Excise Tax Act — E-15 217.1
Qualifying taxpayer 217.1 (1) For the purposes of this Division, a person is a qualifying taxpayer throughout a specified year of the person if (a) the person is a financial institution at any time in the specified year; and (b) the person, at any time in the specified year (i) is resident in Canada, (ii) has a qualifying establishment in Canada, (iii) where a majority of the persons having beneficial ownership of the person’s property in Canada are resident in Canada, carries on, engages in or conducts an activity in Canada, or (iv) is a prescribed person or a person of a prescribed class. Outlay made, or expense incurred, outside Canada (2) For the purposes of this Division, an outlay made, or expense incurred, outside Canada includes any amount representing (a) an outlay made, or expense incurred, by a qualifying taxpayer in respect of (i) property that is, in whole or in part, transferred outside Canada to the qualifying taxpayer, (ii) property, the possession or use of which is, in whole or in part, given or made available outside Canada to the qualifying taxpayer, or (iii) a service that is performed, in whole or in part, outside Canada for the benefit of the qualifying taxpayer or is rendered, in whole or in part, outside Canada to the qualifying taxpayer; (b) an adjustment (within the meaning of subsection 247(2) of the Income Tax Act ) to an outlay or expense described in paragraph (a); (c) an expenditure or purchase in respect of a reportable transaction (as defined in section 233.1 of the Income Tax Act ) in respect of which a qualifying taxpayer is required under that section to file with the Minister a return in prescribed form containing prescribed information, or would be so required if the qualifying taxpayer carried on a business in Canada and that Act applied to the qualifying taxpayer; (d) in the case of a qualifying taxpayer that is resident in Canada, qualifying compensation of an employee paid in a specified year by the qualifying taxpayer if (i) in the specified year, a duty is performed by the employee outside Canada (in this subsection referred to as a “duty performed outside Canada”) at a qualifying establishment of the qualifying taxpayer or of a person related to the qualifying taxpayer, and (ii) it is not the case that all or substantially all of the duties performed outside Canada by the employee in the specified year are performed elsewhere than at such qualifying establishments; and (e) in the case of a qualifying taxpayer that is not resident in Canada, (i) an allocation by the qualifying taxpayer of an outlay or expense as an amount in respect of a business carried on in Canada by the qualifying taxpayer for the purpose of computing the qualifying taxpayer’s income under the Income Tax Act , or an amount that would be such an allocation if (A) the qualifying taxpayer’s income were computed in accordance with that Act, (B) anything done by the qualifying taxpayer through a qualifying establishment in Canada of the qualifying taxpayer were the carrying on of a business in Canada by the qualifying taxpayer, and (C) that Act applied to the qualifying taxpayer, (ii) an outlay or expense that may reasonably be regarded under the Income Tax Act as an amount that is applicable to a qualifying establishment in Canada of the qualifying taxpayer, or that would reasonably be so regarded if the qualifying establishment were a permanent establishment for purposes of that Act, the qualifying taxpayer carried on a business in Canada and that Act applied to the qualifying taxpayer, and (iii) qualifying compensation of an employee paid in a specified year by the qualifying taxpayer. Series of transactions (3) For the purposes of this Division, if there is a reference to a series of transactions, the series is deemed to include any related transactions completed in contemplation of the series. Internal charge (4) For the purposes of this Division, any part of an amount in respect of a transaction or dealing betw