Income Tax Act — I-3.3 149
r of electrical energy, heat, natural gas or water, where the activities are regulated under the laws of the province. Votes or de facto control (1.3) Paragraphs (1)(d) to (d.6) do not apply in respect of a person’s taxable income for a period in a taxation year if at any time during the period (a) the person is a corporation shares of the capital stock of which are owned by one or more other persons that, in total, give them more than 10% of the votes that could be cast at a meeting of shareholders of the corporation, other than shares that are owned by one or more persons each of which is (i) Her Majesty in right of Canada or of a province, (ii) a municipality in Canada, (iii) a municipal or public body performing a function of government in Canada, or (iv) a corporation, a commission or an association, to which any of paragraphs (1)(d) to (d.6) apply; or (b) the person is, or would be if the person were a corporation, controlled, directly or indirectly in any manner whatever, by a person, or by a group of persons that includes a person, who is not (i) Her Majesty in right of Canada or of a province, (ii) a municipality in Canada, (iii) a municipal or public body performing a function of government in Canada, or (iv) a corporation, a commission or an association, to which any of paragraphs (1)(d) to (d.6) apply. Determination of income (2) For the purposes of paragraphs 149(1)(e), 149(1)(i), 149(1)(j) and 149(1)(l), in computing the part, if any, of any income that was payable to or otherwise available for the personal benefit of any person or the total of any amounts that is not less than a percentage specified in any of those paragraphs of any income for a period, the amount of such income shall be deemed to be the amount thereof determined on the assumption that the amount of any taxable capital gain or allowable capital loss is nil. Application of s. (1) (3) Subsection 149(1) does not apply in respect of the taxable income of a benevolent or fraternal society or order from carrying on a life insurance business or, for greater certainty, from the sale of property used by it in the year in, or held by it in the year in the course of, carrying on a life insurance business. Idem (4) For the purposes of subsection 149(3), the taxable income of a benevolent or fraternal benefit society or order from carrying on a life insurance business shall be computed on the assumption that it had no income or loss from any other sources. (4.1) to (4.3) [Repealed, 2017, c. 20, s. 24] Exception — investment income of certain clubs (5) Notwithstanding subsections (1) and (2), where a club, society or association was for any period, a club, society or association described in paragraph (1)(l) the main purpose of which was to provide dining, recreational or sporting facilities for its members (in this subsection referred to as the “club”), a trust is deemed to have been created on the later of the commencement of the period and the end of 1971 and to have continued in existence throughout the period, and, throughout that period, the following rules apply: (a) the property of the club shall be deemed to be the property of the trust; (b) where the club is a corporation, the corporation shall be deemed to be the trustee having control of the trust property; (c) where the club is not a corporation, the officers of the club shall be deemed to be the trustees having control of the trust property; (d) tax under this Part is payable by the trust on its taxable income for each taxation year; (e) the income and taxable income of the trust for each taxation year shall be computed on the assumption that it had no incomes or losses other than (i) incomes and losses from property, and (ii) taxable capital gains and allowable capital losses from dispositions of property, other than property used exclusively for and directly in the course of providing the dining, recreational or sporting facilities provided by it for its members; (f) in computing the taxable i