Income Tax Act — I-3.3 135.1
Definitions 135.1 (1) The following definitions apply in this section and section 135. agricultural business means a business, carried on in Canada, that consists of one or any combination of (a) farming (including, if the person carrying on the business is a corporation described in paragraph (a) of the definition agricultural cooperative corporation , the production, processing, storing and wholesale marketing of the products of its members’ farming activities); or (b) the provision of goods or services (other than financial services) that are required for farming. ( entreprise d’agriculture ) agricultural cooperative corporation at any time means a corporation (a) that was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations; and (b) that has at that time (i) as its principal business an agricultural business, or (ii) members, making up at least 75% of all members of the corporation, each of whom (A) is an agricultural cooperative corporation, or (B) has as their principal business a farming business. ( coopérative agricole ) allowable disposition means a disposition by a taxpayer of a tax deferred cooperative share less than five years after the day on which the share was issued if (a) before the disposition, (i) the agricultural cooperative corporation is notified in writing that the taxpayer has after the share was issued become disabled and permanently unfit for work, or termi­nally ill, or (ii) the taxpayer ceases to be a member of the agricultural cooperative corporation; or (b) the agricultural cooperative corporation is notified in writing that the share is held by a person on whom the share has devolved as a consequence of the death of the taxpayer. ( disposition admissible ) eligible member of an agricultural cooperative corporation means a member who carries on an agricultural business and who is (a) an individual resident in Canada; (b) an agricultural cooperative corporation; (c) a corporation resident in Canada that carries on the business of farming in Canada; or (d) a partnership that carries on the business of farming in Canada, all of the members of which are described in any of paragraphs (a) to (c) or this paragraph. ( membre admissible ) tax deferred cooperative share at any time means a share (a) issued, after 2005 and before 2031, by an agricultural cooperative corporation to a person or partnership that is at the time the share is issued an eligible member of the agricultural cooperative corporation, pursuant to an allocation in proportion to patronage; (b) the holder of which is not entitled to receive on the redemption, cancellation or acquisition of the share by the agricultural cooperative corporation or by any person with whom the agricultural cooperative corporation does not deal at arm’s length an amount that is greater than the amount that would, if this Act were read without reference to this section, be included under subsection 135(7) in computing the eligible member’s income for their taxation year in which the share was issued; (c) that has not before that time been deemed by subsection (4) to have been disposed of; and (d) that is of a class (i) the terms of which provide that the agricultural cooperative corporation shall not, otherwise than pursuant to an allowable disposition, redeem, acquire or cancel a share of the class before the day that is five years after the day on which the share was issued, and (ii) that is identified by the agricultural cooperative corporation in prescribed form and manner as a class of tax deferred cooperative shares. ( part à imposition différée ) tax paid balance of a taxpayer at the end of a particular taxation year of the taxpayer means the amount, if any, by which (a) the total of (i) the taxpayer’s tax paid balance at the end of the immediately preceding taxation ye