I-3 - Taxation Act

Section 572 Disposition versions

2010-10-27

572. In this Title, a controlled foreign affiliate, at any time, of a taxpayer resident in Canada means a foreign affiliate of the taxpayer that

(a)  is, at that time, controlled by the taxpayer; or

(b)  would, at that time, be controlled by the taxpayer if the taxpayer owned all of the following shares of the capital stock of the foreign affiliate:

i.  the shares that are owned at that time by the taxpayer,

ii.  the shares that are owned at that time by any person who does not deal at arm’s length with the taxpayer,

iii.  the shares that are owned at that time by any person (in this section referred to as a “relevant Canadian shareholder”), in any set of persons not exceeding four (which set of persons is to be determined without reference to the existence of or the absence of any relationship, connection or action in concert between those persons), who

(1)  are resident in Canada,

(2)  are not the taxpayer or a person described in subparagraph ii, and

(3)  own, at that time, shares of the capital stock of the foreign affiliate, and

iv.  the shares that are owned at that time by any person who does not deal at arm’s length with any relevant Canadian shareholder.

1975, c. 22, s. 151; 1990, c. 59, s. 208; 1993, c. 16, s. 230; 2010, c. 25, s. 43.

2006-03-01

572. For the purposes of this Title, a controlled foreign affiliate, at any time, of a taxpayer resident in Canada is a foreign affiliate of such taxpayer that is controlled by the taxpayer, by the taxpayer and not more than four other persons resident in Canada, by not more than four persons resident in Canada, other than the taxpayer, by a person or persons with whom the taxpayer does not deal at arm’s length, or by the taxpayer and a person or persons with whom he does not deal at arm’s length.

1975, c. 22, s. 151; 1990, c. 59, s. 208; 1993, c. 16, s. 230.