Income Tax Act — I-3.3 84.1
4.1(2.2)(a)(ii) or by any combination of those persons or trusts are deemed to be owned at that time by the taxpayer and not by the person who actually owned the shares at that time; (b) a group of persons in respect of a corporation means any 2 or more persons each of whom owns shares of the capital stock of the corporation; (c) a corporation that is controlled by one or more members of a particular group of persons in respect of that corporation is considered to be controlled by that group of persons; and (d) a corporation may be controlled by a person or a particular group of persons even though the corporation is also controlled or deemed to be controlled by another person or group of persons. Rules for subsections (2.31) and (2.32) (2.3) For the purposes of this subsection and subsections (2.31) and (2.32), (a) a child of a taxpayer has the same meaning as in subsection 70(10) and also includes (i) a niece or nephew of the taxpayer, (ii) a niece or nephew of the taxpayer’s spouse or common-law partner, (iii) a spouse or common-law partner of a niece or nephew referred to in subparagraph (i) or (ii), and (iv) a child of a niece or nephew referred to in subparagraph (i) or (ii); (b) in applying subparagraphs (2.31)(c)(iii) and (2.32)(c)(iii), if the relevant group entity is a partnership, (i) the partnership is deemed to be a corporation (in this paragraph referred to as the “deemed corporation”), (ii) the deemed corporation is deemed to have a capital stock of a single class of shares, with a total of 100 issued and outstanding shares, (iii) each member (in this paragraph referred to as a “deemed shareholder”) of the partnership is deemed to be a shareholder of the deemed corporation, (iv) each deemed shareholder of the deemed corporation is deemed to hold a number of shares in the capital stock of the deemed corporation determined by the formula A × 100 where A is equal to (A) the deemed shareholder’s specified proportion for the last fiscal period of the deemed corporation, or (B) if the deemed shareholder does not have a specified proportion described in clause (A), the proportion that is the fair market value of the deemed shareholder’s interest in the deemed corporation at that time relative to the fair market value of all interests in the deemed corporation at that time, and (v) the deemed corporation’s fiscal period is deemed to be its taxation year; (c) own, directly or indirectly , in respect of a property, means (i) direct ownership of the property, and (ii) an ownership interest or, for civil law, a right in the shares of a corporation, an interest in a partnership or an interest in a trust that has a direct or indirect interest or, for civil law, a right, in the property, except that for the purposes of paragraphs (2.31)(d) and (e) and (2.32)(d) and (e), this subparagraph does not apply as a look-through rule for an interest, or for civil law, a right in non-voting preferred shares or debt of (A) the purchaser corporation (within the meaning of subsections (2.31) and (2.32)), (B) the subject corporation (within the meaning of subsections (2.31) and (2.32)), or (C) any relevant group entity (within the meaning of subsections (2.31) and (2.32)); (d) if a person or partnership’s share of the accumulating income or capital of a trust in respect of which the person or partnership has an interest as a beneficiary depends on the exercise by a person (in this paragraph referred to as a “trustee”) of, or the failure by any trustee to exercise, a discretionary power, that trustee is deemed to have fully exercised the power, or to have failed to exercise the power, as the case may be; (e) if one or more children referred to in (i) subparagraph (2.31)(f)(i) have disposed of, or caused the disposition of, all of the shares in the capital stock of the purchaser corporation, the subject corporation or all relevant group entities to an arm’s length person or group of persons, the conditions set out in paragraphs (2.31)(f) and