I-3 - Taxation Act

Section 11.1.1.2 Disposition versions

2017-02-08

11.1.1.2. Section 11.1.1.3 applies to a corporation, trust or partnership (in this section and section 11.1.1.3 referred to as the “relevant entity”) for a taxation year if

(a)  the relevant entity does not satisfy the condition in subparagraph i of paragraph a of section 11.1.1, determined without reference to section 11.1.1.3;

(b)  all or substantially all the gross revenue of the relevant entity for the year consists of

i.  gross revenue from the provision of services to one or more eligible entities, other than services described in any of paragraphs a to h of the definition of “international shipping” in section 1,

ii.  gross revenue from international shipping,

iii.  gross revenue from an eligible interest held by it in an eligible entity,

iv.  interest on a debt owing by an eligible entity in which an eligible interest is held by it or a person related to it, or

v.  a combination of amounts described in subparagraphs i to iv;

(c)  either the relevant entity is a subsidiary wholly-owned corporation (within the meaning of subsection 5 of section 544) of the eligible entity referred to in paragraph b or an eligible interest in each eligible entity referred to in paragraph b is held throughout the year by

i.  the relevant entity,

ii.  one or more persons related to the relevant entity (if the relevant entity and each such person are corporations), or persons or partnerships affiliated with the relevant entity (in any other case), or

iii.  the relevant entity and one or more persons or partnerships described in subparagraph ii; and

(d)  all or substantially all the shares of the capital stock of, interests as a beneficiary under, or interests as a member of, the relevant entity, as the case may be, are held, directly or indirectly through one or more subsidiary whollyowned corporations (within the meaning of subsection 5 of section 544), throughout the year by one or more corporations, trusts or partnerships that would be eligible entities if they did not own shares of, interests as a beneficiary under, or interests as a member of, the relevant entity.

2017, c. 1, s. 71.