Income Tax Act — I-3.3 212
 arm’s length with that taxpayer, if it can reasonably be concluded that one of the main purposes of entering into the debt or other obligation was (I) to reduce or avoid the tax payable under this Part in respect of the particular amount referred to in paragraph (3.9)(a), or (II) to avoid the application of subsection (3.91). Back-to-back arrangement — character substitution (3.93) If this subsection applies in respect of a debt or other obligation to pay an amount (under which a particular relevant licensor is a borrower) or shares of the capital stock of a particular relevant licensor, then, for the purposes of subsections (3.9) to (3.94), (a) the debt or other obligation or the holding of the shares, as the case may be, is deemed to be a relevant royalty arrangement; (b) the creditor or shareholder, as the case may be, in respect of the relevant royalty arrangement, is deemed to be a relevant licensor, in respect of the relevant royalty arrangement; and (c) the relevant royalty arrangement is deemed to be a specified royalty arrangement in respect of which the conditions in paragraph (3.9)(b) are met. Back-to-back arrangement — definitions (3.94) The following definitions apply in this subsection and subsections (3.9) to (3.93). lease, licence or similar agreement means an agreement under which a rent, royalty or similar payment is or could be made. ( convention de bail, licence ou autre convention semblable ) relevant licensor , in respect of a relevant royalty arrangement, means (a) if the relevant royalty arrangement is described in paragraph (a) of the definition relevant royalty arrangement , the immediate licensor referred to in paragraph (3.9)(a); (b) if the relevant royalty arrangement is described in paragraph (b) of the definition relevant royalty arrangement , a person or partnership that is the lessor, the licensor or the grantor of a right similar to a right granted under a lease or licence, the assignor or the seller, as the case may be; or (c) a person or partnership that does not deal at arm’s length with a relevant licensor referred to in paragraph (a) or (b). ( cédant de licence considéré ) relevant royalty arrangement means (a) the particular lease, licence or similar agreement referred to in paragraph (3.9)(a); and (b) each specified royalty arrangement that (i) meets, in respect of a relevant royalty arrangement, the conditions in clause (3.9)(b)(i)(A) or (B), and (ii) is an arrangement in respect of which the person or partnership referred to in subparagraph (3.9)(b)(ii) meets the conditions in clause (3.9)(b)(ii)(A) or (B). ( mécanisme de redevance considéré ) rent, royalty or similar payment means a rent, royalty or similar payment described in paragraph (1)(d) and, for greater certainty, includes any payment described in subparagraphs (1)(d)(i) to (v) but does not include any payment described in subparagraphs (1)(d)(vi) to (xii). ( loyer, redevance ou paiement semblable ) specified royalty arrangement means a lease, license or similar agreement, an assignment or an instalment sale. ( mécanisme de redevance déterminé ) ultimate licensor means a relevant licensor (other than the immediate licensor), in respect of a relevant royalty arrangement, that is not, under a relevant royalty arrangement, (a) a lessee, a licensee or a grantee of a right similar to a right granted under a lease or licence; (b) an assignee; or (c) a purchaser. ( cédant de licence ultime ) Interpretation of management or administration fee or charge (4) For the purpose of paragraph 212(1)(a), management or administration fee or charge does not include any amount paid or credited or deemed by Part I to have been paid or credited to a non-resident person as, on account or in lieu of payment of, or in satisfaction of, (a) a service performed by the non-resident person if, at the time the non-resident person performed the service (i) the service was performed in the ordinary course of a business carried on by the non-resident person