I-3 - Taxation Act

Section 127.3.3 Disposition versions

2006-03-01

127.3.3. For the purpose of applying paragraph b of section 127.8 in respect of a corporation resident in Canada, in determining whether persons described in subparagraph i of that paragraph b are related to each other at any time, any rights referred to in paragraph b of section 20 that otherwise exist at that time are deemed not to exist at that time where, if the rights were exercised immediately before that time,

(a)  all of those persons would at that time be controlled foreign affiliates of the corporation resident in Canada; and

(b)  because of section 127.13, section 127.6 would not apply to the corporation in respect of the amount that would, but for this section, have been deemed to have been owing at that time to the corporation by the person not resident in Canada described in subparagraph i of paragraph b of section 127.8.

2004, c. 8, s. 23.