Income Tax Act — I-3.3 95
Definitions for this Subdivision 95 (1) In this Subdivision, active business of a foreign affiliate of a taxpayer means any business carried on by the foreign affiliate other than (a) an investment business carried on by the foreign affiliate, (b) a business that is deemed by subsection (2) to be a business other than an active business carried on by the foreign affiliate, or (c) a non-qualifying business of the foreign affiliate; ( entreprise exploitée activement ) antecedent corporation of a particular corporation means (a) a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation to which subsection 87(11) applied and by which the particular corporation was formed, (b) a predecessor corporation (within the meaning of subsection 87(1)) of the corporation (referred to in this definition as the “first amalco”) that was formed on an amalgamation of the predecessor corporation and another corporation, where (i) shares of the capital stock of the predecessor corporation that were not owned by the other corporation, or by a corporation of which the other corporation is a subsidiary wholly-owned corporation, were exchanged on the amalgamation for shares of the capital stock of the first amalco that were, during the series of transactions or events that includes the amalgamation, redeemed, acquired or cancelled by the first amalco for money, (ii) the first amalco was a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation to which subsection 87(11) applied and by which the particular corporation was formed, and (iii) the amalgamation referred to in subparagraph (i) occurred in a series of transactions or events that included the amalgamation referred to in subparagraph (ii), (c) a corporation that was wound-up into the particular corporation in a winding-up to which subsection 88(1) applied, or (d) an antecedent corporation of an antecedent corporation of the particular corporation; ( société antécédente ) calculating currency for a taxation year of a foreign affiliate of a taxpayer means (a) the currency of the country in which the foreign affiliate is resident at the end of the taxation year, or (b) any currency that the taxpayer demonstrates to be reasonable in the circumstances; ( monnaie de calcul ) controlled foreign affiliate , at any time, of a taxpayer resident in Canada, means (a) a foreign affiliate of the taxpayer that is, at that time, controlled by the taxpayer, or (b) a foreign affiliate of the taxpayer that would, at that time, be controlled by the taxpayer if the taxpayer owned (i) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the taxpayer, (ii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with the taxpayer, (iii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the persons (each of whom is referred to in this definition as a “relevant Canadian shareholder”), in any set of persons not exceeding four (which set of persons shall be determined without reference to the existence of or the absence of any relationship, connection or action in concert between those persons), who (A) are resident in Canada, (B) are not the taxpayer or a person described in subparagraph (ii), and (C) own, at that time, shares of the capital stock of the foreign affiliate, and (iv) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with any relevant Canadian shareholder; ( société étrangère affiliée contrôlée ) designated acquired corporation of a taxpayer means a particular antecedent corporation of the taxpayer if (a) the taxpayer or another antecedent corporation of the taxpayer acquired control of (i) the particular antecedent corporation, or (ii) a corporation (referred to in t