I-3 - Taxation Act

Section 1091.2 Disposition versions

2010-04-20

1091.2. In this Title,

“Canadian investor”, at any time in relation to a person not resident in Canada, means a person that the person not resident in Canada knows, or ought to know after reasonable inquiry, is at that time resident in Canada;

“Canadian service provider” means a corporation or a trust resident in Canada or a Canadian partnership;

“designated investment services” provided to a person or partnership means any one or more of the services described in the following paragraphs:

(a)  investment management or advice with respect to qualified investments, regardless of whether the manager has discretionary authority to buy or sell;

(b)  purchasing or selling qualified investments, exercising rights incidental to the ownership of qualified investments such as voting, conversion or exchange;

(c)  entering into or executing agreements with respect to services referred to in paragraph b;

(d)  investment administration services, such as receiving, delivering and having custody of investments, calculating and reporting investment values, receiving subscription amounts from, and paying distributions and proceeds of disposition to, investors in or beneficiaries of the person or partnership, record keeping, accounting and reporting to the person or partnership and its investors and beneficiaries; and

(e)  if the service is provided to a corporation, trust or partnership the only undertaking of which is the investing of its funds in qualified investments, marketing shares of its capital stock or interests in itself to investors not resident in Canada;

“promoter” of a corporation, trust or partnership means a particular person or partnership that initiates or directs the founding, organization or substantial reorganization of the corporation, trust or partnership, and a person or partnership that is affiliated with the particular person or partnership;

“qualified investment” of a person or partnership means

(a)  a share of the capital stock of a corporation, or an interest in a partnership, trust, entity, organization or fund, other than a share or an interest

i.  that is either a security not listed on a designated stock exchange, or listed on such a stock exchange, if the person or partnership, together with all persons with whom the person or partnership does not deal at arm’s length, owns 25% or more of the issued shares of any class of the capital stock of the corporation or of the total value of interests in the partnership, trust, entity, organization or fund, as the case may be, and

ii.  of which more than 50% of the fair market value is derived from one or more of the following properties:

(1)  an immovable situated in Canada,

(2)  Canadian resource property, and

(3)  timber resource property;

(b)  indebtedness;

(c)  annuities;

(d)  commodities or commodities futures purchased or sold, directly or indirectly in any manner whatever, on a commodities or commodities futures exchange;

(e)  currency; and

(f)  options, interests, rights and forward and futures agreements in respect of property described in any of paragraphs a to e or this paragraph, and agreements under which obligations are derived from interest rates, from the price of property described in any of those paragraphs, from payments made in respect of such a property by its issuer to holders of the property, or from an index reflecting a composite measure of such rates, prices or payments, whether or not the agreement creates any rights in or obligations regarding the referenced property itself.

2001, c. 53, s. 246; 2004, c. 8, s. 189; 2010, c. 5, s. 187.

2006-03-01

1091.2. In this Title,

“Canadian investor”, at any time in relation to a person not resident in Canada, means a person that the person not resident in Canada knows, or ought to know after reasonable inquiry, is at that time resident in Canada;

“Canadian service provider” means a corporation or a trust resident in Canada or a Canadian partnership;

“designated investment services” provided to a person or partnership means any one or more of the services described in the following paragraphs:

(a)  investment management or advice with respect to qualified investments, regardless of whether the manager has discretionary authority to buy or sell;

(b)  purchasing or selling qualified investments, exercising rights incidental to the ownership of qualified investments such as voting, conversion or exchange;

(c)  entering into or executing agreements with respect to services referred to in paragraph b;

(d)  investment administration services, such as receiving, delivering and having custody of investments, calculating and reporting investment values, receiving subscription amounts from, and paying distributions and proceeds of disposition to, investors in or beneficiaries of the person or partnership, record keeping, accounting and reporting to the person or partnership and its investors and beneficiaries; and

(e)  if the service is provided to a corporation, trust or partnership the only undertaking of which is the investing of its funds in qualified investments, marketing shares of its capital stock or interests in itself to investors not resident in Canada;

“promoter” of a corporation, trust or partnership means a particular person or partnership that initiates or directs the founding, organization or substantial reorganization of the corporation, trust or partnership, and a person or partnership that is affiliated with the particular person or partnership;

“qualified investment” of a person or partnership means

(a)  a share of the capital stock of a corporation, or an interest in a partnership, trust, entity, organization or fund, other than a share or an interest

i.  that is either a security not listed on a Canadian stock exchange nor on a foreign stock exchange, or listed on such a stock exchange, if the person or partnership, together with all persons with whom the person or partnership does not deal at arm’s length, owns 25% or more of the issued shares of any class of the capital stock of the corporation or of the total value of interests in the partnership, trust, entity, organization or fund, as the case may be, and

ii.  of which more than 50% of the fair market value is derived from one or more of the following properties:

(1)  an immovable situated in Canada,

(2)  Canadian resource property, and

(3)  timber resource property;

(b)  indebtedness;

(c)  annuities;

(d)  commodities or commodities futures purchased or sold, directly or indirectly in any manner whatever, on a commodities or commodities futures exchange;

(e)  currency; and

(f)  options, interests, rights and forward and futures agreements in respect of property described in any of paragraphs a to e or this paragraph, and agreements under which obligations are derived from interest rates, from the price of property described in any of those paragraphs, from payments made in respect of such a property by its issuer to holders of the property, or from an index reflecting a composite measure of such rates, prices or payments, whether or not the agreement creates any rights in or obligations regarding the referenced property itself.

2001, c. 53, s. 246; 2004, c. 8, s. 189.