Income Tax Act — I-3.3 191
Definitions 191 (1) In this Part, excluded dividend means a dividend (a) paid by a corporation to a shareholder that had a substantial interest in the corporation at the time the dividend was paid, (b) paid by a corporation that was a financial intermediary corporation or a private holding corporation at the time the dividend was paid, (c) paid by a particular corporation that would, but for paragraphs (h) and (i) of the definition financial intermediary corporation in this subsection, have been a financial intermediary corporation at the time the dividend was paid, except where the dividend was paid to a controlling corporation in respect of the particular corporation or to a specified person (within the meaning assigned by paragraph (h) of the definition taxable preferred share in subsection 248(1)) in relation to such a controlling corporation, (d) paid by a mortgage investment corporation, or (e) that is a capital gains dividend within the meaning assigned by subsection 131(1); ( dividende exclu ) financial intermediary corporation means a corporation that is (a) a corporation described in subparagraph (b)(ii) of the definition retirement savings plan in subsection 146(1), (b) an investment corporation, (c) a mortgage investment corporation, (d) a mutual fund corporation, (e) a prescribed venture capital corporation, or (f) a prescribed labour-sponsored venture capital corporation, but does not include (g) a prescribed corporation, (h) a corporation that is controlled by or for the benefit of one or more corporations (each of which is referred to in this subsection as a “controlling corporation”) other than financial intermediary corporations or private holding corporations unless the controlling corporations and specified persons (within the meaning assigned by paragraph (h) of the definition taxable preferred share in subsection 248(1)) in relation to the controlling corporations do not own in the aggregate shares of the capital stock of the corporation having a fair market value of more than 10% of the fair market value of all of the issued and outstanding shares of the capital stock of the corporation (those fair market values being determined without regard to any voting rights attaching to those shares), or (i) any particular corporation in which another corporation (other than a financial intermediary corporation or a private holding corporation) has a substantial interest unless the other corporation and specified persons (within the meaning assigned by paragraph (h) of the definition taxable preferred share in subsection 248(1)) in relation to the other corporation do not own in the aggregate shares of the capital stock of the particular corporation having a fair market value of more than 10% of the fair market value of all of the issued and outstanding shares of the capital stock of the particular corporation (those fair market values being determined without regard to any voting rights attaching to those shares); ( intermédiaire financier constitué en société ) private holding corporation means a private corporation the only undertaking of which is the investing of its funds, but does not include (a) a specified financial institution, (b) any particular corporation that owns shares of another corporation in which it has a substantial interest, except where the other corporation would, but for that substantial interest, be a financial intermediary corporation or a private holding corporation, or (c) any particular corporation in which another corporation owns shares and has a substantial interest, except where the other corporation would, but for that substantial interest, be a private holding corporation. ( société de portefeuille privée ) Substantial interest (2) For the purposes of this Part, a shareholder has a substantial interest in a corporation at any time if the corporation is a taxable Canadian corporation and (a) the shareholder is related (otherwise than by reason of a right referred to in paragraph 2