Income Tax Act — I-3.3 18.2
gulations . ( bail exclu ) exempt interest and financing expenses of a taxpayer for a taxation year means the total of all amounts, each of which would, if the description of A in the definition interest and financing expenses were read without reference to “exempt interest and financing expenses”, be included in interest and financing expenses of the taxpayer for that year, and that is incurred in respect of a borrowing or other financing (referred to in this definition as the “borrowing”), if (a) the taxpayer or a partnership of which the taxpayer is a member entered into an agreement with a public sector authority to design, build and finance — or to design, build, finance, maintain and operate — property that the public sector authority, or another public sector authority, owns or has a leasehold interest in or right to acquire; (b) the borrowing was entered into in respect of the agreement; (c) it can reasonably be considered that all or substantially all of the amount is directly or indirectly borne by a public sector authority referred to in paragraph (a); and (d) the amount was paid or payable to (i) a person that deals at arm’s length with the taxpayer or the partnership of which the taxpayer is a member, or (ii) a particular person that does not deal at arm’s length with the taxpayer or the partnership of which the taxpayer is a member if it may reasonably be considered that all or substantially all of the amount paid or payable to the particular person was paid or payable by the particular person to one or more persons that deal at arm’s length with the taxpayer or the partnership of which the taxpayer is a member. ( dépenses d’intérêts et de financement exonérées ) financial holding corporation , for a taxation year, means a corporation (other than a corporation described in any of paragraphs (a) to (f) of the definition financial institution group entity ) if, throughout the year, (a) the fair market value of the capital stock of the corporation is primarily attributable to any combination of shares or indebtedness of one or more entities described in any of paragraphs (a) to (f) of the definition financial institution group entity that are controlled by the corporation; or (b) the corporation is incorporated under the Insurance Companies Act and shares of the capital stock of the corporation are listed on a designated stock exchange. ( société de portefeuille financière ) financial institution group entity means a taxpayer that at any time in a taxation year is (a) a bank; (b) a credit union; (c) an insurance corporation; (d) an entity authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; (e) an entity whose principal business consists of one or more of (i) the lending of money to persons with whom the entity deals at arm’s length, (ii) the purchasing of debt obligations issued by persons with whom the entity deals at arm’s length, or (iii) activities which principally give rise to amounts described in paragraphs (a) to (d) of the description of A in the definition interest and financing revenues and are principally conducted with persons with whom the entity deals at arm’s length; (f) a particular entity that is an eligible group entity in respect of an entity described in any of paragraphs (a) to (e), if the particular entity, or a partnership of which the particular entity is a member and from which the particular entity primarily derives its income, (i) is authorized under provincial securities laws to engage in, and primarily engages in, the business of (A) dealing in securities, or (B) providing portfolio management, investment advice, fund administration or fund management; or (ii) primarily engages in the business of providing portfolio management, investment advice, fund administration or fund management, including any services connected to those activities, in respect of real estate; or (g) a particular entity (other than a financ