Income Tax Act — I-3.3 94
immediate or future, absolute or contingent or conditional on or subject to the exercise of any discretion by any person or partnership) is, directly or indirectly, determined primarily by one or more of the following criteria: (A) the fair market value of, production from or use of any of the property of the closely held corporation, (B) gains or profits from the disposition of any of the property of the closely held corporation, (C) income, profits, revenue or cash flow of the closely held corporation, or (D) any other criterion similar to a criterion referred to in any of clauses (A) to (C); and (c) property (i) that the person or partnership acquired as part of a series of transactions described in paragraph (a) or (b) in respect of another property, and (ii) the fair market value of which is derived in whole or in part, directly or indirectly, from that other property. ( bien d’exception ) specified party in respect of a particular person at any time means (a) the particular person’s spouse or common-law partner at that time; (b) a corporation that at that time (i) is a controlled foreign affiliate of the particular person or their spouse or common-law partner, or (ii) would be a controlled foreign affiliate of a partnership, of which the particular person is a majority-interest partner, if the partnership were a person resident in Canada at that time; (c) a person, or a partnership of which the particular person is a majority-interest partner, for which it is reasonable to conclude that the benefit referred to in subparagraph (8)(a)(iv) was conferred (i) in contemplation of the person becoming after that time a corporation described by paragraph (b), or (ii) to avoid or minimize a liability that arose, or that would otherwise have arisen, under this Part with respect to the particular person; or (d) a corporation in which the particular person, or partnership of which the particular person is a majority-interest partner, is a shareholder if (i) the corporation is at or before that time a beneficiary under a trust, and (ii) the particular person or the partnership is a beneficiary under the trust solely because of the application of paragraph (b) of the definition beneficiary in this subsection to the particular person or the partnership in respect of the corporation. ( tiers déterminé ) specified share means a share of the capital stock of a corporation other than a share that is a prescribed share for the purpose of paragraph 110(1)(d). ( action déterminée ) specified time in respect of a trust for a taxation year of the trust means (a) if the trust exists at the end of the taxation year, the time that is the end of that taxation year; and (b) in any other case, the time in that taxation year that is immediately before the time at which the trust ceases to exist. ( moment déterminé ) successor beneficiary at any time under a trust means a person that is a beneficiary under the trust solely because of a right of the person to receive any of the trust’s income or capital, if under that right the person may so receive that income or capital only on or after the death after that time of an individual who, at that time, is alive and (a) is a contributor to the trust; (b) is related to (in this definition including an uncle, aunt, niece or nephew of) a contributor to the trust; or (c) would have been related to a contributor to the trust if every individual who was alive before that time were alive at that time. ( bénéficiaire remplaçant ) transaction includes an arrangement or event. ( opération ) trust includes, for greater certainty, an estate. ( fiducie ) Rules of application (2) In this section and section 94.2, (a) a person or partnership is deemed to have transferred, at any time, a property to a trust if (i) at that time the person or partnership transfers or loans property (other than by way of an arm’s length transfer) to another person or partnership, and (ii) because of that transfer or loan (A) the fair market va