I-3 - Taxation Act

Section 580.4 Disposition versions

2021-06-02

580.4. Where the conditions of section 580.2 are not met at a particular time in respect of a particular foreign affiliate of a taxpayer resident in Canada, section 580.3 applies in respect of the particular foreign affiliate at that time if the taxpayer and all specified corporations have made a valid election under paragraph c of subsection 1.4 of section 91 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) to have subsection 1.2 of that section 91 apply in respect of the disposition that is referred to in paragraph b of subsection 1.4 of that section 91 and that occurs immediately after the particular time.

For the purposes of the first paragraph, a specified corporation is a corporation that at or immediately after the particular time meets the following conditions:

(a)  the corporation is resident in Canada;

(b)  the corporation does not deal at arm’s length with the taxpayer; and

(c)  the particular foreign affiliate is a foreign affiliate of the corporation, or of a partnership of which the corporation is, directly or indirectly through one or more other partnerships, a member.

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph c of subsection 1.4 of section 91 of the Income Tax Act.

2021, c. 14, s. 47.