphs (4.4)(b)(i) to (iii). Series of transactions (4.4) For the purposes of subsections (4.2) and (4.3), if, as part of a series of transactions or events that includes the earning of the foreign accrual property income that gave rise to the particular amount referred to in subsection (4.1), a foreign affiliate (referred to in this subsection as the “funding affiliate”) of the taxpayer or of a person (referred to in this subsection as the “related person”) resident in Canada that is related to the taxpayer, or a partnership (referred to in this subsection as the “funding partnership”) of which such an affiliate is a member, directly or indirectly provided funding to the particular affiliate, or a partnership of which the particular affiliate is a member, otherwise than by way of loans or other indebtedness that are subject to terms or conditions made or imposed, in respect of the loans or other indebtedness, that do not differ from those that would be made or imposed between persons dealing at arm’s length or by way of an acquisition of shares of the capital stock of any corporation, then (a) if the funding affiliate is, or the funding partnership has a member that is, a foreign affiliate of the related person, the following persons and partnerships are deemed, at all times during which the foreign accrual property income is earned by the particular affiliate, to be specified owners in respect of the taxpayer: (i) the related person, (ii) each foreign affiliate of the related person, and (iii) each partnership a member of which is a person referred to in subparagraph (i) or (ii); and (b) the following persons and partnerships are deemed, at all times during which the foreign accrual property income is earned by the particular affiliate, to be pertinent persons or partnerships in respect of the particular affiliate: (i) the funding affiliate or the funding partnership, (ii) a non-resident corporation (A) in which the funding affiliate has an equity percentage, or (B) that has an equity percentage in the funding affiliate, and (iii) a partnership a member of which is a person or partnership referred to in subparagraph (i) or (ii). Exception — hybrid entities (4.5) For the purposes of subparagraph (4.1)(a)(i), a specified owner in respect of the taxpayer is not to be considered, under the relevant foreign tax law, to own less than all of the shares of the capital stock of a corporation that are considered to be owned for the purposes of this Act solely because the specified owner or the corporation is not treated as a corporation under the relevant foreign tax law. Exceptions — partnerships (4.6) For the purposes of subparagraph (4.1)(a)(ii) and paragraph (4.1)(b), a member of a partnership is not to be considered to have a lesser direct or indirect share of the income of the partnership under the relevant foreign tax law than for the purposes of this Act solely because of one or more of the following: (a) a difference between the relevant foreign tax law and this Act in the manner of (i) computing the income of the partnership, or (ii) allocating the income of the partnership because of the admission to, or withdrawal from, the partn