Income Tax Act — I-3.3 (a)
non-resident-owned investment corporation means a corporation incorporated in Canada that, throughout the whole of the period commencing on the later of June 18, 1971 and the day on which it was incorporated and ending on the last day of the taxation year in respect of which the expression is being applied, complied with the following conditions: (a) all of its issued shares and all of its bonds, debentures and other funded indebtedness were (i) beneficially owned by non-resident persons (other than any foreign affiliate of a taxpayer resident in Canada), (ii) owned by trustees for the benefit of non-resident persons or their unborn issue, or (iii) owned by a non-resident-owned investment corporation, all of the issued shares of which and all of the bonds, debentures and other funded indebtedness of which were beneficially owned by non-resident persons or owned by trustees for the benefit of non-resident persons or their unborn issue, or by two or more such corporations, (b) its income for each taxation year ending in the period was derived from (i) ownership of, or trading or dealing in, bonds, shares, debentures, mortgages, hypothecary claims, bills, notes or other similar property or any interest, or for civil law any right, therein, (ii) lending money with or without security, (iii) rents, hire of chattels, charterparty fees or remunerations, annuities, royalties, interest or dividends, (iv) estates or trusts, or (v) disposition of capital property, (c) not more than 10% of its gross revenue for each taxation year ending in the period was derived from rents, hire of chattels, charterparty fees or charterparty remunerations, (d) its principal business in each taxation year ending in the period was not (i) the making of loans, or (ii) trading or dealing in bonds, shares, debentures, mortgages, hypothecary claims, bills, notes or other similar property or any interest therein, (e) it has, on or before the earlier of February 27, 2000 and the day that is 90 days after the beginning of its first taxation year that begins after 1971, elected in prescribed manner to be taxed under this section, and (f) it has not, before the end of the last taxation year in the period, revoked in prescribed manner its election, except that (g) a new corporation (within the meaning assigned by section 87) formed as a result of an amalgamation after June 18, 1971 of two or more predecessor corporations is not a non-resident-owned investment corporation unless each of the predecessor corporations was, immediately before the amalgamation, a non-resident-owned investment corporation, (h) where a corporation is a new corporation described in paragraph (g), and each of the predecessor corporations elected in a timely manner under paragraph (e), paragraph (e) shall be read, in its application to the new corporation, without reference to the words “the earlier of February 27, 2000 and”, and (i) subject to section 134.1, a corporation is not a non-resident-owned investment corporation in any taxation year that ends after the earlier of, (i) the first time, if any, after February 27, 2000 at which the corporation effects an increase in capital, and (ii) the corporation’s last taxation year that begins before 2003; ( société de placement appartenant à des non-résidents )