Income Tax Act — I-3.3 163.2
Definitions 163.2 (1) The definitions in this subsection apply in this section. culpable conduct means conduct, whether an act or a failure to act, that (a) is tantamount to intentional conduct; (b) shows an indifference as to whether this Act is complied with; or (c) shows a wilful, reckless or wanton disregard of the law. ( conduite coupable ) entity includes an association, a corporation, a fund, a joint venture, an organization, a partnership, a syndicate and a trust. ( entité ) excluded activity , in respect of a false statement, means the activity of (a) promoting or selling (whether as principal or agent or directly or indirectly) an arrangement, an entity, a plan, a property or a scheme (in this definition referred to as the “arrangement”) where it can reasonably be considered that (i) subsection 66(12.68) applies to the arrangement, (ii) the definition tax shelter in subsection 237.1(1) applies to a person’s interest in the arrangement, or (iii) one of the main purposes for a person’s participation in the arrangement is to obtain a tax benefit; or (b) accepting (whether as principal or agent or directly or indirectly) consideration in respect of the promotion or sale of an arrangement. ( activité exclue ) false statement includes a statement that is misleading because of an omission from the statement. ( faux énoncé ) gross compensation of a particular person at any time, in respect of a false statement that could be used by or on behalf of another person, means all amounts to which the particular person, or any person not dealing at arm’s length with the particular person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the statement. ( rétribution brute ) gross entitlements of a person at any time, in respect of a planning activity or a valuation activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. ( droits à paiement ) participate includes (a) to cause a subordinate to act or to omit information; and (b) to know of, and to not make a reasonable attempt to prevent, the participation by a subordinate in an act or an omission of information. ( participer ) person includes a partnership. ( personne ) planning activity includes (a) organizing or creating, or assisting in the organization or creation of, an arrangement, an entity, a plan or a scheme; and (b) participating, directly or indirectly, in the selling of an interest in, or the promotion of, an arrangement, an entity, a plan, a property or a scheme. ( activité de planification ) subordinate , in respect of a particular person, includes any other person over whose activities the particular person has direction, supervision or control whether or not the other person is an employee of the particular person or of another person, except that, if the particular person is a member of a partnership, the other person is not a subordinate of the particular person solely because the particular person is a member of the partnership. ( subalterne ) tax benefit means a reduction, avoidance or deferral of tax or other amount payable under this Act or an increase in a refund of tax or other amount under this Act. ( avantage fiscal ) valuation activity of a person means anything done by the person in determining the value of a property or a service. ( activité d’évaluation ) Penalty for misrepresentations in tax planning arrangements (2) Every person who makes or furnishes, participates in the making of or causes another person to make or furnish a statement that the person knows, or would reasonably be expected to know but for circumstances amounting to culpable conduct, is a false statement that could be used by another person (in subsections (6) and (15) referred to as the “other person”) for a purpose