Income Tax Act — I-3.3 233.8
Country-by-country report — definitions 233.8 (1) The following definitions apply in this section. business entity means (a) a person (other than an individual that is not a trust) or partnership; and (b) a business that is carried on through a permanent establishment, if a separate financial statement for the business is prepared for financial reporting, regulatory, tax reporting or internal management control purposes. ( entité ) consolidated financial statements means financial statements in which the assets, liabilities, income, expenses and cash flows of the members of a group are presented as those of a single economic entity. ( états financiers consolidés ) constituent entity , of an MNE group, means (a) any business entity of the MNE group that (i) is included in the consolidated financial statements of the MNE group for financial reporting purposes, or (ii) would be required to be included if equity interests in any of the business entities in the MNE group were traded on a public securities exchange; and (b) any business entity that is excluded from the MNE group’s consolidated financial statements solely because of size or materiality. ( entité constitutive ) excluded MNE group means two or more business entities that meet the conditions in paragraphs (a) and (b) of the definition MNE group , if, with respect to a particular fiscal year of the MNE group, it has a total consolidated group revenue of less than €750 million during the fiscal year immediately preceding the particular fiscal year, as reflected in its consolidated financial statements for the preceding fiscal year. ( groupe d’entreprises multinationales exclu ) fiscal year , of an MNE group, means an annual accounting period with respect to which the ultimate parent entity of the MNE group prepares its financial statements. ( exercice ) multinational enterprise group or MNE group means two or more business entities, if (a) they are either required to prepare consolidated financial statements for financial reporting purposes under applicable accounting principles or would be so required if equity interests in any of the business entities were traded on a public securities exchange; (b) one of the business entities is resident in a particular jurisdiction and (i) another business entity resides in a different jurisdiction, or (ii) is subject to tax in a different jurisdiction with respect to a business carried on by it through a business entity — described in paragraph (b) of the definition business entity — in that other jurisdiction; and (c) they are not an excluded MNE group. ( groupe d’entreprises multinationales ) permanent establishment has the meaning assigned by regulation. ( établissement stable ) qualifying competent authority agreement means an agreement that (a) is between authorized representatives of those jurisdictions that are parties to a listed international agreement; and (b) requires the automatic exchange of country-by-country reports between the party jurisdictions. ( accord admissible ) reporting fiscal year means a fiscal year, if the financial and operational results of the fiscal year are reflected in the country-by-country report. ( exercice déclarable ) surrogate parent entity means a constituent entity of an MNE group that has been appointed by the MNE group — in substitution for the ultimate parent entity — to file the country-by-country report on behalf of the MNE group, if one or more of the conditions in subparagraph (3)(b)(ii) applies. ( entité mère de substitution ) systemic failure means, with respect to a jurisdiction, that the jurisdiction has a qualifying competent authority agreement in effect with Canada, but (a) has suspended automatic exchange (for reasons other than those that are in accordance with the terms of the agreement); or (b) has persistently failed to automatically provide country-by-country reports in its possession — in respect of MNE groups that have constituent entities in Canada — to Canada. ( défai