Income Tax Act — I-3.3 93.4
h is referred to in this definition as a “relevant member”), (B) if the payer – or where subclause (A)(V) applies, a relevant member – is a person described in any of subclauses (A)(I) to (IV), the payer or relevant member (I) is a taxpayer of whom the affiliate is a foreign affiliate, or (II) does not deal at arm’s length with 1 the affiliate, or 2 any taxpayer of whom the affiliate is a foreign affiliate, and (C) the amount paid or payable (I) if the payer or a relevant member is a person described in subclause (A)(I), is deductible in computing the aggregate investment income or reduces the tax otherwise payable under section 123.3 for a taxation year of the payer or the relevant member, as the case may be, (II) if the payer or a relevant member is a person described in subclause (A)(II) or (III), is deductible in computing the income for a taxation year of the payer or the relevant member, as the case may be, and (III) if the payer or a relevant member is a person described in subclause (A)(IV), is deductible in computing the foreign accrual property income, other than foreign accrual business income, for a taxation year of the payer affiliate or the relevant member, as the case may be; and (b) on the basis that (i) sections 5903 and 5903.1 of the Income Tax Regulations were applied, in the manner set out in subparagraph (ii), taking into account only amounts described in paragraph (a), and (ii) the total of the prescribed amounts for the year under subsections 5903(1) and 5903.1(1) of the Income Tax Regulations were the lesser of (A) the affiliate’s foreign accrual property income for the year determined taking into account only amounts described under paragraph (a) and without regard to any amount determined for F and F.1 in the formula in the definition foreign accrual property income in subsection 95(1) for the year, and (B) the total of the maximum amounts permitted to be designated under subsections 5903(1) and 5903.1(1) of the Income Tax Regulations for the year. ( revenu étranger accumulé, tiré d’une entreprise) underlying FABI surplus tax , of a foreign affiliate of a corporation in respect of the corporation, at any time, means the portion of the underlying foreign tax (as defined in subsection 5907(1) of the Income Tax Regulations ) of the affiliate in respect of the corporation at that time that can reasonably be regarded as applicable in respect of the affiliate’s FABI surplus. ( montant intrinsèque d’impôt REATE ) Amounts deductible under subsection 91(4) (2) If a taxpayer is a Canadian-controlled private corporation or a substantive CCPC at any time in a taxation year, or is a partnership all the members of which (other than non-resident persons) are corporations in the year, and the taxpayer files an election in prescribed form and manner by the taxpayer’s filing-due date for the year (or, if the taxpayer is a partnership, on or before the day on which a return is required by section 229 of the Income Tax Regulations to be filed in respect of the year or would be required to so be filed if that section applied to the partnership) for the purpose of determining the amount deductible by the taxpayer in computing its income for the year under subsection 91(4) in respect of an income amount (within the meaning of that subsection) in respect of a share of the capital stock of a controlled foreign affiliate of the taxpayer, (a) the amount deductible under subsection 91(4) in respect of the portion of the income amount that may reasonably be regarded as attributable to the foreign accrual business income of any controlled foreign affiliate (in this subsection referred to as the “FABI amount”) is to be determined separately from the amount deductible under subsection 91(4) in respect of the portion of the income amount other than the FABI amount (in this subsection referred to as the “excess amount”); and (b) in determining each of the amounts referred to in paragraph (a), (i) the amount deductible under subsection