I-3, r. 1 - Regulation respecting the Taxation Act

Section 92.5r3 Disposition versions

2012-09-01

92.5R3. For the purposes of section 92.5 of the Act, each of the following debt obligations, other than a debt obligation that is an indexed debt obligation, in respect of which a taxpayer has acquired an interest is a prescribed debt obligation:

(a)  a debt obligation in respect of which no interest is stipulated to be payable in respect of its principal amount;

(b)  a debt obligation in respect of which the proportion of the payments of principal to which the taxpayer is entitled is not equal to the proportion of the payments of interest to which the taxpayer is entitled;

(c)  a debt obligation, other than one described in subparagraph a or b, in respect of which it can be determined, at the time the taxpayer acquired the interest therein, that the maximum amount of interest payable thereon in a year ending after that time is less than the maximum amount of interest payable thereon in a subsequent year; and

(d)  a debt obligation, other than one described in any of subparagraphs a to c, in respect of which the amount of interest to be paid in respect of any taxation year is, under the terms and conditions of the obligation, dependent on a contingency existing after the year.

In the first paragraph, a debt obligation includes all of the issuer’s obligations to pay principal and interest under that obligation.

s. 92.5R3; O.C. 7-87, s. 2; O.C. 1076-88, s. 3; O.C. 1466-98, s. 10; O.C. 1454-99, s. 6; O.C. 134-2009, s. 1.