Income Tax Act — I-3.3 251.1
Definition of affiliated persons 251.1 (1) For the purposes of this Act, affiliated persons , or persons affiliated with each other, are (a) an individual and a spouse or common-law partner of the individual; (b) a corporation and (i) a person by whom the corporation is controlled, (ii) each member of an affiliated group of persons by which the corporation is controlled, and (iii) a spouse or common-law partner of a person described in subparagraph (i) or (ii); (c) two corporations, if (i) each corporation is controlled by a person, and the person by whom one corporation is controlled is affiliated with the person by whom the other corporation is controlled, (ii) one corporation is controlled by a person, the other corporation is controlled by a group of persons, and each member of that group is affiliated with that person, or (iii) each corporation is controlled by a group of persons, and each member of each group is affiliated with at least one member of the other group; (d) a corporation and a partnership, if the corporation is controlled by a particular group of persons each member of which is affiliated with at least one member of a majority-interest group of partners of the partnership, and each member of that majority-interest group is affiliated with at least one member of the particular group; (e) a partnership and a majority-interest partner of the partnership; (f) two partnerships, if (i) the same person is a majority-interest partner of both partnerships, (ii) a majority-interest partner of one partnership is affiliated with each member of a majority-interest group of partners of the other partnership, or (iii) each member of a majority-interest group of partners of each partnership is affiliated with at least one member of a majority-interest group of partners of the other partnership; (g) a person and a trust, if the person (i) is a majority-interest beneficiary of the trust, or (ii) would, if this subsection were read without reference to this paragraph, be affiliated with a majority-interest beneficiary of the trust; and (h) two trusts, if a contributor to one of the trusts is affiliated with a contributor to the other trust and (i) a majority-interest beneficiary of one of the trusts is affiliated with a majority-interest beneficiary of the other trust, (ii) a majority-interest beneficiary of one of the trusts is affiliated with each member of a majority-interest group of beneficiaries of the other trust, or (iii) each member of a majority-interest group of beneficiaries of each of the trusts is affiliated with at least one member of a majority-interest group of beneficiaries of the other trust. Affiliation where amalgamation or merger (2) Where at any time 2 or more corporations (in this subsection referred to as the “predecessors”) amalgamate or merge to form a new corporation, the new corporation and any predecessor are deemed to have been affiliated with each other where they would have been affiliated with each other immediately before that time if (a) the new corporation had existed immediately before that time; and (b) the persons who were the shareholders of the new corporation immediately after that time had been the shareholders of the new corporation immediately before that time. Definitions (3) The definitions in this subsection apply in this section. affiliated group of persons means a group of persons each member of which is affiliated with every other member. ( groupe de personnes affiliées ) beneficiary , under a trust, includes a person beneficially interested in the trust. ( bénéficiaire ) contributor , to a trust, means a person who has at any time made a loan or transfer of property, either directly or indirectly, in any manner whatever, to or for the benefit of the trust other than, if the person deals at arm’s length with the trust at that time and is not immediately after that time a majority-interest beneficiary of the trust, (a) a loan made at a reasonable rate of interest; or (b) a tr