Income Tax Act — I-3.3 95
tock of a single class divided into 100 issued shares, and (e) the affiliate shall be deemed to own at that time that proportion of the issued shares of that class that (i) the fair market value of the affiliate’s interest in the partnership at that time is of (ii) the fair market value of all interests in the partnership at that time; ( bien exclu ) exempt trust , at a particular time in respect of a taxpayer resident in Canada, means a trust that, at that time, is a trust under which the interest of each beneficiary under the trust is, at all times that the interest exists during the trust’s taxation year that includes the particular time, a specified fixed interest of the beneficiary in the trust, if at the particular time (a) the trust is an eligible trust, (b) there are at least 150 beneficiaries each of whom holds a specified fixed interest, in the trust, that has a fair market value of at least $500, and (c) the total of all amounts each of which is the fair market value of an interest as a beneficiary under the trust held by a specified purchaser in respect of the taxpayer is not more than 10% of the total fair market value of all interests as a beneficiary under the trust; ( fiducie exonérée ) foreign accrual property income of a foreign affiliate of a taxpayer, for any taxation year of the affiliate, means the amount determined by the formula (A + A.1 + A.2 + B + C) – (D + E + F + F.1 + G + H) where A is the amount that would, if section 80 did not apply to the affiliate for the year or a preceding taxation year, be the total of all amounts, each of which is the affiliate’s income for the year from property, the affiliate’s income for the year from a business other than an active business or the affiliate’s income for the year from a non-qualifying business of the affiliate, in each case that amount being determined as if each amount described in clause (2)(a)(ii)(D) that was paid or payable, directly or indirectly, by the affiliate to another foreign affiliate of the taxpayer or of a person with whom the taxpayer does not deal at arm’s length were nil where an amount in respect of the income derived by the other foreign affiliate from that amount that was paid or payable to it by the affiliate was added in computing its income from an active business, other than (a) interest that would, by virtue of paragraph 81(1)(m), not be included in computing the income of the affiliate if it were resident in Canada, (b) a dividend from another foreign affiliate of the taxpayer, (i) if that other affiliate is resident in the same country as the affiliate, or (ii) to the extent that the amount of the dividend exceeds the amount that would be the deduction/non-inclusion mismatch arising from the dividend under paragraph 18.4(7)(c) if (A) subsection 18.4(6) were read without reference to its paragraph (a) and subparagraph (i) of the description of D in its paragraph (b), and (B) the amount determined for C in the definition foreign ordinary income in subsection 18.4(1) were deemed to be nil, (c) a taxable dividend to the extent that the amount thereof would, if the dividend were received by the taxpayer, be deductible by the taxpayer under section 112, or (d) any amount included because of subsection 80.4(2) in the affiliate’s income in respect of indebtedness to another corporation that is a foreign affiliate of the taxpayer or of a person resident in Canada with whom the taxpayer does not deal at arm’s length, A.1 is twice the total of all amounts included in computing the affiliate’s income from property or businesses (other than active businesses) for the year because of subsection 80(13), A.2 is the amount determined for G in respect of the affiliate for the preceding taxation year, B is the total of all amounts each of which is the portion of the affiliate’s income (to the extent that the income is not included under the description of A) for the year, or of the affiliate’s taxable capital gain for the year that can reasonab