I-3 - Taxation Act

Section 116 Disposition versions

2015-10-21

116. Section 113 does not apply where the loan was made to

(a)  a corporation resident in Canada or a partnership each member of which is such a corporation;

(b)  a person not resident in Canada, if the lender is also such a person; or

(c)  a person that does not deal at arm’s length with, or is affiliated with, a shareholder of a corporation, if that person is a foreign affiliate of the corporation or a foreign affiliate of a person resident in Canada that does not deal at arm’s length with that corporation.

In addition, section 113 does not apply where the debtor is a person or partnership described in subparagraph a or c of the first paragraph or a person not resident in Canada, if the creditor is also such a person.

1972, c. 23, s. 105; 1978, c. 26, s. 28; 1984, c. 15, s. 25; 1994, c. 22, s. 82; 1997, c. 3, s. 71; 2015, c. 21, s. 120.

2006-03-01

116. Section 113 does not apply where the loan was made to

(a)  a corporation resident in Canada or a partnership each member of which is such a corporation;

(b)  a person not resident in Canada, if the lender is also such a person; or

(c)  a person that does not deal at arm’s length with a shareholder of a corporation, if that person is a foreign affiliate of the corporation or a foreign affiliate of a person resident in Canada that does not deal at arm’s length with that corporation.

In addition, section 113 does not apply where the debtor is a person or partnership described in subparagraph a or c of the first paragraph or a person not resident in Canada, if the creditor is also such a person.

1972, c. 23, s. 105; 1978, c. 26, s. 28; 1984, c. 15, s. 25; 1994, c. 22, s. 82; 1997, c. 3, s. 71.