Income Tax Act — I-3.3 248
rate, variable, index, event, probability or thing) other than (A) revenue, income or cashflow in respect of the property over the term of the agreement, changes in the fair market value of the property over the term of the agreement, or any similar criteria in respect of the property, (B) if the sale price is denominated in the currency of a country other than Canada, changes in the value of the Canadian currency relative to that other currency, or (C) an underlying interest that relates to a sale of currency, if it can reasonably be considered that the sale is agreed to by the taxpayer in order to reduce its risk of fluctuations in the value of the currency in which a purchase or sale by the taxpayer of a capital property is denominated, in which an obligation that is a capital property of the taxpayer is denominated or from which a capital property of the taxpayer derives its value, and (ii) the agreement is part of an arrangement that has the effect — or would have the effect if the agreements that are part of the arrangement and that were entered into by persons or partnerships not dealing at arm’s length with the taxpayer were entered into by the taxpayer instead of non-arm’s length persons or partnerships — of eliminating a majority of the taxpayer’s risk of loss and opportunity for gain or profit in respect of the property for a period of more than 180 days; ( contrat dérivé à terme ) designated insurance property has the meaning assigned by subsection 138(12); ( bien d’assurance désigné ) designated stock exchange means a stock exchange, or that part of a stock exchange, for which a designation by the Minister of Finance under section 262 is in effect; ( bourse de valeurs désignée ) disposition of any property, except as expressly otherwise provided, includes (a) any transaction or event entitling a taxpayer to proceeds of disposition of the property, (b) any transaction or event by which, (i) where the property is a share, bond, debenture, note, certificate, mortgage, hypothecary claim, agreement of sale or similar property, or interest, or for civil law a right, in it, the property is in whole or in part redeemed, acquired or cancelled, (ii) where the property is a debt or any other right to receive an amount, the debt or other right is settled or cancelled, (iii) where the property is a share, the share is converted because of an amalgamation or merger, (iv) where the property is an option to acquire or dispose of property, the option expires, and (v) a trust, that can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property (unless the trust is described in any of paragraphs (a) to (e.1) of the definition trust in subsection 108(1)), ceases to act as agent for a beneficiary under the trust with respect to any dealing with any of the trust’s property, (b.1) where the property is an interest in a life insurance policy, a disposition within the meaning of section 148, (c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by paragraph (f) or (k), and (d) where the property is, or is part of, a taxpayer’s capital interest in a trust, except as provided by paragraph (h) or (i), a payment made after 1999 to the taxpayer from the trust that can reasonably be considered to have been made because of the taxpayer’s capital interest in the trust, but does not include (e) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, except where the transfer is (i) from a person or a partnership to a trust for the benefit of the person or the partnership, (ii) from a trust to a beneficiary under the trust, or (iii) from one trust maintained for the benefit of one or more beneficiaries under the trust to another trust maintained for the benefit of the same beneficiar