Income Tax Act — I-3.3 237.4
Definitions 237.4 (1) The following definitions apply in this section. advisor , in respect of a notifiable transaction, means each person who provides, directly or indirectly in any manner whatever, any assistance or advice with respect to creating, developing, planning, organizing or implementing the notifiable transaction, to another person (including any person who enters into the notifiable transaction for the benefit of another person). ( conseiller ) fee , in respect of a notifiable transaction, has the same meaning as in subsection 237.3(1). ( honoraires ) notifiable transaction , at any time, means (a) a transaction that is the same as, or substantially similar to, a transaction that is designated at that time by the Minister under subsection (3); and (b) a transaction in a series of transactions that is the same as, or substantially similar to, a series of transactions that is designated at that time by the Minister under subsection (3). ( opération à signaler ) person includes a partnership. ( personne ) promoter , in respect of a notifiable transaction, has the same meaning as in subsection 237.3(1). ( promoteur ) tax benefit has the same meaning as in subsection 245(1). ( avantage fiscal ) tax treatment has the same meaning as in subsection 237.3(1). ( traitement fiscal ) transaction has the same meaning as in subsection 245(1). ( opération ) Interpretation – substantially similar (2) For the purposes of the definition notifiable transaction in subsection (1), the term “substantially similar” (a) includes any transaction, or series of transactions, in respect of which a person is expected to obtain the same or similar types of tax consequences (as defined in subsection 245(1)) and that is either factually similar or based on the same or similar tax strategy; and (b) is to be interpreted broadly in favour of disclosure. Designation of notifiable transactions (3) The Minister may designate for the purposes of this section, with the concurrence of the Minister of Finance, in such manner as the Minister considers appropriate, transactions or series of transactions. Requirement to file return (4) An information return in prescribed form and containing prescribed information in respect of a notifiable transaction must be filed with the Minister by (a) every person for whom a tax benefit results, or for whom a tax benefit is expected to result based on the person’s tax treatment of the notifiable transaction, from (i) the notifiable transaction, (ii) any other notifiable transaction that is part of a series of transactions that includes the notifiable transaction, or (iii) a series of transactions that includes the notifiable transaction; (b) every person who has entered into, for the benefit of a person described in paragraph (a), the notifiable transaction; (c) every advisor or promoter in respect of the notifiable transaction; and (d) every person who is not dealing at arm’s length with an advisor or promoter described in paragraph (c) and who is or was entitled, either immediately or in the future and either absolutely or contingently, to a fee in respect of the notifiable transaction. Application (5) For the purpose of subsection (4), if any particular person that is an employer or a partnership is required to file an information return in respect of a notifiable transaction under paragraph (4)(c) or (d), the filing of an information return required under those paragraphs by the particular person in respect of the notifiable transaction in prescribed form and manner is deemed to have been made by each employee or partner of the particular person in respect of the particular transaction. Due diligence (6) Paragraphs (4)(a) and (b) do not apply to a person in respect of a notifiable transaction if the person has exercised the degree of care, diligence and skill in determining whether the transaction is a notifiable transaction that a reasonably prudent person would have exercised in comparable circumstances. Reasonabl