Income Tax Act — I-3.3 270
tion of social welfare, (ii) it is exempt from income tax in its jurisdiction of residence, (iii) it has no shareholders or members who have a proprietary or beneficial interest in its income or assets, (iv) the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable entity other than pursuant to the conduct of the NFE’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFE has purchased, and (v) the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation documents require that, upon the NFE’s liquidation or dissolution, all of its assets be distributed to a governmental entity or other non-profit organization, or escheat to the government of the NFE’s jurisdiction of residence or any political subdivision thereof. ( ENF active ) annuity contract means a contract under which the issuer agrees to make payments for a period of time determined in whole or in part by reference to the life expectancy of one or more individuals and includes a contract (a) that is considered to be an annuity contract in accordance with the law, regulation or practice of the jurisdiction in which the contract was issued; and (b) under which the issuer agrees to make payments for a term of years. ( contrat de rente ) anti-money laundering and know your customer procedures or AML/KYC procedures means the record keeping, verification of identity, reporting of suspicious transactions and registration requirements required of a reporting financial institution under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act . ( procédures de connaissance de la clientèle et de lutte contre le blanchiment d’argent ou procédures AML/KYC ) broad participation retirement fund means a fund that is established to provide retirement, disability or death benefits to beneficiaries that are current or former employees (or persons designated by those employees) of one or more employers in consideration for services rendered, if the fund (a) does not have a single beneficiary with a right to more than 5% of the fund’s assets; (b) is subject to government regulation and provides information reporting to the Minister; and (c) satisfies at least one of the following requirements: (i) the fund is generally exempt from tax on investment income, or taxation of investment income is deferred or taxed at a reduced rate, due to its status as a retirement or pension plan, (ii) the fund receives at least 50% of its total contributions (other than transfers of assets from broad participation retirement funds, narrow participation retirement funds or from retirement and pension accounts described in paragraph (a) of the definition excluded account ) from the sponsoring employers, (iii) distributions or withdrawals from the fund are (A) allowed only upon the occurrence of specified events related to retirement, disability or death (except rollover distributions to broad participation retirement funds, narrow participation retirement funds and pension funds of a governmental entity, international organization or central bank or retirement and pension accounts described in paragraph (a) of the definition excluded account ), or (B) subject to penalties if they are made before such specified events, and (iv) contributions (other than permitted make-up contributions) by an employee to the fund (A) are limited by reference to the employee’s remuneration, or (B) must not exceed 50,000 USD annually, applying the rules set forth in subsection 277(3). ( fonds de retraite à large participation ) Canadian financial institution means a financial institution that is (a) either (i) resident in Canada, but excluding any branch of the financial institution that is located outside Canada, or (ii) a bra