C-8.3 - Act respecting international financial centres

Section 7 Disposition versions

2015-10-21

7. In this Act, subject to sections 7.1 and 7.2, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person or partnership resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person or partnership not resident in Canada, or for a person or partnership resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraph 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person or partnership not resident in Canada;

(5)  making loans of money to a person or partnership not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Business Activity Act (S.B.C. 2004, chapter 49) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of any of the following operations or transactions to which not more than one party is or includes a person or partnership resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person or partnership not resident in Canada, or for or on behalf of a person or partnership resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person or partnership not resident in Canada, or for a person or partnership resident in Canada if the securities to which the services relate are qualified securities;

(15)  providing factoring services, where the receivables are payable by a person or partnership not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons or partnerships not resident in Canada, or of persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the urban agglomeration of Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities, other than those that arise from back office activities referred to in this paragraph, for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b or c,

(b)  a financial corporation or another corporation or partnership, in relation to a financial transaction carried out by a financial corporation and to which not more than one party is or includes a person or partnership resident in Canada,

(c)  a financial corporation or another person or partnership, in relation to an insurance contract arising from the carrying on of a business of the insured and under which the premium is attributable exclusively or almost exclusively,

i.  in the case of a damage insurance contract, to the occurrence of a risk outside Canada, and

ii.  in the case of a contract of insurance of persons, to the coverage of a person not resident in Canada or of a person resident in Canada who is an expatriate because of employment outside Canada, or

(d)  a person or partnership that is neither a corporation or partnership that operates an international financial centre nor a financial corporation, in relation to a qualified international financial transaction carried out by or on behalf of that person or partnership;

(23)  handling documentary collections in respect of any of the following operations or transactions to which not more than one party is or includes a person or partnership resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(24)  engaging in activities relating to the deposit of money or fiduciary services, or in dealer or adviser activities, that are carried on with investor immigrants in the course of their participation in the Programme des immigrants investisseurs pour l’aide aux entreprises (chapter I-16.0.1, r. 3), and that are directly related to the requirements of the program; and

(25)  performing a discounting operation by a corporation or partnership in respect of a letter of credit or a bill, if the operation is performed

(a)  in the course of a transaction in which the corporation or partnership is dealing at arm’s length with the debtor or transferor of the letter of credit or of the bill, and has no right of recourse against them, and

(b)  consecutively or incidentally, in the case of a letter of credit, to a qualified international financial transaction described in paragraph 7 and, in the case of a bill, to the participation of a corporation or partnership operating an international financial centre in a qualified international financial transaction described in paragraph 23.

1999, c. 86, s. 7; 2001, c. 51, s. 317; 2002, c. 40, s. 1; 2004, c. 21, s. 7; 2005, c. 23, s. 3; 2006, c. 13, s. 5; 2007, c. 12, s. 4; 2010, c. 5, s. 2; 2015, c. 21, s. 32.

2011-11-01

7. In this Act, subject to sections 7.1 and 7.2, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person or partnership resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person or partnership not resident in Canada, or for a person or partnership resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraph 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person or partnership not resident in Canada;

(5)  making loans of money to a person or partnership not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of any of the following operations or transactions to which not more than one party is or includes a person or partnership resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person or partnership not resident in Canada, or for or on behalf of a person or partnership resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person or partnership not resident in Canada, or for a person or partnership resident in Canada if the securities to which the services relate are qualified securities;

(15)  providing factoring services, where the receivables are payable by a person or partnership not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons or partnerships not resident in Canada, or of persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the urban agglomeration of Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities, other than those that arise from back office activities referred to in this paragraph, for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b or c,

(b)  a financial corporation or another corporation or partnership, in relation to a financial transaction carried out by a financial corporation and to which not more than one party is or includes a person or partnership resident in Canada,

(c)  a financial corporation or another person or partnership, in relation to an insurance contract arising from the carrying on of a business of the insured and under which the premium is attributable exclusively or almost exclusively,

i.  in the case of a damage insurance contract, to the occurrence of a risk outside Canada, and

ii.  in the case of a contract of insurance of persons, to the coverage of a person not resident in Canada or of a person resident in Canada who is an expatriate because of employment outside Canada, or

(d)  a person or partnership that is neither a corporation or partnership that operates an international financial centre nor a financial corporation, in relation to a qualified international financial transaction carried out by or on behalf of that person or partnership;

(23)  handling documentary collections in respect of any of the following operations or transactions to which not more than one party is or includes a person or partnership resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(24)  engaging in activities relating to the deposit of money or fiduciary services, or in dealer or adviser activities, that are carried on with investor immigrants in the course of their participation in the Programme des immigrants investisseurs pour l’aide aux entreprises (chapter I-16.0.1, r. 3), and that are directly related to the requirements of the program; and

(25)  performing a discounting operation by a corporation or partnership in respect of a letter of credit or a bill, if the operation is performed

(a)  in the course of a transaction in which the corporation or partnership is dealing at arm’s length with the debtor or transferor of the letter of credit or of the bill, and has no right of recourse against them, and

(b)  consecutively or incidentally, in the case of a letter of credit, to a qualified international financial transaction described in paragraph 7 and, in the case of a bill, to the participation of a corporation or partnership operating an international financial centre in a qualified international financial transaction described in paragraph 23.

1999, c. 86, s. 7; 2001, c. 51, s. 317; 2002, c. 40, s. 1; 2004, c. 21, s. 7; 2005, c. 23, s. 3; 2006, c. 13, s. 5; 2007, c. 12, s. 4; 2010, c. 5, s. 2.

2010-04-20

7. In this Act, subject to sections 7.1 and 7.2, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person or partnership resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person or partnership not resident in Canada, or for a person or partnership resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraph 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person or partnership not resident in Canada;

(5)  making loans of money to a person or partnership not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of any of the following operations or transactions to which not more than one party is or includes a person or partnership resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person or partnership not resident in Canada, or for or on behalf of a person or partnership resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person or partnership not resident in Canada, or for a person or partnership resident in Canada if the securities to which the services relate are qualified securities;

(15)  providing factoring services, where the receivables are payable by a person or partnership not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons or partnerships not resident in Canada, or of persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons or partnerships not resident in Canada, or to persons or partnerships resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the urban agglomeration of Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities, other than those that arise from back office activities referred to in this paragraph, for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b or c,

(b)  a financial corporation or another corporation or partnership, in relation to a financial transaction carried out by a financial corporation and to which not more than one party is or includes a person or partnership resident in Canada,

(c)  a financial corporation or another person or partnership, in relation to an insurance contract arising from the carrying on of a business of the insured and under which the premium is attributable exclusively or almost exclusively,

i.  in the case of a damage insurance contract, to the occurrence of a risk outside Canada, and

ii.  in the case of a contract of insurance of persons, to the coverage of a person not resident in Canada or of a person resident in Canada who is an expatriate because of employment outside Canada, or

(d)  a person or partnership that is neither a corporation or partnership that operates an international financial centre nor a financial corporation, in relation to a qualified international financial transaction carried out by or on behalf of that person or partnership;

(23)  handling documentary collections in respect of any of the following operations or transactions to which not more than one party is or includes a person or partnership resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(24)  engaging in activities relating to the deposit of money or fiduciary services, or in dealer or adviser activities, that are carried on with investor immigrants in the course of their participation in the Programme des immigrants investisseurs pour l’aide aux entreprises adopted by Order in Council 701-2000 dated 7 June 2000, and that are directly related to the requirements of the program; and

(25)  performing a discounting operation by a corporation or partnership in respect of a letter of credit or a bill, if the operation is performed

(a)  in the course of a transaction in which the corporation or partnership is dealing at arm’s length with the debtor or transferor of the letter of credit or of the bill, and has no right of recourse against them, and

(b)  consecutively or incidentally, in the case of a letter of credit, to a qualified international financial transaction described in paragraph 7 and, in the case of a bill, to the participation of a corporation or partnership operating an international financial centre in a qualified international financial transaction described in paragraph 23.

1999, c. 86, s. 7; 2001, c. 51, s. 317; 2002, c. 40, s. 1; 2004, c. 21, s. 7; 2005, c. 23, s. 3; 2006, c. 13, s. 5; 2007, c. 12, s. 4; 2010, c. 5, s. 2.

2007-11-07

7. In this Act, subject to sections 7.1 and 7.2, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person not resident in Canada, or for a person resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraph 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person not resident in Canada;

(5)  making loans of money to a person not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person not resident in Canada, or for or on behalf of a person resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person not resident in Canada, or for a person resident in Canada if the securities to which the services relate are qualified securities ;

(15)  providing factoring services, where the receivables are payable by a person not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons not resident in Canada, or of persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the urban agglomeration of Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities, other than those that arise from back office activities referred to in this paragraph, for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b or c,

(b)  a financial corporation or another corporation or partnership, in relation to a financial transaction carried out by a financial corporation and to which not more than one party is or includes a person resident in Canada,

(c)  a financial corporation or another person or partnership, in relation to an insurance contract arising from the carrying on of a business of the insured and under which the premium is attributable exclusively or almost exclusively,

i.  in the case of a damage insurance contract, to the occurrence of a risk outside Canada, and

ii.  in the case of a contract of insurance of persons, to the coverage of a person not resident in Canada or of a person resident in Canada who is an expatriate because of employment outside Canada, or

(d)  a person or partnership that is neither a corporation or partnership that operates an international financial centre nor a financial corporation, in relation to a qualified international financial transaction carried out by or on behalf of that person or partnership;

(23)  handling documentary collections in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(24)  engaging in activities relating to the deposit of money or fiduciary services, or in dealer or adviser activities, that are carried on with investor immigrants in the course of their participation in the Programme des immigrants investisseurs pour l’aide aux entreprises adopted by Order in Council 701-2000 dated 7 June 2000, and that are directly related to the requirements of the program; and

(25)  performing a discounting operation by a corporation or partnership in respect of a letter of credit or a bill, if the operation is performed

(a)  in the course of a transaction in which the corporation or partnership is dealing at arm’s length with the debtor or transferor of the letter of credit or of the bill, and has no right of recourse against them, and

(b)  consecutively or incidentally, in the case of a letter of credit, to a qualified international financial transaction described in paragraph 7 and, in the case of a bill, to the participation of a corporation or partnership operating an international financial centre in a qualified international financial transaction described in paragraph 23.

1999, c. 86, s. 7; 2001, c. 51, s. 317; 2002, c. 40, s. 1; 2004, c. 21, s. 7; 2005, c. 23, s. 3; 2006, c. 13, s. 5; 2007, c. 12, s. 4.

2006-06-13

7. In this Act, subject to sections 7.1 and 7.2, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person not resident in Canada, or for a person resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraphs 1 and 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person not resident in Canada;

(5)  making loans of money to a person not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person not resident in Canada, or for or on behalf of a person resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person not resident in Canada, or for a person resident in Canada if the securities to which the services relate are qualified securities ;

(15)  providing factoring services, where the receivables are payable by a person not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons not resident in Canada, or of persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the urban agglomeration of Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b,

(b)  a financial corporation, in relation to a financial transaction or a transaction in relation to insurance carried out by the financial corporation and to which not more than one party is or includes a person resident in Canada, or

(c)  a person or partnership not described in subparagraph a or b, in relation to a qualified international financial transaction carried out by or on behalf of that person or partnership;

(23)  handling documentary collections in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(24)  engaging in activities relating to the deposit of money or fiduciary services, or in dealer or adviser activities, that are carried on with investor immigrants in the course of their participation in the Programme des immigrants investisseurs pour l’aide aux entreprises adopted by Order in Council 701-2000 dated 7 June 2000, and that are directly related to the requirements of the program; and

(25)  performing a discounting operation by a corporation or partnership in respect of a letter of credit or a bill, if the operation is performed

(a)  in the course of a transaction in which the corporation or partnership is dealing at arm’s length with the debtor or transferor of the letter of credit or of the bill, and has no right of recourse against them, and

(b)  consecutively or incidentally, in the case of a letter of credit, to a qualified international financial transaction described in paragraph 7 and, in the case of a bill, to the participation of a corporation or partnership operating an international financial centre in a qualified international financial transaction described in paragraph 23.

1999, c. 86, s. 7; 2001, c. 51, s. 317; 2002, c. 40, s. 1; 2004, c. 21, s. 7; 2005, c. 23, s. 3; 2006, c. 13, s. 5.

2005-06-17

7. In this Act, subject to section 7.1, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person not resident in Canada, or for a person resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraphs 1 and 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person not resident in Canada;

(5)  making loans of money to a person not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person not resident in Canada, or for or on behalf of a person resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person not resident in Canada, or for a person resident in Canada if the securities to which the services relate are qualified securities ;

(15)  providing factoring services, where the receivables are payable by a person not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons not resident in Canada, or of persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the territory of Ville de Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b,

(b)  a financial corporation, in relation to a financial transaction or a transaction in relation to insurance carried out by the financial corporation and to which not more than one party is or includes a person resident in Canada, or

(c)  a person or partnership not described in subparagraph a or b, in relation to a qualified international financial transaction carried out by or on behalf of that person or partnership;

(23)  handling documentary collections in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(24)  engaging in activities relating to the deposit of money or fiduciary services, or in dealer or adviser activities, that are carried on with investor immigrants in the course of their participation in the Programme des immigrants investisseurs pour l’aide aux entreprises adopted by Order in Council 701-2000 dated 7 June 2000, and that are directly related to the requirements of the program; and

(25)  performing a discounting operation by a corporation or partnership in respect of a letter of credit or a bill, if the operation is performed

(a)  in the course of a transaction in which the corporation or partnership is dealing at arm’s length with the debtor or transferor of the letter of credit or of the bill, and has no right of recourse against them, and

(b)  consecutively or incidentally, in the case of a letter of credit, to a qualified international financial transaction described in paragraph 7 and, in the case of a bill, to the participation of a corporation or partnership operating an international financial centre in a qualified international financial transaction described in paragraph 23.

1999, c. 86, s. 7; 2001, c. 51, s. 317; 2002, c. 40, s. 1; 2004, c. 21, s. 7; 2005, c. 23, s. 3.

2004-11-03

7. In this Act, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person not resident in Canada, or for a person resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraphs 1 and 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person not resident in Canada;

(5)  making loans of money to a person not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person not resident in Canada, or for or on behalf of a person resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person not resident in Canada, or for a person resident in Canada if the securities to which the services relate are qualified securities ;

(15)  providing factoring services, where the receivables are payable by a person not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons not resident in Canada, or of persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the territory of Ville de Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b,

(b)  a financial corporation, in relation to a financial transaction or a transaction in relation to insurance carried out by the financial corporation and to which not more than one party is or includes a person resident in Canada, or

(c)  a person or partnership not described in subparagraph a or b, in relation to a qualified international financial transaction carried out by or on behalf of that person or partnership;

(23)  handling documentary collections in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(24)  engaging in activities relating to the deposit of money or fiduciary services, or in dealer or adviser activities, that are carried on with investor immigrants in the course of their participation in the Programme des immigrants investisseurs pour l’aide aux entreprises adopted by Order in Council 701-2000 dated 7 June 2000, and that are directly related to the requirements of the program; and

(25)  performing a discounting operation by a corporation or partnership in respect of a letter of credit or a bill, if the operation is performed

(a)  in the course of a transaction in which the corporation or partnership is dealing at arm’s length for the purposes of Part I of the Taxation Act with the debtor or transferor of the letter of credit or of the bill, and has no right of recourse against them, and

(b)  consecutively or incidentally, in the case of a letter of credit, to a qualified international financial transaction described in paragraph 7 and, in the case of a bill, to the participation of a corporation or partnership operating an international financial centre in a qualified international financial transaction described in paragraph 23.

1999, c. 86, s. 7; 2001, c. 51, s. 317; 2002, c. 40, s. 1; 2004, c. 21, s. 7.

2002-10-17

7. In this Act, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person not resident in Canada, or for a person resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraphs 1 and 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person not resident in Canada;

(5)  making loans of money to a person not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person not resident in Canada, or for or on behalf of a person resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person not resident in Canada, or for a person resident in Canada if the securities to which the services relate are qualified securities ;

(15)  providing factoring services, where the receivables are payable by a person not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons not resident in Canada, or of persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the territory of Ville de Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b,

(b)  a financial corporation, in relation to a financial transaction or a transaction in relation to insurance carried out by the financial corporation and to which not more than one party is or includes a person resident in Canada, or

(c)  a person not described in subparagraph a or b, in relation to a qualified international financial transaction carried out by that person;

(23)  handling documentary collections in respect of any of the following operations or transactions to which not more than one party is or includes a person resident in Canada :

(a)  an operation or transaction relating to property or goods, and

(b)  an operation or transaction relating to the provision of services.

1999, c. 86, s. 7; 2001, c. 51, s. 317; 2002, c. 40, s. 1.

2001-12-20

7. In this Act, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person resident in Canada;

(3)  securities advising and portfolio management carried on by an adviser for a person not resident in Canada, or for a person resident in Canada if the advising or management, as the case may be, pertains to a security that would be a qualified security if the definition of that expression in section 4 were read without reference in paragraphs 1 and 2 to “the acquisition of”, or if the securities portfolio were established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(4)  making or accepting deposits of money on behalf of a person not resident in Canada;

(5)  making loans of money to a person not resident in Canada if the funds are used outside Canada;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered;

(7)  accepting or issuing letters of credit in respect of an operation or transaction relating to property or goods to which not more than one party is or includes a person resident in Canada;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada;

(11)  providing qualified services in relation to a financial product for or on behalf of a person not resident in Canada, or for or on behalf of a person resident in Canada if the financial product to which the services relate is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada;

(14)  providing fiduciary services for a person not resident in Canada;

(15)  providing factoring services, where the receivables are payable by a person not resident in Canada;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(18)  providing administration, in relation to the shares of a qualified investment fund in respect of persons not resident in Canada, or of persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons not resident in Canada, or to persons resident in Canada if the fund is established for the purpose of being subject, exclusively or almost exclusively, to foreign exposure, provided the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the territory of Ville de Montréal;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada;

(22)  carrying on back office activities for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b,

(b)  a financial corporation, in relation to a financial transaction or a transaction in relation to insurance carried out by the financial corporation and to which not more than one party is or includes a person resident in Canada, or

(c)  a person not described in subparagraph a or b, in relation to a qualified international financial transaction carried out by that person.

1999, c. 86, s. 7; 2001, c. 51, s. 317.

1999-12-20

7. In this Act, “qualified international financial transaction” means

(1)  trading in outstanding securities or a securities distribution, carried out by a dealer, except an operation referred to in paragraph 9 ;

(2)  operating a clearing house in relation to a transaction to which not more than one party is or includes a person resident in Canada ;

(3)  securities advising and portfolio management carried on by an adviser for a person not resident in Canada, or for a person resident in Canada if the securities are in relation to a foreign entity ;

(4)  making or accepting deposits of money on behalf of a person not resident in Canada ;

(5)  making loans of money to a person not resident in Canada if the funds are used outside Canada ;

(6)  lending or borrowing money by corporations or partnerships each operating an international financial centre, if the money is lent in the course of the operations of the lender’s international financial centre, and borrowed in the course of the operations of the borrower’s international financial centre, and, for the purposes of this paragraph, a corporation registered under the International Financial Business (Tax Refund) Act (Revised Statutes of British Columbia, 1996, chapter 235) is deemed to be a corporation that operates an international financial centre whose operations pertain to the activities for which it is so registered ;

(7)  accepting or issuing letters of credit in respect of an operation or transaction relating to property or goods to which not more than one party is or includes a person resident in Canada ;

(8)  financing or refinancing, by means of a bill of exchange between corporations that are financial institutions having no establishment in Canada, within the meaning of sections 12 to 16.2 of the Taxation Act (chapter I‐3), or between international financial centres, an operation or transaction in which neither the purchaser nor the vendor is resident in Canada and in which the property or goods involved are neither located in nor in any way connected with Canada and do not, by reason of the operation or transaction, constitute Canadian exports or imports ;

(9)  executing foreign exchange transactions, including the purchase, sale or exercise of a currency option or currency futures contract, except the purchase or sale of bank notes or traveller’s cheques ;

(10)  providing financial packaging services in respect of a project to be carried out exclusively or almost exclusively outside Canada ;

(11)  providing qualified services in relation to a financial product for or on behalf of a person not resident in Canada, or for or on behalf of a person resident in Canada if the securities to which the services relate are qualified securities ;

(12)  providing services as a damage insurance broker within the meaning of section 6 of the Act respecting the distribution of financial products and services (chapter D‐9.2), where the services provided permit the conclusion of a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada and arising from the carrying on of a business of the insured ;

(13)  reinsuring a risk under a damage insurance contract under which the premium is entirely attributable to the occurrence of a risk outside Canada ;

(14)  providing fiduciary services for a person not resident in Canada ;

(15)  providing factoring services, where the receivables are payable by a person not resident in Canada ;

(16)  providing leasing services to a lessee not resident in Canada, for the use of property outside Canada ;

(17)  organizing a qualified investment fund the shares of which are to be sold to persons not resident in Canada, or to persons resident in Canada if the fund is established to invest exclusively or almost exclusively in qualified securities ;

(18)  providing the administration, in relation to the shares of a qualified investment fund in respect of persons not resident in Canada, or in respect of persons resident in Canada if the fund is established to invest exclusively or almost exclusively in qualified securities ;

(19)  providing the management of a qualified investment fund the shares of which are sold to persons not resident in Canada, or to persons resident in Canada if the fund is established to invest exclusively or almost exclusively in qualified securities ;

(20)  engaging in the distribution of the shares of a qualified investment fund to persons not resident in Canada or to persons resident in Canada if the fund is established to invest exclusively or almost exclusively in qualified securities, provided that the organization and management of the fund and the administration, where related to the shares of the fund, are carried out exclusively or almost exclusively within the territory of Ville de Montréal ;

(21)  providing cash management in respect of activities carried on exclusively or almost exclusively outside Canada ;

(22)  carrying on back office activities for or on behalf of

(a)  a corporation or partnership that operates an international financial centre, in relation to a qualified international financial transaction carried out by the corporation or partnership, except back office activities referred to in subparagraph b,

(b)  a financial corporation, in relation to a financial transaction or a transaction in relation to insurance carried out by the financial corporation and to which not more than one party is or includes a person resident in Canada, or

(c)  a person not described in subparagraph a or b, in relation to a qualified international financial transaction carried out by that person.

1999, c. 86, s. 7.