I-3 - Taxation Act

Section 127.14 Disposition versions

2006-03-01

127.14. Section 127.6 does not apply to a corporation resident in Canada for a taxation year of the corporation in respect of an amount owing to the corporation by a person not resident in Canada if

(a)  the corporation is not related to the person not resident in Canada throughout the period in the year during which the amount owing remains outstanding;

(b)  the amount owing arose in respect of goods sold or services provided to the person not resident in Canada by the corporation in the ordinary course of the business carried on by the corporation; and

(c)  the terms and conditions in respect of the amount owing are such that persons dealing at arm’s length would have been willing to enter into them at the time that they were entered into.

2001, c. 53, s. 41.