Income Tax Regulations — 5907
5, at the time established in paragraph (b), (ii) the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of any amount referred to in subparagraph (ii) or (iv) of the description of A in the definition hybrid surplus , (iii) the total of all amounts each of which is an amount determined by the formula C × D ÷ E where C is the amount that was prescribed under paragraph 5900(1)(c.1) to have been the foreign tax applicable to the portion (referred to in this subparagraph as the “relevant portion”) of a dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, a dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation, D is the amount included under subparagraph (iv) of the description of A in the definition hybrid surplus , in respect of the relevant portion of the dividend received, in computing the subject affiliate’s hybrid surplus, and E is the relevant portion of the dividend received, or (iv) the amount by which the subject affiliate’s hybrid underlying tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1) or (1.2), B is the total of those of the following amounts that apply in respect of the period: (i) the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of an amount referred to in subparagraph (ii) or (iii) of the description of B in the definition hybrid surplus , (ii) the hybrid underlying tax applicable to any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(a.1) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(b) to have been paid out of the subject affiliate’s hybrid surplus in respect of the corporation before that time, (iii) each amount that is required under section 5902 to be included under this subparagraph in the period and before the particular time, or (iv) the amount by which the subject affiliate’s hybrid underlying tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1) or (1.2); ( montant intrinsèque d’impôt hybride ) hybrid underlying tax applicable , in respect of a corporation to a whole dividend paid at any time on the shares of any class of the capital stock of a foreign affiliate of the corporation by the affiliate, means the proportion of the hybrid underlying tax of the affiliate at that time in respect of the corporation that (a) the portion of the whole dividend deemed to have been paid out of the affiliate’s hybrid surplus in respect of the corporation is of (b) the affiliate’s hybrid surplus at that time in respect of the corporation; ( montant intrinsèque d’impôt hybride applicable ) loss , of a foreign affiliate of a taxpayer resident in Canada for a taxation year of the affiliate from an active business, means (a) in the case of an active business carried on by it in a country, the amount of its loss for the year from the active business carried on in the country computed by applying the provisions of paragraph (a) of the definition earnings respecting the computation of earnings from that active business carried on in that country, with any modifications that the circumstances require, and (b) in any other case, the total of all amounts each of which is an amount of a loss that would be required under paragraph 95(2)(a) of the Act to be included in computing the affiliate’s income or loss from an active business for the year if that loss were computed taking into account the