I-3 - Taxation Act

Section 1029.8.36.125 Disposition versions

2010-04-20

1029.8.36.125. (Repealed).

2001, c. 51, s. 189; 2010, c. 5, s. 158.

2006-03-01

1029.8.36.125. In this division,

“associated group” has the meaning assigned by section 1029.8.36.126;

“foreign investment fund” means an investment fund approved by a regulating authority or securities supervisory agency, the shares of which were not distributed in Canada in the taxation year or fiscal period of a corporation or partnership, as the case may be, during which a qualified solicitation expenditure in respect of the fund was paid;

“foreign investment fund management” means the management of a part or all of the assets of a foreign investment fund;

“foreign investment fund promoter” means an entity that

(a)  is not resident in Canada; and

(b)  carries on activities that consist, in particular, in the design and creation of investment funds, including research, the preparation and distribution of a prospectus for the funds, the registration of the funds with regulating authorities or securities supervisory agencies, the marketing of the funds and the organization of the distribution of the shares of the funds;

“qualified gross income” of a corporation or partnership operating an international financial centre, for a taxation year or fiscal period, from a qualified international financial transaction means the gross revenue of the corporation or partnership from that transaction for the part, included in the taxation year or fiscal period, of the period specified in subparagraph ii of paragraph b of the definition of “qualified international financial transaction” in respect of that transaction;

“qualified international financial transaction” in respect of a foreign investment fund, carried out by a corporation or partnership operating an international financial centre, means foreign investment fund management that

(a)  is related to a solicitation activity engaged in at an earlier time by the corporation or partnership;

(b)  is carried out by the corporation or partnership, after 14 March 2000 and before 1 January 2005, in the course of the operations of the international financial centre, for or on behalf of a foreign investment fund promoter with which the corporation or partnership is dealing at arm’s length,

i.  under a written agreement for the supply of services, and

ii.  within a period of three years beginning on the effective date of the agreement referred to in subparagraph i; and

(c)  constitutes a type of activity that was at no time carried on for or on behalf of the promoter referred to in paragraph b, by the corporation or partnership or by a person not dealing at arm’s length with the corporation or partnership, during that part of the taxation year of the corporation, prior to the effective date of the agreement referred to in subparagraph i of paragraph b, in which the agreement became effective or the three preceding taxation years, or, as the case may be, during that part of the fiscal period of the partnership, prior to the effective date of the agreement, in which the agreement became effective or the three preceding fiscal periods;

“qualified solicitation expenditure” in respect of a foreign investment fund, made by a corporation or partnership operating an international financial centre means, for a taxation year or fiscal period, a lump sum, paid in the taxation year or fiscal period but after 14 March 2000 and before 1 January 2002 by the corporation or partnership in the course of the operations of the international financial centre to a promoter of a foreign investment fund, in respect of which a certificate issued by the Minister of Finance certifies that the amount corresponds to the costs charged by such a promoter to grant to the corporation or partnership a mandate to manage a foreign investment fund;

“tax-exempt taxpayer” means

(a)  a person who is exempt from tax under Book VIII, other than an insurer referred to in paragraph k of section 998 not so exempt from tax on the totality of its taxable income by reason of section 999.0.1;

(b)  a corporation that would be exempt from tax under section 985 but for section 192; or

(c)  a trust one of the capital or income beneficiaries of which is a person mentioned in paragraph a or b.

2001, c. 51, s. 189.