GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Income Tax Act — I-3.3 74.4
efore the particular time from the corporation or from a person with whom the transferor deals at arm’s length, in exchange for excluded consideration previously received by the transferor as consideration for the property or for excluded consideration substituted for such consideration; (b) in the case of a loan of money or property to a corporation, the amount, if any, by which (i) the principal amount of the loan of money at the time the loan was made, or (ii) the fair market value of the property lent at the time the loan was made, as the case may be, exceeds the fair market value, at the time the repayment is received by the lender, of any repayment of the loan (other than a repayment that is excluded consideration at the particular time). Benefit not granted to a designated person (4) For the purposes of subsection 74.4(2), one of the main purposes of a transfer or loan by an individual to a corporation shall not be considered to be to benefit, either directly or indirectly, a designated person in respect of the individual, where (a) the only interest that the designated person has in the corporation is a beneficial interest in shares of the corporation held by a trust; (b) by the terms of the trust, the designated person may not receive or otherwise obtain the use of any of the income or capital of the trust while being a designated person in respect of the individual; and (c) the designated person has not received or otherwise obtained the use of any of the income or capital of the trust, and no deduction has been made by the trust in computing its income under subsection 104(6) or (12) in respect of amounts paid or payable to, or included in the income of, that person while being a designated person in respect of the individual. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 74.4; 1994, c. 7, Sch. II, s. 52; 2000, c. 19, s. 10; 2007, c. 2, s. 43.1
Income Tax Act — I-3.3
designated person , in respect of an individual, has the meaning assigned by subsection 74.5(5); ( personne désignée )
Income Tax Act — I-3.3 (a)
excluded consideration , at any time, means consideration received by an individual that is (a) indebtedness, (b) a share of the capital stock of a corporation, or (c) a right to receive indebtedness or a share of the capital stock of a corporation. ( contrepartie exclue )
Income Tax Act — I-3.3 74.5
ly to a transfer or loan of property where it may reasonably be concluded that one of the main reasons for the transfer or loan was to reduce the amount of tax that would, but for this subsection, be payable under this Part on the income and gains derived from the property or from property substituted therefor. Where ss. 74.1 to 74.3 do not apply (12) Sections 74.1, 74.2 and 74.3 do not apply in respect of a transfer by an individual of property (a) as a payment of a premium under a registered retirement savings plan under which the individual’s spouse or common-law partner is, immediately after the transfer, the annuitant (within the meaning of subsection 146(1)) to the extent that the premium is deductible in computing the income of the individual for a taxation year; (a.1) [Repealed, 2011, c. 24, s. 17] (a.2) as a payment of a contribution under a registered disability savings plan; (b) as or on account of an amount paid by the individual to another individual who is the individual’s spouse or common-law partner or a person who was under 18 years of age in a taxation year and who (i) does not deal with the individual at arm’s length, or (ii) is the niece or nephew of the individual, that is deductible in computing the individual’s income for the year and is required to be included in computing the income of the other individual; or (c) to the individual’s spouse or common-law partner, while the property (or property substituted for it) is held under a TFSA or FHSA of which the spouse or common-law partner is the holder and to the extent that the spouse or common-law partner does not have (i) an excess TFSA amount (as defined in subsection 207.01(1)), at the time of the contribution of the property under the TFSA, or (ii) an excess FHSA amount (as defined in subsection 207.01(1)), at the time of the contribution of the property under the FHSA. (d) [Repealed, 2026, c. 3, s. 19] Exception from attribution rules (13) Subsections 74.1(1) and (2), 74.3(1) and 75(2) of this Act and section 74 of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952, do not apply to any amount that is included in computing a specified individual’s split income for a taxation year. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 74.5; 1994, c. 7, Sch. II, s. 53, Sch. VIII, s. 30; 2000, c. 12, s. 142, c. 19, s. 11; 2007, c. 35, s. 106; 2008, c. 28, s. 6; 2011, c. 24, s. 17 2022, c. 19, s. 9 2026, c. 3, s. 19
Income Tax Act — I-3.3 75
Trusts 75 (2) If a trust, that is resident in Canada and that was created in any manner whatever since 1934, holds property on condition (a) that it or property substituted therefor may (i) revert to the person from whom the property or property for which it was substituted was directly or indirectly received (in this subsection referred to as “the person”), or (ii) pass to persons to be determined by the person at a time subsequent to the creation of the trust, or (b) that, during the existence of the person, the property shall not be disposed of except with the person’s consent or in accordance with the person’s direction, any income or loss from the property or from property substituted for the property, and any taxable capital gain or allowable capital loss from the disposition of the property or of property substituted for the property, shall, during the existence of the person while the person is resident in Canada, be deemed to be income or a loss, as the case may be, or a taxable capital gain or allowable capital loss, as the case may be, of the person. Exceptions (3) Subsection 75(2) does not apply to property held in a taxation year (a) by a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a FHSA, a pooled registered pension plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan, a retirement compensation arrangement or a TFSA; (b) by an employee life and health trust, an employee trust, a private foundation that is a registered charity, a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), a trust described by paragraph (a.1) of the definition trust in subsection 108(1), or a trust described by paragraph 149(1)(y); (c) by a qualifying environmental trust; or (c.1) to (c.3) [Repealed, 2013, c. 40, s. 35] (d) by a trust if (i) the trust acquired the property, or other property for which the property is a substitute, from a particular individual, (ii) the particular individual acquired the property or the other property, as the case may be, in respect of another individual as a consequence of the operation of subsection 122.61(1) or under section 4 of the Universal Child Care Benefit Act , and (iii) the trust has no beneficiaries (as defined in subsection 108(1)) who may for any reason receive directly from the trust any of the income or capital of the trust other than individuals in respect of whom the particular individual acquired property as a consequence of the operation of a provision described in subparagraph (ii). [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 75; 1995, c. 3, s. 21; 1998, c. 19, s. 13; 2001, c. 17, s. 55; 2007, c. 35, s. 107; 2008, c. 28, s. 7; 2010, c. 25, s. 14; 2012, c. 31, s. 15; 2013, c. 34, ss. 5, 212, c. 40, s. 35; 2017, c. 33, s. 21 2022, c. 19, s. 10
Income Tax Act — I-3.3 75.1
Gain or loss deemed that of transferor 75.1 (1) Where (a) subsection 73(3) or (4) applied to the transfer of property (in this subsection referred to as “transferred property”) by a taxpayer to a child of the taxpayer, (b) the transfer was made at less than the fair market value of the transferred property immediately before the time of the transfer, and (c) in a taxation year, the transferee disposed of the transferred property and did not, before the end of that year, attain the age of 18 years, the following rules apply: (d) the amount, if any, by which (i) the total of the transferee’s taxable capital gains for the year from dispositions of transferred property exceeds (ii) the total of the transferee’s allowable capital losses for the year from dispositions of transferred property, shall during the lifetime of the transferor while the transferor is resident in Canada, be deemed to be a taxable capital gain of the transferor for the year from the disposition of property, (e) the amount, if any, by which the total determined under subparagraph 75.1(1)(d)(ii) exceeds the total determined under subparagraph 75.1(1)(d)(i) shall, during the lifetime of the transferor while the transferor is resident in Canada, be deemed to be an allowable capital loss of the transferor for the year from the disposition of property, and (f) any taxable capital gain or allowable capital loss taken into account in computing an amount described in paragraph 75.1(1)(d) or the amount described in paragraph 75.1(1)(e) shall, except for the purposes of those paragraphs, to the extent that the amount so described is deemed by virtue of this subsection to be a taxable capital gain or an allowable capital loss of the transferor, be deemed not to be a taxable capital gain or an allowable capital loss, as the case may be, of the transferee. Definition of child (2) For the purposes of this section, child of a taxpayer includes a child of the taxpayer’s child and a child of the taxpayer’s child’s child. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 75.1; 1994, c. 7, Sch. II, s. 54
Income Tax Act — I-3.3 75.2
Rules applicable with respect to “qualifying trust annuity” 75.2 If an amount paid to acquire a qualifying trust annuity with respect to a taxpayer was deductible under paragraph 60(l) in computing the taxpayer’s income, (a) any amount that is paid out of or under the annuity at any particular time after 2005 and before the death of the taxpayer is deemed to have been received out of or under the annuity at the particular time by the taxpayer, and not to have been received by any other taxpayer; and (b) if the taxpayer dies after 2005 (i) an amount equal to the fair market value of the annuity at the time of the taxpayer’s death is deemed to have been received, immediately before the taxpayer’s death, by the taxpayer out of or under the annuity, and (ii) for the purpose of subsection 70(5), the annuity is to be disregarded in determining the fair market value (immediately before the taxpayer’s death) of the taxpayer’s interest in the trust that is the annuitant under the annuity. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2013, c. 34, s. 213
Income Tax Act — I-3.3 76
Security in satisfaction of income debt 76 (1) Where a person receives a security or other right or a certificate of indebtedness or other evidence of indebtedness wholly or partially as payment of, in lieu of payment of or in satisfaction of, a debt that is then payable, the amount of which debt would be included in computing the person’s income if it were paid, the value of the security, right or indebtedness or the applicable portion thereof shall, notwithstanding the form or legal effect of the transaction, be included in computing the person’s income for the taxation year in which it is received. Idem (2) Where a security or other right or a certificate of indebtedness or other evidence of indebtedness is received by a person wholly or partially as payment of, in lieu of payment of or in satisfaction of, a debt before the debt is payable, but is not itself payable or redeemable before the day on which the debt is payable, it shall, for the purpose of subsection 76(1), be deemed to be received by the person holding it at that time when the debt becomes payable. Section enacted for greater certainty (3) This section is enacted for greater certainty and shall not be construed as limiting the generality of the other provisions of this Part by which amounts are required to be included in computing income. Debt deemed not to be income debt (4) Where a cash purchase ticket or other form of settlement prescribed pursuant to the Canada Grain Act or by the Minister is issued to a taxpayer in respect of grain delivered in a taxation year of a taxpayer to a primary elevator or process elevator and the ticket or other form of settlement entitles the holder thereof to payment by the operator of the elevator of the purchase price, without interest, stated in the ticket for the grain at a date that is after the end of that taxation year, the amount of the purchase price stated in the ticket or other form of settlement shall, notwithstanding any other provision of this section, be included in computing the income of the taxpayer to whom the ticket or other form of settlement was issued for the taxpayer’s taxation year immediately following the taxation year in which the grain was delivered and not for the taxation year in which the grain was delivered. Definitions of certain expressions (5) In subsection (4), the expressions cash purchase ticket , operator , primary elevator and process elevator have the meanings assigned by the Canada Grain Act , and grain means wheat, oats, barley, rye, flaxseed, rapeseed and canola produced in Canada. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 76; 1994, c. 7, Sch. II, s. 55; 2012, c. 19, s. 2
Income Tax Act — I-3.3 76.1
Non-resident moving debt from Canadian business 76.1 (1) If at any time a debt obligation of a non-resident taxpayer that is denominated in a foreign currency ceases to be an obligation of the taxpayer in respect of a business or part of a business carried on by the taxpayer in Canada immediately before that time (other than an obligation in respect of which the taxpayer ceased to be indebted at that time), for the purpose of determining the amount of any income, loss, capital gain or capital loss due to the fluctuation in the value of the foreign currency relative to Canadian currency, the taxpayer is deemed to have settled the debt obligation immediately before that time at the amount outstanding on account of its principal amount. Non-resident assuming debt (2) If at any time a debt obligation of a non-resident taxpayer that is denominated in a foreign currency becomes an obligation of the taxpayer in respect of a business or part of a business that the taxpayer carries on in Canada after that time (other than an obligation in respect of which the taxpayer became indebted at that time), the amount of any income, loss, capital gain or capital loss in respect of the obligation due to the fluctuation in the value of the foreign currency relative to Canadian currency shall be determined based on the amount of the obligation in Canadian currency at that time. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2001, c. 17, s. 56
Income Tax Act — I-3.3 77
77 [Repealed, 1995, c. 21, s. 52] [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 77; 1995, c. 21, s. 52
Income Tax Act — I-3.3 79
ion with respect to employee or shareholder debt (5) Any amount included under paragraph 6(1)(a) or subsection 15(1) in computing a person’s income for a taxation year that can reasonably be considered to have been included in the amount determined for A, C or D in subsection 79(3) as a consequence of properties being surrendered before the year by the person shall be deemed to be a repayment by the person, immediately before the end of the year, of assistance to which subsection 79(4) applies. Surrender of property not payment or repayment by debtor (6) Where a specified amount of a debt is included in the amount determined at any time for A, B, C or D in subsection 79(3) in respect of a property surrendered at that time by a person to a creditor of the person, for the purpose of computing the person’s income, no amount shall be considered to have been paid or repaid by the person as a consequence of the acquisition or reacquisition of the surrendered property by the creditor. Foreign exchange (7) Where a debt is denominated in a currency (other than Canadian currency), any amount determined for A, B, C or D in subsection 79(3) in respect of the debt shall be determined with reference to the relative value of that currency and Canadian currency at the time the debt was issued. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 79; 1994, c. 7, Sch. II, s. 57; 1995, c. 21, s. 26; 1998, c. 19, s. 109; 2001, c. 17, s. 209; 2016, c. 12, s. 22
Income Tax Act — I-3.3
creditor of a particular person includes a person to whom the particular person is obligated to pay an amount under a mortgage, hypothecary claim or similar obligation and, where property was sold to the particular person under a conditional sales agreement, the seller of the property (or any assignee with respect to the agreement) is deemed to be a creditor of the particular person in respect of that property; ( créancier )
Income Tax Act — I-3.3
debt includes an obligation to pay an amount under a mortgage, hypothecary claim or similar obligation or under a conditional sales agreement; ( dette )
Income Tax Act — I-3.3
person includes a partnership; ( personne )
Income Tax Act — I-3.3 (a)
property does not include (a) money, or (b) indebtedness owed by or guaranteed by the government of a country, or a province, state, or other political subdivision of that country; ( bien )
Income Tax Act — I-3.3 (a)
specified amount at any time of a debt owed or assumed by a person means (a) the unpaid principal amount of the debt at that time, and (b) unpaid interest accrued to that time on the debt. ( montant déterminé )
Income Tax Act — I-3.3
creditor has the meaning assigned by subsection 79(1); ( créancier )
Income Tax Act — I-3.3
debt has the meaning assigned by subsection 79(1); ( dette )
Income Tax Act — I-3.3
person has the meaning assigned by subsection 79(1); ( personne )
Income Tax Act — I-3.3
property has the meaning assigned by subsection 79(1); ( bien )
Income Tax Act — I-3.3
specified amount has the meaning assigned by subsection 79(1); ( montant déterminé )
Income Tax Act — I-3.3 (a)
specified cost to a person of a debt owing to the person means (a) where the debt is capital property of the person, the adjusted cost base to the person of the debt, and (b) in any other case, the amount, if any, by which (i) the cost amount to the person of the debt exceeds (ii) such portion of that cost amount as would be deductible in computing the person’s income (otherwise than in respect of the principal amount of the debt) if the debt were established by the person to have become a bad debt or to have become uncollectable. ( coût déterminé )
Income Tax Act — I-3.3 80
(iii) subject to subparagraph 80(15)(c)(iv), the obligation referred to in subparagraph 80(15)(c)(i) shall be deemed to have been issued at the same time at which, and in the same circumstances in which, the partnership obligation was issued, (iv) if the member is a taxpayer that was subject to a loss restriction event at a particular time that is before the end of that fiscal period and before the taxpayer became a member of the partnership, and the partnership obligation was issued before the particular time, (A) subject to the application of this subparagraph to the taxpayer after the particular time and before the end of that fiscal period, the obligation referred to in subparagraph (i) is deemed to have been issued by the member after the particular time, and (B) subparagraph (b)(ii) of the definition relevant loss balance in subsection (1), paragraph (f) of the definition successor pool in that subsection and paragraph (b) of the definition unrecognized loss in that subsection do not apply in respect of the loss restriction event, and (v) the source in connection with which the obligation referred to in subparagraph 80(15)(c)(i) was issued shall be deemed to be the source in connection with which the partnership obligation was issued. Designations by Minister (16) Where a commercial obligation issued by a debtor is settled at any time in a taxation year and, as a consequence of the settlement an amount would, but for this subsection, be deducted under section 61.2 or 61.3 in computing the debtor’s income for the year and the debtor has not designated amounts under subsections 80(5) to 80(11) to the maximum extent possible in respect of the settlement, (a) the Minister may designate amounts under subsections 80(5) to 80(11) to the extent that the debtor would have been permitted to designate those amounts; and (b) the amounts designated by the Minister shall, except for the purpose of this subsection, be deemed to have been designated by the debtor as required by subsections 80(5) to 80(11). (17) [Repealed, 1998, c. 19, s. 111] Partnership designations (18) Where a commercial obligation issued by a partnership is settled at any time after December 20, 1994, the amount designated under subsection 80(9), 80(10) or 80(11) in respect of the settlement by the partnership to reduce the adjusted cost base of a capital property acquired shall not exceed the amount, if any, by which the adjusted cost base at that time to the partnership of the property exceeds the fair market value at that time of the property. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 80; 1994, c. 7, Sch. II, s. 58; 1995, c. 21, s. 27; 1998, c. 19, s. 111; 1999, c. 22, s. 21; 2001, c. 17, s. 58; 2007, c. 35, s. 21; 2013, c. 34, s. 118, c. 40, s. 36; 2016, c. 12, s. 23 2023, c. 26, s. 15 2024, c. 15, s. 15
Income Tax Act — I-3.3 (a)
commercial debt obligation issued by a debtor means a debt obligation issued by the debtor (a) where interest was paid or payable by the debtor in respect of it pursuant to a legal obligation, or (b) if interest had been paid or payable by the debtor in respect of it pursuant to a legal obligation, an amount in respect of the interest was or would have been deductible in computing the debtor’s income, taxable income or taxable income earned in Canada, as the case may be, if this Act were read without reference to paragraph 18(1)(g), subsections 18(2), (3.1) and (4) and 18.2(2) and section 21; ( créance commerciale )
Income Tax Act — I-3.3 (a)
commercial obligation issued by a debtor means (a) a commercial debt obligation issued by the debtor, or (b) a distress preferred share issued by the debtor; ( dette commerciale )
Income Tax Act — I-3.3
debtor includes any corporation that has issued a distress preferred share and any partnership; ( débiteur )
Income Tax Act — I-3.3 (a)
directed person at any time in respect of a debtor means (a) a taxable Canadian corporation or an eligible Canadian partnership by which the debtor is controlled at that time, or (b) a taxable Canadian corporation or an eligible Canadian partnership that is controlled at that time by (i) the debtor, (ii) the debtor and one or more persons related to the debtor, or (iii) a person or group of persons by which the debtor is controlled at that time; ( personne désignée )