Income Tax Act — I-3.3 18.4
 and B is (i) if subparagraph (i) of the description of A applies, (A) where the amount determined for B in paragraph (6)(a) in respect of the payment is equal to 10% or less of the amount determined for A, nil, and (B) in any other case, the amount determined for B in paragraph (6)(a) in respect of the payment, or (ii) if subparagraph (ii) of the description of A applies, (A) where the amount determined for D in paragraph (6)(b) in respect of the payment is equal to 10% or less of the amount determined for A, nil, and (B) in any other case, the amount determined for D in paragraph (6)(b) in respect of the payment. No double counting (8) Any amount that has already been included, directly or indirectly, in computing foreign ordinary income or Canadian ordinary income of a particular entity in respect of a payment shall not be included, directly or indirectly, in computing foreign ordinary income or Canadian ordinary income of the particular entity or any other entity in respect of the payment. Notional interest expense — deemed payment (9) For the purposes of this section (other than this subsection) and section 12.7, if, in the absence of any foreign expense restriction rule, an amount (referred to in this subsection as the “deductible amount”) would be, or can reasonably be expected to be, deductible in respect of a notional interest expense on a debt in computing the relevant foreign income or profits of an entity for a foreign taxation year (a) the entity is deemed to make a payment in the year under the debt to the creditor in respect of the debt, in an amount equal to the deductible amount, and the creditor is deemed to be a recipient of the payment; (b) the deductible amount is deemed to be in respect of the payment; (c) any amount that is foreign ordinary income or Canadian ordinary income of the creditor in respect of notional interest income on the debt, that is calculated in respect of the same time period as the notional interest expense, is deemed to arise in respect of the payment; and (d) any deduction/non-inclusion mismatch arising from the payment is deemed to satisfy the condition in paragraph (10)(d). Hybrid financial instrument arrangement — conditions (10) For the purposes of this section and section 12.7, a payment arises under a hybrid financial instrument arrangement if (a) the payment (other than a payment described in paragraphs (14)(a) to (d)) arises under, or in connection with, a financial instrument; (b) any of the following conditions is satisfied: (i) a payer of the payment does not deal at arm’s length with, or is a specified entity in respect of, a recipient of the payment, or (ii) the payment arises under, or in connection with, a structured arrangement; (c) the payment gives rise to a deduction/non-inclusion mismatch; and (d) it can reasonably be considered that the deduction/non-inclusion mismatch (i) arises in whole or in part because of a difference in the treatment of the financial instrument — or of one or more transactions, either alone or together, where the transaction or transactions are part of a transaction or series of transactions that includes the payment or relates to the financial instrument — for tax purposes under the laws of more than one country that is attributable to the terms or conditions of the financial instrument or transaction or transactions, or (ii) would arise in whole or in part because of a difference described in subparagraph (i), if any other reason for the deduction/non-inclusion mismatch were disregarded. Hybrid financial instrument arrangement — amount (11) For the purposes of this section and section 12.7, if a payment arises under a hybrid financial instrument arrangement, (a) the amount of the hybrid financial instrument mismatch, in respect of the payment, is the portion of the amount of the deduction/non-inclusion mismatch arising from the payment that meets the condition in subparagraph (10)(d)(i) or (ii); (b) the deduction component, if any, of th