I-3 - Taxation Act

Section 262.0.2 Disposition versions

2020-09-24

262.0.2. For the purposes of section 262.0.1, “qualifying entity” means

(a)  in the case of a borrowing party that is a corporation,

i.  the borrowing party,

ii.  a corporation resident in Canada of which

(1)  the borrowing party is a subsidiary wholly-owned corporation, or

(2)  a corporation described in this subparagraph ii is a subsidiary wholly-owned corporation,

iii.  a corporation resident in Canada

(1)  each share of the capital stock of which is owned by the borrowing party or a corporation described in subparagraph ii or this subparagraph iii, or

(2)  all or substantially all of the capital stock of which is owned by one or more corporations resident in Canada that are borrowing parties in respect of the creditor affiliate under section 577.6, or

iv.  a partnership each member of which is

(1)  a corporation described in any of subparagraphs i to iii, or

(2)  another partnership described in this subparagraph iv; and

(b)  in the case of a borrowing party that is a partnership,

i.  the borrowing party,

ii.  if each member of the borrowing party is either a corporation resident in Canada (in this subparagraph b referred to as the “parent”) or a corporation resident in Canada that is a subsidiary wholly-owned corporation, within the meaning of subsection 5 of section 544, of the parent,

(1)  the parent, or

(2)  a corporation resident in Canada that is a subsidiary wholly-owned corporation, within the meaning of subsection 5 of section 544, of the parent, or

iii.  a partnership each member of which is

(1)  the borrowing party,

(2)  a corporation described in subparagraph ii, or

(3)  another partnership described in this subparagraph iii.

For the purposes of subparagraph ii of subparagraph b of the first paragraph, a member of a particular partnership is deemed to be a member of any other partnership of which the particular partnership is a member.

2020, c. 16, s. 53.