Excise Tax Act — E-15 156
d to the same corporation or specified partnership, the two persons are closely related to each other for the purposes of this section. Interest in a partnership (1.3) For the purposes of this section, a person, or a group of persons, holds, at any time, all or substantially all of the interest in a partnership only if, at that time, (a) the person, or every person in the group of persons, is a member of the partnership; and (b) the person, or the members of the group collectively, as the case may be, is or are (i) entitled to receive at least 90% of (A) if the partnership had income for the last fiscal period (within the meaning of the Income Tax Act ) of the partnership that ended before that time (or, if the partnership’s first fiscal period includes that time, for that period), the total of all amounts each of which is the share of that income from all sources that each member of the partnership is entitled to receive, or (B) if the partnership had no income for the last fiscal period or the first fiscal period referred to in clause (A), as the case may be, the total of all amounts each of which is the share of the income of the partnership that each member of the partnership would be entitled to receive if the income of the partnership from each source were one dollar, (ii) entitled to receive at least 90% of the total amount that would be paid to all members of the partnership (otherwise than as a share of any income of the partnership) if it were wound up at that time, and (iii) able to direct the business and affairs of the partnership or would be so able if no secured creditor had any security interest in an interest in, or the property of, the partnership. Election for nil consideration (2) For the purposes of this Part, if at any time after 2014 a person that is a specified member of a qualifying group files an election made jointly by the person and another specified member of the group, every taxable supply made between the person and the other specified member at a time when the election is in effect is deemed to have been made for no consideration. Elections filed before 2015 (2.01) For the purposes of this section, if an election made under this section has been filed by any person before January 1, 2015, the election is deemed never to have been filed. Non-application (2.1) Subsection (2) does not apply to (a) a supply by way of sale of real property; (b) a supply of property, or of a service, that is not acquired by the recipient for consumption, use or supply exclusively in the course of commercial activities of the recipient; or (c) a supply that is not a supply of property that meets the conditions set out in paragraph (f) of the definition temporary member in subsection (1), if the recipient of the supply is a temporary member. Cessation (3) An election under subsection (2) made jointly by a particular member of a qualifying group and another member of the group ceases to have effect on the earliest of (a) the day on which the particular member ceases to be a specified member of the group, (b) the day on which the other member ceases to be a specified member of the group, and (c) the day on which the election is revoked jointly by those members. Form of election and revocation (4) An election under subsection (2) made jointly by a particular specified member of a qualifying group and another specified member of the group and a revocation of the election by those specified members shall (a) be made in prescribed form containing prescribed information and specify the day (in this subsection referred to as the “effective day”) on which the election or revocation is to become effective; and (b) be filed with the Minister in prescribed manner on or before (i) the particular day that is the earlier of (A) the day on or before which the particular specified member must file a return under Division V for the reporting period of the particular specified member that includes the effective day, and (B) the day on or