Income Tax Act — I-3.3 163
s deemed to be a member of the other partnership. Partnership liable to penalty (2.9) If a partnership is liable to a penalty under paragraph (2)(i), subsection (2.4) or (2.901) or section 163.2, 237.1, 237.3 or 237.4, sections 152, 158 to 160.1, 161 and 164 to 167 and Division J apply, with any changes that the circumstances require, in respect of the penalty as if the partnership were a corporation. Penalty — COVID-19 (2.901) Every eligible entity that is deemed by subsection 125.7(6) to have an amount of qualifying revenue — for a current reference period for a qualifying period — is liable to a penalty equal to 25% of the amount that would be deemed by subsection 125.7(2) or (2.1) to have been an overpayment by the eligible entity during that qualifying period if that amount were calculated by reference to the information provided in the application filed pursuant to paragraph (a) of the definition qualifying entity in subsection 125.7(1) or paragraph (a) of the definition qualifying renter in subsection 125.7(1), as the case may be. Penalty — COVID-19 (2.902) Every eligible entity that is deemed by subsection 125.7(6.1) to have an amount of total current period remuneration for a qualifying period is liable to a penalty equal to 25% of the amount that would be deemed by subsection 125.7(2.2) to have been an overpayment by the eligible entity during that qualifying period if that amount were calculated by reference to the information provided in the application filed pursuant to paragraph (a) of the definition qualifying recovery entity in subsection 125.7(1). Application to non-resident trusts (2.91) For the purposes of this subsection, paragraph 163(2.4)(d) and subsection 163(2.5), (a) a non-resident trust is deemed to be a controlled foreign affiliate of each beneficiary of which the trust is a controlled foreign affiliate for the purpose of section 233.4; (b) the trust is deemed to be a non-resident corporation having a capital stock of a single class divided into 100 issued shares; (c) each beneficiary under the trust is deemed to own at any time the number of the issued shares of the corporation that is equal to the proportion of 100 that (i) the fair market value at that time of the beneficiary’s beneficial interest in the trust is of (ii) the fair market value at that time of all beneficial interests in the trust; and (d) the cost amount to a beneficiary at any time of a share of the corporation is deemed to be equal to the amount determined by the formula A/B where A is the fair market value at that time of the beneficiary’s beneficial interest in the trust, and B is the number of shares deemed under paragraph 163(2.91)(c) to be owned at that time by the beneficiary in respect of the corporation. Burden of proof in respect of penalties (3) Where, in an appeal under this Act, a penalty assessed by the Minister under this section or section 163.2 is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister. Effect of carryback of losses etc. (4) In determining under subsection 163(2.1) the understatement of income for a taxation year of a person, the following amounts shall be deemed not to be deductible or excludable in computing the person’s income for the year: (a) any amount that may be deducted under section 41 in respect of the person’s listed-personal-property loss for a subsequent taxation year; (b) any amount that may be excluded from the person’s income because of section 49 in respect of the exercise of any option in a subsequent taxation year; (b.1) any amount that may be deducted under subsection 147.2(4) in computing the person’s income for the year because of the application of subsection 147.2(6) as a result of the person’s death in the subsequent taxation year; and (c) any amount that may be deducted in computing the person’s income for the year because of an election made under paragraph 164(6)(c) or 164(6)(d) in a subsequent taxation year by the per