Income Tax Act — I-3.3 247
Definitions 247 (1) The definitions in this subsection apply in this section. actual conditions , in respect of a transaction or series of transactions, means the conditions that actually apply between any of the participants in the transaction or series. ( conditions réelles ) arm’s length allocation [Repealed, 2026, c. 3, s. 93] arm’s length conditions , in respect of a transaction or series of transactions, means the conditions that would have applied had the participants been dealing at arm’s length in comparable circumstances, including the possibility that no transaction or series, or a different transaction or series, would have been concluded had the participants been dealing at arm’s length in comparable circumstances. ( conditions de pleine concurrence ) arm’s length transfer price [Repealed, 2026, c. 3, s. 93] documentation-due date for a taxation year or fiscal period of a person or partnership means (a) in the case of a person, the person’s filing-due date for the year; or (b) in the case of a partnership, the day on or before which a return is required by section 229 of the Income Tax Regulations to be filed in respect of the period or would be required to be so filed if that section applied to the partnership. ( date limite de production ) economically relevant characteristics , in respect of a transaction or series of transactions, includes (a) to the extent that the following contractual terms are not inconsistent with the actual conduct of the participants in the transaction or series, (i) the contractual terms of the transaction or series, and (ii) the contractual terms of each other transaction or series that is relevant to the transaction or series and that involves at least one of the participants or any other member of the multinational enterprise group; (b) the actual conduct of the participants in the transaction or series, and in particular the functions performed by those participants, taking into account (i) assets used and risks assumed, (ii) how those functions relate to the wider generation of value by the multinational enterprise group to which the participants belong, (iii) circumstances surrounding the transaction or series, and (iv) industry practices; (c) the characteristics of any property transferred or service provided; (d) the economic circumstances of the participants and of the market in which the participants operate; and (e) the business strategies pursued by the participants. ( caractéristiques économiquement pertinentes ) multinational enterprise group means the group made up of the taxpayer or the partnership, or member of the partnership, and the non-resident person (or a partnership of which the non-resident person is a member) who are participants in a transaction or series of transactions referred to in subsection (2), as well as any other person that does not deal at arm’s length with at least one of the participants. ( groupe d’entreprises multinationales ) qualifying cost contribution arrangement means an arrangement under which reasonable efforts are made by the participants in the arrangement to establish a basis for contributing to, and to contribute on that basis to, the cost of producing, developing or acquiring any property, or acquiring or performing any services, in proportion to the benefits which each participant is reasonably expected to derive from the property or services, as the case may be, as a result of the arrangement. ( arrangement admissible de participation au coût ) tax benefit [Repealed, 2026, c. 3, s. 93] transaction includes an arrangement or event. ( opération ) transfer price [Repealed, 2026, c. 3, s. 93] transfer pricing capital adjustment of a taxpayer for a taxation year means the total of (a) all amounts each of which is (i) 1/2 of the amount, if any, by which the adjusted cost base to the taxpayer of a capital property (other than a depreciable property) is reduced in the year because of an adjustment made under subsection (2.02), or (ii) [Re