I-3 - Taxation Act

Section 985.1.1 Disposition versions

2009-05-15

985.1.1. The charitable foundation to which paragraph f of section 985.1 refers means a charitable foundation that, at a particular time, meets the following conditions:

(a)  more than 50% of its directors, trustees, officers or like officials deal at arm’s length with each other and with

i.  each of the other directors, trustees, officers and like officials of the foundation,

ii.  each person described in subparagraph i or ii of paragraph b, and

iii.  each member of a group of persons, other than the State, Her Majesty in right of Canada or Her Majesty in right of a province (other than Québec), a municipality, another registered charity that is not a private foundation, and any club, society or association described in section 996, who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described in subparagraph i of paragraph b; and

(b)  the charitable foundation is not, at the particular time, and would not at the particular time be, if the foundation were a corporation, controlled, directly or indirectly in any manner whatever,

i.  by a person, other than the State, Her Majesty in right of Canada or Her Majesty in right of a province (other than Québec), a municipality, another registered charity that is not a private foundation, and any club, society or association described in section 996

(1)  who immediately after the particular time, has contributed to the foundation amounts that are, in total, greater than 50% of the capital of the foundation immediately after the particular time, and

(2)  who immediately after the person’s last contribution at or before the particular time, had contributed to the foundation amounts that were, in total, greater than 50% of the capital of the foundation immediately after the making of that last contribution, or

ii.  by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph i.

1986, c. 15, s. 155; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 48; 1998, c. 16, s. 216; 2000, c. 5, s. 293; 2001, c. 7, s. 169; 2009, c. 5, s. 403.

2006-03-01

985.1.1. The charitable foundation contemplated in paragraph f of section 985.1 is a charitable foundation of which,

(a)  where the foundation has been registered after 15 February 1984, has begun after that date to be deemed registered in accordance with subsection 2 of section 985.5 or has been designated as a private foundation or charitable organization pursuant to section 985.4.1, as it read before being repealed, or section 985.4.3, more than 50% of the directors, officers, trustees or like officials deal with each other and with each of the other directors, officers, trustees, or officials at arm’s length, and not more than 50% of the capital contributed or otherwise paid in to the foundation has been so contributed or otherwise paid in by one person or members of a group of such persons who do not deal with each other at arm’s length;

(b)  in any other case, more than 50% of the directors or trustees deal with each other and with each of the other directors or trustees at arm’s length, and not more than 75% of the capital contributed or otherwise paid in to the foundation has been so contributed or otherwise paid in by one person or by a group of persons who do not deal with each other at arm’s length.

For the purposes of subparagraph a of the first paragraph, “person” and “members of a group” do not include the State, Her Majesty in right of Canada or a province, other than Québec, a municipality, a club, society or association that is exempt from tax under section 996, or another registered charity that is not a private foundation.

1986, c. 15, s. 155; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 48; 1998, c. 16, s. 216; 2000, c. 5, s. 293; 2001, c. 7, s. 169.