Income Tax Act — I-3.3 15
 all of the following apply: (a) subsection (2) would, in the absence of this subsection, apply to the amount owing; (b) the amount becomes owing after March 28, 2012; (c) at that time, the CRIC is controlled by a non-resident corporation that (i) is the subject corporation, or (ii) does not deal at arm’s length with the subject corporation; and (d) either (i) in the case of an amount owing to the CRIC, the CRIC and a non-resident corporation that controls the CRIC jointly elect in writing under this subparagraph in respect of the amount owing and file the election with the Minister on or before the filing-due date of the CRIC for the taxation year that includes that time, or (ii) in the case of an amount owing to the qualifying Canadian partnership, all the members of the qualifying Canadian partnership and a non-resident corporation that controls the CRIC jointly elect in writing under this subparagraph in respect of the amount owing and file the election with the Minister on or before the filing-due date of the CRIC for its taxation year in which ends the fiscal period of the qualifying Canadian partnership that includes that time. Late-filed elections (2.12) Where an election referred to in paragraph (2.11)(d) was not made on or before the day on or before which the election was required by that paragraph to be made, the election is deemed to have been made on that day if the election is made on or before the day that is three years after that day and the penalty in respect of the election is paid by the CRIC when the election is made. Penalty for late-filed election (2.13) For the purposes of subsection (2.12), the penalty in respect of an election referred to in that subsection is the amount equal to the product obtained by multiplying $100 by the number of months each of which is a month all or part of which is during the period commencing with the day on or before which the election is required by paragraph (2.11)(d) to be made and ending on the day the election is made. Partnerships (2.14) For purposes of this subsection, subsection (2.11), section 17.1 and subsection 18(5), (a) a qualifying Canadian partnership , at any time in respect of a CRIC, means a partnership each member of which is, at that time, the CRIC or another corporation resident in Canada to which the CRIC is, at that time, related; and (b) a person or partnership that is (or is deemed by this paragraph to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership. Mergers (2.15) For the purposes of subsections (2.11) and (2.14), (a) if there has been an amalgamation to which subsection 87(1) applies, the new corporation referred to in that subsection is deemed to be the same corporation as, and a continuation of, each predecessor corporation referred to in that subsection; and (b) if there has been a winding-up to which subsection 88(1) applies, the parent referred to in that subsection is deemed to be the same corporation as, and a continuation of, the subsidiary referred to in that subsection. Back-to-back arrangement — application (2.16) Subsection (2.17) applies at any time if (a) at that time, a person or partnership (referred to in this subsection and subsections (2.17) to (2.192) as the intended borrower ) has an amount outstanding as or on account of a debt or other obligation to pay an amount (in this subsection and subsections (2.17) to (2.192) referred to as the shareholder debt ) to a person or partnership (in this subsection and subsections (2.17) to (2.192) referred to as the immediate funder ); (b) subsection (2) would not, in the absence of this subsection and subsection (2.17), apply to the shareholder debt; (c) at that time, a funder, in respect of a particular funding arrangement, (i) has an amount outstanding as or on account of a debt or other obligation to pay an amount (other than a debt or other obligation to pay an amount to which subsection (2) applies o