Income Tax Act — I-3.3 270
Definitions 270 (1) The following definitions apply in this Part. account holder means (a) the person listed or identified as the holder of a financial account by the financial institution that maintains the account, other than a person (other than a financial institution) holding a financial account for the benefit of, or on behalf of, another person as agent, custodian, nominee, signatory, investment advisor or intermediary; and (b) in the case of a cash value insurance contract or an annuity contract, (i) any person entitled to access the cash value or change the beneficiary, (ii) if no person can access the cash value or change the beneficiary, (A) any person named as the owner in the contract, and (B) any person with a vested entitlement to payment under the terms of the contract, and (iii) upon maturity of the cash value insurance contract or annuity contract, each person entitled to receive a payment under the contract. ( titulaire de compte ) active NFE means, at any time, a non-financial entity that meets any of the following criteria: (a) less than 50% of the NFE’s gross income for the preceding fiscal period is passive income and less than 50% of the assets held by the NFE during the preceding fiscal period are assets that produce or are held for the production of passive income; (b) either (i) interests in the NFE are regularly traded on an established securities market, or (ii) the NFE is a related entity of an entity interests in which are regularly traded on an established securities market; (c) the NFE is (i) a governmental entity, (ii) an international organization, (iii) a central bank, or (iv) an entity wholly owned by one or more entities described in subparagraphs (i) to (iii); (d) both (i) all or substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more of its subsidiaries that engage in trades or businesses other than the business of a financial institution, and (ii) the NFE does not function as (and is not represented or promoted to the public as) an investment fund, including (A) a private equity fund, (B) a venture capital fund, (C) a leveraged buyout fund, and (D) an investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes; (e) the NFE (i) is not yet operating a business, (ii) has no prior operating history, (iii) is investing capital into assets with the intent to operate a business other than that of a financial institution, and (iv) was initially organized no more than 24 months prior to that time; (f) the NFE has not been a financial institution in any of the past five years and is in the process of liquidating its assets or is reorganizing with the intent to continue or recommence operations in a business other than that of a financial institution; (g) the NFE primarily engages in financing and hedging transactions with, or for, related entities that are not financial institutions, and does not provide financing or hedging services to any entity that is not a related entity, provided that the group of those related entities is primarily engaged in a business other than that of a financial institution; and (h) the NFE meets all of the following requirements: (i) it (A) is established and operated in its jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic or educational purposes, or (B) is established and operated in its jurisdiction of residence and it is a professional organization, business league, chamber of commerce, labour organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion 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 asset