I-3 - Taxation Act

Section 597.5 Disposition versions

2006-03-01

597.5. For the purposes of section 597.4, the circumstances that must be taken into account include

(a)  the nature, organization and operation of any foreign entity and the form of, and the terms and conditions governing, the taxpayer’s interest in, or connection with, any such entity;

(b)  the extent to which any income, profits and gains that may reasonably be considered to be earned or accrued, whether directly or indirectly, for the benefit of any foreign entity are subject to an income or profits tax that is significantly less than the income tax that would be applicable to such income, profits and gains if they were earned directly by the taxpayer;

(c)  the extent to which the income, profits and gains of any foreign entity for any fiscal period are distributed in that or the following fiscal period.

1986, c. 15, s. 90.