I-3 - Taxation Act

Section 127.16 Disposition versions

2017-12-07

127.16. In this division,

“Canadian corporation” means a corporation resident in Canada;

“qualifying Canadian partnership”, at any time, in respect of a Canadian corporation, means a partnership each member of which is, at that time, the Canadian corporation or another corporation resident in Canada to which the Canadian corporation is, at that time, related.

For the purposes of this division,

(a)  either of the following is a pertinent loan or indebtedness:

i.  a pertinent loan or indebtedness within the meaning of section 113.1, or

ii.  a pertinent loan or indebtedness within the meaning of subsection 11 of section 212.3 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)); and

(b)  any person who is (or is deemed under this subparagraph to be) a member of a partnership that is a member of a particular partnership is deemed to be a member of the particular partnership.

Where a loan or indebtedness is a pertinent loan or indebtedness within the meaning of subparagraph ii of subparagraph a of the second paragraph, Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph c of subsection 11 of section 212.3 of the Income Tax Act in respect of the loan or indebtedness.

2017, c. 29, s. 37.