I-3 - Taxation Act

Section 1029.8.36.102 Disposition versions

2009-05-15

1029.8.36.102. (Repealed).

1999, c. 86, s. 85; 2001, c. 51, s. 228; 2004, c. 21, s. 421; 2009, c. 5, s. 455.

2006-03-01

1029.8.36.102. In this division,

“eligible member” of a partnership means an individual who, but for the individual’s being a member of the partnership, could reasonably be regarded as an employee of the partnership referred to in any of sections 14 to 16 of the Act respecting international financial centres (chapter C-8.3);

“qualified gross revenue” 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 the transaction, but does not include, where the transaction was carried out for or on behalf of a group of persons referred to in that paragraph b, that part of the gross revenue that may reasonably be attributed to any member of the group who is resident in Canada, or not resident in Canada but in respect of whom the condition set out in subparagraph ii of paragraph c of that definition has not been satisfied;

“qualified international financial transaction” carried out by a corporation or partnership operating an international financial centre means a qualified international financial transaction within the meaning of sections 7 and 8 of the Act respecting international financial centres 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 31 March 1998 and before 1 January 2003, in the course of the operations of the international financial centre, for or on behalf of a particular person not resident in Canada or a group of persons that includes at least one person not resident in Canada,

i.  under an agreement for the supply of services with a term of one year or more, and

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

(c)  constitutes a type of activity that

i.  as regards the particular person referred to in paragraph b, was at no time carried on for or on behalf of that person 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, and

ii.  as regards the group of persons referred to in paragraph b, would satisfy, in respect of at least one member of the group who is a person not resident in Canada, the condition set out in subparagraph i if that subparagraph were read as if the references to the particular person referred to in paragraph b were a reference to that member;

“qualified solicitation expenditure” of a corporation or partnership operating an international financial centre for a taxation year or fiscal period means an expenditure that is reasonable under the circumstances and that

(a)  is, in the taxation year or fiscal period, but after 31 March 1998 and before 1 January 2002, incurred by the corporation or partnership in the course of the operations of the international financial centre; and

(b)  is related to a solicitation activity directed at a person not resident in Canada and carried on by the corporation or partnership through an employee or, in the case of the partnership, an eligible member, and is

i.  the employee’s or the eligible member’s travel expenses for travelling from Canada to another country or from a country other than Canada to Canada,

ii.  the employee’s or the eligible member’s travel and accommodation expenses for the period in which the employee or the eligible member travels outside Canada and engages in the solicitation activity, or

iii.  expenses related to food and beverages consumed during the period referred to in subparagraph ii by the employee or the eligible member or by the person, or by an employee or other representative of the person at whom the solicitation activity carried on by the employee or the eligible member is directed;

“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 described in paragraph a or b.

1999, c. 86, s. 85; 2001, c. 51, s. 228; 2004, c. 21, s. 421.