I-3 - Taxation Act

Section 998 Disposition versions

2023-09-26

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (R.S.C. 1985, c. N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of subparagraph k of the first paragraph of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of 16 November 1978 and the date on which the corporation was incorporated, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption from the later of 16 November 1978 and the date on which it was incorporated,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property, or real rights in such property, owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property, or real rights in such property, owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or a real right in such property, and

(3)  made no investments other than investments in immovable property, or a real right in such property, or investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 (R.S.C. 1985, c. 32 (2nd Suppl.)) or a similar law of a province,

iii.  has made no investments other than investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued bonds, notes, debentures or similar obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period referred to in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(g.1)  a trust established under a registered disability savings plan, to the extent provided in Title III.1 of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(h.1)  a trust established under a tax-free savings account, to the extent provided in Title IV.3 of Book VII;

(h.2)  a trust established under a first home savings account, to the extent provided in Title IV.4 of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.0.1)  a trust governed by a pooled registered pension plan to the extent provided in Title VI.0.2 of Book VII;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  (paragraph repealed);

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust;

(o)  an environmental trust;

(p)  a trust

i.  that was created because of a requirement imposed by section 56 of the Environment Quality Act (chapter Q-2),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec, or

(2)  a municipality, within the meaning of section 1 of that Act, that is exempt under this Book from tax under this Part on all of its taxable income; or

(q)  a trust

i.  that was created because of a requirement imposed by subsection 1 of section 9 of the Nuclear Fuel Waste Act (S.C. 2002, c. 23),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

(2)  a nuclear energy corporation, within the meaning of section 2 of that Act, all of the shares of the capital stock of which are owned by one or more persons described in subparagraph 1,

(3)  the waste management organization established under section 6 of that Act if all of the shares of its capital stock are owned by one or more nuclear energy corporations described in subparagraph 2, or

(4)  Atomic Energy of Canada Limited, being the company incorporated or acquired under subsection 2 of section 10 of the Atomic Energy Control Act (R.S.C. 1970, c. A-19).

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136; 2009, c. 5, s. 418; 2009, c. 15, s. 181; 2010, c. 25, s. 107; 2015, c. 21, s. 355; 2015, c. 36, s. 67; 2019, c. 14, s. 292; 2020, c. 16, s. 142; 2023, c. 19, s. 100.

2020-09-24

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (R.S.C. 1985, c. N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of subparagraph k of the first paragraph of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of 16 November 1978 and the date on which the corporation was incorporated, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption from the later of 16 November 1978 and the date on which it was incorporated,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property, or real rights in such property, owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property, or real rights in such property, owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or a real right in such property, and

(3)  made no investments other than investments in immovable property, or a real right in such property, or investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 (R.S.C. 1985, c. 32 (2nd Suppl.)) or a similar law of a province,

iii.  has made no investments other than investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued bonds, notes, debentures or similar obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period referred to in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(g.1)  a trust established under a registered disability savings plan, to the extent provided in Title III.1 of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(h.1)  a trust established under a tax-free savings account, to the extent provided in Title IV.3 of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.0.1)  a trust governed by a pooled registered pension plan to the extent provided in Title VI.0.2 of Book VII;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  (paragraph repealed);

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust;

(o)  an environmental trust;

(p)  a trust

i.  that was created because of a requirement imposed by section 56 of the Environment Quality Act (chapter Q-2),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec, or

(2)  a municipality, within the meaning of section 1 of that Act, that is exempt under this Book from tax under this Part on all of its taxable income; or

(q)  a trust

i.  that was created because of a requirement imposed by subsection 1 of section 9 of the Nuclear Fuel Waste Act (S.C. 2002, c. 23),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

(2)  a nuclear energy corporation, within the meaning of section 2 of that Act, all of the shares of the capital stock of which are owned by one or more persons described in subparagraph 1,

(3)  the waste management organization established under section 6 of that Act if all of the shares of its capital stock are owned by one or more nuclear energy corporations described in subparagraph 2, or

(4)  Atomic Energy of Canada Limited, being the company incorporated or acquired under subsection 2 of section 10 of the Atomic Energy Control Act (R.S.C. 1970, c. A-19).

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136; 2009, c. 5, s. 418; 2009, c. 15, s. 181; 2010, c. 25, s. 107; 2015, c. 21, s. 355; 2015, c. 36, s. 67; 2019, c. 14, s. 292; 2020, c. 16, s. 142.

2019-06-19

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (R.S.C. 1985, c. N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of subparagraph k of the first paragraph of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of 16 November 1978 and the date on which the corporation was incorporated, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption from the later of 16 November 1978 and the date on which it was incorporated,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or real rights in such property – or real property or interests in such property – owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or real rights in such property – or real property or interests in such property – owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or a real right in such property – or real property or an interest in such property, and

(3)  made no investments other than investments in immovable property or a real right in such property – or real property or an interest in such property – or investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 (R.S.C. 1985, c. 32, (2nd Suppl.)) or a similar law of a province,

iii.  has made no investments other than investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued bonds, notes, debentures or similar obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period referred to in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(g.1)  a trust established under a registered disability savings plan, to the extent provided in Title III.1 of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(h.1)  a trust established under a tax-free savings account, to the extent provided in Title IV.3 of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.0.1)  a trust governed by a pooled registered pension plan to the extent provided in Title VI.0.2 of Book VII;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  (paragraph repealed);

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust;

(o)  an environmental trust;

(p)  a trust

i.  that was created because of a requirement imposed by section 56 of the Environment Quality Act (chapter Q-2),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec, or

(2)  a municipality, within the meaning of section 1 of that Act, that is exempt under this Book from tax under this Part on all of its taxable income; or

(q)  a trust

i.  that was created because of a requirement imposed by subsection 1 of section 9 of the Nuclear Fuel Waste Act (S.C. 2002, c. 23),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

(2)  a nuclear energy corporation, within the meaning of section 2 of that Act, all of the shares of the capital stock of which are owned by one or more persons described in subparagraph 1,

(3)  the waste management organization established under section 6 of that Act if all of the shares of its capital stock are owned by one or more nuclear energy corporations described in subparagraph 2, or

(4)  Atomic Energy of Canada Limited, being the company incorporated or acquired under subsection 2 of section 10 of the Atomic Energy Control Act (R.S.C. 1970, c. A-19).

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136; 2009, c. 5, s. 418; 2009, c. 15, s. 181; 2010, c. 25, s. 107; 2015, c. 21, s. 355; 2015, c. 36, s. 67; 2019, c. 14, s. 292.

2015-12-04

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (R.S.C. 1985, c. N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of subparagraph k of the first paragraph of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of 16 November 1978 and the date on which the corporation was incorporated, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption from the later of 16 November 1978 and the date on which it was incorporated,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or real rights in such property – or real property or interests in such property – owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or real rights in such property – or real property or interests in such property – owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or a real right in such property – or real property or an interest in such property, and

(3)  made no investments other than investments in immovable property or a real right in such property – or real property or an interest in such property – or investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 (R.S.C. 1985, c. 32, (2nd Suppl.)) or a similar law of a province,

iii.  has made no investments other than investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued bonds, notes, debentures or similar obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period referred to in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(g.1)  a trust established under a registered disability savings plan, to the extent provided in Title III.1 of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(h.1)  a trust established under a tax-free savings account, to the extent provided in Title IV.3 of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.0.1)  a trust governed by a pooled registered pension plan to the extent provided in Title VI.0.2 of Book VII;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  an insurer that, throughout the period referred to in section 980, is not engaged in any business other than insurance if, in the opinion of the Minister, on the advice of the Superintendent of Financial Institutions for Canada or, where the insurer is incorporated under the laws of a province, of the superintendent of insurance of that province or the Autorité des marchés financiers, at least 20% of the total of the gross premium income earned in the period by the insurer and, where the insurer is not a prescribed insurer, by all other persons described in section 999.0.3 is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen;

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust;

(o)  an environmental trust;

(p)  a trust

i.  that was created because of a requirement imposed by section 56 of the Environment Quality Act (chapter Q-2),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec, or

(2)  a municipality, within the meaning of section 1 of that Act, that is exempt under this Book from tax under this Part on all of its taxable income; or

(q)  a trust

i.  that was created because of a requirement imposed by subsection 1 of section 9 of the Nuclear Fuel Waste Act (S.C. 2002, c. 23),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

(2)  a nuclear energy corporation, within the meaning of section 2 of that Act, all of the shares of the capital stock of which are owned by one or more persons described in subparagraph 1,

(3)  the waste management organization established under section 6 of that Act if all of the shares of its capital stock are owned by one or more nuclear energy corporations described in subparagraph 2, or

(4)  Atomic Energy of Canada Limited, being the company incorporated or acquired under subsection 2 of section 10 of the Atomic Energy Control Act (R.S.C. 1970, c. A-19).

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136; 2009, c. 5, s. 418; 2009, c. 15, s. 181; 2010, c. 25, s. 107; 2015, c. 21, s. 355; 2015, c. 36, s. 67.

2015-10-21

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (R.S.C. 1985, c. N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of subparagraph k of the first paragraph of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of the date on which the corporation was incorporated and 16 November 1978, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption since the later of the date on which it was incorporated and 16 November 1978,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or an interest therein, and

(3)  made no investments other than investments in immovable property or in an interest in such property or that is a qualified investment of a pension plan under the Pension Benefits Standards Act, 1985 (R.S.C. 1985, c. 32 (2nd Suppl.)) or a similar law of a province,

iii.  has made no investments other than investments that a registered retirement plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued debt obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period contemplated in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or of a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(g.1)  a trust established under a registered disability savings plan, to the extent provided in Title III.1 of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(h.1)  a trust established under a tax-free savings account, to the extent provided in Title IV.3 of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.0.1)  a trust governed by a pooled registered pension plan to the extent provided in Title VI.0.2 of Book VII;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  an insurer that, throughout the period referred to in section 980, is not engaged in any business other than insurance if, in the opinion of the Minister, on the advice of the Superintendent of Financial Institutions for Canada or, where the insurer is incorporated under the laws of a province, of the superintendent of insurance of that province or the Autorité des marchés financiers, at least 20% of the total of the gross premium income earned in the period by the insurer and, where the insurer is not a prescribed insurer, by all other persons described in section 999.0.3 is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen;

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust;

(o)  an environmental trust;

(p)  a trust

i.  that was created because of a requirement imposed by section 56 of the Environment Quality Act (chapter Q-2),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec, or

(2)  a municipality, within the meaning of section 1 of that Act, that is exempt under this Book from tax under this Part on all of its taxable income; or

(q)  a trust

i.  that was created because of a requirement imposed by subsection 1 of section 9 of the Nuclear Fuel Waste Act (S.C. 2002, c. 23),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

(2)  a nuclear energy corporation, within the meaning of section 2 of that Act, all of the shares of the capital stock of which are owned by one or more persons described in subparagraph 1,

(3)  the waste management organization established under section 6 of that Act if all of the shares of its capital stock are owned by one or more nuclear energy corporations described in subparagraph 2, or

(4)  Atomic Energy of Canada Limited, being the company incorporated or acquired under subsection 2 of section 10 of the Atomic Energy Control Act (R.S.C. 1970, c. A-19).

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136; 2009, c. 5, s. 418; 2009, c. 15, s. 181; 2010, c. 25, s. 107; 2015, c. 21, s. 355.

2010-10-27

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (R.S.C. 1985, c. N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of subparagraph k of the first paragraph of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of the date on which the corporation was incorporated and 16 November 1978, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption since the later of the date on which it was incorporated and 16 November 1978,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or an interest therein, and

(3)  made no investments other than investments in immovable property or in an interest in such property or that is a qualified investment of a pension plan under the Pension Benefits Standards Act, 1985 (R.S.C. 1985, c. 32 (2nd Suppl.)) or a similar law of a province,

iii.  has made no investments other than investments that a registered retirement plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued debt obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period contemplated in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or of a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(g.1)  a trust established under a registered disability savings plan, to the extent provided in Title III.1 of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(h.1)  a trust established under a tax-free savings account, to the extent provided in Title IV.3 of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  an insurer that, throughout the period referred to in section 980, is not engaged in any business other than insurance if, in the opinion of the Minister, on the advice of the Superintendent of Financial Institutions for Canada or, where the insurer is incorporated under the laws of a province, of the superintendent of insurance of that province or the Autorité des marchés financiers, at least 20% of the total of the gross premium income earned in the period by the insurer and, where the insurer is not a prescribed insurer, by all other persons described in section 999.0.3 is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen;

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust;

(o)  an environmental trust;

(p)  a trust

i.  that was created because of a requirement imposed by section 56 of the Environment Quality Act (chapter Q-2),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec, or

(2)  a municipality, within the meaning of section 1 of that Act, that is exempt under this Book from tax under this Part on all of its taxable income; or

(q)  a trust

i.  that was created because of a requirement imposed by subsection 1 of section 9 of the Nuclear Fuel Waste Act (S.C. 2002, c. 23),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

(2)  a nuclear energy corporation, within the meaning of section 2 of that Act, all of the shares of the capital stock of which are owned by one or more persons described in subparagraph 1,

(3)  the waste management organization established under section 6 of that Act if all of the shares of its capital stock are owned by one or more nuclear energy corporations described in subparagraph 2, or

(4)  Atomic Energy of Canada Limited, being the company incorporated or acquired under subsection 2 of section 10 of the Atomic Energy Control Act (R.S.C. 1970, c. A-19).

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136; 2009, c. 5, s. 418; 2009, c. 15, s. 181; 2010, c. 25, s. 107.

2009-06-04

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (R.S.C. 1985, c. N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of paragraph k of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of the date on which the corporation was incorporated and 16 November 1978, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption since the later of the date on which it was incorporated and 16 November 1978,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or an interest therein, and

(3)  made no investments other than investments in immovable property or in an interest in such property or that is a qualified investment of a pension plan under the Pension Benefits Standards Act, 1985 (R.S.C. 1985, c. 32 (2nd Suppl.)) or a similar law of a province,

iii.  has made no investments other than investments that a registered retirement plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued debt obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period contemplated in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or of a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(g.1)  a trust established under a registered disability savings plan, to the extent provided in Title III.1 of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(h.1)  a trust established under a tax-free savings account, to the extent provided in Title IV.3 of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  an insurer that, throughout the period referred to in section 980, is not engaged in any business other than insurance if, in the opinion of the Minister, on the advice of the Superintendent of Financial Institutions for Canada or, where the insurer is incorporated under the laws of a province, of the superintendent of insurance of that province or the Autorité des marchés financiers, at least 20% of the total of the gross premium income earned in the period by the insurer and, where the insurer is not a prescribed insurer, by all other persons described in section 999.0.3 is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen;

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust;

(o)  an environmental trust;

(p)  a trust

i.  that was created because of a requirement imposed by section 56 of the Environment Quality Act (chapter Q-2),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec, or

(2)  a municipality, within the meaning of section 1 of that Act, that is exempt under this Book from tax under this Part on all of its taxable income; or

(q)  a trust

i.  that was created because of a requirement imposed by subsection 1 of section 9 of the Nuclear Fuel Waste Act (S.C. 2002, c. 23),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

(2)  a nuclear energy corporation, within the meaning of section 2 of that Act, all of the shares of the capital stock of which are owned by one or more persons described in subparagraph 1,

(3)  the waste management organization established under section 6 of that Act if all of the shares of its capital stock are owned by one or more nuclear energy corporations described in subparagraph 2, or

(4)  Atomic Energy of Canada Limited, being the company incorporated or acquired under subsection 2 of section 10 of the Atomic Energy Control Act (R.S.C. 1970, c. A-19).

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136; 2009, c. 5, s. 418; 2009, c. 15, s. 181.

2009-05-15

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (R.S.C. 1985, c. N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of paragraph k of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of the date on which the corporation was incorporated and 16 November 1978, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption since the later of the date on which it was incorporated and 16 November 1978,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or an interest therein, and

(3)  made no investments other than investments in immovable property or in an interest in such property or that is a qualified investment of a pension plan under the Pension Benefits Standards Act, 1985 (R.S.C. 1985, c. 32 (2nd Suppl.)) or a similar law of a province,

iii.  has made no investments other than investments that a registered retirement plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued debt obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period contemplated in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or of a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  an insurer that, throughout the period referred to in section 980, is not engaged in any business other than insurance if, in the opinion of the Minister, on the advice of the Superintendent of Financial Institutions for Canada or, where the insurer is incorporated under the laws of a province, of the superintendent of insurance of that province or the Autorité des marchés financiers, at least 20% of the total of the gross premium income earned in the period by the insurer and, where the insurer is not a prescribed insurer, by all other persons described in section 999.0.3 is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen;

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust;

(o)  an environmental trust;

(p)  a trust

i.  that was created because of a requirement imposed by section 56 of the Environment Quality Act (chapter Q-2),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec, or

(2)  a municipality, within the meaning of section 1 of that Act, that is exempt under this Book from tax under this Part on all of its taxable income; or

(q)  a trust

i.  that was created because of a requirement imposed by subsection 1 of section 9 of the Nuclear Fuel Waste Act (S.C. 2002, c. 23),

ii.  that is resident in Canada, and

iii.  in which the only persons that are beneficially interested are

(1)  the State, Her Majesty in right of Canada or Her Majesty in right of a province, other than Québec,

(2)  a nuclear energy corporation, within the meaning of section 2 of that Act, all of the shares of the capital stock of which are owned by one or more persons described in subparagraph 1,

(3)  the waste management organization established under section 6 of that Act if all of the shares of its capital stock are owned by one or more nuclear energy corporations described in subparagraph 2, or

(4)  Atomic Energy of Canada Limited, being the company incorporated or acquired under subsection 2 of section 10 of the Atomic Energy Control Act (R.S.C. 1970, c. A-19).

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136; 2009, c. 5, s. 418.

2006-03-01

998. The following are exempt from tax:

(a)  an association of employees within the meaning of the Labour Code (chapter C-27) or a benevolent or fraternal benefit society or order;

(b)  a mutual insurance corporation receiving its premiums wholly from the insurance of churches, schools or charitable organizations;

(b.1)  (paragraph repealed);

(c)  a limited-dividend housing company within the meaning of section 2 of the National Housing Act (Revised Statutes of Canada, 1985, chapter N-11) all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;

(c.1)  a corporation accepted, under paragraph o.1 of subsection 1 of section 149 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) by the Minister of Revenue of Canada as a funding medium for the purposes of the registration of a plan as a registered pension plan, and incorporated and operated throughout the period referred to in section 980

i.  solely for the administration of that registered pension plan, or

ii.  for the administration of that registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan;

(c.2)  a corporation all of the shares, and rights to acquire shares, of the capital stock of which were owned by one or more registered pension plans, by one or more trusts all the beneficiaries of which are registered pension plans, by one or more segregated fund trusts, within the meaning of paragraph k of section 835, all the beneficiaries of which are registered pension plans or by one or more prescribed persons, or, in the case of a corporation without share capital, all the property of which was held exclusively for the benefit of one or more such plans and, in either case, without interruption from the later of the date on which the corporation was incorporated and 16 November 1978, and which is a corporation that

i.  was incorporated before 17 November 1978 solely for the administration of a registered pension plan or in connection with that plan, or

ii.  has, without interruption since the later of the date on which it was incorporated and 16 November 1978,

(1)  limited its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the corporation, a registered pension plan or another corporation described in this paragraph, other than a corporation without share capital, and investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is immovable property or an interest therein owned by the partnership,

(2)  borrowed money solely for the purpose of earning income from immovable property or an interest therein, and

(3)  made no investments other than investments in immovable property or in an interest in such property or that is a qualified investment of a pension plan under the Pension Benefits Standards Act, 1985 (Revised Statutes of Canada, 1985, chapter 32, 2nd Supplement) or a similar law of a province,

iii.  has made no investments other than investments that a registered retirement plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and whose assets where at least 98% cash and investments, that has not issued debt obligations or accepted deposits, and has derived at least 98% of its income for the period referred to in section 980 that is a taxation year of the corporation from, or from the disposition of, investments, or

iv.  throughout the period contemplated in section 980, has limited its activities to acquiring Canadian resource properties by purchase or by incurring Canadian exploration expenses or Canadian development expenses, or holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties, borrowed money solely for the purpose of earning income from Canadian resource properties and made no investments other than in Canadian resource properties, in property to be used in connection with Canadian resource properties acquired by purchase or by incurring Canadian exploration expenses or Canadian development expenses, in loans secured by Canadian resource properties for the purpose of acquiring, holding, exploring, developing, maintaining, improving, managing, operating or disposing of a Canadian resource property or in investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or of a similar law of a province;

(c.3)  a corporation that is a small business investment corporation within the meaning of the regulations;

(c.4)  a trust that is a master trust within the meaning of the regulations and that elects to be such a trust under this paragraph in its fiscal return for its first taxation year ending in the period referred to in section 980;

(d)  a trust established under a registered pension plan;

(e)  a trust established under a profit sharing plan to the extent provided in Title I of Book VII;

(f)  a trust established under a deferred profit sharing plan to the extent provided in Title II of Book VII;

(f.1)  an RCA trust, within the meaning of subparagraph c of the first paragraph of section 890.1;

(g)  a trust established under a registered education savings plan, to the extent provided in Title III of Book VII;

(h)  a trust established under a registered retirement savings plan to the extent provided in Title IV of Book VII;

(i)  (paragraph repealed);

(i.1)  a trust established under a registered retirement income fund to the extent provided in Title V.1 of Book VII;

(j)  a trust established under a registered supplementary unemployment benefit plan to the extent provided by sections 962 to 965;

(j.1)  a trust governed by an eligible funeral arrangement;

(j.2)  a cemetery care trust;

(k)  an insurer that, throughout the period referred to in section 980, is not engaged in any business other than insurance if, in the opinion of the Minister, on the advice of the Superintendent of Financial Institutions for Canada or, where the insurer is incorporated under the laws of a province, of the superintendent of insurance of that province or the Autorité des marchés financiers, at least 20% of the total of the gross premium income earned in the period by the insurer and, where the insurer is not a prescribed insurer, by all other persons described in section 999.0.3 is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen;

(l)  a trust established in accordance with a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against the owner of a business contemplated in the relevant law, where that owner is unwilling or unable to compensate his customers or clients, if no part of the property of the trust, after payment of its proper expenses, is available to persons other than clients or customers of such business and as such;

(m)  a trust established pursuant to a collective agreement between an employer or an employers’ association and employees or an association of employees for the sole purpose of providing for the payment of holiday or vacation pay, if the aggregate of the property of the trust, after payment of its reasonable expenses, is not paid after 11 December 1979 or is not available after 1980 except to a person referred to in paragraph a, to a person as a consequence of his employment, or to an legatee by particular title or legal representative of the latter person;

(n)  an amateur athlete trust; or

(o)  an environmental trust.

1972, c. 23, s. 730; 1974, c. 18, s. 32; 1975, c. 21, s. 25; 1977, c. 26, s. 107; 1979, c. 18, s. 69; 1980, c. 13, s. 101; 1982, c. 5, s. 178; 1982, c. 52, s. 202; 1984, c. 15, s. 229; 1985, c. 25, s. 144; 1987, c. 67, s. 180; 1988, c. 18, s. 112; 1989, c. 77, s. 96; 1990, c. 59, s. 335; 1991, c. 25, s. 163; 1993, c. 16, s. 321; 1994, c. 22, s. 311; 1995, c. 49, s. 236; 1995, c. 63, s. 112; 1996, c. 39, s. 249; 1997, c. 3, s. 52; 1997, c. 14, s. 176; 1998, c. 16, s. 217; 2000, c. 5, s. 232; 2002, c. 45, s. 520; 2004, c. 8, s. 176; 2004, c. 37, s. 90; 2005, c. 23, s. 136.