Income Tax Regulations

Income Tax Regulations [Note: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] These Regulations may be cited as the Income Tax Regulations. In these Regulations, Act means the Income Tax Act. In this Part and in Schedule I, employee means any person receiving remuneration; (employé) employer means any person paying remuneration; (employeur) estimated deductions means, in respect of a taxation year, the total of the amounts estimated to be deductible by an employee for the year under any of paragraphs 8(1)(f), (h), (h.1), (i) and (j) of the Act and determined by the employee for the purpose of completing the form referred to in subsection 107(2); (déductions estimatives) exemptions[Repealed, SOR/89-508, s. 1] pay period includes a day, a week, a two week period, a semi-monthly period, a month, a four week period, one tenth of a calendar year, or one twenty-second of a calendar year; (période de paie) personal credits means, in respect of a particular taxation year, the greater of the amount referred to in paragraph 118(1)(c) of the Act, and the aggregate of the credits which the employee would be entitled to claim for the year under subsections 118(1), (2) and (3) of the Act if the description of A in those subsections were read as “is equal to one”, subsections 118.3(1) and (2) of the Act if the description of A in subsection 118.3(1) of the Act were read as “is equal to one” and if subsection 118.3(1) of the Act were read without reference to paragraph (c) thereof, subsections 118.5(1) and 118.6(2) of the Act if subsection 118.5(1) of the Act were read without reference to “the product obtained when the appropriate percentage for the year is multiplied by” and the description of A in subsection 118.6(2) of the Act were read as “is equal to one”, and after deducting from the aggregate of the amounts determined under those subsections the excess over $3,000 of the aggregate of amounts that the employee claims to expect to receive in the year on account of a scholarship, fellowship or bursary, section 118.8 of the Act if the formula A + B - C in that section were read as is the value of A in that section, is the value of B in that section, and is the appropriate percentage for the year, section 118.9 of the Act if the formula A - B in section 118.81 of the Act were read as is the value of A set out in that section, and is the appropriate percentage for the year. (crédits d’impôts personnels) remuneration includes any payment that is in respect of salary or wages, or commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated (referred to as commissions in this Part) paid to an officer or employee or former officer or employee, in respect of an employee’s gratuities required under provincial legislation to be declared to the employee’s employer, a superannuation or pension benefit (including an annuity payment made pursuant to or under a superannuation or pension fund or plan) other than a distribution that is made from a pooled registered pension plan and is not required to be included in computing a taxpayer’s income under paragraph 56(1)(z.3) of the Act, or that subsection 147.5(14) of the Act deems to have been made, an amount of a distribution out of or under a retirement compensation arrangement, a retiring allowance, a death benefit, a benefit under a supplementary unemployment benefit plan, a payment under a deferred profit sharing plan or a plan referred to in section 147 of the Act as a revoked plan, reduced, if applicable, by amounts determined under subsections 147(10.1), (11) and (12) of the Act, a benefit under the Employment Insurance Act, an amount that is required by paragraph 56(1)(a.3) of the Act to be included in computing a taxpayer’s income, an amount that is required by paragraph 56(1)(r) of the Act to be included in computing a taxpayer’s income, except the portion of the amount that relates to child care expenses and tuition costs, an amount that is required by paragraph 56(1)(z.2) of the Act to be included in computing a taxpayer’s income, a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of that annuitant, other than a periodic annuity payment, or a payment made by a person who has reasonable grounds to believe that the payment may be deducted under subsection 146(8.2) of the Act in computing the income of any taxpayer, a payment out of or under a plan referred to in subsection 146(12) of the Act as an amended plan other than where paragraph 146(12)(a) of the Act applied to the plan after May 25, 1976, a payment made in a year subsequent to the year in which that paragraph applied to the plan, a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146.3(1) of the Act under a registered retirement income fund of that annuitant, other than a particular payment to the extent that the particular payment is in respect of the minimum amount (in this paragraph having the meaning assigned by subsection 146.3(1) of the Act) under the fund for a year, or where the fund governs a trust, the particular payment would be in respect of the minimum amount under the fund for a year if each amount that, at the beginning of the year, is scheduled to be paid after the time of the particular payment and in the year to the trust under an annuity contract that is held by the trust both at the beginning of the year and at the time of the particular payment, is paid to the trust in the year, a benefit described in section 5502, an amount as, on account or in lieu of payment of, or in satisfaction of, proceeds of the surrender, cancellation or redemption of an income-averaging annuity contract, in respect of an amount that can reasonably be regarded as having been received, in whole or in part, as consideration or partial consideration for entering into a contract of service, where the service is to be performed in Canada, or for an undertaking not to enter into such a contract with another party, a payment out of a registered education savings plan other than a refund of payments, an educational assistance payment, or an amount, up to $50,000, of an accumulated income payment that is made to a subscriber, as defined in subsection 204.94(1) of the Act, or if there is no subscriber at that time, that is made to a person that has been a spouse or common-law partner of an individual who was a subscriber, if that amount is transferred to an RRSP in which the annuitant is either the recipient of the payment or the recipient’s spouse or common-law partner, and it is reasonable for the person making the payment to believe that that amount is deductible for the year by the recipient of the payment within the limits provided for in subsection 146(5) or (5.1) of the Act, an amount of a disability assistance payment made under a registered disability savings plan that is required by paragraph 56(1)(q.1) of the Act to be included in computing a taxpayer’s income, an amount that is required by paragraph 56(1)(z.5) of the Act to be included in computing a taxpayer’s income, a payment described in paragraph 153(1)(v) of the Act, or an amount that is required by subparagraph 56(1)(a)(viii) of the Act to be included in computing the taxpayer’s income; (rémunération) total remuneration means, in respect of a taxation year, the total of all amounts each of which is an amount referred to in paragraph (a) or (a.1) of the definition remuneration. (rémunération totale) Where the amount of any credit referred to in paragraph (a) or (b) of the definition personal credits in subsection (1) is subject to an annual adjustment under section 117.1 of the Act, such amount shall, in a particular taxation year, be subject to that annual adjustment. For the purposes of this Part, where an employer deducts or withholds from a payment of remuneration to an employee one or more of the following amounts, the balance remaining after the deducting or withholding of the amount or amounts shall be deemed to be the amount of that payment of remuneration: a contribution to or under a pooled registered pension plan, a registered pension plan or a specified pension plan, dues described in subparagraph 8(1)(i)(iv), (v) or (vi) of the Act paid on account of the employee, a contribution by the employee under subparagraph 8(1)(m.2) of the Act, a premium under a registered retirement savings plan, to the extent that the employer believes on reasonable grounds that the premium is deductible under paragraph 60(j.1) or subsection 146(5) or (5.1) of the Act in computing the employee’s income for the taxation year in which the payment of remuneration is made, a contribution to or under a FHSA, to the extent that the employer believes on reasonable grounds that the contribution is deductible under subsection 146.6(5) of the Act in computing the employee’s income for the taxation year in which the payment of remuneration is made, an amount that is deductible under paragraph 60(b) of the Act, an amount that is deductible under paragraph 60(e.1) of the Act, or an amount that is deductible under paragraph 60(l) of the Act. For the purposes of this Part, where an employee has claimed a deduction for a taxation year under paragraph 110.7(1)(b) of the Act as shown on the return most recently filed by the employee with the employee’s employer pursuant to subsection 227(2) of the Act, the amount of remuneration otherwise determined, including the amount deemed by subsection (3) to be the amount of that payment of remuneration, paid to the employee for a pay period shall be reduced by an amount equal to the amount of the deduction divided by the maximum number of pay periods in the year in respect of the appropriate pay period. [Repealed, SOR/2001-209, s. 1] For the purposes of this Part, where an employee is not required to report for work at any establishment of the employer, he shall be deemed to report for work in respect of remuneration that is salary, wages or commissions, at the establishment of the employer from which the remuneration is paid; or in respect of remuneration other than salary, wages or commissions, at the establishment of the employer in the province where the employee resides at the time the remuneration is paid but, if the employer does not have an establishment in that province at that time, he shall, for the purposes of this paragraph, be deemed to have an establishment in that province. For the purposes of this Part, where an employer deducts or withholds from a payment of remuneration to an employee an amount in respect of the acquisition by the employee of an approved share, as defined in subsection 127.4(1) of the Act, there shall be deducted from the amount determined under paragraph 102(1)(e) or (2)(e), as the case may be, in respect of that payment the lesser of $750, and 15% of the amount deducted or withheld in respect of the acquisition of an approved share. Every person who makes a payment described in subsection 153(1) of the Act in a taxation year shall deduct or withhold therefrom, and remit to the Receiver General, such amount, if any, as is determined in accordance with rules prescribed in this Part. Except as otherwise provided in this Part, the amount to be deducted or withheld by an employer from any payment of remuneration (in this subsection referred to as the payment) made to an employee in his taxation year where he reports for work at an establishment of the employer in a province, in Canada beyond the limits of any province or outside Canada, and for any pay period in which the payment is made by the employer shall be determined for each payment in accordance with the following rules: an amount that is a notional remuneration for the year in respect of a payment to the employee, and the amount, if any, of gratuities referred to in paragraph (a.1) of the definition remuneration in subsection 100(1) is deemed to be the amount determined by the formula is the amount that is deemed for the purpose of this paragraph to be the mid-point of the applicable range of remuneration for the pay period, as provided in Schedule I, in which falls the total of (A)the payment referred to in subparagraph (i) made in the pay period, and the payment referred to in subparagraph (i) made in the pay period, and (B)the amount of gratuities referred to in subparagraph (ii) declared by the employee for the pay period, and the amount of gratuities referred to in subparagraph (ii) declared by the employee for the pay period, and is the maximum number of such pay periods in that year; if the employee is not resident in Canada at the time of the payment, no personal credits will be allowed for the purposes of this subsection and, if the employee is resident in Canada at the time of the payment, the employee’s personal credits for the year are deemed to be the mid-point of the range of amounts of personal credits for a taxation year as provided for in section 2 of Schedule I; an amount (in this subsection referred to as the notional tax for the year) shall be computed in respect of that employee by calculating the amount of tax payable for the year, as if that amount were calculated under subsection 117(2) of the Act and adjusted annually pursuant to section 117.1 of the Act, on the amount determined in accordance with paragraph (c) as if that amount represented the employee’s amount taxable for that year, and deducting the aggregate of the amount determined in accordance with paragraph (d) multiplied by the appropriate percentage for the year, an amount equal to the amount determined in accordance with paragraph (c) multiplied by the employee’s premium rate for the year under the Employment Insurance Act, not exceeding the maximum amount of the premiums payable by the employee for the year under that Act, multiplied by the appropriate percentage for the year, and the product obtained when the difference between the amount determined in accordance with paragraph (c) and the amount determined under section 20 of the Canada Pension Plan for the year is multiplied by the employee’s contribution rate for the year under the Canada Pension Plan or under a provincial pension plan as defined in subsection 3(1) of that Act, not exceeding the maximum amount of such contributions payable by the employee for the year under the plan, the appropriate percentage for the year; the amount determined in accordance with paragraph (e) shall be increased by, where applicable, the tax as determined under subsection 120(1) of the Act; where the amount of notional remuneration for the year is income earned in the Province of Quebec, the amount determined in accordance with paragraph (e) shall be reduced by an amount that is the aggregate of the amount that is deemed to be paid under subsection 120(2) of the Act as if there were no other source of income or loss for the year, and the amount by which the amount referred to in subparagraph (i) is increased by virtue of section 27 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act; and [Repealed, SOR/92-667, s. 1] the amount to be deducted or withheld shall be computed by dividing the amount of the notional tax for the year by the maximum number of pay periods for the year in respect of the appropriate pay period, and rounding the amount determined under subparagraph (i) to the nearest multiple of five cents or, if such amount is equidistant from two such multiples, to the higher multiple. Where an employee has elected pursuant to subsection 107(2) and has not revoked such election, the amount to be deducted or withheld by the employer from any payment of remuneration (in this subsection referred to as the payment) that is a payment in respect of commissions or is a combined payment of commissions and salary or wages, or a payment in respect of salary or wages where that employee receives a combined payment of commissions and salary or wages, made to that employee in his taxation year where he reports for work at an establishment of the employer in a province, in Canada beyond the limits of any province or outside Canada, shall be determined for each payment in accordance with the following rules: an employee’s estimated annual taxable income shall be determined by using the formula is the amount of that employee’s total remuneration in respect of the year as recorded by the employee on the form referred to in subsection 107(2), and is the amount of that employee’s expenses in respect of the year as recorded by that employee on that form; if the employee is not resident in Canada at the time of the payment, no personal credits will be allowed for the purposes of this subsection and if the employee is resident in Canada at the time of the payment, the employee’s personal credits for the year shall be the total claim amount as recorded by that employee on the return for the year referred to in subsection 107(1); an amount (in this subsection referred to as the notional tax for the year) shall be calculated in respect of that employee by using the formula is the amount of tax payable for the year, calculated as if that amount of tax were computed under subsection 117(2) of the Act and adjusted annually pursuant to section 117.1 of the Act, on the amount determined under paragraph (c) as if that amount represented the employee’s amount taxable for that year, is the amount determined in accordance with paragraph (d), is the amount determined in the description of A in paragraph (c) multiplied by the employee’s premium rate for the year under the Employment Insurance Act, not exceeding the maximum amount of the premiums payable by the employee for the year under that Act, is the amount determined in the description of A in paragraph (c) less the amount for the year determined under section 20 of the Canada Pension Plan multiplied by the employee’s contribution rate for the year under that Act or under a provincial pension plan as defined in section 3 of that Act, not exceeding the maximum amount of such contributions payable by the employee for the year under the plan, is, where applicable, the tax as determined under subsection 120(1) of the Act, is, where the amount of total remuneration for the year is income earned in the Province of Quebec, an amount equal to the aggregate of (i)the amount that would be deemed to have been paid under subsection 120(2) of the Act with respect to the employee if the notional tax for the year for the employee were determined without reference to the elements H, I and J in this formula and if that tax were that employee’s tax payable under Part I of the Act for that year, as if there were no other source of income or loss for the year, and the amount that would be deemed to have been paid under subsection 120(2) of the Act with respect to the employee if the notional tax for the year for the employee were determined without reference to the elements H, I and J in this formula and if that tax were that employee’s tax payable under Part I of the Act for that year, as if there were no other source of income or loss for the year, and (ii)the amount by which the amount referred to in subparagraph (i) is increased by virtue of section 27 of the Federal-Provincial Fiscal Arrangements Act; the amount by which the amount referred to in subparagraph (i) is increased by virtue of section 27 of the Federal-Provincial Fiscal Arrangements Act; the employee’s notional rate of tax for a year is calculated by dividing the amount determined under paragraph (e) by the amount referred to in the description of A in paragraph (c) in respect of that employee and expressed as a decimal fraction rounded to the nearest hundredth, or where the third digit is equidistant from two consecutive one-thousandths, to the higher thereof; the amount to be deducted or withheld in respect of any payment made to that employee shall be determined by multiplying the payment by the appropriate decimal fraction determined pursuant to paragraph (f). [Repealed, SOR/2001-221, s. 2] [Repealed, SOR/89-508, s. 2] [Repealed, SOR/81-471, s. 3] Notwithstanding subsections (1) and (2), no amount shall be deducted or withheld in the year by an employer from a payment of remuneration to an employee in respect of commissions earned by the employee in the immediately preceding year where those commissions were previously reported by the employer as remuneration of the employee in respect of that year on an information return. Despite subsection (1), no amount shall be deducted or withheld in the year by an employer from an amount determined in accordance with subparagraph 110(1)(f)(iii), (iv) or (v) of the Act. Where a payment in respect of a bonus or retroactive increase in remuneration is made by an employer to an employee whose total remuneration from the employer (including the bonus or retroactive increase) may reasonably be expected not to exceed $5,000 in the taxation year of the employee in which the payment is made, the employer shall deduct or withhold, in the case of an employee who reports for work at an establishment of the employer in any province, 10 per cent, or in Canada beyond the limits of any province or outside Canada, 15 per cent, [Repealed, SOR/2001-221, s. 3] of such payment in lieu of the amount determined under section 102. Where a payment in respect of a bonus is made by an employer to an employee whose total remuneration from the employer (including the bonus) may reasonably be expected to exceed $5,000 in the taxation year of the employee in which the payment is made, the amount to be deducted or withheld therefrom by the employer is the amount determined under section 102 in respect of an assumed remuneration equal to the aggregate of the amount of regular remuneration paid by the employer to the employee in the pay period in which the remuneration is paid, and an amount equal to the bonus payment divided by the number of pay periods in the taxation year of the employee in which the payment is made minus the amount determined under section 102 in respect of the amount of regular remuneration paid by the employer to the employee in the pay period the number of pay periods in the taxation year of the employee in which the payment is made. Where a payment in respect of a retroactive increase in remuneration is made by an employer to an employee whose total remuneration from the employer (including the retroactive increase) may reasonably be expected to exceed $5,000 in the taxation year of the employee in which the payment is made, the amount to be deducted or withheld therefrom by the employer is the amount determined under section 102 in respect of the new rate of remuneration the amount determined under section 102 in respect of the previous rate of remuneration the number of pay periods in respect of which the increase in remuneration is retroactive. Subject to subsections (4.1) and (5), where a lump sum payment is made by an employer to an employee who is a resident of Canada, if the payment does not exceed $5,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employer in Quebec, 5 per cent, in any other province, 7 per cent, or in Canada beyond the limits of any province or outside Canada, 10 per cent, of such payment in lieu of the amount determined under section 102; if the payment exceeds $5,000 but does not exceed $15,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employer in Quebec, 10 per cent, in any other province, 13 per cent, or in Canada beyond the limits of any province or outside Canada, 20 per cent, of such payment in lieu of the amount determined under section 102; and if the payment exceeds $15,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employer in Quebec, 15 per cent, in any other province, 20 per cent, or in Canada beyond the limits of any province or outside Canada, 30 per cent, For the purposes of a lump sum payment described in paragraph (6)(h), subsection (4) is to be read without reference to its paragraphs (b) and (c) and the portion of subsection (4) before subparagraph (a)(i) is to be read as follows: Where a lump sum payment is made by an employer to an employee, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employer Where the payment referred to in subsection (4) would be pension income or qualified pension income of the employee in respect of which subsection 118(3) of the Act would apply if the definition pension income in subsection 118(7) of the Act were read without reference to subparagraphs (a)(ii) and (iii) thereof, the payment shall be deemed to be the amount of the payment minus where the payment does not exceed the amount taxable referred to in paragraph 117(2)(a) of the Act, as adjusted annually pursuant to section 117.1 of the Act, the lesser of $1,000 and the amount of the payment; where the payment exceeds the amount referred to in paragraph (a) but does not exceed $61,509, $727; where the payment exceeds $61,509 but does not exceed $100,000, $615; and where the payment exceeds $100,000, $552. For the purposes of subsection (4), a lump sum payment means a payment that is a payment described in subparagraph 40(1)(a)(i) or (iii) or paragraph 40(1)(c) of the Income Tax Application Rules, a payment under a deferred profit sharing plan or a plan referred to in section 147 of the Act as a revoked plan, except a payment referred to in subparagraph 147(2)(k)(v) of the Act, a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146.3(1) of the Act under a registered retirement income fund of that annuitant, other than a payment to the extent that it is in respect of the minimum amount (within the meaning assigned by subsection 146.3(1) of the Act) under the fund for a year, a payment of an amount as, on account or in lieu of payment of, or in satisfaction of, proceeds of the surrender, cancellation or redemption of an income-averaging annuity contract, a payment described in paragraph (n) of the definition remuneration in subsection 100(1), a payment made under the Canada Recovery Benefits Act, or Canada Worker Lockdown Benefit Act, or a payment described in paragraph 153(1)(v) of the Act. For the purposes of subsection 153(1) of the Act, the amount to be deducted or withheld by a person shall be 50 per cent of the contribution made by the person under a retirement compensation arrangement, other than a contribution made by the person as an employee, a contribution made to a plan or arrangement that is a prescribed plan or arrangement for the purposes of subsection 207.6(6) of the Act, a contribution made by way of a transfer from another retirement compensation arrangement under circumstances in which subsection 207.6(7) of the Act applies, or a contribution that is an excluded contribution (as defined in subsection 207.5(1) of the Act); or of the payment by the person to a resident of Canada of an amount on account of the purchase price of an interest in a retirement compensation arrangement. Every employer making a payment described in paragraph (n) of the definition remuneration in subsection 100(1) shall withhold — in addition to any other amount required to be withheld under Part I of these Regulations — on account of the tax payable under Part X.5 of the Act, an amount equal to where the amount is paid in the province of Quebec, 12 per cent of the payment, and in any other case, 20 per cent of the payment. The amount to be deducted or withheld by a person from any payment of an amount described in paragraph 56(1)(z.4) of the Act is in the case of a payment to a resident of Quebec, 30% of the payment; or in the case of a payment to a resident of Canada who is not a resident of Quebec, 50% of the payment. For the purpose of the description of C in subsection (2), plan payment means in the case of a disability assistance payment that is a lifetime disability assistance payment, the total amount of all the lifetime disability assistance payments that have been made or that may reasonably be expected to be made to the employee under the plan in their taxation year and that the employer has reasonable grounds to believe are described in paragraph (o) of the definition remuneration in subsection 100(1); or in the case of a disability assistance payment that is other than a lifetime disability assistance payment, the amount of the payment that is made to the employee under the plan and that is described in paragraph (o) of the definition remuneration in subsection 100(1). If an employer makes a disability assistance payment under a registered disability savings plan to an employee who is a resident of Canada, the employer shall, in lieu of the amount determined under section 102, deduct or withhold from the payment an amount determined by the formula is the amount of the disability assistance payment that is made to the employee and that is described in paragraph (o) of the definition remuneration in subsection 100(1); is (a)if the beneficiary of the plan is deceased, nil, or if the beneficiary of the plan is deceased, nil, or (b)the amount by which the total of the following amounts exceeds the total amount of all the disability assistance payments previously made to the employee in their taxation year and that are described in paragraph (o) of the definition remuneration in subsection 100(1):(i)the amount determined for F in subsection 118(1.1) of the Act for the taxation year, and(ii)the amount used under the description of B in subsection 118.3(1) of the Act for the taxation year; and the amount by which the total of the following amounts exceeds the total amount of all the disability assistance payments previously made to the employee in their taxation year and that are described in paragraph (o) of the definition remuneration in subsection 100(1): (i)the amount determined for F in subsection 118(1.1) of the Act for the taxation year, and the amount determined for F in subsection 118(1.1) of the Act for the taxation year, and (ii)the amount used under the description of B in subsection 118.3(1) of the Act for the taxation year; and the amount used under the description of B in subsection 118.3(1) of the Act for the taxation year; and (a)if the plan payment does not exceed $5,000 and the amount is paid(i)in Quebec, 5 per cent,(ii)in any other province, 7 per cent, or(iii)in Canada beyond the limits of any province or outside Canada, 10 per cent, if the plan payment does not exceed $5,000 and the amount is paid (i)in Quebec, 5 per cent, (ii)in any other province, 7 per cent, or (iii)in Canada beyond the limits of any province or outside Canada, 10 per cent, (b)if the plan payment exceeds $5,000 but does not exceed $15,000 and the amount is paid(i)in Quebec, 10 per cent,(ii)in any other province, 13 per cent, or(iii)in Canada beyond the limits of any province or outside Canada, 20 per cent, or if the plan payment exceeds $5,000 but does not exceed $15,000 and the amount is paid (i)in Quebec, 10 per cent, (ii)in any other province, 13 per cent, or (iii)in Canada beyond the limits of any province or outside Canada, 20 per cent, or in Canada beyond the limits of any province or outside Canada, 20 per cent, or (c)if the plan payment exceeds $15,000 and the amount is paid(i)in Quebec, 15 per cent,(ii)in any other province, 20 per cent, or(iii)in Canada beyond the limits of any province or outside Canada, 30 per cent. if the plan payment exceeds $15,000 and the amount is paid (i)in Quebec, 15 per cent, (ii)in any other province, 20 per cent, or (iii)in Canada beyond the limits of any province or outside Canada, 30 per cent. in Canada beyond the limits of any province or outside Canada, 30 per cent. [Repealed, SOR/2001-221, s. 4] No amount shall be deducted or withheld from a payment in accordance with any of sections 102 to 103.1 in respect of an employee who was neither employed nor resident in Canada at the time of payment except in respect of remuneration described in subparagraph 115(2)(e)(i) of the Act that is paid to a non-resident person who has in the year, or had in any previous year, ceased to be resident in Canada; or remuneration reasonably attributable to the duties of any office or employment performed or to be performed in Canada by the non-resident person. No amount shall be deducted or withheld from a payment made by a person during the lifetime of an annuitant referred to in paragraph (a) of the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of the annuitant where, at the time of the payment, the annuitant has certified in prescribed form to the person that a written agreement has been entered into to acquire a home by either the annuitant, or a disabled person who is related to the annuitant and who is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act; the annuitant intends that the home be used as a principal place of residence in Canada for the annuitant or the disabled person, as the case may be, within one year after its acquisition; the home has not been previously owned by the annuitant, the annuitant’s spouse or common-law partner, the disabled person or the spouse or common-law partner of that person; the annuitant was resident in Canada; the total amount of the payment and all other such payments received by the annuitant in respect of the home at or before the time of the payment does not exceed the dollar amount specified in paragraph (h) of the definition regular eligible amount in subsection 146.01(1) of the Act; except where the annuitant certifies that he or she is a disabled person entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act or certifies that the payment is being withdrawn for the benefit of such a disabled person, the annuitant is a qualifying homebuyer at the time of the certification; and where the annuitant has withdrawn an eligible amount, within the meaning assigned by subsection 146.01(1) of the Act, before the calendar year of the certification, the total of all eligible amounts received by the annuitant before that calendar year does not exceed the total of all amounts previously designated under subsection 146.01(3) of the Act or included in computing the annuitant’s income under subsection 146.01(4) or (5) of the Act. For the purpose of subsection (3), the annuitant is a qualifying homebuyer at a particular time unless the annuitant had an owner-occupied home in the period beginning on January 1 of the fourth calendar year preceding the particular time, and ending on the thirty-first day before the particular time; or the annuitant’s spouse or common-law partner, in the period referred to in paragraph (a), had an owner-occupied home that was inhabited by the annuitant at any time during the annuitant’s marriage to the spouse or the annuitant’s common-law partnership with the common-law partner. For the purpose of subsection (3.01), an individual shall be considered to have had an owner-occupied home at any time where the home was owned, whether jointly with another person or otherwise, by the individual at that time and inhabited by the individual as the individual’s principal place of residence at that time. For the purposes of subsections (3), (3.01) and (3.1), home means a housing unit; a share of the capital stock of a cooperative housing corporation, where the holder of the share is entitled to possession of a housing unit; and where the context so requires, the housing unit to which a share described in paragraph (b) relates. at the time of certification, the annuitant or the annuitant’s spouse or common-law partner is a full-time student in a qualifying educational program, is a part-time student in a qualifying educational program and is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act, or has received notification in writing of his or her entitlement, either absolutely or conditionally, to enrol before March of the year that follows the year of certification as a full-time student in a qualifying educational program, or a part-time student in a qualifying educational program where the annuitant or the annuitant’s spouse or common-law partner is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act; the annuitant is resident in Canada; the total amount of the payment and all other such payments received by the annuitant for a year at or before that time does not exceed $10,000; and the total payments received by the annuitant do not exceed $20,000 throughout the period in which the annuitant participates in the Lifelong Learning Plan. For the purpose of subsection (1), a qualifying educational program means a qualifying educational program at a designated educational institution (as those expressions are defined in subsection 118.6(1) of the Act), except that a reference to a qualifying educational program shall be read without reference to paragraphs (a) and (b) of that definition; and as if the reference to “3 consecutive weeks” in that definition were a reference to “3 consecutive months”. Every person paying to a non-resident person a fee, commission or other amount in respect of services rendered in Canada, of any nature whatever, shall deduct or withhold 15 per cent of such payment. Subsection (1) does not apply to a payment described in the definition remuneration in subsection 100(1); made to a registered non-resident insurer (within the meaning assigned by section 804); or made to an authorized foreign bank in respect of its Canadian banking business. Notwithstanding section 100, in this section, amount of remuneration paid to a fisherman means where a boat crewed by one or more fishermen engaged in making a catch is owned, together with the gear, by a person, other than a member of the crew, to whom the catch is to be delivered for subsequent sale or other disposition, such portion of the proceeds from the disposition of the catch that is payable to the fisherman in accordance with an arrangement under which the proceeds of disposition of the catch are to be distributed (in this section referred to as a “share arrangement”), where the boat or gear used in making a catch is owned or leased by a fisherman who alone or with another individual engaged under a contract of service makes the catch, such portion of the proceeds from the disposition of the catch that remains after deducting therefrom the amount in respect of any portion of the catch not caught by the fisherman or the other individual, the amount payable to the other individual under the contract of service, and the amount of such proportionate share of the catch as is attributable to the expenses of the operation of the boat or its gear pursuant to their share arrangement, where a crew includes the owner of the boat or gear (in this paragraph referred to as the owner) and any other fisherman engaged in making a catch, such portion of the proceeds from the disposition of the catch that remains after deducting therefrom in the case of an owner, the amount in respect of that portion of the catch not caught by the crew or an owner, the aggregate of all amounts each of which is an amount payable to a crew member (other than the owner) pursuant to their share arrangement or to an individual engaged under a contract of service, and the amount of such proportionate share of the catch as is attributable to the expenses of the owner’s operation of the boat or its gear pursuant to their share arrangement, or in the case of any other crew member, such proceeds from the disposition of the catch as is payable to him in accordance with their share arrangement, or in any other case, the proceeds of disposition of the catch payable to the fisherman; (montant de rémunération) catch means a catch of shell fish, crustaceans, aquatic animals or marine plants caught or taken from any body of water; (pêche) crew means one or more fishermen engaged in making a catch; (équipe) fisherman means an individual engaged in making a catch other than under a contract of service. (pêcheur) Every person paying at any time in a taxation year an amount of remuneration to a fisherman who, pursuant to paragraph 153(1)(n) of the Act, has elected for the year in prescribed form in respect of all such amounts shall deduct or withhold 20% of each such amount paid to the fisherman while the election is in force. Where an employer makes a payment of remuneration to an employee in his taxation year for a period for which no provision is made in Schedule I, or for a pay period referred to in Schedule I in an amount that is greater than any amount provided for therein, [Repealed, SOR/2001-221, s. 5] the amount to be deducted or withheld by the employer from any such payment is that proportion of the payment that the tax that may reasonably be expected to be payable under the Act by the employee with respect to the aggregate of all remuneration that may reasonably be expected to be paid by the employer to the employee in respect of that taxation year is of such aggregate. [Repealed, SOR/84-913, s. 3] The return required to be filed by an employee under subsection 227(2) of the Act shall be filed by the employee with the employer when the employee commences employment with that employer and a new return shall be filed thereunder within 7 days after the date on which a change occurs that may reasonably be expected to result in a change in the employee’s personal credits for the year. Notwithstanding subsection (1), where, in a year, an employee receives payments in respect of commissions or in respect of commissions and salary or wages, and the employee elects to file a prescribed form for the year in addition to the return referred to in that subsection, that form shall be filed with the employee’s continuing employer on or before January 31 of that year and, where applicable, within one month after the employee commences employment with a new employer or within one month after the date on which a change occurs that may reasonably be expected to result in a substantial change in the employee’s estimated total remuneration for the year or estimated deductions for the year. Where, in a taxation year, an employee has elected to file the prescribed form referred to in subsection (2) and has filed such form with his employer, the employee may at any time thereafter in the year revoke that election and such revocation is effective from the date that he notifies his employer in writing of his intention. Subject to subsections (1.1) to (1.13), amounts deducted or withheld in a month under subsection 153(1) of the Act shall be remitted to the Receiver General on or before the 15th day of the following month. Subject to subsection (1.11), where the average monthly withholding amount of an employer for the second calendar year preceding a particular calendar year is equal to or greater than $25,000 and less than $100,000, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General in respect of payments made before the 16th day of the month, on or before the 25th day of the month, and in respect of payments made after the 15th day of the month, on or before the 10th day of the following month; or equal to or greater than $100,000, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of the following periods in which the payments were made, the period beginning on the first day and ending on the 7th day of the month, the period beginning on the 8th day and ending on the 14th day of the month, the period beginning on the 15th day and ending on the 21st day of the month, and the period beginning on the 22nd day and ending on the last day of the month. Where an employer referred to in paragraph (1.1)(a) or (b) would otherwise be required to remit in accordance with that paragraph the amounts withheld or deducted under subsection 153(1) of the Act in respect of a particular calendar year, the employer may elect to remit those amounts in accordance with subsection (1), if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is less than $25,000 and the employer has advised the Minister that the employer has so elected; or if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is equal to or greater than $25,000 and less than $100,000 and the employer has advised the Minister that the employer has so elected, in respect of payments made before the 16th day of a month in the particular calendar year, on or before the 25th day of the month, and in respect of payments made after the 15th day of a month in particular calendar year, on or before the 10th day of the following month. If at any time the average monthly withholding amount in respect of an employer for either the first or the second calendar year before the particular calendar year that includes that time is less than $3,000, throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, under subsection 21(1) of the Canada Pension Plan, under subsection 82(1) of the Employment Insurance Act or under Part IX of the Excise Tax Act, and throughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under this Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made by the employer in a month that ends after that time and that is in the particular calendar year may be remitted to the Receiver General in respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular year, in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular year, in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular year, and in respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular year.

If an employer is a new employer throughout a particular month in a particular calendar year, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made by the employer in the month may be remitted to the Receiver General in respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year; in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year; in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and in respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year. For the purposes of this section, average monthly withholding amount, in respect of an employer for a particular calendar year, is the quotient obtained when the aggregate of all amounts each of which is an amount required to be remitted with respect to the particular year under subsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, where the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1), subsection 21(1) of the Canada Pension Plan, or subsection 82(1) of the Employment Insurance Act, by the employer or, where the employer is a corporation, by each corporation associated with the corporation in a taxation year of the employer ending in the second calendar year following the particular year is divided by the number of months in the particular year, not exceeding twelve, for which such amounts were required to be remitted by the employer and, where the employer is a corporation, by each corporation associated with it in a taxation year of the employer ending in the second calendar year following the particular year. For the purposes of subsection (1.4), the monthly withholding amount, in respect of an employer for a month, is the total of all amounts each of which is an amount required to be remitted with respect to the month by the employer or, if the employer is a corporation, by each corporation associated with the corporation, under subsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, if the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1); subsection 21(1) of the Canada Pension Plan; or subsection 82(1) of the Employment Insurance Act. For the purposes of subsection (1.2), where a particular employer that is a corporation has acquired in a taxation year of the corporation ending in a particular calendar year all or substantially all of the property of another employer used by the other employer in a business in a transaction in respect of which an election was made under subsection 85(1) or (2) of the Act, by virtue of an amalgamation within the meaning assigned to that term by section 87 of the Act, or as the result of a winding-up in respect of which subsection 88(1) of the Act is applicable, the other employer shall be deemed to be a corporation associated with the particular employer in the taxation year and each taxation year ending at any time in the next two following calendar years. For the purposes of subsection (1.13) an employer becomes a new employer at the beginning of any month after 2015 in which the employer first becomes an employer; and ceases to be a new employer at a specified time in a particular year, if in a particular month the employer does not meet any of the following conditions: the monthly withholding amount in respect of the employer for the particular month is less than $1,000, throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, subsection 21(1) of the Canada Pension Plan, subsection 82(1) of the Employment Insurance Act or Part IX of the Excise Tax Act, and throughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under the Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts. For the purposes of subsection (1.4), the specified time is the end of March of the particular year, if the particular month is January, February or March of that year; June of the particular year, if the particular month is April, May or June of that year; September of the particular year, if the particular month is July, August or September of that year; and December of the particular year, if the particular month is October, November or December of that year. Where an employer has ceased to carry on business, any amount deducted or withheld under subsection 153(1) of the Act that has not been remitted to the Receiver General shall be paid within 7 days of the day when the employer ceased to carry on business. Remittances made to the Receiver General under subsection 153(1) of the Act shall be accompanied by a return in prescribed form. Amounts deducted or withheld under subsection 153(4) of the Act shall be remitted to the Receiver General within 60 days after the end of the taxation year subsequent to the 12-month period referred to in that subsection. Any election under subsection 153(1.2) of the Act shall be made by filing with the person making the payment or class of payments referred to therein (in this section referred to as the payer) the form prescribed by the Minister for that purpose. A taxpayer who has made an election in the manner prescribed by subsection (1) may require that the amount deducted or withheld pursuant to that election be varied by filing with the payer the form prescribed by the Minister for that purpose. An election made in the manner prescribed by subsection (1) or a variation made pursuant to subsection (2) need not be taken into account by the payer in respect of the first payment to be made to the taxpayer after the election or variation, as the case may be, unless the election or variation, as the case may be, is made within such time, in advance of the payment, as may reasonably be required by the payer. The following are prescribed persons for the purposes of subsection 153(1) of the Act: an employer who is required, under subsection 153(1) of the Act and in accordance with paragraph 108(1.1)(b), to remit amounts deducted or withheld; and a person or partnership who, acting on behalf of one or more employers, remits the following amounts in a particular calendar year and whose average monthly remittance, in respect of those amounts, for the second calendar year preceding the particular calendar year, is equal to or greater than $50,000, amounts required to be remitted under subsection 153(1) of the Act and a similar provision of a law of a province that imposes a tax on the income of individuals, where the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1), amounts required to be remitted under subsection 21(1) of the Canada Pension Plan, and amounts required to be remitted under subsection 82(1) of the Employment Insurance Act or subsection 53(1) of the Unemployment Insurance Act. For the purposes of paragraph (1)(b), the average monthly remittance made by a person or partnership on behalf of all the employers for whom that person or partnership is acting, for the second calendar year preceding the particular calendar year, is the quotient obtained when the aggregate, for that preceding year, of all amounts referred to in subparagraphs (1)(b)(i) to (iii) remitted by the person or partnership on behalf of those employers is divided by the number of months, in that preceding year, for which the person or partnership remitted those amounts. For the purpose of subsection 153(1.02) of the Act $25,000 is the amount prescribed for the purpose of the description of A in paragraph 153(1.02)(a) of the Act; 10%, or a lower percentage elected by the eligible employer, as defined in subsection 153(1.03), is the percentage prescribed for the purpose of the description of C in paragraph 153(1.02)(b) of the Act; and $1,375 is the amount prescribed for the purpose of the description of E in paragraph 153(1.02)(c) of the Act. Subject to subsection (1.1), every person who makes a payment described in subsection 153(1) of the Act (including an amount paid that is described in subparagraph 153(1)(a)(ii) of the Act) shall make an information return in prescribed form in respect of the payment unless an information return in respect of the payment has been made under sections 202, 214, 237 or 238. Subsection (1) does not apply in respect of an annuity payment in respect of an interest in an annuity contract to which subsection 201(5) applies; or an amount paid by a qualifying non-resident employer to a qualifying non-resident employee that is exempted under subparagraph 153(1)(a)(ii) of the Act if the employer, after reasonable inquiry, has no reason to believe that the employee’s total amount of taxable income earned in Canada under Part I of the Act during the calendar year that includes the time of this payment (including an amount described in paragraph 110(1)(f) of the Act) is more than $10,000. Every person who makes a payment as or on account of, or who confers a benefit or allocates an amount that is, a scholarship, fellowship or bursary, or a prize for achievement in a field of endeavour ordinarily carried on by the recipient thereof (other than a prize prescribed by section 7700), a grant to enable the recipient thereof to carry on research or any similar work, an amount that is required by paragraph 56(1)(n.1) of the Act to be included in computing a taxpayer’s income, an amount that is required by paragraph 56(1)(r) of the Act to be included in computing a taxpayer’s income, a benefit under regulations made under an appropriation Act providing for a scheme of transitional assistance benefits to persons employed in the production of products to which the Canada-United States Agreement on Automotive Products, signed on January 16, 1965, applies, an amount payable to a taxpayer on a periodic basis in respect of the loss of all or any part of his income from an office or employment, pursuant to a sickness or accident insurance plan, a disability insurance plan, or an income maintenance insurance plan, to or under which his employer has made a contribution, an amount or benefit the value of which is required by paragraph 6(1)(a), (e) or (h) or subsection 6(9) of the Act to be included in computing a taxpayer’s income from an office or employment, other than a payment referred to in subsection (1), a benefit the amount of which is required by virtue of subsection 15(5) of the Act to be included in computing a shareholder’s income, a benefit deemed by subsection 15(9) of the Act to be a benefit conferred on a shareholder by a corporation, or a payment out of a registered education savings plan, other than a refund of payments, shall make an information return in prescribed form in respect of such payment or benefit except where subsection (3) or (4) applies with respect to the payment or benefit. Where a benefit is included in computing a taxpayer’s income from an office or employment pursuant to paragraph 6(1)(a) or (e) of the Act in respect of an automobile made available to the taxpayer or to a person related to the taxpayer by a person related to the taxpayer’s employer, the employer shall make an information return in prescribed form in respect of the benefit. Where a benefit is included in computing the income of a shareholder of a corporation by virtue of subsection 15(5) of the Act in respect of an automobile made available to the shareholder or to a person related to the shareholder by a person related to the corporation, the corporation shall make an information return in prescribed form in respect of the benefit. Where a particular qualifying person (within the meaning assigned by subsection 7(7) of the Act) has agreed to sell or issue a security (within the meaning assigned by that subsection) of the particular qualifying person (or of a qualifying person with which it does not deal at arm’s length) to a taxpayer who is an employee of the particular qualifying person (or of a qualifying person with which it does not deal at arm’s length) and the taxpayer has acquired the security under the agreement in circumstances to which subsection 7(8) of the Act applied, each of the particular qualifying person, the qualifying person of which the security is acquired and the qualifying person which is the taxpayer’s employer shall, for the particular taxation year in which the security is acquired, make an information return in the prescribed form in respect of the benefit from employment that the taxpayer would be deemed to have received in the particular taxation year in respect of the acquisition of the security if the Act were read without reference to subsection 7(8) and, for this purpose, an information return made by one of the qualifying persons in respect of the taxpayer’s acquisition of the security is deemed to have been made by each of the qualifying persons. Every person who makes a payment as or on account of an amount that is required by subsection 56(6) of the Act to be included in computing a taxpayer’s income shall make an information return in prescribed form in respect of that payment. Every person who makes a payment to a resident of Canada as or on account of a dividend or an amount deemed by the Act to be a dividend (other than a dividend deemed to have been paid to a person under any of subsections 84(1) to (4) of the Act where, pursuant to subsection 84(8) of the Act, those subsections do not apply to deem the dividend to have been received by the person), interest (other than the portion of the interest to which any of subsections (4) to (4.2) applies) on a fully registered bond or debenture, money on loan to an association, corporation, institution, organization, partnership or trust, money on deposit with an association, corporation, institution, organization, partnership or trust, or property deposited or placed with an association, corporation, institution, organization, partnership or trust, in respect of an account with an investment dealer or broker, paid by an insurer in connection with an insurance policy or an annuity contract, or on an amount owing in respect of compensation for property expropriated, a royalty payment in respect of the use of a work or invention or a right to take natural resources, a payment referred to in subsection 16(1) of the Act that can reasonably be regarded as being in part a payment of interest or other payment of an income nature and in part a payment of a capital nature, where the payment is made by a corporation, association, organization or institution, an amount paid from a person’s NISA Fund No. 2, an amount that is required by subsection 148.1(3) of the Act to be added in computing a person’s income for a taxation year, or the portion of the price for which a debt obligation was assigned or otherwise transferred that is deemed by subsection 20(14.2) of the Act to be interest that accrued on the debt obligation to which the transferee has become entitled to for a period commencing before the time of the transfer and ending at that particular time that is not payable until after that particular time if the payment is made by a person that is a financial company (whether acting as principal or as agent for the transferee) for the purposes of section 211 shall make an information return in prescribed form in respect of the portion of such payment for which an information return has not previously been made under this section. Every person who receives as nominee or agent for a person resident in Canada a payment to which subsection (1) applies shall make an information return in prescribed form in respect of such payment. Where a person negotiates a bearer coupon, warrant or cheque representing interest or dividends referred to in subsection 234(1) of the Act for another person resident in Canada and the name of the beneficial owner of the interest or dividends is not disclosed on an ownership certificate completed pursuant to that subsection, the person negotiating the coupon, warrant or cheque, as the case may be, shall make an information return in prescribed form in respect of the payment received. A person or partnership that is indebted in a calendar year under a debt obligation in respect of which subsection 12(4) of the Act and paragraph (1)(b) apply with respect to a taxpayer shall make an information return in prescribed form in respect of the amount (other than an amount to which paragraph (1)(g) applies) that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year. A person or partnership that is indebted in a calendar year under an indexed debt obligation in respect of which paragraph (1)(b) applies shall, for each taxpayer who holds an interest in the debt obligation at any time in the year, make an information return in prescribed form in respect of the amount that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year. Where, at any time in a calendar year, a person or partnership holds, as nominee or agent for a taxpayer resident in Canada, an interest in a debt obligation referred to in paragraph (1)(b) that is an obligation in respect of which subsection 12(4) of the Act applies with respect to the taxpayer, or an indexed debt obligation, that person or partnership shall make an information return in prescribed form in respect of the amount that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year. Every insurer, within the meaning assigned by paragraph 148(10)(a) of the Act, who is a party to a life insurance policy in respect of which an amount is to be included in computing a taxpayer’s income under subsection 12.2(1) or (5) of the Act shall make an information return in prescribed form in respect of that amount. Subsection (5) applies to an insurer in respect of an LIA policy in respect of a calendar year only if the insurer is notified in writing — before the end of the calendar year and by, or on behalf, of the policyholder — that the policy is an LIA policy; or it is reasonable to conclude that the insurer knew, or ought to have known, before the end of the calendar year, that the policy is an LIA policy. Every person who makes a payment to, or acts as a nominee or agent for, an individual resident in Canada in respect of the disposition or redemption of a debt obligation in bearer form shall make an information return in prescribed form in respect of the transaction indicating the proceeds of disposition or the redemption amount and such other information as may be required by the prescribed form. For the purposes of subsection (6), debt obligation in bearer form means any debt obligation in bearer form other than a debt obligation that is redeemed for the amount for which the debt obligation was issued; a debt obligation described in paragraph 7000(1)(b); and a coupon, warrant or cheque referred to in subsection 207(1). In addition to any other return required by the Act or these Regulations, every person resident in Canada shall make an information return in prescribed form in respect of any amount that the person pays or credits, or is deemed under Part I, XIII or XIII.2 of the Act to pay or credit, to a non-resident person as, on account or in lieu of payment of, or in satisfaction of, a management or administration fee or charge; interest; income of or from an estate or trust; rent, royalty or a similar payment referred to in paragraph 212(1)(d) of the Act, including any payment described in any of subparagraphs 212(1)(d)(i) to (viii) of the Act; a timber royalty as described in paragraph 212(1)(e) of the Act; an assessable distribution, as defined in subsection 218.3(1) of the Act; a dividend, including a patronage dividend as described in paragraph 212(1) (g) of the Act; or a payment for a right in or to the use of a motion picture film, or a film or video tape for use in connection with television. [Repealed, SOR/88-165, s. 1] Every person who pays or credits an amount, or provides a benefit to or on behalf of a person who is either a non-resident individual who is an actor or that is a corporation related to such an individual, for the provision in Canada of acting services of the actor in a film or video production, shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of such payment, credit or benefit. Every person resident in Canada who pays or credits, or is deemed by Part I or Part XIII of the Act to pay or credit, to a non-resident person an amount as, on account or in lieu of payment of, or in satisfaction of, a payment of a superannuation or pension benefit, a payment of any allowance or benefit described in any of subparagraphs 56(1)(a)(ii) to (vi) of the Act, a payment by a trustee under a registered supplementary unemployment benefit plan, a payment out of or under a registered retirement savings plan or a plan referred to in subsection 146(12) of the Act as an amended plan, a payment under a deferred profit sharing plan or a plan referred to in subsection 147(15) of the Act as a revoked plan, a payment under an income-averaging annuity contract, any proceeds of the surrender, cancellation, redemption, sale or other disposition of an income-averaging annuity contract, or any amount deemed by subsection 61.1(1) of the Act to have been received by the non-resident person as proceeds of the disposition of an income-averaging annuity contract, an annuity payment not described in any other paragraph of this subsection or subsection (1), a payment to which paragraph 212(1)(p) of the Act applies, a payment out of or under a registered retirement income fund, a payment that is or that would be, if paragraph 212(1)(r) of the Act were read without reference to subparagraph 212(1)(r)(ii), a payment described in that paragraph in respect of a registered education savings plan, a grant under a program prescribed for the purposes of paragraph 212(1)(s) of the Act, a payment described in paragraph 212(1)(j) of the Act in respect of a retirement compensation arrangement, a payment described in paragraph 212(1)(v) or (x) of the Act, or a payment described in paragraph 212(1)(r.1) of the Act, shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of such amount. Every person resident in Canada who pays an amount to a non-resident person from a NISA Fund No. 2 shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of the amount. Every person who is paid or credited with an amount referred to in subsection (1), (2) or (2.1) for or on behalf of a non-resident person shall make an information return in prescribed form in respect of the amount. A non-resident person who is deemed, under subsection 212(13) of the Act, to be a person resident in Canada for the purposes of section 212 of the Act shall be deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2). A partnership that is deemed, under paragraph 212(13.1)(a) of the Act, to be a person resident in Canada for the purposes of Part XIII of the Act shall be deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2). A non-resident person, or an authorized foreign bank, that is deemed under subsection 212(13.2) or paragraph 212(13.3)(a) of the Act to be a person resident in Canada for the purposes of Part XIII of the Act, is deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2). A trust that is deemed by subsection 94(3) of the Act to be resident in Canada for a taxation year for the purposes of computing its income, is deemed, in respect of amounts (other than an exempt amount as defined in subsection 94(1) of the Act) paid or credited by it, to be a person resident in Canada for the taxation year for the purposes of subsections (1) and (2). Subject to subsection (8), an information return required under this section shall be filed on or before March 31 and shall be in respect of the preceding calendar year. Where an amount referred to in subsection (1) or (2) is income of or from an estate or trust, the information return required under this section in respect thereof shall be filed within 90 days from the end of the taxation year of the estate or trust in which the amount was paid or credited and shall be in respect of that taxation year. Requirement to file Every institution that is a designated educational institution (as defined in subsection 118.6(1) of the Act) because of paragraph (a) of that definition shall make an information return in prescribed form in respect of each individual enrolled at that institution who is a qualifying student (as defined in subsection 118.6(1)) for a month in a taxation year. Every person having the control of, or receiving income, gains or profits in a fiduciary capacity, or in a capacity analogous to a fiduciary capacity, shall make a return in prescribed form in respect thereof. The return required under this section shall be filed within 90 days from the end of the taxation year and shall be in respect of the taxation year. Subsection (1) does not require a trust to make a return for a taxation year at the end of which it is governed by a deferred profit sharing plan or by a plan referred to in subsection 147(15) of the Act as a revoked plan; governed by an employees profit sharing plan; a registered charity; governed by an eligible funeral arrangement; a cemetery care trust; governed by a registered education savings plan; governed by a TFSA or by an arrangement that is deemed by paragraph 146.2(9)(a) of the Act to be a TFSA; governed by a registered disability savings plan, except if paragraph 146.4(5)(a) or (b) of the Act applies; or governed by a FHSA. The following definitions apply in this section. public investment trust, at any time, means a public trust all or substantially all of the fair market value of the property of which is, at that time, attributable to the fair market value of property of the trust that is units of public trusts; partnership interests in public partnerships (as defined in subsection 229.1(1)); shares of the capital stock of public corporations; or any combination of properties referred to in paragraphs (a) to (c). (fiducie de placement ouverte) public trust, at any time, means a mutual fund trust the units of which are, at that time, listed on a designated stock exchange in Canada. (fiducie ouverte) A trust that is, at any time in a taxation year of the trust, a public trust shall, within the time required by subsection (3), make public, in prescribed form, information in respect of the trust for the taxation year by posting that prescribed form, in a manner that is accessible to the general public, on the Internet website of CDS Innovations Inc.; and notify the Minister in writing as to when the posting of the prescribed form, as required by paragraph (a), has been made. The time required for a public trust to satisfy the requirements of subsection (2) in respect of the public trust for a taxation year of the public trust is subject to paragraph (b), on or before the day that is 60 days after the end of the taxation year; and where the public trust is, at any time in the taxation year, a public investment trust, on or before the day that is 67 days after the end of the calendar year in which the taxation year ends. Every trust, other than a trust described in any of paragraphs 150(1.2)(a) to (r) of the Act, that is required to file a return of income under subsection 150(1) of the Act, shall provide information that includes the name, address, date of birth (in the case of an individual other than a trust), jurisdiction of residence and TIN (as defined in subsection 270(1) of the Act) for each person or partnership who, in the year, is a trustee, beneficiary (subject to subsection (2)) or settlor of the trust; or has the ability (through the terms of the trust or a related agreement) to exert influence over trustee decisions regarding the appointment of income or capital of the trust. For the purposes of subsection (1), the requirement in paragraph (1)(a) to provide required information in respect of beneficiaries of a trust in a return is met if the required information is provided in respect of each beneficiary of the trust whose identity is known or ascertainable with reasonable effort by the person making the return at the time of filing the return; in respect of a trust, the beneficiaries of which are all of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982, or an identifiable class of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982, the person making the return provides a sufficiently detailed description of the class of beneficiaries to determine with certainty whether any particular person is a member of that class of beneficiaries; the trustee of the trust is a public guardian and trustee authorized under a law of Canada or a Province who, as trustee, who is acting in their capacity as public guardian and trustee, including acting as trustee of a trust pursuant to an order of a court; in respect of a trust that is not described in paragraph 150(1.2)(h) of the Act but which has one or more classes of units that are listed on a designated stock exchange, the person making the return provides the required information regarding the beneficiaries of those classes of units that are not listed on a designated stock exchange; in respect of beneficiaries not described in paragraphs (a) to (c), the person making the return provides sufficiently detailed information to determine with certainty whether any particular person is a beneficiary of the trust; and in respect of a trust that is an alter ego trust or a joint spousal or common-law partner trust, the person making the return provides the required information regarding the beneficiaries of the trust, other than those beneficiaries who are beneficiaries under the trust solely because of a right of the person to receive any of the trust’s income or capital, if under that right the person may so receive that income or capital only on or after the death after that time of an individual. For the purpose of subsection (1), a settlor of a trust at any time means any person or partnership that has directly or indirectly, in any manner whatever, transferred property to the trust at or before that time, other than a transfer made by the person or partnership to the trust for fair market value consideration or pursuant to a legal obligation to make the transfer. All returns required under this Part shall be filed with the Minister without notice or demand and, unless otherwise specifically provided, on or before the last day of February in each year and shall be in respect of the preceding calendar year. Where a person who is required to make a return under this Part discontinues his business or activity, the return shall be filed within 30 days of the day of the discontinuance of the business or activity and shall be in respect of any calendar year or a portion thereof prior to the discontinuance of the business or activity for which a return has not previously been filed. For the purpose of subsection 162(7.01) of the Act, the following types of information returns are prescribed: For the purpose of subsection 162(7.02) of the Act, the following types of information returns are prescribed and must be filed electronically if more than five information returns of that type are required to be filed for a calendar year: For purposes of subsection 150.1(2.1) of the Act, a prescribed corporation is any corporation except an insurance corporation as defined in subsection 248(1) of the Act; a non-resident corporation; a corporation reporting in functional currency as defined in subsection 261(1) of the Act; or a corporation that is exempt under section 149 of the Act from tax payable. Where a person, who is required to make a return under this Part, has died, such return shall be filed by his legal representative within 90 days of the date of death and shall be in respect of any calendar year or a portion thereof prior to the date of death for which a return has not previously been filed. Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or income of a person who has not filed a return as required by this Part shall file such return. An ownership certificate completed pursuant to section 234 of the Act shall be delivered to the debtor or encashing agent at the time the coupon, warrant or cheque referred to in that section is negotiated. The debtor or encashing agent to whom an ownership certificate has been delivered pursuant to subsection (1) shall forward it to the Minister on or before the 15th day of the month following the month the coupon, warrant or cheque, as the case may be, was negotiated. The operation of section 234 of the Act is extended to a bearer coupon or warrant negotiated by or on behalf of a non-resident person who is subject to tax under Part XIII of the Act in respect of such a coupon or warrant. [Repealed, SOR/2010-93, s. 2] A person who is required by section 200, 201, 202, 203, 204, 212, 214 (other than subsection 214(1.1)), 215 (other than subsection 215(2.1)), 217 or 218, subsection 219(2) or 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer. The copies referred to in subsection (1) shall be sent to the taxpayer at his last known address or delivered to him in person, on or before the date the return is required to be filed with the Minister. A person may send a document, as required under subsection (1), in an electronic format if the person has received the express consent of the taxpayer, and in that case, the person shall send a single copy to the taxpayer, on or before the date on which the return referred to in subsection (1) is to be filed with the Minister. In subsection (3), express consent means consent given in writing or in an electronic format. A person may provide a Statement of Remuneration Paid (T4) information return, a Tuition and Enrolment Certificate, a First Home Savings Account Statement (T4FHSA) information return, a Statement of Pension, Retirement, Annuity, and Other Income (T4A) information return or a Statement of Investment Income (T5) information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless the specified criteria referred to in section 221.01 of the Act are not met; the taxpayer has requested that the information return be provided in paper format; or at the time the return is required to be issued, if the return is a T4, the taxpayer is on extended leave or is no longer an employee of the person, or the taxpayer cannot reasonably be expected to have access to the information return in electronic format. Every person who makes a payment described in section 153 of the Act (including an amount paid that is described in subparagraph 153(1)(a)(ii) of the Act), or who pays or credits, or is deemed by any of Part I, XIII and XIII.2 of the Act to have paid or credited, an amount described in that section, Part XIII or XIII.2 of the Act, shall, on demand by registered letter from the Minister, make an information return in prescribed form containing the information required in the return and shall file the return with the Minister within such reasonable time as is stipulated in the registered letter. Every financial company making a payment in respect of accrued interest by virtue of redemption, assignment or other transfer of a bond, debenture or similar security (other than an income bond, an income debenture or an investment contract in respect of which subsection 201(4) applies) shall make an information return in prescribed form. The return referred to in subsection (1) shall be forwarded to the Minister on or before the 15th day of the month following the month in which the payment referred to in subsection (1) is made. For the purposes of this section, a financial company includes a bank, an investment dealer, a stockbroker, a trust company and an insurance company. The provisions of subsection (1) do not apply to a payment made by one financial company to another financial company. Every trustee of an employees profit sharing plan shall make an information return in prescribed form. Notwithstanding subsection (1), the return required under this section may be filed by the employer instead of by the trustee. An administrator of a PRPP must file with the Minister an information return for each calendar year in prescribed form in respect of the PRPP if an agreement concerning annual information returns has been entered into by the Minister and an authority responsible for the supervision of the PRPP under the Pooled Registered Pension Plans Act or a similar law of a province, on or before the day on which an information return required by that authority is to be filed for the calendar year; and in any other case, on or before May 1 of the following calendar year. Every person who pays any of the following amounts shall make an information return in prescribed form: an amount that is required by subsection 146(8) of the Act to be included in computing the income of a taxpayer for a taxation year; an amount that is an eligible amount, within the meaning of subsection 146.01(1) of the Act; or an amount that is an eligible amount, within the meaning of subsection 146.02(1) of the Act. The issuer of a registered retirement savings plan shall make an information return in prescribed form for each calendar year containing the total fair market value of all property held by the plan at the end of the year. If, in a taxation year, subsection 146(7), (9) or (10) of the Act or, in relation to a non-qualified investment, subsection 207.04(1) or (4) of the Act applies in respect of a trust governed by a registered retirement savings plan, the trustee of the plan shall make an information return in prescribed form. Where, in respect of an amended plan referred to in subsection 146(12) of the Act, an amount is required to be included in computing the income of a taxpayer for a taxation year, the issuer of the plan shall make an information return in prescribed form. Where subsection 146(8.8) of the Act deems an amount to be received by an annuitant as a benefit out of or under a registered retirement savings plan and such amount is required by subsection 146(8) of the Act to be included in computing the income of that annuitant for a taxation year, the issuer of the plan shall make an information return in prescribed form. If a payment or transfer of property to which paragraph 146(16)(b) of the Act applies is made from a plan, the issuer of the plan shall make an information return in prescribed form in respect of the payment or transfer. Where an amount may be deducted under subsection 146(8.92) of the Act in computing the income of a deceased annuitant under a registered retirement savings plan, the issuer of the plan shall make an information return in prescribed form in respect of the amount. In this section, annuitant and issuer have the meanings assigned by subsection 146(1) of the Act. The issuer of a registered retirement savings plan shall make an information return in prescribed form in respect of the amounts that have been paid by the annuitant, or by the spouse or common-law partner of the annuitant, under the plan in a contribution year as consideration for any contract referred to in paragraph (a) of the definition retirement savings plan in subsection 146(1) of the Act to pay a retirement income; or as a contribution or deposit referred to in paragraph (b) of that definition for the purpose stated in that paragraph. For greater certainty and for the purposes of subsection (1), amounts that have been paid do not include amounts that have been paid or transferred under the plan in accordance with subsection 146(16) of the Act, or those that have been transferred under the plan in accordance with any of subsections 146(21), 146.3(14), 147(19) or 147.3(1), (4) or (5) to (7) of the Act. The return shall be filed with the Minister on or before the 1st day of May of the year in which the contribution year ends and shall be in respect of the contribution year. contribution year means the period beginning on the 61st day of one year and ending on the 60th day of the following year. (année de contribution) issuer has the same meaning as in subsection 146(1) of the Act, with any modifications that the circumstances require. (émetteur) The administrator of a pooled registered pension plan shall make an information return in prescribed form in respect of the amount of contributions made to the account of a member of the plan by the member in a contribution year; or an employer of the member in the taxation year of the member that ends in the contribution year. For greater certainty and for the purposes of subsection (1), amounts contributed to the member’s account do not include amounts that have been transferred to the account in accordance with any of subsections 146(16) and (21), 146.3(14), 147(19), 147.3(1), (4) and (5) to (7) and 147.5(21) of the Act. The return shall be filed with the Minister on or before the 1st day of May of the year in which the contribution year ends and shall be in respect of the contribution year in the case of contributions made by the member; and the taxation year of the member that ends in the contribution year in the case of contributions made by an employer. administrator has the same meaning as in subsection 147.5(1) of the Act. (administrateur) member has the same meaning as in subsection 147.5(1) of the Act. (participant) In this section, annuitant and carrier have the meanings assigned by subsection 146.3(1) of the Act. Every carrier of a registered retirement income fund who pays out of or under it an amount any portion of which is required under subsection 146.3(5) of the Act to be included in computing the income of a taxpayer shall make an information return in prescribed form in respect of the amount. Every carrier of a registered retirement income fund shall make an information return in prescribed form for each calendar year containing the total fair market value of all property held by the fund at the end of the year. If subsection 146.3(4), (7) or (10) of the Act or, in relation to a non-qualified investment, subsection 207.04(1) or (4) of the Act applies in respect of any transaction or event with respect to property of a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the transaction or event. Where an amount is deemed under subsection 146.3(6) or (12) of the Act to be received by an annuitant out of or under a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the amount. If a transfer of an amount to which subsection 146.3(14) of the Act applies is made from a fund, the carrier of the fund shall make an information return in prescribed form in respect of the transfer. Where an amount may be deducted under subsection 146.3(6.3) of the Act in computing the income of a deceased annuitant under a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the amount. In this section, designated entity means an administrator of a registered pension plan; an administrator of a pooled registered pension plan; an issuer of a registered retirement savings plan; a carrier of a registered retirement income fund; and a trustee of a deferred profit sharing plan. A designated entity that transfers an amount to acquire an advanced life deferred annuity for an individual shall make an information return in prescribed form in respect of the year in which the transfer was made. A licensed annuities provider shall make an information return in prescribed form in respect of a year in which a payment is made that is required by section 146.5 of the Act to be included in computing the income of a taxpayer; or a refund described in paragraph (g) of the definition advanced life deferred annuity in subsection 146.5(1) of the Act was received by a taxpayer. In this section, disposition has the meaning assigned by subsection 148(9) of the Act and includes anything deemed to be a disposition of a life insurance policy under subsection 148(2) of the Act; (disposition) insurer has the meaning assigned by paragraph 148(10)(a) of the Act; (assureur) life insurance policy[Repealed, SOR/2011-188, s. 4] Where by reason of a disposition of an interest in a life insurance policy an amount is required, pursuant to paragraph 56(1)(j) of the Act, to be included in computing the income of a taxpayer and the insurer that is the issuer of the policy is a party to, or is notified in writing of, the disposition, the insurer shall make an information return in prescribed form in respect of the amount. Every person who, within the meaning of section 135 of the Act, makes payments to residents of Canada pursuant to an allocation in proportion to patronage shall make an information return in prescribed form in respect of payments so made. Every person who receives a payment referred to in subsection (1) as nominee or agent for another person resident in Canada shall make an information return in prescribed form in respect of the payment so received. An issuer of a FHSA shall make an information return for each calendar year in prescribed form and manner in respect of the FHSA. An issuer of a FHSA shall make an information return in prescribed form and manner in respect of any calendar year in which one or more of the following occurs:

the holder makes a contribution to the FHSA; an amount has been transferred to the FHSA from an RRSP under which the holder is an annuitant; an amount is required to be included in the income of a taxpayer under section 146.6 of the Act; the holder makes a qualifying withdrawal from the FHSA; or the holder designates an amount under the definition designated amount in subsection 207.01(1) of the Act. An issuer of a FHSA that governs a trust shall notify the holder of the FHSA in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year, the trust acquires or disposes of property that is a non-qualified investment (as defined in subsection 207.01(1) of the Act) for the trust; or property held by the trust becomes or ceases to be a non-qualified investment (as defined in subsection 207.01(1) of the Act) for the trust. Every person authorized to redeem Canada Savings Bonds (in this section referred to as the “redemption agent”) who pays an amount in respect of a Canada Savings Bond as a cash bonus that the Government of Canada has undertaken to pay (other than an amount of interest, bonus or principal agreed to be paid at the time of the issue of the bond under the terms of the bond) shall make an information return in prescribed form in respect of such payment. Every redemption agent required by subsection (1) to make an information return shall issue to the payee, at the time the cash bonus is paid, two copies of the portion of the return relating to him; and file the return with the Minister on or before the 15th day of the month following the month in which the cash bonus was paid. In this section, reporting person means a mutual fund corporation; an investment corporation; a mutual fund trust; [Repealed, SOR/2005-264, s. 4] a trust that would be a mutual fund trust if Part XLVIII were read without reference to paragraph 4801(b); or a small business investment trust (within the meaning assigned by subsection 5103(1)). Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 146.4, 204 or 207.01 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form. The issuer of a RDSP, or the promoter of a RESP, that governs a trust shall notify the holders of the RDSP, or subscribers of the RESP, in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year, the trust acquires or disposes of property that is a not a qualified investment for the trust; or property held by the trust becomes or ceases to be a qualified investment for the trust. An issuer of a TFSA shall make an information return for each calendar year in prescribed form in respect of the TFSA. An issuer of a TFSA who makes a payment of an amount that is required because of paragraph 146.2(9)(b) of the Act to be included in computing the income of a taxpayer for a taxation year shall make an information return in prescribed form. An issuer of a TFSA that governs a trust shall notify the holder of the TFSA in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year, the trust acquires or disposes of property that is a non-qualified investment for the trust; or property held by the trust becomes or ceases to be a non-qualified investment for the trust. Where an amount has been paid to a person pursuant to a program prescribed for the purposes of paragraphs 12(1)(u), 56(1)(s) and 212(1)(s) of the Act, the payor shall make an information return in prescribed form in respect of such payment; and forward to the person at his latest known address on or before the date the return is required to be filed with the Minister two copies of the portion of the return relating to that person. Where principal photography or taping of a film or tape (within the meanings assigned by subsection 1100(21)) has occurred during a year or has been completed within 60 days after the end of the year, the producer of the film or tape or production company that produced the film or tape, or an agent of the producer or production company, shall make an information return in prescribed form in respect of any person who owns an interest in the film or tape at the end of the year; and forward to the person referred to in paragraph (a) at his latest known address on or before the date the return is required to be filed with the Minister two copies of the portion of the return relating to that person. The return required under this section shall be filed on or before March 31st and shall be in respect of the preceding calendar year. administrator has the meaning assigned by paragraph 47.1(1)(a) of the Act; (administrateur) designated security means a security issued or granted by a corporation in respect of which the corporation has designated an amount pursuant to subsection 194(4) of the Act; (titre désigné) first purchaser in relation to a designated security, means the first person (other than a trader or dealer in securities) to be the registered holder of the designated security; (premier acheteur) security means a share of the capital stock of a corporation, a debt obligation issued by a corporation, or a right granted by a corporation under a scientific research financing contract; (titre) trader or dealer in securities has the meaning assigned by paragraph 47.1(1)(l) of the Act. (négociant ou courtier en valeurs) Each corporation that has designated an amount under subsection 194(4) of the Act in respect of a security issued or granted by it shall make an information return in prescribed form in respect of each such security. Each trader or dealer in securities who has acquired and disposed of a designated security during the course of the primary distribution thereof pursuant to a public offering shall make an information return in prescribed form in respect of each such designated security. Each bank, credit union and trust company that, as agent, acquired a designated security for the first purchaser thereof shall make an information return in prescribed form in respect of each such designated security. Each trader or dealer in securities who, as administrator of an indexed security investment plan, acquired a designated security for the first purchaser thereof shall make an information return in prescribed form in respect of each such designated security. Notwithstanting subsection 205(1), any return required to be made under subsection (2), in respect of a security issued by a corporation before March 1, 1984, under subsection (3), in respect of a designated security disposed of as described in subsection (3) before March 1, 1984, or under subsection (4) or (5), in respect of a designated security acquired as described in subsection (4) or (5), as the case may be, before March 1, 1984, shall be filed on or before March 31, 1984. designated share means a share of the capital stock of a corporation in respect of which the corporation has designated an amount pursuant to subsection 192(4) of the Act; (action désignée) first purchaser, in relation to a designated share, means the first person (other than a trader or dealer in securities) to be the registered holder of the share; (premier acheteur) Each corporation that has designated an amount under subsection 192(4) of the Act in respect of a share issued by it shall make an information return in prescribed form in respect of each such share. Each trader or dealer in securities who has acquired and disposed of a designated share during the course of the primary distribution thereof pursuant to a public offering shall make an information return in prescribed form in respect of each such designated share. Each bank, credit union and trust company that, as agent, acquired a designated share for the first purchaser thereof shall make an information return in prescribed form in respect of each such designated share. Each trader or dealer in securities who, as administrator of an indexed security investment plan, acquired a designated share for the first purchaser thereof shall make an information return in prescribed form in respect of each such designated share. Each corporation that has renounced an amount under subsection 66(12.6), (12.601), (12.62) or (12.64) of the Act to a person shall make an information return in prescribed form in respect of the amount renounced. The return required under subsection (1) shall be filed with the Minister together with the prescribed form required to be filed under subsection 66(12.7) of the Act in respect of the amount renounced. Every member, of a partnership that carries on a business in Canada at any time in a fiscal period of the partnership (other than a member that is, because of subsection 115.2(2) of the Act, not considered to be carrying on business in Canada at that time), or of a partnership that is at any time in a fiscal period of the partnership, a Canadian partnership or a SIFT partnership, shall make for that period an information return in prescribed form containing the following information: the income or loss of the partnership for the fiscal period; in respect of each member of the partnership who is entitled to a share referred to in paragraph (c) or (d) for the fiscal period, the member’s name, address, and business number, Social Insurance Number or trust account number, as the case may be; the share of each member of the income or loss of the partnership for the fiscal period; the share of each member for the fiscal period of each deduction, credit or other amount in respect of the partnership that is relevant in determining the member’s income, taxable income, tax payable or other amount under the Act; the prescribed information contained in the form prescribed for the purposes of subsection 37(1) of the Act, where the partnership has made an expenditure in respect of scientific research and experimental development in the fiscal period; and such other information as may be required by the prescribed form. For the purposes of subsection (1), an information return made by any member of a partnership shall be deemed to have been made by each member of the partnership. Every person who holds an interest in a partnership as nominee or agent for another person shall make an information return in prescribed form in respect of that interest. [Repealed, SOR/93-443, s. 1] Subject to subsection (6), a return required by this section shall be filed with the Minister without notice or demand in the case of a fiscal period of a partnership all the members of which are corporations throughout the fiscal period, within five months after the end of the fiscal period; in the case of a fiscal period of a partnership all the members of which are individuals throughout the fiscal period, on or before the last day of March in the calendar year immediately following the calendar year in which the fiscal period ended or with which the fiscal period ended coincidentally; and in the case of any other fiscal period of a partnership, on or before the earlier of the day that is five months after the end of the fiscal period, and the last day of March in the calendar year immediately following the calendar year in which the fiscal period ended or with which the fiscal period ended coincidentally. Where a partnership discontinues its business or activity, the return required under this section shall be filed, in respect of any fiscal period or portion thereof prior to the discontinuance of the business or activity for which a return has not previously been filed under this section, on or before the earlier of the day that is 90 days after the discontinuance of the business or activity, and the day the return is required to be filed under subsection (5). The definitions in this subsection apply in this section. public investment partnership, at any time, means a public partnership all or substantially all of the fair market value of the property of which is, at that time, attributable to the fair market value of property of the partnership that is units of public trusts (as defined in subsection 204.1(1)); partnership interests in public partnerships; any combination of properties referred to in paragraphs (a) to (c). (société de personnes de placement ouverte) public partnership, at any time, means a partnership the partnership interests in which are, at that time, listed on a designated stock exchange in Canada if, at that time, the partnership carries on a business in Canada or is a Canadian partnership. (société de personnes ouverte) Every member of a partnership that is, at any time in a fiscal period of the partnership, a public partnership shall, within the time required by subsection (3), make public, in prescribed form, information in respect of the public partnership for the fiscal period by posting the prescribed form, in a manner that is accessible to the general public, on the Internet website of CDS Innovations Inc.; and The time required for the members of a public partnership to satisfy the requirements of subsection (2) in respect of the public partnership for a fiscal period of the public partnership is subject to paragraph (b), on or before the day that is the earlier of 60 days after the end of the calendar year in which the fiscal period ends, and four months after the end of the fiscal period; and where the public partnership is, at any time in the fiscal period, a public investment partnership, on or before the day that is 67 days after the end of the calendar year in which the fiscal period ends. Every member of a partnership that is required to satisfy the requirements of subsection (2) in respect of the partnership for a fiscal period of the partnership will be deemed to have satisfied those requirements if a particular member of the partnership, who has authority to act for the partnership, has satisfied those requirements in respect of the partnership for the fiscal period. publicly traded means, with respect to any security, a security that is listed or posted for trading on a stock exchange, commodity exchange, futures exchange or any other exchange, or a security in respect of the sale and distribution of which a prospectus, registration statement or similar document has been filed with a public authority; (négocié sur le marché) sale includes the granting of an option and a short sale; (vente) a publicly traded share of the capital stock of a corporation, a publicly traded debt obligation, a debt obligation of or guaranteed by the Government of Canada, the government of a province or an agent thereof, a municipality in Canada, a municipal or public body performing a function of government in Canada, or the government of a foreign country or of a political subdivision of a foreign country or a local authority of such a government, a debt obligation that is, at any time, described in paragraph 7000(1)(d), a publicly traded interest in a trust, a publicly traded interest in a partnership, an option or contract in respect of any property described in any of paragraphs (a) to (e), or a publicly traded option or contract in respect of any property including any commodity, financial futures, foreign currency or precious metal or in respect of any index relating to any property; (titre) trader or dealer in securities means a person who is registered or licensed under the laws of a province to trade in securities, or a person who in the ordinary course of business makes sales of securities as agent on behalf of others. (négociant ou courtier en valeurs) Every trader or dealer in securities who, in a calendar year, purchases a security as principal or sells a security as agent for any vendor shall make an information return for the year in prescribed form in respect of the purchase or sale. Every person (other than an individual who is not a trust) who in a calendar year redeems, acquires or cancels in any manner whatever any securities issued by that person shall make an information return for the year in prescribed form in respect of each such transaction, other than a transaction to which section 51, 51.1, 86 (if there is no consideration receivable other than new shares) or 87 or subsection 98(3) or (6) of the Act applies. Subsection (3) applies to Her Majesty in right of Canada or a province; a municipal or public body performing a function of government in Canada; and an agent of a person referred to in paragraph (a) or (b). Every person who, in the ordinary course of a business of buying and selling precious metals in the form of certificates, bullion or coins, makes a payment in a calendar year to another person in respect of a sale by that other person of any such property shall make an information return for that year in prescribed form in respect of each such sale. Every person who, while acting as nominee or agent for another person in respect of a sale or other transaction to which subsection (2), (3) or (5) applies, receives the proceeds of the sale or other transaction shall, where the transaction is carried out in the name of the nominee or agent, make an information return in prescribed form in respect of the sale or other transaction. This section does not apply in respect of a purchase of a security by a trader or dealer in securities from another trader or dealer in securities other than a non-resident trader or dealer in securities; a sale of currencies or precious metals in the form of jewellery, works of art or numismatic coins; a sale of precious metals by a person who, in the ordinary course of business, produces or sells precious metals in bulk or in commercial quantities; a sale of securities by a trader or dealer in securities on behalf of a person who is exempt from tax under Part I of the Act; or a redemption by the issuer or an agent of the issuer of a debt obligation where the debt obligation was issued for its principal amount, the redemption satisfies all of the issuer’s obligations in respect of the debt obligation, each person with an interest in the debt obligation is entitled in respect thereof to a proportion of all payments of principal equal to the proportion to which the person is entitled of all payments other than principal, and an information return is required under another section of this Part to be made as a result of the redemption in respect of each person with an interest in the debt obligation. [Repealed, SOR/2011-188, s. 5] Every person who pays an amount in respect of compensation described in subparagraph 110(1)(f)(ii) of the Act shall make an information return in prescribed form in respect of that payment. Where a worker’s compensation board, or a similar body, adjudicates a claim for compensation described in subparagraph 110(1)(f)(ii) of the Act and stipulates the amount of the award, that board or body shall make an information return in prescribed form in respect of the amount of the award. A return required under this section must be filed on or before the last day of February of each year and shall be in respect of the preceding calendar year, if the return is required under subsection (1); and the amount of the award that pertains to the preceding calendar year, if the return is required under subsection (2). Subsections (1) and (2) are not applicable in respect of a payment or an award in respect of medical expenses incurred by or on behalf of the employee; funeral expenses in respect of the employee; legal expenses in respect of the employee; job training or counselling of the employee; or the death of the employee, other than periodic payments made after the death of the employee. Every person who makes a payment described in paragraph 56(1)(u) of the Act shall make an information return in prescribed form in respect of the payment. Subsection (1) is not applicable in respect of a payment that is in respect of medical expenses incurred by or on behalf of the payee; is in respect of child care expenses, as defined in subsection 63(3) of the Act, incurred by or on behalf of the payee or a person related to the payee; is in respect of funeral expenses in respect of a person related to the payee; is in respect of legal expenses incurred by or on behalf of the payee or a person related to the payee; is in respect of job training or counselling of the payee or a person related to the payee; is paid in a particular year as a part of a series of payments, the total of which in the particular year does not exceed $500; or is not a part of a series of payments. Every government, municipality or municipal or other public body (in sections 235 and 236 referred to as the “government payer”) or producer organization or association that makes a payment of an amount that is a farm support payment (other than an amount paid out of a net income stabilization account) to a person or partnership shall make an information return in prescribed form in respect of the amount. For the purposes of subsection (1) farm support payment includes a payment that is computed with respect to an area of farm land; a payment that is made in respect of a unit of farm commodity grown or disposed of or a farm animal raised or disposed of; and a rebate of, or compensation for, all or a portion of a cost or capital cost incurred in respect of farming, or unsowed or unplanted land or crops, or destroyed crops, farm animals or other farm output. Every corporation or trust for which an information return is required to be made under these Regulations by a government payer or by a producer organization or association shall provide its legal name, address and income tax identification number to the government payer or the producer organization or association, as the case may be. Every person who is a member of a partnership for which an information return is required to be made under these Regulations by a government payer or by a producer organization or association shall provide the government payer or the producer organization or association, as the case may be, with the following information: the person’s legal name, address and Social Insurance Number, or, where the person is a trust or is not an individual, the person’s income tax identification number; and the partnership’s name and business address. federal body means a department or a Crown corporation, within the meaning of section 2 of the Financial Administration Act. (organisme fédéral) payee means a person or partnership to whom an amount is paid or credited in respect of goods for sale or lease, or services rendered, by or on behalf of the person or the partnership. (bénéficiaire) A federal body that pays or credits an amount to a payee shall file an information return in prescribed form in respect of the amount on or before March 31 in each year in respect of the preceding calendar year. Subsection (2) does not apply in respect of an amount all or substantially all of which is paid or credited in the year in respect of goods for sale or lease by the payee; to which section 212 of the Act applies; that is not required to be included in computing the income of the payee, if the payee is an employee of the federal body; that is paid or credited in respect of services rendered outside Canada by a payee who was not resident in Canada during the period in which the services were rendered; or that is paid or credited in respect of a program administered under the Witness Protection Program Act or any other similar program. In this section, construction activities includes the erection, excavation, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of all or any part of a building, structure, surface or sub-surface construction, or any similar property. Every person or partnership that pays or credits, in a reporting period, an amount in respect of goods or services rendered on their behalf in the course of construction activities shall make an information return in the prescribed form in respect of that amount, if the person’s or partnership’s business income for that reporting period is derived primarily from those activities. The reporting period may be either on a calendar year basis or a fiscal period basis. Once a period is chosen, it cannot be changed for subsequent years, unless the Minister authorizes it. The return shall be filed within six months after the end of the reporting period to which it pertains. all of which is paid or credited in the reporting period in respect of goods for sale or lease by the person or partnership; to which section 212 of the Act applies; or that is paid or credited in respect of services rendered outside Canada by a person or partnership who was not resident in Canada during the period in which the services were rendered. For the purposes of paragraphs 32.1(3)(b) and 60(a) of the Act, where an annuity is paid under a contract (other than an income-averaging annuity contract or an annuity contract purchased pursuant to a deferred profit sharing plan or pursuant to a plan referred to in subsection 147(15) of the Act as a “revoked plan”) at a particular time, that part of the annuity payment determined in prescribed manner to be a return of capital is that proportion of a taxpayer’s interest in the annuity payment that the adjusted purchase price of the taxpayer’s interest in the contract at that particular time is of his interest, immediately before the commencement under the contract of payments to which paragraph 56(1)(d) of the Act applies, in the total of the payments to be made under the contract, in the case of a contract for a term of years certain; or expected to be made under the contract, in the case of a contract under which the continuation of the payments depends in whole or in part on the survival of an individual. For the purposes of subsections (1) and (2), “annuity payment” does not include any portion of a payment under a contract the amount of which cannot be reasonably determined immediately before the commencement of payments under the contract except where the payment of such portion cannot be so determined because the continuation of the annuity payments under the contract depends in whole or in part on the survival of an individual. For the purposes of this section, if the continuance of the annuity payments under a contract depends in whole or in part on the survival of an individual, the total of the payments expected to be made under the contract is in the case of a contract that provides for equal payments and does not provide for a guaranteed period of payment, to be equal to the product obtained by multiplying the total of the annuity payments expected to be received throughout a year under the contract by the complete expectations of life determined using the table of mortality known as the 1971 Individual Annuity Mortality Table as published in Volume XXIII of the Transactions of the Society of Actuaries, if the annuity rates in respect of the contract were fixed and determined before 2017, and annuity payments under the contract commenced before 2017, or on December 31, 2016, the contract would be a prescribed annuity contract if paragraph 304(1)(c) were read without reference to its subparagraph (i) and the contract cannot be terminated other than on the death of an individual on whose life payments under the contract are contingent, and in any other case, using the table of mortality known as the Annuity 2000 Basic Table as published in the Transactions of Society of Actuaries, 1995–96 Reports, and in any other case, to be calculated in accordance with subparagraph (i) with such modifications as the circumstances may require; the age of the individual on any particular date as of which a calculation is being made is if the life insured was determined by the insurer that issued the contract to be a substandard life at the time the contract was issued and the Annuity 2000 Basic Table as published in the Transactions of Society of Actuaries, 1995–96 Reports applies to determine the total of the payments expected to be made under the contract, the age that is equal to the total of the age used for the purpose of determining the annuity rate under the policy at the date of issue of the contract and the number determined by subtracting the calendar year in which the contract was issued from the calendar year in which the particular date occurs, and in any other case, determined by subtracting the calendar year of the individual’s birth from the calendar year in which the particular date occurs; and if, in the event of the death of the individual before the annual payments total a stated sum, the contract provides that the unpaid balance of the stated sum is to be paid in a lump sum or instalments, then for the purpose of determining the expected term of the contract, the contract is deemed to provide for the continuance of the payments under the contract for a minimum term certain equal to the nearest whole number of years required to complete the payment of the stated sum. Where an annuity contract is a life annuity contract entered into before November 17, 1978 under which the annuity payments commence on the death of an individual, [Repealed, SOR/83-865, s. 1] an annuity contract (other than an annuity contract described in paragraph (a)) is a life annuity contract entered into before October 23, 1968, or any other annuity contract entered into before January 4, 1968, under which the annuity payments commence on the expiration of a term of years, and before the later of January 1, 1970 and the tax anniversary date of the annuity contract, the adjusted purchase price of a taxpayer’s interest in the annuity contract shall be the lump sum, if any, that the person entitled to the annuity payments might have accepted in lieu thereof, at the date the annuity payments commence; if no lump sum described in paragraph (c) is provided for in the contract, the sum ascertainable from the contract as the present value of the annuity at the date the annuity payments commence; and if no lump sum described in paragraph (c) is provided for in the contract and no sum is ascertainable under paragraph (d), in the case of a contract issued under the Government Annuities Act, the premiums paid, accumulated with interest at the rate of four per cent per annum to the date the annuity payments commence, and in the case of any other contract, the present value of the annuity payments at the date on which payments under the contract commence, computed by applying a rate of interest of four per cent per annum where the payments commence before 1972 and 5 1/2 per cent per annum where the payments commence after 1971, and the provisions of subsection (2) where the payments depend on the survival of a person. Where an annuity contract would be described in paragraph (3)(b) if the reference in subparagraph (iv) thereof to “before the later of” were read as a reference to “on or after the later of”, the adjusted purchase price of a taxpayer’s interest in the annuity contract at a particular time shall be the greater of the aggregate of the amount that would be determined in respect of that interest under paragraph (3)(c), (d) or (e), as the case may be, if the date referred to therein was the tax anniversary date of the contract and not the date the annuity payments commence, and the adjusted purchase price that would be determined in respect of that interest if the expression “before that time” in the descriptions of A, B, C, D and H in the definition adjusted cost basis in subsection 148(9) of the Act were read as “before that time and after the tax anniversary date”; and the amount determined under paragraph (2)(b) in respect of that interest. For the purposes of this Part and section 148 of the Act, life annuity contract means a contract under which a person authorized under the laws of Canada or of a province to carry on in Canada an annuities business agrees to make annuity payments to one person or partnership (in this section referred to as “the annuitant”) or jointly to two or more annuitants, which annuity payments are, under the terms of the contract, to be paid annually or at more frequent periodic intervals; to commence on a specified day; and to continue throughout the lifetime of one or more individuals (each of whom is referred to in this section as “the identified individual”). For the purposes of subsection (1), a contract shall not fail to be a life annuity contract by reason that the contract provides that the annuity payments may be assigned by the annuitant or owner; the contract provides for annuity payments to be made for a period ending on the death of the identified individual or for a specified period of not less than 10 years, whichever is the lesser; the contract provides for annuity payments to be made for a specified period or throughout the lifetime of the identified individual, whichever is longer, to the annuitant and, if the specified period is longer, to a specified person after that period; the contract provides, in addition to the annuity payments to be made throughout the lifetime of the identified individual, for a payment to be made on the death of the identified individual; the contract provides that the date on which the annuity payments commence, or on which the contract holder becomes entitled to proceeds of the disposition, may be changed with respect to the whole contract or any portion thereof at the option of the annuitant or owner; or the contract provides that all or a portion of the proceeds payable at any particular time under the contract may be received in the form of an annuity contract other than a life annuity contract. [Repealed, SOR/83-865, s. 3] Where in a taxation year the rights of a holder under an annuity contract cease upon termination or cancellation of the contract and the aggregate of all amounts, each of which is an amount in respect of the contract that was included in computing the income of the holder for the year or any previous taxation year by virtue of subsection 12(3) of the Act exceeds the aggregate of such proportion of the amount determined under paragraph (a) that the annuity payments made under the contract before the rights of the holder have ceased is of the total of the payments expected to be made under the contract, and the aggregate of all amounts, each of which is an amount in respect of the contract that was deductible in computing the income of the holder for the year or any previous year by virtue of subsection (2), the amount of such excess may be deducted by the holder under subsection 20(19) of the Act in computing his income for the year. For the purposes of subsection 20(19) of the Act, where an annuity contract was acquired after December 19, 1980 and annuity payments under the contract commenced before 1982, the amount that may be deducted by a holder under that subsection in respect of an annuity contract for a taxation year is that proportion of the aggregate of all amounts, each of which is an amount that was included in computing the income of the holder for any previous taxation year by virtue of subsection 12(3) of the Act in respect of the contract that the aggregate of all annuity payments received by the holder in the year in respect of the contract is of the total of the payments determined under paragraph 300(1)(a) or (b) in respect of the holder’s interest in the contract. For the purposes of this Part and of subsections 12.2(1) and 20(20) and paragraph 148(2)(b) of the Act, prescribed annuity contract, for a taxation year, means an annuity contract that is, or is issued pursuant to, an arrangement described in any of paragraphs 148(1)(a) to (b.4) and (d) of the Act; an annuity contract described in paragraph 148(1)(c) or (e) of the Act; and an annuity contract under which annuity payments have commenced in the taxation year or a preceding taxation year, issued by any one of the following (referred to in this section as the “issuer”): a life insurance corporation, a registered charity, a corporation referred to in any of paragraphs (a) to (c) of the definition specified financial institution in subsection 248(1) of the Act, a corporation referred to in subparagraph (b)(ii) of the definition retirement savings plan in subsection 146(1) of the Act, and a corporation (other than a mutual fund corporation or a mortgage investment corporation) the principal business of which is the making of loans, each holder of which an individual other than a trust, a trust described in paragraph 104(4)(a) of the Act (in this paragraph referred to as a “specified trust”), a trust that is a qualified disability trust (as defined in subsection 122(3) of the Act) for the taxation year in which the annuity is issued, or if the annuity is issued before 2016, a trust that is a testamentary trust at the time the annuity is issued, is an annuitant under the contract, and throughout the taxation year, dealt at arm’s length with the issuer, the terms and conditions of which require that, from the time the contract meets the requirements of this paragraph, all payments made out of the contract be equal annuity payments made at regular intervals but not less frequently than annually, subject to the holder’s right to vary the frequency and quantum of payments to be made out of the contract in any taxation year without altering the present value at the beginning of the year of the total payments to be made in that year out of the contract, the annuity payments thereunder continue for a fixed term or if the holder is an individual (other than a trust), for the life of the first holder or until the day of the later of the death of the first holder and the death of any of the spouse, common-law partner, former spouse, former common-law partner, brothers and sisters (in this subparagraph referred to as “the survivor”) of the first holder, or if the holder is a trust in the case of a specified trust, for the life of an individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death, or, in the case of a joint spousal or common-law partner trust, until the day of the later of the death of the individual and the death of the beneficiary under the trust who is the individual’s spouse or common-law partner, in the case of a qualified disability trust, for the life of an individual who is an electing beneficiary (as defined in subsection 122(3) of the Act) of the trust for the taxation year in which the annuity is issued, in the case of a trust (other than a qualified disability trust or specified trust) where the annuity is issued before October 24, 2012, for the life of an individual who is entitled to receive income from the trust, and in the case of a trust (other than a qualified disability trust or specified trust) where the annuity is issued after October 23, 2012, for the life of an individual who was entitled when the contract was first held to receive all of the trust’s income that is from an amount received by the trust on or before the individual’s death as a payment under the annuity, if the annuity payments are to be made over a term that is guaranteed or fixed, the guaranteed or fixed term not exceed 91 years minus the age, when the contract was first held, in whole years of the following individual: if the holder is not a trust, the individual who is in the case of a joint and last survivor annuity, the younger of the first holder and the survivor, in the case of a contract that is held jointly, the younger of the first holders, and in any other case, the first holder, if the holder is a specified trust, the individual who is in the case of a joint and last survivor annuity held by a joint spousal or common-law partner trust, the younger of the individuals referred to in paragraph 104(4)(a) of the Act who are in combination entitled to receive all of the income of the trust that arose before the later of their deaths, and in the case of an annuity that is not a joint and last survivor annuity, the individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death, if the holder is a qualified disability trust, an individual who is an electing beneficiary of the trust for the taxation year in which the annuity is issued, and if the holder is a trust (other than a qualified disability trust or specified trust) and the annuity is issued before 2016, the individual who was the youngest beneficiary under the trust when the contract was first held, no loans exist under the contract, the holder’s rights under the contract not be disposed of otherwise than if the holder is an individual, on the holder’s death, if the holder is a specified trust (other than a joint spousal or common-law partner trust), on the death of the individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death, if the holder is a specified trust that is a joint spousal or common-law partner trust, on the later of the deaths of the individuals referred to in paragraph 104(4)(a) of the Act who are in combination entitled to receive all of the income of the trust that arose before the later of their deaths, and if the holder is a trust, other than a specified trust, and the contract is first held after October 2011, on the earlier of the time at which the trust ceases to be a testamentary trust, and the death of the individual referred to in subclause (B)(II) or (C)(III) or (IV), as the case may be, in respect of the trust, and no payments be made out of the contract other than as permitted by this section, none of the terms and conditions of which provide for any recourse against the issuer for failure to make any payment under the contract, and where annuity payments under the contract have commenced before 1987, in respect of which a holder thereof has notified the issuer in writing, before the end of the taxation year, that the contract is to be treated as a prescribed annuity contract, after 1986, in respect of which a holder thereof has not notified the issuer in writing, before the end of the taxation year in which the annuity payments under the contract commenced, that the contract is not to be treated as a prescribed annuity contract, or after 1986, in respect of which a holder thereof has notified the issuer in writing, before the end of the taxation year in which the annuity payments under the contract commenced, that the contract is not to be treated as a prescribed annuity contract and a holder thereof has rescinded the notification by so notifying the issuer in writing before the end of the taxation year. Notwithstanding subsection (1), an annuity contract shall not fail to be a prescribed annuity contract by reason that where the contract provides for a joint and last survivor annuity or is held jointly, the terms and conditions thereof provide that there will be a decrease in the amount of the annuity payments to be made under the contract from the time of death of one of the annuitants thereunder; the terms and conditions thereof provide that where the holder thereof dies at or before the time he attains the age of 91 years, the contract will terminate and an amount will be paid out of the contract not exceeding the amount, if any, by which the total premiums paid under the contract exceeds the total annuity payments made under the contract; where the annuity payments are to be made over a term that is guaranteed or fixed, the terms and conditions thereof provide that as a consequence of the death of the holder thereof during the guaranteed or fixed term any payments that, but for the death of the holder, would be made during the term may be commuted into a single payment; or the terms and conditions thereof, as they read on December 1, 1982 and at all subsequent times, provide that the holder participates in the investment earnings of the issuer and that the amount of such participation is to be paid within 60 days after the end of the year in respect of which it is determined. For the purposes of this section, the annuitant under an annuity contract is deemed to be the holder of the contract where the contract is held by another person in trust for the annuitant; or the contract was acquired by the annuitant under a group term life insurance policy under which life insurance was effected on the life of another person in respect of, in the course of, or by virtue of the office or employment or former office or employment of that other person. In this section, annuitant under an annuity contract, at any time, means a person who, at that time, is entitled to receive annuity payments under the contract. For the purpose of this section, spouse and former spouse of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual. [Repealed, SOR/2011-188, s. 9] For the purposes of this Part and subsection 12.2(11) of the Act, exempt policy at any time means a life insurance policy (other than an annuity contract, LIA policy or a deposit administration fund policy) in respect of which the following conditions are met at that time: if that time is a policy anniversary of the policy, the accumulating fund of the policy at that time (determined without regard to any policy loan) does not exceed the total of the accumulating funds at that time of the exemption test policies issued at or before that time in respect of the policy; assuming that the terms and conditions of the policy do not change from those in effect on the last policy anniversary of the policy at or before that time and, where necessary, making reasonable assumptions about all other factors (including, in the case of a participating life insurance policy within the meaning assigned by subsection 138(12) of the Act, the assumption that the amounts of dividends paid will be as shown in the dividend scale), if the policy is issued before 2017, it is reasonable to expect that the condition in paragraph (a) will be met on each policy anniversary of the policy on which the policy could remain in force after that time and before the endowment date of the exemption test policies issued in respect of the policy, and if the policy is issued after 2016, it is reasonable to expect — without reference to any automatic adjustments under the policy that may be made after that time to ensure that the policy is an exempt policy and, where applicable, making projections using the most recent values that are used to calculate the accumulating fund in respect of the policy or in respect of each exemption test policy issued in respect of a coverage under the policy, as the case may be — that the condition in paragraph (a) will be met on the policy’s next policy anniversary; the condition in paragraph (a) was met on all policy anniversaries of the policy before that time; and the condition in paragraph (b) was met at all times on and after the first policy anniversary of the policy and before that time. For the purposes of subsection (1), a life insurance policy that is an exempt policy on its first policy anniversary shall be deemed to have been an exempt policy from the time of its issue until that anniversary.

For the purposes of this section and section 307, in the case of a life insurance policy issued before 2017, a separate exemption test policy is deemed, subject to subsection (7), to be issued in respect of the life insurance policy on the date of issue of the life insurance policy, and on each policy anniversary of the life insurance policy on which the amount of the benefit on death under the life insurance policy exceeds 108% of the amount of the benefit on death under the life insurance policy on the later of the life insurance policy’s date of issue and the date of the life insurance policy’s preceding policy anniversary, if any; and in the case of a life insurance policy issued after 2016, a separate exemption test policy is deemed, subject to subsection (7), to be issued in respect of each coverage under the life insurance policy on the date of issue of the life insurance policy, if the coverage is issued before the first policy anniversary of the life insurance policy, issue of the coverage, if the coverage is issued on a policy anniversary of the life insurance policy, or the life insurance policy’s preceding policy anniversary, if the coverage is issued on any date that is after the policy’s first policy anniversary and that is not a policy anniversary, the amount of the benefit on death under the coverage on that policy anniversary 108% of the amount of the benefit on death under the coverage, on the later of the coverage’s date of issue and the date of the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the coverage’s date of issue), and on each policy anniversary of the life insurance policy — except to the extent that another exemption test policy has been issued on that date under this subparagraph in respect of a coverage under the life insurance policy — on which the amount by which the fund value benefit under the life insurance policy on that policy anniversary exceeds the fund value benefit under the life insurance policy on the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the date of issue of the policy) the amount by which 8% of the amount of the benefit on death under the life insurance policy on the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the date of issue of the policy) the total of all amounts each of which is, in respect of a coverage under the policy, the lesser of the amount by which the amount of the benefit on death under the coverage on that policy anniversary exceeds the amount of the benefit on death under the coverage on the later of the coverage’s date of issue and the date of the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the coverage’s date of issue), and 8% of the amount of the benefit on death under the coverage on the later of the coverage’s date of issue and the date of the life insurance policy’s preceding policy anniversary (or, if there is no preceding policy anniversary, the coverage’s date of issue). For the purpose of determining whether the condition in paragraph (1)(a) is met on a policy anniversary of a life insurance policy, each exemption test policy issued in respect of the life insurance policy, or in respect of a coverage under the life insurance policy, is deemed to have a benefit on death that is uniform throughout the term of the exemption test policy and that, subject to subsection (5), is equal to if the date on which the exemption test policy is issued is determined by subparagraph (3)(a)(i), the amount by which the amount on that policy anniversary of the benefit on death under the life insurance policy exceeds the total of all amounts each of which is the amount, if any, on that policy anniversary of the benefit on death under another exemption test policy issued on or before that policy anniversary in respect of the life insurance policy, if the date on which the exemption test policy is issued is determined by subparagraph (3)(a)(ii), the amount of the excess referred to in that subparagraph on that date in respect of the life insurance policy, if the date on which the exemption test policy is issued is determined by subparagraph (3)(b)(i), the amount determined by the formula is the amount on that policy anniversary of the benefit on death under the coverage, (A)if the benefit on death under the life insurance policy includes a fund value benefit on that policy anniversary, the portion of the fund value benefit on that policy anniversary that is equal to the lesser of(I)the maximum amount of the fund value benefit that could be payable on that policy anniversary if no other coverage were offered under the life insurance policy and the life insurance policy were an exempt policy, and(II)the amount by which the fund value benefit on that policy anniversary exceeds the total of all amounts each of which is the portion of the fund value benefit allocated to other coverages under the life insurance policy, and if the benefit on death under the life insurance policy includes a fund value benefit on that policy anniversary, the portion of the fund value benefit on that policy anniversary that is equal to the lesser of (I)the maximum amount of the fund value benefit that could be payable on that policy anniversary if no other coverage were offered under the life insurance policy and the life insurance policy were an exempt policy, and the maximum amount of the fund value benefit that could be payable on that policy anniversary if no other coverage were offered under the life insurance policy and the life insurance policy were an exempt policy, and (II)the amount by which the fund value benefit on that policy anniversary exceeds the total of all amounts each of which is the portion of the fund value benefit allocated to other coverages under the life insurance policy, and the amount by which the fund value benefit on that policy anniversary exceeds the total of all amounts each of which is the portion of the fund value benefit allocated to other coverages under the life insurance policy, and (B)in any other case, nil, and in any other case, nil, and is the total of all amounts each of which is the amount, if any, on that policy anniversary of the benefit on death under another exemption test policy issued on or before that policy anniversary in respect of the coverage, if the date on which the exemption test policy is issued is determined by subparagraph (3)(b)(ii), the amount of the excess referred to in that subparagraph on that date in respect of the coverage, and if the date on which the exemption test policy is issued is determined by subparagraph (3)(b)(iii), the lesser of the amount by which the amount determined under clause (3)(b)(iii)(A) exceeds the amount determined under clause (3)(b)(iii)(B) on that date in respect of the coverage, and the amount determined in respect of the coverage under subclause (A)(I) of the description of B in subparagraph (iii) on that date; and to pay the amount of its benefit on death on the earlier of if the life insurance policy is issued before 2017, the date of death of the individual whose life is insured under the life insurance policy, or is issued after 2016, if two or more lives are jointly insured under the coverage, the date at which the benefit would be payable as a result of the death of any of the lives, and in any other case, the date of death of the individual whose life is insured under the coverage, and the exemption test policy’s endowment date. For the purpose of determining the amount of a benefit on death under an exemption test policy, if the exemption test policy is issued in respect of a life insurance policy issued before 2017 and at any time the amount of a benefit on death under the life insurance policy is reduced, a particular amount that is equal to the reduction is to be applied at that time to reduce the amount of the benefit on death under each exemption test policy issued before that time in respect of the life insurance policy (other than the exemption test policy the date of issue of which is determined under subparagraph (3)(a)(i)) in the order in which the dates of their issuance are proximate to that time, by an amount equal to the lesser of the portion, if any, of the particular amount not applied to reduce the benefit on death under one or more other such exemption test policies, and the amount, immediately before that time, of the benefit on death under the relevant exemption test policy; and if the exemption test policy is issued in respect of a coverage under a life insurance policy issued after 2016 and at any time there is a particular reduction in the amount of a benefit on death under the coverage, or the portion, if any, of the fund value benefit referred to in clause (A) of the description of B in subparagraph (4)(a)(iii) in respect of the coverage, the amount of the benefit on death under each exemption test policy issued before that time in respect of the coverage (other than the exemption test policy the date of issue of which is determined under subparagraph (3)(b)(i)) is reduced at that time by an amount equal to the least of the particular reduction, the amount, immediately before that time, of the benefit on death under the relevant exemption test policy, and the portion, if any, of the particular reduction not applied to reduce the benefit on death under one or more other such exemption test policies issued on or after the date of issue of the relevant exemption test policy. Subsection (7) applies at any time in respect of a life insurance policy if that time is on its tenth or a later policy anniversary; the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds 250% of in the case where the particular time at which the policy is issued is determined under subsection 148(11) of the Act and the policy’s third preceding policy anniversary is before the particular time, the accumulating fund (computed without regard to any amount payable in respect of a policy loan and as though the policy were issued after 2016) in respect of the policy on that third preceding policy anniversary, and in any other case, the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy on its third preceding policy anniversary; and where that time is after 2016, the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds the total of all amounts each of which is if the policy is issued before 2017, 3/20 of the accumulating fund, at that time, in respect of an exemption test policy issued in respect of the policy, and if the policy is issued after 2016, 3/8 of the accumulating fund, at that time, in respect of an exemption test policy issued in respect of a coverage under the policy, and subsection (7) did not apply on any of the policy’s six preceding policy anniversaries. If this subsection applies at any time in respect of a life insurance policy, each exemption test policy issued before that time in respect of the life insurance policy is at and after that time deemed to be issued (except for purposes of this subsection, paragraph (4)(a) and subsection (5)) on the later of the date of the third preceding policy anniversary described in paragraph (6)(b) in respect of the policy, and the date on which it was deemed by subsection (3) or (10), as the case may be, to be issued (determined immediately before that time); and not at any other time. A life insurance policy that would, in the absence of this subsection, cease (other than by reason of its conversion into an annuity contract) on a policy anniversary of the policy to be an exempt policy is deemed to be an exempt policy on that policy anniversary if had that policy anniversary occurred on the particular day that is 60 days after that policy anniversary, the policy would have been an exempt policy on the particular day; or the person whose life is insured under the policy dies on that policy anniversary or within 60 days after that policy anniversary. A life insurance policy (other than an annuity contract or deposit administration fund policy) issued before December 2, 1982 is deemed to be an exempt policy at all times from the date of its issue until the first time after December 1, 1982 at which a prescribed premium is paid by a taxpayer in respect of an interest, last acquired before December 2, 1982, in the policy; or an interest in the policy is acquired by a taxpayer from the person who held the interest continuously since December 1, 1982. Notwithstanding subsections (3) and (4), if a life insurance policy is issued for any purpose at a particular time determined under subsection 148(11) of the Act, then for the purposes of applying this section (other than this subsection and subsection (9)) and section 307 in respect of the life insurance policy at and after the particular time, in respect of each coverage issued before the particular time under the life insurance policy, a separate exemption test policy is deemed to be issued in respect of a coverage under the life insurance policy on each policy anniversary that ends before the particular time of the life insurance policy on which 108% of the amount of the benefit on death under the life insurance policy on the later of the life insurance policy’s date of issue and the date of the life insurance policy’s preceding policy anniversary, if any; in respect of each coverage issued before the particular time under the life insurance policy, subsection (3) does not apply to deem an exemption test policy to be issued in respect of the policy, or in respect of a coverage under the policy, at any time before the particular time; in respect of each exemption test policy the date of issuance of which is determined under subparagraph (a)(i), the references in subparagraph (4)(a)(iii) and paragraph (5)(b) to “subparagraph (3)(b)(i)” are to be read as references to “subparagraph (10)(a)(i)”; in respect of each exemption test policy the date of issuance of which is determined under subparagraph (a)(ii), subparagraph (4)(a)(iv) is to be read as follows: if the date on which the exemption test policy is issued is determined by subparagraph (10)(a)(ii) at a time before a particular time, the portion of the amount – that amount being the amount that would be determined, at the time immediately before the particular time, under subparagraph (a)(ii), if the exemption test policy were issued in respect of the policy on the same date as the date determined for it under subparagraph (10)(a)(ii) – that can be reasonably allocated to the coverage in the circumstances (and for these purposes, an allocation is considered not to be reasonable if the total of the amounts determined for A and B in subparagraph (a)(iii) is less than the amount determined for C in that subparagraph in respect of the exemption test policy the date of issuance of which is determined under subparagraph (10)(a)(i) in respect of the coverage), and and in applying paragraph (5)(b), the reference in that paragraph to “any time” is to be read as “any time at or after the particular time referred to in subsection (10) in respect of the life insurance policy”. For the purposes of this Part and sections 12.2 and 148 of the Act, accumulating fund, at any particular time, means in respect of a taxpayer’s interest in an annuity contract (other than a contract issued by a life insurer), the amount that is the greater of the amount, if any, by which the cash surrender value of the taxpayer’s interest at that time exceeds the amount payable, if any, in respect of a loan outstanding at that time made under the contract in respect of the interest, and the amount, if any, by which the present value at that time of future payments to be made out of the contract in respect of the taxpayer’s interest the total of the present value at that time of future premiums to be paid under the contract in respect of the taxpayer’s interest, and the amount payable, if any, in respect of a loan outstanding at that time, made under the contract in respect of the taxpayer’s interest; in respect of a taxpayer’s interest in a life insurance policy (other than an exemption test policy or an annuity contract to which paragraph (1)(a) applies), the product obtained when, where the policy is not a deposit administration fund policy and the particular time is immediately after the death of any person on whose life the life insurance policy is issued or effected, the aggregate of the maximum amounts that could be determined by the life insurer immediately before the death in respect of the policy under paragraph 1401(1)(c) and subparagraph 1401(1)(d)(i) if the mortality rates used were adjusted to reflect the assumption that the death would occur at the time and in the manner that it did occur, and in any other case, the maximum amount that could be determined at that particular time by the life insurer under paragraph 1401(1)(a), computed as though there were only one deposit administration fund policy, or under paragraph 1401(1)(c), as the case may be, in respect of the policy is multiplied by the taxpayer’s proportionate interest in the policy; and in respect of an exemption test policy, if the particular time is during the exemption test policy’s pay period, the amount determined by the formula is the amount that would be determined under subparagraph (ii) in respect of the exemption test policy (A)if the exemption test policy’s pay period is determined by subparagraph (b)(i) or (ii) of the definition pay period in section 310, on the first policy anniversary that is on or after the day on which the individual whose life is insured would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, and if the exemption test policy’s pay period is determined by subparagraph (b)(i) or (ii) of the definition pay period in section 310, on the first policy anniversary that is on or after the day on which the individual whose life is insured would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, and (B)in any other case, on the exemption test policy’s policy anniversary represented by the adjectival form of the number of years in its pay period, in any other case, on the exemption test policy’s policy anniversary represented by the adjectival form of the number of years in its pay period, is the number of years since the exemption test policy was issued, and is the number of years in the exemption test policy’s pay period, if the particular time is after the exemption test policy’s pay period and before its endowment date, the amount that is the present value at the particular time of the future benefit on death under the exemption test policy, and if the particular time is on or after the exemption test policy’s endowment date and the relevant life insurance policy is issued after 2016, the amount that is the benefit on death under the exemption test policy at the particular time. For the purposes of subsection (1), when computing the accumulating fund in respect of an interest described in paragraph (1)(a), the amounts determined under clauses (1)(a)(ii)(A) and (B) are to be computed using, where an interest rate for a period used by the issuer when the contract was issued in determining the terms of the contract was less than any rate so used for a subsequent period, the single rate that would, if it applied for each period, have produced the same terms, and in any other case, the rates used by the issuer when the contract was issued in determining the terms of the contract; an interest described in paragraph (1)(b) in respect of a life insurance policy issued before 2017 or an annuity contract, if an interest rate used for a period by a life insurer in computing the relevant amounts in paragraph 1403(1)(a) or (b) is determined under paragraph 1403(1)(c), (d) or (e), as the case may be, and that rate is less than an interest rate so determined for a subsequent period, the single rate that could, if it applied for each period, have been used in determining the premiums for the policy is to be used; an exemption test policy issued in respect of a life insurance policy issued before 2017, the rates of interest and mortality used and the age of the person whose life is insured shall be the same as those used in computing the amounts described in paragraph 1403(1)(a) or (b) in respect of the life insurance policy in respect of which the exemption test policy was issued except that where the life insurance policy is one to which paragraph 1403(1)(e) applies and the amount determined under subparagraph 1401(1)(c)(i) in respect of that policy is greater than the amount determined under subparagraph 1401(1)(c)(ii) in respect thereof, the rates of interest and mortality used may be those used in computing the cash surrender values of that policy, and where an interest rate for a period otherwise determined under this subparagraph in respect of that interest is less than an interest rate so determined for a subsequent period, the single rate that could, if it applied for each period, have been used in determining the premiums for the life insurance policy shall be used, and notwithstanding subparagraph (i), where the rates referred to in subparagraph (i) do not exist, the minimum guaranteed rates of interest used under the life insurance policy to determine cash surrender values and the rates of mortality under the Commissioners 1958 Standard Ordinary Mortality Table, as published in Volume X of the Transactions of the Society of Actuaries, relevant to the person whose life is insured under the life insurance policy shall be used, or where, in respect of the life insurance policy, the particular period over which the amount determined under clause (B) of the description of A in subparagraph 1401(1)(c)(ii) does not extend to the exemption test policy’s endowment date, the weighted arithmetic mean of the interest rates used to determine the amount is to be used for the period that is after the particular period and before that date, notwithstanding subparagraphs (i) and (ii), no rate of interest used for the purpose of determining the accumulating fund in respect of an exemption test policy issued in respect of the life insurance policy is to be less than if the life insurance policy is issued after April 1985, 4% per annum, and if the life insurance policy is issued before May 1985, 3% per annum, and each amount of a benefit on death is to be determined net of any portion in respect of the benefit on death of the exemption test policy related to a segregated fund; and an exemption test policy issued in respect of a coverage under a life insurance policy issued after 2016, the rates of interest and mortality used and the age of the individual whose life is insured under the coverage are to be the same as those used in computing amounts under paragraph 1401(1)(c) in respect of the policy, and each amount of a benefit on death is to be determined net of any portion in respect of the benefit on death of the exemption test policy related to a segregated fund. [Repealed, 2014, c. 39, s. 82] In this section, any amount determined by reference to section 1401 shall be determined without regard to section 1402; and as if each reference to “policy loan” in section 1401 were read as a reference to “policy loan, as defined in subsection 148(9) of the Act,”. For the purposes of subparagraph 20(1)(e.2)(ii) and paragraph (a) of the description of L in the definition adjusted cost basis in subsection 148(9) of the Act, the net cost of pure insurance for a year in respect of a taxpayer’s interest in a life insurance policy is if, determined at the end of the year, the policy was issued before 2017, the amount determined by the formula is the probability, computed on the basis of the rates of mortality under the 1969–75 mortality tables of the Canadian Institute of Actuaries published in Volume XVI of the Proceedings of the Canadian Institute of Actuaries, or on the basis described in subsection (1.1), that an individual who has the same relevant characteristics as the individual whose life is insured will die in the year, is the benefit on death in respect of the interest at the end of the year, and is the accumulating fund (determined without regard to any amount payable in respect of the policy loan) in respect of the interest at the end of the year or the interest’s cash surrender value at the end of the year, depending on the method regularly followed by the life insurer in computing amounts under this subsection; and if, determined at the end of the year, the policy was issued after 2016, the total of all amounts each of which is an amount determined in respect of a coverage in respect of the interest by the formula is the probability, computed on the basis of the rates of mortality determined in accordance with paragraph 1401(4)(b), or on the basis described in subsection (1.2), that an individual whose life is insured under the coverage will die in the year, is the benefit on death under the coverage in respect of the interest at the end of the year, and is the amount determined by the formula is the portion, in respect of the coverage in respect of the interest, of the amount that would be the present value, determined for the purposes of section 307, on the last policy anniversary that is on or before the last day of the year, of the fund value of the coverage if the fund value of the coverage were equal to the fund value of the coverage at the end of the year, and is the portion, in respect of the coverage in respect of the interest, of the amount that would be determined, on that policy anniversary, for paragraph (a) of the description of C in the definition net premium reserve in subsection 1401(3) in respect of the coverage, if the benefit on death under the coverage, and the fund value of the coverage, on that policy anniversary were equal to the benefit on death under the coverage and the fund value of the coverage, respectively, at the end of the year. If premiums for a life insurance policy do not depend directly on smoking or sex classification, the probability referred to in paragraph (1)(a) may be determined using rates of mortality otherwise determined, provided that for each age for the policy, the expected value of the aggregate net cost of pure insurance, calculated using those rates of mortality, is equal to the expected value of the aggregate net cost of pure insurance, calculated using the rates of mortality under the 1969–75 mortality tables of the Canadian Institute of Actuaries published in Volume XVI of the Proceedings of the Canadian Institute of Actuaries. If premiums or costs of insurance charges for a coverage under a life insurance policy do not depend directly on smoking or sex classification, the probability referred to in paragraph (1)(b) may be determined using rates of mortality otherwise determined, provided that for each age for the coverage, the expected value of the aggregate net cost of pure insurance, calculated using those rates of mortality, is equal to the expected value of the aggregate net cost of pure insurance, calculated using the rates of mortality that would be calculated under paragraph (1)(b) in respect of the coverage using the mortality tables described in paragraph 1401(4)(b). Subject to subsection (4), for the purposes of this section and of the description of G in the definition adjusted cost basis in subsection 148(9) of the Act, a mortality gain immediately before the end of any calendar year after 1982 in respect of a taxpayer’s interest in a life annuity contract means such reasonable amount in respect of the taxpayer’s interest in the life annuity contract at that time that the life insurer determines to be the increase to the accumulating fund in respect of the interest that occurred during that year as a consequence of the survival to the end of the year of one or more of the annuitants under the life annuity contract. Subject to subsection (4), for the purposes of this section and of paragraph (c) of the description of L in the definition adjusted cost basis in subsection 148(9) of the Act, a mortality loss immediately before a particular time after 1982 in respect of an interest in a life annuity contract disposed of immediately after that particular time as a consequence of the death of an annuitant under the life annuity contract means such reasonable amount that the life insurer determines to be the decrease, as a consequence of the death, in the accumulating fund in respect of the interest assuming that, in determining such decrease, the accumulating fund immediately after the death is determined in the manner described in subparagraph 307(1)(b)(i). In determining an amount for a year in respect of an interest in a life annuity contract under subsection (2) or (3), the expected value of the mortality gains in respect of the interest for the year shall be equal to the expected value of the mortality losses in respect of the interest for the year and the mortality rates for the year used in computing those expected values shall be those that would be relevant to the interest and that are specified under such of paragraphs 1403(1)(c), (d) and (e) as are applicable. For the purposes of this section and section 306, and of subsection 89(2) of the Act, a premium at any time under a life insurance policy is a “prescribed premium” if the total amount of one or more premiums paid at that time under the policy exceeds the amount of premium that, under the policy, was scheduled to be paid at that time and that was fixed and determined on or before December 1, 1982, adjusted for such of the following transactions and events that have occurred after that date in respect of the policy: a change in underwriting class; a change in premium due to a change in frequency of premium payments within a year that does not alter the present value, at the beginning of the year, of the total premiums to be paid under the policy in the year; an addition or deletion of accidental death or guaranteed purchase option benefits or disability benefits that provide for annuity payments or waiver of premiums; a premium adjustment as a result of interest, mortality or expense considerations, or of a change in the benefit on death under the policy relating to an increase in the Consumer Price Index (as published by Statistics Canada under the authority of the Statistics Act) where such adjustment is made by the life insurer on a class basis pursuant to the policy’s terms as they read on December 1, 1982, and is not made as a result of the exercise of a conversion privilege under the policy; a change arising from the provision of an additional benefit on death under a participating life insurance policy, as defined in subsection 138(12) of the Act, as, on account or in lieu of payment of, or in satisfaction of policy dividends or other distributions of the life insurer’s income from its participating life insurance business, or interest earned on policy dividends that are held on deposit by the life insurer; redating lapsed policies, if the policy was reinstated not later than 60 days after the end of the calendar year in which the lapse occurred, or redating for policy loan indebtedness; a change in premium due to a correction of erroneous information contained in the application for the policy; payment of a premium after its due date, or payment of a premium no more than 30 days before its due date, as established on or before December 1, 1982; and the payment of interest described in paragraph (a) of the definition premium in subsection 148(9) of the Act. For the purposes of subsections 12.2(9) and 89(2) of the Act, a “prescribed increase” in a benefit on death under a life insurance policy has occurred at any time where the amount of the benefit on death under the policy at that time exceeds the amount of the benefit on death at that time under the policy that was fixed and determined on or before December 1, 1982, adjusted for such of the following transactions and events that have occurred after that date in respect of the policy: an increase resulting from a change described in paragraph (1)(e); a change as a result of interest, mortality or expense considerations, or an increase in the Consumer Price Index (as published by Statistics Canada under the authority of the Statistics Act) where such change is made by the life insurer on a class basis pursuant to the policy’s terms as they read on December 1, 1982; an increase in consequence of the prepayment of premiums (other than prescribed premiums) under the policy where such increase does not exceed the aggregate of the premiums that would otherwise have been paid; an increase in respect of a policy for which the benefit on death was, at December 1, 1982, a specific mathematical function of the policy’s cash surrender value or factors including the policy’s cash surrender value, and that function has not changed since that date, unless any part of such increase is attributable to a prescribed premium paid in respect of a policy or to income earned on such a premium; and an increase that is granted by the life insurer on a class basis without consideration and not pursuant to any term of the contract. For the purposes of subsections (1) and (2), a life insurance policy that is issued as a result of the exercise of a renewal privilege provided under the terms of another policy as they read on December 1, 1982 shall be deemed to be a continuation of that other policy. For the purposes of subsection (2), a life insurance policy that is issued as a result of the exercise of a conversion privilege provided under the terms of another policy as they read on December 1, 1982 shall be deemed to be a continuation of that other policy except that any portion of the policy relating to the portion of the benefit on death, immediately before the conversion, that arose as a consequence of an event occurring after December 1, 1982 and described in paragraph (1)(e) shall be deemed to be a separate life insurance policy issued at the time of the conversion. For the purpose of subparagraph 309(1)(e)(i), in computing a life insurer’s income for a taxation year from its participating life insurance business carried on in Canada, there shall be included the amount determined by the formula is the insurer’s gross Canadian life investment income (in this section as defined in subsection 2400(1)) for the year, is the total of (i)the insurer’s mean maximum tax actuarial reserve (in this section as defined in subsection 2400(1)) for the year in respect of participating life insurance policies in Canada, and the insurer’s mean maximum tax actuarial reserve (in this section as defined in subsection 2400(1)) for the year in respect of participating life insurance policies in Canada, and (ii)1/2 of the total of(A)all amounts on deposit with the insurer as at the end of the year in respect of policies described in subparagraph (i), and(B)all amounts on deposit with the insurer as at the end of the immediately preceding taxation year in respect of policies described in subparagraph (i), and 1/2 of the total of (A)all amounts on deposit with the insurer as at the end of the year in respect of policies described in subparagraph (i), and all amounts on deposit with the insurer as at the end of the year in respect of policies described in subparagraph (i), and (B)all amounts on deposit with the insurer as at the end of the immediately preceding taxation year in respect of policies described in subparagraph (i), and all amounts on deposit with the insurer as at the end of the immediately preceding taxation year in respect of policies described in subparagraph (i), and the total of all amounts, each of which is (i)the insurer’s mean maximum tax actuarial reserve for the year in respect of a class of life insurance policies in Canada, or the insurer’s mean maximum tax actuarial reserve for the year in respect of a class of life insurance policies in Canada, or (ii)1/2 of the total of(A)all amounts on deposit with the insurer as at the end of the year in respect of a class of policies described in subparagraph (i), and(B)all amounts on deposit with the insurer as at the end of the immediately preceding taxation year in respect of a class of policies described in subparagraph (i); (A)all amounts on deposit with the insurer as at the end of the year in respect of a class of policies described in subparagraph (i), and all amounts on deposit with the insurer as at the end of the year in respect of a class of policies described in subparagraph (i), and (B)all amounts on deposit with the insurer as at the end of the immediately preceding taxation year in respect of a class of policies described in subparagraph (i); all amounts on deposit with the insurer as at the end of the immediately preceding taxation year in respect of a class of policies described in subparagraph (i); there shall be included the insurer’s maximum tax actuarial reserve (in this section as defined in subsection 138(12) of the Act) for the immediately preceding taxation year in respect of participating life insurance policies in Canada; there shall not be included any amount in respect of the insurer’s participating life insurance policies in Canada that was deducted under subparagraph 138(3)(a)(i) of the Act in computing its income for the immediately preceding taxation year; subject to paragraph (a), there shall not be included any amount as a reserve that was deducted under paragraph 20(1)(l) of the Act in computing the insurer’s income for the immediately preceding taxation year, or that was included in determining the insurer’s gross Canadian life investment income for the year, and no deduction shall be made in respect of any amount taken into account in determining the insurer’s gross Canadian life investment income for the year, or deductible under paragraph 20(1)(l) of the Act in computing the insurer’s income for the year; there shall be deducted the insurer’s maximum tax actuarial reserve for the year in respect of participating life insurance policies in Canada; no deduction shall be made in respect of any amount deductible under subparagraph 138(3)(a)(iii) of the Act in computing the insurer’s income for the year; except as otherwise provided in paragraph (e), no deduction shall be made in respect of a reserve deductible under subparagraph 138(3)(a)(i) of the Act in computing the insurer’s income for the year; and except as otherwise provided in this section, the provisions of the Act relating to the computation of income from a source shall apply. The following definitions apply for the purposes of this section and sections 300, 301 and 304 to 309. adjusted purchase price, of a taxpayer’s interest in an annuity contract at any time, means, subject to subsections 300(3) and (4), the amount that would be determined at that time in respect of the interest under the definition adjusted cost basis in subsection 148(9) of the Act if the formula in that definition were read without reference to K. (prix d’achat rajusté) amount payable has the same meaning as in subsection 138(12) of the Act. (montant payable) benefit on death has the same meaning as in subsection 1401(3). (prestation de décès) cash surrender value has the same meaning as in subsection 148(9) of the Act. (valeur de rachat) coverage, under a life insurance policy, for the purposes of section 306, means all life insurance (other than a fund value benefit) under the policy in respect of a specific life, or two or more specific lives jointly insured; and for the purposes of sections 307 and 308, has the same meaning as in subsection 1401(3). (protection) endowment date, of an exemption test policy, means where the exemption test policy is issued in respect of a life insurance policy issued before 2017, the later of 10 years after the date of issue of the life insurance policy, and the first policy anniversary that is on or after the day on which the individual whose life is insured under the life insurance policy would, if the individual survived, attain the age of 85 years, as defined under the terms of the policy; and where the exemption test policy is issued in respect of a coverage under a life insurance policy issued after 2016, if two or more lives are jointly insured under the coverage, the date that would be determined under subparagraph (ii) using the equivalent single age, determined on the coverage’s date of issue and in accordance with accepted actuarial principles and practices, that reasonably approximates the mortality rates of those lives, and in any other case, the later of the earlier of 15 years after the date of issue of the exemption test policy, and the first policy anniversary that is on or after the day on which the individual whose life is insured under the coverage would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, and the first policy anniversary that is on or after the day on which the individual whose life is insured under the coverage would, if the individual survived, attain the age of 90 years, as defined under the terms of the policy. (date d’échéance) fund value benefit has the same meaning as in subsection 1401(3). (bénéfice au titre de la valeur du fonds) fund value of a coverage has the same meaning as in subsection 1401(3). (valeur du fonds d’une protection) pay period, of an exemption test policy, means where the exemption test policy is issued in respect of a life insurance policy issued before 2017, if on the date of issue of the exemption test policy, the individual whose life is insured has attained the age of 66 years, as defined under the terms of the policy, but not the age of 75 years, as defined under the terms of the policy, the period that starts on that date and that ends after the number of years obtained when the number of years by which the age of the individual exceeds 65 years, as defined under the terms of the policy, is subtracted from 20, if on the date of issue of the exemption test policy, the individual whose life is insured has attained the age of 75 years, as defined under the terms of the policy, the 10-year period that starts on that date, and in any other case, the 20-year period that starts on the date of issue of the exemption test policy; and subject to subparagraph (ii), if the individual whose life is insured under the coverage would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, within the eight-year period that starts on the date of issue of the exemption test policy, the period that starts on that date and that ends on the first policy anniversary that is on or after the day on which the individual would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, if two or more lives are jointly insured under the coverage and an individual of an age equal to the equivalent single age on the date of the issue of the coverage would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, within the eight-year period that starts on the date of issue of the exemption test policy, the period that starts on that date and that ends on the first policy anniversary that is on or after the day on which the individual would, if the individual survived, attain the age of 105 years, as defined under the terms of the policy, and in any other case, the eight-year period that starts on the date of issue of the exemption test policy. (période de paiement) policy anniversary includes, in the case of a life insurance policy that is in existence throughout a calendar year and that would not otherwise have a policy anniversary for the calendar year, the end of the calendar year. (anniversaire de la police) policy loan has the same meaning as in subsection 148(9) of the Act. (avance sur police) proceeds of the disposition has the same meaning as in subsection 148(9) of the Act. (produit de la disposition) tax anniversary date, in relation to an annuity contract, means the second anniversary date of the contract to occur after October 22, 1968. (jour anniversaire d’imposition) In applying the definition taxable income earned in the year in a province in subsection 124(4) of the Act for a corporation’s taxation year the prescribed rules referred to in that definition are the rules in this Part; and the amount determined under those prescribed rules means the total of all amounts each of which is the taxable income of the corporation earned in the taxation year in a particular province as determined under this Part. [Repealed, 2013, c. 33, s. 32] For the purposes of this Part, permanent establishment in respect of a corporation means a fixed place of business of the corporation, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, and where the corporation does not have any fixed place of business it means the principal place in which the corporation’s business is conducted; where a corporation carries on business through an employee or agent, established in a particular place, who has general authority to contract for his employer or principal or who has a stock of merchandise owned by his employer or principal from which he regularly fills orders which he receives, the corporation shall be deemed to have a permanent establishment in that place; an insurance corporation is deemed to have a permanent establishment in each province and country in which the corporation is registered or licensed to do business; where a corporation, otherwise having a permanent establishment in Canada, owns land in a province, such land shall be deemed to be a permanent establishment; where a corporation uses substantial machinery or equipment in a particular place at any time in a taxation year it shall be deemed to have a permanent establishment in that place; if, but for this paragraph, a corporation would not have a permanent establishment, the corporation is deemed to have a permanent establishment at the place designated in its incorporating documents or bylaws as its head office or registered office; the fact that a corporation has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise shall not of itself be held to mean that the corporation has a permanent establishment; and the fact that a corporation has a subsidiary controlled corporation in a place or a subsidiary controlled corporation engaged in trade or business in a place shall not of itself be held to mean that the corporation is operating a permanent establishment in that place. This Part applies to determine the amount of taxable income of a corporation earned in a taxation year in a particular province. Where, in a taxation year, a corporation had a permanent establishment in a particular province and had no permanent establishment outside that province, the whole of its taxable income for the year shall be deemed to have been earned therein. Where, in a taxation year, a corporation had no permanent establishment in a particular province, no part of its taxable income for the year shall be deemed to have been earned therein.

Except as otherwise provided, where, in a taxation year, a corporation had a permanent establishment in a province and a permanent establishment outside that province, the amount of its taxable income that shall be deemed to have been earned in the year in the province is in any case other than a case specified in paragraph (b) or (c), 1/2 the aggregate of that proportion of its taxable income for the year that the gross revenue for the year reasonably attributable to the permanent establishment in the province is of its total gross revenue for the year, and that proportion of its taxable income for the year that the aggregate of the salaries and wages paid in the year by the corporation to employees of the permanent establishment in the province is of the aggregate of all salaries and wages paid in the year by the corporation; in any case where the gross revenue for the year of the corporation is nil, that proportion of its taxable income for the year that the aggregate of the salaries and wages paid in the year by the corporation to employees of the permanent establishment in the province is of the aggregate of all salaries and wages paid in the year by the corporation; and in any case where the aggregate of the salaries and wages paid in the year by the corporation is nil, that proportion of its taxable income for the year that the gross revenue for the year reasonably attributable to the permanent establishment in the province is of its total gross revenue for the year. For the purpose of determining the gross revenue for the year reasonably attributable to a permanent establishment in a province or country other than Canada, within the meaning of subsection (3), the following rules shall apply: where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in the particular province or country, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province or country; except as provided in paragraph (c), where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the sale may reasonably be regarded as being attached to the permanent establishment in the particular province or country, the gross revenue derived therefrom shall be attributable to that permanent establishment; where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in a country other than Canada in which the taxpayer has no permanent establishment, if the merchandise was produced or manufactured or produced and manufactured, entirely in the particular province by the taxpayer, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province, or if the merchandise was produced or manufactured, or produced and manufactured, partly in the particular province and partly in another place by the taxpayer, the gross revenue derived therefrom attributable to the permanent establishment in the province shall be that proportion thereof that the salaries and wages paid in the year to employees of the permanent establishment in the province where the merchandise was partly produced or manufactured (or partly produced and manufactured) is of the aggregate of the salaries and wages paid in the year to employees of the permanent establishments where the merchandise was produced or manufactured (or produced and manufactured); where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in the particular province or country, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province or country; except as provided in paragraph (f), where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the sale may reasonably be regarded as being attached to the permanent establishment in the particular province or country, the gross revenue derived therefrom shall be attributable to that permanent establishment; where a customer to whom merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in a country other than Canada in which the taxpayer has no permanent establishment, if the merchandise was produced or manufactured, or produced and manufactured, entirely in the particular province by the taxpayer, the gross revenue derived therefrom shall be attributable to the permanent establishment in the province, or where gross revenue is derived from services rendered in the particular province or country, the gross revenue shall be attributable to the permanent establishment in the province or country; where gross revenue is derived from services rendered in a province or country other than Canada in which the taxpayer has no permanent establishment, if the person negotiating the contract may reasonably be regarded as being attached to the permanent establishment of the taxpayer in the particular province or country, the gross revenue shall be attributable to that permanent establishment; where standing timber or the right to cut standing timber is sold and the timber limit on which the timber is standing is in the particular province or country, the gross revenue from such sale shall be attributable to the permanent establishment of the taxpayer in the province or country; and gross revenue which arises from leasing land owned by the taxpayer in a province and which is included in computing its income under Part I of the Act shall be attributable to the permanent establishment, if any, of the taxpayer in the province where the land is situated. For the purposes of subsections (3) and (4), where, in a taxation year, the destination of a shipment of merchandise to a customer to whom the merchandise is sold by a corporation is in a country other than Canada or the customer to whom merchandise is sold by a corporation instructs that the shipment of merchandise be made by the corporation to another person and the customer’s office with which the sale was negotiated is located in a country other than Canada, the corporation has a permanent establishment in the other country, and the corporation is not subject to taxation on its income under the laws of the other country, or its gross revenue derived from the sale is not included in computing the income or profit or other base for income or profits taxation by the other country, because of the provisions of any taxing statute of the other country, or the operation of any tax treaty or convention between Canada and the other country, the following rules apply: with respect to the gross revenue derived from the sale, paragraphs (4)(a) and (d) do not apply, that portion of paragraph (4)(c) preceding subparagraph (i) thereof shall be read as follows: where the destination of a shipment of merchandise to a customer to whom the merchandise is sold is in a country other than Canada,” and that portion of paragraph (4)(f) preceding subparagraph (i) thereof shall be read as follows: where a customer to whom the merchandise is sold instructs that shipment be made to some other person and the customer’s office with which the sale was negotiated is located in a country other than Canada,”; and for the purposes of subparagraph (3)(a)(ii), paragraph (3)(b) and subparagraphs (4)(c)(ii) and (f)(ii), salaries and wages paid in the year to employees of any permanent establishment of the corporation located in that other country” shall be deemed to be nil. For the purposes of subsection (3), “gross revenue” does not include interest on bonds, debentures or mortgages, dividends on shares of capital stock, or rentals or royalties from property that is not used in connection with the principal business operations of the corporation. For the purposes of subsection (3), where part of the corporation’s operations were conducted in partnership with one or more other persons the corporation’s gross revenue for the year, and the salaries and wages paid in the year by the corporation, shall include, in respect of those operations, only that proportion of the total gross revenue of the partnership for its fiscal period ending in or coinciding with the year, and the total salaries and wages paid by the partnership in its fiscal period ending in or coinciding with the year, respectively, that the corporation’s share of the income or loss of the partnership for the fiscal period ending in or coinciding with the year, the total income or loss of the partnership for the fiscal period ending in or coinciding with the year. Where a corporation pays a fee to another person under an agreement pursuant to which that other person or employees of that other person perform services for the corporation that would normally be performed by employees of the corporation, the fee so paid shall be deemed to be salary paid in the year by the corporation and that part of the fee that may reasonably be regarded as payment in respect of services rendered at a particular permanent establishment of the corporation shall be deemed to be salary paid to an employee of that permanent establishment. For the purposes of subsection (7), a fee does not include a commission paid to a person who is not an employee of the corporation. In this Part, if an individual (referred to in this section as the “employee”) is employed by a person (referred to in this section as the “employer”) and performs a service in a particular province for the benefit of or on behalf of a corporation that is not the employer, an amount that may reasonably be regarded as equal to the amount of salary or wages earned by the employee for the service (referred to in this section as the “particular salary”) is deemed to be salary paid by the corporation to an employee of the corporation in the corporation’s taxation year in which the particular salary is paid if at the time the service is performed, the corporation and the employer do not deal at arm’s length, and the corporation has a permanent establishment in the particular province; the service is performed by the employee in the normal course of the employee’s employment by the employer, is performed for the benefit of or on behalf of the corporation in the ordinary course of a business carried on by the corporation, and is of a type that could reasonably be expected to be performed by employees of the corporation in the ordinary course of the business referred to in subparagraph (ii); and the amount is not otherwise included in the aggregate, determined for the purposes of this Part, of the salaries and wages paid by the corporation. In this Part, an amount deemed under subsection (1) to be salary paid by a corporation to an employee of the corporation for a service performed in a particular province is deemed to have been paid, if the service was performed at one or more permanent establishments of the corporation in the particular province, to an employee of the permanent establishment or establishments; or if paragraph (a) does not apply, to an employee of any other permanent establishment (as is reasonably determined in the circumstances) of the corporation in the particular province. In determining under this Part the amount of salaries and wages paid in a year by an employer, there shall be deducted the total of all amounts each of which is a particular salary paid by the employer in the year. Despite subparagraph (1)(a)(i), this section applies to a corporation and an employer that deal at arm’s length if the Minister determines that the corporation and the employer have entered into an arrangement the purpose of which is to reduce, through the provision of services as described in subsection (1), the total amount of income tax payable by the corporation under a law of the particular province referred to in subsection (1). For the purposes of this section, a partnership is deemed to be a corporation and the corporation’s taxation year is deemed to be the partnership’s fiscal period. [Repealed, 2009, c. 2, s. 93] Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned in a taxation year in a particular province by an insurance corporation is that proportion of its taxable income for the year that the aggregate of its net premiums for the year in respect of insurance on property situated in the province, and its net premiums for the year in respect of insurance, other than on property, from contracts with persons resident in the province, is of the total of such of its net premiums for the year as are included in computing its income for the purposes of Part I of the Act. In this section, net premiums of a corporation for a taxation year means the aggregate of the gross premiums received by the corporation in the year (other than consideration received for annuities), minus the aggregate for the year of premiums paid for reinsurance, dividends or rebates paid or credited to policyholders, and rebates or returned premiums paid in respect of the cancellation of policies, by the corporation. For the purposes of subsection (1), where an insurance corporation had no permanent establishment in a taxation year in a particular province, each net premium for that year in respect of insurance on property situated in the particular province shall be deemed to be a net premium in respect of insurance on property situated in the province in which the permanent establishment of the corporation to which the net premium is reasonably attributable is situated; and each net premium for that year in respect of insurance, other than on property, from contracts with persons resident in the particular province shall be deemed to be a net premium in respect of insurance, other than on property, from contracts with persons resident in the province in which the permanent establishment of the corporation to which the net premium is reasonably attributable is situated. For the purposes of subsection (1), if in a taxation year an insurance corporation has no permanent establishment in a particular country other than Canada, but provides insurance on property in the particular country or has a contract for insurance, other than on property, with a person resident in the particular country, each net premium for the taxation year in respect of the insurance is deemed to be a net premium in respect of insurance on property situated in, or from contracts with persons resident in, as the case may be, the province in Canada or country other than Canada in which is situated the permanent establishment of the corporation to which the net premium is reasonably attributable in the circumstances. Notwithstanding subsections 402(3) and (4), the amount of taxable income that is deemed to have been earned by a bank in a taxation year in a province in which it had a permanent establishment is 1/3 of the total of the proportion of its taxable income for the year that the total of the salaries and wages paid in the year by the bank to employees of its permanent establishment in the province is of the total of all salaries and wages paid in the year by the bank; and twice the proportion of its taxable income for the year that the total amount of loans and deposits of its permanent establishment in the province for the year is of the total amount of all loans and deposits of the bank for the year. For the purposes of subsection (1), the amount of loans for a taxation year is 1/12 of the total of the amounts outstanding, on the loans made by the bank, at the close of business on the last day of each month in the year. For the purposes of subsection (1), the amount of deposits for a taxation year is 1/12 of the total of the amounts on deposit with the bank at the close of business on the last day of each month in the year. For the purposes of subsections (2) and (3), loans and deposits do not include bonds, stocks, debentures, items in transit and deposits in favour of Her Majesty in right of Canada. Notwithstanding subsections 402(3) and (4), the amount of taxable income that is deemed to have been earned by a federal credit union in a taxation year in a province in which it had a permanent establishment is 1/3 of the total of the proportion of its taxable income for the year that the total of the salaries and wages paid in the year by the federal credit union to employees of its permanent establishment in the province is of the total of all salaries and wages paid in the year by the federal credit union, and twice the proportion of its taxable income for the year that the total amount of loans and deposits of its permanent establishment in the province for the year is of the total amount of all loans and deposits of the federal credit union for the year. For the purposes of subsection (1), the amount of loans for a taxation year is 1/12 of the total of the amounts outstanding, on the loans made by the federal credit union, at the close of business on the last day of each month in the year. For the purposes of subsection (1), the amount of deposits for a taxation year is 1/12 of the total of the amounts on deposit with the federal credit union at the close of business on the last day of each month in the year. Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned in a taxation year by a trust and loan corporation, trust corporation or loan corporation in a province in which it had a permanent establishment is that proportion of its taxable income for the year that the gross revenue for the year of its permanent establishment in the province is of the total gross revenue for the year of the corporation. In subsection (1), gross revenue for the year of its permanent establishment in the province means the aggregate of the gross revenue of the corporation for the year arising from loans secured by lands situated in the province; loans, not secured by land, to persons residing in the province; loans to persons residing in a province or country other than Canada in which the corporation has no permanent establishment, and administered by a permanent establishment in the province, except loans secured by land situated in a province or country other than Canada in which the corporation has a permanent establishment; and business conducted at the permanent establishment in the province, other than revenue in respect of loans. Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned by a railway corporation in a taxation year in a province in which it had a permanent establishment is, unless subsection (2) applies, 1/2 the aggregate of that proportion of the taxable income of the corporation for the year that the equated track miles of the corporation in the province is of the equated track miles of the corporation in Canada; and that proportion of the taxable income of the corporation for the year that the gross ton miles of the corporation for the year in the province is of the gross ton miles of the corporation for the year in Canada. Where a corporation to which subsection (1) would apply, if this subsection did not apply thereto, operates an airline service, ships or hotels or receives substantial revenues that are petroleum or natural gas royalties, or does a combination of two or more of those things, the amount of its taxable income that shall be deemed to have been earned in a taxation year in a province in which it had a permanent establishment is the aggregate of the amounts computed by applying the provisions of section 407 to that part of its taxable income for the year that may reasonably be considered to have arisen from the operation of the airline service; by applying the provisions of section 410 to that part of its taxable income for the year that may reasonably be considered to have arisen from the operation of the ships; by applying the provisions of section 402 to that part of its taxable income for the year that may reasonably be considered to have arisen from the operation of the hotels; by applying the provisions of section 402 to that part of its taxable income for the year that may reasonably be considered to have arisen from the ownership by the taxpayer of petroleum or natural gas rights or any interest therein; and by applying the provisions of subsection (1) to the remaining portion of its taxable income for the year. In this section, equated track miles in a specified place means the aggregate of the number of miles of first main track, 80 per cent of the number of miles of other main tracks, and 50 per cent of the number of miles of yard tracks and sidings, in that place. For the purpose of making an allocation under paragraph (2)(b), a reference in section 410 to “salaries and wages paid in the year by the corporation to employees” shall be read as a reference to salaries and wages paid by the corporation to employees employed in the operation of permanent establishments (other than ships) maintained for the shipping business. For the purpose of making an allocation under paragraph (2)(c), a reference in section 402 to “gross revenue for the year reasonably attributable to the permanent establishment in the province” shall be read as a reference to the gross revenue of the taxpayer from operating hotels therein; a reference in section 402 to “total gross revenue for the year” shall be read as a reference to the total gross revenue of the taxpayer for the year from operating hotels; and a reference in section 402 to “salaries and wages paid in the year by the corporation to employees” shall be read as a reference to salaries and wages paid to employees engaged in the operations of its hotels. Notwithstanding subsection 402(5), for the purpose of making an allocation under paragraph (2)(d), a reference in section 402 to “gross revenue for the year reasonably attributable to the permanent establishment in the province” shall be read as a reference to the gross revenue of the taxpayer from the ownership by the taxpayer of petroleum and natural gas rights in lands in the province and any interest therein; a reference in section 402 to “total gross revenue for the year” shall be read as a reference to the total gross revenue of the taxpayer from ownership by the taxpayer of petroleum and natural gas rights and any interest therein; and a reference in section 402 to “salaries and wages paid in the year by the corporation to employees” shall be read as a reference to salaries and wages paid to employees employed in connection with the corporation’s petroleum and natural gas rights and interests therein. Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned in a taxation year by an airline corporation in a province in which it had a permanent establishment is the amount that is equal to 1/4 of the aggregate of that proportion of its taxable income for the year that the capital cost of all the corporation’s fixed assets, except aircraft, in the province at the end of the year is of the capital cost of all its fixed assets, except aircraft, in Canada at the end of the year; and that proportion of its taxable income for the year that three times the number of revenue plane miles flown by its aircraft during the year in the province is of the total of all amounts, each of which is the total number of revenue plane miles flown by its aircraft during the year in a province in which the corporation had a permanent establishment. For the purposes of this section, “revenue plane miles flown” shall be weighted according to take-off weight of the aircraft operated. For the purposes of this section, take-off weight of an aircraft means for an aircraft in respect of which an application form for a Certificate of Airworthiness has been submitted to and accepted by the Department of Transport, the maximum permissible take-off weight, in pounds, shown on the form; and for any other aircraft, the weight, in pounds, that may reasonably be considered to be the equivalent of the weight referred to in paragraph (a). Notwithstanding subsections 402(3) and (4), the amount of taxable income of a corporation whose chief business is the operation of grain elevators that shall be deemed to have been earned by that corporation in a taxation year in a province in which it had a permanent establishment is 1/2 of the aggregate of that proportion of its taxable income for the year that the number of bushels of grain received in the year in the elevators operated by the corporation in the province is of the total number of bushels of grain received in the year in all the elevators operated by the corporation; and that proportion of its taxable income for the year that the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishment in the province is of the aggregate of all salaries and wages paid in the year by the corporation. Notwithstanding subsections 402(3) and (4), the amount of taxable income of a corporation whose chief business is the transportation of goods or passengers (other than by the operation of a railway, ship or airline service) that shall be deemed to have been earned by that corporation in a taxation year in a province in which it had a permanent establishment is 1/2 of the aggregate of that proportion of its taxable income for the year that the number of kilometres driven by the corporation’s vehicles, whether owned or leased, on roads in the province in the year is of the total number of kilometres driven by those vehicles in the year on roads other than roads in provinces or countries in which the corporation had no permanent establishment; and Notwithstanding subsections 402(3) and (4), the amount of taxable income of a corporation whose chief business is the operation of ships that shall be deemed to have been earned by the corporation in a taxation year in a province in which it had a permanent establishment is the aggregate of, that proportion of its allocable income for the year that its port-call-tonnage in the province is of its total port-call-tonnage in all the provinces in which it had a permanent establishment; and if its taxable income for the year exceeds its allocable income for the year, that proportion of the excess that the aggregate of the salaries and wages paid in the year by the corporation to employees of the permanent establishment (other than a ship) in the province is of the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishments (other than ships) in Canada. allocable income for the year means that proportion of the taxable income of the corporation for the year that its total port-call-tonnage in Canada is of its total port-call-tonnage in all countries; and port-call-tonnage in a province or country means the aggregate of the products obtained by multiplying, for each ship operated by the corporation, the number of calls made in the year by that ship at ports in that province or country by the number of tons of the registered net tonnage of that ship. Notwithstanding subsections 402(3) and (4), the amount of taxable income of a corporation whose chief business is the operation of a pipeline that shall be deemed to have been earned by that corporation in a taxation year in a province in which it had a permanent establishment is 1/2 of the aggregate of that proportion of its taxable income for the year that the number of miles of pipeline of the corporation in the province is of the number of miles of pipeline of the corporation in all the provinces in which it had a permanent establishment; and that proportion of its taxable income for the year that the aggregate of the salaries and wages paid in the year by the corporation to employees of its permanent establishment in the province is of the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishments in Canada. If part of the business of a corporation for a taxation year, other than a corporation described in any of sections 403, 404, 404.1, 405, 406, 407, 408, 409, 410 and 411, consisted of operations normally conducted by a corporation described in one of those sections, the corporation and the Minister may agree to determine the amount of taxable income deemed to have been earned in the year in a particular province to be the total of the amounts computed by applying the provisions of such of those sections as would have been applicable if it had been a corporation described therein to the portion of its taxable income for the year that might reasonably be considered to have arisen from that part of the business; and by applying the provisions of section 402 to the remaining portion of its taxable income for the year. In this Part, if a corporation is not resident in Canada “salaries and wages paid in the year” by the corporation does not include salaries and wages paid to employees of a permanent establishment outside Canada; and “taxable income” of the corporation is deemed to refer to the corporation’s taxable income earned in Canada. For the purposes of paragraph 402(3)(a), where a corporation is not resident in Canada, “total gross revenue for the year” of the corporation does not include gross revenue reasonably attributable to a permanent establishment outside Canada. For the purpose of paragraph 404(1)(b), in the case of an authorized foreign bank, “all loans and deposits of the bank for the year” is to be read as a reference to “all loans and deposits of the bank for the year in respect of its Canadian banking business”. [Repealed, 2013, c. 33, s. 34] general corporate income tax rate, in a province for a taxation year, means for Quebec, 0%; for the Newfoundland offshore area, the highest percentage rate of tax imposed under the laws of Newfoundland and Labrador on the taxable income of a public corporation earned in the taxation year in Newfoundland and Labrador; for the Nova Scotia offshore area, the highest percentage rate of tax imposed under the laws of Nova Scotia on the taxable income of a public corporation earned in the taxation year in Nova Scotia; and for each other province, the highest percentage rate of tax imposed under the laws of the province on the taxable income of a public corporation earned in the taxation year in the province. (taux général d’imposition du revenu des sociétés) province includes the Newfoundland offshore area and the Nova Scotia offshore area. (province) taxable SIFT distributions, for a taxation year, means in the case of a SIFT trust, its non-deductible distributions amount for the taxation year; and in the case of a SIFT partnership, its taxable non-portfolio earnings for the taxation year. (montant des distributions imposables) In determining the amount of a SIFT trust’s or SIFT partnership’s taxable SIFT distributions for a taxation year earned in a province except as provided in paragraph (b), this Part applies in respect of the SIFT trust or SIFT partnership as though each reference to “corporation” (other than in the expression “subsidiary controlled corporation”) were read as a reference to “SIFT trust” or “SIFT partnership”, as the case may be, each reference to “taxable income” were read as a reference to “taxable SIFT distributions”, each reference to “its incorporating documents or bylaws” were read as a reference to “the agreement governing the SIFT trust” or “the agreement governing the SIFT partnership”, as the case may be, and “subsidiary controlled corporation” in respect of a SIFT trust or a SIFT partnership meant a corporation more than 50% of the issued share capital of which (having full voting rights under all circumstances) belongs to the SIFT trust or SIFT partnership, as the case may be; and subsection 400(1), section 401, subsections 402(1) and (2) and sections 403 to 413 do not apply. Subject to subsection (4), in applying the definition provincial SIFT tax rate in subsection 248(1) of the Act in respect of a SIFT trust or SIFT partnership for a taxation year, the prescribed amount determined in respect of the SIFT trust or SIFT partnership for the taxation year is if the SIFT trust or SIFT partnership has no permanent establishment in a province in the taxation year, 0.10; if the SIFT trust or SIFT partnership has a permanent establishment in a province in the taxation year and has no permanent establishment outside that province in the taxation year, the decimal fraction equivalent of the general corporate income tax rate in the province for the taxation year; and if the SIFT trust or SIFT partnership has a permanent establishment in the taxation year in a province, and has a permanent establishment outside that province in the taxation year, the amount, expressed as a decimal fraction, determined by the formula is the total of all amounts, if any, each of which is in respect of a province in which the SIFT trust or SIFT partnership has a permanent establishment in the taxation year and is determined by the formula is its taxable SIFT distributions for the taxation year earned in the province, is its total taxable SIFT distributions for the taxation year, and is the decimal fraction equivalent of the general corporate income tax rate in the province for the taxation year, and is the total of all amounts each of which is an amount determined under the description of C in the description of A in respect of a province in which the SIFT trust or SIFT partnership has a permanent establishment in the taxation year. If a SIFT trust or a SIFT partnership has a permanent establishment in Quebec in a taxation year, paragraph (a) of the definition general corporate income tax rate in subsection (1) does not apply in determining the prescribed amount under subsection (3) in respect of the SIFT trust or the SIFT partnership for the taxation year for the purposes of applying the definition provincial SIFT tax rate in determining: in the case of the SIFT partnership, the amount of a dividend deemed by paragraph 96(1.11)(b) of the Act to have been received by it in the taxation year; and in the case of the SIFT trust, the amount of its taxable SIFT trust distributions for the taxation year. [Repealed, 2009, c. 2, s. 97] Any election by a corporation to be taxed under section 133 of the Act shall be made by forwarding by registered mail to the Director — Taxation at the District Office of the Department of National Revenue, Taxation that serves the area in which the head office of the corporation is located the following documents: a letter stating that the corporation elects to be taxed under the said section 133; a certified copy of the resolution of the directors of the corporation authorizing the election to be made; and a certified list showing the names and addresses of the registered shareholders and the number of shares of each class held by each, the names and addresses of the holders of the corporation’s bonds, debentures, or other funded indebtedness, if any, and the names and addresses of the beneficial owners of shares, bonds, debentures, or other funded indebtedness in cases where the registered shareholders or holders, as the case may be, are not the beneficial owners. Any election to be taxed under section 133 of the Act shall be revoked by a corporation by forwarding by registered mail to the Deputy Minister of National Revenue for Taxation at Ottawa the following documents in duplicate: a letter stating that the corporation revokes its election; and a certified copy of the resolution of the directors of the corporation authorizing the election to be revoked. A corporation which is taxable under section 133 of the Act shall attach to its return of income required to be filed under subsection 150(1) of the Act, a certified statement showing any changes during the taxation year in the information referred to in paragraph 500(c). [Repealed, SOR/80-140, s. 1] For the purposes of paragraphs 220(3.2)(a) and (b) of the Act, the following are prescribed provisions: section 21 of the Act; subsections 13(4), (7.4) and (29), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 91(1.4), 93.4(2) to (5), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act; paragraphs 12(2.2)(b), (e) of the definition excluded interest and (b) of the definition specified pre-regime loss in subsection 18.2(1), 66.7(7)(c), (d) and (e) and (8)(c), (d) and (e), 80.01(4)(c), 84.1(2.31)(h) and (2.32)(i), 86.1(2)(f), 110.61(1)(e), 110.62(1)(e) and 128.1(4)(d), (6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act; subclause 95(2)(f.11)(ii)(E)(III) of the Act; and subsections 1103(1), (2) and (2d) and 5907(2.1) of these Regulations. Except as provided in subsection (2), for the purposes of paragraph 127(2)(a) of the Act income for the year from logging operations in the province means the aggregate of where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer and the logs so obtained are sold by the taxpayer in the province before or on delivery to a sawmill, pulp or paper plant or other place for processing logs, the taxpayer’s income for the year from the sale, other than any portion thereof that was included in computing the taxpayer’s income from logging operations in the province for a previous year; where standing timber in the province or the right to cut standing timber in the province is sold by the taxpayer, the taxpayer’s income for the year from the sale, other than any portion thereof that was included in computing the taxpayer’s income from logging operations in the province for a previous year; where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer, if the logs so obtained are exported from the province and are sold by him prior to or on delivery to a sawmill, pulp or paper plant or other place for processing logs, or exported from Canada, the amount computed by deducting from the value, as determined by the province, of the logs so exported in the year, the aggregate of the costs of acquiring, cutting, transporting and selling the logs; and where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer, if the logs are processed by the taxpayer or by a person on his behalf in a sawmill, pulp or paper plant or other place for processing logs in Canada, the income of the taxpayer for the year from all sources minus the aggregate of his income from sources other than logging operations carried on in Canada and other than the processing in Canada by him or on his behalf and sale by him of logs, timber and products produced therefrom, each amount included in the aggregate determined under this subsection by virtue of paragraph (a), (b) or (c), and an amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of logs or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after making the deductions under subparagraphs (i) and (ii), 65 per cent of the income so remaining or, if the amount so determined is less than 35 per cent of the income so remaining, 35 per cent of the income so remaining. Where the taxpayer cuts standing timber or acquires logs cut from standing timber in more than one province, for the purposes of paragraph 127(2)(a) of the Act income for the year from logging operations in the province means the aggregate of the amounts determined in respect of that province in accordance with paragraphs (1)(a), (b) and (c); and where the logs are processed by the taxpayer or by a person on his behalf in a sawmill, pulp or paper plant or other place for processing logs in Canada, an amount equal to the proportion of the income of the taxpayer for the year from all sources minus the aggregate of the aggregate of amounts determined in respect of each province in accordance with paragraphs (1)(a), (b) and (c), and an amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of logs or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after making the deductions under subparagraphs (i) and (ii), 65 per cent of the income so remaining or, if the amount so determined is less than 35 per cent of the income so remaining, 35 per cent of the income so remaining, the quantity of standing timber cut in the province in the year by the taxpayer and logs cut from standing timber in the province acquired by the taxpayer in the year, the total quantity of standing timber cut and logs acquired in the year by the taxpayer. For the purpose of the definition logging tax in subsection 127(2) of the Act, each of the following is declared to be a tax of general application on income from logging operations: the tax imposed by the Province of British Columbia under the Logging Tax Act, R.S.B.C. 1996, c. 277; and the tax imposed by the Province of Quebec under Part VII of the Taxation Act, R.S.Q., c. I-3. [Repealed, SOR/78-377, s. 2] Subsections 215(1), (2) and (3) of the Act do not apply to amounts paid or credited to a registered non-resident insurer. A taxpayer that is a registered non-resident insurer in a taxation year shall file a return for the taxation year in prescribed form with the Minister on or before its filing-due date for the taxation year. The amounts that are taxable under Part XIII of the Act in a taxation year of a taxpayer that is a registered non-resident insurer in the taxation year are amounts paid or credited to the taxpayer in the taxation year other than amounts included under Part I of the Act in computing the taxpayer’s income from a business carried on by it in Canada. A taxpayer that is a registered non-resident insurer in a taxation year shall pay to the Receiver General, on or before its filing-due date for the taxation year, the tax payable by it under Part XIII of the Act in the taxation year. [Repealed, SOR/2009-302, s. 5] In this Part, registered non-resident insurer means a non-resident corporation approved to carry on business in Canada under the Insurance Companies Act. Subject to section 802, every non-resident person who carries on business in Canada is taxable under Part XIII of the Act on all amounts otherwise taxable under that Part except those amounts that may reasonably be attributed to the business carried on by the person through a permanent establishment (within the meaning assigned by section 8201) in Canada; or are required by subparagraph 115(1)(a)(iii.3) of the Act to be included in computing the person’s taxable income earned in Canada for the year. If a person (in this section referred to as the “payee”) files an application under this section with the Minister in respect of the anticipated payment or crediting of an amount to the payee, and the Minister determines that the amount is an amount described in paragraph 805(a) or (b), the Minister shall issue to the payee a certificate that records that determination. For the purposes of paragraph (c) of the definition fully exempt interest in subsection 212(3) of the Act, the Bank for International Settlements and the European Bank for Reconstruction and Development are prescribed. [Repealed, 2017, c. 33, s. 90] For the purposes of the definition participating debt interest in subsection 212(3) of the Act, an obligation is a prescribed obligation if it is an indexed debt obligation and no amount payable in respect of it is contingent or dependent upon the use of, or production from, property in Canada; or computed by reference to revenue, profit, cash flow, commodity price or any other similar criterion, other than a change in the purchasing power of money, or dividends paid or payable to shareholders of any class of shares. For the purposes of subsection 240(2) of the Act, the letters “AX” or the letter “F”, as the case may be, shall be clearly and indelibly printed in gothic or similar style capital letters of seven point or larger size either as a prefix to the coupon number or on the lower right hand corner of each coupon or other writing issued in evidence of a right to interest on an obligation referred to in that subsection. For the purposes of paragraph 219(1)(j) of the Act, the allowance of a corporation (other than an authorized foreign bank) for a taxation year in respect of its investment in property in Canada is prescribed to be the amount, if any, by which the corporation’s qualified investment in property in Canada at the end of the year, the amount determined under this paragraph for the immediately preceding taxation year. Notwithstanding subsections (1) and (8), for the purpose of paragraph 219(1)(j) of the Act, the allowance of a corporation that becomes resident in Canada at any time is, in respect of its investment in property in Canada for its last taxation year that ends before that time, prescribed to be nil. For the purposes of subsection (1), where, at the end of a taxation year, a corporation is not a member of a partnership that was carrying on business in Canada at any time in the year, the corporation’s “qualified investment in property in Canada at the end of the year” is the amount, if any, by which the aggregate of the cost amount to the corporation, at the end of the year, of land in Canada owned by it at that time for the purpose of gaining or producing income from a business carried on by it in Canada, other than land that is described in the corporation’s inventory, depreciable property, a Canadian resource property, or land the cost of which is or was deductible in computing the corporation’s income, an amount equal to the aggregate of the cost amount to the corporation, immediately after the end of the year, of each depreciable property in Canada owned by it for the purpose of gaining or producing income from a business carried on by it in Canada, [Repealed, 2016, c. 12, s.

77] where the corporation is not a principal-business corporation, within the meaning assigned by subsection 66(15) of the Act, an amount equal to the total of the corporation’s Canadian exploration and development expenses incurred by the corporation before the end of the year, except to the extent that those expenses were deducted in computing the corporation’s income for the year or for a previous taxation year, and cumulative Canadian exploration expense, within the meaning assigned by subsection 66.1(6) of the Act, at the end of the year minus any deduction under subsection 66.1(3) of the Act in computing the corporation’s income for the year, an amount equal to the corporation’s cumulative Canadian development expense, within the meaning assigned by subsection 66.2(5) of the Act, at the end of the year minus any deduction under subsection 66.2(2) of the Act in computing the corporation’s income for the year, an amount equal to the corporation’s cumulative Canadian oil and gas property expense, within the meaning assigned by subsection 66.4(5) of the Act, at the end of the year minus any deduction under subsection 66.4(2) of the Act in computing the corporation’s income for the year, an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each debt owing to it, or any other right of the corporation to receive an amount, that was outstanding as a result of the disposition by it of property in respect of which an amount would be included, by virtue of paragraph (a), (b) or (h), in its qualified investment in property in Canada at the end of the year if the property had not been disposed of by it before the end of that year, an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each property, other than a Canadian resource property, that was described in the corporation’s inventory in respect of a business carried on by it in Canada, an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each debt (other than a debt referred to in paragraph (e) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the corporation’s income for the year) owing to it in respect of any transaction by virtue of which an amount has been included in computing its income for the year or for a previous year from a business carried on by it in Canada, or where any part of its ordinary business carried on in Canada was the lending of money, in respect of a loan made by the corporation in the ordinary course of that part of its business, and [Repealed, SOR/2009-302, s. 7] an amount equal to the allowable liquid assets of the corporation at the end of the year, an amount equal to the total of all amounts each of which is an amount deducted under paragraph 20(1)(l), (l.1) or (n) of the Act in computing the corporation’s income for the year from a business carried on by the corporation in Canada, an amount equal to the aggregate of all amounts each of which is an amount deducted by the corporation in the year under subparagraph 40(1)(a)(iii) or 44(1)(e)(iii) of the Act in respect of a debt referred to in paragraph (e); an amount equal to the aggregate of each amount owing by the corporation at the end of the year on account of the purchase price of property that is referred to in paragraph (a), (b) or (f) or that would be so referred to but for the fact that it has been disposed of before the end of the year, Canadian exploration and development expenses, Canadian exploration expense, Canadian development expense or Canadian oil and gas property expense, or any other outlay or expense made or incurred by the corporation to the extent that it was deducted in computing its income for the year or for a previous taxation year from a business carried on by it in Canada; an amount equal to the aggregate of all amounts each of which is an amount equal to that proportion of the amount owing (other than an amount owing on account of an outlay or expense referred to in paragraph (l)) by the corporation at the end of the year on account of an obligation outstanding at any time in the year in respect of which interest is stipulated to be payable by it that the interest paid or payable on the obligation by the corporation in respect of the year that is deductible, or would be deductible but for subsection 18(2), (3.1) or (4) or section 21 of the Act, in computing its income for the year from a business carried on by it in Canada, the interest paid or payable on the obligation by the corporation in respect of the year; the amount (referred to in this paragraph as “Part I liability”), if any, by which the tax payable for the year by the corporation under Part I of the Act exceeds the amount, if any, paid by the corporation before the end of the year on account thereof, that proportion of the Part I liability that the amount, if any, in respect of the corporation for the year that is the lesser of the amount, if any, by which the total of all amounts each of which is a taxable capital gain of the corporation for the year from a disposition of a taxable Canadian property that was not used or held by it in the year in the course of carrying on business in Canada exceeds the total of all amounts each of which is an allowable capital loss of the corporation for the year from a disposition of such a property, and the amount that would be determined under clause (A) for the year if it were read without reference to the expression “that was not used or held by it in the year in the course of carrying on business in Canada”, is of the corporation’s taxable income earned in Canada for the year; and the amount (referred to in this paragraph as “provincial tax liability”), if any, by which any income taxes payable for the year by the corporation to the government of a province (to the extent that such taxes were not deductible under Part I of the Act in computing the corporation’s income for the year from a business carried on by it in Canada) exceeds the amount, if any, paid by the corporation before the end of the year on account thereof, that proportion of the provincial tax liability that the amount, if any, in respect of the corporation for the year that is the lesser of is of the corporation’s taxable income earned in Canada for the year. For the purposes of paragraph (2)(i), the “allowable liquid assets of the corporation at the end of the year” is an amount equal to the lesser of the amount of Canadian currency owned by the corporation at the end of that year, the balance standing to the credit of the corporation at the end of that year as or on account of amounts deposited with a branch or other office in Canada of a bank, a corporation licenced or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, or a credit union, and an amount equal to the aggregate of the cost amount to the corporation at the end of that year of each bond, debenture, bill, note, mortgage or similar obligation that was not described in the corporation’s inventory in respect of a business carried on by it in Canada (other than a debt referred to in paragraph (2)(e) or (g) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the corporation’s income for the year), that was issued by a person resident in Canada with whom the corporation was dealing at arm’s length and that matures within one year after the date on which it was acquired by the corporation, to the extent that such amounts are attributable to the profits of the corporation from carrying on a business in Canada, or are used or held by the corporation in the year in the course of carrying on a business in Canada; and an amount equal to 4/3 of the quotient obtained by dividing the aggregate of all amounts that would otherwise be determined under subparagraphs (a)(i), (ii) and (iii) if the references therein to “at the end of that year” were read as references to “at the end of each month in that year”, by the number of months in that year. For the purposes of subsection (1), where, at the end of a taxation year, a corporation is a member of a partnership that was carrying on business in Canada at any time in that year, the corporation’s qualified investment in property in Canada at the end of the year is an amount equal to the aggregate of the amount, if any, that would be determined under subsection (2) if the corporation were not, at the end of the year, a member of a partnership that was carrying on business in Canada at any time in the year; and an amount equal to the portion of the amount of the partnership’s qualified investment in property in Canada at the end of the last fiscal period of the partnership ending in the taxation year of the corporation that may reasonably be attributed to the corporation, having regard to all the circumstances including the rights the corporation would have, if the partnership ceased to exist, to share in the distribution of the property owned by the partnership for the purpose of gaining or producing income from a business carried on by it in Canada. For the purposes of subsection (4), a partnership’s “qualified investment in property in Canada” at the end of a fiscal period is the amount, if any, by which the aggregate of the cost amount to the partnership, at the end of the fiscal period, of land in Canada owned by it at that time for the purpose of gaining or producing income from a business carried on by it in Canada, other than land that is described in the inventory of the partnership, land the cost of which is or was deductible in computing the income of the partnership or the income of a member of the partnership, an amount equal to the aggregate of the cost amount to the partnership, immediately after the end of the fiscal period, of each depreciable property in Canada owned by it for the purpose of gaining or producing income from a business carried on by it in Canada, an amount equal to 4/3 of the cumulative eligible capital of the partnership immediately after the end of the fiscal period in respect of each business carried on by it in Canada, an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each debt owing to it, or any other right of the partnership to receive an amount, that was outstanding as a result of the disposition by it of property in respect of which an amount would be included, by virtue of paragraph (a), (b) or (c), in its qualified investment in property in Canada at the end of the fiscal period if the property had not been disposed of by it before the end of that fiscal period, an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each property, other than a Canadian resource property, that was described in the partnership’s inventory in respect of a business carried on by it in Canada, an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each debt (other than a debt referred to in paragraph (d) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the partnership’s income for the fiscal period) owing to it in respect of any transaction by virtue of which an amount has been included in computing its income for the fiscal period or for a previous fiscal period or in computing the income of a member of the partnership for a previous taxation year from a business carried on in Canada by the partnership, or where any part of its ordinary business carried on in Canada was the lending of money, in respect of a loan made by the partnership in the ordinary course of that part of its business, and an amount equal to the allowable liquid assets of the partnership at the end of the fiscal period, an amount equal to the total of all amounts each of which is an amount deducted under paragraph 20(1)(l), (l.1) or (n) of the Act in computing the partnership’s income for the fiscal period from a business carried on by the partnership in Canada; an amount equal to the aggregate of all amounts each of which is an amount deducted by the partnership in the fiscal period under subparagraph 40(1)(a)(iii) or 44(1)(e)(iii) of the Act in respect of a debt referred to in paragraph (d); an amount equal to the aggregate of each amount owing by the partnership at the end of the fiscal period on account of the purchase price of property that is referred to in paragraph (a), (b) or (e) or that would be so referred to but for the fact that it has been disposed of before the end of the fiscal period, Canadian exploration and development expenses, Canadian exploration expense, Canadian development expense or Canadian oil and gas property expense, an eligible capital expenditure made or incurred by the partnership before the end of the fiscal period in respect of a business carried on by it in Canada, or any other outlay or expense made or incurred by the partnership to the extent that it was deducted in computing its income for the fiscal period or for a previous fiscal period, or in computing the income of a member of the partnership for a previous taxation year, from a business carried on in Canada by the partnership; and an amount equal to the aggregate of all amounts each of which is an amount equal to that proportion of the amount owing (other than an amount owing on account of an outlay or expense referred to in paragraph (j)) by the partnership at the end of the fiscal period on account of an obligation outstanding at any time in the period in respect of which interest is stipulated to be payable by it that the interest paid or payable on the obligation by the partnership in respect of the fiscal period that is deductible, or would be deductible but for subsection 18(2) or (3.1) or section 21 of the Act, in computing its income for the fiscal period from a business carried on by it in Canada, the interest paid or payable on the obligation by the partnership in respect of the fiscal period. For the purposes of paragraph (5)(g), the “allowable liquid assets of the partnership at the end of the fiscal period” is an amount equal to the lesser of the total of the following amounts (to the extent that those amounts are attributable to the profits of the partnership from carrying on a business in Canada, or are used or held by the partnership in the year in the course of carrying on a business in Canada): the amount of Canadian currency owned by the partnership at the end of that fiscal period, the balance standing to the credit of the partnership at the end of that fiscal period as or on account of amounts deposited with a branch or other office in Canada of a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, or an amount equal to the aggregate of the cost amount to the partnership at the end of that fiscal period of each bond, debenture, bill, note, mortgage, hypothec or similar obligation that was not described in the partnership’s inventory in respect of a business carried on by it in Canada (other than a debt referred to in paragraph (5)(d) or (f) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the partnership’s income for the fiscal period), that was issued by a person resident in Canada with whom all the members of the partnership were dealing at arm’s length and that matures within one year after the date on which it was acquired by the partnership; and the aggregate of all amounts that would otherwise be determined under subparagraphs (a)(i), (ii) and (iii) if the references therein to “at the end of that fiscal period” were read as references to “at the end of each month in that fiscal period”, the number of months in that fiscal period. Subsections (4) to (6) shall be read and construed as if each of the assumptions in paragraphs 96(1)(a) to (g) of the Act were made. For the purpose of paragraph 219(1)(j) of the Act, the allowance of an authorized foreign bank for a taxation year in respect of its investment in property in Canada is prescribed to be the amount, if any, by which the average of all amounts, each of which is the amount for a calculation period (within the meaning assigned by subsection 20.2(1) of the Act) of the bank for the year that is the greater of the amount determined by the formula is the amount of the element A in the formulae in subsection 20.2(3) of the Act for the period, and the total of the cost amount to the bank, at the end of the period (or, in the case of depreciable property or eligible capital property, immediately after the end of the year), of each asset in respect of the bank’s Canadian banking business that is an asset recorded in the books of account of the business in a manner consistent with the manner in which it is required to be treated for the purpose of the branch financial statements (within the meaning assigned by subsection 20.2(1) of the Act) for the year the amount equal to the total of is the amount of the element L in the formulae in subsection 20.2(3) of the Act for the period, and is the amount of the element BA in the formulae in subsection 20.2(3) of the Act for the period, and the amount claimed by the bank under clause 20.2(3)(b)(ii)(A) of the Act the total of all amounts each of which is an amount that would be determined under paragraph (2)(j), (k), (n) or (o) if that provision applied to the bank for the year, except to the extent that the amount reflects a liability of the bank that has been included in the element L in the formulae in subsection 20.2(3) of the Act for the bank’s last calculation period for the year. Subject to subsection (2), where a non-resident person (in this section referred to as the “payee”) has filed with the Minister the payee’s required statement for the year, the amount otherwise required by subsections 215(1) to (3) of the Act to be deducted or withheld from any qualifying payment paid or credited by a person resident in Canada (in this section referred to as the “payer”) to the payee in the year and after the required statement for the year was so filed is hereby reduced by the amount determined in accordance with the following rules: determine the amount by which the amount that would, if the payee does not make an election in respect of the year under section 217 of the Act, be the tax payable by the payee under Part XIII of the Act on the aggregate of the amounts estimated by him in his required statement for the year pursuant to paragraph (a) of the definition required statement in subsection (4), the amount that would, if the payee makes the election referred to in subparagraph (i), be the tax payable (on the assumption that no portion of the payee’s income for the year was income earned in the year in a province) by the payee under Part I of the Act on his estimated taxable income calculated by him in his required statement for the year pursuant to paragraph (b) of the definition required statement in subsection (4), determine the percentage that the amount determined under paragraph (a) is of the aggregate of the amounts estimated by him in his required statement for the year pursuant to paragraph (a) of the definition required statement in subsection (4), where the determination of a percentage under paragraph (b) results in a fraction, disregard the fraction for the purposes of paragraph (d), multiply the percentage determined under paragraph (b) by the amount of the qualifying payment, and the product obtained under paragraph (d) is the amount by which the amount required to be deducted or withheld is reduced. Subsection (1) does not apply to reduce the amount to be deducted or withheld from a qualifying payment if, after the qualifying payment has been paid or credited by the payer, the aggregate of all qualifying payments that the payer has paid or credited to the payee in the year would exceed the amount estimated, in respect of that payer, by the payee in his required statement for the year pursuant to paragraph (a) of the definition required statement in subsection (4). Where a payee has filed with the Minister a written notice indicating that certain information or estimates in the payee’s required statement for the year are incorrect and setting out the correct information or estimates that should be substituted therefor or where the Minister is satisfied that certain information or estimates in a payee’s required statement for the year are incorrect and that the Minister has the correct information or estimates that should be substituted therefor, for the purposes of making the calculations in subsection (1) with respect to any qualifying payment paid or credited to the payee after the time when he has filed that notice or after the time when the Minister is so satisfied, as the case may be, the incorrect information or estimates shall be disregarded and the required statement for the year shall be deemed to contain only the correct information or estimates. qualifying payment in relation to a non-resident person means any amount paid or credited, or to be paid or credited, to him as, on account or in lieu of payment of, or in satisfaction of, any amount described in paragraph 212(1)(f) or (h) or in any of paragraphs 212(1)(j), (k), (l), (m) or (q) of the Act, and on which tax under Part XIII of the Act is, or would be, but for an election by him under section 217 of the Act, payable by him; (paiement admissible) required statement of a payee for a taxation year means a written statement signed by him that contains, in respect of the payee, the name and address of each payer of a qualifying payment in the year and, in respect of each such payer, an estimate by the payee of the aggregate of such qualifying payments, and a calculation by him of his estimated taxable income earned in Canada for the year, on the assumption that he makes the election in respect of the year under section 217 of the Act, and such information as may be necessary for the purpose of estimating such income. (état exigé) [Repealed, SOR/2009-302, s. 8] [Repealed, 2026, c. 3, s. 102] Any election by a deceased taxpayer’s legal representative under subsection 159(5) of the Act shall be made by filing with the Minister the prescribed form on or before the day on or before which payment of the first of the “equal consecutive annual instalments” referred to in that subsection is required to be made. Immediate expensing For the purposes of paragraph 20(1)(a) of the Act, a deduction is allowed in computing an eligible person or partnership’s income for each taxation year equal to the lesser of the eligible person or partnership’s immediate expensing limit for the taxation year, the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year (before making any deduction under this Part for the taxation year) of property that is designated immediate expensing property for the taxation year, and if the eligible person or partnership is not a Canadian-controlled private corporation, the amount of income, if any, earned from the source of income that is a business or property (computed without regard to paragraph 20(1)(a) of the Act) in which the relevant designated immediate expensing property is used for the eligible person or partnership’s taxation year. Undepreciated capital cost — immediate expensing Before computing any other deduction permitted under this Part and Schedules II to VI, the amount of any deduction made under subsection (0.1) by an eligible person or partnership in respect of a designated immediate expensing property of a prescribed class shall be deducted from the undepreciated capital cost of the particular class to which the property belongs. Expenditures excluded from paragraph (0.1)(b) For the purposes of paragraph (0.1)(b), in respect of property of a class in Schedule II that is immediate expensing property of an eligible person or partnership solely because of subparagraph (c)(i) of the definition immediate expensing property in subsection 1104(3.1), amounts incurred by any person or partnership in respect of the property are not to be included in determining the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year (before making any deduction under this Part for the taxation year) of property that is designated immediate expensing property for the taxation year if the amounts are incurred before April 19, 2021 (if the eligible person or partnership is a Canadian-controlled private corporation) or before 2022 (if the eligible person or partnership is an individual or Canadian partnership), unless the property was acquired by an eligible person or partnership from another person or partnership (referred to in this paragraph as the “transferee” and the “transferor”, respectively) if the transferee is a Canadian-controlled private corporation, after April 18, 2021, or if the transferee is an individual or a Canadian partnership, after December 31, 2021; the transferee was either the eligible person or partnership, or a person or partnership that does not deal at arm’s length with the eligible person or partnership; and the transferor dealt at arm’s length with the transferee, and held the property as inventory. For the purposes of paragraphs 8(1)(j) and (p) and 20(1)(a) of the Act, the following deductions are allowed in computing a taxpayer’s income for each taxation year: subject to subsection (2), such amount as the taxpayer may claim in respect of property of each of the following classes in Schedule II not exceeding in respect of property of Class 1, 4 per cent, of Class 2, 6 per cent, of Class 3, 5 per cent, of Class 4, 6 per cent, of Class 5, 10 per cent, of Class 6, 10 per cent, of Class 7, 15 per cent, of Class 8, 20 per cent, of Class 9, 25 per cent, of Class 10, 30 per cent, of Class 10.1, 30 per cent, of Class 11, 35 per cent, of Class 12, 100 per cent, of Class 14.1, 5 per cent, of Class 16, 40 per cent, of Class 17, 8 per cent, of Class 18, 60 per cent, of Class 22, 50 per cent, of Class 23, 100 per cent, of Class 25, 100 per cent, of Class 26, 5 per cent, of Class 28, 30 per cent, of Class 30, 40 per cent, of Class 31, 5 per cent, of Class 32, 10 per cent, of Class 33, 15 per cent, of Class 35, 7 per cent, of Class 37, 15 per cent, of Class 41, 25 per cent, of Class 41.1, 25 per cent, of Class 41.2, 25 per cent, of Class 42, 12 per cent, of Class 43, 30 per cent, of Class 43.1, 30 per cent, of Class 43.2, 50 per cent, of Class 44, 25 per cent, of Class 45, 45 per cent, of Class 46, 30 per cent, of Class 47, 8 per cent, of Class 48, 15 per cent, of Class 49, 8 per cent, of Class 50, 55 per cent, of Class 51, 6 per cent, of Class 52, 100 per cent, of Class 53, 50 per cent, of Class 54, 30 per cent, of Class 55, 40 per cent, of Class 56, 30 per cent, of Class 57, 8 per cent, of Class 58, 20 per cent, of Class 59, 100 per cent, and of Class 60, 30 per cent, of the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class; where a separate class is prescribed by subsection 1101(5b.1) for a property of a taxpayer that is a building and at least 90 per cent of the floor space of the building is used at the end of the taxation year for the manufacturing or processing in Canada of goods for sale or lease, such amount as the taxpayer may claim not exceeding six per cent of the undepreciated capital cost to the taxpayer of the property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); where a separate class is prescribed by subsection 1101(5b.1) for a property of a taxpayer that is a building, at least 90 per cent of the floor space of the building is used at the end of the taxation year for a non-residential use in Canada and an additional allowance is not allowed for the year under paragraph (a.1) in respect of the property, such amount as the taxpayer may claim not exceeding two per cent of the undepreciated capital cost to the taxpayer of the property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); any additional amount that the taxpayer may claim in respect of property that is used as part of an eligible liquefaction facility for which a separate class is prescribed by subsection 1101(5b.2), not exceeding the lesser of the income for the taxation year from the taxpayer’s eligible liquefaction activities in respect of the eligible liquefaction facility (taking into consideration any deduction under paragraph (yb) and before making any deduction under this paragraph), and 6% of the undepreciated capital cost to the taxpayer of property of that separate class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); if a separate class is prescribed by subsection 1101(1ac.1) for a property of a taxpayer that is a new purpose-built residential rental throughout the taxation year, such amount as the taxpayer may claim not exceeding six per cent of the undepreciated capital cost to the taxpayer of the property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); such amount as the taxpayer may claim in respect of the capital cost to the taxpayer of property of Class 13 in Schedule II, not exceeding if the capital cost of the property was incurred in the taxation year and after November 12, 1981, if the property is either an accelerated investment incentive property and the capital cost of the property was incurred before 2024, or a reaccelerated investment incentive property and the capital cost of the property was incurred before 2030, the lesser of 150 per cent of the amount for the year calculated in accordance with Schedule III, and the amount determined for paragraph 1(b) of Schedule III, and if the property is neither an accelerated investment incentive property nor a reaccelerated investment incentive property and is not described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2), 50 per cent of the amount for the year calculated in accordance with Schedule III, and in any other case, the amount for the year calculated in accordance with Schedule III, and, for the purposes of this paragraph and Schedule III, the capital cost to a taxpayer of a property shall be deemed to have been incurred at the time at which the property became available for use by the taxpayer; such amount as he may claim in respect of property of Class 14 in Schedule II not exceeding the lesser of the aggregate of the amounts for the year obtained by apportioning the capital cost to the taxpayer of each property over the life of the property remaining at the time the cost was incurred, if the property is accelerated investment incentive property, the portion of the amount determined under clause (A) that is in respect of the property multiplied by 0.5, if the property becomes available for use in the year and before 2024, and 0.25, if the property becomes available for use in the year and after 2023, and if the property is reaccelerated investment incentive property, the portion of the amount determined under clause (A) that is in respect of the property multiplied by 0.5, if the property becomes available for use in the year and before 2030, and 0.25, if the property becomes available for use in the year and after 2029, and the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class; for a taxation year that ends before 2027, such additional amount as the taxpayer may claim in respect of property of Class 14.1 of Schedule II not exceeding 2% of the particular amount by which the undepreciated capital cost of the class at the beginning of 2017 exceeds the total of all amounts each of which is the amount of a deduction taken under paragraph 20(1)(a) of the Act in respect of the class for a preceding taxation year, and equal to three times the amount of the capital cost of a property deemed by subsection 13(39) of the Act to be acquired by the taxpayer in the year or a preceding year, and is the lesser of (A)$ 500, and $ 500, and (B)the undepreciated capital cost of the class to the taxpayer as of the end of the year (before making any deduction under paragraph 20(1)(a) of the Act in respect of the class for the year), and the undepreciated capital cost of the class to the taxpayer as of the end of the year (before making any deduction under paragraph 20(1)(a) of the Act in respect of the class for the year), and is the total of all amounts deductible for the year under paragraph 20(1)(a) of the Act in respect of the class because of subparagraph (i) or (a)(xii.1); such additional amount as he may claim not exceeding in the case of property described in each of the classes in Schedule II, the lesser of one-half the amount that would have been allowed to him in respect of property of that class under subparagraph 6(n)(ii) of the Income War Tax Act if that act were applicable to the taxation year, and the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this paragraph for the taxation year) of property of the class; such amount as he may claim not exceeding the amount calculated in accordance with Schedule VI in respect of the capital cost to him of a property, other than a timber resource property, that is a timber limit or a right to cut timber from a limit; such amount as he may claim not exceeding the amount calculated in accordance with Schedule IV in respect of the capital cost to him of property of Class 15 in Schedule II; such amount as he may claim not exceeding the amount calculated in accordance with Schedule V in respect of the capital cost to him of a property that is an industrial mineral mine or a right to remove industrial minerals from an industrial mineral mine; [Repealed, SOR/78-377, s. 3] such additional amount as he may claim in the case of property of a separate class prescribed by subsection 1101(2) not exceeding the lesser of the amount by which the depreciation that could have been taken on the property, if the Orders in Council referred to in that subsection were applicable to the taxation year, exceeds the amount allowed under paragraph (a) in respect of the property, and [Repealed, SOR/95-244, s. 1] such additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(5k) not exceeding the lesser of the aggregate of his income for the year from that property and from property described in paragraph (n) of Class 12 in Schedule II, determined before making any deduction under this paragraph, and the undepreciated capital cost to him of property of that separate class as of the end of the year before making any deduction under this paragraph for the year; such additional amount as the taxpayer claims in respect of property for which a separate class is prescribed by subsection 1101(5k.1) not exceeding the lesser of the taxpayer’s income for the year from the property, determined before making any deduction under this paragraph, and the undepreciated capital cost to the taxpayer of the property of that separate class at the end of the year (before making any deduction under this paragraph for the year and computed without reference to subsection (2)); where the taxpayer is a corporation that had a degree of Canadian ownership in the taxation year, or is an individual who was resident in Canada in the taxation year for not less than 183 days, such amount as he may claim in respect of property of Class 19 in Schedule II that was acquired in a particular taxation year not exceeding the lesser of 50 per cent of the capital cost thereof to him, and the amount by which the capital cost thereof to him exceeds the aggregate of the amounts deducted in respect thereof in computing his income for previous taxation years, but the aggregate of amounts deductible for a taxation year in respect of property acquired in each of the particular taxation years, under this paragraph, shall not exceed the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class; where the taxpayer is not entitled to make a deduction under paragraph (n) in computing his income for a taxation year, such amount as he may claim in respect of property of Class 19 in Schedule II not exceeding 20 per cent of the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class; such amount as he may claim in respect of property of Class 20 in Schedule II that was acquired in a particular taxation year not exceeding the lesser of 20 per cent of the capital cost thereof to him, and such amount as he may claim in respect of property of Class 21 in Schedule II that was acquired in a particular taxation year not exceeding the lesser of such additional amount as he may claim in respect of property included in Class 3, 6 or 8 in Schedule II that is a grain elevator situated in that part of Canada that is defined in section 2 of the Canada Grain Act as the “Eastern Division” the principal use of which is the receiving of grain directly from producers for storage or forwarding or both, is the receiving and storing of grain for direct manufacture or processing into other products, or has been certified by the Minister of Agriculture to be the receiving of grain that has not been officially inspected or weighed, an addition to a grain elevator described in clause (A), fixed machinery installed in a grain elevator in respect of which, or in respect of an addition to which, an additional amount has been or may be claimed under this paragraph, fixed machinery, designed for the purpose of drying grain, installed in a grain elevator described in clause (A), machinery designed for the purpose of drying grain on a farm, or a building or other structure designed for the purpose of storing grain on a farm, that was acquired by the taxpayer in the taxation year or in one of the three immediately preceding taxation years, at a time that was after April 1, 1972 but before August 1, 1974, and that was not used for any purpose whatever before it was acquired by the taxpayer, not exceeding the lesser of where the property is included in Class 3, 22 per cent of the capital cost thereof, where the property is included in Class 6, 20 per cent of the capital cost thereof or where the property is included in Class 8, 14 per cent of the capital cost thereof in the case of property referred to in clause (i)(C), (D) or (F), and 14 per cent of the lesser of $15,000 and the capital cost thereof in the case of property described in clause (i)(E), and for the taxation year that includes November 12, 1981, such amount as he may claim in respect of property of each of Classes 24, 27, 29 and 34 in Schedule II not exceeding the aggregate of 50 per cent of the lesser of the capital cost to him of all designated property of the class acquired by him in the year, and the undepreciated capital cost to him of property of the class as of the end of the year (computed as if no amount were included in respect of property, other than designated property of the class, acquired after November 12, 1981 and before making any deduction under this paragraph for the year), the amount, if any, by which the amount determined under clause (i)(B) in respect of the class exceeds the amount determined under clause (i)(A) in respect of the class, and the lesser of 25 per cent of the capital cost to him of all property, other than designated property, of the class acquired by him in the year, and the undepreciated capital cost to him of property of the class as of the end of the year (before making any deduction under this paragraph for the year); for taxation years commencing after November 12, 1981, such amount as he may claim in respect of property of each of Classes 24, 27, 29 and 34 in Schedule II not exceeding the aggregate of 50 per cent of the capital cost to him of all designated property of the class acquired by him in the year, and the undepreciated capital cost to him of property of the class as of the end of the year (before making any deduction under this paragraph for the year and, where any of the property referred to in subclause (I) was acquired by virtue of a specified transaction, computed as if no amount were included in respect of property, other than designated property of the class acquired by him in the year), and 25 per cent of the lesser of the undepreciated capital cost to him of property of the class as of the end of the year (computed as if no amount were included in respect of designated property of the class acquired by him in the year and before making any deduction under this paragraph for the year), and the capital cost to him of all property, other than designated property, of the class acquired by him in the year, and the undepreciated capital cost to him of property of the class as of the end of the year (before making any deduction under this paragraph for the year) the capital cost to him of all property of the class acquired by him in the year, and an amount equal to the aggregate of 50 per cent of the capital cost to him of all property of the class acquired by him in the immediately preceding taxation year, other than designated property of the class acquired in a specified transaction, and the amount, if any, by which the amount determined under clause (A) for the year with respect to the class exceeds the aggregate of 75 per cent of the capital cost to him of all property, other than designated property, of the class acquired by him in the immediately preceding taxation year and 50 per cent of the capital cost to him of designated property of the class acquired by him in the immediately preceding taxation year, other than designated property of the class acquired in a specified transaction, and for the purposes of this paragraph and paragraph (t), designated property of a class means property of the class acquired by him before November 13, 1981, property deemed to be designated property of the class by virtue of paragraph (2.1)(g) or (2.2)(j), and property described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2), and, for the purposes of this paragraph, specified transaction means a transaction to which subsection 85(5), 87(1), 88(1), 97(4) or 98(3) or (5) of the Act applies, and subject to paragraph (2.2)(j), a property shall be deemed to have been acquired by a taxpayer at the time at which the property became available for use by the taxpayer; such amount as the taxpayer may claim in respect of property that is a vessel described in subsection 1101(2a), included in a separate prescribed class because of subsection 13(14) of the Act, or a property that has been constituted a prescribed class by subsection 24(2) of Chapter 91 of the Statutes of Canada, 1966-67, the capital cost of the property to the taxpayer multiplied by 50 per cent, in the case of an accelerated investment incentive property acquired in the year and before 2024 or a reaccelerated investment incentive property acquired in the year and before 2030, 16 2/3 per cent, in the case of property acquired in the year, other than accelerated investment incentive property or reaccelerated investment incentive property, and property described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2), and 33 1/3 per cent, in any other case, and the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under this paragraph for the taxation year) of property of the class, and, for the purposes of subparagraph (iv), a property shall be deemed to have been acquired by a taxpayer at the time at which the property became available for use by the taxpayer for the purposes of the Act; such additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(2b) not exceeding 15 per cent of the undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); subject to section 1100A, such additional amount as he may claim in respect of property described in Class 28 acquired for the purpose of gaining or producing income from a mine or in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101 (4a), not exceeding the lesser of the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.1), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (computed without reference to subsection (2) and before making any deduction under this paragraph for the taxation year); subject to section 1100A, such additional amount as he may claim in respect of property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4b), not exceeding the lesser of the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and the undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this paragraph for the taxation year); such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4c), not exceeding the lesser of the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and the undepreciated capital cost to the taxpayer of property of that class as of the end of a taxation year (computed without reference to subsection (2) and before making any deduction under this paragraph for the taxation year);

such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4e), not exceeding the amount determined by the formula (i)the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and (ii)the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year computed(A)without reference to subsection (2),(B)after making any deduction under paragraph (a) for the taxation year, and(C)before making any deduction under this paragraph; and the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year computed (A)without reference to subsection (2), without reference to subsection (2), (B)after making any deduction under paragraph (a) for the taxation year, and after making any deduction under paragraph (a) for the taxation year, and (C)before making any deduction under this paragraph; and before making any deduction under this paragraph; and is the percentage that is the total of (i)that proportion of 100% that the number of days in the taxation year that are before 2011 is of the number of days in the taxation year, that proportion of 100% that the number of days in the taxation year that are before 2011 is of the number of days in the taxation year, (ii)that proportion of 90% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, that proportion of 90% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, (iii)that proportion of 80% that the number of days in the taxation year that are in 2012 is of the number of days in the taxation year, that proportion of 80% that the number of days in the taxation year that are in 2012 is of the number of days in the taxation year, (iv)that proportion of 60% that the number of days in the taxation year that are in 2013 is of the number of days in the taxation year, that proportion of 60% that the number of days in the taxation year that are in 2013 is of the number of days in the taxation year, (v)that proportion of 30% that the number of days in the taxation year that are in 2014 is of the number of days in the taxation year, and that proportion of 30% that the number of days in the taxation year that are in 2014 is of the number of days in the taxation year, and (vi)0%, if one or more days in the year are after 2014; 0%, if one or more days in the year are after 2014; such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4g), not exceeding the amount determined by the formula (i)the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and (ii)the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed(A)without reference to subsection (2),(B)after making any deduction under paragraph (a) for the year, and(C)before making any deduction under this paragraph, and the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed (B)after making any deduction under paragraph (a) for the year, and after making any deduction under paragraph (a) for the year, and (C)before making any deduction under this paragraph, and before making any deduction under this paragraph, and (i)that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year, that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year, (ii)that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year, that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year, (iii)that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year, that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year, (iv)that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year, that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year, (v)that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and (vi)0%, if one or more days in the year are after 2020; 0%, if one or more days in the year are after 2020; such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4d), not exceeding the lesser of the taxpayer’s income for the year from the mines, before making any deduction under this paragraph, section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4f), not exceeding the amount determined by the formula (i)the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and such additional amount as the taxpayer may claim in respect of a property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4h), not exceeding the amount determined by the formula (i)the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and any additional amount as the taxpayer may claim in respect of property used as part of an eligible liquefaction facility for which a separate class is prescribed by subsection 1101(4i), not exceeding the lesser of the income for the taxation year from the taxpayer’s eligible liquefaction activities in respect of the eligible liquefaction facility (taking into consideration any deduction under paragraph (a.3) and before making any deduction under this paragraph), and 22% of the undepreciated capital cost to the taxpayer of property of that separate class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by paragraph 1101(5d)(c) not exceeding eight per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by paragraph 1101(5d)(d), (e) or (f), not exceeding six per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5d.1), not exceeding three per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year); where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5d.2), not exceeding six percent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year); such additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(5e) not exceeding 4% of the undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5e.1), not exceeding six per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year); where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5e.2), not exceeding five per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year); such additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(5f) not exceeding 3% of the undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); where the taxpayer owns and operates a railway as a common carrier, such additional amount as he may claim in respect of property of a class in Schedule II (in this paragraph referred to as “designated property” of the class) included in Class 1 in Schedule II by virtue of paragraph (h) or (i) of that Class, a bridge, culvert, subway or tunnel included in Class 1 in Schedule II that is ancillary to railway track and grading, a trestle included in Class 3 in Schedule II that is ancillary to railway track and grading, included in Class 6 in Schedule II by virtue of paragraph (j) of that Class, machinery or equipment included in Class 8 in Schedule II that is ancillary to railway track and grading, or railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor, machinery or equipment included in Class 8 in Schedule II that was acquired principally for the purpose of maintaining or servicing, or is ancillary to and used as part of, a railway locomotive or railway car, included in Class 10 in Schedule II by virtue of subparagraph (m)(i), (ii) or (iii) of that Class, included in Class 28 in Schedule II by virtue of subparagraph (d)(ii) of that Class (other than property referred to in subparagraph (m)(iv) of Class 10), or included in Class 35 in Schedule II, that was acquired by him principally for use in or is situated in Canada, that was acquired by him in respect of the railway in the taxation year or in one of the four immediately preceding taxation years, at a time that was after April 10, 1978 but before 1988, and that was not used for any purpose whatever before it was acquired by him, six per cent of the aggregate of the capital cost to him of the designated property of the class, and the undepreciated capital cost to him as of the end of the taxation year (after making all deductions claimed by him under other provisions of this subsection for the taxation year but before making any deduction under this paragraph for the taxation year) of property of the class. such amount as the taxpayer may claim in respect of property of Class 38 in Schedule II not exceeding that percentage which is the aggregate of that proportion of 40 per cent that the number of days in the taxation year that are in 1988 is of the number of days in the taxation year that are after 1987, that proportion of 35 per cent that the number of days in the taxation year that are in 1989 is of the number of days in the taxation year, and that proportion of 30 per cent that the number of days in the taxation year that are after 1989 is of the number of days in the taxation year of the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any deduction under this paragraph for the taxation year); such amount as the taxpayer may claim in respect of property of Class 39 in Schedule II not exceeding that percentage which is the aggregate of that proportion of 35 per cent that the number of days in the taxation year that are in 1989 is of the number of days in the taxation year, that proportion of 30 per cent that the number of days in the taxation year that are in 1990 is of the number of days in the taxation year, and that proportion of 25 per cent that the number of days in the taxation year that are after 1990 is of the number of days in the taxation year such amount as the taxpayer may claim in respect of property of Class 40 in Schedule II not exceeding that percentage which is the aggregate of that proportion of 30 per cent that the number of days in the taxation year that are in 1990 is of the number of days in the taxation year where the taxpayer has elected for the year in prescribed manner, was not in the year a large corporation, as defined in subsection 225.1(8) of the Act, or a partnership any member of which was such a corporation in a taxation year that included any time that is in the partnership’s year, and acquired property included in paragraph (f) of Class 10 in Schedule II in the year, after 1997 and before November 1999, and for the purpose of replacing property that was acquired before 1998 that has a material risk of malfunctioning because of the change of the calendar year to 2000 and that is described in paragraph (f) of Class 10, or paragraph (o) of Class 12, in Schedule II, such additional amount as the taxpayer claims in respect of all property described in subparagraph (iii) not exceeding the least of the amount, if any, by which $50,000 exceeds the total of the total of all amounts each of which is an amount claimed by the taxpayer under this paragraph for a preceding taxation year, the total of all amounts each of which is an amount claimed by the taxpayer for the year or a preceding taxation year under paragraph (zh), and the total of all amounts each of which is an amount claimed under this paragraph or paragraph (zh) by a corporation for a taxation year in which it was associated with the taxpayer, 85% of the capital cost to the taxpayer of all property described in subparagraph (iii), and the undepreciated capital cost to the taxpayer as of the end of the year (computed without reference to subsection (2) and after making all deductions claimed under other provisions of this subsection for the year but before making any deduction under this paragraph for the year) of property included in Class 10 in Schedule II; and acquired property included in paragraph (o) of Class 12 in Schedule II the total of all amounts each of which is an amount claimed by the taxpayer for the year or a preceding taxation year under paragraph (zg), and the total of all amounts each of which is an amount claimed under this paragraph or paragraph (zg) by a corporation for a taxation year in which it was associated with the taxpayer, 50% of the capital cost to the taxpayer of all property described in subparagraph (iii), and the undepreciated capital cost to the taxpayer as of the end of the year (computed without reference to subsection (2) and after making all deductions claimed under other provisions of this subsection for the year but before making any deduction under this paragraph for the year) of property included in Class 12 in Schedule II. Despite subsections (0.1), (1) and (3), the amount deductible by a taxpayer for a taxation year in respect of a property that is a specified leasing property at the end of the year is the lesser of the amount, if any, by which the aggregate of all amounts that would be considered to be repayments in the year or a preceding year on account of the principal amount of a loan made by the taxpayer if the taxpayer had made the loan at the time that the property last became a specified leasing property and in a principal amount equal to the fair market value of the property at that time, interest had been charged on the principal amount of the loan outstanding from time to time at the rate, determined in accordance with section 4302, in effect at the earlier of the time, if any, before the time referred to in subclause (II), at which the taxpayer last entered into an agreement to lease the property, and the time that the property last became a specified leasing property (or, where a particular lease provides that the amount paid or payable by the lessee of the property for the use of, or the right to use, the property varies according to prevailing interest rates in effect from time to time, and the taxpayer so elects, in respect of all of the property that is the subject of the particular lease, in the taxpayer’s return of income under Part I of the Act for the taxation year of the taxpayer in which the particular lease was entered into, the rate determined in accordance with section 4302 that is in effect at the beginning of the period for which the interest is being calculated), compounded semi-annually not in advance, and the amounts that were received or receivable by the taxpayer before the end of the year for the use of, or the right to use, the property before the end of the year and after the time it last became a specified leasing property were blended payments of principal and interest, calculated in accordance with clause (B), on the loan applied firstly on account of interest on principal, secondly on account of interest on unpaid interest, and thirdly on account of principal, and the amount that would have been deductible under this section for the taxation year (in this subparagraph referred to as the “particular year”) that includes the time (in this subparagraph referred to as the “particular time”) at which the property last became a specified leasing property of the taxpayer, if the property had been transferred to a separate prescribed class at the later of the beginning of the particular year, and the time at which the property was acquired by the taxpayer, the particular year had ended immediately before the particular time, and where the property was not a specified leasing property immediately before the particular time, subsection (3) had applied, the aggregate of all amounts deducted by the taxpayer in respect of the property by reason of this subsection before the commencement of the year and after the time at which it last became a specified leasing property; and the amount, if any, by which, the aggregate of all amounts that would have been deducted by the taxpayer under this Part in respect of the property under paragraph 20(1)(a) of the Act in computing the income of the taxpayer for the year and all preceding taxation years had this subsection and subsections (11) and (15) not applied, and had the taxpayer, in each such year, deducted under paragraph 20(1)(a) of the Act the maximum amount allowed under this Part, read without reference to this subsection and subsections (11) and (15), in respect of the property, the total depreciation allowed to the taxpayer before the commencement of the year in respect of the property. In this section and subsection 1101(5n), specified leasing property of a taxpayer at any time means depreciable property (other than exempt property) that is used at that time by the taxpayer or a person with whom the taxpayer does not deal at arm’s length principally for the purpose of gaining or producing gross revenue that is rent or leasing revenue, the subject of a lease at that time to a person with whom the taxpayer deals at arm’s length and that, at the time the lease was entered into, was a lease for a term of more than one year, and the subject of a lease of property where the tangible property, other than exempt property, that was the subject of the lease had, at the time the lease was entered into, an aggregate fair market value in excess of $25,000, but, for greater certainty, does not include intangible property, or for civil law incorporeal property, (including systems software and property referred to in paragraph (w) of Class 10 or paragraph (n) or (o) of Class 12 in Schedule II). Despite subsections (0.1), (1) and (1.1), where, in a taxation year, a taxpayer has acquired a property that was not used by the taxpayer for any purpose in that year and the first use of the property by the taxpayer is a lease of the property in respect of which subsection (1.1) applies, the amount allowed to the taxpayer under subsections (0.1) and (1) in respect of the property for the year shall be deemed to be nil. For the purposes of this section, exempt property means general purpose office furniture or office equipment included in Class 8 in Schedule II (including, for greater certainty, mobile office equipment such as cellular telephones and pagers) or general purpose electronic data processing equipment and ancillary data processing equipment, included in paragraph (f) of Class 10 in Schedule II, other than any individual piece thereof having a capital cost to the taxpayer in excess of $1,000,000, general-purpose electronic data processing equipment and ancillary data processing equipment, included in Class 45, 50 or 52 in Schedule II, other than any individual item of that type of equipment having a capital cost to the taxpayer in excess of $1,000,000, furniture, appliances, television receivers, radio receivers, telephones, furnaces, hot-water heaters and other similar properties, designed for residential use, a property that is a motor vehicle that is designed or adapted primarily to carry individuals on highways and streets and that has a seating capacity for not more than the driver and eight passengers, or a motor vehicle of a type commonly called a van or pick-up truck, or a similar vehicle, a truck or tractor that is designed for hauling freight on highways, a trailer that is designed for hauling freight and to be hauled under normal operating conditions by a truck or tractor described in subparagraph (iv), a building or part thereof included in Class 1, 3, 6, 20, 31 or 32 in Schedule II (including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators) other than a building or part thereof leased primarily to a lessee that is a person who is exempt from tax by reason of section 149 of the Act, a person who uses the building in the course of carrying on a business the income from which is exempt from tax under Part I of the Act by reason of any provision of the Act, or a Canadian government, municipality or other Canadian public authority, who owned the building or part thereof at any time before the commencement of the lease (other than at any time during a period ending not later than one year after the later of the date the construction of the building or part thereof was completed and the date the building or part thereof was acquired by the lessee), vessel mooring space, and property that is included in Class 35 in Schedule II, and for the purposes of subparagraph (i), where a property is owned by two or more persons or partnerships, or any combination thereof, the capital cost of the property to each such person or partnership shall be deemed to be the total of all amounts each of which is the capital cost of the property to such a person or partnership; notwithstanding paragraph (a), “exempt property” does not include property that is the subject of a lease if that property had, at the time the lease was entered into, an aggregate fair market value in excess of $1,000,000 and the lessee of the property is a person who uses the property in the course of carrying on a business, the income from which is exempt from tax under Part I of the Act by reason of any provision of the Act, a Canadian government, or a person not resident in Canada, except if the person uses the property primarily in the course of carrying on a business in Canada that is not a treaty-protected business; for the purposes of paragraph (a.1), if it is reasonable, having regard to all the circumstances, to conclude that one of the main reasons for the existence of two or more leases was to avoid the application of paragraph (a.1) by reason of each such lease being a lease of property where the property that was the subject of the lease had an aggregate fair market value, at the time the lease was entered into, not in excess of $1,000,000, each such lease shall be deemed to be a lease of property that had, at the time the lease was entered into, an aggregate fair market value in excess of $1,000,000; property shall be deemed to be the subject of a lease for a term of more than one year at any time where, at that time the property had been leased by the lessee thereunder, a person with whom the lessee does not deal at arm’s length, or any combination thereof, for a period of more than one year ending at that time, or it is reasonable, having regard to all the circumstances, to conclude that the lessor thereunder knew or ought to have known that the lessee thereunder, a person with whom the lessee does not deal at arm’s length, or any combination thereof, would lease the property for more than one year; and for the purposes of paragraph (1.11)(c), where it is reasonable, having regard to all the circumstances, to conclude that one of the main reasons for the existence of two or more leases was to avoid the application of subsection (1.1) by reason of each such lease being a lease of property where the tangible property, other than exempt property, that was the subject of the lease had an aggregate fair market value, at the time the lease was entered into, not in excess of $25,000, each such lease shall be deemed to be a lease of tangible property that had, at the time the lease was entered into, an aggregate fair market value in excess of $25,000. For the purposes of subsection (1.11) and notwithstanding subsection (1.13), where a taxpayer referred to in subsection (16) so elects in the taxpayer’s return of income under Part I of the Act for a taxation year in respect of the year and all subsequent taxation years, all of the property of the taxpayer that is the subject of leases entered into in those years shall be deemed not to be exempt property for those years and the aggregate fair market value of all of the tangible property that is the subject of each such lease shall be deemed to have been, at the time the lease was entered into, in excess of $25,000. Subject to subsection (1.16) and for the purposes of subsection (1.11), where at any time a taxpayer acquires property that is the subject of a lease with a remaining term at that time of more than one year from a person with whom the taxpayer was dealing at arm’s length, the taxpayer shall be deemed to have entered into a lease of the property at that time for a term of more than one year. Where, at any time, a taxpayer acquires from a person with whom the taxpayer is not dealing at arm’s length, or by virtue of an amalgamation (within the meaning assigned by subsection 87(1) of the Act), property that was specified leasing property of the person from whom, the taxpayer acquired it, the taxpayer shall, for the purposes of paragraph (1.1)(a) and for the purpose of computing the income of the taxpayer in respect of the lease for any period after the particular time, be deemed to be the same person as, and a continuation of, that person. For the purposes of subsections (1.1) and (1.11), where at any particular time a property (in this subsection referred to as a “replacement property”) is provided by a taxpayer to a lessee for the remaining term of a lease as a replacement for a similar property of the taxpayer (in this subsection referred to as the “original property”) that was leased by the taxpayer to the lessee, and the amount payable by the lessee for the use of, or the right to use, the replacement property is the same as the amount that was so payable in respect of the original property, the following rules apply: the replacement property shall be deemed to have been leased by the taxpayer to the lessee at the same time and for the same term as the original property; the amount of the loan referred to in clause (1.1)(a)(i)(A) shall be deemed to be equal to the amount of that loan determined in respect of the original property; the amount determined under subparagraph (1.1)(a)(ii) in respect of the replacement property shall be deemed to be equal to the amount so determined in respect of the original property; all amounts received or receivable by the taxpayer for the use of, or the right to use, the original property before the particular time shall be deemed to have been received or receivable, as the case may be, by the taxpayer for the use of, or the right to use, the replacement property; and the original property shall be deemed to have ceased to be subject to the lease at the particular time. For the purposes of subsection (1.1), where for any period of time any amount that would have been received or receivable by a taxpayer during that period in respect of the use of, or the right to use, a property of the taxpayer during that period is not received or receivable by the taxpayer as a consequence of a breakdown of the property during that period and before the lease of that property is terminated, that amount shall be deemed to have been received or receivable, as the case may be, by the taxpayer. For the purposes of subsections (1.1) and (1.11), where at any particular time an addition or alteration (in this subsection referred to as “additional property”) is made by a taxpayer to a property (in this subsection referred to as the “original property”) of the taxpayer that is a specified leasing property at the particular time, and as a consequence of the addition or alteration, the aggregate amount receivable by the taxpayer after the particular time for the use of, or the right to use, the original property and the additional property exceeds the amount so receivable in respect of the original property, the taxpayer shall be deemed to have leased the additional property to the lessee at the particular time, the term of the lease of the additional property shall be deemed to be greater than one year, the prescribed rate in effect at the particular time in respect of the additional property shall be deemed to be equal to the prescribed rate in effect in respect of the lease of the original property at the particular time, subsection (1.11) shall be read without reference to paragraph (c) thereof in respect of the additional property, and the excess described in paragraph (b) shall be deemed to be an amount receivable by the taxpayer for the use of, or the right to use, the additional property. For the purposes of subsections (1.1) and (1.11), where at any time a lease (in this subsection referred to as the “original lease”) of property is renegotiated in the course of a bona fide renegotiation, and as a result of the renegotiation, the amount paid or payable by the lessee of the property for the use of, or the right to use, the property is altered in respect of a period after that time (otherwise than by reason of an addition or alteration to which subsection (1.19) applies), the original lease shall be deemed to have expired and the renegotiated lease shall be deemed to be a new lease of the property entered into at that time, and paragraph (1.13)(b) shall not apply in respect of any period before that time during which the property was leased by the lessee or a person with whom the lessee did not deal at arm’s length. For the purposes of subsections (1.1) and (1.11), where a taxpayer leases to another person a building or part thereof that is not exempt property, the references to “one year” in paragraphs (1.11)(b) and (1.13)(b), subsection (1.15) and paragraph (1.19)(d) shall in respect of that building or part thereof be read as references to “three years”. The amount that a taxpayer may deduct for a taxation year under subsection (1) in respect of property of a class in Schedule II is to be determined as if the undepreciated capital cost to the taxpayer at the end of the taxation year (before making any deduction under subsection (1) for the taxation year) of property of the class were adjusted by adding the positive or negative amount determined by the formula is, in respect of property of the class that became available for use by the taxpayer in the taxation year and that is accelerated investment incentive property or property acquired before 2025 that is included in any of Classes 54 to 56, (a)if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 43.2, 53, 54, 55, 56 and 59 or in Class 43 in the circumstances described in paragraph (d),(i)1/2, for property that became available for use by the taxpayer before 2024, and(ii)nil, for property that became available for use by the taxpayer after 2023 (other than property referred to in any of paragraphs (c.1) to (c.3)), if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 43.2, 53, 54, 55, 56 and 59 or in Class 43 in the circumstances described in paragraph (d), (i)1/2, for property that became available for use by the taxpayer before 2024, and 1/2, for property that became available for use by the taxpayer before 2024, and (ii)nil, for property that became available for use by the taxpayer after 2023 (other than property referred to in any of paragraphs (c.1) to (c.3)), nil, for property that became available for use by the taxpayer after 2023 (other than property referred to in any of paragraphs (c.1) to (c.3)), (b)if the class is Class 43.1,(i)2 1/3, for property that became available for use by the taxpayer before 2024,(ii)1 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and(iii)5/6, for property that became available for use by the taxpayer after 2025, if the class is Class 43.1, (i)2 1/3, for property that became available for use by the taxpayer before 2024, 2 1/3, for property that became available for use by the taxpayer before 2024, (ii)1 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and 1 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and (iii)5/6, for property that became available for use by the taxpayer after 2025, 5/6, for property that became available for use by the taxpayer after 2025, (c)if the class is Class 43.2,(i)1, for property that became available for use by the taxpayer before 2024,(ii)1/2, for property that became available for use by the taxpayer in 2024 or 2025, and(iii)1/10, for property that became available for use by the taxpayer after 2025, if the class is Class 43.2, (i)1, for property that became available for use by the taxpayer before 2024, 1, for property that became available for use by the taxpayer before 2024, (ii)1/2, for property that became available for use by the taxpayer in 2024 or 2025, and 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and (iii)1/10, for property that became available for use by the taxpayer after 2025, 1/10, for property that became available for use by the taxpayer after 2025, (c.1)if the class is Class 44,(i)3, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and(ii)nil, for property that became available for use by the taxpayer after 2026, if the class is Class 44, (i)3, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and 3, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and (ii)nil, for property that became available for use by the taxpayer after 2026, nil, for property that became available for use by the taxpayer after 2026, (c.2)if the class is Class 46,(i)2 1/3, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and(ii)nil, for property that became available for use by the taxpayer after 2026, if the class is Class 46, (i)2 1/3, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and 2 1/3, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and (c.3)if the class is Class 50,(i)9/11, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and(ii)nil, for property that became available for use by the taxpayer after 2026, if the class is Class 50, (i)9/11, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and 9/11, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and (d)if the property is included in Class 53 or — for property acquired after 2025 — is included in Class 43 and would have been included in Class 53 if it had been acquired in 2025,(i)1, for property that became available for use by the taxpayer before 2024,(ii)1/2, for property that became available for use by the taxpayer in 2024 or 2025, and(iii)5/6, for property included in Class 43 that became available for use by the taxpayer after 2025, and(iv)1/10, for property included in Class 53 that became available for use by the taxpayer after 2025, if the property is included in Class 53 or — for property acquired after 2025 — is included in Class 43 and would have been included in Class 53 if it had been acquired in 2025, (iii)5/6, for property included in Class 43 that became available for use by the taxpayer after 2025, and 5/6, for property included in Class 43 that became available for use by the taxpayer after 2025, and (iv)1/10, for property included in Class 53 that became available for use by the taxpayer after 2025, 1/10, for property included in Class 53 that became available for use by the taxpayer after 2025, (e)if the class is Class 54 or Class 56,(i)2 1/3, for property that became available for use by the taxpayer before 2024,(ii)1 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and(iii)5/6, for property that became available for use by the taxpayer after 2025, if the class is Class 54 or Class 56, (f)if the class is Class 55,(i)1 1/2, for property that became available for use by the taxpayer before 2024,(ii)7/8, for property that became available for use by the taxpayer in 2024 or 2025, and(iii)3/8, for property that became available for use by the taxpayer after 2025, and if the class is Class 55, (i)1 1/2, for property that became available for use by the taxpayer before 2024, 1 1/2, for property that became available for use by the taxpayer before 2024, (ii)7/8, for property that became available for use by the taxpayer in 2024 or 2025, and 7/8, for property that became available for use by the taxpayer in 2024 or 2025, and (iii)3/8, for property that became available for use by the taxpayer after 2025, and 3/8, for property that became available for use by the taxpayer after 2025, and (g)in any other case, nil; in any other case, nil; is, in respect of property of the class that became available for use by the taxpayer in the taxation year and that is reaccelerated investment incentive property or property acquired after 2024 that is included in any of Classes 54 to 56, (a)if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 44, 46, 50, 53, 54, 55, 56 and 59 or in Class 43 in the circumstances described in paragraph (f),(i)1/2, for property that became available for use by the taxpayer before 2030, and(ii)nil, for property that became available for use by the taxpayer after 2029, if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 44, 46, 50, 53, 54, 55, 56 and 59 or in Class 43 in the circumstances described in paragraph (f), (i)1/2, for property that became available for use by the taxpayer before 2030, and 1/2, for property that became available for use by the taxpayer before 2030, and (ii)nil, for property that became available for use by the taxpayer after 2029, nil, for property that became available for use by the taxpayer after 2029, (b)if the class is Class 43.1,(i)2 1/3, for property that became available for use by the taxpayer before 2030,(ii)1 1/2, for property that became available for use by the taxpayer in 2030 or 2031, and(iii)5/6, for property that became available for use by the taxpayer after 2031, (i)2 1/3, for property that became available for use by the taxpayer before 2030, 2 1/3, for property that became available for use by the taxpayer before 2030, (ii)1 1/2, for property that became available for use by the taxpayer in 2030 or 2031, and 1 1/2, for property that became available for use by the taxpayer in 2030 or 2031, and (iii)5/6, for property that became available for use by the taxpayer after 2031, 5/6, for property that became available for use by the taxpayer after 2031, (c)if the class is Class 44,(i)3, for property that became available for use by the taxpayer before 2027, and(ii)nil, for property that became available for use by the taxpayer after 2026, (i)3, for property that became available for use by the taxpayer before 2027, and 3, for property that became available for use by the taxpayer before 2027, and (d)if the class is Class 46,(i)2 1/3, for property that became available for use by the taxpayer before 2027, and(ii)nil, for property that became available for use by the taxpayer after 2026, (i)2 1/3, for property that became available for use by the taxpayer before 2027, and 2 1/3, for property that became available for use by the taxpayer before 2027, and (e)if the class is Class 50,(i)9/11, for property that became available for use by the taxpayer before 2027, and(ii)nil, for property that became available for use by the taxpayer after 2026, (i)9/11, for property that became available for use by the taxpayer before 2027, and 9/11, for property that became available for use by the taxpayer before 2027, and (f)if the property is included in Class 53 or — for property acquired after 2025 — is included in Class 43 and would have been included in Class 53 if it had been acquired in 2025,(i)1, for property included in Class 53,(ii)2 1/3, for property included in Class 43 that became available for use by the taxpayer before 2030,(iii)1 1/2, for property included in Class 43 that became available for use by the taxpayer in 2030 or 2031,(iv)5/6, for property included in Class 43 that became available for use by the taxpayer after 2031, (i)1, for property included in Class 53, 1, for property included in Class 53, (ii)2 1/3, for property included in Class 43 that became available for use by the taxpayer before 2030, 2 1/3, for property included in Class 43 that became available for use by the taxpayer before 2030, (iii)1 1/2, for property included in Class 43 that became available for use by the taxpayer in 2030 or 2031, 1 1/2, for property included in Class 43 that became available for use by the taxpayer in 2030 or 2031, (iv)5/6, for property included in Class 43 that became available for use by the taxpayer after 2031, 5/6, for property included in Class 43 that became available for use by the taxpayer after 2031, (g)if the class is Class 54 or Class 56,(i)2 1/3, for property that became available for use by the taxpayer before 2030,(ii)1 1/2, for property that became available for use by the taxpayer in 2030 or 2031, and(iii)5/6, for property that became available for use by the taxpayer after 2031, (h)if the class is Class 55,(i)1 1/2, for property that became available for use by the taxpayer before 2030,(ii)7/8, for property that became available for use by the taxpayer in 2030 or 2031, and(iii)3/8, for property that became available for use by the taxpayer after 2031, and (i)1 1/2, for property that became available for use by the taxpayer before 2030, 1 1/2, for property that became available for use by the taxpayer before 2030, (ii)7/8, for property that became available for use by the taxpayer in 2030 or 2031, and 7/8, for property that became available for use by the taxpayer in 2030 or 2031, and (iii)3/8, for property that became available for use by the taxpayer after 2031, and 3/8, for property that became available for use by the taxpayer after 2031, and (i)in any other case, nil; is the amount determined, in respect of the class, by the formula is the total of all amounts, if any, each of which is an amount included in the description of A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property of the class that became available for use by the taxpayer in the taxation year and that is accelerated investment incentive property or property acquired before 2025 that is included in any of Classes 54 to 56, and is the amount, if any, by which the amount determined for G exceeds the amount determined for F in the description of C;

is the total of all amounts, if any, each of which is an amount included in the description of A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property of the class that became available for use by the taxpayer in the taxation year and that is reaccelerated investment incentive property or property acquired after 2024 that is included in any of classes 54 to 56, and is the amount, if any, by which the amount determined for G exceeds the amount determined for F; and is the total of all amounts each of which (a)is an amount added to the undepreciated capital cost to the taxpayer of property of the class(i)because of element A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property (other than accelerated investment incentive property or reaccelerated investment incentive property) that was acquired, or became available for use, by the taxpayer in the taxation year, or(ii)because of element C or D in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount that was repaid in the taxation year, and is an amount added to the undepreciated capital cost to the taxpayer of property of the class (i)because of element A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property (other than accelerated investment incentive property or reaccelerated investment incentive property) that was acquired, or became available for use, by the taxpayer in the taxation year, or because of element A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property (other than accelerated investment incentive property or reaccelerated investment incentive property) that was acquired, or became available for use, by the taxpayer in the taxation year, or (ii)because of element C or D in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount that was repaid in the taxation year, and because of element C or D in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount that was repaid in the taxation year, and (b)is not in respect of(i)property included in paragraph (1)(v), in paragraph (w) of Class 10 or in any of paragraphs (a) to (c), (e) to (i), (k), (l) and (p) to (s) of Class 12,(ii)property included in any of Classes 13, 14, 15, 23, 24, 27, 29, 34, 52 and 54 to 56,(iii)where the taxpayer was a corporation described in subsection (16) throughout the taxation year, property that was specified leasing property of the taxpayer at that time,(iv)property that was deemed to have been acquired by the taxpayer in a preceding taxation year by reason of the application of paragraph 16.1(1)(b) of the Act in respect of a lease to which the property was subject immediately before the time at which the taxpayer last acquired the property, or(v)property considered to have become available for use by the taxpayer in the taxation year by reason of paragraph 13(27)(b) or (28)(c) of the Act, and is not in respect of (i)property included in paragraph (1)(v), in paragraph (w) of Class 10 or in any of paragraphs (a) to (c), (e) to (i), (k), (l) and (p) to (s) of Class 12, property included in paragraph (1)(v), in paragraph (w) of Class 10 or in any of paragraphs (a) to (c), (e) to (i), (k), (l) and (p) to (s) of Class 12, (ii)property included in any of Classes 13, 14, 15, 23, 24, 27, 29, 34, 52 and 54 to 56, property included in any of Classes 13, 14, 15, 23, 24, 27, 29, 34, 52 and 54 to 56, (iii)where the taxpayer was a corporation described in subsection (16) throughout the taxation year, property that was specified leasing property of the taxpayer at that time, where the taxpayer was a corporation described in subsection (16) throughout the taxation year, property that was specified leasing property of the taxpayer at that time, (iv)property that was deemed to have been acquired by the taxpayer in a preceding taxation year by reason of the application of paragraph 16.1(1)(b) of the Act in respect of a lease to which the property was subject immediately before the time at which the taxpayer last acquired the property, or property that was deemed to have been acquired by the taxpayer in a preceding taxation year by reason of the application of paragraph 16.1(1)(b) of the Act in respect of a lease to which the property was subject immediately before the time at which the taxpayer last acquired the property, or (v)property considered to have become available for use by the taxpayer in the taxation year by reason of paragraph 13(27)(b) or (28)(c) of the Act, and property considered to have become available for use by the taxpayer in the taxation year by reason of paragraph 13(27)(b) or (28)(c) of the Act, and is the total of all amounts each of which is an amount deducted from the undepreciated capital cost to the taxpayer of property of the class (a)because of element F or G in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property disposed of in the taxation year, or because of element F or G in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property disposed of in the taxation year, or (b)because of element J in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount the taxpayer received or was entitled to receive in the taxation year. because of element J in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount the taxpayer received or was entitled to receive in the taxation year. Straddle years For the purposes of subsection (2), if a taxation year begins in 2023 and ends in 2024, the factor determined for A in subsection (2) is to be replaced by the factor determined by the formula is the factor otherwise determined for A in subsection (2) for 2023, is the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2023, is the factor otherwise determined for A in subsection (2) for 2024, and is the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation were property that became available for use by the taxpayer in 2024; and if a taxation year begins in 2025 and ends in 2026, the factor determined for A in subsection (2) is to be replaced by the factor determined by the formula is the factor otherwise determined for A in subsection (2) for 2025, is the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2025, is the factor otherwise determined for A in subsection (2) for 2026, and is the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2026. Straddle years — reaccelerated investment incentive property if a taxation year begins in 2029 and ends in 2030, the factor determined for A.1 in subsection (2) (other than for the purposes of paragraphs (c), (d) and (e) of the description of A.1 in subsection (2)) is to be replaced by the factor determined by the formula is the factor otherwise determined for A.1 in subsection (2) for 2029, is the amount that would be determined for D.1 in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2029, is the factor otherwise determined for A.1 in subsection (2) for 2030, and is the amount that would be determined for D.1 in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2030; for the purposes of paragraphs (c), (d) and (e) of the description of A.1 in subsection (2), if a taxation year begins in 2026 and ends in 2027, the factor determined for A.1 in subsection (2) is to be replaced by the factor determined by the formula is the factor otherwise determined for A.1 in subsection (2) for 2026, is the amount that would be determined for D.1 in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2026, is the factor otherwise determined for A.1 in subsection (2) for 2027, and is the amount that would be determined for D.1 in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2027; and if a taxation year begins in 2031 and ends in 2032, the factor determined for A.1 in subsection (2) is to be replaced by the factor determined by the formula is the factor otherwise determined for A.1 in subsection (2) for 2031, is the amount that would be determined for D.1 in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2031, is the factor otherwise determined for A.1 in subsection (2) for 2032, and is the amount that would be determined for D.1 in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2032. Expenditures excluded from element D For the purposes of subsection (2), in respect of property of a class in Schedule II that is accelerated investment incentive property of a taxpayer solely because of subparagraph 1104(4)(b)(i), amounts incurred by any person or partnership in respect of the property are not to be included in determining the amount for D in subsection (2) in respect of the class if the amounts are incurred before November 21, 2018, unless the property was acquired after November 20, 2018 by a person or partnership from another person or partnership (referred to in this subparagraph as the “transferee” and the “transferor”, respectively), the taxpayer, or a person or partnership that does not deal at arm’s length with the taxpayer, and held the property as inventory, and if the amounts are incurred after November 20, 2018 and amounts are deemed to have been deducted under paragraph 20(1)(a) or subsection 20(16), in respect of those amounts incurred, under paragraph 1104(4.1)(b); and any amount excluded from the amount determined for D in subsection (2) in respect of the class because of paragraph (a) is to be included in determining the amount for F in subsection (2) in respect of the class, unless no amount in respect of the property would be so included if the property were not accelerated investment incentive property of the taxpayer. Expenditures excluded from D.1 For the purposes of subsection (2), in respect of property of a class in Schedule II that is reaccelerated investment incentive property of a taxpayer solely because of subparagraph 1104(4.01)(b)(i), amounts incurred by any person or partnership in respect of the property are not to be included in determining the amount for D.1 in subsection (2) in respect of the class if the amounts are incurred before 2025, unless the property was acquired after 2024 by a person or partnership from another person or partnership (referred to in this subparagraph as the “transferee” and the “transferor”, respectively), if the amounts are incurred after 2024 and amounts are deemed to have been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act, in respect of those amounts incurred, under paragraph 1104(4.11)(b); and any amount excluded from the amount determined for D.1 in subsection (2) in respect of the class because of paragraph (a) is to be included in determining the amount for F in subsection (2) in respect of the class, unless no amount in respect of the property would be so included if the property were not reaccelerated investment incentive property of the taxpayer. Where a taxpayer has, after November 12, 1981 and before 1983, acquired or incurred a capital cost in respect of a property of a class in Schedule II and he was obligated to acquire the property under the terms of an agreement in writing entered into before November 13, 1981 (or, where the property is a property described in Class 31 in Schedule II, before 1982), he or a person with whom he was not dealing at arm’s length commenced the construction, manufacture or production of the property before November 13, 1981 (or, where the property is a property described in Class 31 in Schedule II, before 1982), he or a person with whom he was not dealing at arm’s length had made arrangements, evidenced in writing for the construction, manufacture or production of the property that were substantially advanced before November 13, 1981 and the construction, manufacture or production commenced before June 1, 1982, or he was obligated to acquire the property under the terms of an agreement in writing entered into before June 1, 1982 where arrangements, evidenced in writing, for the acquisition or leasing of the property were substantially advanced before November 13, 1981, no amount shall be included under paragraph (2)(a) in respect of the property; where the property is a property to which paragraph (1)(b) applies, that paragraph shall be read, in respect of the property, as “such amount, not exceeding the amount for the year calculated in accordance with Schedule III, as he may claim in respect of the capital cost to him of property of Class 13 in Schedule II”; where the property is a property of a class to which paragraph (1)(t) or (ta) applies, the property shall be deemed to be designated property of the class; and where the property is a property described in paragraph (1)(v), subparagraph (iv) thereof shall be read, in respect of the property, as “33 1/3 per cent of the capital cost thereof to him, and”. Where a property of a class in Schedule II is acquired by a taxpayer in the course of a reorganization in respect of which, if a dividend were received by a corporation in the course of the reorganization, subsection 55(2) of the Act would not be applicable to the dividend by reason of the application of paragraph 55(3)(b) of the Act, or [Repealed, SOR/90-22, s. 1] from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired, and where the property was depreciable property of the person from whom it was acquired and was owned continuously by that person for the period from a day that was at least 364 days before the end of the taxation year of the taxpayer during which he acquired the property, or November 12, 1981 to the day it was acquired by the taxpayer, or the rules provided in subsection (2.1) or this subsection applied in respect of the property for the purpose of determining the allowance under subsection (1) to which the person from whom the taxpayer acquired the property was entitled, no amount shall be included in determining an amount for F in subsection (2) in respect of the property; where the property is a property of a class to which paragraph (1)(ta) applies, the property shall be deemed to be designated property of the class, for the purposes of computing the amount determined under paragraph (1)(ta) for any taxation year of the taxpayer ending after the time the property was actually acquired by the taxpayer, the property shall be deemed, other than for the purposes of paragraph (f), to have been acquired by the taxpayer immediately after the commencement of the taxpayer’s first taxation year that commenced after the time that is the earlier of the time the property was last acquired by the transferor of the property, and where the property was transferred in a series of transfers to which this subsection applies, the time the property was last acquired by the first transferor in that series, unless where clause (A) applies, the property was acquired by the taxpayer before the end of the taxation year of the transferor of the property that includes the time at which that transferor acquired the property, or where clause (B) applies, the property was acquired by the taxpayer before the end of the taxation year of the first transferor that includes the time at which that transferor acquired the property, where the taxpayer is a corporation that was incorporated or otherwise formed after the end of the transferor’s, or where applicable, the first transferor’s, taxation year in which the transferor last acquired the property, the taxpayer shall be deemed, for the purposes of subparagraph (ii), to have been in existence throughout the period commencing immediately before the end of that year and ending immediately after the taxpayer was incorporated or otherwise formed, and to have had, throughout the period referred to in clause (A), fiscal periods ending on the day of the year on which the taxpayer’s first fiscal period ended, and the property shall be deemed to have become available for use by the taxpayer at the earlier of the time it became available for use by the taxpayer, and if applicable, the time it became available for use by the person from whom the taxpayer acquired the property, determined without reference to paragraphs 13(27)(c) and (28)(d) of the Act, or the time it became available for use by the first transferor in a series of transfers of the same property to which this subsection applies, determined without reference to paragraphs 13(27)(c) and (28)(d) of the Act; and if the property is a property described in paragraph (1)(v), its subparagraph (iv) shall be read, in respect of the property, as “33 1/3 per cent of the capital cost of the property to the taxpayer, and”. Where a taxpayer is deemed by a provision of the Act to have disposed of and acquired or reacquired a property, for the purposes of paragraph (2.2)(e) and subsections (19), 1101(lad) and 1102(14) and (14.1), the acquisition or reacquisition shall be deemed to have been from a person with whom the taxpayer was not dealing at arm’s length at the time of the acquisition or reacquisition; and for the purposes of paragraphs (2.2)(f) and (g), the taxpayer shall be deemed to be the person from whom the taxpayer acquired or reacquired the property. If a taxpayer has disposed of a property and, because of paragraph (2.2)(h), no amount is required to be included in determining an amount for F in subsection (2) in respect of the property by the person that acquired the property, no amount shall be included by the taxpayer in determining an amount for G in subsection (2) in respect of the disposition of the property. For the purposes of subsection (2), where a taxpayer has disposed of property described in Class 10 of Schedule II that would qualify as property described in paragraph (e) of Class 16 of Schedule II if the property had been acquired by the taxpayer after November 12, 1981, the proceeds of disposition of the property shall be deemed to be proceeds of disposition of property described in Class 16 of Schedule II and not of property described in Class 10 of Schedule II. Where in a particular taxation year a taxpayer disposes of a property included in Class 10.1 in Schedule II that was owned by the taxpayer at the end of the immediately preceding taxation year, the deduction allowed under subsection (1) in respect of the property in computing the taxpayer’s income for the year shall be determined as if the property had not been disposed of in the particular year and the number of days in the particular year were one-half of the number of days in the particular year otherwise determined; and no amount shall be deducted under subsection (1) in respect of the property in computing the taxpayer’s income for any subsequent taxation year. Where a taxation year is less than 12 months, the amount allowed as a deduction under this section, other than under subsection (0.1) and any of paragraphs (1)(c), (e), (f), (g), (m), (w), (x), (y) and (ya), shall not exceed that proportion of the maximum amount otherwise allowable that the number of days in the taxation year is of 365. Reserved. [Repealed, SOR/78-377, s. 6] [Repealed, SOR/91-673, s. 1] Where a taxpayer, other than an operator of a railway system, has made a capital expenditure pursuant to a contract or arrangement with an operator of a railway system under which a railway siding that does not become the taxpayer’s property is constructed to provide service to the taxpayer’s place of business or to a property acquired by the taxpayer for the purpose of gaining or producing income, there is hereby allowed to the taxpayer, in computing income for the taxation year from the business or property, as the case may be, a deduction equal to such amount as he may claim not exceeding four per cent of the amount remaining, if any, after deducting from the capital expenditure the aggregate of all amounts previously allowed as deductions in respect of the expenditure. Where a part or all of the cost of a patent is determined by reference to the use of the patent, in lieu of the deduction allowed under paragraph (1)(c), a taxpayer, in computing his income for a taxation year from a business or property, as the case may be, may deduct such amount as he may claim in respect of property of Class 14 in Schedule II not exceeding the lesser of that part of the capital cost determined by reference to the use of the patent in the year, and the amount that would be computed under subparagraph (1)(c)(i) if the capital cost of the patent did not include the amounts determined by reference to the use of the patent in that year and previous years; and the undepreciated capital cost to him as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class. Where a part or all of the capital cost to a taxpayer of property that is a patent, or a right to use patented information, is determined by reference to the use of the property and that property is included in Class 44 in Schedule II, in lieu of the deduction allowed under paragraph (1)(a), there may be deducted in computing the taxpayer’s income for a taxation year from a business or property such amount as the taxpayer may claim in respect of property of the class not exceeding the lesser of that part of the capital cost that is determined by reference to the use of the property in the year, and the amount that would be deductible for the year by reason of paragraph (1)(a) in respect of property of the class if the capital cost of property of the class did not include the amounts determined under subparagraph (i) for the year and preceding taxation years; and the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under this subsection for the taxation year) of property of the class. Despite subsections (0.1) and (1), in no case shall the aggregate of deductions, each of which is a deduction in respect of property of a prescribed class owned by a taxpayer that includes rental property owned by him, otherwise allowed to the taxpayer by virtue of subsection (0.1) or (1) in computing his income for a taxation year, exceed the amount, if any, by which the aggregate of amounts each of which is his income for the year from renting or leasing a rental property owned by him, computed without regard to paragraph 20(1)(a) of the Act, or the income of a partnership for the year from renting or leasing a rental property of the partnership, to the extent of the taxpayer’s share of such income, his loss for the year from renting or leasing a rental property owned by him, computed without regard to paragraph 20(1)(a) of the Act, or the loss of a partnership for the year from renting or leasing a rental property of the partnership, to the extent of the taxpayer’s share of such loss. Subject to subsection (13), subsection (11) does not apply in respect of a taxation year of a taxpayer that was, throughout the year, a life insurance corporation, or a corporation whose principal business was the leasing, rental, development or sale, or any combination thereof, of real property owned by it; or a partnership each member of which was a corporation described in paragraph (a), or another partnership described in this paragraph. For the purposes of subsection (11), where a taxpayer or partnership has a leasehold interest in a property that is property of Class 1, 3 or 6 in Schedule II by virtue of subsection 1102(5) and the property is leased by the taxpayer or partnership to a person who owns the land, an interest therein or an option in respect thereof, on which the property is situated, this section shall be read without reference to subsection (12) with respect to that property. In this section and section 1101, rental property of a taxpayer or a partnership means a building owned by the taxpayer or the partnership, whether owned jointly with another person or otherwise, or a leasehold interest in real property, if the leasehold interest is property of Class 1, 3, 6 or 13 in Schedule II and is owned by the taxpayer or the partnership, if, in the taxation year in respect of which the expression is being applied, the property was used by the taxpayer or the partnership principally for the purpose of gaining or producing gross revenue that is rent, but, for greater certainty, does not include a property leased by the taxpayer or the partnership to a lessee, in the ordinary course of the taxpayer’s or partnership’s business of selling goods or rendering services, under an agreement by which the lessee undertakes to use the property to carry on the business of selling, or promoting the sale of, the taxpayer’s or partnership’s goods or services. For the purposes of subsection (14), gross revenue derived in a taxation year from the right of a person or partnership, other than the owner of a property, to use or occupy the property or a part thereof, and services offered to a person or partnership that are ancillary to the use or occupation by the person or partnership of the property or the part thereof shall be considered to be rent derived in that year from the property. Subsection (14.1) does not apply in any particular taxation year to property owned by a corporation, where the property is used in a business carried on in the year by the corporation; an individual, where the property is used in a business carried on in the year by the individual in which he is personally active on a continuous basis throughout that portion of the year during which the business is ordinarily carried on; or a partnership, where the property is used in a business carried on in the year by the partnership if at least 2/3 of the income or loss, as the case may be, of the partnership for the year is included in the determination of the income of members of the partnership who are individuals that are personally active in the business of the partnership on a continuous basis throughout that portion of the year during which the business is ordinarily carried on, and members of the partnership that are corporations. Despite subsections (0.1) and (1), in no case shall the aggregate of deductions, each of which is a deduction in respect of property of a prescribed class that is leasing property owned by a taxpayer, otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing his income for a taxation year, exceed the amount, if any, by which his income for the year from renting, leasing or earning royalties from, a leasing property or a property that would be a leasing property but for subsection (18), (19) or (20) where such property is owned by him, computed without regard to paragraph 20(1)(a) of the Act, or the income of a partnership for the year from renting, leasing or earning royalties from, a leasing property or a property that would be a leasing property but for subsection (18), (19) or (20) where such property is owned by the partnership, to the extent of the taxpayer’s share of such income, his loss for the year from renting, leasing or earning royalties from, a property referred to in subparagraph (a)(i), computed without regard to paragraph 20(1)(a) of the Act, or the loss of a partnership for the year from renting, leasing or earning royalties from, a property referred to in subparagraph (a)(ii), to the extent of the taxpayer’s share of such loss. Subsection (15) does not apply in respect of a taxation year of a taxpayer that was, throughout the year, a corporation whose principal business was renting or leasing of leasing property or property that would be leasing property but for subsection (18), (19) or (20), or renting or leasing of property referred to in subparagraph (i) combined with selling and servicing of property of the same general type and description, if the gross revenue of the corporation for the year from such principal business was not less than 90 per cent of the gross revenue of the corporation for the year from all sources; or Subject to subsection (18), in this section and section 1101, leasing property of a taxpayer or a partnership means depreciable property other than rental property, computer tax shelter property, or property referred to in paragraph (w) of Class 10 or in paragraph (n) of Class 12 in Schedule II, where such property is owned by the taxpayer or the partnership, whether jointly with another person or otherwise, if, in the taxation year in respect of which the expression is being applied, the property was used by the taxpayer or the partnership principally for the purpose of gaining or producing gross revenue that is rent, royalty or leasing revenue, but for greater certainty, does not include a property leased by the taxpayer or the partnership to a lessee, in the ordinary course of the taxpayer’s or partnership’s business of selling goods or rendering services, under an agreement by which the lessee undertakes to use the property to carry on the business of selling, or promoting the sale of, the taxpayer’s or partnership’s goods or services. For the purposes of subsection (17), where, in a taxation year, a taxpayer or a partnership has acquired a property that was not used for any purpose in that year, and the first use of the property by the taxpayer or the partnership was principally for the purpose of gaining or producing gross revenue that is rent, royalty or leasing revenue, the property shall be deemed to have been used in the taxation year in which it was acquired principally for the purpose of gaining or producing gross revenue that is rent, royalty or leasing revenue. For the purposes of subsections (1.11) and (17), gross revenue derived in a taxation year from shall be considered to be rent derived in the year from the property. Subsection (17.2) does not apply in any particular taxation year to property owned by Leasing property of a taxpayer or a partnership referred to in subsection (17) does not include property that the taxpayer or the partnership acquired before May 26, 1976 or was obligated to acquire under the terms of an agreement in writing entered into before May 26, 1976; property the construction, manufacture or production of which was commenced by the taxpayer or the partnership before May 26, 1976 or was commenced under an agreement in writing entered into by the taxpayer or the partnership before May 26, 1976; or property that the taxpayer or the partnership acquired on or before December 31, 1976 or was obligated to acquire under the terms of an agreement in writing entered into on or before December 31, 1976, if arrangements, evidenced by writing, respecting the acquisition, construction, manufacture or production of the property had been substantially advanced before May 26, 1976, and the taxpayer or the partnership had before May 26, 1976 demonstrated a bona fide intention to acquire the property for the purpose of gaining or producing gross revenue that is rent, royalty or leasing revenue. Notwithstanding subsection (17), a property acquired by a taxpayer that would otherwise be leasing property of the taxpayer, shall be deemed not to be leasing property of the taxpayer if immediately before it was so acquired by the taxpayer, it was, by virtue of subsection (18) or (20) or this subsection, not a leasing property of the person from whom the property was so acquired. Notwithstanding subsection (17), a property acquired by a taxpayer or partnership that is a replacement property (within the meaning assigned by subsection 13(4) of the Act), that would otherwise be a leasing property of the taxpayer or partnership, shall be deemed not to be a leasing property of the taxpayer or partnership if the property replaced, referred to in paragraph 13(4)(a) or (b) of the Act, was, by reason of subsection (18) or (19) or this subsection, not a leasing property of the taxpayer or partnership immediately before it was disposed of by the taxpayer or partnership. The total of all amounts each of which is a deduction in respect of computer tax shelter property allowed to the taxpayer under subsection (0.1) or (1) in computing a taxpayer’s income for a taxation year shall not exceed the amount, if any, by which the total of all amounts each of which is the taxpayer’s income for the year from a business in which computer tax shelter property owned by the taxpayer is used, computed without reference to any deduction under subsection (1) in respect of such property, or the income of a partnership from a business in which computer tax shelter property of the partnership is used, to the extent of the share of such income that is included in computing the taxpayer’s income for the year, a loss of the taxpayer from a business in which computer tax shelter property owned by the taxpayer is used, computed without reference to any deduction under subsection (1) in respect of such property, or a loss of a partnership from a business in which computer tax shelter property of the partnership is used, to the extent of the share of such loss that is included in computing the taxpayer’s income for the year. For the purpose of this Part, computer tax shelter property of a person or partnership is depreciable property of a prescribed class in Schedule II that is computer software or property described in Class 50 or 52 where the person’s or partnership’s interest in the property is a tax shelter investment (as defined by subsection 143.2(1) of the Act) determined without reference to subsection (20.1); or an interest in the person or partnership is a tax shelter investment (as defined by subsection 143.2(1) of the Act) determined without reference to subsection (20.1). Notwithstanding subsection (1), where a taxpayer (in this subsection and subsection (22) referred to as the “investor”) has acquired property of Class 10 or 12 in Schedule II that is a certified feature film or certified production (in this subsection and subsection (22) referred to as the “film or tape”), in no case shall the deduction in respect of property of that class otherwise allowed to the investor by virtue of subsection (1) in computing the investor’s income for a particular taxation year exceed the amount that it would be if the capital cost to the investor of the film or tape were reduced by the aggregate of amounts, each of which is where the principal photography or taping of the film or tape is not completed before the end of the particular taxation year, the amount, if any, by which the capital cost to the investor of the film or tape as of the end of the year where the principal photography or taping of the film or tape is completed within 60 days after the end of the year, the amount that may reasonably be considered to be the investor’s proportionate share of the production costs incurred in respect of the film or tape before the end of the year, where the principal photography or taping of the film or tape is not completed within 60 days after the end of the year, the amount that may reasonably be considered to be the investor’s proportionate share of the lesser of the production costs incurred in respect of the film or tape before the end of the year, and the proportion of the production costs incurred to the date the principal photography or taping is completed that the percentage of the principal photography or taping completed as of the end of the year, as certified by the Minister of Communications, is of 100 per cent, and the total of amounts determined under paragraphs (b) to (e) in respect of the film or tape as of the end of the year; where, at any time before the later of the date the principal photography or taping of the film or tape is completed, and the date the investor acquired the film or tape, a revenue guarantee (other than a revenue guarantee that is certified by the Minister of Communications to be a guarantee under which the person who agrees to provide the revenue is a licensed broadcaster or bona fide film or tape distributor) is entered into in respect of the film or tape whereby it may reasonably be considered certain, having regard to all the circumstances, that the investor will receive revenue under the terms of the revenue guarantee, the amount, if any, that may reasonably be considered to be the portion of the revenue that has not been included in the investor’s income in the particular taxation year or a previous taxation year; where, at any time, a revenue guarantee, other than a revenue guarantee in respect of which paragraph (b) applies, or a revenue guarantee under which the person (in this subsection referred to as the “guarantor”) who agrees to provide the revenue under the terms of the guarantee is a person who does not deal at arm’s length with either the investor or the person from whom the investor acquired the film or tape (in this subsection referred to as the “vendor”) and in respect of which the Minister of Communications certifies that the guarantor is a licenced broadcaster or bona fide film or tape distributor, and the cost of the film or tape does not include any amount for or in respect of the guarantee, is entered into in respect of the film or tape, the amount, if any, that may reasonably be considered to be the portion of the revenue that is to be received by the investor under the terms of the revenue guarantee that has not been included in the investor’s income in the particular taxation year or a preceding taxation year, if the guarantor and the investor are not dealing at arm’s length, the vendor and the guarantor are not dealing at arm’s length, or the vendor or a person not dealing at arm’s length with the vendor undertakes in any way, directly or indirectly, to fulfill all or any part of the guarantor’s obligations under the terms of the revenue guarantee; where, at any time, a revenue guarantee, other than a revenue guarantee in respect of which paragraph (b) or (c) applies, is entered into in respect of the film or tape, the amount, if any, that may reasonably be considered to be the portion of the revenue that is to be received by the investor under the terms of the revenue guarantee that is not due to the investor until a time that is more than four years after the first day on which the guarantor has the right to the use of the film or tape, and has not been included in the investor’s income in the particular taxation year or a previous taxation year; and the portion of any debt obligation of the investor outstanding at the end of the particular year that is convertible into an interest in the film or tape or in the investor. Despite subsections (0.1) and (1), where a taxpayer has acquired property described in paragraph (s) of Class 10 in Schedule II, or in paragraph (m) of Class 12 of Schedule II, the deduction in respect of the property otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing the taxpayer’s income for a taxation year shall not exceed the amount that it would be if the capital cost to the taxpayer of the property were reduced by the portion of any debt obligation of the taxpayer outstanding at the end of the year that is convertible into an interest or, for civil law, a right in the property or an interest in the taxpayer. Notwithstanding subsection (1), where an investor has acquired a film or tape after his 1977 taxation year and before 1979 and the principal photography or taping in respect of the film or tape is completed after a particular taxation year and not later than March 1, 1979, in no case shall the deduction in respect of property of Class 12 in Schedule II otherwise allowed to the investor by virtue of subsection (1) in computing his income for the particular taxation year exceed the amount, otherwise determined, if the capital cost to the investor of the film or tape were reduced by the amount, if any, by which the amount that may reasonably be considered to be the investor’s proportionate share of the production costs incurred in respect of the film or tape to March 1, 1979. For the purposes of paragraph (21)(a), in respect of a film or tape acquired in 1987, other than a film or tape in respect of which paragraph (b) applies, the references in paragraph (21)(a) to “within 60 days after the end of the year” shall be read as references to “before July, 1988”; and in respect of a film or tape acquired in 1987 or 1988 that is included in paragraph (n) of Class 12 in Schedule II and that is part of a series of films or tapes that includes another property included in that paragraph, the references in paragraph (21)(a) to “within 60 days after the end of the year” shall be read as references to “before 1989”. Despite subsections (0.1) and (1), in no case shall the total of deductions, each of which is a deduction in respect of property of Class 34, 43.1, 43.2, 47 or 48 in Schedule II that is specified energy property owned by a taxpayer, otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing the taxpayer’s income for a taxation year, exceed the amount, if any, by which the amount that would be the income of the taxpayer for the year from property described in Class 34, 43.1, 43.2, 47 or 48 in Schedule II (other than specified energy property), or from the business of selling the product of that property, if that income were calculated after deducting the maximum amount allowable in respect of the property for the year under paragraph 20(1)(a) of the Act, and the taxpayer’s income for the year from specified energy property or from the business of selling the product of that property, computed without regard to paragraph 20(1)(a) of the Act, or the taxpayer’s share of the amount that would be the income of a partnership for the year from property described in Class 34, 43.1, 43.2, 47 or 48 in Schedule II (other than specified energy property), or from the business of selling the product of that property, if that income were calculated after deducting the maximum amount allowable in respect of the property for the year under paragraph 20(1)(a) of the Act, and the income of a partnership for the year from specified energy property or from the business of selling the product of that property of the partnership, to the extent of the taxpayer’s share of that income, the taxpayer’s loss for the year from specified energy property or from the business of selling the product of that property, computed without regard to paragraph 20(1)(a) of the Act, or the loss of a partnership for the year from specified energy property or from the business of selling the product of that property of the partnership, to the extent of the taxpayer’s share of that loss. Subject to subsections (27) to (29), in this section and section 1101, specified energy property of a taxpayer or partnership (in this subsection referred to as “the owner”) for a taxation year means property of Class 34 in Schedule II acquired by the owner after February 9, 1988 and property of Class 43.1, 43.2, 47 or 48 in Schedule II, other than a particular property acquired to be used by the owner primarily for the purpose of gaining or producing income from a business carried on in Canada (other than the business of selling the product of the particular property) or from another property situated in Canada, or leased in the year, in the ordinary course of carrying on a business of the owner in Canada, to a person who can reasonably be expected to use the property primarily for the purpose of gaining or producing income from a business carried on in Canada (other than the business of selling the product of the particular property) or from another property situated in Canada, or a corporation or partnership described in subsection (26), where the owner was a corporation whose principal business was, throughout the year, the renting or leasing of leasing property or property that would be leasing property but for subsection (18), (19) or (20), the renting or leasing of property referred to in clause (A) combined with the selling and servicing of property of the same general type and description, or the manufacturing of property described in Class 34, 43.1, 43.2, 47 or 48 in Schedule II that it sells or leases, and the gross revenue of the corporation for the year from that principal business was not less than 90 per cent of the gross revenue of the corporation for the year from all sources, or a corporation described in subparagraph (iii) or paragraph (26)(a), or another partnership described in this subparagraph. Subsection (24) does not apply to a taxation year of a taxpayer that was, throughout the year, a corporation whose principal business throughout the year was manufacturing or processing, mining operations, or the sale, distribution or production of electricity, natural gas, oil, steam, heat or any other form of energy or potential energy; or Specified energy property of a person or partnership does not include property acquired by the person or partnership after February 9, 1988 and before 1990 pursuant to an obligation in writing entered into by the person or partnership before February 10, 1988; pursuant to the terms of a prospectus, preliminary prospectus, registration statement or offering memorandum filed before February 10, 1988 with a public authority in Canada pursuant to and in accordance with the securities legislation of any province; pursuant to the terms of an offering memorandum distributed as part of an offering of securities where the offering memorandum contained a complete or substantially complete description of the securities contemplated in the offering as well as the terms and conditions of the offering of the securities, the offering memorandum was distributed before February 10, 1988, solicitations in respect of the sale of the securities contemplated by the offering memorandum were made before February 10, 1988, and the sale of the securities was substantially in accordance with the offering memorandum; or as part of a project where, before February 10, 1988, some of the machinery or equipment to be used in the project had been acquired, or agreements in writing for the acquisition of that machinery or equipment had been entered into, by or on behalf of the person or partnership, and an approval had been received by or on behalf of the person or partnership from a government environmental authority in respect of the location of the project.

A property acquired by a taxpayer from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired that would otherwise be specified energy property of the taxpayer shall be deemed not to be specified energy property of the taxpayer if, immediately before it was so acquired by the taxpayer, it was not, by virtue of subsection (27), this subsection or subsection (29), specified energy property of the person from whom the property was so acquired. A property acquired by a taxpayer or partnership that is a replacement property (within the meaning assigned by subsection 13(4) of the Act), that would otherwise be specified energy property of the taxpayer or partnership, shall be deemed not to be specified energy property of the taxpayer or partnership if the property replaced, referred to in paragraph 13(4)(a) or (b) of the Act, was, by virtue of subsection (27), (28) or this subsection, not specified energy property of the taxpayer or partnership immediately before it was disposed of by the taxpayer or partnership. [Repealed, SOR/88-165, s. 6] Any election under subparagraph 13(21)(f)(vi) of the Act in respect of property of a prescribed class acquired by a corporation for the purpose of gaining or producing income from a mine shall be made by filing with the Minister, not later than the day on or before which the corporation is required to file a return of income pursuant to section 150 of the Act for its taxation year in which the exempt period in respect of the mine ended, one of the following documents in duplicate: where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made in respect of that class; and where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election in respect of that class by the person or persons legally entitled to administer the affairs of the corporation. Where more than one property of a taxpayer is described in the same class in Schedule II and where one of the properties was acquired for the purpose of gaining or producing income from a business, and one of the properties was acquired for the purpose of gaining or producing income from another business or from the property, a separate class is hereby prescribed for the properties that were acquired for the purpose of gaining or producing income from each business; and would otherwise be included in the class. For the purposes of subsection (1), a life insurance business, and an insurance business other than a life insurance business, shall each be regarded as a separate business. Where, at the end of 1971, more than one property of a taxpayer who was a member of a partnership at that time is described in the same class in Schedule II and where one of the properties can reasonably be regarded to be the interest of the taxpayer in a depreciable property that is partnership property of the partnership, and one of the properties is property other than property referred to in paragraph (a), a separate class is hereby prescribed for all properties each of which is a property referred to in paragraph (a); and Subject to subsection (5h), where more than one property of a taxpayer is described in the same class in Schedule II, and one or more of the properties is a rental property of the taxpayer the capital cost of which to the taxpayer was not less than $50,000, a separate class is hereby prescribed for each such rental property of the taxpayer that would otherwise be included in the same class, other than a rental property that was acquired by the taxpayer before 1972 or that is a building or an interest therein, or a leasehold interest acquired by the taxpayer by reason of the fact that the taxpayer erected a building on leased land, erection of which building was commenced by the taxpayer before 1972 or pursuant to an agreement in writing entered into by the taxpayer before 1972. For the purposes of this Part, each property of a taxpayer that is a new purpose-built residential rental is prescribed to be a separate class of property. Notwithstanding subsection (1ac), a rental property acquired by a taxpayer [Repealed, SOR/90-22, s. 2] that would otherwise be rental property of the taxpayer of a separate class prescribed under subsection (1ac), shall be deemed not to be property of a separate class prescribed under that subsection if, immediately before it was so acquired by the taxpayer, it was a rental property of the person from whom the property was so acquired of a prescribed class other than a separate class prescribed under that subsection. Except in the case of a corporation or partnership described in subsection 1100(12), where more than one property of a taxpayer is described in the same class in Schedule II and where one of the properties is a rental property other than a property of a separate class prescribed under subsection (1ac), and one of the properties is a property other than rental property, a separate class is hereby prescribed for properties that are described in paragraph (a); and A separate class is hereby prescribed for each property included in Class 10.1 in Schedule II. If more than one property of a taxpayer is described in the same class in Schedule II, and one or more of the properties is a property in respect of which the taxpayer is a transferee that has elected under subsection 13(4.2) of the Act (each of which is referred to in this subsection as an “elected property”), a separate class is prescribed for each elected property of the taxpayer that would otherwise be included in the same class. [Repealed, SOR/79-670, s. 1] Where a property of a taxpayer that would otherwise be included in Class 7 in Schedule II is a property in respect of which a depreciation allowance could have been taken under Order in Council P.C. 2798 of April 10, 1942, P.C. 7580 of August 26, 1942, as amended by P.C. 3297 of April 22, 1943, or P.C. 3979 of June 1, 1944, if those Orders in Council were applicable to the taxation year, a separate class is hereby prescribed for each property, including the furniture, fittings and equipment attached thereto. A separate class is hereby prescribed for each vessel of a taxpayer, including the furniture, fittings, radiocommunication equipment and other equipment attached thereto, that was constructed in Canada; is registered in Canada; and had not been used for any purpose whatever before it was acquired by the taxpayer. A separate class is hereby prescribed for all vessels described in Class 7 in Schedule II, including the furniture, fittings, radiocommunication equipment and other equipment attached thereto, acquired by a taxpayer after May 25, 1976 and designed principally for the purpose of determining the existence, location, extent or quality of accumulations of petroleum or natural gas (other than mineral resources), or drilling oil or gas wells; or after May 22, 1979 and designed principally for the purpose of determining the existence, location, extent or quality of mineral resources. Subsections (2a) and (2b) do not apply to a vessel, nor to the furniture, fittings, radio communications equipment and other equipment attached to the vessel, if a structured financing facility relating to any such property has been agreed to by the Minister of Industry under the Department of Industry Act. A separate class is prescribed for each vessel of a taxpayer described in Class 7 in Schedule II, including the furniture, fittings, radiocommunication equipment and other equipment attached to the vessel, that has been used by the taxpayer to earn income that would not be included in computing the income of the taxpayer because of paragraph 81(1)(c.1) of the Act. For the purposes of this Part and Schedules IV and VI, each property of a taxpayer that is a timber limit other than a timber resource property, or a right to cut timber from a limit other than a right that is a timber resource property, is hereby prescribed to be a separate class of property. For the purposes of this Part and Schedule V, where a taxpayer has more than one industrial mineral mine in respect of which he may claim an allowance under paragraph 1100(1)(g), more than one right to remove industrial minerals from an industrial mineral mine in respect of which he may claim an allowance under that paragraph, or both such a mine and a right, each such industrial mineral mine and each such right to remove industrial minerals from an industrial mineral mine is hereby prescribed to be a separate class of property. If one or more properties of a taxpayer are described in Class 28 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (which properties are referred to as “single mine properties” in this subsection), a separate class is prescribed for the single mine properties that were acquired for the purpose of gaining or producing income from that mine; would otherwise be included in Class 28; and are not included in a separate class by reason of subsection (4b). If more than one property of a taxpayer is described in Class 28 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (which properties are referred to as “multiple mine properties” in this subsection), a separate class is prescribed for the multiple mine properties that were acquired for the purpose of gaining or producing income from the particular mines; and would otherwise be included in Class 28. If one or more properties of a taxpayer are described in paragraph (a), (a.1) or (a.2) of Class 41 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (which properties are referred to as “single mine properties” in this subsection), a separate class is prescribed for the single mine properties that would otherwise be included in Class 41; and are not included in a separate class by reason of subsection (4d). If more than one property of a taxpayer is described in paragraph (a), (a.1) or (a.2) of Class 41 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (which properties are referred to as “multiple mine properties” in this subsection), a separate class is prescribed for the multiple mine properties that would otherwise be included in Class 41. If one or more properties of a taxpayer are described in paragraph (a) of Class 41.1 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (which properties are referred to as “single mine properties” in this subsection), a separate class is prescribed for the single mine properties that would otherwise be included in Class 41.1, because of paragraph (a) of that class; and are not included in a separate class by reason of subsection (4f). If more than one property of a taxpayer is described in paragraph (a) of Class 41.1 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (which properties are referred to as “multiple mine properties” in this subsection), a separate class is prescribed for the multiple mine properties that would otherwise be included in Class 41.1 because of paragraph (a) of that class. If one or more properties of a taxpayer are described in paragraph (a) of Class 41.2 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (in this subsection referred to as “single mine properties”), a separate class is prescribed for the single mine properties that would otherwise be included in Class 41.2 because of paragraph (a) of that class; and are not included in a separate class because of subsection (4h). If more than one property of a taxpayer is described in paragraph (a) of Class 41.2 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (in this subsection referred to as “multiple mine properties”), a separate class is prescribed for the multiple mine properties that would otherwise be included in Class 41.2 because of paragraph (a) of that class. If a taxpayer acquires property that is eligible liquefaction equipment to be used as part of an eligible liquefaction facility of the taxpayer, a separate class is prescribed for those properties that were acquired for the purpose of gaining or producing income from that eligible liquefaction facility. Where, by virtue of an agreement, contract or arrangement entered into on or after May 31, 1954, a taxpayer is deemed by section 18 of the Income Tax Act, as enacted by the Statutes of Canada, 1958, Chapter 32, subsection 8(1), to have acquired a property, a separate class is hereby prescribed for each such property and if the taxpayer subsequently actually acquires the property it shall be included in the same class. For the purposes of this Part, each property of a taxpayer that is an unmanned telecommunication spacecraft described in paragraph (f.2) of Class 10 or in Class 30 in Schedule II is hereby prescribed to be a separate class of property. For the purposes of this Part, when any property of a taxpayer is a property of Class 31 or 32 in Schedule II and the capital cost of that property to the taxpayer was not less than $50,000, a separate class is hereby prescribed for each such property of the taxpayer that would otherwise be included in the same class. For the purposes of this Part, a separate class is prescribed for each eligible non-residential building (other than an eligible liquefaction building) of a taxpayer in respect of which the taxpayer has (by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the building is acquired) elected that this subsection apply. If a taxpayer acquires property that is an eligible liquefaction building to be used as part of an eligible liquefaction facility of the taxpayer, a separate class is prescribed for those properties that were acquired for the purpose of gaining or producing income from that eligible liquefaction facility. For the purposes of this Part, except in the case of a corporation or partnership described in subsection 1100(16), where more than one property of a taxpayer is described in the same class in Schedule II and where one of the properties is a leasing property, and one of the properties is a property other than a leasing property, Where more than one property of a taxpayer is a railway car included in Class 35 in Schedule II that was rented, leased or used by the taxpayer in Canada in the taxation year, other than a railway car owned by a corporation, or a partnership any member of which is a corporation, that was at any time in that taxation year a common carrier that owned or operated a railway, or rented or leased the railway cars at any time in that taxation year, by one or more transactions between persons not dealing at arm’s length, to an associated corporation that was, at that time, a common carrier that owned or operated a railway, a separate class is prescribed for all such properties acquired by the taxpayer before February 3, 1990 (other than such properties acquired for rent or lease to another person), for all such properties acquired by the taxpayer after February 2, 1990 (other than such properties acquired for rent or lease to another person), for all such properties acquired by the taxpayer before April 27, 1989 for rent or lease to another person, and for all such properties acquired by the taxpayer after April 26, 1989 for rent or lease to another person. A separate class is hereby prescribed for all property included in Class 35 in Schedule II acquired at a time after December 6, 1991 and before February 28, 2000 by a taxpayer that was at that time a common carrier that owned and operated a railway. A separate class is hereby prescribed for all property included in Class 35 in Schedule II acquired at a time after February 27, 2000 by a taxpayer that was at that time a common carrier that owned and operated a railway. A separate class is hereby prescribed for all property included in Class 1 in Schedule II acquired by a taxpayer after March 31, 1977 and before 1988 that is railway track and grading, including components such as rails, ballast, ties and other track material; railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor; or a bridge, culvert, subway or tunnel that is ancillary to railway track and grading. A separate class is hereby prescribed for all property included in Class 1 in Schedule II acquired at a time after December 6, 1991 by a taxpayer that was at that time a common carrier that owned and operated a railway, where the property is A separate class is hereby prescribed for all trestles included in Class 3 in Schedule II acquired at a time after December 6, 1991 by a taxpayer that was at that time a common carrier that owned and operated a railway, where the trestles are ancillary to railway track and grading. A separate class is hereby prescribed for all trestles included in Class 3 in Schedule II acquired by a taxpayer after March 31, 1977 and before 1988 that are ancillary to railway track and grading. A separate class is hereby prescribed for each property of a taxpayer described in Class 36 in Schedule II. For the purposes of this Part, where more than one property of a taxpayer is described in the same class in Schedule II and where one of the properties is a leasehold interest in real property described in subsection 1100(13), and one of the properties is a property other than a leasehold interest in real property described in subsection 1100(13), A separate class is hereby prescribed for each property of a taxpayer described in Class 2 in Schedule II that is a pipeline the construction of which was commenced after 1984 and completed after September 1, 1985 and the capital cost of which to the taxpayer is not less than $10,000,000, a pipeline that has been extended or converted where the extension or conversion was completed after September 1, 1985 and the capital cost to the taxpayer of the extension or the cost to him of the conversion, as the case may be, is not less than $10,000,000, or a pipeline that has been extended and converted as part of a single program of extension and conversion of the pipeline where the program was completed after September 1, 1985 and the aggregate of the capital cost to the taxpayer of the extension and the cost to him of the conversion is not less than $10,000,000, and in respect of which the taxpayer has, by letter attached to the return of his income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the construction, extension, conversion or program, as the case may be, was completed, elected that this subsection apply. An election under subsection (5i), (5l) or (5o) shall be effective from the first day of the taxation year in respect of which the election is made and shall continue to be effective for all subsequent taxation years. A separate class is hereby prescribed for all property of a taxpayer included in Class 10 of Schedule II by reason of paragraph (w) thereof. A separate class is hereby prescribed for all property of a corporation included in Class 10 in Schedule II because of paragraph (x) of that Class that is property in respect of which the corporation is deemed under subsection 125.4(3) of the Act to have paid an amount on account of its tax payable under Part I of the Act for a taxation year; or acquired by the corporation from another corporation where the other corporation is deemed under subsection 125.4(3) of the Act to have paid an amount on account of its tax payable under Part I of the Act for a taxation year in respect of the property, and the corporations were related to each other throughout the period that began when the other corporation first incurred a qualified labour expenditure (as defined in subsection 125.4(1) of the Act) in respect of the property and ended when the other corporation disposed of the property to the corporation. A separate class is hereby prescribed for each property of a taxpayer described in Class 38 in Schedule II or in paragraph (1) of Class 8 in Schedule II in respect of which the taxpayer has, by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected that this subsection apply. Where, for any taxation year, a property of a taxpayer or partnership is a specified energy property, a separate class is prescribed in respect of that property for that and subsequent taxation years. Notwithstanding subsection (5c), where at the end of any taxation year a property of a taxpayer is specified leasing property, a separate class is prescribed in respect of that property (including any additions or alterations to that property included in the same class in Schedule II) for that year and all subsequent taxation years. A separate class is prescribed for one or more properties of a class in Schedule II that are exempt properties, as defined in paragraph 1100(1.13)(a), of a taxpayer referred to in subsection 1100(16) in respect of which the taxpayer has, by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property or properties were acquired, elected that this subsection apply. Subject to subsection (5q), a separate class is prescribed for one or more properties of a taxpayer acquired in a taxation year and included in the year in Class 8 in Schedule II, where each of the properties has a capital cost to the taxpayer of at least $1,000 and is computer software; a photocopier; or office equipment that is electronic communications equipment, such as a facsimile transmission device or telephone equipment. Each of subsections (5p) and (5s) apply to a property or properties of a taxpayer only if the taxpayer has (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property or properties were acquired) elected that the subsection apply to the property or properties, as the case may be. For the purpose of this Part, where more than one property of a taxpayer is described in the same class in Schedule II, one of the properties is a computer tax shelter property, and one of the properties is not a computer tax shelter property, for properties that are described in paragraph (b) and that would otherwise be included in the class, a separate class is prescribed. Subject to subsection (5q), a separate class is prescribed for one or more properties of a taxpayer that were acquired in a taxation year and included in the year in Class 43 in Schedule II because of paragraph (a) of that Class; and that had a capital cost to the taxpayer of at least $1,000. [Repealed, SOR/2006-117, s. 2] A separate class is prescribed for one or more properties of a taxpayer that is property included in Class 7 in Schedule II because of paragraph (j) or (k) of that Class if the taxpayer has (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property or properties were acquired) elected that this subsection apply to the property or properties. A separate class is prescribed for one or more properties of a taxpayer that is property included in Class 49 in Schedule II if the taxpayer has (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property or properties were acquired) elected that this subsection apply to the property or properties. A reference in this Part to a class in Schedule II includes a reference to the corresponding separate classes prescribed by this section. The classes of property described in this Part and in Schedule II shall be deemed not to include property the cost of which would be deductible in computing the taxpayer’s income if the Act were read without reference to sections 66 to 66.4 of the Act; the cost of which is included in the taxpayer’s Canadian renewable and conservation expense (within the meaning assigned by section 1219); that is described in the taxpayer’s inventory; that was not acquired by the taxpayer for the purpose of gaining or producing income; that was acquired by an expenditure in respect of which the taxpayer is allowed a deduction in computing income under section 37 of the Act; that was acquired by the taxpayer after November 12, 1981, other than property acquired from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired if the property was acquired in the circumstances where subsection (14) applies, and is a print, etching, drawing, painting, sculpture, or other similar work of art, the cost of which to the taxpayer was not less than $200, a hand-woven tapestry or carpet or a handmade appliqué, the cost of which to the taxpayer was not less than $215 per square metre, an engraving, etching, lithograph, woodcut, map or chart, made before 1900, or antique furniture, or any other antique object, produced more than 100 years before the date it was acquired, the cost of which to the taxpayer was not less than $1,000, other than any property described in subparagraph (i) or (ii) where the individual who created the property was a Canadian (within the meaning assigned by paragraph 1104(10)(a)) at the time the property was created; that is property referred to in paragraph 18(1)(l) of the Act acquired after December 31, 1974, an outlay or expense for the use or maintenance of which is not deductible by virtue of that paragraph; in respect of which an allowance is claimed and permitted under Part XVII; that is a passenger automobile acquired after June 13, 1963 and before January 1, 1966, the cost to the taxpayer of which, minus the initial transportation charges and retail sales tax in respect thereof, exceeded $5,000, unless the automobile was acquired by a person before June 14, 1963 and has by one or more transactions between persons not dealing at arm’s length become vested in the taxpayer; that was deemed by section 18 of the Income Tax Act, as enacted by the Statutes of Canada, 1958, Chapter 32, subsection 8(1), to have been acquired by the taxpayer and that did not vest in the taxpayer before the 1963 taxation year; of a life insurer, that is property used by it in, or held by it in the course of, carrying on an insurance business outside Canada; that is linefill in a pipeline; or referred to in paragraph 81(1)(c.3) of the Act. Where the taxpayer is a member of a partnership, the classes of property described in this Part and in Schedule II shall be deemed not to include any property that is an interest of the taxpayer in depreciable property that is partnership property of the partnership. The classes of property described in Schedule II shall be deemed not to include the land upon which a property described therein was constructed or is situated. Where the taxpayer is a non-resident person, the classes of property described in this Part and in Schedule II shall, except for the purpose of determining the foreign accrual property income of the taxpayer for the purposes of subdivision i of Division B of Part I of the Act, be deemed not to include property that is situated outside Canada. Subject to subsection (5), capital cost for the purposes of paragraph 1100(1)(b) includes any amount expended by a taxpayer for or in respect of an improvement or alteration to a leased property. Where the taxpayer has a leasehold interest in a property, a reference in Schedule II to a property that is a building or other structure shall include a reference to that leasehold interest to the extent that that interest was acquired by reason of the fact that the taxpayer erected a building or structure on leased land, made an addition to a leased building or structure, or made alterations to a leased building or structure that substantially changed the nature of the property; or was acquired after 1975 or, in the case of any property of Class 31 or 32, after November 18, 1974, from a former lessee who had acquired it by reason of the fact that he or a lessee before him made alterations to a leased building or structure that substantially changed the nature of the property. Where a taxpayer has acquired a property that would, if the property had been acquired by a person with whom the taxpayer was not dealing at arm’s length at the time the property was acquired by the taxpayer, be described in paragraph (5)(a) or (b) in respect of that person, a reference in Schedule II to a property that is a building or other structure shall, in respect of the taxpayer, include a reference to that property. For the purposes of paragraphs 2(a) and (b) of Schedule III, where an item of capital cost has been incurred before the commencement of the taxpayer’s 1949 taxation year, there shall be added to the capital cost of each item the amount that has been allowed in respect thereof as depreciation under the Income War Tax Act and has been deducted from the original cost to arrive at the capital cost of the item. For the purposes of paragraph 1100(1)(f), capital cost includes an amount expended on river improvements by the taxpayer for the purpose of facilitating the removal of timber from a timber limit. Where the generating or distributing equipment and plant (including structures) of a producer or distributor of electrical energy were acquired for the purpose of providing power to a consumer for use by the consumer in the operation in Canada of a mine, ore mill, smelter, metal refinery or any combination thereof and at least 80 per cent of the producer’s or distributor’s output of electrical energy for his 1948 and 1949 taxation years, or for his first two taxation years in which he sold power, whichever period is later, was sold to the consumer for that purpose, the property shall be included in Class 10 in Schedule II if it is property acquired before 1988, or before 1990 pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, that was under construction by or on behalf of the taxpayer on June 18, 1987, or that is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987, or Class 41, 41.1 or 41.2 in Schedule II in any other case, unless the property would otherwise be included in Class 43.1 or 43.2 in Schedule II and the taxpayer has, by a letter filed with the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be. Where a taxpayer has acquired generating or distributing equipment and plant (including structures) for the purpose of providing power for his own consumption in operating a mine, ore mill, smelter, metal refinery or any combination thereof and at least 80 per cent of the output of electrical energy was so used in his 1948 and 1949 taxation years, or in the first two taxation years in which he so produced power, whichever period is the later, the property shall be included in In their application to generating or distributing equipment and plant (including structures) that were acquired by the taxpayer before November 8, 1969, subsections (8) and (9) shall be read without reference to a “metal refinery”. Where a taxpayer acquires property after November 7, 1969 from a person with whom he was not dealing at arm’s length that is property referred to in subsection (8) or (9), notwithstanding those subsections, that property shall not be included in Class 10 in Schedule II by the taxpayer unless the property had been included in that class by the person from whom it was acquired, by virtue of subsection (8) or (9) as it read in its application before November 8, 1969. [Repealed, 2013, c. 40, s. 102] In paragraph (1)(h), cost to the taxpayer of an automobile means, except as provided in subsections (12) and (13), except in any case coming under paragraph (b) or (c), the capital cost to the taxpayer of the automobile, except in any case coming under paragraph (c), where the automobile was acquired by a person (in this section referred to as the “original owner”) after June 13, 1963, and has, by one or more transactions between persons not dealing at arm’s length, become vested in the taxpayer, the greater of the actual cost to the taxpayer, and the actual cost to the original owner, and where the automobile was acquired by the taxpayer outside Canada for use in connection with a permanent establishment, as defined for the purposes of Part IV or Part XXVI, outside Canada, the lesser of the amount that such an automobile would ordinarily cost the taxpayer if he purchased it from a dealer in automobiles in Canada for use in Canada; (coût pour le contribuable) initial transportation charges in respect of an automobile means the costs incurred by a dealer in automobiles for transporting the automobile (before it had been used for any purpose whatever) from, in the case of an automobile manufactured in Canada, the manufacturer’s plant, and in any other case, the place in Canada, if any, at which the automobile was received or stored by a wholesale distributor, to the dealer’s place of business; (frais de transport initiaux) passenger automobile means a vehicle, other than an ambulance or hearse, that was designed to carry not more than nine persons, and that is an automobile designed primarily for carrying persons on highways and streets, except an automobile that is designed to accommodate and is equipped with auxiliary folding seats installed between the front and the rear seats, was acquired by a person carrying on the business of operating a taxi or automobile rental service, or arranging and managing funerals, for use in such business, and is not a vehicle described in paragraph (b), or a station wagon or substantially similar vehicle; (automobile à voyageurs) retail sales tax in respect of an automobile means the aggregate of municipal and provincial retail sales taxes payable in respect of the purchase of the automobile by the taxpayer. (taxe de vente ou détail) For the purposes of paragraph (1)(h), where an automobile is owned by two or more persons or by partners, a reference to “cost to the taxpayer” shall be deemed to be a reference to the aggregate of the cost, as defined in subsection (11), to each such person or partner. In determining the cost to the taxpayer for the purposes of paragraph (1)(h), subsection 13(7) of the Act shall not apply unless the automobile was acquired by gift. Subject to subsections (14.11) to (14.13), for the purposes of this Part and Schedule II, if a property is acquired by a taxpayer [Repealed, SOR/90-22, s. 3] from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired, and the property, immediately before it was so acquired by the taxpayer, was property of a prescribed class or a separate prescribed class of the person from whom it was so acquired, the property shall be deemed to be property of that same prescribed class or separate prescribed class, as the case may be, of the taxpayer. For the purposes of this Part and Schedule II, if a taxpayer has acquired, after May 25, 1976, property of a class in Schedule II (in this subsection referred to as the “present class”), that had been previously owned before May 26, 1976 by the taxpayer or by a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired, and at the time the property was previously so owned it was a property of a different class (other than Class 28 or 41) in Schedule II (in this subsection referred to as the “former class”), the property is deemed to be property of the former class and not to be property of the present class. If, after March 18, 2007, a taxpayer acquires an oil sands property in circumstances to which subsection (14) applies and the property was depreciable property that was included in Class 41, because of paragraph (a), (a.1) or (a.2) of that Class, by the person or partnership from whom the taxpayer acquired the property, the following rules apply: there may be included in Class 41 of the taxpayer only that portion of the property the capital cost of which portion to the taxpayer is the lesser of the undepreciated capital cost of Class 41 of that person or partnership immediately before the disposition of the property by the person or partnership and the amount, if any, by which that undepreciated capital cost is reduced as a result of that disposition; and there shall be included in Class 41.1 of the taxpayer that portion, if any, of the property that is not the portion included in Class 41 of the taxpayer under paragraph (a). If, after March 20, 2013, a taxpayer acquires a property (other than an oil sands property) in circumstances to which subsection (14) applies and the property was depreciable property that was included in Class 41, because of paragraph (a) or (a.1) of that Class, by the person or partnership from whom the taxpayer acquired the property, the following rules apply: there may be included in Class 41 of the taxpayer only that portion of the property the capital cost of which portion to the taxpayer is the lesser of the undepreciated capital cost of Class 41 of that person or partnership immediately before the disposition of the property by the person or partnership and the amount, if any, by which that undepreciated capital cost is reduced as a result of that disposition; and there shall be included in Class 41.2 of the taxpayer that portion, if any, of the property that is not the portion included in Class 41 of the taxpayer under paragraph (a). Subsection (14) does not apply to an acquisition of property by a taxpayer from a person in respect of which the property was included in any of Classes 54 to 56. For the purpose of paragraph 13(7.5)(a) of the Act, a property is prescribed in respect of a taxpayer where the property would, if it had been acquired by the taxpayer, be property included in Class 10 in Schedule II because of paragraph (l) of that Class. For the purpose of paragraph 13(7.5)(b) of the Act, prescribed property is any of a road (other than a specified temporary access road), sidewalk, airplane runway, parking area, storage area or similar surface construction; a bridge; and a property that is ancillary to any property described in paragraph (a) or (b). For the purposes of subsection 13(10) of the Act, property is hereby prescribed that is a building included in Class 3 or 6 in Schedule II, or machinery or equipment included in Class 8 in Schedule II, except property that may reasonably be regarded as having been acquired for the purpose of producing coal from a coal mine or oil, gas, metals or industrial minerals from a resource referred to in section 1201 as it read immediately before it was repealed by section 2 of Order in Council P.C. 1975-1323 of June 12, 1975, or property acquired for use outside Canada; and a business carried on by the taxpayer is hereby prescribed as a manufacturing or processing business if, for the fiscal period in which the property was acquired, or for the fiscal period in which a reasonable volume of business was first carried on, whichever was later, the revenue received by the taxpayer, in the course of carrying on the business from the sale of goods processed or manufactured by the taxpayer in Canada, the leasing or renting of goods that were processed or manufactured by the taxpayer in Canada, advertisements in a newspaper or magazine that was produced by the taxpayer in Canada, and construction carried on by the taxpayer in Canada, was not less than 2/3 of the revenue of the business for the period. For the purposes of paragraph (15)(b), revenue means gross revenue minus the aggregate of amounts that were paid or credited in the period, to customers of the business, in relation to such revenue as a bonus, rebate or discount or for returned or damaged goods; and amounts included therein by virtue of section 13 or subsection 23(1) of the Act. A taxpayer who acquires a property after March 18, 2007 and before 2016 that is manufacturing or processing machinery or equipment may (by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property is acquired) elect to include the property in Class 29 in Schedule II if Class 43.1 or 43.2 in Schedule II would otherwise apply to the property; and Class 29 in Schedule II would apply to the property if that schedule were read without reference to Classes 43.1 and 43.2. Property referred to in paragraph (1)(f) does not include any property that the taxpayer was obligated to acquire under the terms of an agreement in writing entered into before November 13, 1974; or any property the construction of which was commenced by the taxpayer before November 13, 1974 or commenced under an agreement in writing entered into by the taxpayer before November 13, 1974, and completed substantially according to plans and specifications agreed to by the taxpayer before November 13, 1974. [Repealed, SOR/99-179, s. 2] For the purposes of this Part and Schedule II, where a taxpayer acquired a property that is included in a class in Schedule II (in this subsection referred to as the “actual class”), the taxpayer acquires property that is an addition or alteration to the property referred to in paragraph (a), the property that is the addition or alteration referred to in paragraph (b) would have been property of the actual class if it had been acquired by the taxpayer at the time he acquired the property referred to in paragraph (a), and the property referred to in paragraph (a) would have been property of a class in Schedule II (in this subsection referred to as the “present class”) that is different from the actual class if it had been acquired by the taxpayer at the time he acquired the addition or alteration referred to in paragraph (b), the addition or alteration referred to in paragraph (b) shall, except as otherwise provided in this Part or in Schedule II, be deemed to be an acquisition by the taxpayer of property of the present class. For the purposes of this Part and Schedule II, if subsection (19.2) applies to the refurbishment or reconditioning of a railway locomotive of a taxpayer, any property acquired by the taxpayer after February 25, 2008 that is incorporated into the locomotive in the course of the refurbishment or reconditioning is, except as otherwise provided in this Part or in Schedule II, deemed to be included in paragraph (y) of Class 10 in Schedule II. This subsection applies to the refurbishment or reconditioning of a railway locomotive, of a taxpayer, that is included in a class in Schedule II other than Class 10; and would be included in Class 10 in Schedule II if it had not been used or acquired for use for any purpose by any taxpayer before February 26, 2008. For the purposes of subsections 1100(2.2) and (19), 1101(lad) and 1102(14) (in this subsection referred to as the “relevant subsections”), where, but for this subsection, a taxpayer would be considered to be dealing not at arm’s length with another person as a result of a transaction or series of transactions the principal purpose of which may reasonably be considered to have been to cause one or more of the relevant subsections to apply in respect of the acquisition of a property, the taxpayer shall be considered to be dealing at arm’s length with the other person in respect of the acquisition of that property. For the purposes of subsections 1100(0.3), (2.02) and (2.021) and 1104(3.1), (4) and (4.01), a particular person or partnership and another person or partnership shall be considered not to be dealing at arm’s length with each other in respect of the acquisition or ownership of a property if, in the absence of this subsection, they would be considered to be dealing at arm’s length with each other and it may reasonably be considered that the principal purpose of any transaction or event, or a series of transactions or events, is to cause the property to qualify as accelerated investment incentive property, reaccelerated investment incentive property or immediate expensing property; or the particular person or partnership and the other person or partnership to satisfy the condition in subparagraph 1100(0.3)(c)(i) or subclause 1100(2.02)(a)(i)(C)(I) or (2.021)(a)(i)(C)(I). Where a taxpayer has acquired a property described in Class 43.1 of Schedule II in circumstances in which clauses (b)(iii)(A) and (B) or (e)(iii)(A) and (B) of that class apply, the portion of the property, determined by reference to capital cost, that is equal to or less than the capital cost of the property to the person from whom the property was acquired, is included in that class; and the portion of the property, if any, determined by reference to capital cost, that is in excess of the capital cost of the property to the person from whom it was acquired, shall not be included in that class. Where a taxpayer has acquired a property that is described in Class 43.2 in Schedule II in circumstances in which clauses (b)(iii)(A) and (B) or (e)(iii)(A) and (B) of Class 43.1 in Schedule II apply and the property was included in Class 43.2 in Schedule II of the person from whom the taxpayer acquired the property, the portion of the property, determined by reference to capital cost, that is equal to or less than the capital cost of the property to the person from whom the property was acquired is included in Class 43.2 in Schedule II; and the portion of the property, if any, determined by reference to capital cost, that is in excess of the capital cost of the property to the person from whom it was acquired shall not be included in Class 43.1 or 43.2 in Schedule II. For the purposes of applying paragraphs 1100(1)(a.1) and (a.2) and subsection 1101(5b.1), the capital cost of an addition to or an alteration of a taxpayer’s building is deemed to be the capital cost to the taxpayer of a separate building if the building to which the addition or alteration was made is not included in a separate class under subsection 1101(5b.1).

If an addition or an alteration is deemed to be a separate building under subsection (23), the references in paragraphs 1100(1) (a.1) and (a.2) to “the floor space of the building” are to be read as references to “the total floor space of the separate building and the building to which the addition or alteration was made”. For the purposes of this Part and Schedule II, if an eligible non-residential building of a taxpayer was under construction on March 19, 2007, the portion, if any, of the capital cost of the building that was incurred by the taxpayer before March 19, 2007 is deemed to have been incurred by the taxpayer on March 19, 2007 unless the taxpayer elects (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the building was acquired) that this subsection not apply to that cost. For the purpose of the definition zero-emission vehicle in subsection 248(1) of the Act, it is a prescribed condition that the motor vehicle has a battery capacity of at least 7 kWh; and the federal purchase incentive announced on March 19, 2019 is a prescribed program. In respect of properties otherwise included in any of Classes 2 to 10, 11 and 12 in Schedule II, a taxpayer may elect to include in Class 1 in Schedule II all such properties acquired for the purpose of gaining or producing income from the same business. Where the chief depreciable properties of a taxpayer are included in Class 2, 4 or 17 in Schedule II, the taxpayer may elect to include in Class 2, 4 or 17 in Schedule II, as the case may be, a property that would otherwise be included in another class in Schedule II and that was acquired by him before May 26, 1976 for the purpose of gaining or producing income from the same business as that for which those properties otherwise included in the said Class 2, 4 or 17 were acquired. In respect of properties otherwise included in Class 19 or 21 in Schedule II, a taxpayer may, by letter attached to the return of his income for a taxation year filed with the Minister in accordance with section 150 of the Act, elect to include in Class 8 in Schedule II all properties of the said Class 19 or all properties of the said Class 21, as the case may be, owned by him at the commencement of the year. In respect of properties that would have been included in Class 37 in Schedule II had they been acquired after the date on which Class 37 became effective, a taxpayer may, by letter attached to the return of his income for a taxation year filed with the Minister in accordance with section 150 of the Act, elect to include in Class 37 all such properties acquired by the taxpayer before that date. Where a taxpayer has acquired, after May 25, 1976, all or any part of a property of a class in Schedule II (in this subsection referred to as “present class”) and the property or part thereof, if it had been acquired before May 26, 1976, would have been property of a different class in Schedule II (in this subsection referred to as the “former class”) and he was obligated to acquire the property under the terms of an agreement in writing entered into before May 26, 1976, he commenced the construction, manufacture or production of the property before May 26, 1976 or the construction, manufacture or production of the property was commenced under an agreement in writing entered into by him before May 26, 1976, or he acquired the property on or before December 31, 1976 or he was obligated to acquire the property under the terms of an agreement in writing entered into on or before December 31, 1976, if he had, before May 26, 1976, demonstrated a bona fide intention to acquire the property, the taxpayer may, by letter attached to the return of his income filed with the Minister in accordance with section 150 of the Act, for the taxation year in which the property was acquired or for the immediately following taxation year, elect to transfer in the year of acquisition the property or the part thereof, acquired after May 25, 1976, from the present class to the former class; or the part of the property acquired before May 26, 1976, from the former class to the present class. Where a taxpayer has disposed of a property (in this subsection referred to as the “former property”) of a class in Schedule II (in this subsection referred to as the “former class”), and before the end of the taxation year in which the former property was disposed of, acquired property (in this subsection referred to as the “new property”) of a class in Schedule II (in this subsection referred to as the “present class”) and the present class is neither the former class, nor a separate class described in section 1101, other than subsection 1101(5d), such that if the former property had been acquired at the time that the new property was acquired and from the person from whom the new property was acquired, the former property would have been included in the present class, and if the new property had been acquired at the time that the former property was acquired and from the person from whom the former property was acquired, the new property would have been included in the former class, the taxpayer may, by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act in respect of the taxation year in which the former property was disposed of, elect to transfer the former property from the former class to the present class in the year of its disposition and, for greater certainty, the transfer shall be considered to have been made before the disposition of the property. For the purposes of this Part and Schedule II, where property of a taxpayer would otherwise be included in Class 40 in Schedule II, all such properties owned by the taxpayer shall be transferred from Class 40 to Class 10 immediately after the commencement of the first taxation year of the taxpayer commencing after 1989. In respect of properties otherwise included in Class 20 in Schedule II, a taxpayer may, by letter attached to the return of income of the taxpayer for a taxation year filed with the Minister in accordance with section 150 of the Act, elect to include in Class 1, 3 or 6 in Schedule II, as specified in the letter, all properties of Class 20 in Schedule II owned by the taxpayer at the commencement of the year. For the purposes of this Part and Schedule II, where one or more properties of a taxpayer are included in a separate class pursuant to an election filed by the taxpayer in accordance with subsection 1101(5q), all the properties in that class immediately after the beginning of the taxpayer’s fifth taxation year beginning after the end of the first taxation year in which a property of the class became available for use by the taxpayer for the purposes of subsection 13(26) of the Act shall be transferred immediately after the beginning of that fifth taxation year from the separate class to the class in which the property would, but for the election, have been included. A taxpayer may, by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which a property was acquired, elect not to include the property in Class 44 in Schedule II. In respect of any property otherwise included in Class 7 in Schedule II because of paragraph (h) of that Class and to which paragraph 1100(1)(z.1a) and subsection 1101(5d), or paragraph 1100(1)(z.1c) and subsection 1101(5d.2), would apply if Class 35 of that Schedule applied to the property, the taxpayer may (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired) elect to include the property in Class 35 rather than in Class 7. A taxpayer may, in its return of income filed with the Minister on or before its filing-due date for the taxation year in which a property is acquired, elect not to include the property in any of Classes 54 to 56 in Schedule II, as the case may be. To be effective in respect of a taxation year, an election under this section must be made not later than the last day on which the taxpayer may file a return of his income for the taxation year in accordance with section 150 of the Act. An election under paragraph 1102(8)(d) or (9)(d) or this section shall be effective from the first day of the taxation year in respect of which the election is made and shall continue to be effective for all subsequent taxation years. An election under subsection (1) or (2) shall be made by sending a letter to that effect by registered mail to the Tax Centre at which the taxpayer customarily files the returns required by section 150 of the Act. Where the taxpayer is an individual and his income for the taxation year includes income from a business the fiscal period of which does not coincide with the calendar year, in respect of the depreciable properties acquired for the purpose of gaining or producing income from the business, a reference in this Part to end of the taxation year shall be deemed to be a reference to the end of the fiscal period of the business; (la fin de l’année d’imposition) taxation year shall be deemed to be a reference to the fiscal period of the business. (l’année d’imposition) In this Part and in Schedule II, bitumen development phase of a taxpayer’s oil sands project means a development phase that expands the oil sands project’s capacity to extract and initially process tar sands to produce bitumen or a similar product; (phase de mise en valeur du bitume) certified feature film means a motion picture film certified by the Minister of Communications to be a film of not less than 75 minutes running time in respect of which all photography or art work specifically required for the production thereof and all film editing therefor were commenced after November 18, 1974, and either the film was completed before May 26, 1976, or the photography or art work was commenced before May 26, 1976, and certified by him to be a film the production of which is contemplated in a coproduction agreement entered into between Canada and another country, or a film in respect of which the person who performed the duties of producer was a Canadian, no fewer than 2/3 in number of all the persons each of whom was a person who performed the duties of director, screenwriter, music composer, art director, picture editor or director of photography, or was the individual in respect of whose services as an actor or actress in respect of the film the highest remuneration or the second highest remuneration was paid or payable, were Canadians, not less than 75 per cent of the aggregate of the remuneration paid or payable to persons for services provided in respect of the film (other than remuneration paid or payable to or in respect of the persons referred to in subparagraphs (i) and (ii) or remuneration paid or payable for processing and final preparation of the film) was paid or payable to Canadians, not less than 75 per cent of the aggregate of costs incurred for processing and final preparation of the film including laboratory work, sound recording, sound editing and picture editing (other than remuneration paid or payable to or in respect of persons referred to in subparagraphs (i), (ii) and (iii)), was incurred in respect of services rendered in Canada, and the copyright protecting its use in Canada is beneficially owned by a person who is either a Canadian or a corporation incorporated under the laws of Canada or a province, or jointly or otherwise by two or more persons described in clause (A), other than a film acquired after the day that is the earlier of the day of its first commercial use, and 12 months after the day the principal photography thereof is completed, or in respect of which certification under this definition has been revoked by the Minister of Communications as provided in paragraph (10)(b); (long métrage portant visa) certified production, in respect of a particular taxation year, means a motion picture film or video tape certified by the Minister of Communications to be a film or tape in respect of which all photography, taping or art work required specifically for the production thereof and all film or tape editing therefor were commenced after May 25, 1976, certified by him to be a film or tape in respect of which the principal photography or taping thereof was commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year and certified by him to be a film or tape the production of which is contemplated in a coproduction agreement entered into between Canada and another country, or a film or tape in respect of which the individual who performed the duties of producer was a Canadian, the Minister of Communications has allotted not less than an aggregate of six units of production, not less than two of which were allotted by virtue of clause (A) or (B) and not less than one of which was allotted by virtue of clause (C) or (D), for individuals who provided services in respect of the film or tape, in the following manner: for the director, two units of production, for the screenwriter, two units of production, for the actor or actress in respect of whose services for the film or tape the highest remuneration was paid or payable (unless in the opinion of the Minister of Communications the individual did not perform a major role in the film or tape), one unit of production, for the actor or actress in respect of whose services for the film or tape the second highest remuneration was paid or payable (unless in the opinion of the Minister of Communications the individual did not perform a major role in the film or tape), one unit of production, for the art director, one unit of production, for the director of photography, one unit of production, for the music composer, one unit of production, and for the picture editor, one unit of production, shall be allotted, provided the individual in respect of such allotment was a Canadian, not less than 75 per cent of the aggregate of all costs (other than costs determined by reference to the amount of income from the film or tape) paid or payable to persons for services provided in respect of producing the film or tape (other than remuneration paid or payable to, or in respect of, individuals referred to in subparagraph (i) or (ii), costs referred to in subparagraph (iv) incurred for processing and final preparation of the film or tape, and amounts paid or payable in respect of insurance, financing, brokerage, legal and accounting fees and similar amounts) was paid or payable to, or in respect of services provided by, Canadians, and not less than 75 per cent of the aggregate of all costs (other than costs determined by reference to the amount of income from the film or tape) incurred for processing and final preparation of the film or tape, including laboratory work, sound re-recording, sound editing and picture editing (other than remuneration paid or payable to, or in respect of, individuals referred to in subparagraph (i) or (ii)) was incurred in respect of services provided in Canada, other than a film or tape 12 months after the day the principal photography or taping thereof is completed, acquired by a taxpayer who has not paid in cash, as of the end of the particular taxation year, to the person from whom he acquired the film or tape, at least 5 per cent of the capital cost to the taxpayer of the film or tape as of the end of the year, acquired by a taxpayer who has issued in payment or part payment thereof, a bond, debenture, bill, note, mortgage or similar obligation in respect of which an amount is not due until a time that is more than four years after the end of the taxation year in which the taxpayer acquired the film or tape, acquired from a non-resident, or in respect of which certification under this definition has been revoked by the Minister of Communications as provided in paragraph (10)(b), and, for the purposes of the application of this definition, in respect of a film or tape acquired in 1987, other than a film or tape in respect of which paragraph (i) applies, the reference in this definition to “commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year” shall be read as a reference to “commenced before the end of 1987 or was completed before July, 1988”; and in respect of a film or tape acquired in 1987 or 1988 that is included in paragraph (n) of Class 12 in Schedule II and that is part of a series of films or tapes that includes another property included in that paragraph, the reference in this definition to “commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year” shall be read as a reference to “completed before 1989”; (production portant visa) certified short production[Repealed, SOR/86-254, s. 2] completion of a specified development phase of a taxpayer’s oil sands project means the first attainment of a level of average output, attributable to the specified development phase and measured over a sixty day period, equal to at least 60% of the planned level of average daily output (as determined in paragraph (b) of the definition specified development phase) in respect of that phase; (achèvement) computer software includes systems software and a right or licence to use computer software; (logiciel) data network infrastructure equipment means network infrastructure equipment that controls, transfers, modulates or directs data, and that operates in support of telecommunications applications such as e-mail, instant messaging, audio- and video-over-Internet Protocol or Web browsing, Web searching and Web hosting, including data switches, multiplexers, routers, remote access servers, hubs, domain name servers, and modems, but does not include network equipment (other than radio network equipment) that operates in support of telecommunications applications, if the bandwidth made available by that equipment to a single end-user of the network is 64 kilobits per second or less in either direction, radio network equipment that operates in support of wireless telecommunications applications unless the equipment supports digital transmission on a radio channel, network equipment that operates in support of broadcast telecommunications applications and that is unidirectional, network equipment that is end-user equipment, including telephone sets, personal digital assistants and facsimile transmission devices, equipment that is described in paragraph (f.2) or (v) of Class 10, or in any of Classes 45, 50 and 52, in Schedule II, wires or cables, or similar property, and structures; (matériel d’infrastructure pour réseaux de données) designated asset in respect of a development phase of a taxpayer’s oil sands project, means a property that is a building, a structure, machinery or equipment and is, or is an integral and substantial part of, in the case of a bitumen development phase, a crusher, a froth treatment plant, a primary separation unit, a steam generation plant, a cogeneration plant, or a water treatment plant, or in the case of an upgrading development phase, a gasifier unit, a vacuum distillation unit, a hydrocracker unit, a hydrotreater unit, a hydroprocessor unit, or a coker; (bien désigné) designated overburden removal cost of a taxpayer means any cost incurred by him in respect of clearing or removing overburden from a mine in Canada owned or operated by him where the cost was incurred after November 16, 1978 and before 1988, was incurred after the mine came into production in reasonable commercial quantities, as of the end of the taxation year in which the cost was incurred, has not been deducted by the taxpayer in computing his income, and is not deductible, in whole or in part, by the taxpayer in computing his income for a taxation year subsequent to the taxation year in which the cost was incurred, other than by virtue of paragraph 20(1)(a) of the Act; (coût désigné d’enlèvement des terrains de couverture) designated underground storage cost of a taxpayer means any cost incurred by him after December 11, 1979 in respect of developing a well, mine or other similar underground property for the storage in Canada of petroleum, natural gas or other related hydrocarbons; (coût désigné de stockage souterrain) development phase of a taxpayer’s oil sands project means the acquisition, construction, fabrication or installation of a group of assets, by or on behalf of the taxpayer, that may reasonably be considered to constitute a discrete expansion in the capacity of the oil sands project when complete (including, for greater certainty, the initiation of a new oil sands project); (phase de mise en valeur) eligible liquefaction building of a taxpayer, in respect of an eligible liquefaction facility of the taxpayer, means property (other than property that has been used or acquired for use for any purpose before it was acquired by the taxpayer or a residential building ) acquired by the taxpayer after February 19, 2015 and before 2025 that is included in Class 1 in Schedule II because of paragraph (q) of that Class and that is used as part of the eligible liquefaction facility; (bâtiment de liquéfaction admissible) eligible liquefaction equipment in respect of an eligible liquefaction facility of a taxpayer, means property of the taxpayer that is used in connection with the liquefaction of natural gas and that is acquired by the taxpayer after February 19, 2015 and before 2025, is included in Class 47 in Schedule II because of paragraph (b) of that Class, has not been used or acquired for use for any purpose before it was acquired by the taxpayer, is not excluded equipment, and is used as part of the eligible liquefaction facility; (matériel de liquéfaction admissible) eligible liquefaction facility of a taxpayer means a self-contained system located in Canada — including buildings, structures and equipment — that is used or intended to be used by the taxpayer for the purpose of liquefying natural gas; (installation de liquéfaction admissible) eligible mine development property means a property acquired by a taxpayer after March 20, 2013 and before 2018 for the purpose of gaining or producing income from a new mine or an expansion of a mine, if the property was acquired under a written agreement entered into by the taxpayer before March 21, 2013, from a new mine, if the construction of the new mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or the engineering and design work for the construction of the new mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or from an expansion of a mine, if the construction for the expansion of the mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or the engineering and design work for the construction of the expansion of the mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities); (bien admissible à l’aménagement d’une mine) eligible non-residential building means a taxpayer’s building (other than a building that was used, or acquired for use, by any person or partnership before March 19, 2007) that is located in Canada, that is included in Class 1 in Schedule II and that is acquired by the taxpayer on or after March 19, 2007 to be used by the taxpayer, or a lessee of the taxpayer, for a non-residential use; (bâtiment non résidentiel admissible) excluded equipment means pipelines (other than pipelines used to move natural gas, or its components that are extracted, within an eligible liquefaction facility during the liquefaction process or used to move liquefied natural gas), equipment used exclusively to regasify liquefied natural gas, and electrical generation equipment; (matériel non admissible) gas or oil well equipment includes equipment, structures and pipelines, other than a well casing, acquired to be used in a gas or oil field in the production therefrom of natural gas or crude oil, and a pipeline acquired to be used solely for transmitting gas to a natural gas processing plant, but does not include equipment or structures acquired for the refining of oil or the processing of natural gas including the separation therefrom of liquid hydrocarbons, sulphur or other joint products or by-products, or a pipeline for removal or for collection for immediate removal of natural gas or crude oil from a gas or oil field except a pipeline referred to in paragraph (b); (matériel de puits de gaz ou de pétrole) general-purpose electronic data processing equipment means electronic equipment that, in its operation, requires an internally stored computer program that is executed by the equipment, can be altered by the user of the equipment, instructs the equipment to read and select, alter or store data from an external medium such as a card, disk or tape, and depends upon the characteristics of the data being processed to determine the sequence of its execution; (matériel électronique universel de traitement de l’information) new purpose-built residential rental means a purpose-built residential rental that was built for use as a purpose-built residential rental if construction began after April 15, 2024 and before 2031, or previously a building, or part of a building, used as a commercial property that was substantially renovated for use as a purpose-built residential rental if the renovations began after April 15, 2024 and before 2031, and becomes available for use before 2036; (nouvel ensemble résidentiel construit spécialement pour la location) oil sands project of a taxpayer means an undertaking by the taxpayer for the extraction of tar sands from a mineral resource owned by the taxpayer, which undertaking may include the processing of the tar sands to a stage that is not beyond the crude oil stage or its equivalent; (projet de sables bitumineux) oil sands property of a taxpayer means property acquired by the taxpayer for the purpose of earning income from an oil sands project of the taxpayer; (bien de sables bitumineux) ore includes ore from a mineral resource that has been processed to any stage that is prior to the prime metal stage or its equivalent; (minerai) preliminary work activity means activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of designated assets in respect of the taxpayer’s oil sands project including, without limiting the generality of the foregoing, the following activities: obtaining permits or regulatory approvals, performing design or engineering work, conducting feasibility studies, conducting environmental assessments, clearing or excavating land, building roads, and entering into contracts; (travaux préliminaires) purpose-built residential rental means a building or a part of a building situated in Canada that contains four or more residential rental units at least four of which contain private kitchen facilities, a private bath and a private living area, or 10 or more residential rental units, and in which all or substantially all the residential rental units are rented or offered for rent for continuous periods of not less than 28 consecutive days; (ensemble résidentiel construit spécialement pour la location) railway system includes a railway owned or operated by a common carrier, together with all buildings, rolling stock, equipment and other properties pertaining thereto, but does not include a tramway; (réseau de chemin de fer) residential rental unit means a housing unit used or intended for use as a rented residential premises that is not provided to the travelling or vacationing public; (logement locatif) specified development phase of a taxpayer’s oil sands project means a bitumen development phase or an upgrading development phase of the oil sands project which can reasonably be expected to result in a planned level of average daily output (where that output is bitumen or a similar product in the case of a bitumen development phase, or synthetic crude oil or a similar product in the case of an upgrading development phase), and in respect of which phase, not including any preliminary work activity, one or more designated assets was, before March 19, 2007, acquired by the taxpayer, or in the process of being constructed, fabricated or installed, by or on behalf of the taxpayer, and the planned level of average daily output is the lesser of, the level that was the demonstrated intention of the taxpayer as of March 19, 2007 to produce from the specified development phase, and the maximum level of output associated with the design capacity, as of March 19, 2007, of the designated asset referred to in paragraph (a); (phase de mise en valeur déterminée) specified oil sands property of a taxpayer means oil sands property, acquired by the taxpayer before 2012, the taxpayer’s use of which is reasonably required for a specified development phase of an oil sands project of the taxpayer to reach completion; or as part of a bitumen development phase of an oil sands project of the taxpayer, to the extent that the output from the bitumen development phase is required for an upgrading development phase that is a specified development phase of the oil sands project to reach completion, and it is reasonable to conclude that all or substantially all of the output from the bitumen development phase will be so used; and where it was the demonstrated intention of the taxpayer as of March 19, 2007 to produce, from a mineral resource owned by the taxpayer, the bitumen feedstock required for the upgrading development phase to reach completion; (bien de sables bitumineux déterminé) specified temporary access road means a temporary access road to an oil or gas well in Canada, and a temporary access road the cost of which would, if the definition Canadian exploration expense in subsection 66.1(6) of the Act were read without reference to paragraphs (k.1) and (l) of that definition, be a Canadian exploration expense because of paragraph (f) or (g) of that definition; (route d’accès temporaire déterminée) systems software means a combination of computer programs and associated procedures, related technical documentation and data that performs compilation, assembly, mapping, management or processing of other programs, facilitates the functioning of a computer system by other programs, provides service or utility functions such as media conversion, sorting, merging, system accounting, performance measurement, system diagnostics or programming aids, provides general support functions such as data management, report generation or security control, or provides general capability to meet widespread categories of problem solving or processing requirements where the specific attributes of the work to be performed are introduced mainly in the form of parameters, constants or descriptors rather than in program logic, and includes a right or licence to use such a combination of computer programs and associated procedures, related technical documentation and data; (logiciel d’exploitation) tar sands ore means ore extracted from a deposit of bituminous sands or oil shales; (minerai de sables asphaltiques) telegraph system includes the buildings, structures, general plant and communication and other equipment pertaining thereto; (réseau de télégraphe) telephone system includes the buildings, structures, general plant and communication and other equipment pertaining thereto; (réseau de téléphone) television commercial message means a commercial message as defined in the Television Broadcasting Regulations, 1987 made under the Broadcasting Act; (message publicitaire pour la télévision) tramway or trolley bus system includes the buildings, structures, rolling stock, general plant and equipment pertaining thereto and where buses other than trolley buses are operated in connection therewith includes the properties pertaining to those bus operations; (réseau de tramway ou d’autobus à trolley) upgrading development phase of a taxpayer’s oil sands project means a development phase that expands the oil sands project’s capacity to process bitumen or a similar feedstock (all or substantially all of which is from a mineral resource owned by the taxpayer) to the crude oil stage or its equivalent. (phase de valorisation) Except as otherwise provided in subsection (6), in this Part and in Schedules II and V, industrial mineral mine includes a peat bog or deposit of peat but does not include a mineral resource; (mine de minéral industriel) mineral includes peat; (minéral) mining includes the harvesting of peat. (exploitation minière) Definitions The following definitions apply in this Part and Schedules II to VI. designated immediate expensing property for a taxation year, means property of an eligible person or partnership that is immediate expensing property of the eligible person or partnership; became available for use by the eligible person or partnership in the taxation year; and is designated as designated immediate expensing property in prescribed form filed by the eligible person or partnership with the Minister for the taxation year if the eligible person or partnership is a partnership, on or before the day that is 12 months after the day on which any member of the partnership is required to file an information return under section 229 for the fiscal period to which the designation relates, and in any other case, on or before the day that is 12 months after the eligible person or partnership’s filing-due date for the taxation year to which the designation relates. (bien relatif à la passation en charges immédiate désigné) eligible person or partnership for a taxation year, means a corporation that was a Canadian-controlled private corporation throughout the year; an individual (other than a trust) who was resident in Canada throughout the year; or a Canadian partnership all of the members of which were, throughout the period, persons described in paragraph (a) or (b). (personne ou société de personnes admissible) immediate expensing property for a taxation year, means property of a prescribed class (other than property included in any of Classes 1 to 6, 14.1, 17, 47, 49 and 51 in Schedule II) of an eligible person or partnership that is acquired by the eligible person or partnership if the eligible person or partnership is a Canadian-controlled private corporation, after April 18, 2021, or if the eligible person or partnership is an individual or a Canadian partnership, after December 31, 2021; becomes available for use if the eligible person or partnership is an individual or a Canadian partnership all the members of which are individuals throughout the taxation year, before 2025, and in any other case, before 2024; and meets either of the following conditions: the property has not been used for any purpose before it was acquired by the eligible person or partnership, and is not a property in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act by any person or partnership for a taxation year ending before the time the property was acquired by the eligible person or partnership, or the property was not acquired in circumstances where the eligible person or partnership was deemed to have been allowed or deducted an amount under paragraph 20(1)(a) of the Act in respect of the property in computing income for previous taxation years, or the undepreciated capital cost of depreciable property of a prescribed class of the eligible person or partnership was reduced by an amount determined by reference to the amount by which the capital cost of the property to the eligible person or partnership exceeds its cost amount, or previously owned or acquired by the eligible person or partnership or by a person or partnership with which the eligible person or partnership did not deal at arm’s length at any time when the property was owned or acquired by the person or partnership. (bien relatif à la passation en charges immédiate) taxpayer unless the context otherwise requires, includes an eligible person or partnership. (contribuable) Immediate expensing limit For the purposes of this Part and Schedules II to VI, an eligible person or partnership’s immediate expensing limit for a taxation year is $1,500,000 unless the eligible person or partnership is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in the taxation year with one or more other eligible persons or partnerships, in which case, except as otherwise provided in this section, its immediate expensing limit is nil. Associated eligible persons or partnerships Despite subsection (3.2), if all the eligible persons or partnerships that are associated with each other (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in a taxation year file with the Minister in prescribed form an agreement that assigns for the purpose of this Part and Schedules II to VI a percentage to one or more of them for the year, the immediate expensing limit for the year of each of the eligible persons or partnerships is if the total of the percentages assigned in the agreement does not exceed 100%, $1,500,000 multiplied by the percentage assigned to that eligible person or partnership in the agreement; and in any other case, nil. Failure to file agreement If any of the eligible persons or partnerships that are associated with each other (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in a taxation year has failed to file with the Minister an agreement described in subsection (3.3) within 30 days after notice in writing by the Minister has been forwarded to any of them that such an agreement is required for the purpose of any assessment of tax under Part I of the Act, the Minister shall, for the purpose of this Part and Schedules II to VI, allocate an amount to one or more of them for the taxation year. Special rules for immediate expensing limit Despite subsections (3.2) to (3.4), where an eligible person or partnership (in this paragraph referred to as the “first person”) has more than one taxation year ending in the same calendar year and it is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in two or more of those taxation years with another eligible person or partnership (in this paragraph referred to as the “other person”) that has a taxation year ending in that calendar year, the immediate expensing limit of the first person for each taxation year ending in the calendar year in which it is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) with the other person that ends after the first such taxation year ending in that calendar year is, subject to the application of paragraph (b), an amount equal to the lesser of its immediate expensing limit determined under subsection (3.3) or (3.4) for the first such taxation year ending in the calendar year, and its immediate expensing limit determined under subsection (3.3) or (3.4) for the particular taxation year ending in the calendar year; and where an eligible person or partnership has a taxation year that is less than 51 weeks, its immediate expensing limit for the year is that proportion of its immediate expensing limit for the year determined without reference to this paragraph that the number of days in the year is of 365. Associated - interpretation For the purposes of this Part and Schedules II to VI, in determining whether an eligible person or partnership is associated (within the meaning of section 256 of the Act, as modified by this subsection) with another eligible person or partnership in a taxation year if the eligible person or partnership is a partnership, the partnership is deemed to be a corporation (in this subsection referred to as a “deemed corporation”) for the year, the deemed corporation is deemed to have a capital stock of a single class of shares, with a total of 100 issued and outstanding shares, each member (in this subsection referred to as a “deemed shareholder”) of the deemed corporation is deemed to be a shareholder of the deemed corporation, each deemed shareholder of the deemed corporation is deemed to hold a number of shares in the capital stock of the deemed corporation determined by the formula is equal to (A)the deemed shareholder’s specified proportion for the last fiscal period of the deemed corporation, or the deemed shareholder’s specified proportion for the last fiscal period of the deemed corporation, or (B)if the deemed shareholder does not have a specified proportion described in clause (A), the proportion that the fair market value of the deemed shareholder’s interest in the deemed corporation at that time is of the fair market value of all interests in the deemed corporation at that time, and if the deemed shareholder does not have a specified proportion described in clause (A), the proportion that the fair market value of the deemed shareholder’s interest in the deemed corporation at that time is of the fair market value of all interests in the deemed corporation at that time, and the deemed corporation’s fiscal period is deemed to be its taxation year; and if the eligible person or partnership is an individual (other than a trust) who carries on a business or has acquired immediate expensing property the individual, in respect of that business or property, is deemed to be a corporation that is controlled by the individual, and the corporation’s taxation year is deemed to be the same as the individual’s taxation year. For the purposes of this Part and Schedules II to VI, accelerated investment incentive property means property of a taxpayer (other than property included in any of Classes 54 to 56) that is acquired by the taxpayer after November 20, 2018 and before 2025 and becomes available for use before 2028; and the property is not a property in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act by any person or partnership for a taxation year ending before the time the property was acquired by the taxpayer, or the taxpayer was deemed to have been allowed or deducted an amount under paragraph 20(1)(a) of the Act in respect of the property in computing income for previous taxation years, or the undepreciated capital cost of depreciable property of a prescribed class of the taxpayer was reduced by an amount determined by reference to the amount by which the capital cost of the property to the taxpayer exceeds its cost amount, or previously owned or acquired by the taxpayer or by a person or partnership with which the taxpayer did not deal at arm’s length at any time when the property was owned or acquired by the person or partnership. Definition of reaccelerated investment incentive property For the purposes of this Part and Schedules II to VI, reaccelerated investment incentive property means property of a taxpayer (other than property included in any of Classes 54 to 56) that is acquired by the taxpayer after 2024 and becomes available for use before 2034; and Deemed separate properties For the purpose of subparagraph (4)(b)(i), if the capital cost to a taxpayer of a depreciable property (referred to in this subsection as the “single property”) includes amounts incurred at different times, then amounts deducted under paragraph 20(1)(a) or subsection 20(16) of the Act in respect of the single property are deemed to have been deducted in respect of a separate property that is not part of the single property to the extent the deducted amounts can reasonably be considered to be in respect of amounts incurred before November 21, 2018; or incurred after November 20, 2018, if any portion of the single property is considered to have become available for use before the time the single property is first used for the purpose of earning income. For the purpose of subparagraph (4.01)(b)(i), if the capital cost to a taxpayer of a depreciable property (referred to in this subsection as the “single property”) includes amounts incurred at different times, then amounts deducted under paragraph 20(1)(a) or subsection 20(16) of the Act in respect of the single property are deemed to have been deducted in respect of a separate property that is not part of the single property to the extent the deducted amounts can reasonably be considered to be in respect of amounts incurred before 2025; or incurred after 2024, if any portion of the single property is considered to have become available for use before the time the single property is first used for the purpose of earning income. For the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and Classes 10, 28 and 41 to 41.2 of Schedule II, a taxpayer’s income from a mine, or any expression referring to a taxpayer’s income from a mine, includes income reasonably attributable to the processing by the taxpayer of ore (other than iron ore or tar sands ore) all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent, iron ore all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent, tar sands ore all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, or material extracted by a well, all or substantially all of which is from a deposit of bituminous sands or oil shales owned by the taxpayer, to any stage that is not beyond the crude oil stage or its equivalent; the production by the taxpayer of material from a deposit of bituminous sands or oil shales; and the transportation by the taxpayer of output, other than iron ore or tar sands ore, from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the prime metal stage or its equivalent, iron ore from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the pellet stage or its equivalent, or tar sands ore from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the crude oil stage or its equivalent, to the extent that such transportation is effected through the use of property of the taxpayer that is included in Class 10 in Schedule II because of paragraph (m) thereof or that would be so included if that paragraph were read without reference to subparagraph (v) thereof and if Class 41 in Schedule II were read without the reference therein to that paragraph.

For the purposes of Classes 41 to 41.2 of Schedule II, a taxpayer’s gross revenue from a mine includes revenue reasonably attributable to the processing by the taxpayer of ore (other than iron ore or tar sands ore) from a mineral resource owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent, iron ore from a mineral resource owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent, tar sands ore from a mineral resource owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, and material extracted by a well from a mineral resource owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent; the amount, if any, by which any revenue reasonably attributable to the processing by the taxpayer of ore (other than iron ore or tar sands ore) from a mineral resource not owned by the taxpayer, to any stage that is not beyond the prime metal stage or its equivalent, iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent, tar sands ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, and material extracted by a well from a mineral resource not owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent exceeds the cost to the taxpayer of the ore or material processed; and revenue reasonably attributable to the production by the taxpayer of material from a deposit of bituminous sands or oil shales. For the purpose of subsection (5.1), gross revenue from a mine does not include revenue reasonably attributable to the addition of diluent, for the purpose of transportation, to material extracted from a deposit of bituminous sands or oil shales. For the purposes of Class 10 in Schedule II, income from a mine includes income reasonably attributable to the processing of ore, other than iron ore or tar sands ore, from a mineral resource not owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent, tar sands ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, or material extracted by a well from a mineral resource not owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent; and mine includes a well for the extraction of material from a deposit of bituminous sands or oil shales or from a deposit of calcium chloride, halite or sylvite. [Repealed, SOR/99-179, s. 3] For the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and 1102(8) and (9), section 1107 and Classes 12, 28 and 41 to 41.2 of Schedule II, mine includes a well for the extraction of material from a deposit of bituminous sands or oil shales or from a deposit of calcium chloride, halite or sylvite, and a pit for the extraction of kaolin or tar sands ore, an oil or gas well, or a sand pit, gravel pit, clay pit, shale pit, peat bog, deposit of peat or a stone quarry (other than a kaolin pit or a deposit of bituminous sands or oil shales); all wells of a taxpayer for the extraction of material from one or more deposits of calcium chloride, halite or sylvite, the material produced from which is sent to the same plant for processing, are deemed to be one mine of the taxpayer; and all wells of a taxpayer for the extraction of material from a deposit of bituminous sands or oil shales that the Minister, in consultation with the Minister of Natural Resources, determines constitute one project, are deemed to be one mine of the taxpayer. For the purposes of subsection (7), stone quarry includes a mine producing dimension stone or crushed rock for use as aggregates or for other construction purposes. For greater certainty, for the purposes of paragraphs (c) and (e) of Class 28 and paragraph (a) of Classes 41 to 41.2 in Schedule II, production means production in reasonable commercial quantities. For the purposes of paragraph 1100(1)(a.1), subsection 1100(26) and Class 29 in Schedule II, manufacturing or processing does not include farming or fishing; logging; construction; operating an oil or gas well or extracting petroleum or natural gas from a natural accumulation thereof; extracting minerals from a mineral resource; processing of ore, other than iron ore or tar sands ore, from a mineral resource to any stage that is not beyond the prime metal stage or its equivalent, iron ore from a mineral resource to any stage that is not beyond the pellet stage or its equivalent, or tar sands ore from a mineral resource to any stage that is not beyond the crude oil stage or its equivalent; producing industrial minerals; producing or processing electrical energy or steam, for sale; processing natural gas as part of the business of selling or distributing gas in the course of operating a public utility; processing heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent; or Canadian field processing. For the purposes of subsection 1100(21) and the definitions certified feature film and certified production and in subsection (2), Canadian means an individual who was, at all relevant times, a Canadian citizen as defined in the Citizenship Act, or a permanent resident within the meaning of the Immigration Act, 1976; a motion picture film or video tape that has been certified by the Secretary of State, or the Minister of Communications as a certified feature film or certified production, as the case may be, may have its certification revoked by the Minister of Communications where an incorrect statement was made in the furnishing of information for the purpose of obtaining that certification and a certification that has been so revoked is void from the time of its issue; remuneration does not include an amount determined by reference to the amount of income from a motion picture film or video tape; revenue guarantee means a contract or other arrangement under the terms of which a taxpayer has a right to receive a minimum rental revenue or other fixed revenue in respect of a right to the use, in any manner whatever, of a certified feature film or certified production; a screenwriter shall be deemed to be an individual who is a Canadian where each individual involved in the preparation of the screenplay is a Canadian, or the principal screenwriter is an individual who is a Canadian and the screenplay for the motion picture film or video tape is based upon a work authored by a Canadian, copyright in the work subsists in Canada, and the work is published in Canada; unit of production means a measure used by the Minister of Communications in determining the weight to be given for each individual Canadian referred to in subparagraph (b)(ii) of the definition certified production in subsection (2) who provides services in respect of a motion picture film or video tape; and where each individual who performed a service in respect of a motion picture film or video tape as the director, screenwriter, actor or actress in respect of whose services for the film or tape the highest remuneration was paid or payable, actor or actress in respect of whose services for the film or tape the second highest remuneration was paid or payable, art director, director of photoghraphy, music composer, or picture editor was a Canadian, the Minister of Communications shall be deemed to have allotted six units of production in respect of the film or tape for the purposes of the definition certified production in subsection (2). For the purposes of paragraph (h) of Class 34 in Schedule II, a certificate issued under subparagraph (d)(i) of that class may be revoked by the Minister of Industry, Trade and Commerce, or subparagraph (d)(ii) or paragraph (g) of that class, as the case may be, may be revoked by the Minister of Energy, Mines and Resources where an incorrect statement was made in the furnishing of information for the purpose of obtaining the certificate, or the taxpayer does not conform to the plan described in subparagraph (d)(i) or (d)(ii) of that class, as the case may be, and a certificate that has been so revoked shall be void from the time of its issue. For the purposes of Class 37 in Schedule II, amusement park means a park open to the public where amusements, rides and audio-visual attractions are permanently situated. The definitions in this subsection apply for the purposes of this subsection, subsections (14) to (17) and Classes 43.1 and 43.2 in Schedule II. basic oxygen furnace gas means the gas that is produced intermittently in a basic oxygen furnace of a steel mill by the chemical reaction of carbon in molten steel and pure oxygen. (gaz de convertisseur basique à oxygène) biogas means the gas produced by the anaerobic digestion of specified waste material. (biogaz) bio-oil means liquid fuel that is created from wood waste or plant residues using a thermo-chemical conversion process that takes place in the absence of oxygen. (bio-huile) blast furnace gas means the gas produced in a blast furnace of a steel mill, by the chemical reaction of carbon (in the form of coke, coal or natural gas), the oxygen in air and iron ore. (gaz de haut fourneau) digester gas means a mixture of gases that are produced from the decomposition of organic waste in a digester and that are extracted from an eligible sewage treatment facility for that organic waste. (gaz de digesteur) distribution equipment means equipment (other than transmission equipment) used to distribute electrical energy generated by electrical generating equipment. (matériel de distribution) district energy equipment means property that is part of a district energy system and that consists of pipes or pumps used to collect and distribute an energy transfer medium, meters, control equipment, chillers and heat exchangers that are attached to the main distribution line of a district energy system, but does not include property used to distribute water that is for consumption, disposal or treatment; or property that is part of the internal heating or cooling system of a building. (équipement de réseau énergétique de quartier) district energy system means a system that is used primarily to provide heating or cooling by continuously circulating, from a central generation unit to one or more buildings through a system of interconnected pipes, an energy transfer medium that is heated or cooled using thermal energy. (réseau énergétique de quartier) eligible electrical generation equipment means property that is electrical generating equipment described in subparagraph (d)(iii.1), (v), (vi), (vii), (xiv) or (xix) of Class 43.1 in Schedule II; or subparagraph (e)(i) or (iii) of the definition clean electricity property in subsection 127.491(1) of the Act. (matériel générateur d’électricité admissible) eligible landfill site means a landfill site that is situated in Canada, or a former landfill site that is situated in Canada, and, if a permit or licence in respect of the site is or was required under any law of Canada or of a province, for which the permit or licence has been issued. (site d’enfouissement admissible) eligible sewage treatment facility means a sewage treatment facility that is situated in Canada and for which a permit or licence is issued under any law of Canada or of a province. (installation admissible de traitement des eaux usées) eligible transmission equipment means property (other than a building) that is transmission equipment of a taxpayer where the transmission equipment is used in connection with eligible electrical generation equipment of the taxpayer; and on annual basis more than 75% of the electrical energy generated by the eligible electrical generation equipment is transmitted by the transmission equipment, and more than 75% of the electrical energy transmitted by the transmission equipment is generated by the eligible electrical generation equipment. (matériel de transmission admissible) eligible waste fuel means biogas, bio-oil, digester gas, landfill gas, municipal waste, plant residue, pulp and paper waste and wood waste. (combustible résiduaire admissible) eligible waste management facility means a waste management facility that is situated in Canada and for which a permit or licence is issued under any law of Canada or of a province. (installation admissible de gestion des déchets) enhanced combined cycle system means an electrical generating system in which thermal waste from one or more natural gas compressor systems is recovered and used to contribute at least 20 per cent of the energy input of a combined cycle process in order to enhance the generation of electricity, but does not include the natural gas compressor systems. (système à cycles combinés amélioré) food and animal waste means organic waste that is disposed of in accordance with the laws of Canada or a province and that is generated during the preparation or processing of food or beverage for human or animal consumption; food or beverage that is no longer fit for human or animal consumption; or animal remains. (déchets alimentaires et animaux) food waste[Repealed, 2010, c. 25, s. 76] fossil fuel means a fuel that is petroleum, natural gas or related hydrocarbons, basic oxygen furnace gas, blast furnace gas, coal, coal gas, coke, coke oven gas, lignite or peat. (combustible fossile) gaseous biofuel means a fuel produced all or substantially all from specified waste material that is a gas at a temperature of 15.6°C (60°F) and a pressure of 101 kPa (14.7 psia). (biocarburants gazeux) landfill gas means a mixture of gases that are produced from the decomposition of organic waste and that are extracted from an eligible landfill site. (gaz d’enfouissement) liquid biofuel means a fuel produced all or substantially all from specified waste material or carbon dioxide that is a liquid at a temperature of 15.6°C (60°F) and a pressure of 101 kPa (14.7 psia). (biocarburants liquides) municipal waste means the combustible portion of waste material (other than waste material that is considered to be toxic or hazardous waste pursuant to any law of Canada or of a province) that is generated in Canada and that is accepted at an eligible landfill site or an eligible waste management facility and that, when burned to generate energy, emits only those fluids or other emissions that are in compliance with the law of Canada or of a province. (déchets municipaux) plant residue means residue of plants (not including wood waste and waste that no longer has the chemical properties of the plants of which it is a residue) that would otherwise be waste material. (résidus végétaux) producer gas means in respect of a property of a taxpayer that becomes available for use by the taxpayer before 2025, fuel the composition of which, excluding its water content, is all or substantially all non-condensable gases that is generated primarily from eligible waste fuel or specified waste material using a thermo-chemical conversion process and that is not generated from any feedstock other than eligible waste fuel, specified waste material or fossil fuel; and in respect of a property of a taxpayer that becomes available for use by the taxpayer after 2024, fuel the composition of which, excluding its water content, is all or substantially all non-condensable gases, that is generated using a thermo-chemical conversion process, that is generated from feedstock of which no more than 25% is fossil fuel when measured in terms of energy content (expressed as a higher heating value of the feedstock), and that is not generated from any feedstock other than eligible waste fuel, specified waste material or fossil fuel. (gaz de gazéification) pulp and paper by-product means tall oil soaps and crude tall oil that are produced as by-products of the processing of wood into pulp or paper and the by-product of a pulp or paper plant’s effluent treatment or its de-inking processes. (sous-produit d’usine de pâtes ou papiers) pulp and paper waste means tall oil soaps, crude tall oil and turpentine that are produced as by-products of the processing of wood into pulp or paper; and the by-product of a pulp or paper plant’s effluent treatment, or its de-inking processes, if that by-product has a solid content of at least 40 per cent before combustion. (déchets d’usines de pâtes ou papiers) separated organics means organic waste (other than waste that is considered to be toxic or hazardous waste under any law of Canada or a province) that could be disposed of in an eligible waste management facility or eligible landfill site. (matières organiques séparées) solid biofuel means a fuel produced all or substantially all from specified waste material that is a solid at a temperature of 15.6°C (60°F) and a pressure of 101 kPa (14.7 psia) (other than charcoal that is used for cooking or fuels with fossil fuel-derived ignition accelerants) and that has undergone a thermo-chemical conversion process to increase its carbon fraction and densification; or densification into pellets or briquettes. (biocarburants solides) solution gas means a fossil fuel that is gas that would otherwise be flared and has been extracted from a solution of gas and produced oil. (gaz dissous) specified waste material means wood waste, plant residue, municipal waste, sludge from an eligible sewage treatment facility, spent pulping liquor, food and animal waste, manure, pulp and paper by-product and separated organics. (déchets déterminés) spent pulping liquor means the by-product of a chemical process of transforming wood into pulp, consisting of wood residue and pulping agents. (liqueur résiduaire) thermal waste means waste heat energy extracted from a distinct point of rejection in an industrial process that would otherwise be vented to the atmosphere or transferred to a liquid; and not be used for a useful purpose. (déchets thermiques) transmission equipment means equipment used to transmit electrical energy. (matériel de transmission) wood waste includes scrap wood, sawdust, wood chips, bark, limbs, saw-ends and hog fuel, but does not include spent pulping liquor and any waste that no longer has the physical or chemical properties of wood. (déchets de bois) Where property of a taxpayer is not operating in the manner required by paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II solely because of a deficiency, failing or shutdown that is beyond the control of the taxpayer of the system of which it is a part and that previously operated in the manner required by that paragraph, as the case may be, that property is deemed, for the purpose of that paragraph, to be operating in the manner required under that paragraph during the period of the deficiency, failing or shutdown, if the taxpayer makes all reasonable efforts to rectify the circumstances within a reasonable time. For the purpose of subsection (14), a taxpayer’s system referred to in that subsection that has at any particular time operated in the manner required by paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II includes at any time after the particular time a property of another person or partnership if the property would reasonably be considered to be part of the taxpayer’s system were the property owned by the taxpayer; the property utilizes heat obtained from the taxpayer’s system; the operation of the property is necessary for the taxpayer’s system to operate in the manner required by paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II, as the case may be; and at the time that the taxpayer’s system first became operational, the deficiency, failing or shutdown in the operation of the property could not reasonably have been anticipated by the taxpayer to occur within five years after that time. For the purpose of subsection (14), a district energy system is deemed to satisfy the requirements of paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II, as the case may be, if the electrical cogeneration equipment that produces the thermal energy used by the system is deemed by subsection (14) to meet the requirements of paragraph (c) of Class 43.1, or paragraph (a) of Class 43.2, in Schedule II, as the case may be. A property that would otherwise be eligible for inclusion in Class 43.1 or Class 43.2 in Schedule II by a taxpayer is deemed not to be eligible for inclusion in either of those classes if, at the time the property becomes available for use, there is substantial non-compliance by the taxpayer with the requirements of any environmental law, by-law or regulation of Canada, a province, a municipality, or a municipal or public body performing a function of government in Canada that is applicable in respect of the property. For the purposes of paragraphs 1100(1)(a.3) and (yb), a taxpayer’s income for a taxation year from eligible liquefaction activities in respect of an eligible liquefaction facility of the taxpayer is determined as if the taxpayer carried on a separate business the only income of which is any combination of: in the case of natural gas that is owned by the taxpayer at the time it enters the taxpayer’s eligible liquefaction facility, income from the sale by the taxpayer of the natural gas that has been liquefied, whether sold as liquefied natural gas or regasified natural gas, and in any other case, income reasonably attributable to the liquefaction of natural gas at the taxpayer’s eligible liquefaction facility, and in respect of which the only permitted deductions in computing the separate business’ income are those deductions that are attributable to income described in subparagraph (i) and, in the case of income described in clause (i)(A), that are reasonably attributable to income derived after the natural gas enters the eligible liquefaction facility; and in the case of income described in clause (a)(i)(A), the taxpayer acquired the natural gas that has been liquefied at a cost equal to the fair market value of the natural gas at the time it entered the eligible liquefaction facility. The classes of property provided in this Part and in Schedule II are hereby prescribed for the purposes of the Act. The following definitions apply in this Division and in paragraph (x) of Class 10 in Schedule II. application for a certificate of completion, in respect of a film or video production, means an application by a prescribed taxable Canadian corporation in respect of the production, filed with the Minister of Canadian Heritage before the day (in this Division referred to as “the production’s application deadline”) that is the later of the day that is 24 months after the end of the corporation’s taxation year in which the production’s principal photography began, or the day that is 18 months after the day referred to in paragraph (a), if the corporation has filed, with the Canada Revenue Agency, and provided to the Minister of Canadian Heritage a copy of, a waiver described in subparagraph 152(4)(a)(ii) of the Act, within the normal reassessment period for the corporation in respect of the first and second taxation years ending after the production’s principal photography began. (demande de certificat d’achèvement) Canadian means a person that is an individual who is a citizen, as defined in subsection 2(1) of the Citizenship Act, of Canada, or a permanent resident, as defined in subsection 2(1) of the Immigration and Refugee Protection Act, or a corporation that is a Canadian-controlled entity, as determined under sections 26 to 28 of the Investment Canada Act. (Canadien) Canadian government film agency means a federal or provincial government agency whose mandate is related to the provision of assistance to film productions in Canada. (agence cinématographique d’État) certificate of completion, in respect of a film or video production of a corporation, means a certificate certifying that the production has been completed, issued by the Minister of Canadian Heritage before the day (in this Division referred to as “the production’s certification deadline”) that is six months after the production’s application deadline. (certificat d’achèvement) copyright owner, of a film or video production, at any time means the maker, as defined in section 2 of the Copyright Act, who at that time owns copyright, in relation to the production, within the meaning of section 3 of that Act; or a person to whom that copyright has been assigned, under an assignment described in section 13 of the Copyright Act, either wholly or partially, by the maker or by another owner to whom this paragraph applied before the assignment. (titulaire du droit d’auteur) excluded production means a film or video production, of a particular corporation that is a prescribed taxable Canadian corporation, in respect of which the particular corporation has not filed an application for a certificate of completion before the production’s application deadline, a certificate of completion has not been issued before the production’s certification deadline, if the production is not a treaty co-production, a person (other than the particular corporation or a prescribed person) is a copyright owner of the production for any commercial exploitation purposes at any time during the 25-year period that begins at the earliest time after the production was completed that it is commercially exploitable, or controls the initial licensing of commercial exploitation, there is not an agreement in writing, for consideration at fair market value, to have the production shown in Canada within the 2-year period that begins at the earliest time after the production was completed that it is commercially exploitable, with a corporation that is a Canadian and is a distributor of film or video productions, or with a corporation that holds a broadcasting license issued by the Canadian Radio-television and Telecommunications Commission for television markets, or distribution is made in Canada within the 2-year period that begins at the earliest time after the production was completed that it is commercially exploitable by a person that is not a Canadian, or news, current events or public affairs programming, or a programme that includes weather or market reports, [Repealed, SOR/2016-262, s. 1] a production in respect of a game, questionnaire or contest (other than a production directed primarily at minors), a sports event or activity, a gala presentation or an awards show, a production that solicits funds, reality television, pornography, advertising, a production produced primarily for industrial, corporate or institutional purposes, or a production, other than a documentary, all or substantially all of which consists of stock footage. (production exclue) producer means a producer of a film or video production, except that it does not include a person unless the person is the individual who controls and is the central decision maker in respect of the production; is directly responsible for the acquisition of the production story or screenplay and the development, creative and financial control and exploitation of the production; and is identified in the production as being the producer of the production. (producteur) remuneration means remuneration other than an amount determined by reference to profits or revenues. (rémunération) twinning arrangement means the pairing of two distinct film or video productions, one of which is a Canadian film or video production and the other of which is a foreign film or video production. (convention de jumelage) In respect of applications filed with the Minister of Canadian Heritage in respect of film or video productions for which the labour expenditure of the corporation in respect of the production for the taxation years ending in 2020 or 2021 was greater than nil, the definition application for a certificate of completion in subsection (1) is to be read as follows: the day that is 24 months after the end of the corporation’s taxation year in which the production’s principal photography began, the day that is 18 months after the day referred to in paragraph (a), if the corporation has filed, with the Canada Revenue Agency, and provided to the Minister of Canadian Heritage a copy of, a waiver described in subparagraph 152(4)(a)(ii) of the Act, within the normal reassessment period for the corporation in respect of the first and second taxation years ending after the production’s principal photography began, or the day that is 12 months after the day referred to in paragraph (b), if the corporation has filed, with the Canada Revenue Agency, and provided to the Minister of Canadian Heritage a copy of, a waiver described in subparagraph 152(4)(a)(ii) of the Act, within the normal reassessment period for the corporation in respect of the first, second and third taxation years ending after the production’s principal photography began. (demande de certificat d’achèvement) The reference to “2-year period” in subparagraph (a)(iv) of the definition excluded production in subsection (1) is to be read as a reference to “three-year period” in respect of film or video productions for which the labour expenditure of the corporation in respect of the production for the taxation years ending in 2020 or 2021 was greater than nil. For the purposes of section 125.4 of the Act and this Division, prescribed taxable Canadian corporation means a taxable Canadian corporation that is a Canadian, other than a corporation that is controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under Part I of the Act; or a prescribed labour-sponsored venture capital corporation, as defined in section 6701. For the purpose of this Division, treaty co-production means a film or video production whose production is contemplated under any of the following instruments, and to which the instrument applies: a co-production treaty entered into between Canada and another State; the Memorandum of Understanding between the Government of Canada and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China on Film and Television Co-Production; the Common Statement of Policy on Film, Television and Video Co-Productions between Japan and Canada; the Memorandum of Understanding between the Government of Canada and the Government of the Republic of Korea on Television Co-Production; the Memorandum of Understanding between the Government of Canada and the Government of the Republic of Malta on Audio-Visual Relations; and the Memorandum of Understanding between the Government of Canada and the Respective Governments of the Flemish, French and German-Speaking Communities of the Kingdom of Belgium concerning Audiovisual Coproduction. Subject to subsections (6) to (9), for the purposes of section 125.4 of the Act, this Part and Schedule II, Canadian film or video production means a film or video production, other than an excluded production, of a prescribed taxable Canadian corporation in respect of which the Minister of Canadian Heritage has issued a certificate (other than a certificate that has been revoked under subsection 125.4(6) of the Act) and that is a treaty co-production; or a film or video production whose producer is a Canadian at all times during its production, in respect of which the Minister of Canadian Heritage has allotted not less than six points in accordance with subsection (5), in respect of which not less than 75% of the total of all costs for services provided in respect of producing the production (other than excluded costs) was payable in respect of services provided to or by individuals who are Canadians, and for the purpose of this subparagraph, excluded costs are costs determined by reference to the amount of income from the production, remuneration payable to, or in respect of, the producer or individuals described in any of subparagraphs (5)(a)(i) to (viii) and (b)(i) to (vi) and paragraph (5)(c) (including any individuals that would be described in paragraph (5)(c) if they were Canadians), amounts payable in respect of insurance, financing, brokerage, legal and accounting fees, and similar amounts, and costs described in subparagraph (iv), and in respect of which not less than 75% of the total of all costs incurred for the post-production of the production, including laboratory work, sound re-recording, sound editing and picture editing, (other than costs that are determined by reference to the amount of income from the production and remuneration that is payable to, or in respect of, the producer or individuals described in any of subparagraphs (5)(a)(i) to (viii) and (b)(i) to (vi) and paragraph (5)(c), including any individuals that would be described in paragraph (5)(c) if they were Canadians) was incurred in respect of services provided in Canada. For the purposes of this Division, the Minister of Canadian Heritage shall allot, in respect of a film or video production that is not an animation production, in respect of each of the following persons if that person is an individual who is a Canadian, for the director, two points, for the screenwriter, two points, for the lead performer for whose services the highest remuneration was payable, one point, for the lead performer for whose services the second highest remuneration was payable, one point, for the art director, one point, for the director of photography, one point, for the music composer, one point, and for the picture editor, one point; that is an animation production, in respect of each of the following persons if that person is an individual who is a Canadian, for the director, one point, for the lead voice for which the highest or second highest remuneration was payable, one point, for the design supervisor, one point, for the camera operator where the camera operation is done in Canada, one point, that is an animation production, one point if both the principal screenwriter and the storyboard supervisor are individuals who are Canadians; and that is an animation production, in respect of each of the following places if that place is in Canada, for the place where the layout and background work is done, one point, for the place where the key animation is done, one point, and for the place where the assistant animation and in-betweening is done, one point. A production (other than a production that is an animation production or a treaty co-production) is a Canadian film or video production only if there is allotted in respect of the production two points under subparagraph (5)(a)(i) or (ii) and one point under subparagraph (5)(a)(iii) or (iv). An animation production (other than a production that is a treaty co-production) is a Canadian film or video production only if there is allotted, in respect of the production, one point under subparagraph (5)(b)(i) or paragraph (5)(c); one point under subparagraph (5)(b)(ii); and one point under subparagraph (5)(d)(ii). For the purposes of this Division, a lead performer in respect of a production is an actor or actress who has a leading role in the production having regard to the performer’s remuneration, billing and time on screen; a lead voice in respect of an animation production is the voice of the individual who has a leading role in the production having regard to the length of time that the individual’s voice is heard in the production and the individual’s remuneration; and where a person who is not a Canadian participates in the writing and preparation of the screenplay for a production, the screenwriter is not a Canadian unless the principal screenwriter is an individual who is otherwise a Canadian, the screenplay for the production is based upon a work authored by a Canadian, and the work is published in Canada. A documentary production that is not an excluded production, and that is allotted less than six points because one or more of the positions referred to in paragraph (5)(a) is unoccupied, is a Canadian film or video production if all of the positions described in that paragraph that are occupied in respect of the production are occupied by individuals who are Canadians. For the purpose of section 125.4 of the Act and this Division, prescribed person means any of the following: a corporation that holds a television, specialty or pay-television broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission; a corporation that holds a broadcast undertaking licence and that provides production funding as a result of a “significant benefits” commitment given to the Canadian Radio-television and Telecommunications Commission; a person to which paragraph 149(1)(l) of the Act applies and that has a fund that is used to finance Canadian film or video productions; a Canadian government film agency; in respect of a film or video production, a non-resident person that does not carry on a business in Canada through a permanent establishment in Canada and whose interest (or, for civil law, right) in the production is acquired to comply with the certification requirements of a treaty co-production twinning arrangement; a person to which paragraph 149(1)(f) of the Act applies, that has a fund that is used to finance Canadian film or video productions, all or substantially all of which financing is provided by way of a direct ownership interest (or, for civil law, right) in those productions, and that, after 1996, has received donations only from persons described in any of paragraphs (a) to (e); a prescribed taxable Canadian corporation; an individual who is a Canadian; and a partnership, each member of which is described in any of paragraphs (a) to (h). For the purpose of the definition assistance in subsection 125.4(1) of the Act, prescribed amount means an amount paid or payable to a taxpayer under the License Fee Program of the Canadian Television Fund or as a licence-fee top-up contribution from the Canada Media Fund. For the purpose of the definition copyright owner in subsection (1), the right of a person to share in the revenues from or proceeds of disposition of an interest or, for civil law, a right, in a film or video production is not, in and by itself, an interest or right as a copyright owner of the production; and for greater certainty, a grant of an exclusive licence, within the meaning assigned by the Copyright Act, is not an assignment of a copyright. For the purpose of the definition bituminous sands in subsection 248(1) of the Act, viscosity or density of hydrocarbons shall be determined using a number of individual samples (constituting a representative sampling of that deposit or those deposits, as the case may be, from which the taxpayer is committed to produce by means of one mine) tested at atmospheric pressure; at a temperature of 15.6 degrees Celsius; and free of solution gas. For the purposes of section 65 of the Act, there may be deducted in computing the income of a taxpayer for a taxation year such of the amounts determined in accordance with sections 1201 to 1209 and 1212 as are applicable. In computing a taxpayer’s income for a taxation year there may be deducted such amount as he may claim not exceeding the lesser of 25 per cent of the amount, if any, by which the taxpayer’s resource profits for the year exceed four times the total of amounts, if any, deducted under subsection 1202(2) in computing the taxpayer’s income for the year, and the amount, if any, by which the aggregate of amounts included in computing the taxpayer’s income for the year under paragraphs 59(3.3)(a) and (b) of the Act exceeds the aggregate of amounts, if any, that may reasonably be considered to have been deducted under subsection 1202(2) by reason of subparagraph (b)(ii) thereof in computing the taxpayer’s income for the year; and the taxpayer’s earned depletion base as of the end of the year, and the aggregate determined under paragraph 1202(4)(a) in respect of the taxpayer for the year the aggregate of all amounts that would be determined under paragraphs 1205(1)(e) to (k) 33 1/3 per cent of the aggregate of all amounts that would be determined under paragraphs 1205(1)(a) to (d.2) in computing the taxpayer’s earned depletion base as of the end of the year. For the purposes of computing the earned depletion base of a corporation, control of which has been acquired under circumstances described in subsection 66(11) of the Act, the amount by which the earned depletion base of the corporation at the time referred to in that subsection exceeds the aggregate of amounts otherwise deducted under section 1201 in computing its income for taxation years ending after that time and before control was so acquired shall be deemed to have been deducted under section 1201 by the corporation in computing its income for taxation years ending before such acquisition of control. Subject to subsections (5) and (6), where after November 7, 1969 a corporation (in this subsection referred to as the “successor”) acquired a particular property (whether by way of a purchase, amalgamation, merger, winding-up or otherwise), there may be deducted by the successor in computing its income for a taxation year an amount not exceeding the aggregate of all amounts each of which is an amount determined in respect of an original owner of the particular property that is the lesser of the earned depletion base of the original owner immediately after the original owner disposed of the particular property (determined as if, in the case of a disposition after April 28, 1978 as a result of an amalgamation described in section 87 of the Act, the original owner existed after the time of disposition and no property was acquired or disposed of in the course of the amalgamation) to the extent of the amount thereof that was not deducted by the original owner or any predecessor owner of the particular property in computing income for any taxation year, deducted by the successor in computing income for a preceding taxation year, or otherwise deducted by the successor in computing income for the taxation year, and 25 per cent of the amount, if any, by which the part of the successor’s income for the year that can reasonably be regarded as attributable to the part of any amount included under paragraph 59(3.2)(c) of the Act in computing its income for the year that can reasonably be regarded as attributable to the disposition by it in the year or a preceding taxation year of any interest in or right to the particular property, to the extent that the proceeds of the disposition have not been included in determining an amount under this clause, paragraph (7)(g), clause 29(25)(d)(i)(A) of the Income Tax Application Rules or clause 66.7(1)(b)(i)(A) or (3)(b)(i)(A) or paragraph 66.7(10)(g) of the Act for a preceding taxation year, its reserve amount for the year in respect of the original owner and each predecessor owner, if any, of the particular property, production from the particular property, or processing described in subparagraph 1204(1)(b)(iii), (iv) or (v) with the particular property computed as if no deduction were allowed under section 29 of the Income Tax Application Rules or under any of sections 65 to 66.7 of the Act and as if that income did not include any amount designated under clause 66.7(2)(b)(ii)(A) of the Act, four times the total of all other amounts deducted under this subsection for the year that can reasonably be regarded as attributable to the part of the successor’s income for the year described in subparagraph (i), and the total of all amounts each of which is an amount deducted under subsection 66.7(1), (3), (4) or (5) of the Act or subsection 29(25) of the Income Tax Application Rules for the year that can reasonably be regarded as attributable to the part of the successor’s income for the year described in subparagraph (i). Where in a taxation year ending after February 17, 1987 an original owner of a property disposes of the property in circumstances in which subsection (2) applies, the amount of the earned depletion base of the original owner determined immediately after the time of that disposition shall be deducted in determining the earned depletion base of the original owner at any time after the time that is immediately after the disposition; for the purposes of paragraph (2)(a), the earned depletion base of the original owner determined immediately after the original owner disposed of the property that was deducted in computing the original owner’s income for the year shall be deemed to be equal to the lesser of the amount deducted in respect of the disposition under paragraph (a), and the specified amount determined under subsection (4) in respect of the original owner for the year the aggregate of all amounts each of which is an amount determined under this paragraph in respect of any disposition made by the original owner before the disposition and in the year; and for greater certainty, any amount (other than the amount determined under paragraph (b)) that was deducted under section 1201 by the original owner for the year or a subsequent taxation year shall, for the purposes of paragraph (2)(a), be deemed not to be in respect of the earned depletion base of the original owner determined immediately after the original owner disposed of the particular property. Where in a taxation year ending after February 17, 1987 an original owner of a property disposes of the property in circumstances in which subsection (2) applies, the lesser of the total of all amounts each of which is the amount, if any, by which an amount deducted under paragraph (3)(a) in respect of such a disposition in the year by the original owner the amount, if any, designated by the original owner in a prescribed form filed with the Minister within six months after the end of the year in respect of the amount determined under subparagraph (i), and the amount, if any, deducted under section 1201 in computing the income of the original owner for the taxation year is the specified amount in respect of the original owner for the year for the purposes of paragraphs (3)(b) and 1205(1)(d.2). Subsections (2), 1203(3), 1207(7) and 1212(4) do not apply in respect of a property acquired by way of an amalgamation or winding-up to which section 1214 applies; to permit, in respect of the acquisition by a corporation before February 18, 1987 of a property, a deduction by the corporation of an amount that the corporation would not have been entitled to deduct under this Part, if this Part, as it read in its application to taxation years ending before February 18, 1987, applied to taxation years ending after February 17, 1987; or in respect of a property acquired by purchase, amalgamation, merger, winding-up or otherwise, from a person who is exempt from tax under Part I of the Act on that person’s taxable income. Subsections (2), 1203(3), 1207(7) and 1212(4) apply only to a corporation that has acquired a particular property where it acquired the particular property in a taxation year commencing before 1985 and, at the time it acquired the particular property, the corporation acquired the specified property of the person from whom it acquired the particular property; where it acquired the particular property from a person in a taxation year commencing after 1984 and, at the time it acquired the particular property, the corporation acquired all or substantially all of the Canadian resource properties of that person, or where subparagraph (i) does not apply, the specified property of the person;

where it acquired (other than in circumstances in which subparagraph (b)(ii) applies) the particular property after November 16, 1978 and in a taxation year ending before February 18, 1987 by any means other than by way of an amalgamation or winding-up and it and the person from whom it acquired the particular property have filed with the Minister a joint election under and in accordance with any of subsections 66(6), 66.1(4), 66.1(5), 66.2(3), 66.2(4), 66.4(3), and 66.4(4) of the Act as those subsections read in their application to that year; where it acquired the particular property after June 5, 1987 by way of an amalgamation or winding-up (other than in circumstances in which subparagraph (b)(ii) applies) and it has filed an election in the form prescribed for the purposes of paragraph 66.7(7)(c) of the Act with the Minister on or before the day on or before which the corporation is required to file a return of income pursuant to section 150 of the Act for its taxation year in which it acquired the particular property; where it acquired the particular property (other than by means of an amalgamation or winding-up or in circumstances in which subparagraph (b)(ii) applies) in a taxation year ending after February 17, 1987 and it and the person from whom it acquired the particular property have filed a joint election in the form prescribed for the purposes of paragraph 66.7(7)(e) of the Act with the Minister on or before the earlier of the days on or before which either of them is required to file a return of income pursuant to section 150 of the Act in respect of the irrespective taxation years that include the time of acquisition of the particular property; and where it acquired (other than by way of an amalgamation or winding-up) the particular property in circumstances in which subparagraph (b)(ii) applies and it and the person from whom it acquired the particular property agree to have subsection (2), 1203(3), 1207(7) or 1212(4), as the case may be, apply to them and notify the Minister in writing of the agreement in their returns of income under Part I of the Act for their respective taxation years that include the time of acquisition of the particular property. Where at any time after November 12, 1981 control of a corporation is considered for the purposes of subsection 66.7(10) of the Act to have been acquired by a person or group of persons, or a corporation ceases to be exempt from tax under Part I of the Act on its taxable income, for the purposes of section 1201, this section and section 1205, the corporation shall be deemed after that time to be a successor (within the meaning assigned by subsection (2)) that had, at that time, acquired all the properties owned by the corporation immediately before that time from an original owner thereof; a joint election shall be deemed to have been filed in accordance with subsection (6) in respect of the acquisition; the earned depletion base of the corporation immediately before that time shall be deemed not to be the earned depletion base of the corporation immediately after that time but to be the earned depletion base of the original owner immediately after that time; [Repealed, SOR/93-120, s. 1] where the corporation (in this paragraph referred to as the “transferee”) was, immediately before and at that time, a parent corporation (within the meaning assigned by subsection 87(1.4) of the Act), or a subsidiary wholly-owned corporation (within the meaning assigned by subsection 87(1.4) of the Act) of a particular corporation (in this paragraph referred to as the “transferor”), if both corporations agree to have this paragraph apply to them in respect of a taxation year of the transferor ending after that time and notify the Minister in writing of the agreement in the return of income under Part I of the Act of the transferor for that year, the transferor may, if throughout that year the transferee was such a parent corporation or subsidiary wholly-owned corporation of the transferor, designate in favour of the transferee, in respect of that year, for the purpose of making a deduction under subsection (2) in respect of expenditures incurred by the transferee before that time and when it was such a parent corporation or subsidiary wholly-owned corporation of the transferor, an amount not exceeding such portion of the amount that would be its income for the year, if no deductions were allowed under any of section 29 of the Income Tax Application Rules, and sections 65 to 66.7 of the Act, that may reasonably be regarded as being attributable to the production from Canadian resource properties owned by the transferor immediately before that time, the disposition in the year of any Canadian resource properties owned by the transferor immediately before that time, and such processing as is described in subparagraph 1204(1)(b)(iii), (iv), or (v) with property owned by the transferor immediately before that time to the extent that such portion of the amount so designated is not designated under this paragraph in favour of any other taxpayer or under paragraph 66.7(10)(g) of the Act in favour of any taxpayer, and the amount so designated shall be deemed, for the purposes of determining the amount under subsection (2), to be income from the sources described in subparagraph (iii), (iv) or (v), as the case may be, of the transferee for its taxation year in which that taxation year of the transferor ends, and not to be income from the sources described in subparagraph (iii), (iv) or (v), as the case may be, of the transferor for that year; where, immediately before and at that time, the corporation (in this paragraph referred to as the “transferee”) and another corporation (in this paragraph referred to as the “transferor”) were both subsidiary wholly-owned corporations (within the meaning assigned by subsection 87(1.4) of the Act) of a particular parent corporation (within the meaning assigned by subsection 87(1.4) of the Act), if the transferee and the transferor agree to have this paragraph apply to them in respect of a taxation year of the transferor ending after that time and notify the Minister in writing of the agreement in the return of income under Part I of the Act of the transferor for that year, paragraph (g) shall apply for that year to the transferee and transferor as though one were the parent corporation (within the meaning assigned by subsection 87(1.4) of the Act) of the other; and where that time is after January 15, 1987 and at that time the corporation was a member of a partnership that owned a property at that time for the purposes of paragraph (c), the corporation shall be deemed to have owned immediately before that time that portion of the property owned by the partnership at that time that is equal to its percentage share of the aggregate of amounts that would be paid to all members of the partnership if it were wound up at that time, and for the purposes of clauses (2)(b)(i)(C) and (D) for a taxation year ending after that time, the lesser of its share of the part of the income of the partnership for the fiscal period of the partnership ending in the year that may reasonably be regarded as being attributable to the production from the property or to such processing as is described in subparagraph 1204(1)(b)(iii), (iv) or (v) with the property, and an amount that would be determined under clause (A) for the year if its share of the income of the partnership for the fiscal year of the partnership were determined on the basis of the percentage share referred to in subparagraph (i) shall be deemed to be income of the corporation for the year that may reasonably be attributable to production from the property or to such processing as is described in subparagraph 1204(1)(b)(iii), (iv) or (v) with the property. For the purposes of subsections (1) and (7), where a corporation acquired control of another corporation after November 12, 1981 and before 1983 by reason of the acquisition of shares of the other corporation pursuant to an agreement in writing concluded on or before November 12, 1981, the corporation shall be deemed to have acquired such control on or before November 12, 1981. Where, at any time, control of a taxpayer that is a corporation has been acquired by a person or group of persons, a taxpayer has disposed of all or substantially all of the taxpayer’s Canadian resource properties, or a taxpayer has disposed of the specified property of the taxpayer, and, before that time, the taxpayer or a partnership of which the taxpayer was a member acquired a property and it may reasonably be considered that one of the main purposes of the acquisition was to avoid any limitation provided in subsection (2) on the deduction in respect of the earned depletion base of the taxpayer or of a corporation referred to as a transferee in paragraph (7)(g) or (h), the taxpayer or the partnership, as the case may be, shall be deemed, for the purposes of applying subsection (2) to or in respect of the taxpayer, not to have acquired the property. Where in a particular taxation year a predecessor owner of a property disposes of it to a corporation in circumstances in which subsection (2) applies, for the purposes of applying subsection (2) to the predecessor owner for a taxation year ending after February 17, 1987 in respect of its acquisition of the property, the predecessor owner shall be deemed, after the disposition, never to have acquired the property except for the purposes of making a deduction under subsection (2) for the particular year. Where at any time a property is acquired by a person in circumstances in which subsection (2) does not apply, every person who was an original owner or predecessor owner of the property by reason of having disposed of the property before that time shall, for the purposes of applying this Part to or in respect of the person or any other person who after that time acquires the property, be deemed after that time not to be an original owner or predecessor owner of the property by reason of having disposed of the property before that time. 25 per cent of his income for the year, computed in accordance with Part I of the Act without reference to paragraph 59(3.3)(f) thereof and on the assumption that no deduction were allowed under section 65 thereof, and the amount, if any, included in computing his income for the year by virtue of paragraph 59(3.3)(f) of the Act the aggregate of amounts deducted under sections 1201, 1202, 1207 and 1212 in computing his income for the year; and his mining exploration depletion base as of the end of the year (before making any deduction under this subsection for the year). For the purposes of this section, mining exploration depletion base of a taxpayer as of a particular time means the amount by which the aggregate of 33 1/3 per cent of the amount by which the aggregate of all amounts each of which was the stated percentage of an expenditure that is, or but for paragraph 66(12.61)(b) of the Act would be, incurred by the taxpayer after April 19, 1983 and before the particular time and each of which was a Canadian exploration expense described in subparagraph 66.1(6) (a)(iii) of the Act, or that would have been described in subparagraph 66.1(6) (a)(iv) or (v) of the Act if the references in those subparagraphs to “any of subparagraphs (i) to (iii.1)” were read as “subparagraph (iii)”, other than an expense described in clause (A) or (B) that was an expense renounced by the taxpayer under subsection 66(10.1) or (12.6) of the Act, an amount that was a Canadian exploration and development overhead expense of the taxpayer, an amount that was in respect of financing, including any cost incurred prior to the commencement of carrying on a business, or an eligible expense within the meaning of the Canadian Exploration Incentive Program Act in respect of which the taxpayer, a partnership of which the taxpayer was a member or a principal-business corporation of which the taxpayer was a shareholder, has received, is deemed to have received, is entitled to receive or may reasonably be expected to receive at any time an incentive under that Act, the aggregate of all amounts each of which is the stated percentage of an amount of assistance (within the meaning assigned by paragraph 66(15)(a.1) of the Act) that any person has received, is entitled to receive or, at any time, becomes entitled to receive in respect of an expense that would be described in subparagraph (i) if that subparagraph were read without reference to clause (C) thereof, other than such an amount in respect of an expense renounced under subsection 66(10.1) or (12.6) of the Act by a corporation in favour of the taxpayer, where the amount of that assistance is excluded from the aggregate in respect of which the expense is so renounced, or by the taxpayer, where the amount of that assistance is not excluded from the aggregate in respect of which the expense is so renounced, and where the taxpayer is a successor corporation, any amount required by paragraph (3)(a) to be added before the particular time in computing the taxpayer’s mining exploration depletion base all amounts each of which is an amount deducted by the taxpayer under subsection (1) in computing his income for a taxation year ending before the particular time; and where the taxpayer is a predecessor, all amounts required by paragraph (3)(b) to be deducted before the particular time in computing the taxpayer’s mining exploration depletion base. Subject to subsections 1202(5) and (6), where a corporation (in this section referred to as the “successor corporation”) has at any time (in this subsection referred to as the “time of acquisition”) after April 19, 1983 and in a taxation year (in this subsection referred to as the “transaction year”) acquired a property from another person (in this subsection referred to as the “predecessor”), the following rules apply: for the purpose of computing the mining exploration depletion base of the successor corporation as of any time after the time of acquisition, there shall be added an amount equal to the amount required by paragraph (b) to be deducted in computing the mining exploration depletion base of the predecessor; and for the purpose of computing the mining exploration depletion base of the predecessor as of any time after the transaction year of the predecessor, there shall be deducted the amount, if any, by which the mining exploration depletion base of the predecessor immediately after the time of acquisition (assuming for this purpose that, in the case of an acquisition as a result of an amalgamation described in section 87 of the Act, the predecessor existed after the time of acquisition and no property was acquired or disposed of in the course of the amalgamation) the amount, if any, deducted under subsection (1) in computing the income of the predecessor for the transaction year of the predecessor. [Repealed, SOR/91-79, s. 4] For greater certainty, where an expense incurred before a particular time is included in the aggregate calculated under subparagraph (2)(a)(i) in respect of a taxpayer and subsequent to the particular time any person becomes entitled to receive an amount of assistance (within the meaning assigned by paragraph 66(15)(a.1) of the Act) that is included in the aggregate calculated under subparagraph (2)(a)(ii), the stated percentage of the amount of assistance shall be included in the amounts referred to in subparagraph (2)(a)(ii) in respect of the taxpayer at the time the expense was incurred. For the purposes of this Part, gross resource profits of a taxpayer for a taxation year means the amount, if any, by which the total of the aggregate of amounts, if any, that would be included in computing the taxpayer’s income for the year by virtue of subsection 59(2) and paragraphs 59(3.2)(b) and 59.1(b) of the Act if subsection 59(2) were read without reference to subsection 64(1) therein, and the amount, if any, by which the amount included in computing his income for the year by virtue of paragraph 59(3.2)(c) of the Act exceeds the proceeds of disposition of property described in clause 66(15)(c)(ii)(A) of the Act that became receivable in the year or a preceding taxation year and after December 31, 1982 to the extent that such proceeds have not been deducted in determining the amount under this subparagraph for a preceding taxation year the aggregate of amounts, if any, deducted in computing his income for the year by virtue of paragraph 59.1(a) and subsections 64(1.1) and (1.2) of the Act, the amount, if any, of the aggregate of his incomes for the year from the production of petroleum, natural gas, related hydrocarbons or sulphur from oil or gas wells in Canada operated by the taxpayer, or natural accumulations (other than mineral resources) of petroleum or natural gas in Canada operated by the taxpayer, the production and processing in Canada of ore, other than iron ore or tar sands ore, from mineral resources in Canada operated by him to any stage that is not beyond the prime metal stage or its equivalent, iron ore from mineral resources in Canada operated by him to any stage that is not beyond the pellet stage or its equivalent, and tar sands ore from mineral resources in Canada operated by him to any stage that is not beyond the crude oil stage or its equivalent, the processing in Canada of ore, other than iron ore or tar sands ore, from mineral resources in Canada not operated by him to any stage that is not beyond the prime metal stage or its equivalent, iron ore from mineral resources in Canada not operated by him to any stage that is not beyond the pellet stage or its equivalent, and tar sands ore from mineral resources in Canada not operated by him to any stage that is not beyond the crude oil stage or its equivalent, ore, other than iron ore or tar sands ore, from mineral resources outside Canada to any stage that is not beyond the prime metal stage or its equivalent, iron ore from mineral resources outside Canada to any stage that is not beyond the pellet stage or its equivalent, and tar sands ore from mineral resources outside Canada to any stage that is not beyond the crude oil stage or its equivalent, the processing in Canada of heavy crude oil recovered from an oil or gas well in Canada to any stage that is not beyond the crude oil stage or its equivalent, and Canadian field processing, the total of all amounts (other than an amount included because of paragraph (b) in computing the taxpayer’s gross resource profits for the year) each of which is an amount included in computing the taxpayer’s income for the year as a rental or royalty computed by reference to the amount or value of production from a natural accumulation of petroleum or natural gas in Canada, an oil or gas well in Canada or a mineral resource in Canada, and if the taxpayer owns all the issued and outstanding shares of the capital stock of a railway company throughout the year, the amount that may reasonably be considered to be the railway company’s income for its taxation year ending in the year from the transportation of such of the taxpayer’s ore as is described in clause (b)(ii)(A), (B) or (C), exceeds the aggregate of the taxpayer’s losses for the year from the sources described in paragraph (b), where the taxpayer’s incomes and losses are computed in accordance with the Act on the assumption that the taxpayer had during the year no incomes or losses except from those sources and was allowed no deductions in computing the taxpayer’s income for the year other than amounts deductible under section 66 of the Act (other than amounts in respect of foreign exploration and development expenses) or subsection 17(2) or (6) or section 29 of the Income Tax Application Rules, for the year; the amounts deductible or deducted, as the case may be, under section 66.1, 66.2 (other than an amount that is in respect of a property described in clause 66(15)(c)(ii)(A) of the Act), 66.4, 66.5 or 66.7 (other than subsection (2) thereof) of the Act for the year; and any other deductions for the year that can reasonably be regarded as applicable to the sources of income described in paragraph (b) or (b.1), other than a deduction under paragraph 20(1)(ss) or (tt) of the Act or section 1201 or subsection 1202(2), 1203(1), 1207(1) or 1212(1). For the purposes of this Part, resource profits of a taxpayer for a taxation year means the amount, if any, by which the taxpayer’s gross resource profits for the year exceeds the total of all amounts deducted in computing the taxpayer’s income for the year other than an amount deducted in computing the taxpayer’s gross resource profits for the year, an amount deducted under any of section 8, paragraphs 20(1)(ss) and (tt), sections 60 to 64 and subsections 66(4), 66.7(2) and 104(6) and (12) of the Act and section 1201 and subsections 1202(2), 1203(1), 1207(1) and 1212(1) in computing the taxpayer’s income for the year, an amount deducted under section 66.2 of the Act in computing the taxpayer’s income for the year, to the extent that it is attributable to any right, licence or privilege to store underground petroleum, natural gas or related hydrocarbons in Canada, an amount deducted in computing the taxpayer’s income for the year from a business, or other source, that does not include any resource activity of the taxpayer, and an amount deducted in computing the taxpayer’s income for the year, to the extent that the amount relates to an activity that is not a resource activity of the taxpayer, and the production, processing, manufacturing, distribution, marketing, transportation or sale of any property, carried out for the purpose of earning income from property, or the rendering of a service by the taxpayer to another person for the purpose of earning income of the taxpayer, and does not relate to a resource activity of the taxpayer, all amounts each of which is the amount, if any, by which the amount that would have been charged to the taxpayer by a person or partnership with whom the taxpayer was not dealing at arm’s length if the taxpayer and that person or partnership had been dealing at arm’s length for the use after March 6, 1996 and in the year of a property (other than money) owned by that person or partnership, or for the provision after March 6, 1996 and in the year by that person or partnership of a service to the taxpayer exceeds the total of the amount charged to the taxpayer for the use of that property or the provision of that service in that period, and the portion of the amount described in subparagraph (i) that, if it had been charged, would not have been deductible in computing the taxpayer’s resource profits, and where the year ends after February 21, 1994, all amounts added under subsection 80(13) of the Act in computing the taxpayer’s gross resource profits for the year. For the purposes of paragraph (1.1)(b) and this subsection, a taxpayer is considered not to deal at arm’s length with a partnership where the taxpayer does not deal at arm’s length with any member of the partnership; a partnership is considered not to deal at arm’s length with another partnership where any member of the first partnership does not deal at arm’s length with any member of the second partnership; where a taxpayer is a member, or is deemed by this paragraph to be a member, of a partnership that is a member of another partnership, the taxpayer is deemed to be a member of the other partnership; and the provision of a service to a taxpayer does not include the provision of a service by an individual in the individual’s capacity as an employee of the taxpayer. For greater certainty, for the purposes of this section, in computing the income or loss of a trust for a taxation year from the sources described in paragraphs (1)(b) and (b.1), no deduction shall be made in respect of amounts deductible by the trust pursuant to subsection 104(6) or (12) of the Act. A taxpayer’s income or loss from a source described in paragraph (1)(b) does not include any income or loss derived from transporting, transmitting or processing (other than processing described in clause (1)(b)(ii)(C), (iii)(C) or (iv)(C) or subparagraph (1)(b)(v) or (vi)) petroleum, natural gas or related hydrocarbons or sulphur from a natural accumulation of petroleum or natural gas; any income or loss arising because of the application of paragraph 12(1)(z.1) or (z.2) or section 107.3 of the Act; and any income or loss that can reasonably be attributable to a service rendered by the taxpayer (other than processing described in subparagraph (1)(b)(iii), (iv), (v) or (vi) or activities carried out by the taxpayer as a coal mine operator). [Repealed, SOR/2007-19, s. 3] [Repealed, SOR/96-451, s. 2] For the purposes of this Part earned depletion base of a taxpayer as of a particular time means the amount by which 33 1/3 per cent of the aggregate of all amounts, in respect of expenditures (other than expenditures to acquire property under circumstances that entitled the taxpayer to a deduction under section 1202 or would so entitle the taxpayer if the amounts referred to in paragraphs 1202(2)(a) and (b) were sufficient for the purpose) incurred by the taxpayer after November 7, 1969 and before the particular time, each of which was a Canadian exploration and development expense or would have been such an expense if it had been incurred after 1971 and was actually incurred before May 7, 1974, other than a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian exploration expense or an exploration, prospecting and development expense, as the case may be, of the taxpayer, the cost to the taxpayer of any Canadian resource property acquired by the taxpayer, a Canadian exploration and development expense that was incurred after a mine had come into production in reasonable commercial quantities and may reasonably be considered to be related to the mine or to a potential or actual extension thereof, an expense that would have been described in clause (C) if it had been incurred after 1971, an expense renounced by the taxpayer under subsection 66(10) of the Act or subsection 29(7) of the Income Tax Application Rules, an amount that, by virtue of subparagraph 66(15)(b)(iv) of the Act, was a Canadian exploration and development expense or would have been such an expense if it had been incurred after 1971, if such amount was a cost or expense referred to in clause (A), (B), (C), (D) or (E) that was incurred by an association, partnership or syndicate referred to in that subparagraph, or an amount that, by virtue of subparagraph 66(15)(b)(v) of the Act, was a Canadian exploration and development expense or would have been such an expense if it had been incurred after 1971, if such amount was a cost or expense referred to in clause (A), (B), (C), (D) or (E) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph, the stated percentage of a Canadian exploration expense other than a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian exploration expense of the taxpayer, an expense renounced by the taxpayer under subsection 66(10.1) of the Act, an amount that, by virtue of subparagraph 66.1(6)(a)(iv) of the Act, was a Canadian exploration expense, if such amount was an expense referred to in clause (A), (B), (E), (F), (G) or (H) that was incurred by a partnership referred to in that subparagraph, an amount that, by virtue of subparagraph 66.1(6)(a)(v) of the Act, was a Canadian exploration expense, if such amount was an expense referred to in clause (A), (B), (E), (F), (G), or (H) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph, an amount described in clause 66.1(6)(a)(ii)(B) or (ii.1) (B) of the Act, an amount that was a Canadian oil and gas exploration expense of the taxpayer, or an expense described in subparagraph 66.1(6)(a)(iii) of the Act incurred after April 19, 1983, a Canadian development expense incurred before 1981 other than a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian development expense of the taxpayer, an expense renounced by the taxpayer under subsection 66(10.2) of the Act, an amount referred to in subparagraph 66.2(5)(a)(iii) of the Act, an amount that, by virtue of subparagraph 66.2(5)(a)(iv) of the Act, was a Canadian development expense, if such amount was an expense referred to in clause (A), (B) or (C) that was incurred by a partnership referred to in that subparagraph, or an amount that, by virtue of subparagraph 66.2(5)(a)(v) of the Act, was a Canadian development expense, if such amount was an expense referred to in clause (A), (B) or (C) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph, the stated percentage of the capital cost to the taxpayer of any processing property acquired by the taxpayer principally for the purpose of processing in Canada ore, other than iron ore or tar sands ore, from a qualified resource to any stage that is not beyond the prime metal stage or its equivalent, iron ore from a qualified resource to any stage that is not beyond the pellet stage or its equivalent, or tar sands ore from a qualified resource to any stage that is not beyond the crude oil stage or its equivalent, or ore, other than iron ore or tar sands ore, from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the prime metal stage or its equivalent, iron ore from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the pellet stage or its equivalent, or tar sands ore from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the crude oil stage or its equivalent, where the taxpayer is a corporation that incurred a Canadian oil and gas exploration expense in respect of conventional lands in a calendar year after 1980 and before 1984, the specified percentage for that year of such expense to the extent that it is not an amount or expense referred to in clause (ii)(A), (B) or (F) or an expense that would be referred to in clause (ii)(C) or (D) if the references in those clauses to “clause (A), (B), (E), (F), (G) or (H)” were read as “clause (A), (B) or (F)”, or where the taxpayer is a corporation, the specified percentage in respect of a Canadian oil and gas exploration expense in respect of non-conventional lands incurred in a calendar year after 1980 and before 1985 to the extent that it is not an amount or expense referred to in clause (ii)(A), (B) or (F) or an expense that would be referred to in clause (ii)(C) or (D) if the references in those clauses to “clause (A), (B), (E), (F), (G) or (H)” were read as “clause (A), (B) or (F)”, the stated percentage of a Canadian development expense incurred after 1980 in respect of a qualified tertiary oil recovery project of the taxpayer to the extent that such expense is not an amount or expense described in any of clauses (iii)(A) to (E), an amount that was a Canadian exploration and development overhead expense of the taxpayer, or an eligible expense within the meaning of the Canadian Exploration and Development Incentive Program Act in respect of which the taxpayer, a partnership of which the taxpayer was a member, a principal-business corporation of which the taxpayer was a shareholder or a joint exploration corporation of which the taxpayer was a shareholder corporation has received, is entitled to receive or may reasonably be expected to receive at any time an incentive under that Act, the stated percentage of a Canadian exploration expense incurred after 1981 in respect of a qualified tertiary oil recovery project of the taxpayer that would be referred to in subparagraph 66.1(6)(a)(ii) or (ii.1) of the Act if subparagraph 66.1(6)(a)(ii) were read without reference to clause (B) thereof, or would be referred to in subparagraph 66.1(6)(a)(iv) or (v) of the Act if the Act were read without reference to clause 66.1(6)(a)(ii)(B) and subparagraphs 66.1(6)(a)(i), (i.1), (ii.2), (iii) and (iii.1), other than the portion of such expense referred to in subclause (I) or (II) that is described in any of clauses (ii)(A) to (D) and (F), included in the amount determined under subparagraph (v) or clause (vi)(A), described in subclause (B)(III), or an eligible expense within the meaning of the Canadian Exploration Incentive Program Act in respect of which the taxpayer, a partnership of which the taxpayer was a member or a principal-business corporation of which the taxpayer was a shareholder corporation, has received, is entitled to receive or may reasonably be expected to receive at any time an incentive under that Act, the stated percentage of the capital cost to it of property that is tertiary recovery equipment, and the stated percentage of the capital cost to it of property that is, or but for Class 41 of Schedule II would be, included in Class 10 in Schedule II by virtue of paragraph (u) of the description of that Class, other than the capital cost to it of property that had, before the property was acquired by it, been used for any purpose whatever by any person with whom it was not dealing at arm’s length, all amounts, in respect of expenditures (other than expenditures referred to in paragraph (a) or expenditures to acquire property under circumstances that entitled the taxpayer to a deduction under section 1202 or would so entitle the taxpayer if the amounts referred to in paragraphs 1202(2)(a) and (b) were sufficient for the purpose) incurred by the taxpayer after May 8, 1972 and before the particular time, each of which was the stated percentage of the capital cost to the taxpayer of property that is or, but for Class 41, would be included in Class 10 in Schedule II because of paragraph (k) of the description of that Class and that was acquired for the purpose of processing in Canada ore (other than iron ore or tar sands ore), after its extraction from a mineral resource, to any stage that is not beyond the prime metal stage or its equivalent, iron ore, after its extraction from a mineral resource, to any stage that is not beyond the pellet stage or its equivalent, or tar sands ore, after its extraction from a mineral resource, to any stage that is not beyond the crude oil stage or its equivalent, other than the capital cost to him of property that had, before the property was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length, all amounts, in respect of expenditures (other than expenditures referred to in paragraph (a) or (b) or expenditures to acquire property under circumstances that entitled the taxpayer to a deduction under section 1202 or would so entitle the taxpayer if the amounts referred to in paragraphs 1202(2)(a) and (b) were sufficient for the purpose) incurred by the taxpayer before the particular time, each of which was the stated percentage of the capital cost to the taxpayer of property (other than property that had, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length) that is included in Class 28 or paragraph (a) of Class 41, in Schedule II, other than property so included by virtue of the first reference in Class 28 to paragraph (l) of Class 10 in Schedule II, where the property was acquired by the taxpayer before November 17, 1978, by virtue of the reference in Class 28 to paragraph (m) of Class 10 in Schedule II, that is bituminous sands equipment acquired by an individual, or that is bituminous sands equipment acquired by a corporation before 1981, all expenditures (other than expenditures referred to in paragraph (a), (b) or (c)) each of which was incurred by him before November 8, 1969 relating to a mine that came into production in reasonable commercial quantities before that date and that were incurred for the purpose of exploration in respect of, or development of the mine for the purpose of gaining or producing income from the extraction of material from, a bituminous sands deposit, an oil sands deposit or an oil shale deposit, three times the total of all amounts each of which is an amount equal to the lesser of the amount that would be determined under subsection 1210(1) in computing the taxpayer’s income for a taxation year that ends before the particular time, if the amount determined for C under that subsection were nil, and the amount determined for C under subsection 1210(1) in respect of the taxpayer for that year, and three times the aggregate of all amounts each of which is the specified amount determined under subsection 1202(4) in respect of the taxpayer for a taxation year ending after February 17, 1987 and before the particular time, all amounts deducted by the taxpayer under section 1201 in computing his income for all taxation years ending after May 6, 1974 and before the particular time; 33 1/3 per cent of the aggregate of all amounts, each of which is the stated percentage of a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was included in the capital cost to him of depreciable property described in subparagraph (a)(iv), clause (a)(vi)(C) or (D) or paragraph (b) or (c), or an expenditure described in paragraph (d); 33 1/3 per cent of the aggregate of all amounts, each of which is an amount that became receivable by the taxpayer after April 28, 1978 and before the earlier of December 12, 1979 and the particular time, and in respect of which the consideration given by the taxpayer therefor was a property (other than a share, or a property that would have been a Canadian resource property if it had been acquired by the taxpayer at the time the consideration was given) or services, the cost of which may reasonably be regarded as having been primarily an expenditure that was added in computing the taxpayer’s earned depletion base by reason of subparagraph (a)(i), (ii) or (iii) or paragraph (d), or the earned depletion base of an original owner of a property by reason of subparagraph (a)(i), (ii) or (iii) or paragraph (d) as it applied to the original owner, where the taxpayer acquired the property in circumstances in which subsection 1202(2) applies, 33 1/3 per cent of the aggregate of all amounts, each of which is an amount in respect of a disposition of property (other than a disposition of property that had been used by the taxpayer to any person with whom the taxpayer was not dealing at arm’s length) of the taxpayer after April 28, 1978 and before the earlier of December 12, 1979 and the particular time, the capital cost of which was added in computing the taxpayer’s earned depletion base by reason of subparagraph (a)(iv) or paragraph (b) or (c), or the earned depletion base of an original owner of a property by reason of subparagraph (a)(iv) or paragraph (b) or (c) as it applied to the original owner, where the taxpayer acquired the property in circumstances in which subsection 1202(2) applies, and equal to the lesser of the proceeds of disposition of the property, and the capital cost of the property to the taxpayer, where clause (i)(A) applies, or the original owner, where clause (i)(B) applies, computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, any amount required by paragraph 1202(2)(b) (as it read in its application to taxation years ending before February 18, 1987) or paragraph 1202(3)(a) to be deducted at or before the particular time in computing the taxpayer’s earned depletion base, 33 1/3 per cent of the aggregate of all amounts, each of which is in respect of an amount of assistance or benefit in respect of Canadian exploration expenses or Canadian development expenses or that may reasonably be related to Canadian exploration activities or Canadian development activities, whether such amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit that the taxpayer before the particular time has received or was entitled to receive, or that the taxpayer at or after the particular time becomes entitled to receive, or an original owner or predecessor owner of a property before the particular time has received or was entitled to receive, or at or after the particular time becomes entitled to receive, where the original owner or the predecessor owner received, became entitled to receive or becomes entitled to receive that amount at or after the time at which the property was acquired by the taxpayer in circumstances in which subsection 1202(2) applies, and before the time at which the taxpayer becomes a predecessor owner of the property, and that is equal to where the assistance or benefit was in respect of an amount added by reason of subparagraph (a)(ii) or clause (a)(vi)(B) or (B.1) in computing the earned depletion base of the taxpayer (other than such portion thereof included in determining an amount described in paragraph 1202(2)(a) before the particular time), or the portion of the earned depletion base of the original owner included in determining an amount described in paragraph 1202(2)(a) before the particular time, the stated percentage of the amount of the assistance or benefit, and where the assistance or benefit was in respect of an amount of Canadian oil and gas exploration expense added by reason of subparagraph (a)(v) or clause (a)(vi)(A) in computing the amount equal to the product obtained when the amount of the assistance or benefit is multiplied by the specified percentage in respect of the expense for the calendar year in which the taxpayer or the original owner, as the case may be, incurred the expense, and the aggregate of all amounts that would be determined under paragraphs 1212(3)(d) to (i) the aggregate of all amounts that would be determined under paragraphs 1212(3) (a) to (c) in computing his supplementary depletion base at the particular time. Where an expense is incurred before the particular time referred to in subsection (1) and a person at or after the particular time becomes entitled to receive an amount of assistance or benefit in respect of the expense, the amount of such assistance or benefit shall be included in “the amount of the assistance or benefit” referred to in subparagraphs (1)(j)(iii) and (iv) as of the particular time. In this Part, bituminous sands equipment means property of a taxpayer that is included in Class 28 or in paragraph (a) of Class 41 in Schedule II, other than property so included by virtue of the first reference in Class 28 to paragraph (l) of Class 10 in Schedule II, where the property was acquired by the taxpayer before November 17, 1978, or by virtue of the reference in Class 28 to paragraph (m) of Class 10 in Schedule II, and was acquired by the taxpayer after April 10, 1978 principally for the purpose of gaining or producing income from one or more mines, each of which is a location in a bituminous sands deposit, oil sands deposit or oil shale deposit from which material is extracted; (matériel d’exploitation de sables bitumineux) Canadian exploration and development overhead expense of a taxpayer means a Canadian exploration expense or a Canadian development expense of the taxpayer made or incurred after 1980 that is not a Canadian renewable and conservation expense (in this definition having the meaning assigned by subsection 66.1(6) of the Act) nor a taxpayer’s share of a Canadian renewable and conservation expense incurred by a partnership and that was in respect of the administration, management or financing of the taxpayer, that was in respect of the salary, wages or other remuneration or related benefits paid in respect of a person employed by the taxpayer whose duties were not all or substantially all directed towards exploration or development activities, that was in respect of the upkeep or maintenance of, taxes or insurance in respect of, or rental or leasing of, property other than property all or substantially all of the use of which by the taxpayer was for the purposes of exploration or development activities, or that may reasonably be regarded as having been in respect of the use of or the right to use any property in which any person who was connected with the taxpayer had an interest, compensation for the performance of a service for the benefit of the taxpayer by any person who was connected with the taxpayer, or the acquisition of any materials, parts or supplies from any person who was connected with the taxpayer to the extent that the expense exceeds the least of amounts, each of which was the aggregate of the costs incurred by a person who was connected with the taxpayer in respect of the property, in respect of the performance of the service, or in respect of the materials, parts or supplies; (frais généraux d’exploration et d’aménagement au Canada) Canadian oil and gas exploration expense, of a taxpayer, means an outlay or expense that is made or incurred after 1980 and that would be a Canadian exploration expense, as defined in subsection 66.1(6) of the Act, of the taxpayer (other than an outlay or expense in respect of a qualified tertiary oil recovery project that is a Canadian exploration expense of the taxpayer because of subparagraph (c)(ii) or (d)(ii) of that definition) if that definition were read without reference to its paragraphs (f) to (g.4), the reference in paragraph (h) of that definition to “any of paragraphs (a) to (d) and (f) to (g.4)” were read as “any of paragraphs (a) to (e)”, and the reference in paragraph (i) of that definition to “any of paragraphs (a) to (g)” were read as “any of paragraphs (a) to (e)”; (frais d’exploration pétrolière et gazière au Canada) coal mine operator means a person who undertakes all or substantially all of the activities involved in the production of coal from a resource; (exploitant de mine de charbon) conventional lands means lands situated in Canada other than non-conventional lands; (terres conventionnelles) disposition of property has the meaning assigned by paragraph 13(21)(c) of the Act; (disposition de biens) enhanced recovery equipment means property of a taxpayer that is included in Class 10 in Schedule II by virtue of paragraph (j) of the description of that Class, and was acquired by the taxpayer after April 10, 1978 and before 1981 for use in the production of oil, from a reservoir or a deposit of bituminous sand, oil sand or oil shale in Canada operated by the taxpayer, that is incremental to oil that would be recovered using primary recovery techniques alone, other than property used by the taxpayer as part of a primary recovery process prior to the use described in paragraph (b), that had, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length, or that has been used by any person before April 11, 1978 in the production of oil, from a reservoir in Canada, that is incremental to oil that would be recovered using primary recovery techniques alone; (matériel amélioré de récupération) exempt partnership[Repealed, SOR/2007-19, s.

4] exporting resource means, in relation to a particular processing property of a taxpayer, a resource the ore or any portion thereof produced from which during the year immediately preceding the day on which the property was acquired by the taxpayer was ordinarily processed outside Canada to any stage that is not beyond the prime metal stage or its equivalent; (ressource destinée à l’exportation) mine means any location where material is extracted from a resource but does not include a well for the extraction of material from a deposit of bituminous sand, oil sand or oil shale; (mine) non-conventional lands means lands that belong to Her Majesty in right of Canada, or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources, situated in the Yukon Territory, the Northwest Territories or Sable Island, or those submarine areas, not within a province, adjacent to the coast of Canada and extending throughout the natural prolongation of the land territory of Canada to the outer edge of the continental margin or to a distance of two hundred nautical miles from the baselines from which the breadth of the territorial sea of Canada is measured, whichever is the greater; (terres non conventionnelles) original owner of a property means a person who owned the property and disposed of it to a corporation that acquired it in circumstances in which subsection 1202(2) applies, or would apply if the corporation had continued to own the property, to the corporation in respect of the property, and who would, but for paragraph 1202(2)(b) (as it read in its application to taxation years ending before February 18, 1987) or paragraph 1202(3)(a), as the case may be, be entitled in computing the person’s income for a taxation year ending after the person disposed of the property to a deduction under section 1201 in respect of expenditures that were incurred by the person before the person disposed of the property; (propriétaire obligé) predecessor owner of a property means a corporation that acquired the property in circumstances in which subsection 1202(2) applies, or would apply if the corporation had continued to own the property, to the corporation in respect of the property, that disposed of the property to another corporation that acquired it in circumstances in which subsection 1202(2) applies, or would apply if the other corporation had continued to own the property, to the other corporation in respect of the property, and that would, but for subsection 1202(10), be entitled in computing its income for a taxation year after it disposed of the property to a deduction under subsection 1202(2) in respect of expenditures incurred by an original owner of the property; (propriétaire antérieur) primary recovery means the recovery of oil from a reservoir as a result of utilizing the natural energy of the reservoir to move the oil toward a producing well; (récupération primaire) proceeds of disposition of property has the meaning assigned by paragraph 13(21)(d) of the Act; (produit de la disposition) processing property means property that is included in Class 10 in Schedule II because of paragraph (g) of the description of that Class or would be so included if that paragraph were read without reference to subparagraph (ii) of that paragraph and Schedule II were read without reference to Class 41, or that is included in Class 10 in Schedule II because of paragraph (k) of the description of that Class or would be so included if that paragraph were read without reference to the words following subparagraph (ii) of that paragraph and Schedule II were read without reference to Class 41, other than property that had, before it was acquired by a taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length; (biens servant au traitement) production royalty[Repealed, SOR/2007-19, s. 4] qualified resource means, in relation to a particular processing property of a taxpayer, a resource that, within a reasonable time after the property was acquired by him, came into production in reasonable commercial quantities, or was the subject of a major expansion whereby the greatest designed capacity, measured in weight of input of ore, of the mill that processed ore from the resource was not less than 25% greater in the year immediately following the expansion than it was in the year immediately preceding the expansion; (ressource admissible) qualified tertiary oil recovery project in respect of an expense incurred in a taxation year means a project that uses a method (including a method that uses carbon dioxide miscible, hydrocarbon miscible, thermal or chemical processes but not including a secondary recovery method) that is designed to recover oil from an oil well in Canada that is incremental to oil that would be recovered therefrom by primary recovery and a secondary recovery method, if a specified royalty provision applies in the year or in the immediately following taxation year in respect of the production, if any, or any portion thereof from the project or in respect of the ownership of property to which such production relates, the project is on a reserve within the meaning of the Indian Act, or the project is located in the Province of Ontario; (projet qualifié de récupération tertiaire du pétrole) resource means any mineral resource in Canada; (ressource) resource activity of a taxpayer means the production by the taxpayer of petroleum, natural gas or related hydrocarbons or sulphur from an oil or gas well in Canada, or a natural accumulation (other than a mineral resource) of petroleum or natural gas in Canada, the production and processing in Canada by the taxpayer or the processing in Canada by the taxpayer of ore (other than iron ore or tar sands ore) from a mineral resource in Canada to any stage that is not beyond the prime metal stage or its equivalent, iron ore from a mineral resource in Canada to any stage that is not beyond the pellet stage or its equivalent, and tar sands ore from a mineral resource in Canada to any stage that is not beyond the crude oil stage or its equivalent, the processing in Canada by the taxpayer of heavy crude oil recovered from an oil or gas well in Canada to any stage that is not beyond the crude oil stage or its equivalent, Canadian field processing carried on by the taxpayer, the processing in Canada by the taxpayer of ore (other than iron ore or tar sands ore) from a mineral resource outside Canada to any stage that is not beyond the prime metal stage or its equivalent, iron ore from a mineral resource outside Canada to any stage that is not beyond the pellet stage or its equivalent, and tar sands ore from a mineral resource outside Canada to any stage that is not beyond the crude oil stage or its equivalent, or the ownership by the taxpayer of a right to a rental or royalty computed by reference to the amount or value of production from a natural accumulation of petroleum or natural gas in Canada, an oil or gas well in Canada or a mineral resource in Canada, and, for the purposes of this definition, the production of a substance by a taxpayer includes exploration and development activities of the taxpayer with respect to the substance, whether or not extraction of the substance has begun or will ever begin, the production or the processing, or the production and processing, of a substance by a taxpayer includes activities performed by the taxpayer that are ancillary to, or in support of, the production or the processing, or the production and processing, of that substance by the taxpayer, the production or processing of a substance by a taxpayer includes an activity (including the ownership of property) that is undertaken before the extraction of the substance and that is undertaken for the purpose of extracting or processing the substance, the production or the processing, or the production and processing, of a substance by a taxpayer includes activities that the taxpayer undertakes as a consequence of the production or the processing, or the production and processing, of that substance, whether or not the production, the processing or the production and processing of the substance has ceased, and notwithstanding paragraphs (a) to (i), the production, the processing or the production and processing of a substance does not include any activity of a taxpayer that is part of a source described in paragraph 1204(1)(b), where the activity is the transporting, transmitting or processing (other than processing described in subparagraph (b)(iii), paragraph (c) or (c.1) or subparagraph (d)(iii)) of petroleum, natural gas or related hydrocarbons or of sulphur, or can reasonably be attributed to a service rendered by the taxpayer, and revenues derived from the activity are not taken into account in computing the taxpayer’s gross resource profits; (activité extractive) secondary recovery method means a method to recover from a reservoir oil that is incremental to oil that would be recovered therefrom by primary recovery, by supplying energy to supplement or replace the natural energy of the reservoir through the use of technically proven methods, including waterflooding; (méthode de récupération secondaire) specified development well[Repealed, SOR/85-174, s. 7] specified percentage for a calendar year in respect of a Canadian oil and gas exploration expense of a taxpayer for that year incurred in respect of conventional lands means, for the 1981 calendar year, 100 per cent, for the 1982 calendar year, 60 per cent, and for the 1983 calendar year, 30 per cent, and in respect of a Canadian oil and gas exploration expense of a taxpayer for that year incurred in respect of non-conventional lands means, for the 1981 and 1982 calendar years, 100 per cent, for the 1983 calendar year, 60 per cent, and for the 1984 calendar year, 30 per cent; (pourcentage désigné) specified property of a person means all or substantially all of the property used by the person in carrying on in Canada such of the businesses described in subparagraphs 66(15)(h)(i) to (vii) of the Act as were carried on by the person; (biens déterminés) specified royalty[Repealed, SOR/2007-19, s. 4] stated percentage means where the taxpayer is an individual other than a trust, in respect of subparagraph 1203(2)(a)(i), 100 per cent in respect of an expenditure incurred before 1989, 50 per cent in respect of an expenditure incurred after 1988 and before 1990, and 0 per cent in respect of an expenditure incurred after 1989, in respect of subparagraph 1203(2)(a)(i) (where paragraph (a) is not applicable) and paragraphs 1205(1)(a), (b), (c) and (f) 100 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital before July 1, 1988, 50 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital after June 30, 1988 and before 1990, and 0 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital after 1989, where the taxpayer is an individual other than a trust, in respect of subparagraph 1203(2)(a)(ii) and subsection 1203(4), 100 per cent in respect of any assistance that relates to expenditures incurred before 1989, 50 per cent in respect of any assistance that relates to expenditures incurred after 1988 and before 1990, and 0 per cent in respect of any assistance that relates to expenditures incurred after 1989, and in respect of subparagraph 1203(2)(a)(ii) (if paragraph (c) is not applicable), subsection 1203(4) (if paragraph (c) is not applicable) and subparagraph 1205(1)(j)(iii), 100 per cent in respect of any assistance or benefit that relates to expenditures incurred before July 1, 1988, 50 per cent in respect of any assistance or benefit that relates to expenditures incurred after June 30, 1988 and before 1990, and 0 per cent in respect of any assistance or benefit that relates to expenditures incurred after 1989; (pourcentage indiqué) tar sands ore means ore extracted, other than through a well, from a mineral resource that is a deposit of bituminous sand, oil sand or oil shale; (minerai de sables asphaltiques) tertiary recovery equipment means property of a taxpayer that is, or but for Class 41 in Schedule II would be, included in Class 10 in Schedule II by virtue of paragraph (j) of the description of that Class, was acquired by the taxpayer after 1980 for use in a qualified tertiary oil recovery project, used by the taxpayer for another use prior to the use described in paragraph (b), or that had, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length. (matériel de récupération tertiaire) In this Part, joint exploration corporation, principal-business corporation, production from a Canadian resource property, reserve amount and shareholder corporation have the meanings assigned by subsection 66(15) of the Act. For the purposes of sections 1201 to 1209 and 1212, where at the end of a fiscal period of a partnership, a taxpayer was a member thereof the resource profits of the partnership for the fiscal period, to the extent of the taxpayer’s share thereof, shall be included in computing his resource profits for his taxation year in which the fiscal period ended; any property acquired or disposed of by the partnership shall be deemed to have been acquired or disposed of by the taxpayer to the extent of his share of thereof; any property deemed by paragraph (b) to have been acquired or disposed of by the taxpayer shall be deemed to have been acquired or disposed of by him on the day the property was acquired or disposed of by the partnership; any amount that has become receivable by the partnership and in respect of which the consideration given by the partnership therefor was property (other than property referred to in paragraph 59(2)(a), (c) or (d) of the Act or a share or interest therein or right thereto) or services, all or part of the original cost of which to the partnership may reasonably be regarded primarily as an exploration or development expense of the taxpayer, shall be deemed to be an amount receivable by the taxpayer to the extent of his share thereof, and the consideration so given by the partnership shall, to the extent of the taxpayer’s share thereof, be deemed to have been given by the taxpayer for the amount deemed to be receivable by him; any expenditure incurred or deemed to have been incurred by the partnership shall be deemed to have been incurred by the taxpayer to the extent of the taxpayer’s share thereof; and any amount or expenditure deemed by paragraph (d) or (e) to have been receivable or incurred, as the case may be, by the taxpayer shall be deemed to have become receivable or been incurred, as the case may be, by the taxpayer on the day the amount became receivable or the expenditure was incurred or deemed to have been incurred by the partnership. For the purposes of sections 1201 to 1203, 1205, 1217 and 1218, where a taxpayer was a member of a partnership at the end of a fiscal period of the partnership, the taxpayer shall be deemed to receive or to become entitled to receive any amount of assistance or benefit, whether such amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit, that the partnership at any time receives or becomes entitled to receive in respect of expenses incurred in that fiscal period of the partnership, to the extent of, where the partnership in the fiscal period receives or becomes entitled to receive the amount, the taxpayer’s share thereof, or where the partnership after the fiscal period becomes entitled to receive the amount, what would have been the taxpayer’s share thereof if the partnership had in the fiscal period received or become entitled to receive the amount, and the time at which the taxpayer is deemed to receive or become entitled to receive such share of the amount shall be the time that the partnership receives or becomes entitled to receive the amount. Where an expense incurred after November 7, 1969 that was a Canadian exploration and development expense or that would have been such an expense if it had been incurred after 1971 (other than an amount included therein that is in respect of financing or the cost of any Canadian resource property acquired by a joint exploration corporation or any property acquired by a joint exploration corporation that would have been a Canadian resource property if it had been acquired after 1971), a Canadian exploration expense (other than an amount included therein that is in respect of financing) or a Canadian development expense (other than an amount included therein that is in respect of financing or an amount referred to in subparagraph 66.2(5)(a)(iii) of the Act) has been renounced in favour of a taxpayer and was deemed to be an expense of the taxpayer for the purposes of subsection 66(10), (10.1) or (10.2) of the Act or subsection 29(7) of the Income Tax Application Rules, the expense shall for the purposes of sections 1203 and 1205, be deemed to have been such an expense incurred by the taxpayer at the time the expense was incurred by the joint exploration corporation; and for the purposes of sections 1204 and 1210 and paragraphs 1217(2)(e) and 1218(2)(e), be deemed to have been such an expense incurred by the taxpayer at the time it was deemed to have been incurred by the taxpayer for the purposes of subsection 66(10), (10.1) or (10.2) of the Act or subsection 29(7) of the Income Tax Application Rules, as the case may be. An expense that is a Canadian exploration and development overhead expense of the joint exploration corporation referred to in subsection (4), or would be such an expense if the references to “connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “connected with the shareholder corporation in favour of whom the expense was renounced for the purposes of subsection 66(10.1) or (10.2) of the Act”, that may reasonably be considered to be included in a Canadian exploration expense or Canadian development expense that is deemed by subsection (4) to be a Canadian exploration expense or Canadian development expense of the shareholder corporation, shall be deemed to be a Canadian exploration and development overhead expense of the shareholder corporation incurred by it at the time the expense was deemed by subsection (4) to have been incurred by it and shall be deemed at and after that time not to be a Canadian exploration and development overhead expense incurred by the joint exploration corporation. For the purposes of paragraphs 66(12.6)(b), (12.601)(d) and (12.62)(b) of the Act, a prescribed Canadian exploration and development overhead expense of a corporation is a Canadian exploration and development overhead expense of the corporation; an expense that would be a Canadian exploration and development overhead expense of the corporation if the references to “connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “connected with the person to whom the expense is renounced under subsection 66(12.6), (12.601) or (12.62) of the Act”; and an expense that would be a Canadian exploration and development overhead expense of the corporation if the references to “person who was connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “person to whom the expense is renounced under subsection 66(12.6), (12.601) or (12.62) of the Act”. For the purposes of subsections (4.2) and (5), a partnership shall be deemed to be a person and its taxation year shall be deemed to be its fiscal period. For the purposes of subsection (6) and the definition Canadian exploration and development overhead expense in subsection (1), a person and a particular corporation are connected with each other if the person and the particular corporation are not dealing at arm’s length, the person has an equity percentage in the particular corporation that is not less than 10 per cent, or the person is a corporation in which another person has an equity percentage that is not less than 10 per cent and the other person has an equity percentage in the particular corporation that is not less than 10 per cent; a person and another person that is not a corporation are connected with each other if they are not dealing at arm’s length; and “costs incurred by a person” shall not include an outlay or expense described in any of paragraphs (a) to (c) of that definition made or incurred by the person if the references in those paragraphs to “taxpayer” were read as references to “person”, an outlay or expense made or incurred by the person to the extent that it is not reasonably attributable to the use of a property by, the performance of a service for, or any materials, parts, or supplies acquired by, the taxpayer referred to in that definition, and an amount in respect of the capital cost to the person of a property, other than, where the property is a depreciable property of the person, that proportion of the capital allowance of the person for his taxation year in respect of the property that may reasonably be considered attributable to the use of the property by, or in the performance of a service for, the taxpayer referred to in that definition. For the purpose of subparagraph (5)(b)(iii), the capital allowance of a person (in this subsection referred to as the “owner”) for his taxation year in respect of a property owned by him means that proportion of an amount not exceeding 20 per cent of the amount that is in the case of a property owned by the owner on December 31, 1980, the lesser of the capital cost of the property to the owner computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, and the fair market value of the property on December 31, 1980, in the case of a property acquired by the owner after December 31, 1980 that was previously owned by a person connected with the owner, the lesser of the capital cost of the property, computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, to the person, who was connected with the owner, who was the first person to acquire the property from a person with whom the owner was not connected, and the fair market value of the property at the time it was acquired by the owner, and in any other case, the capital cost of the property to the owner computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that the number of days in the taxation year during which the property was owned by the owner is of 365. For the purposes of paragraph (5)(a), equity percentage has the meaning assigned by paragraph 95(4)(b) of the Act. For the purposes of the definition qualified tertiary oil recovery project in subsection (1), a specified royalty provision means: the Experimental Project Petroleum Royalty Regulation of Alberta (Alta. Reg. 36/79); The Experimental Oil Sands Royalty Regulations of Alberta (Alta. Reg. 287/77); section 4.2 of the Petroleum Royalty Regulations of Alberta (Alta. Reg. 93/74); section 58A of the Petroleum and Natural Gas Regulations, 1969 of Saskatchewan (Saskatchewan Regulation 8/69); section 204 of The Freehold Oil And Gas Production Tax Regulations, 1983 of Saskatchewan (Saskatchewan Regulation 11/83); item 9 of section 2 of the Petroleum and Natural Gas Royalty Regulations of British Columbia (B.C. Reg. 549/78); the Freehold Mineral Taxation Act of Alberta; the Freehold Mineral Rights Tax Act of Alberta; Order in Council 427/84 pursuant to section 9(a) of the Mines and Minerals Act of Alberta; Order in Council 966/84 pursuant to section 9 of the Mines and Minerals Act of Alberta; or Order in Council 870/84 pursuant to section 9 of the Mines and Minerals Act of Alberta. For the purpose of paragraph (a) of the definition qualified tertiary oil recovery project in subsection (1), a specified royalty provision is deemed to apply as of a particular time if, at the particular time, unconditional approval for the specified royalty provision to apply at a time after the particular time is given by Her Majesty in right of Canada or of a province; an agent of Her Majesty in right of Canada or of a province; or a corporation, a commission or an association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province. [Repealed, SOR/2007-19, s. 4] A taxpayer may deduct in computing his income for a taxation year such amount as he may claim not exceeding the lesser of his income for the year, computed in accordance with Part I of the Act, if no deduction were allowed under this subsection; and his frontier exploration base as of the end of the year (before making any deduction under this subsection for the year). For the purposes of this section, frontier exploration base of a taxpayer as of a particular time means the amount by which the aggregate of the aggregate of all amounts, each of which is an amount in respect of a particular oil or gas well in Canada equal to 66 2/3 per cent of the amount by which expenses incurred after March, 1977 and before April, 1980 and before the particular time in respect of the well (other than expenses that may reasonably be regarded as having been incurred as consideration for services rendered to the taxpayer after March, 1980) if those expenses would be included in the Canadian exploration expense of the taxpayer within the meaning of paragraph 66.1(6)(a) of the Act (if that paragraph were read without reference to subparagraphs (iii) and (iii.1) thereof and without reference to the words “within six months after the end of the year, the drilling of the well is completed and” in subparagraph (ii) thereof, and if the reference in subparagraphs (iv) and (v) thereof to “any of subparagraphs (i) to (iii.1)” were read as a reference to “subparagraph (i) or (ii)”) other than an amount that, by virtue of subparagraph 66.1(6)(a)(iv) of the Act, was a Canadian exploration expense, if such amount was an expense referred to in clause (A) or (B) that was incurred by a partnership referred to in that subparagraph, or an amount that, by virtue of subparagraph 66.1(6)(a)(v) of the Act, was a Canadian exploration expense, if such amount was an expense referred to in clause (A) or (B) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph, the taxpayer’s threshold amount in respect of the well, minus the amount that would be determined under subparagraph (i) in respect of the taxpayer for the well if the reference therein to “after March, 1977 and before April, 1980” were read as “after June, 1976 and before April, 1977”, and where the taxpayer is a successor corporation, any amount required by paragraph (7)(a) to be added before the particular time in computing the taxpayer’s frontier exploration base, all amounts deducted by the taxpayer under subsection (1) in computing his income for taxation years ending before the particular time, 66 2/3 per cent of the aggregate of all amounts, each of which is an amount that became receivable by the taxpayer after March 28, 1979 and before the earlier of December 12, 1979 and the particular time, and in respect of which the consideration given by the taxpayer therefor was a property (other than a share, or a property that would have been a Canadian resource property if it had been acquired by the taxpayer at the time the consideration was given) or services the cost of which may reasonably be regarded as having been primarily an expenditure in respect of an oil or gas well for which an amount was added in computing the taxpayer’s frontier exploration base by virtue of paragraph (a) or in computing the frontier exploration base of a predecessor by virtue of paragraph (a) as it applied to the predecessor where the taxpayer is a successor corporation to the predecessor, as the case may be; and where the taxpayer is a predecessor, any amount required by paragraph (7)(b) to be deducted before the particular time in computing the taxpayer’s frontier exploration base. For the purposes of subparagraph (2)(a)(ii), a taxpayer’s threshold amount in respect of an oil or gas well means where the taxpayer and one or more other persons have filed an agreement with the Minister in prescribed form in respect of the well and the amount allocated to each such person in the agreement does not exceed the amount that would be determined, at the time the agreement is filed, under subparagraph (2)(a)(i) in respect of that person for the well, if the reference in that subparagraph to “March, 1977” were read as “June, 1976”, and the aggregate of the amounts allocated by the agreement is $5 million, the amount allocated to the taxpayer in the agreement, but if no amount is allocated to the taxpayer in the agreement, nil; where such an agreement has been filed in respect of the well by one or more persons other than the taxpayer, nil; or where no such agreement has been filed in respect of the well, $5 million. Where as a result of mechanical or geological difficulties the drilling of a particular oil or gas well does not achieve its stated geological objectives under the drilling authority issued by the relevant government body and a further well, including a relief well, is drilled on the same geological formation and may reasonably be regarded as a continuation of or a substitution for the particular oil or gas well, the expenses in respect of the drilling of the further well shall, for the purposes of this section, be deemed to be expenses in respect of the drilling of the particular oil or gas well. when a shareholder corporation is deemed to have incurred a Canadian exploration expense by virtue of an election made by a joint exploration corporation pursuant to subsection 66(10.1) of the Act, that expense shall be deemed to have been incurred by the shareholder corporation at the time when it was incurred by the joint exploration corporation; and when a member of a partnership is deemed to have incurred a Canadian exploration expense by virtue of subparagraph 66.1(6)(a)(iv) of the Act, that expense shall be deemed to have been incurred by the member at the time when it was incurred by the partnership. For the purposes of this section, oil or gas well means any well drilled for the purpose of producing petroleum or natural gas or of determining the existence, location, extent or quality of an accumulation of petroleum or natural gas, other than a mineral resource. for the purpose of computing the frontier exploration base of the successor corporation as of any time after the time of acquisition, there shall be added an amount equal to the amount required by paragraph (b) to be deducted in computing the frontier exploration base of the predecessor; and for the purpose of computing the frontier exploration base of the predecessor as of any time after the transaction year of the predecessor, there shall be deducted the amount, if any, by which the frontier exploration base of the predecessor immediately after the time of acquisition (assuming for this purpose that, in the case of an acquisition as a result of an amalgamation described in section 87 of the Act, the predecessor existed after the time of acquisition and no property was acquired or disposed of in the course of the amalgamation) [Repealed, SOR/91-79, s. 8] Subject to subsections (3) and (4) where a taxpayer has income for a taxation year from an oil or gas well that is outside Canada, or where an individual has income for a taxation year from an oil or gas well in Canada, in computing his income for the year he may deduct the lesser of the aggregate of drilling costs incurred by him in that year and previous taxation years in respect of the well (not including the cost of land, leases or other rights and not including indirect expenses such as general exploration, geological and geophysical expenses) minus the aggregate of all amounts deductible in respect thereof in computing his income for previous years; and that part of his income for the year that may reasonably be regarded as income from the well. Where a taxpayer has more than one oil or gas well to which subsection (1) applies, the allowance in respect of the drilling costs of each well shall be computed separately. Where an individual has income for a taxation year from an oil or gas well in Canada, no deduction may be made under this section in computing such income in respect of drilling costs of that well incurred after April 10, 1962. Where a taxpayer has income for a taxation year from an oil or gas well that is outside Canada, no deduction may be made under this section in computing such income in respect of drilling costs of that well incurred after 1971. Subject to subsection (3), where a taxpayer operates in Canada a mine for the production of materials from a resource he may deduct, in computing his income for a taxation year, such amount as he may claim not exceeding 25 per cent of the amount computed under subsection (2). The amount referred to in subsection (1) is the aggregate of all expenditures made or incurred by the taxpayer before 1972 that are reasonably attributable to the prospecting and exploration for and the development of the mine prior to the coming into production of the mine in reasonable commercial quantities, except to the extent that the expenditures were expenditures in respect of which a deduction from, or in computing, a taxpayer’s income tax or excess profits tax was provided by section 8 of the Income War Tax Act; expenditures in respect of which an amount was deducted in computing a taxpayer’s income under section 16 of chapter 63, S.C., 1947 or section 16 of chapter 53, S.C., 1947-48 or, if the expenditure was incurred prior to 1953, under section 53 of chapter 25, S.C., 1949 (Second Session); expenditures incurred after 1952 in respect of which a deduction was or is provided by section 53 of chapter 25, S.C., 1949 (Second Session), section 83A of the Act as it read in its application to the 1971 taxation year or section 29 of the Income Tax Application Rules, expenditures deducted in computing the income of the taxpayer in the year they were incurred; the cost to the taxpayer of property in respect of which an allowance is provided under paragraph 20(1)(a) of the Act; or the cost to the taxpayer of a leasehold interest. The amount deductible under subsection (1) shall not exceed the amount computed under subsection (2) minus the aggregate of amounts deducted under subsection (1) in computing the income of the taxpayer for previous taxation years; and similar amounts deducted in computing the income of the taxpayer for the purposes of the Income War Tax Act and The 1948 Income Tax Act (as defined in paragraph 12(d) of the Income Tax Application Rules). [Repealed, SOR/2007-19, s. 5] [Repealed, SOR/2007-19, s. 6] In computing a taxpayer’s income for a taxation year there may be deducted where the taxpayer is a corporation, such amount as it may claim not exceeding the lesser of 50 per cent of its income for the year, computed in accordance with Part I of the Act without reference to paragraphs 59(3.3)(c) and (d) thereof, if no deduction were allowed under this subsection or subsection 1207(1), and the amount, if any, included in its income for the year by virtue of paragraphs 59(3.3)(c) and (d) of the Act, and its supplementary depletion base as of the end of the year (before making any deduction under this subsection for the year); and where the taxpayer is not a corporation, such amount as he may claim not exceeding the lesser of 25 per cent of the amount, if any, by which his resource profits for the year exceed four times the amount, if any, deducted by virtue of subparagraph 1201(a)(i) in computing his income for the year, and the amount, if any, included in his income for the year by virtue of paragraphs 59(3.3)(c) and (d) of the Act, and his supplementary depletion base as of the end of the year (before making any deduction under this subsection for the year). For the purpose of computing the supplementary depletion base of a corporation, where, after the corporation last ceased to carry on active business, control of the corporation is considered, for the purposes of subsection 66(11) of the Act, to have been acquired by a person or persons who did not control the corporation at the time when it so ceased to carry on active business, the amount by which the supplementary depletion base of the corporation at the time it last ceased to carry on active business exceeds the aggregate of amounts otherwise deducted under subsection (1) in computing its income for taxation years ending after that time and before control was so acquired, shall be deemed to have been deducted under subsection (1) by the corporation in computing its income for taxation years ending before control was so acquired. For the purposes of this section, supplementary depletion base of a taxpayer as of a particular time means the amount by which the aggregate of 50 per cent of the aggregate of all expenditures each of which was incurred by him before the particular time and each of which was the capital cost to him of property that is enhanced recovery equipment, 33 1/3 per cent of the aggregate of all expenditures each of which was incurred by him before the particular time and each of which was the capital cost to him of property (other than property that had, before it was acquired by him, been used for any purpose whatever by any person with whom he was not dealing at arm’s length) that is bituminous sands equipment acquired by him before 1981, and where the taxpayer is a successor corporation, any amount required by paragraph (4)(a) to be added before the particular time in computing the taxpayer’s supplementary depletion base, 50 per cent of the aggregate of all amounts, each of which is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, included in the capital cost to him of depreciable property described in paragraph (a); 33 1/3 per cent of the aggregate of all amounts, each of which is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, included in the capital cost to him of depreciable property described in paragraph (b); 50 per cent of the aggregate of all amounts, each of which is an amount in respect of a disposition of property (other than a disposition of property, that had been used by the taxpayer, to any person with whom the taxpayer was not dealing at arm’s length) of the taxpayer before the earlier of December 12, 1979 and the particular time, the capital cost of which was added in computing the taxpayer’s supplementary depletion base by virtue of paragraph (a) or in computing the supplementary depletion base of a predecessor by virtue of paragraph (a) as it applied to the predecessor where the taxpayer is a successor corporation to the predecessor, as the case may be, and each of which is the amount that is equal to the lesser of the capital cost of the property to the taxpayer or the predecessor, as the case may be, computed as if no amount had been included therein that is a cost of borrowing capital, including a cost incurred prior to the commencement of carrying on a business; 33 1/3 per cent of the aggregate of all amounts, each of which is an amount in respect of a disposition of property (other than a disposition of property, that had been used by the taxpayer, to any person with whom the taxpayer was not dealing at arm’s length) of the taxpayer before the earlier of December 12, 1979 and the particular time, the capital cost of which was added in computing the taxpayer’s supplementary depletion base by virtue of paragraph (b) or in computing the supplementary depletion base of a predecessor by virtue of paragraph (b) as it applied to the predecessor where the taxpayer is a successor corporation to the predecessor, as the case may be, and each of which is the amount that is equal to the lesser of the capital cost of the property to the taxpayer or the predecessor, as the case may be, computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business; and where the taxpayer is a predecessor, any amount required by paragraph (4)(b) to be deducted before the particular time in computing the taxpayer’s supplementary depletion base. for the purpose of computing the supplementary depletion base of the successor corporation as of any time after the time of acquisition, there shall be added an amount equal to the amount required by paragraph (b) to be deducted in computing the supplementary depletion base of the predecessor; and for the purpose of computing the supplementary depletion base of the predecessor as of any time after the transaction year of the predecessor, there shall be deducted the amount, if any, by which the supplementary depletion base of the predecessor immediately after the time of acquisition (assuming for this purpose that, in the case of an acquisition as a result of an amalgamation described in section 87 of the Act, the predecessor existed after the time of acquisition and no property was acquired or disposed of in the course of the amalgamation) [Repealed, SOR/91-79, s. 10] For the purposes of subparagraph 66.1(2)(a)(ii) of the Act, prescribed deduction in respect of a corporation for a taxation year means an amount deducted under subsection 1202(2) by the corporation in computing its income for the year. Where a particular corporation amalgamates with another corporation to form a new corporation, or the assets of a subsidiary are transferred to its parent corporation on the winding-up of the subsidiary, and subsection 87(1.2) or 88(1.5) of the Act is applicable to the new corporation or the parent corporation, as the case may be, the new corporation or the parent corporation, as the case may be, shall be deemed to be the same corporation as, and a continuation of, the particular corporation or the subsidiary, as the case may be, for the purposes of computing the mining exploration depletion base (within the meaning assigned by subsection 1203(2)), the earned depletion base, the frontier exploration base (within the meaning assigned by subsection 1207(2)) and the supplementary depletion base (within the meaning assigned by subsection 1212(3)) of the new corporation or the parent corporation, as the case may be; and determining the amounts, if any, that may be deducted under subsection 1202(2) in computing the income of the new corporation or the parent corporation, as the case may be, for a particular taxation year. Where there has been an amalgamation (within the meaning assigned by subsection 87(1) of the Act) of two or more particular corporations to form one corporate entity, that entity shall be deemed to be the same corporation as, and a continuation of, each of the particular corporations for the purposes of subsection 1202(9). Where a taxable Canadian corporation (in this subsection referred to as the “subsidiary”) has been wound up in circumstances in which subsection 88(1) of the Act applies in respect of the subsidiary and another taxable Canadian corporation (in this subsection referred to as the “parent”), the parent shall be deemed to be the same corporation as, and a continuation of, the subsidiary for the purposes of subsection 1202(9). [Repealed, SOR/90-733, s. 7] For the purpose of subsection 208(1) of the Act, a person described in any of paragraphs 149(1)(d) to (d.6) of the Act is a prescribed person. For the purposes of subsection 66(14.1) of the Act, the prescribed Canadian exploration expense of a corporation for a taxation year is the amount, if any, by which its total specified exploration expenses for the year exceed its total exploration assistance for the year. For the purposes of subsection (1), the total specified exploration expenses of a particular corporation for a particular taxation year are the aggregate of all expenses (other than expenses referred to in paragraph (b) or (c)) that are described in any of subparagraphs 66.1(6)(a)(i) to (ii) of the Act and that were incurred by the particular corporation in the particular year and after March 1985 and before October 1986, where the particular corporation is a shareholder corporation of a joint exploration corporation, all expenses described in any of subparagraphs 66.1(6)(a)(i) to (ii) of the Act that were incurred by the joint exploration corporation after March 1985 and before October 1986 and in the taxation year of the joint exploration corporation ending in the particular year and that were deemed under paragraph 66(10.1)(c) of the Act to be Canadian exploration expenses incurred by the particular corporation in the particular year, and all expenses that would be described in subparagraph 66.1(6)(a)(iv) or (v) of the Act if the references in those subparagraphs to “any of subparagraphs (i) to (iii.1) incurred” were read as “any of subparagraphs (i) to (ii) incurred after March 1985 and before October 1986” and that were incurred by the particular corporation in the particular year or by a partnership in a fiscal period of the partnership that ended in the particular year if, at the end of that fiscal period, the particular corporation was a member of the partnership, other than expenses renounced by the corporation at any time under subsection 66(10.1) or (12.6) of the Act, Canadian exploration and development overhead expenses of the corporation or of a partnership of which the corporation was a member, or expenses incurred or deemed to have been incurred by the corporation in a period during which it was exempt from tax on its taxable income under Part I of the Act. For the purposes of subsection (1), the total exploration assistance of a corporation for a taxation year is the aggregate of all amounts each of which is an amount of assistance or benefit that the corporation has received or is entitled to receive in the year from a government, municipality or other public authority in respect of an expense that is included in its total specified exploration expenses for the year by virtue of paragraph (2)(a) or (c), whether such amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit. For the purposes of subsection 66(14.2) of the Act, prescribed Canadian development expense of a corporation for a taxation year is the amount, if any, by which its total specified development expenses for the year exceed its total development assistance for the year.

For the purposes of subsection (1), the total specified development expenses of a particular corporation for a particular taxation year is the aggregate of all expenses (other than expenses referred to in paragraph (b) or (c)) that are described in subparagraph 66.2(5)(a)(i) or (i.1) of the Act and that were incurred by the corporation in the particular year and after March 1985 and before October 1986, where the particular corporation is a shareholder corporation of a joint exploration corporation, all expenses that are described in subparagraph 66.2(5)(a)(i) or (i.1) of the Act, that were incurred by the joint exploration corporation after March 1985 and before October 1986 and in the taxation year of the joint exploration corporation ending in the particular year and that were deemed under paragraph 66(10.2)(c) of the Act to be Canadian development expenses incurred by the particular corporation in the particular year, and all expenses that would be described in subparagraph 66.2(5)(a)(iv) or (v) of the Act if the references in those subparagraphs to “any of subparagraphs (i) to (iii) incurred” were read as “subparagraph (i) or (i.1) incurred after March 1985 and before October 1986,” and that were incurred by the particular corporation in the particular year or by a partnership in a fiscal period of the partnership that ended in the particular year if, at the end of that fiscal period, the particular corporation was a member of the partnership, expenses renounced by the corporation at any time under subsection 66(10.2), (12.601) or (12.62) of the Act, For the purposes of subsection (1), the total development assistance of a corporation for a taxation year is the aggregate of all amounts each of which is an amount of assistance or benefit that the corporation has received or is entitled to receive in the year from a government, municipality or other public authority in respect of an expense that is included in its total specified development expenses for the year by virtue of paragraph (2)(a) or (c), whether such mount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit. Subject to subsections (2) to (4), for the purpose of subsection 66.1(6) of the Act, Canadian renewable and conservation expense means an expense incurred by a taxpayer, and payable to a person or partnership with whom the taxpayer is dealing at arm’s length, in respect of the development of a project for which it is reasonable to expect that at least 50% of the capital cost of the depreciable property to be used in the project would be the capital cost of any property that is included in Class 43.1 or 43.2 in Schedule II, or that would be so included if this Part were read without reference to this section, and includes such an expense incurred by the taxpayer for the purpose of making a service connection to the project for the transmission of electricity to a purchaser of the electricity, to the extent that the expense so incurred was not incurred to acquire property of the taxpayer; for the construction of a temporary access road to the project site; for a right of access to the project site before the earliest time at which a property described in Class 43.1 or 43.2 in Schedule II is used in the project for the purpose of earning income; for clearing land to the extent necessary to complete the project; for process engineering for the project, including collection and analysis of site data, calculation of energy, mass, water, or air balances, simulation and analysis of the performance and cost of process design options, and selection of the optimum process design; for the drilling or completion of a well for the project, other than a well that is, or can reasonably be expected to be, used for the installation of underground piping that is included in paragraph (d) of Class 43.1 or paragraph (b) of Class 43.2 in Schedule II, or a well referred to in paragraph (h); for a test wind turbine that is part of a wind farm project of the taxpayer; or if at least 50% of the depreciable property to be used in the project, determined by reference to its capital cost, is described in subparagraph (d)(vii) of Class 43.1, for the drilling of a well, or solely for the purpose of determining the extent and quality of a geothermal resource. A Canadian renewable and conservation expense does not include any expense that is described in paragraphs 20(1)(c), (d), (e) or (e.1) of the Act; or is incurred by a taxpayer directly or indirectly and is for the acquisition of, or the use of or the right to use, land, except as provided by paragraph (1)(b), (c) or (d), for grading or levelling land or for landscaping, except as provided by paragraph (1)(b), payable to a non-resident person or a partnership other than a Canadian partnership (other than an expense described in paragraph (1)(g)), included in the capital cost of property that, but for this section, would be depreciable property (other than property that would be included in Class 14.1 of Schedule II), except as provided by paragraph (1)(b), (d), (e), (f), (g) or (h), included in the capital cost of property that, but for this section, would be property included in Class 14.1 of Schedule II, except as provided by any of paragraphs (1)(a) to (e) or subparagraph (h)(ii), included in the cost of inventory of the taxpayer, an expenditure on or in respect of scientific research and experimental development, a Canadian development expense or a Canadian oil and gas property expense, incurred, for a project, in respect of any time at or after the earliest time at which a property described in Class 43.1 or 43.2 in Schedule II was used in the project for the purpose of earning income, incurred in respect of the administration or management of a business of the taxpayer, or a cost attributable to the period of the construction, renovation or alteration of depreciable property, other than property described in Class 43.1 or 43.2 in Schedule II, that relates to the construction, renovation or alteration of the property, except as provided by paragraph (1)(b), (f), (g) or (h), or the ownership of land during the period, except as provided by paragraph (1)(b), (c) or (d). For the purpose of paragraph (1)(g), test wind turbine means a fixed location device that is a wind energy conversion system that would, if this Part were read without reference to this section, be property included in Class 43.1 in Schedule II because of subparagraph (d)(v) of that Class, or in Class 43.2 in Schedule II because of paragraph (b) of that Class, in respect of which the Minister, in consultation with the Minister of Natural Resources, determines that the device is installed as part of a wind farm project of the taxpayer at which the electrical energy produced from wind by the device, and by all other test wind turbines that are part of the project, does not exceed one third of the project’s planned nameplate capacity if the Minister of Natural Resources determines that the project’s planned nameplate capacity is limited from an engineering or scientific perspective, and the project’s planned nameplate capacity does not exceed six megawatts, or 20% of the project’s planned nameplate capacity, in any other case; the project does not share with any other project a point of interconnection to an electrical energy transmission or distribution system; if the project does not have a point of interconnection to an electrical energy transmission or distribution system, the project has a point of interconnection to an electrical system of the taxpayer which system is more than 10 kilometres from any transmission system and from any distribution system, and from which system at least 90% of the electrical energy produced by the project is used in a business carried on by the taxpayer, or of another person or partnership that deals at arm’s length with the taxpayer from which system at least 90% of the electrical energy produced by the project is used in a business carried on by the other person or partnership; the primary purpose for installing the device is to test the level of electrical energy produced by the device from wind at the place of installation; no other test wind turbine is installed within 1500 metres of the device; and no other wind energy conversion system is installed within 1500 metres of the device until the level of electrical energy produced from wind by the device has been tested for at least 120 calendar days. For greater certainty, a Canadian Renewable and Conservation Expense includes an expense incurred by a taxpayer to acquire a fixed location device that is a wind energy conversion system only if the device is described in paragraph (1)(g). A Canadian renewable and conservation expense does not include an expense incurred by a taxpayer at any time that is in respect of a geothermal project that at that time is described in paragraph (1)(h); and in respect of which the taxpayer is not at that time in compliance with the requirements of all environmental laws, by-laws and regulations of Canada, a province or a municipality in Canada, or a municipal or public body performing a function of government in Canada. Any election by an individual under paragraph 48(1)(c) of the Act shall be made by filing with the Minister the prescribed form on or before the day on or before which the return of income for the year in which the taxpayer ceased to be resident in Canada is required to be filed under section 150 of the Act. Any election by a Canadian corporation under paragraph 48(1)(c) of the Act shall be made by filing with the Minister, on or before the day on or before which the return of income for the year in which the corporation ceased to be resident in Canada is required to be filed under section 150 of the Act, the following documents in duplicate: the form prescribed by the Minister; where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made; and where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation. Any election by an individual under subsection 159(4) of the Act shall be made by filing with the Minister the prescribed form on or before the day on or before which the return of income for the year in which the taxpayer ceased to be resident in Canada is required to be filed under section 150 of the Act. Any election by a Canadian corporation under subsection 159(4) of the Act shall be made by filing with the Minister, on or before the day on or before which the return of income for the year in which the corporation ceased to be resident in Canada is required to be filed under section 150 of the Act, the following documents in duplicate: Any election by an individual under paragraph 48(1)(a) of the Act shall be made by filing with the Minister the prescribed form on or before the day on or before which the return of income for the year in which the taxpayer ceased to be resident in Canada is required to be filed under section 150 of the Act. For the purpose of paragraph 20(7)(c) of the Act, the amount prescribed in respect of an insurer for a taxation year is the amount determined under subsection (3) in respect of the insurer for the year, where that amount is greater than nil, and nil, in any other case. For the purpose of paragraph 12(1)(e.1) of the Act, the amount prescribed in respect of an insurer for a taxation year is the absolute value of the amount determined under subsection (3) in respect of the insurer for the year, where that amount is less than nil, and For the purposes of paragraphs (1)(a) and (2)(a), the amount determined under this subsection in respect of an insurer for a taxation year is the positive or negative amount determined by the formula is the total of all amounts each of which is the liability for remaining coverage for a group of insurance contracts of the insurer at the end of the year other than a group of life insurance contracts; is the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year other than a group of life insurance contracts, that is (a)the liability for incurred claims for the group, if no portion of the liability for incurred claims is in respect of insurance policies other than insurance policies in respect of which(i)a claim that was incurred before the end of the year has been reported to the insurer before the end of the year,(ii)the claim is in respect of damages for personal injury or death, and(iii)the insurer has agreed to a structured settlement of the claim, and the liability for incurred claims for the group, if no portion of the liability for incurred claims is in respect of insurance policies other than insurance policies in respect of which (i)a claim that was incurred before the end of the year has been reported to the insurer before the end of the year, a claim that was incurred before the end of the year has been reported to the insurer before the end of the year, (ii)the claim is in respect of damages for personal injury or death, and the claim is in respect of damages for personal injury or death, and (iii)the insurer has agreed to a structured settlement of the claim, and the insurer has agreed to a structured settlement of the claim, and (b)in any other case, the amount that would be the liability for incurred claims for the group if the liability for incurred claims were determined excluding insurance policies other than insurance policies that meet the conditions in subparagraphs (a)(i) to (iii); in any other case, the amount that would be the liability for incurred claims for the group if the liability for incurred claims were determined excluding insurance policies other than insurance policies that meet the conditions in subparagraphs (a)(i) to (iii); (a)the liability for incurred claims for the group, if no portion of the liability for incurred claims is in respect of insurance policies that meet the conditions in subparagraphs (a)(i) to (iii) of the description of B, and the liability for incurred claims for the group, if no portion of the liability for incurred claims is in respect of insurance policies that meet the conditions in subparagraphs (a)(i) to (iii) of the description of B, and (b)in any other case, the amount that would be the liability for incurred claims for the group if the liability for incurred claims were determined excluding insurance policies that meet the conditions in subparagraphs (a)(i) to (iii) of the description of B, in any other case, the amount that would be the liability for incurred claims for the group if the liability for incurred claims were determined excluding insurance policies that meet the conditions in subparagraphs (a)(i) to (iii) of the description of B, is the total of all amounts each of which is the contractual service margin for a group of insurance policies of the insurer at the end of the year that is in respect of (a)non-cancellable or guaranteed renewable accident and sickness policies that are in respect of accident and sickness insurance, non-cancellable or guaranteed renewable accident and sickness policies that are in respect of accident and sickness insurance, (b)mortgage insurance, or mortgage insurance, or (c)title insurance; title insurance; is an amount in respect of policies that insure a fidelity risk, a surety risk, a nuclear risk or a risk related to a financial loss of a lender on a loan made on the security of real property, equal to the lesser of (a)the total of the reported reserves of the insurer at the end of the year in respect of such risks (other than an amount included under the description of A, B, C, D or F), and the total of the reported reserves of the insurer at the end of the year in respect of such risks (other than an amount included under the description of A, B, C, D or F), and (b)a reasonable amount as a reserve determined as at the end of the year in respect of such risks (other than an amount included under the description of A, B, C, D or F); a reasonable amount as a reserve determined as at the end of the year in respect of such risks (other than an amount included under the description of A, B, C, D or F); is the amount of a guarantee fund at the end of the year provided for under an agreement in writing between the insurer and His Majesty in right of Canada under which His Majesty has agreed to guarantee the obligations of the insurer under a policy that insures a risk related to a financial loss of a lender on a loan made on the security of real property; is an amount in respect of policies that insure earthquake risks in Canada equal to the lesser of (a)the portion of the reported reserve of the insurer at the end of the year in respect of those risks that is attributable to accumulations from premiums in respect of those risks (other than an amount included under the description of A, B, C, D, E or F), and the portion of the reported reserve of the insurer at the end of the year in respect of those risks that is attributable to accumulations from premiums in respect of those risks (other than an amount included under the description of A, B, C, D, E or F), and (b)a reasonable amount as a reserve determined at the end of the year in respect of those risks (other than an amount included under the description of A, B, C, D, E or F); a reasonable amount as a reserve determined at the end of the year in respect of those risks (other than an amount included under the description of A, B, C, D, E or F); is the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is (a)if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under life insurance policies, the reinsurance contract held amount for the group, and if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under life insurance policies, the reinsurance contract held amount for the group, and (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion of that amount that is in respect of the reinsurance of a risk under life insurance policies; in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion of that amount that is in respect of the reinsurance of a risk under life insurance policies; is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is (a)if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy described in paragraph (a) of the description of D, or a policy in respect of insurance described in paragraph (b) or (c) of the description of D, the contractual service margin for the group, and if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy described in paragraph (a) of the description of D, or a policy in respect of insurance described in paragraph (b) or (c) of the description of D, the contractual service margin for the group, and (b)in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion of the contractual service margin other than that portion that is in respect of the reinsurance of a risk under a policy described in paragraph (a) of the description of D, and a policy in respect of insurance described in paragraph (b) or (c) of the description of D; and in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion of the contractual service margin other than that portion that is in respect of the reinsurance of a risk under a policy described in paragraph (a) of the description of D, and a policy in respect of insurance described in paragraph (b) or (c) of the description of D; and is the reinsurance contract held amount in respect of a group of reinsurance contracts that is included in the description of H and that is in respect of a liability for incurred claims in respect of a group of insurance contracts that is included in the description of C. [Repealed, 2022, c. 19, s. 78] [Repealed, SOR/2002-123, s. 4] For the purposes of applying section 307 and subsection 211.1(3) of the Act at any time, the amounts determined under this subsection are, in respect of a deposit administration fund policy, the total of the insurer’s liabilities under the policy calculated in the manner that if the insurer is required to file an annual report with its relevant authority for a period that includes that time, is required to be used in preparing that report, and in any other case, is required to be used in preparing its annual financial statements for the period that includes that time; in respect of a group term life insurance policy that provides insurance for a period not exceeding 12 months, the unearned portion of the premium paid by the policyholder for the policy at that time determined by apportioning the premium paid by the policyholder equally over the period to which that premium pertains; in respect of a life insurance policy, other than a policy referred to in paragraph (a) or (b), the greater of (A)if the policy is issued after 2016 and is not an annuity contract, the cash surrender value of the policy at that time determined without reference to surrender charges, and if the policy is issued after 2016 and is not an annuity contract, the cash surrender value of the policy at that time determined without reference to surrender charges, and (B)in any other case, the cash surrender value of the policy at that time, and in any other case, the cash surrender value of the policy at that time, and is the total of all amounts each of which is an amount payable at that time in respect of a policy loan in respect of the policy, and (A)if the policy is issued after 2016 and is not an annuity contract, the net premium reserve in respect of the policy at that time, and if the policy is issued after 2016 and is not an annuity contract, the net premium reserve in respect of the policy at that time, and (B)in any other case, the present value at that time of the future benefits provided by the policy, in any other case, the present value at that time of the future benefits provided by the policy, (A)if the policy is issued after 2016 and is not an annuity contract, nil, and if the policy is issued after 2016 and is not an annuity contract, nil, and (B)in any other case, the present value at that time of any future modified net premiums in respect of the policy, and in any other case, the present value at that time of any future modified net premiums in respect of the policy, and is the total of all amounts each of which is an amount payable at that time in respect of a policy loan in respect of the policy; in respect of a group life insurance policy, the amount (other than an amount in respect of which a deduction may be claimed by the insurer under subsection 140(1) of the Act because of subparagraph 138(3)(a)(v) of the Act in computing the insurer’s income for its taxation year that includes that time) in respect of a dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy that will be used by the insurer to reduce or eliminate a future adverse claims experience under the policy or that will be paid or unconditionally credited to the policyholder by the insurer or applied in discharge, in whole or in part, of a liability of the policyholder to pay premiums to the insurer, which is the least of a reasonable amount in respect of such a dividend, refund of premiums or refund of premium deposits, 25% of the amount of the premium payable under the terms of the policy for the 12-month period ending at that time, and the amount of the reserve or liability in respect of such a dividend, refund of premiums or refund of premium deposits that if the insurer is required to file an annual report with its relevant authority for a period that includes that time, is used in preparing that report, and in any other case, is used in preparing its annual financial statements for the period that includes that time; and in respect of a policy, other than a policy referred to in paragraph (a), in respect of a benefit, risk or guarantee that is an accidental death benefit, a disability benefit, an additional risk as a result of insuring a substandard life, an additional risk in respect of the conversion of a term policy or the conversion of the benefits under a group policy into another policy after that time, an additional risk under a settlement option, an additional risk under a guaranteed insurability benefit, a guarantee in respect of a segregated fund policy, or any other benefit that is ancillary to the policy, subject to the prior approval of the Minister on the advice of the Superintendent of Insurance for Canada, but is not a benefit, risk or guarantee in respect of which an amount has been claimed under any other paragraph of this subsection by the insurer as a deduction in computing its income for its taxation year that includes that time, a reasonable amount in respect of the benefit, risk or guarantee, and the reserve in respect of the benefit, risk or guarantee that in any other case, is used in preparing its annual financial statements for the period that includes that time. [Repealed, 2009, c. 2, s. 99] For the purposes of subsection (1), (except in respect of subparagraph (d)(vii) thereof), any amount claimed by an insurer for the year shall not include an amount in respect of a liability of a segregated fund (within the meaning assigned segregated fund by section 138.1 of the Act). benefit on death includes the amount of an endowment benefit but does not include any additional amount payable as a result of accidental death; and where interest, if any, on an amount held on deposit by an insurer is included in computing the income of a policyholder for a taxation year, the amount held on deposit and interest on the deposit. (prestation de décès) coverage, under a life insurance policy, means each life insurance (other than a fund value benefit) under the policy in respect of a specific life, or two or more specific lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies. For greater certainty, each such insurance is a separate coverage. (protection) fund value benefit, under a life insurance policy at any time, means a benefit under the policy the amount of which is the amount by which the fund value of the policy at that time exceeds the total of all amounts each of which is a fund value of a coverage under the policy at that time. (bénéfice au titre de la valeur du fonds) fund value of a coverage, under a life insurance policy at any time, means the total of all amounts each of which is the amount at that time of an investment account in respect of the policy that reduces the net amount at risk as determined for the purpose of calculating the cost of insurance charges for the coverage during the period over which those charges are incurred or would be incurred if they were to apply until the termination of the coverage. (valeur du fonds d’une protection) fund value of a policy, at any time, means the total of all amounts each of which is the amount at that time of an investment account in respect of the policy and, for greater certainty, includes, where interest, if any, on an amount held on deposit by an insurer is not included in computing the income of a policyholder for a taxation year, the amount held on deposit and interest on the deposit; and excludes, where interest, if any, on an amount held on deposit by an insurer is included in computing the income of a policyholder for a taxation year, the amount held on deposit and interest on the deposit. (valeur du fonds d’une police) future benefits to be provided, in respect of a coverage under a life insurance policy at any time, means if there is a fund value of the coverage at that time, each benefit on death that would be payable under the coverage at a particular time after that time determined as if the amount of the benefit were equal to the amount by which the benefit on death at that time exceeds the fund value of the coverage at that time; and in any other case, each benefit on death payable under the coverage at a particular time after that time. (prestations futures à verser) future net premiums or cost of insurance charges, in respect of a coverage at any time, means for the purposes of paragraph (a) of the description of C in the definition net premium reserve in this subsection, each amount determined by the formula is future premiums or cost of insurance charges in respect of the coverage at that time, is the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on that date, and is the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on that date; and for the purposes of paragraph (b) of the description of C in the definition net premium reserve in this subsection, each amount determined by the formula is the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on the particular day that is one year after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, is the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on the particular day that is two years after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, is the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on the particular day that is one year after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, and is the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on the particular day that is two years after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, and notwithstanding subparagraph (i), in respect of the second year of the coverage, the amount determined by the formula is the amount determined under subparagraph (i), and is the amount of a one-year term insurance premium or cost of insurance charge that would be payable in respect of the coverage if the benefit on death were equal to the amount by which the benefit on death at the end of the first year of the coverage exceeds the fund value of the coverage, if any, at the end of the first year of the coverage. (frais d’assurance ou primes nets futurs) future premiums or cost of insurance charges, in respect of a coverage at any time, means if there is a fund value of the coverage at that time, each cost of insurance charge in respect of the coverage that would be incurred at a particular time after that time determined as if the net amount at risk under the coverage after that time were equal to the amount by which the benefit on death under the coverage at that time exceeds the fund value of the coverage at that time; and in any other case, each premium in respect of the coverage that is fixed and determined on the date of issue of the coverage that will become payable, or each cost of insurance charge in respect of the coverage that will be incurred, as the case may be, at a particular time after that time. (frais d’assurance ou primes futurs) interpolation time, of a coverage, means the time that is the earlier of the time that is eight years after the date of issue of the coverage; and the first time at which no premiums are payable or cost of insurance charges are incurred, as the case may be, in respect of the coverage. (moment d’interpolation) net premium reserve, in respect of a life insurance policy at any time, means the amount determined by the formula is the total of all amounts, if any, each of which is the present value at that time of the fund value of a coverage under the policy at that time; is the amount, if any, of the fund value benefit under the policy at that time; and in applying paragraph (1)(c) for the purposes of section 307, the total of all amounts each of which is, in respect of a coverage under the policy, if that time is at or after the interpolation time of the coverage, the amount determined by the formula is the present value at that time of future benefits to be provided in respect of the coverage at that time, and is the present value at that time of future net premiums or cost of insurance charges in respect of the coverage at that time, and if that time is before the interpolation time of the coverage, the amount determined by the formula is the number of years that the coverage has been in effect as of that time, is the number of years that the coverage would have been in effect if that time were the interpolation time, is the present value at the interpolation time of future benefits to be provided in respect of the coverage at the interpolation time and, if the coverage has a fund value at that time, determined as if the amount of the benefit on death under the coverage at the interpolation time were equal to the amount by which the benefit on death at that time exceeds the fund value of the coverage at that time, and is the present value at the interpolation time of future net premiums or cost of insurance charges in respect of the coverage at the interpolation time and, if the coverage has a fund value at that time, determined as if the net amount at risk under the coverage after the interpolation time were equal to the amount by which the benefit on death at that time exceeds the fund value of the coverage at that time, and in applying paragraph (1)(c) for the purposes of subsection 211.1(3) of the Act, the total of all amounts each of which is, in respect of a coverage under the policy, the amount determined by the formula is the present value at that time of future net premiums or cost of insurance charges in respect of the coverage at that time. (provision pour primes nettes) policy anniversary has the same meaning as in section 310. (anniversaire de la police) In applying paragraph (1)(c) for the purposes of section 307 in respect of a life insurance policy (other than an annuity contract) issued after 2016, the following rules apply: in computing present values an annual interest rate of 3.5% is to be used, and mortality rates are to be used; in determining the mortality rates that apply to a life insured under a coverage under the policy, if a single life is insured under the coverage, the age that is to be used is the age of the life insured at the time at which the coverage was issued, or that which is attained on the birthday of the life insured nearest to the time at which the coverage was issued, depending on the method used by the insurer that issued the policy in determining the premium or cost of insurance rates in respect of the life insured, if the life insured was determined by the insurer that issued the policy to be a standard life at the time the coverage was issued, the Proposed CIA Mortality Tables, 1986–1992 included in the May 17, 1995 Canadian Institute of Actuaries Memorandum, extended to include select mortality rates from age 81 to age 90 developed using the methodology used by the Canadian Institute of Actuaries to derive select mortality rates from age 71 to age 80, applicable for an individual who has the same relevant characteristics as the life insured, are to be used, and if the life insured was determined by the insurer that issued the policy to be a substandard life at the time the coverage was issued, the mortality rates that apply are to be equal to, depending on the method used by the insurer for the purpose of determining the premium or cost of insurance rates in respect of the coverage, the lesser of one and the product of the rating attributed to the life by the insurer and the mortality rates that would be determined under clause (B) if the life were not a substandard life, or the mortality rates that would have been determined under clause (B) had the life insured been a standard life and the age of the life insured been the age used by the life insurer for the purpose of determining the premium or cost of insurance rates in respect of the coverage, and if two or more lives are jointly insured under the coverage, the mortality rates to be used are those determined by applying the methodology used by the insurer that issued the policy to estimate the mortality rates of the lives jointly insured for the purpose of determining the premium or cost of insurance rates in respect of the coverage to the Proposed CIA Mortality Tables, 1986–1992 included in the May 17, 1995 Canadian Institute of Actuaries Memorandum, extended to include select mortality rates from age 81 to age 90 developed using the methodology used by the Canadian Institute of Actuaries to derive select mortality rates from age 71 to age 80; and in determining the net premium reserve in respect of the policy, the present value of future net premiums or cost of insurance charges is to be calculated as if a premium or cost of insurance charge payable or incurred on a policy anniversary were payable or incurred, as the case may be, one day after the policy anniversary. In applying paragraph (1)(c) for the purposes of subsection 211.1(3) of the Act in respect of a life insurance policy (other than an annuity contract) if the policy is issued after 2016, the rates of interest, mortality and lapses described in subsection 1403(1) are to be used in computing present values, determined as if subsections 1403(2) to (8) did not apply, and the reference to “premiums for the policy” in paragraph 1403(1)(e) were read as a reference to “premiums or cost of insurance charges in respect of a coverage under the policy”, subparagraph (1)(c)(i) is to be read without reference to “determined without reference to surrender charges”, and in determining the net premium reserve in respect of the policy, the present value of future net premiums or cost of insurance charges is to be calculated as if a premium or cost of insurance charge payable or incurred on a policy anniversary were payable or incurred, as the case may be, one day after the policy anniversary; and if the policy is issued before 2017 and at a particular time after 2016 life insurance — in respect of a life, or two or more lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies — is added to the policy or is term insurance that is converted into permanent life insurance within the policy, then that insurance is deemed to be a separate life insurance policy issued at the particular time unless the insurance is part of a rider deemed by subsection 211(2) of the Act to be a separate life insurance policy issued at the particular time, or in the case of insurance added to the policy, the insurance is medically underwritten to obtain a reduction in the premium or cost of insurance rates under the policy, or before 2017, or the insurance is paid for with policy dividends or is reinstated. Any amount determined under section 1401 shall be determined net of relevant reinsurance recoverable amounts; and section 1400 or 1401 shall be determined without reference to any amount in respect of a deposit accounting insurance policy. For greater certainty, any amount referred to or determined under section 1400 may be equal to, or less than, nil. Subject to subsections (2) and (3), for the purposes of applying paragraph 1401(1)(c) in respect of a life insurance policy issued before 2017 or an annuity contract, a modified net premium and an amount determined by paragraph 1401(1)(c) are to be computed in the case of a lapse-supported policy effected after 1990, based on rates of interest, mortality and policy lapse only, and in any other case, based on rates of interest and mortality only, using in respect of the modified net premiums and benefits (other than a benefit described in paragraph (d)) of a participating life insurance policy (other than an annuity contract) under the terms of which the policyholder is entitled to receive a specified amount in respect of the policy’s cash surrender value, the rates used by the insurer when the policy was issued in computing the cash surrender values of the policy; in respect of any benefit provided in lieu of a cash settlement on the termination or maturity of a policy, or in satisfaction of a dividend on a policy, the rates used by the insurer in determining the amount of such benefit; and in respect of all or part of any other policy, the rates used by the insurer in determining the premiums for the policy. For the purposes of subsection (1), where a rate of mortality or other probability used by an insurer in determining the premium for a policy is not reasonable in the circumstances, the Minister on the advice of the Superintendent of Insurance for Canada may make such revision to the rate as is reasonable in the circumstances and the revised rate shall be deemed to have been used by the insurer in determining the premium. For the purposes of subsection (1), where the present value of the premiums for a policy as at the date of issue of the policy is less than the aggregate of the present value, at that date, of the benefits provided for by the policy, and the present value, at that date, of all outlays and expenses made or incurred by the insurer or outlays and expenses that the insurer reasonably estimates it will make or incur in respect of the policy (except outlays and expenses to maintain the policy after all premiums under the policy have been paid and for which explicit provision has not been made in calculating the premiums) and such part of any other outlays and expenses made or incurred by the insurer that may reasonably be regarded as applicable thereto, an increased rate of interest shall be determined by multiplying the rate of interest used in determining the premiums by a constant factor so that when the increased rate of interest is used, the present value of the premiums at the date of issue of the policy shall equal the aggregate of the present values of the benefits, outlays and expenses referred to in paragraphs (a) and (b), and the increased rate of interest shall be deemed to have been used by the insurer in determining the premiums for policy. For the purposes of subsection (3), a “present value” referred to in that subsection shall be computed by using the rates of mortality and other probabilities used by the insurer in determining its premiums, after mixing any revision required by subsection (2). For the purposes of subsection (1), where a record of the rate of interest or mortality used by an insurer in determining the premiums for a policy is not available, the insurer may, if the policy was issued before 1978, make a reasonable estimate of the rate; and the Minister, on the advice of the Superintendant of Insurance for Canada, may if the policy was issued before 1978 and the insurer has not made the estimate referred to in paragraph (a), or if the policy was issued after 1977, make a reasonable estimate of the rate. Notwithstanding paragraph 1401(1)(c), a life insurer in computing its income for a taxation year may, in respect of any class of life insurance policies issued before its 1988 taxation year, other than policies referred to in paragraph 1401(1)(a) or (b), use a method of approximation to convert the reserve in respect of such policies reported by the insurer in its annual report to the relevant authority for the year to an amount that is a reasonable estimate of the amount that would otherwise be determined for such policies under paragraph 1401(1)(c), provided that that method of approximation is acceptable to the Minister on the advice of the relevant authority. For the purpose of subsection (1) and notwithstanding any other provision of this section, where an individual annuity contract was issued prior to 1969 by a life insurer, or a benefit was purchased prior to 1969 under a group annuity contract issued by a life insurer, and the contract is a policy in respect of which the provisions of paragraph 1401(1)(c) as it read in its application to the insurer’s 1977 taxation year applied, the rates of interest and mortality and by the insurer in computing its reserve for the policy under that paragraph for its 1977 taxation year shall be used by the insurer in respect of that policy. Subsections (9) and (10) apply to an insurer if in a taxation year of the insurer, there has been a disposition to the insurer by another person with whom the insurer was dealing at arm’s length in respect of which subsection 138(11.92) of the Act applied; as a result of the disposition, the insurer assumed obligations under life insurance policies (in this subsection and subsections (9) and (10) referred to as the “transferred policies”) in respect of which an amount may be claimed by the insurer as a reserve under paragraph 1401(1)(c) for the taxation year; the amount (referred to in this subsection and subsections (9) and (10) as the “reserve deficiency”) determined by the following formula is a positive amount: is the total of all amounts received or receivable by the insurer from the other person in respect of the transferred policies, is the total of all amounts paid or payable by the insurer to the other person in respect of commissions in respect of the amounts referred to in the description of A, and is the total of the maximum amounts that may be claimed by the insurer as a reserve under 1401(1)(c) (determined without reference to this subsection) in respect of the transferred policies for the taxation year; and the reserve deficiency can reasonably be attributed to the fact that the rates of interest, mortality or policy lapse used by the issuer of the transferred policies in determining the cash surrender values or premiums under the transferred policies are no longer reasonable in the circumstances. If this subsection applies to an insurer in respect of transferred policies for which there was a reserve deficiency, then, for the purposes of subsection (1) and subject to subsection (10), the insurer may make such revisions to the rates of interest, mortality or policy lapse used by the issuer of the transferred policies to eliminate all or any part of the reserve deficiency; and the revised rates are deemed to have been used by the issuer of the transferred policies in determining the cash surrender value or premiums under the policies.

If, under subsection (9), an insurer has revised the rates of interest, mortality or policy lapse used by the issuer of transferred policies, the Minister may, for the purposes of subsection (1) and paragraph (9)(b), make further revisions to the revised rates to the extent that the insurer’s revisions to those rates are not reasonable in the circumstances. For the purpose of subparagraph 138(3)(a)(i) of the Act, there may be deducted, in computing a life insurer’s income from carrying on its life insurance business in Canada for a taxation year in respect of its groups of life insurance contracts in Canada at the end of the year, the amount the insurer claims, not exceeding the amount determined under subsection (3) in respect of the insurer for the year, where that amount is greater than nil; and For the purpose of paragraph 138(4)(b) of the Act, the amount prescribed in respect of an insurer for a taxation year, in respect of its groups of life insurance contracts in Canada at the end of the year, is the absolute value of the amount determined under subsection (3) in respect of the insurer for the year, where that amount is less than nil; and For the purposes of paragraphs (1)(a) and (2)(a), the amount determined under this subsection in respect of an insurer for a taxation year, for groups of life insurance contracts in Canada of the insurer at the end of the year, is the positive or negative amount determined by the formula is the total of all amounts each of which is the liability for remaining coverage for a group of life insurance contracts in Canada of the insurer at the end of the year; is the total of all amounts each of which is the liability for incurred claims for a group of life insurance contracts in Canada of the insurer at the end of the year; is the total of all amounts each of which is the contractual service margin for a group of life insurance contracts in Canada (other than a group of segregated fund policies) of the insurer at the end of the year; (a)if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada, the reinsurance contract held amount for the group, and if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada, the reinsurance contract held amount for the group, and (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada; and in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada; and (a)if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada that is not a segregated fund policy, the contractual service margin for the group, and if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under an insurance policy other than a life insurance policy in Canada that is not a segregated fund policy, the contractual service margin for the group, and (b)in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under insurance policies other than a life insurance policy in Canada that is not a segregated fund policy. in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under insurance policies other than a life insurance policy in Canada that is not a segregated fund policy. [Repealed, 2022, c. 19, s. 81] Any amount determined under section 1404 shall be determined [Repealed, 2022, c. 19, s. 82] by excluding any obligation to pay a benefit under a segregated fund policy if the amount of the benefit varies with the fair market value of the segregated fund at the time the benefit becomes, or may become, payable, and the benefit is not in respect of a guarantee given by the insurer under a segregated fund policy; and without reference to any amount in respect of a deposit accounting insurance policy. For greater certainty, any amount referred to in or determined under section 1404 may be equal to, or less than, nil. The definitions in this subsection apply in this Part. accident and sickness insurance has the same meaning as in the schedule to the Insurance Companies Act. (assurance accidents et maladie) acquisition costs[Repealed, SOR/2002-123, s. 2] amount payable, in respect of a policy loan at a particular time, means the amount of the policy loan and the interest that is outstanding on the policy loan at that time. (montant payable) benefit, in respect of a policy, includes a policy dividend (other than a policy dividend in respect of a policy described in paragraph 1403(1)(c)) in respect of the policy to the extent that the dividend was specifically treated as a benefit by the insurer in determining a premium for the policy, and an expense of maintaining the policy after all premiums in respect of the policy have been paid to the extent that the expense was specifically provided for by the insurer in determining a premium for the policy, a policy loan, interest on funds left on deposit with the insurer under the terms of the policy, and any other amount under the policy that was not specifically provided for by the insurer in determining a premium for the policy. (bénéfice) capital tax means a tax imposed under Part I.3 or VI of the Act or a similar tax imposed under an Act of the legislature of a province. (impôt sur le capital) cash surrender value has the meaning assigned by subsection 148(9) of the Act. (valeur de rachat) claim liability[Repealed, 2022, c. 19, s. 84] contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12) of the Act. (marge sur services contractuels) deposit accounting insurance policy has the meaning assigned by subsection 138(12) of the Act. (police d’assurance à comptabilité de dépôt) extended motor vehicle warranty[Repealed, 2022, c. 19, s. 84] general amending provision[Repealed, 2022, c. 19, s. 84] group of insurance contracts of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats d’assurance) group of life insurance contracts of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats d’assurance-vie) group of life insurance contracts in Canada of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats d’assurance-vie au Canada) group of reinsurance contracts held by an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de contrats de réassurance) group of segregated fund policies of an insurer has the same meaning as in subsection 138(12) of the Act. (groupe de polices à fonds réservé) interest, in relation to a policy loan, has the meaning assigned by subsection 138(12) of the Act. (intérêt) lapse-supported policy means a life insurance policy that would require materially higher premiums if premiums were determined using policy lapse rates that are zero after the fifth policy year. (police fondée sur les déchéances) liability for incurred claims for a group of insurance contracts of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (passif au titre des sinistres survenus) liability for remaining coverage for a group of insurance contracts of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (passif au titre de la couverture restante) life insurance policy has the same meaning as defined in subsection 138(12) of the Act. (police d’assurance-vie) life insurance policy in Canada has the same meaning as defined in subsection 138(12) of the Act. (police d’assurance-vie au Canada) modified net premium, in respect of a premium under a policy (other than a prepaid premium under a policy that cannot be refunded except on termination of the policy), means where all benefits (other than policy dividends) and premiums (other than the frequency of payment of premiums) in respect of the policy are determined at the date of issue of the policy, the amount determined by the formula is the amount of the premium, is the present value, at the date of the issue of the policy, of the benefits to be provided under the terms of the policy after the day that is one year after the date of the issue of the policy, is the present value, at the date of the issue of the policy, of the benefits to be provided under the terms of the policy after the day that is two years after the date of the issue of the policy, is the present value, at the date of the issue of the policy, of the premiums payable under the terms of the policy on or after the day that is one year after the date of the issue of the policy, and is the present value, at the date of the issue of the policy, of the premiums payable under the terms of the policy on or after the day that is two years after the date of the issue of the policy, except that the amount determined by the formula in respect of the premium for the second year of a policy is deemed to be the amount that is 50% of the total of the amount that would otherwise be determined under the formula, and the amount of a one-year term insurance premium (determined without regard to the frequency of payment of the premium) that would be payable under the policy; and in any other case, the amount that would be determined under paragraph (a) if that paragraph applied and the amount were adjusted in a manner that is reasonable in the circumstances. (prime nette modifiée) mortgage insurance has the same meaning as in the schedule to the Insurance Companies Act. (assurance hypothécaire) net premium for the policy[Repealed, SOR/2002-123, s. 2] non-cancellable or guaranteed renewable accident and sickness policy, includes a non-cancellable or guaranteed renewable accident and sickness benefit under a group policy. (police d’assurance contre les accidents et la maladie non résiliable ou à renouvellement garanti) participating life insurance policy has the meaning assigned by subsection 138(12) of the Act. (police d’assurance-vie avec participation) policy liability[Repealed, 2022, c. 19, s. 84] policy loan has the meaning assigned by subsection 138(12) of the Act. (avance sur police) post-1995 life insurance policy[Repealed, 2022, c. 19, s. 84] post-1995 non-cancellable or guaranteed renewable accident and sickness policy[Repealed, 2022, c. 19, s. 84] pre-1996 life insurance policy[Repealed, 2022, c. 19, s. 84] pre-1996 non-cancellable or guaranteed renewable accident and sickness policy[Repealed, 2022, c. 19, s. 84] qualified annuity means an annuity contract issued before 1982, other than a deposit administration fund policy or a policy referred to in paragraph 1403(7)(c), in respect of which regular periodic annuity payments have commenced; in respect of which a contract or certificate has been issued that provides for regular periodic annuity payments to commence within one year after the date of issue of the contract or certificate; that is not issued as or under a registered retirement savings plan, registered pension plan or deferred profit sharing plan and that does not provide for a guaranteed cash surrender value at any time, and provides for regular periodic annuity payments to commence not later than the attainment of age 71 by the annuitant; or that is issued as or under a registered retirement savings plan, registered pension plan or deferred profit sharing plan, if the interest rate is guaranteed for at least 10 years and the plan does not provide for any participation in profits, directly or indirectly. (rente admissible) reinsurance commission[Repealed, 2022, c. 19, s. 84] reinsurance contract held amount for a group of reinsurance contracts held by an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (montant au titre des contrats de réassurance détenus) reinsurance recoverable amount of an insurer means an amount reported as a reinsurance asset of the insurer as at the end of a taxation year in respect of an amount recoverable from a reinsurer. (somme à recouvrer au titre de la réassurance) relevant authority of an insurer has the same meaning as in subsection 138(12) of the Act. (autorité compétente) reported reserve of an insurer at the end of a taxation year in respect of a policy that insures an earthquake risk in Canada, or a fidelity risk, a nuclear risk or a risk related to a financial loss of a lender on a loan made on the security of real property, means the amount equal to the positive or negative amount of the reserve reported as at the end of the year. (provision déclarée) segregated fund has the meaning assigned by subsection 138.1(1) of the Act. (fonds réservé) segregated fund policy has the meaning assigned by subsection 138.1(1) of the Act. (police à fonds réservé) title insurance has the same meaning as in the schedule to the Insurance Companies Act. (assurance de titres) [Repealed, 2022, c. 19, s. 84] For the purpose of the formula referred to in the definition modified net premium in subsection (1), it may be assumed that premiums are payable annually in advance. For the purposes of this Part, any rider that is attached to a life insurance policy and that provides for additional life insurance or for an annuity is a separate life insurance policy. For the purposes of this Part, any rider that is attached to a policy and that provides for additional non-cancellable or guaranteed renewable accident and sickness insurance, as the case may be, is a separate non-cancellable or guaranteed renewable accident and sickness policy. An election under subsection 144(4.1) of the Act by the trustee of a trust governed by an employees profit sharing plan shall be made by filing with the Minister the prescribed form in duplicate. An election under subsection 144(4.2) of the Act by the trustee of a trust governed by an employees profit sharing plan shall be made by filing with the Minister the prescribed form in duplicate on or before the last day of a taxation year of the trust in respect of any capital property deemed to have been disposed of in that taxation year by virtue of the election. An election under subsection 144(10) of the Act shall be made by sending the following documents by registered mail to the Commissioner of Revenue at Ottawa: a letter from the employer stating that he elects to have the arrangement qualify as an employees profit sharing plan; if the employer is a corporation, where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made, and where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation; and a copy of the agreement and any supplementary agreement setting out the plan. For the purpose of the definition deferred profit sharing plan in subsection 147(1) of the Act, an application for registration of a plan shall be made by sending the following documents by registered mail to the Commissioner of Revenue at Ottawa: a letter from the trustee and the employer whereby the trustee and the employer apply for the registration of the plan as a deferred profit sharing plan; if the employer is a corporation, a certified copy of a resolution of the directors authorizing the application to be made; and [Repealed, SOR/81-725, s. 1] Any election by a beneficiary under subsection 147(10.1) of the Act shall be made by filing the prescribed form in duplicate as follows: one form shall be filed by the beneficiary with the trustee of the deferred profit sharing plan not later than 60 days after the end of the taxation year in which the beneficiary received the payment referred to in subsection 147(10.1) of the Act; and the other form shall be filed by the beneficiary with the Minister on or before the day on which the beneficiary is required to file a return of income pursuant to section 150 of the Act for the taxation year in which the beneficiary received the payment referred to in subsection 147(10.1) of the Act. For the purposes of subsection 10(4) of the Income Tax Application Rules, the following countries are hereby prescribed: Commonwealth of Australia; Kingdom of Denmark; Republic of Finland; French Republic; Federal Republic of Germany; Ireland; Jamaica; Japan; Kingdom of the Netherlands; New Zealand; Kingdom of Norway; Republic of South Africa; Kingdom of Sweden; Trinidad and Tobago; United Kingdom of Great Britain and Northern Ireland; and United States of America. For the purposes of paragraph 20(1)(a) of the Act, there is hereby allowed to a taxpayer, in computing his income from farming or fishing, as the case may be, a deduction for each taxation year in respect of each property that was used for the purpose of gaining or producing income from farming or fishing equal to such amount as he may claim, not exceeding in the case of a building or other structure, not described elsewhere in this subsection, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, 2 1/2 per cent, a building or other structure of frame, log, stucco on frame, galvanized iron, or corrugated iron, construction including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, 5 per cent, a fence, 5 per cent, a scow or a vessel, including furniture, fittings or equipment attached thereto, but not including radiocommunication equipment, 7 1/2 per cent, nonautomotive equipment and machinery, 10 per cent, automotive equipment, a sleigh or a wagon, 15 per cent, radiocommunication equipment, 15 per cent, tile drainage acquired before the 1965 taxation year, 10 per cent, a water storage tank, 5 per cent, a gas well that is part of the equipment of a farm and from which the gas produced is not sold, 10 per cent, and a tool costing less than $100, 100 per cent, of the depreciable cost to the taxpayer of the property. Where a taxation year is less than 12 months, the amount allowed as a deduction under subsection (1) shall not exceed that proportion of the maximum amount otherwise allowable that the number of days in the taxation year is of 365. Where a taxpayer has disposed of a property before the end of a taxation year, the amount allowed as a deduction under subsection (1) in respect of that property for the year shall not exceed that proportion of the maximum amount otherwise allowable that the number of months in the taxation year during which the property was owned by the taxpayer is of 12. Where a taxpayer has property that was used for the purpose of gaining or producing income from farming or fishing and that would be included in Class 13 in Schedule II if he had claimed an allowance under Part XI, he may deduct, in computing his income from farming or fishing for a taxation year, an amount not exceeding the amount he could have deducted in respect of that property for the year under paragraph 1100(1)(b). The amount allowed as a deduction under section 1700 in respect of a property shall not exceed the amount by which the capital cost of the property to the taxpayer exceeds the aggregate of the deductions from income allowed under this Part in respect of the property for previous taxation years. In respect of the 1972 and subsequent taxation years, where subsection 20(5) of the Income Tax Application Rules, applies to a particular property, notwithstanding subsection (1), the amount allowed as a deduction under section 1700 in respect of the property shall not exceed the amount by which the amount determined to be the undepreciated capital cost of the property, under paragraph 20(5)(b) of the Income Tax Application Rules, the aggregate of the deductions from income allowed under this Part in respect of the property for previous taxation years ending after 1971. Nothing in this Part shall be construed as allowing a deduction in respect of a property the cost of which is deductible in computing the taxpayer’s income; that was acquired by an expenditure in respect of which the taxpayer is allowed a deduction from income under section 37 of the Act; that has been constituted a prescribed class by subsection 24(2) of chapter 91, S.C. 1966-67; that is included in a separate prescribed class established under subsection 13(14) of the Act; that was not used in the business during the year; an animal, or a tree, shrub, herb or similar growing thing; that was not acquired by the taxpayer for the purpose of gaining or producing income from farming or fishing; that has been included at any time by the taxpayer in a class prescribed under Part XI; that is a passenger automobile acquired after June 13, 1963, and before January 1, 1966, the cost to the taxpayer of which, minus the initial transportation charges and retail sales tax in respect thereof, exceeded $5,000, unless the automobile was acquired by a person before June 14, 1963 and has, by one or more transactions between persons not dealing at arm’s length, become vested in the taxpayer; or that was acquired by the taxpayer after 1971. Where a taxpayer is a member of a partnership, the properties referred to in this Part shall be deemed not to include any property that is an interest of the taxpayer in depreciable property that is partnership property of the partnership. The properties referred to in section 1700 shall be deemed not to include the land upon which a property described therein was constructed or is situated. Where the taxpayer is a non-resident person, the properties referred to in section 1700 shall be deemed not to include property that is situated outside Canada. The provisions of subsections 1102(11), (12) and (13) are applicable mutatis mutandis to paragraph (1)(j). Where a taxpayer is an individual and his income for the taxation year includes income from a business the fiscal period of which does not coincide with the calendar year, in respect of depreciable properties acquired for the purpose of gaining or producing income from the business, a reference in this Part to “the taxation year” shall be deemed to be a reference to the fiscal period of the business; and “the end of the taxation year” shall be deemed to be a reference to the end of the fiscal period of the business. In this Part, depreciable cost to a taxpayer of property means, except as otherwise provided, the actual cost of the property to the taxpayer or the amount at which he is deemed under subsection 13(7) of the Act to have acquired the property, as the case may be. Notwithstanding the other provisions of this section, in the case of property the cost of which to a partnership has been determined under paragraph 20(5)(a) of the Income Tax Application Rules, the depreciable cost to the taxpayer of the property for the purposes of this Part shall be deemed to be an amount equal to the cost to the partnership of the particular property as determined under that paragraph. Where a taxpayer has, in a taxation year, regularly used a property in part for the purpose of gaining or producing income from farming or fishing and in part for a purpose other than gaining or producing income, the depreciable cost to the taxpayer of the property for the purposes of this Part is the proportion of the amount that would otherwise be the depreciable cost that the use regularly made of the property for the purpose of gaining or producing income from farming or fishing is of the whole use regularly made of the property. Where a taxpayer has received or is entitled to receive a grant, subsidy or other assistance from a government, municipality or other public authority in respect of or for the acquisition of property, the depreciable cost to the taxpayer of the property for the purposes of this Part is the amount that would otherwise be the depreciable cost minus the amount of the grant, subsidy or other assistance. Where property did belong to a person (in this subsection referred to as the “original owner”) and has, by one or more transactions between persons not dealing at arm’s length, become vested in a taxpayer, the depreciable cost to the taxpayer of the property for the purposes of this part is the lesser of the actual capital cost of the property to the taxpayer; and the amount by which the actual capital cost of the property to the original owner exceeds the aggregate of the total amount of depreciation for the property that, since the commencement of 1917, has been or should have been taken into account in accordance with the practice of the Department of National Revenue in ascertaining the income of the original owner and all intervening owners for the purposes of the Income War Tax Act or in ascertaining a loss for a year when there was no income under that Act, any accumulated depreciation reserves that the original owner or an intervening owner had for the property at the commencement of 1917 and that were recognized by the Minister for the purposes of the Income War Tax Act, and the aggregate of the deductions, if any, allowed under this Part in respect of the property to the original owner and all intervening owners. Notwithstanding subsection (6), where depreciable property has been acquired by a taxpayer under such circumstances that the provisions of section 85H of the Act as it read in its application to the 1971 and prior taxation years are applicable for the determination of the capital cost of the property, the depreciable cost to the taxpayer of the property for the purposes of this Part is the capital cost as determined under that section. Subsection (6) does not apply in respect of property which a taxpayer has acquired by gift. This Part shall apply only to a taxpayer who, in computing his income, has never claimed an allowance under Part XI in respect of a property at a time when an allowance could have been claimed under this Part in respect of that property, other than an allowance claimed by the taxpayer under Part XI that may be claimed in respect of a property described in paragraph 1100(1)(r) as enacted by Order in Council P.C. 1965-1118 of June 18, 1965 and as amended by Order in Council P.C. 1965-2320 of December 29, 1965; paragraph 1100(1)(sa) as enacted by Order in Council P.C. 1968-2261 of December 10, 1968; paragraph 1100(1)(v); or Class 20 in Schedule II. For the purposes of section 230 of the Act, an inventory shall show quantities and nature of the properties that should be included therein in such a manner and in sufficient detail that the property may be valued in accordance with this Part or section 10 of the Act. Except as provided in section 1802, for the purpose of computing the income of a taxpayer from a business, all the property described in all the inventories of the business may be valued at its fair market value. Except as provided in subsection (2), a taxpayer who is carrying on a business that includes the breeding and raising of animals may elect in prescribed form for a taxation year and subsequent taxation years to value each animal of a particular species (except a registered animal, an animal purchased for feedlot or similar operations, or an animal purchased by a drover or like person for resale) included in his inventory in respect of the business at a unit price determined in accordance with this section. An election made in accordance with subsection (1) may be revoked in writing by the taxpayer, but where a taxpayer has made a revocation in accordance with this subsection a further election may not be made under subsection (1) except with the concurrence of the Minister. The unit price with respect to an animal of a particular class of animal shall be determined in accordance with the following rules: where animals of a particular class of animal were included in the inventory of a taxpayer at the end of the taxation year immediately preceding the first year in respect of which the taxpayer elected under subsection (1), the unit price of an animal of that class shall be computed by dividing the total value of all animals of the class in the inventory of the preceding year by the number of animals of the class described in that inventory; and in any other case, the unit price of an animal of a class shall be determined by the Minister, having regard, among other things, to the unit prices of animals of a comparable class of animal used in valuing the inventories of other taxpayers in the district. Notwithstanding subsection (1), where the aggregate value of the animals of a particular class determined in accordance with that subsection exceeds the market value of those animals, the animals of that class may be valued at fair market value. class of animal means a group of animals of a particular species segregated on the basis of age, breed or other recognized division, as determined by the taxpayer at the time of election under this section; (catégorie d’animaux) district means the territory served by a Tax Centre of the Canada Revenue Agency; (district) registered animal means an animal for which a certificate of registration has been issued by the registrar of the breed to which the animal belongs or by the registrar of the Canadian National Livestock Records; (animal enregistré) a reference to “taxation year” shall be deemed to include a reference to the fiscal period of a business. benefit under a policy includes a policy dividend, an experience rating refund, a refund of premiums and any amount deemed by paragraph 138.1(1)(g) of the Act for the purposes of Part I of the Act to be a payment under the terms and conditions of the policy, but does not include a policy loan or interest on funds left on deposit with the insurer under the terms of the policy; (prestation) excluded arrangement of an insurer at any time means a life insurance policy in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), which is at that time a registered life insurance policy, an annuity contract (including a settlement annuity), a group term life insurance policy or an existing guaranteed life insurance policy, a registered pension fund or plan in respect of which the insurer is at that time a plan sponsor, or a retirement compensation arrangement in respect of which the insurer is the custodian, a life insurance policy (other than a life insurance policy in Canada) issued by the insurer before that time (or in respect of which the insurer has before that time assumed the obligations of the issuer of the policy to the policyholder), and a reinsurance arrangement under which the insurer has before that time assumed, directly or indirectly, risks under life insurance policies (other than policies issued by the insurer or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), to the extent that the arrangement relates to those risks; (mécanisme exclu) existing guaranteed life insurance policy at any time means a non-participating life insurance policy in Canada in respect of which the amount of every premium that became payable before that time and after March 2, 1988 was fixed and determined on or before March 2, 1988, adjusted for any specified transaction or event that occurs after March 2, 1988 in respect of the policy; (police d’assurance-vie garantie existante) group term life insurance policy is a group life insurance policy under which no amount (other than a policy dividend, an experience rating refund or a refund of premiums) may become payable to any person, except in the event of the death or disability of a person whose life was insured under the policy, and no amount may become payable to a person (other than the group policyholder) in respect of a policy dividend, an experience rating refund or a refund of premiums that has been funded by contributions made to or under the policy by another person; (police collective d’assurance temporaire sur la vie) guaranteed interest in respect of a life insurance policy for a taxation year means in respect of a life insurance policy (other than a pre-funded group life insurance policy), the total of all amounts each of which is the amount in respect of a guaranteed benefit in respect of which an amount is determined under paragraph 1401(1)(a), (c) or (d) for the year, where that benefit is provided under the terms and conditions of the policy as they existed on March 2, 1988, determined by multiplying the greater of the rate of interest used by the issuer of the policy in respect of the year in determining the amount of the benefit, and 4% by 1/2 of the total of the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the benefit in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan or reinsurance arrangement, and the maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the benefit in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan or reinsurance arrangement, and in respect of a pre-funded group life insurance policy, 80 per cent of the amount that would be determined under paragraph (a) in respect of the policy for the year, if that paragraph were read without reference to the words “(other than a pre-funded group life insurance policy)”; (intérêts garantis) life insurance policy does not include that part of a policy in respect of which the policyholder is deemed by paragraph 138.1(1)(e) of the Act to have an interest in a segregated fund trust, or a reinsurance arrangement; (police d’assurance-vie) life insurance policy in Canada does not include a reinsurance arrangement; (police d’assurance-vie au Canada) maximum tax actuarial reserve has the meaning assigned by subsection 138(12) of the Act; (réserve actuarielle maximale aux fins de l’impôt) mortality experience of an insurer for a taxation year means the positive or negative amount, as the case may be, determined by the formula is the total of all amounts each of which is the amount that became payable in the year by the insurer under a taxable life insurance policy of the insurer as a consequence of the receipt of a claim in respect of the death of a person whose life was insured under the policy, determined without reference to any policy loan, is the total of all amounts each of which is the amount of a reserve that would be determined in accordance with paragraph 1401(1)(a), (c) or (d), if that amount were determined without reference to any policy loan or reinsurance arrangement, in respect of a taxable life insurance policy of the insurer that would have been released in the year as a consequence of the receipt of a claim in respect of the death of a person whose life was insured under the policy, and is 90 per cent of the total of all amounts, each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; (facteur de mortalité) mortality loss adjustment account of an insurer at the end of a taxation year is the positive amount, if any, determined by the formula is the mortality loss adjustment account of the insurer for the immediately preceding taxation year, (a)where the mortality experience of the insurer for the year is a negative amount, the amount of the mortality experience of the insurer for the year, and where the mortality experience of the insurer for the year is a negative amount, the amount of the mortality experience of the insurer for the year, and (b)in any other case, the amount, if any, by which the amount claimed by the insurer under the description of F in computing the amount determined under subsection (6) for the year exceeds the amount of the mortality loss adjustment account of the insurer for the immediately preceding taxation year, and in any other case, the amount, if any, by which the amount claimed by the insurer under the description of F in computing the amount determined under subsection (6) for the year exceeds the amount of the mortality loss adjustment account of the insurer for the immediately preceding taxation year, and is 1.2 times the amount, if any, by which (a)the net cost of insurance of the insurer for the year the net cost of insurance of the insurer for the year (b)the total of all amounts each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; (compte de redressement pour pertes de mortalité) the total of all amounts each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; (compte de redressement pour pertes de mortalité) net cost of insurance of an insurer for a taxation year means the amount, if any, by which the amount determined in the description of A in the definition mortality experience in respect of the insurer for the year the amount determined in the description of B in the definition mortality experience in respect of the insurer for the year; (coût net de l’assurance) net level premium in respect of a particular premium under a policy (other than a prepaid premium that cannot be refunded except on termination or cancellation of the policy) means where benefits (other than policy dividends) and premiums (other than the frequency of payment thereof) in respect of the policy have been determined at the date of issue of the policy, the amount determined by the formula is the amount of the particular premium, is the present value, at the date of issue of the policy, of the amount of the benefits (other than policy dividends) to be provided under the terms of the policy after the issue of the policy, and is the present value, at the date of issue of the policy, of the amount of the premiums payable under the terms of the policy on or after the issue of the policy, and where the amounts of the benefits or premiums in respect of the policy are not determined at the date of issue of the policy, the amount that would be determined under paragraph (a) in respect of the particular premium if the amount were adjusted in a manner that is reasonable in the circumstances and consistent with the manner of the adjustment referred to in the definition modified net premium in subsection 1404(2) in respect of the particular premium; (prime constante nette) net level premium reserve in respect of a life insurance policy for a taxation year means the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in respect of the policy in computing the insurer’s income for the year, if any reference to modified net premium in sections 1401, 1403 and 1404 were a reference to net level premium; (réserve de primes constantes nettes) non-participating life insurance policy means a life insurance policy other than a participating life insurance policy within the meaning assigned by subsection 138(12) of the Act; (police d’assurance-vie sans participation) policy loan has the meaning assigned by subsection 138(12) of the Act; (prêt sur police) pre-funded group life insurance policy means a group term life insurance policy, other than a policy under which each premium payable is in respect of coverage for a period, including the day on which the premium becomes payable, that does not exceed twelve months; (police collective d’assurance-vie par capitalisation anticipée) premium includes consideration received for settlement annuities, amounts received by an insurer in respect of employee contributions under registered pension funds or plans in respect of which the insurer is a plan sponsor or a retirement compensation arrangement in respect of which the insurer is the custodian, and any amount deemed by paragraph 138.1(1)(h) of the Act for the purposes of Part I of the Act to be a premium received by an insurer, but does not include amounts received in respect of the repayment of a policy loan or in respect of interest on a policy loan and, for greater certainty, the amount of a premium is not reduced by the amount of a refund of premiums; (prime) registered life insurance policy has the meaning assigned by section 211 of the Act; (police d’assurance-vie agréée) reinsurance arrangement does not include an arrangement under which an insurer has assumed the obligations of the issuer of a life insurance policy to the policyholder; (mécanisme de réassurance) segregated fund has the meaning assigned by subsection 138(12) of the Act; (fonds réservé) specified transaction or event in respect of a life insurance policy means a change in underwriting class, a change in premium due to a change in frequency of premium payments within a year that does not alter the present value, at the beginning of the year, of the total premiums to be paid under the policy in the year, an addition under the terms of the policy as they existed on March 2, 1988, of accidental death, dismemberment, disability or guaranteed purchase option benefits, a deletion of a rider, redating lapsed policies within 60 days after the end of the calendar year in which the lapse occurred, or redating for policy loan indebtedness, a change in premium due to a correction of erroneous information, the payment of a premium after its due date, or no more than 30 days before its due date, as established on or before March 2, 1988, or the payment of an amount of interest described in subparagraph 148(9)(e.1)(i) of the Act; (opération ou événement déterminé) taxable life insurance policy of an insurer at any time means a life insurance policy in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), other than a policy that is at that time an excluded arrangement. (police d’assurance-vie imposable) For the purposes of this Part, any rider added, at any time after March 2, 1988, to a life insurance policy shall be deemed to be a separate life insurance policy issued at that time; and in respect of an insurer’s first taxation year that commences after June 17, 1987 and ends after 1987, the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act, as the case may be, in computing the insurer’s income for the immediately preceding year shall be determined as though the provisions that apply in determining that maximum amount for that first taxation year were applicable in respect of that immediately preceding year. For the purposes of paragraph (b) of the description of C in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, the provisions of the Act that are prescribed are paragraphs 12(1)(i), (i.1), (n), (n.1), (n.2), (n.3), (o), (t) and (v) and subsections 13(1), 59(3.2) and (3.3), 138(4.4) and 140(2). For the purposes of the description of D in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, prescribed arrangements in respect of an insurer are life insurance policies in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) that are group term life insurance policies or existing guaranteed life insurance policies; life insurance policies (other than life insurance policies in Canada) issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder); retirement compensation arrangements in respect of which the insurer is the custodian; and reinsurance arrangements under which the insurer has assumed or ceded risks insured under life insurance policies (other than policies issued by the insurer or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder). The amount in the description of D in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formula is the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of an excluded arrangement of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan; is the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of an excluded arrangement of the insurer in computing the insurer’s income for the immediately preceding year, if that amount were determined without reference to any policy loan; is the total of all amounts each of which is the amount of a benefit, determined on a net of reinsurance ceded basis, that has become payable by the insurer in the year in respect of an excluded arrangement of the insurer, to the extent that the benefit is deducted in computing the insurer’s income for the year under Part I of the Act from carrying on a life insurance business in Canada; is the total of all amounts each of which is the amount of a premium, determined on a net of reinsurance ceded basis, that has become receivable by the insurer in the year in respect of an excluded arrangement of the insurer, to the extent that the premium is included in computing the insurer’s income for the year under Part I of the Act from carrying on a life insurance business in Canada;

is the positive or negative amount, as the case may be, in respect of the insurer for the year determined by the formula is the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan or reinsurance arrangement, is the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan, is the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan or reinsurance arrangement, is the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan, is the total of all amounts each of which is the amount of a benefit that has become payable in the year by the insurer under a taxable life insurance policy of the insurer, is the total of all amounts each of which is the amount of a benefit, determined on a net of reinsurance ceded basis, that has become payable by the insurer under a taxable life insurance policy of the insurer, to the extent that it is deducted in computing the insurer’s income from carrying on a life insurance business in Canada for the year, is the total of all amounts each of which is the amount of a premium that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer, and is the total of all amounts each of which is the amount of a premium, determined on net of reinsurance ceded basis, that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer, to the extent that the premium is included in computing the insurer’s income from carrying on a life insurance business in Canada for the year; and is the positive or negative amount, as the case may be, determined by the formula is the total of all amounts each of which is an amount in respect of a group term life insurance policy equal to the lesser of (a)the amount of interest credited by the insurer in the year on account of the policy (other than interest payable in respect of the period ending on its first anniversary date after March 2, 1988), and the amount of interest credited by the insurer in the year on account of the policy (other than interest payable in respect of the period ending on its first anniversary date after March 2, 1988), and (b)the amount, if any, by which the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c.1) in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement, exceeds the maximum amount that would have been so deductible in computing the insurer’s income for the immediately preceding year, the amount, if any, by which the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c.1) in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement, exceeds the maximum amount that would have been so deductible in computing the insurer’s income for the immediately preceding year, is 80 per cent of the total of all amounts each of which is the amount in respect of a liability of the insurer, a benefit, a risk or a guarantee, in respect of which an amount is determined under paragraph 1401(1)(a), (c) or (d) for the year, in respect of a pre-funded group life insurance policy of the insurer, determined by multiplying (a)the rate of interest used in determining the amount under paragraph 1401(1)(a), (c) or (d), as the case may be, for the year in respect of the liability, benefit, risk or guarantee, as the case may be, the rate of interest used in determining the amount under paragraph 1401(1)(a), (c) or (d), as the case may be, for the year in respect of the liability, benefit, risk or guarantee, as the case may be, (b)the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the liability, benefit, risk or guarantee, as the case may be, in computing the insurer’s income for the year if that amount were determined without reference to any policy loan or reinsurance arrangement, and the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the liability, benefit, risk or guarantee, as the case may be, in computing the insurer’s income for the year if that amount were determined without reference to any policy loan or reinsurance arrangement, and (c)the maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the liability, benefit, risk or guarantee, as the case may be, in computing the insurer’s income for the immediately preceding taxation year if that amount were determined without reference to any policy loan or reinsurance arrangement, the maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the liability, benefit, risk or guarantee, as the case may be, in computing the insurer’s income for the immediately preceding taxation year if that amount were determined without reference to any policy loan or reinsurance arrangement, is the total of all amounts each of which is the amount determined for the year in respect of a taxable life insurance policy of the insurer by multiplying (a)the rate of interest used in determining the maximum amount deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in respect of the policy in computing the insurer’s income for the year, the rate of interest used in determining the maximum amount deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in respect of the policy in computing the insurer’s income for the year, (b)the maximum amount that would be deductible under subparagraph 138(3)(a)(ii) of the Act in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement, and the maximum amount that would be deductible under subparagraph 138(3)(a)(ii) of the Act in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement, and (c)the maximum amount that would have been deductible under subparagraph 138(3)(a)(ii) of the Act in respect of the policy in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any reinsurance arrangement, and the maximum amount that would have been deductible under subparagraph 138(3)(a)(ii) of the Act in respect of the policy in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any reinsurance arrangement, and is the total of all amounts each of which is an amount in respect of a group term life insurance policy equal to the amount, if any, by which (a)the total of all amounts determined in respect of the insurer under the description of O in respect of the policy for taxation years ending before the year the total of all amounts determined in respect of the insurer under the description of O in respect of the policy for taxation years ending before the year (b)the total of all amounts determined in respect of the insurer under the description of R in respect of the policy for taxation years ending before the year, and the total of all amounts determined in respect of the insurer under the description of R in respect of the policy for taxation years ending before the year, and (c)the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c.1) in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement. the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c.1) in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement. The amount of the term insurance component in the description of E in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formula is the amount determined by multiplying 0.0035 by the total of all amounts each of which is the amount of new insurance effected in the year (other than amounts rescinded in the year) under a taxable life insurance policy of the insurer; is the amount determined by multiplying 0.0002 by 1/2 of the total of (a)all amounts of insurance in force at the end of the year under taxable life insurance policies of the insurer (other than paid-up policies), and all amounts of insurance in force at the end of the year under taxable life insurance policies of the insurer (other than paid-up policies), and (b)all amounts of insurance in force at the end of the immediately preceding taxation year under taxable life insurance policies of the insurer (other than paid-up policies); all amounts of insurance in force at the end of the immediately preceding taxation year under taxable life insurance policies of the insurer (other than paid-up policies); is the amount determined by multiplying 0.20 by the net cost of insurance in respect of the insurer for the year; is the greater of (a)the lesser of $2,500,000 and the amount, if any, by which(i)the total of the amounts determined under the descriptions of A, B, C and E in respect of the insurer for the yearexceeds(ii)50 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement, and the lesser of $2,500,000 and the amount, if any, by which (i)the total of the amounts determined under the descriptions of A, B, C and E in respect of the insurer for the year the total of the amounts determined under the descriptions of A, B, C and E in respect of the insurer for the year (ii)50 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement, and 50 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement, and (b)the amount, if any, by which(i)the total of the amounts determined under the descriptions of A, B, C and E in respect of the insurer for the yearexceeds(ii)75 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement; (ii)75 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement; 75 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement; is the amount determined under the description of D in respect of the insurer for the immediately preceding taxation year; is such amount as the insurer may claim, not exceeding the positive amount, if any, determined by adding (a)the mortality experience of the insurer for the year, and the mortality experience of the insurer for the year, and (b)the amount determined under the description of G in respect of the insurer for the year; the amount determined under the description of G in respect of the insurer for the year; is the mortality loss adjustment account of the insurer for the immediately preceding year; and is 1 per cent of the total of all amounts each of which is the amount of a premium that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8). The amount of the amortization adjustment amount in the description of E in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formula is the total of all amounts each of which is the amount that would be the net level premium reserve for the year in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance agreement; is the total of all amounts each of which is the amount that would be the net level premium reserve for the immediately preceding taxation year in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement; is the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in computing the insurer’s income for the year, in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement; and is the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in computing the insurer’s income for the immediately preceding taxation year, in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement. The amount of guaranteed interest in the description of F in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is the total of all amounts each of which is the guaranteed interest for the year in respect of a life insurance policy in Canada (other than a policy that was at any time an excluded arrangement), or a pre-funded group life insurance policy, where the policy was issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) and the terms and conditions of the policy relating to premiums and benefits were determined on or before March 2, 1988, except that where, at any time after March 2, 1988, the terms and conditions of the policy relating to premiums and benefits have been changed (other than to give effect to terms and conditions which were determined prior to March 3, 1988 or pursuant to a specified transaction or event), the amount of guaranteed interest in respect of the policy for the year in which the change is made and any subsequent taxation year is deemed to be nil. The prescribed portion of an amount referred to in the description of G in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, for a taxation year is where the amount is in respect of a life insurance policy (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), 100 per cent of the amount; and For the purposes of the description of G in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, prescribed arrangements of an insurer are life insurance policies in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) that are group term life insurance policies or policies that, at any time, were existing guaranteed life insurance policies. Every official receipt issued by a particular person who is a registered agent of a registered party or an electoral district agent of a registered association, to an individual who makes a monetary contribution to the registered party or registered association, as the case may be, shall contain a statement that it is an official receipt for income tax purposes and shall, in a manner that cannot readily be altered, show clearly the name of the registered party or registered association, as the case may be; the serial number of the receipt; the name of the particular person, as recorded in the registry maintained by the Chief Electoral Officer under section 374 or 403.08 of the Canada Elections Act; the date on which the receipt is issued; the date on which the monetary contribution is received; the individual’s name and address; the amount of the monetary contribution; a description of the advantage, if any, in respect of the monetary contribution and the amount of that advantage; and the eligible amount of the monetary contribution. Subject to subsection (3), every official receipt issued by an official agent of a candidate to an individual who makes a monetary contribution to the candidate shall contain a statement that it is an official receipt for income tax purposes and shall, in a manner that cannot readily be altered, show clearly the name of the candidate, as it appears in the candidate’s nomination papers; the name of the official agent; the polling day; The information required by paragraph (2)(f) may be shown by use of a code on an official receipt form issued by the Chief Electoral Officer, provided that the Minister is advised of the meaning of the code used. For the purposes of subsections (1) and (2), an official receipt issued to replace an official receipt previously issued shall show clearly that it replaces the original receipt and, in addition to its own serial number, shall show the serial number of the receipt originally issued. A spoiled official receipt form shall be marked “cancelled” and, together with its duplicate, shall be filed by the electoral district agent, the official agent or the registered agent, as the case may be, together with the information return required to be filed with the Minister under subsection 230.1(2) of the Act. An official receipt form on which any of the following is incorrectly or illegibly entered is to be regarded as spoiled: [Repealed, 2013, c. 34, s. 389] The following definitions apply in this Part. Chief Electoral Officer means the person named as chief electoral officer or substitute chief electoral officer under section 13 or 14 of the Canada Elections Act. (directeur général des élections) nomination paper means, in respect of a candidate, a nomination paper filed in respect of the candidate under the Canada Elections Act, with the corrections, if any, made under that Act to the nomination paper after its filing. (acte de candidature) official receipt means a receipt issued for the purposes of subsection 127(3) of the Act containing the information that is required under that subsection. (reçu officiel) official receipt form means in the case of an official receipt issued by an electoral district agent or a registered agent under subsection 2000(1), any printed form that an electoral district agent or a registered agent, as the case may be, has that is capable of being completed, or that originally was intended to be completed, as an official receipt of the electoral district agent or registered agent; and in the case of an official receipt issued by an official agent under subsection 2000(2), the official form prescribed under section 477 of the Canada Elections Act. (formulaire de reçu officiel) In this Part, official agent,polling day and registered agent have the meanings assigned to them by the Canada Elections Act. Any election under subsection 83(1) of the Act in respect of a dividend payable before 1979 by a Canadian corporation shall be made by filing with the Minister the following documents: where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made; where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation; where paragraph (e) is not applicable, schedules showing the computation of the amount, immediately before the election, of the corporation’s tax-paid undistributed surplus on hand, if any, 1971 capital surplus on hand, if any, and 1971 undistributed income on hand, if any; and where subsection 83(3) of the Act is applicable, schedules showing the computation of the amount, immediately before the dividend became payable, of the corporation’s 1971 undistributed income on hand, if any. Any election under subsection 83(2) of the Act in respect of a dividend payable by a private corporation shall be made by filing with the Minister the following documents: where the election has been made under subsection 83(2) of the Act and paragraph (e) is not applicable, schedules showing the computation of the amount, immediately before the election, of the corporation’s capital dividend account, and 1971 undistributed income on hand, if any, if the dividend was payable on or prior to March 31, 1977; and where the election has been made under subsection 83(2) of the Act and subsection 83(3) of the Act is applicable, schedules showing the computation of the amount, immediately before the dividend became payable, of the corporation’s 1971 undistributed income on hand, if any, if the dividend was payable on or prior to March 31, 1977. [Repealed, SOR/88-165, s. 12] [Repealed, SOR/80-140, s. 3] Any retroactive election by a corporation under subsection 196(1.1) of the Act, in respect of a dividend payable before 1979 in respect of which an election was made under section 83 of the Act, shall be made by filing with the Minister the following documents: a schedule showing the computation of the amount, immediately before the time immediately before the specified election referred to in subsection 196(1.1) of the Act was made, of the corporation’s 1971 undistributed income on hand. [Repealed, SOR/78-604, s. 2] Any election under subsection 131(1) of the Act in respect of a dividend payable by a mutual fund corporation or an investment corporation shall be made by filing with the Minister the following documents: where paragraph (f) is not applicable, a schedule showing the computation of the amount, immediately before the election, of the corporation’s capital gains dividend account; and [Repealed, SOR/88-165, s. 13] where subsection 131(1.1) of the Act is applicable, a schedule showing the computation of the amount, immediately before the earlier of the date the dividend became payable, and the first day on which any part of the dividend was paid, of the corporation’s capital gains dividend account. Any election under subsection 130.1(4) of the Act in respect of a dividend payable by a mortgage investment corporation shall be made by filing with the Minister the following documents: the documents referred to in paragraphs 2104(a) to (c); and a schedule showing the computation of the capital gains dividend in accordance with paragraph 130.1(4)(a) of the Act. Any election under subsection 133(7.1) of the Act in respect of a dividend payable by a non-resident-owned investment corporation shall be made by filing with the Minister the following documents: where paragraph (e) is not applicable, a schedule showing the computation of the amount, immediately before the election, of the corporation’s capital gains dividend account; and where subsection 133(7.3) of the Act is applicable, a schedule showing the computation of the amount, immediately before the earlier of Any election under subsection 184(3) of the Act in respect of a dividend that was paid or payable by a corporation shall be made by filing with the Minister the following documents: a letter stating that the corporation elects under subsection 184(3) of the Act in respect of the said dividend, where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made, and their declaration that the election is made with the concurrence of all shareholders who received or were entitled to receive all or any portion of the said dividend and whose addresses were known to the corporation, where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election, and the declaration that the election is made with the concurrence of all shareholders who received or were entitled to receive all or any portion of the said dividend and whose addresses were known to the corporation by the person or persons legally entitled to administer the affairs of the corporation, a schedule showing the following information: the date of the notice of assessment of the tax that would, but for the election, have been payable under Part III of the Act, the full amount of the said dividend, the date the said dividend became payable, or the first day on which any part of the said dividend was paid if that day is earlier, the portion, if any, of the said dividend described in paragraph 184(3)(a) of the Act, the portion, if any, of the said dividend that the corporation is claiming for the purposes of an election in respect thereof under subsection 83(1) or (2), 130.1(4) or 131(1) of the Act pursuant to paragraph 184(3)(b) of the Act, and the portion, if any, of the said dividend that is deemed by paragraph 184(3)(c) of the Act to be a separate dividend that is a taxable dividend; and making an election in prescribed manner and prescribed form in respect of any amount claimed under paragraph 184(3)(b) of the Act. The following series of classes of capital stock are hereby prescribed for the purposes of subsection 83(6) of the Act to be tax-deferred preferred series: The Algoma Steel Corporation, Limited, 8% Tax Deferred Preference Shares Series A; Aluminum Company of Canada, Limited, $2.00 Tax Deferred Retractable Preferred Shares; Brascan Limited, 8 1/2% Tax Deferred Preferred Shares Series A; Canada Permanent Mortgage Corporation, 6 3/4% Tax Deferred Convertible Preference Shares Series A; and Cominco Ltd., $2.00 Tax Deferred Exchangeable Preferred Shares Series A. Where, under subsection 220(4) of the Act, the Minister has accepted, as security for payment of taxes, a mortgage or other security or guarantee, he may, by a document in writing, discharge such mortgage or other security or guarantee. For the purpose of subsection 227(4.2) of the Act, prescribed security interest, in relation to an amount deemed by subsection 227(4) of the Act to be held in trust by a person, means that part of a mortgage securing the performance of an obligation of the person, that encumbers land or a building, where the mortgage is registered pursuant to the appropriate land registration system before the time the amount is deemed to be held in trust by the person. For the purpose of subsection (1), where, at any time after 1999, the person referred to in subsection (1) fails to pay an amount deemed by subsection 227(4) of the Act to be held in trust by the person, as required under the Act, the amount of the prescribed security interest referred to in subsection (1) is deemed not to exceed the amount by which the amount, at that time, of the obligation outstanding secured by the mortgage exceeds the total of all amounts each of which is the value determined at the time of the failure, having regard to all the circumstances including the existence of any deemed trust for the benefit of Her Majesty pursuant to subsection 227(4) of the Act, of all the rights of the secured creditor securing the obligation, whether granted by the person or not, including guarantees or rights of set-off but not including the mortgage referred to in subsection (1), and all amounts applied after the time of the failure on account of the obligation, so long as any amount deemed under any enactment administered by the Minister, other than the Excise Tax Act, to be held in trust by the person, remains unpaid. For greater certainty, a prescribed security interest includes the amount of insurance or expropriation proceeds relating to land or a building that is the subject of a registered mortgage interest, adjusted after 1999 in accordance with subsection (2), but does not include a lien, a priority or any other security interest created by statute, an assignment or hypothec of rents or leases, or a mortgage interest in any equipment or fixtures that a mortgagee or any other person has the right absolutely or conditionally to remove or dispose of separately from the land or building. Any election by a taxpayer under subparagraph 40(2)(c)(ii) of the Act shall be made by attaching to the return of income required by section 150 of the Act to be filed by him for his taxation year in which the disposition of the land, including the property that was his principal residence, occurred, a letter signed by the taxpayer stating that he is electing under that subparagraph; stating the number of taxation years ending after the acquisition date (within the meaning assigned by paragraph 40(2)(b) of the Act) for which the property was his principal residence and during which he was resident in Canada; and giving a description of the property sufficient to identify it with the property designated as his principal residence. Any designation by a taxpayer under subparagraph 54(g)(iii) of the Act shall be made in the return of income required by section 150 of the Act to be filed by him for any taxation year of the taxpayer in which he has disposed of a property that is to be designated as his principal residence; or he has granted an option to acquire such property. attributed surplus of a non-resident insurer for a taxation year is the total of the insurer’s property and casualty surplus for the year, and either, if the insurer elects for the year in prescribed form and manner, 50% of the total of the amount that would have been determined at the end of the year in respect of the insurer under subparagraph (a)(ii) of the definition Canadian investment fund, and the amount that would have been determined at the end of the preceding taxation year in respect of the insurer under subparagraph (a)(ii) of the definition Canadian investment fund, each amount being calculated as if throughout the year and the preceding taxation year the insurer had been a life insurer resident in Canada and had not carried on any insurance business other than a life insurance business or an accident and sickness insurance business, or if the insurer does not elect under subparagraph (i) for the year, 120% of the total of all amounts each of which is 50% of the amount determined in accordance with regulations or guidelines made under Part XIII of the Insurance Companies Act to be the margin of assets in Canada over liabilities in Canada required to be maintained by the insurer as at the end of the year or as at the end of the preceding taxation year in respect of an insurance business carried on in Canada (other than a property and casualty insurance business). (surplus attribué) Canadian business property of an insurer for a taxation year in respect of an insurance business means if the insurer was resident in Canada throughout the year and did not carry on an insurance business outside Canada in the year, property used or held by it in the year in the course of carrying on the business in Canada; and in any other case, designated insurance property of the insurer for the year in respect of the business. (bien d’entreprise canadien) Canadian equity property of a person or partnership (in this definition referred to as the taxpayer) at any time means property of the taxpayer that is a share of the capital stock of, or an income bond or income debenture issued by, a person (other than a corporation affiliated with the taxpayer) resident in Canada or a Canadian partnership; or that proportion of property that is shares of the capital stock of an entity that is a corporation affiliated with the taxpayer or an interest in an entity that is a partnership or trust that the total value for the taxation year or fiscal period of the entity that includes that time of Canadian equity property of the entity the total value for the year or period of all property of the entity. (avoir canadien) Canadian investment fund of an insurer at the end of a taxation year means in the case of a life insurer resident in Canada, the total of the amount of the insurer’s Canadian reserve liabilities as at the end of the year (to the extent that the amount exceeds the amount of surplus appropriations included in that amount), and the greater of is 8% of the amount determined under subparagraph (i), is the total of all amounts each of which is the amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer as at the end of the year, is the total of all amounts each of which is the amount of an item reported as an asset that is owned by the insurer at the end of the year and is a share of the capital stock of, or a debt owing to the insurer by, a financial institution affiliated with the insurer, is the total of all amounts each of which is the amount as at the end of the year of a debt assumed or incurred by the insurer in respect of the acquisition of an asset described in E (or another property for which an asset described in E is a substituted property), is the amount of the insurer’s weighted Canadian liabilities as at the end of the year, and is the amount of the insurer’s weighted total liabilities as at the end of the year, and is the total of all amounts each of which is the amount of an item reported as an asset of the insurer as at the end of the year (other than an item that at no time in the year was used or held by the insurer in the course of carrying on an insurance business), (I)if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, and if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, and (II)in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy, in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy, is the total of all amounts each of which is the amount of an item reported as a liability of the insurer (other than policyholders’ liabilities or a liability that was at any time in the year connected with an asset that was not used or held by the insurer in the course of carrying on an insurance business at any time in the year) as at the end of the year in respect of an insurance business carried on by the insurer in the year, is the total of all amounts each of which is the contractual service margin for a group of insurance contracts of the insurer at the end of the year (other than a group of segregated fund policies), is the total of all amounts each of which is an amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer as at the end of the year, is the total of all amounts each of which is an amount of an item reported by the insurer as at the end of the year as a general provision or allowance for impairment in respect of investment property of the insurer for the year, is the amount of the insurer’s weighted total liabilities as at the end of the year; and in the case of a non-resident insurer, the total of the amount of the insurer’s Canadian reserve liabilities as at the end of the year, and the greatest of 8% of the amount determined under subparagraph (i), and the total of all amounts each of which is an amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer as at the end of the year in respect of an insurance business carried on by the insurer in Canada, the amount, if any, by which the total of the amount of the insurer’s surplus funds derived from operations as at the end of its preceding taxation year, the total determined under subclause (A)(II) to the extent not included in subclause (I), and the total of all amounts in respect of which the insurer made an election under subsection 219(4) or (5.2) of the Act, each of which is an amount included in the total determined in respect of the insurer under subparagraph 219(4)(a)(i.1) of the Act as at the end of its preceding taxation year the total of amounts determined in respect of the insurer under subparagraphs 219(4)(a)(ii), (iii), (iv) and (v) of the Act, as at the end of the year, and the amount of the insurer’s attributed surplus for the year, and if the amount under subclause (I) was determined without the taxpayer electing under subparagraph (b)(i) of the definition attributed surplus, the amount determined under subclause (A)(II). (fonds de placement canadien) Canadian investment property of an insurer for a taxation year means an investment property of the insurer for the year (other than, if the insurer is non-resident, property established by the insurer as not being effectively connected with its insurance businesses carried on in Canada in the year) that is, at any time in the year, real property situated in Canada; depreciable property situated in Canada or leased to a person resident in Canada for use inside and outside of Canada; a mortgage, a hypothec, an agreement of sale or any other form of indebtedness in respect of property described in paragraph (a) or (b); a Canadian equity property; a Canadian resource property; a deposit balance of the insurer that is in Canadian currency; a bond, debenture or other form of indebtedness, in Canadian currency, issued by a person resident in Canada or a Canadian partnership, or the government of Canada, a province or any of their political subdivisions; a property that is a share of the capital stock of a corporation resident in Canada that is affiliated with the insurer, if at least 75% of the total value for the year of all property of the corporation is attributable to property that would be Canadian investment property if it were owned by an insurer, or an interest in a Canadian partnership, or a trust resident in Canada, if at least 75% of the total value for the year of all property of the partnership or trust, as the case may be, is attributable to property that would be Canadian investment property if it were owned by an insurer; or an amount due or an amount accrued to the insurer on account of income that is from designated insurance property for the year that is Canadian investment property of the insurer for the year because of any of paragraphs (a) to (h), and is supporting the insurer’s Canadian insurance contract liabilities for the year. (bien de placement canadien) Canadian outstanding premiums[Repealed, 2022, c. 19, s. 85] Canadian reserve liabilities of an insurer as at the end of a taxation year means the amount determined by the formula is the total of the insurer’s liabilities and reserves including liabilities for segregated fund guarantees (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) reported as at the end of the year in respect of (a)life insurance policies in Canada, life insurance policies in Canada, (b)fire insurance policies issued or effected in respect of property situated in Canada, and fire insurance policies issued or effected in respect of property situated in Canada, and (c)insurance policies of any other class covering risks ordinarily within Canada at the time the policy was issued or effected; insurance policies of any other class covering risks ordinarily within Canada at the time the policy was issued or effected; is the total of all amounts each of which is the amount of an item reported by the insurer as an insurance contract asset as at the end of the year in respect of insurance policies described in any of paragraphs (a) to (c) of the description of A; is the total of all amounts each of which is an amount of funds withheld as at the end of the year by the insurer in respect of the reinsurance of a risk under an insurance policy described in any of paragraphs (a) to (c) of the description of A; is the total of all amounts each which is an amount recoverable as at the end of the year by the insurer under a funds withheld arrangement in respect of the reinsurance of a risk by the insurer under an insurance policy described in any of paragraphs (a) to (c) of the description of A; is the total of all amounts each of which is, in respect of a group of insurance contracts of the insurer at the end of the year, (a)the contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy that(i)is described in any of paragraphs (a) to (c) of the description of A,(ii)is(A)a life insurance policy in Canada,(B)a policy that insures risk in respect of a financial loss of a lender on a loan made on the security of real property,(C)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), or(D)a policy in respect of title insurance (as defined in subsection 1408(1)), and(iii)is not a segregated fund policy, and the contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy that (i)is described in any of paragraphs (a) to (c) of the description of A, is described in any of paragraphs (a) to (c) of the description of A, (ii)is(A)a life insurance policy in Canada,(B)a policy that insures risk in respect of a financial loss of a lender on a loan made on the security of real property,(C)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), or(D)a policy in respect of title insurance (as defined in subsection 1408(1)), and (A)a life insurance policy in Canada, a life insurance policy in Canada, (B)a policy that insures risk in respect of a financial loss of a lender on a loan made on the security of real property, a policy that insures risk in respect of a financial loss of a lender on a loan made on the security of real property, (C)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), or a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), or (D)a policy in respect of title insurance (as defined in subsection 1408(1)), and a policy in respect of title insurance (as defined in subsection 1408(1)), and (iii)is not a segregated fund policy, and is not a segregated fund policy, and (b)in any other case, the amount that would be the contractual service margin for the group if the amount excluded the portion that is in respect of policies other than policies that meet the conditions in subparagraphs (a)(i) to (iii); in any other case, the amount that would be the contractual service margin for the group if the amount excluded the portion that is in respect of policies other than policies that meet the conditions in subparagraphs (a)(i) to (iii); (a)the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount is in respect of the reinsurance of(i)a risk under a policy other than a policy that meets the condition in subparagraph (a)(i) of the description of B, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount is in respect of the reinsurance of (i)a risk under a policy other than a policy that meets the condition in subparagraph (a)(i) of the description of B, or a risk under a policy other than a policy that meets the condition in subparagraph (a)(i) of the description of B, or (ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of either(i)a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of B, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply;

and in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of either (i)a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of B, or a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of B, or (ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply; and an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply; and (a)if no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of B, the contractual service margin for the group, and if no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of B, the contractual service margin for the group, and (b)in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of B. (passif de réserve canadienne) in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of B. (passif de réserve canadienne) deposit balance of an insurer means an amount standing to the insurer’s credit as or on account of amounts deposited with a corporation authorized to accept deposits or to carry on the business of offering to the public its services as a trustee. (solde de dépôt) equity limit of an insurer for a taxation year means in respect of a life insurer resident in Canada, that proportion of the total of all amounts each of which is the value for the year of an equity property of the insurer that the insurer’s weighted Canadian liabilities as at the end of the year the insurer’s weighted total liabilities as at the end of the year; in respect of a non-resident insurer (other than a life insurer), 25% of the total of the insurer’s mean Canadian reserve liabilities for the year, and the insurer’s property and casualty surplus for the year; and in respect of a non-resident life insurer, the total of if the insurer makes an election referred to in subparagraph (b)(i) of the definition attributed surplus for the year, the greater of that proportion of the total of all amounts each of which is the value for the year of an equity property of the insurer that the insurer’s weighted total liabilities as at the end of year, and 8% of the insurer’s mean Canadian investment fund for the year, or if the insurer does not make this election for the year, 8% of the insurer’s mean Canadian investment fund for the year, 25% of the insurer’s mean Canadian reserve liabilities for the year, and 25% of the insurer’s property and casualty surplus for the year. (plafond des avoirs) equity property of a person or partnership (in this definition referred to as the “taxpayer”) at any time means property of the taxpayer that is a share of the capital stock of, or an income bond or income debenture, issued by, another person (other than a corporation affiliated with the taxpayer) or partnership; or that proportion of property that is shares of the capital stock of a corporation affiliated with the taxpayer or an interest in a partnership or trust that the total value for the taxation year or fiscal period of the corporation, partnership or trust that includes that time of equity property of the corporation, partnership or trust, as the case may be, the total value for the year or period of all property of the corporation, partnership or trust, as the case may be. (avoir) financial institution means a corporation that is a corporation described in any of paragraphs (a) to (e) of the definition restricted financial institution in subsection 248(1) of the Act; or a particular corporation all or substantially all of the value of the assets of which is attributable to shares or indebtedness of one or more corporations described in paragraph (a) to which the particular corporation is affiliated. (institution financière) foreign policy loan[Repealed, 2022, c. 19, s. 85] gross Canadian life investment income of a life insurer for a taxation year means the amount, if any, by which the insurer’s gross investment revenue for the year, to the extent that the revenue is from Canadian business property of the insurer for the year in respect of the insurer’s life insurance business, the amount included in computing the insurer’s income for the year under paragraph 138(9)(b) of the Act, the portion of the amount deducted under paragraph 20(1)(l) of the Act in computing the insurer’s income for its preceding taxation year that was in respect of Canadian business property of the insurer for that year in respect of the insurer’s life insurance business, the amount included under section 142.4 of the Act in computing the insurer’s income for the year in respect of property disposed of by the insurer that was, in the taxation year of disposition, Canadian business property of the insurer for that year in respect of the insurer’s life insurance business, the insurer’s gain for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business, other than a capital property or a property in respect of the disposition of which section 142.4 of the Act applies, or the insurer’s taxable capital gain for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business the portion of the amount deducted under paragraph 20(1)(l) of the Act in computing the insurer’s income for the year that is in respect of Canadian business property of the insurer for the year in respect of the insurer’s life insurance business, the amount deductible under section 142.4 of the Act in computing the insurer’s income for the year in respect of a property disposed of by the insurer that was, in the taxation year of disposition, a Canadian business property of the insurer for that year in respect of the insurer’s life insurance business, the insurer’s loss for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business, other than a capital property or a property in respect of the disposition of which section 142.4 of the Act applies, or the insurer’s allowable capital loss for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business. (revenus bruts de placements en assurance-vie au Canada) investment property of an insurer for a taxation year means non-segregated property owned by the insurer, other than a policy loan payable to the insurer, at any time in the year that is property acquired by the insurer for the purpose of earning gross investment revenue in the year, other than property that is property, a proportion of which is investment property of the insurer for the year because of paragraph (b), a share of the capital stock of, or a debt owing to the insurer by, a corporation affiliated with the insurer, or an interest in a partnership or trust; that proportion, if any, of property of the insurer that is land, depreciable property or property that would have been depreciable property if it had been situated in Canada and used or held by the insurer in the year in the course of carrying on an insurance business in Canada that the use made of the property by the insurer in the year for the purpose of earning gross investment revenue in the year the whole use made of the property by the insurer in the year; if the insurer is a life insurer, property described in any of paragraphs 138(4.4)(a) to (d) of the Act; either a share of the capital stock of, or a debt owing to the insurer by, a corporation (other than a corporation that is a financial institution) affiliated with the insurer, if the total value for the year of all investment property of the corporation for the year is not less than 75% of the total value for the year of all its property, or an interest in a partnership or trust, if the total value for the year of all investment property of the partnership or trust, as the case may be, for the year is not less than 75% of the total value for the year of all its property, and for the purpose of this paragraph (other than for the purpose of determining whether a corporation is a financial institution) every corporation, partnership and trust is deemed to be an insurer; or is from designated insurance property for the year that is investment property of the insurer for the year because of any of paragraphs (a) to (d), and is supporting the insurer’s Canadian insurance contract liabilities for the year. (bien de placement) mean Canadian outstanding premiums[Repealed, 2022, c. 19, s. 85] mean Canadian reserve liabilities of an insurer for a taxation year means 50% of the total of its Canadian reserve liabilities as at the end of the year, and its Canadian reserve liabilities as at the end of its preceding taxation year. (moyenne du passif de réserve canadienne) mean maximum tax actuarial reserve in respect of a particular class of life insurance policies of an insurer for a taxation year means 50% of the total of its maximum tax actuarial reserve for that class of policies for the year, and its maximum tax actuarial reserve for that class of policies for its preceding taxation year. (provision actuarielle maximale moyenne aux fins d’impôt) mean policy loans[Repealed, 2022, c. 19, s. 85] outstanding premiums[Repealed, 2022, c. 19, s. 85] policyholders’ liabilities of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act. (obligation envers les titulaires de polices) property and casualty surplus of an insurer for a taxation year means the amount determined by the formula is the total of all amounts each of which is the liability for remaining coverage for a group of insurance contracts of the insurer at the end of the year that is in respect of property and casualty insurance; is the total of all amounts each of which is the liability for remaining coverage for a group of insurance contracts of the insurer at the end of the preceding taxation year that is in respect of property and casualty insurance; is the total of all amounts each of which is the liability for incurred claims for a group of insurance contracts of the insurer at the end of the year that is in respect of property and casualty insurance; is the total of all amounts each of which is the liability for incurred claims for a group of insurance contracts of the insurer at the end of the preceding taxation year that is in respect of property and casualty insurance; (a)if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under a policy other than a policy that is in respect of property and casualty insurance, the reinsurance contract held amount for the group, and if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under a policy other than a policy that is in respect of property and casualty insurance, the reinsurance contract held amount for the group, and (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than policies in respect of property and casualty insurance; in any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than policies in respect of property and casualty insurance; is the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the preceding taxation year, that is is the insurer’s investment valuation reserve as at the end of the year in respect of its property and casualty insurance business; and is the insurer’s investment valuation reserve as at the end of its preceding taxation year in respect of its property and casualty insurance business. (excédent provenant de l’assurance de dommages) reinsurance recoverable[Repealed, 2022, c. 19, s. 85] value for a taxation year of a property of a person or partnership (in this definition referred to as the “owner”) means [Repealed, 2022, c. 19, s. 85] in the case of a property that was not owned by the owner throughout the year, the amount, if any, by which that proportion of the carrying value of the property as at the end of the preceding taxation year, if the property was owned by the owner at that time, the carrying value of the property as at the end of the year, if the property was owned by the owner at that time and not at the end of the preceding taxation year, and in any other case, the cost of the property to the owner when it was acquired, that the number of days that are in the year and at the end of which the owner owned the property is of the number of days in the year, the amount obtained when the interest payable by the owner, for the period in the year during which the property was held by the owner, on debt assumed or incurred by the owner in respect of the acquisition of the property (or another property for which the property is a substituted property) is divided by the average rate of interest payable by the owner (expressed as an annual rate) on the debt for the year; and in the case of any other property, the amount, if any, by which 50% of the total of the carrying value of the property as at the end of the year, and the carrying value of the property as at the end of the preceding taxation year the amount obtained when the interest payable by the owner, for the period in the year during which the property was held by the owner, on debt assumed or incurred by the owner in respect of the acquisition of the property (or another property for which the property is a substituted property) is divided by the average rate of interest payable by the owner (expressed as an annual rate) on the debt for the year. (valeur) weighted Canadian liabilities of an insurer as at the end of a taxation year means the amount determined by the formula is the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer in Canada and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year in respect of (a)a life insurance policy in Canada (other than an annuity), or a life insurance policy in Canada (other than an annuity), or (b)an accident and sickness insurance policy, an accident and sickness insurance policy, is the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year, that is (a)the contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy that(i)is described in paragraph (a) or (b) of the description of C,(ii)is(A)a life insurance policy, or(B)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)),(iii)is not a segregated fund policy, and(iv)is in respect of an insurance business carried on by the insurer in Canada, and (i)is described in paragraph (a) or (b) of the description of C, is described in paragraph (a) or (b) of the description of C, (ii)is(A)a life insurance policy, or(B)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), (A)a life insurance policy, or a life insurance policy, or (B)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), (iv)is in respect of an insurance business carried on by the insurer in Canada, and is in respect of an insurance business carried on by the insurer in Canada, and (b)in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv), in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv), (a)the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of(i)a risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of D, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of (i)a risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of D, or a risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of D, or (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of either(i)a risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of D, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (a)if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of D, the contractual service margin for the group, and if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of D, the contractual service margin for the group, and (b)in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of D; and in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of D; and is the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer in Canada and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year except to the extent the liability is in respect of (a)an insurance policy described in paragraph (a) or (b) of the description of C, or an insurance policy described in paragraph (a) or (b) of the description of C, or (b)a debt incurred or assumed by the insurer to acquire a property of the insurer, a debt incurred or assumed by the insurer to acquire a property of the insurer, (a)the contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy that(i)is not described in paragraph (a) or (b) of the description of C,(ii)is(A)a life insurance policy,(B)a policy in respect of mortgage insurance (as defined in subsection 1408(1)), or(C)a policy in respect of title insurance (as defined in subsection 1408(1)),(iii)is not a segregated fund policy, and(iv)is in respect of an insurance business carried on by the insurer in Canada, and (i)is not described in paragraph (a) or (b) of the description of C, is not described in paragraph (a) or (b) of the description of C, (ii)is(A)a life insurance policy,(B)a policy in respect of mortgage insurance (as defined in subsection 1408(1)), or(C)a policy in respect of title insurance (as defined in subsection 1408(1)), (A)a life insurance policy, a life insurance policy, (B)a policy in respect of mortgage insurance (as defined in subsection 1408(1)), or a policy in respect of mortgage insurance (as defined in subsection 1408(1)), or (C)a policy in respect of title insurance (as defined in subsection 1408(1)), a policy in respect of title insurance (as defined in subsection 1408(1)), (a)the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of(i)a risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of H, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (i)a risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of H, or a risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of H, or (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of either(i)a risk under a policy other than a policy that meets the conditions under subparagraphs (a)(i) and (iv) of the description of H, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (a)if no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of H, the contractual service margin for the group, and if no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of H, the contractual service margin for the group, and (b)in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of H. (passif canadien pondéré) in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iv) of the description of H. (passif canadien pondéré) weighted total liabilities of an insurer as at the end of a taxation year means the amount determined by the formula is the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year in respect of (a)a life insurance policy (other than an annuity), or a life insurance policy (other than an annuity), or (a)the contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy that(i)is described in paragraph (a) or (b) of the description of C,(ii)is(A)a life insurance policy, or(B)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), and(iii)is not a segregated fund policy, and (ii)is(A)a life insurance policy, or(B)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), and (B)a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), and a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), and (b)in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii), in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii), (a)the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of(i)a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of D, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (i)a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of D, or a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of D, or (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of either(i)a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of D, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (a)if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of D, the contractual service margin for the group, and if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of D, the contractual service margin for the group, and (b)in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of D; and in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of D; and is the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year except to the extent the liability is in respect of (a)the contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy that(i)is not described in paragraph (a) or (b) of the description of C,(ii)is(A)a life insurance policy,(B)a policy in respect of mortgage insurance (as defined in subsection 1408(1)), or(C)a policy in respect of title insurance (as defined in subsection 1408(1)), and(iii)is not a segregated fund policy, and (ii)is(A)a life insurance policy,(B)a policy in respect of mortgage insurance (as defined in subsection 1408(1)), or(C)a policy in respect of title insurance (as defined in subsection 1408(1)), and (C)a policy in respect of title insurance (as defined in subsection 1408(1)), and (a)the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of(i)a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (i)a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, or a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, or (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of either(i)a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, or(ii)an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (a)if no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of H, the contractual service margin for the group, and if no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of H, the contractual service margin for the group, and (b)in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of H. (passif total pondéré) in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of H. (passif total pondéré) For the purposes of this Part, the carrying value of a taxpayer’s property for a taxation year, except as otherwise provided in this Part, means if the taxpayer is an insurer, the amounts reflected in the taxpayer’s non-consolidated balance sheet as at the end of the taxation year accepted (or, if that non-consolidated balance sheet was not prepared, the taxpayer’s non-consolidated balance sheet as at the end of the year that would have been accepted) by the Superintendent of Financial Institutions, in the case of an insurer that is required under the Insurance Companies Act to report to that Superintendent, or by the superintendent of insurance or other similar officer or authority of the province under the laws of which the insurer is incorporated or otherwise formed, in the case of an insurer that is required by law to report to that officer or authority; and in any other case, the amounts that would be reflected in the taxpayer’s non-consolidated balance sheet as at the end of the taxation year if that balance sheet were prepared in accordance with generally accepted accounting principles. For the purposes of subsection 138(14) of the Act, the expressions “Canadian investment fund for a taxation year”, “specified Canadian assets” and “value for the taxation year” have the meanings prescribed for them by subsection 2404(1) as it read in its application to the 1977 taxation year; and of subsection 219(7) of the Act, the expressions “attributed surplus” and “Canadian investment fund” have the meaning prescribed for them by subsection (1). For the purposes of this Part, other than subsection 2401(6), an asset of an insurer is deemed not to have been used or held by the insurer in a taxation year in the course of carrying on an insurance business if the asset is owned by the insurer at the end of the year; and is a share of the capital stock of, or a debt owing to the insurer by, a financial institution affiliated with the insurer during each of the days in the year during which the insurer owned the asset. For the purposes of clause (a)(ii)(B) of the definition Canadian investment fund in subsection (1), an asset of an insurer is deemed not to have been used or held by the insurer in a taxation year in the course of carrying on an insurance business if the asset goodwill, or of the Act if the obligations were insurance policies in Canada, or (ii) real property (or the portion of real property) owned by the insurer and occupied by the insurer for the purposes of carrying on an insurance business. For greater certainty, a particular property or a particular proportion of a property shall not, directly or indirectly, be used or included more than once in determining, for a particular taxation year, the Canadian equity property or the equity property of a person or partnership. A computation that is required to be made under this Part in respect of an insurer’s taxation year that included September 30, 2006 and that is relevant to a computation (in this subsection referred to as the “transition year computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after that date shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation. A computation that is required to be made under this Part in respect of an insurer’s taxation year that included December 31, 2010 and that is relevant to a computation (in this subsection referred to as the “transition year computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after that date shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation. A computation that is required to be made under this Part in respect of an insurer’s taxation year that immediately precedes the first taxation year that begins after 2022 and that is relevant to a computation (in this subsection referred to as the “transition year computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after 2022 shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation. For the purposes of the definition designated insurance property in subsection 138(12) of the Act, designated insurance property of an insurer for a taxation year means property that is designated in accordance with subsections (2) to (7) for the year by the insurer in its return of income under Part I of the Act for the year; or if the Minister determines that the insurer has not made a designation that is in accordance with the prescribed rules found in this section, by the Minister. For the purposes of subsection (1), an insurer, or the Minister if paragraph (1)(b) applies, shall designate for a taxation year investment property of the insurer for the year with a total value for the year equal to the insurer’s mean Canadian reserve liabilities for the year in respect of its life insurance business in Canada; shall designate for a taxation year investment property of the insurer for the year with a total value for the year equal to the insurer’s mean Canadian reserve liabilities for the year in respect of its accident and sickness insurance business in Canada; shall designate for a taxation year in respect of the insurer’s insurance business in Canada (other than a life insurance business or an accident and sickness insurance business) investment property of the insurer for the year with a total value for the year equal to the amount of the insurer’s mean Canadian reserve liabilities for the year in respect of that business; if the insurer’s mean Canadian investment fund for a taxation year the total value for the year of all property required to be designated under paragraph (a), (b) or (c) for the year, shall designate for the year, in respect of a particular insurance business that the insurer carries on in Canada, investment property of the insurer for the year with a total value for the year equal to that excess; for greater certainty, under each of paragraphs (a), (b), (c) and (d), shall designate for the taxation year investment property with a total value for the year equal to the amount, if any, determined under each of those paragraphs, and no investment property, or portion of investment property, designated for the year under any of paragraphs (a) to (d) may be designated for the year under any other paragraph; and may designate for a taxation year a portion of a particular investment property if the designation of the entire property would result in a designation of property with a total value for the year exceeding that required to be designated under paragraphs (a) to (d) for the year. For the purpose of subsection (2), investment property of an insurer for a taxation year shall be designated for the year in respect of the insurer’s insurance businesses carried on by it in Canada in the following order: Canadian investment property of the insurer for the year owned by the insurer at the beginning of the year that was designated insurance property of the insurer for its preceding taxation year, except that such property shall be designated in the following order: real and depreciable property, mortgages, hypothecs, agreements of sale and other forms of indebtedness in respect of real property situated in Canada or depreciable property situated in Canada or depreciable property leased to a person resident in Canada for use inside and outside of Canada, and other property; investment property (other than Canadian investment property of the insurer for the year) owned by the insurer at the beginning of the year that was designated insurance property of the insurer for its preceding taxation year; Canadian investment property of the insurer for the year (other than property included in paragraph (a)) in the order set out in subparagraphs (a)(i) to (iii); and other investment property. Notwithstanding subsections (2) and (3), the total value for the year of Canadian equity property of an insurer that may be designated in respect of the insurer’s insurance businesses for a taxation year shall not exceed the insurer’s equity limit for the year; and for a taxation year a portion of a particular Canadian equity property of an insurer may be designated if the designation of the entire property would result in a designation of Canadian equity property of the insurer for the year with a total value for the year exceeding the insurer’s equity limit for the year. For the purposes of subsection (3), property acquired by an insurer in a particular taxation year is deemed to be designated insurance property of the insurer in respect of a particular business of the insurer for its preceding taxation year and to have been owned by the insurer at the beginning of the particular taxation year if the property was acquired by reason of a transaction to which any of sections 51, 51.1, 85.1 and 86 of the Act applies, a transaction in respect of which an election is made under subsection 85(1) or (2) of the Act, an amalgamation (within the meaning assigned by subsection 87(1) of the Act), or (iv) a winding-up of a corporation to which subsection 88(1) of the Act applies, and as consideration for or in exchange for property of the insurer that was designated insurance property of the insurer in respect of the particular insurance business for its preceding taxation year. Non-segregated property owned by an insurer at any time in a taxation year (other than investment property of the insurer for the year) that is used or held by the insurer in the year in the course of carrying on an insurance business in Canada is deemed to be designated insurance property of the insurer for the year in respect of the business. Notwithstanding any other provision in this Part, a policy loan payable to an insurer is not designated insurance property of the insurer. [Repealed, 2013, c. 34, s. 391] An election referred to in subsection 219(4) of the Act shall be made by a non-resident insurer in respect of a taxation year by filing, with its return of income required by subsection 150(1) of the Act to be filed for the year, a letter in duplicate stating the insurer elects under subsection 219(4) of the Act; and the amount the insurer elects to deduct under subsection 219(4) of the Act. Where a joint election referred to in subsection 219(5.2) of the Act is made by a non-resident insurer and a qualified related corporation (within the meaning assigned by subsection 219(8) of the Act) of the non-resident insurer in respect of a taxation year of the non-resident insurer, it shall be made by filing, with the non-resident insurer’s return of income required by subsection 150(1) of the Act to be filed for the year in which the event to which the election relates occurred, a letter in duplicate signed by an authorized officer of the non-resident insurer and an authorized officer of the qualified related corporation stating whether paragraphs 219(5.2)(a) and (b) of the Act apply; and the amount elected under subsection 219(5.2) of the Act. [Repealed, 2013, c. 34, s. 392] For the purpose of subsection 138(4.4) of the Act, the amount prescribed in respect of an insurer’s cost or capital cost, as the case may be, of a property for a period in a taxation year is the amount determined by the formula is the average annual rate of interest determined by reference to rates of interest prescribed in section 4301 for the months or portion thereof in the period; is the amount, if any, by which, the average cost or average capital cost, as the case may be, of the property for the period exceeds the average amount of debt relating to the acquisition of the property outstanding during the period that bears a fair market interest rate and, for that purpose, (a)the average cost or average capital cost, as the case may be, of a property is the total of(i)the aggregate of all amounts each of which is the cost or capital cost, as the case may be, if any, immediately before the beginning of the period in respect of the property, and(ii)the aggregate of all amounts each of which is the proportion of any expenditure incurred on any day in the period in respect of the cost or capital cost, as the case may be, of the property that(A)the number of days from that day to the end of the periodis of(B)the number of days in the period, and the average cost or average capital cost, as the case may be, of a property is the total of (i)the aggregate of all amounts each of which is the cost or capital cost, as the case may be, if any, immediately before the beginning of the period in respect of the property, and the aggregate of all amounts each of which is the cost or capital cost, as the case may be, if any, immediately before the beginning of the period in respect of the property, and (ii)the aggregate of all amounts each of which is the proportion of any expenditure incurred on any day in the period in respect of the cost or capital cost, as the case may be, of the property that(A)the number of days from that day to the end of the periodis of(B)the number of days in the period, and the aggregate of all amounts each of which is the proportion of any expenditure incurred on any day in the period in respect of the cost or capital cost, as the case may be, of the property that (A)the number of days from that day to the end of the period the number of days from that day to the end of the period (B)the number of days in the period, and the number of days in the period, and (b)the average amount of debt relating to the acquisition of a property is the amount, if any, by which the total of(i)the aggregate of all amounts each of which is an indebtedness relating to the acquisition that was outstanding at the beginning of the period, and(ii)the aggregate of all amounts each of which is the proportion of an indebtedness relating to the acquisition that was incurred on any day in the period that(A)the number of days from that day to the end of the periodis of(B)the number of days in the period,exceeds(iii)the aggregate of all amounts each of which is the proportion of an amount that was paid in respect of any indebtedness referred to in subparagraph (i) or (ii) on any day in the period (other than a payment of interest in respect thereof) that(A)the number of days from that day to the end of the periodis of(B)the number of days in the period;

the average amount of debt relating to the acquisition of a property is the amount, if any, by which the total of (i)the aggregate of all amounts each of which is an indebtedness relating to the acquisition that was outstanding at the beginning of the period, and the aggregate of all amounts each of which is an indebtedness relating to the acquisition that was outstanding at the beginning of the period, and (ii)the aggregate of all amounts each of which is the proportion of an indebtedness relating to the acquisition that was incurred on any day in the period that(A)the number of days from that day to the end of the periodis of(B)the number of days in the period, the aggregate of all amounts each of which is the proportion of an indebtedness relating to the acquisition that was incurred on any day in the period that (B)the number of days in the period, the number of days in the period, (iii)the aggregate of all amounts each of which is the proportion of an amount that was paid in respect of any indebtedness referred to in subparagraph (i) or (ii) on any day in the period (other than a payment of interest in respect thereof) that(A)the number of days from that day to the end of the periodis of(B)the number of days in the period; the aggregate of all amounts each of which is the proportion of an amount that was paid in respect of any indebtedness referred to in subparagraph (i) or (ii) on any day in the period (other than a payment of interest in respect thereof) that (B)the number of days in the period; the number of days in the period; is the number of days in the period; and is the income derived from the property in the period by the person or partnership that owned the property. Subject to subsection (2), the amount prescribed in respect of an insurer for a taxation year for the purposes of paragraph 138(9)(b) of the Act shall be the amount determined by the formula is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (3); is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of the insurer’s investment property for the year that is designated insurance property of the insurer for the year; is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4.1) in respect of property disposed of by the insurer in a taxation year for which it was designated insurance property of the insurer; and is the amount claimed by the insurer for the year in respect of any balance of its cumulative excess account at the end of the year. Where an amount computed under subsection (1) in respect of an insurer is a negative amount, that amount shall be deemed to be nil. The positive or negative amount, as the case may be, determined under this subsection in respect of an insurer for a taxation year shall be if the value for the year of the insurer’s foreign investment property that is designated insurance property for the year is not greater than 5% of the amount of the insurer’s mean Canadian investment fund for the year and the insurer so elects in its return of income under Part I of the Act for the year, the amount determined by the formula or in any other case, the amount determined by the formula is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of Canadian investment property (other than Canadian equity property) owned by the insurer at any time in the year; is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4.1) in respect of Canadian investment property (other than Canadian equity property) disposed of by the insurer in the year or a preceding taxation year; is the total value for the year of Canadian investment property (other than Canadian equity property and any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) owned by the insurer at any time in the year; is the total value for the year of the insurer’s Canadian investment property for the year (other than Canadian equity property and any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) that is designated insurance property of the insurer for the year; is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of Canadian investment property that is Canadian equity property owned by the insurer at any time in the year; is the total value for the year of Canadian investment property that is Canadian equity property (other than any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) owned by the insurer at any time in the year; is the total value for the year of the insurer’s Canadian investment property (other than any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) for the year that is Canadian equity property that is designated insurance property of the insurer for the year; is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of foreign investment property owned by the insurer at any time in the year; is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4.1) in respect of foreign investment property disposed of by the insurer in the year or a preceding taxation year; is the total value for the year of foreign investment property (other than any property described in paragraph (e) of the definition investment property in subsection 2400(1)) owned by the insurer at any time in the year; and is the total value for the year of the insurer’s foreign investment property (other than any property described in paragraph (e) of the definition investment property in subsection 2400(1)) that is designated insurance property of the insurer for the year. The positive or negative amount, as the case may be, determined under this subsection in respect of an insurer for a taxation year in respect of property shall be the amount determined by the formula is the total of the following amounts determined in respect of the property for the year, or that would be determined in respect of the property for the year if the property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which the property was held by the insurer: (a)the insurer’s gross investment revenue for the year (other than taxable dividends that were or would be deductible in computing the insurer’s taxable income for the year under section 112 or subsection 138(6) of the Act) derived from the property, the insurer’s gross investment revenue for the year (other than taxable dividends that were or would be deductible in computing the insurer’s taxable income for the year under section 112 or subsection 138(6) of the Act) derived from the property, (b)[Repealed, SOR/2009-222, s. 4] [Repealed, SOR/2009-222, s. 4] (c)all amounts that were or would be included in computing the insurer’s taxable capital gains for the year from the disposition of the property, all amounts that were or would be included in computing the insurer’s taxable capital gains for the year from the disposition of the property, (c.1)all amounts that were or would be included under paragraph 142.4(5)(e) of the Act in respect of the property in computing the insurer’s income for the year, all amounts that were or would be included under paragraph 142.4(5)(e) of the Act in respect of the property in computing the insurer’s income for the year, (d)all amounts that were or would be included in computing the insurer’s income for the year as gains from the disposition of such of the property as is not capital property or a specified debt obligation (as defined in subsection 142.2(1) of the Act), all amounts that were or would be included in computing the insurer’s income for the year as gains from the disposition of such of the property as is not capital property or a specified debt obligation (as defined in subsection 142.2(1) of the Act), (e)all amounts that were or would be included in computing the insurer’s income for the year under subsection 13(1) of the Act in respect of the property, all amounts that were or would be included in computing the insurer’s income for the year under subsection 13(1) of the Act in respect of the property, (f)all amounts that were or would be included in computing the insurer’s income for the year under paragraph 12(1)(d), (d.1) or (i) of the Act in respect of the property, all amounts that were or would be included in computing the insurer’s income for the year under paragraph 12(1)(d), (d.1) or (i) of the Act in respect of the property, (g)all amounts that were or would be included in computing the insurer’s income for the year under subsection 59(3.2) or (3.3) of the Act in respect of the property, and all amounts that were or would be included in computing the insurer’s income for the year under subsection 59(3.2) or (3.3) of the Act in respect of the property, and (h)[Repealed, 2016, c. 12, s. 80] [Repealed, 2016, c. 12, s. 80] (i)all other amounts that were or would be included in computing the insurer’s income for the year in respect of the property otherwise than because of subsection 142.4(4) of the Act; and all other amounts that were or would be included in computing the insurer’s income for the year in respect of the property otherwise than because of subsection 142.4(4) of the Act; and (a)all amounts that were or would be included in computing the insurer’s allowable capital losses for the year from the disposition of the property, all amounts that were or would be included in computing the insurer’s allowable capital losses for the year from the disposition of the property, (a.1)all amounts that were or would be deductible under paragraph 142.4(5)(f) of the Act in respect of the property in computing the insurer’s income for the year, all amounts that were or would be deductible under paragraph 142.4(5)(f) of the Act in respect of the property in computing the insurer’s income for the year, (b)all amounts that were or would be deductible in computing the insurer’s income for the year as losses from the disposition of such of the property as is not capital property or a specified debt obligation (as defined in subsection 142.2(1) of the Act), all amounts that were or would be deductible in computing the insurer’s income for the year as losses from the disposition of such of the property as is not capital property or a specified debt obligation (as defined in subsection 142.2(1) of the Act), (c)[Repealed, SOR/2009-222, s. 4] (d)all amounts that were or would be deductible in computing the insurer’s income for the year under paragraph 20(1)(a) of the Act in respect of the capital cost of the property or under paragraphs 20(1)(c) and (d) of the Act in respect of interest paid or payable on borrowed money used to acquire the property, all amounts that were or would be deductible in computing the insurer’s income for the year under paragraph 20(1)(a) of the Act in respect of the capital cost of the property or under paragraphs 20(1)(c) and (d) of the Act in respect of interest paid or payable on borrowed money used to acquire the property, (e)where any such property is rental property or leasing property (within the meaning assigned by subsections 1100(14) and (17), respectively), all amounts that were or would be deductible in computing the insurer’s income for the year in respect of expenses directly related to the earning of rental income derived from the property, where any such property is rental property or leasing property (within the meaning assigned by subsections 1100(14) and (17), respectively), all amounts that were or would be deductible in computing the insurer’s income for the year in respect of expenses directly related to the earning of rental income derived from the property, (f)all amounts that were or would be deductible by the insurer in computing the insurer’s income for the year under paragraph 20(1)(l), (l.1) or (p) of the Act as a reserve or bad debt in respect of the property, all amounts that were or would be deductible by the insurer in computing the insurer’s income for the year under paragraph 20(1)(l), (l.1) or (p) of the Act as a reserve or bad debt in respect of the property, (g)all amounts that were deducted or would be deductible in computing the insurer’s income for the year under section 66, 66.1, 66.2 or 66.4 of the Act in respect of the property, and all amounts that were deducted or would be deductible in computing the insurer’s income for the year under section 66, 66.1, 66.2 or 66.4 of the Act in respect of the property, and (i)all amounts that were or would be deductible in computing the insurer’s income for the year in respect of other expenses directly related to the earning of gross investment revenue derived from the property. all amounts that were or would be deductible in computing the insurer’s income for the year in respect of other expenses directly related to the earning of gross investment revenue derived from the property. The positive or negative amount, as the case may be, determined under this subsection in respect of an insurer for a taxation year in respect of property disposed of by the insurer in the year or a preceding taxation year is the amount determined by the formula is the total of the amounts included under paragraphs 142.4(4)(a) and (c) of the Act in the insurer’s income for the year in respect of the property, or that would be so included if the property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which it was held by the insurer; and is the total of the amounts deductible under paragraphs 142.4(4)(b) and (d) of the Act in respect of the property in computing the insurer’s income for the year, or that would be so deductible if the property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which it was held by the insurer. For the purposes of subsection (1), the balance of an insurer’s cumulative excess account at the end of a taxation year shall be determined as the amount, if any, by which the aggregate of all amounts each of which is a positive amount, if any, determined in respect of each of such of its seven immediately preceding taxation years that began after June 17, 1987 and ended after 1987 by the formula where A and B are the amounts determined under subsection (1) in respect of the insurer for such immediately preceding taxation year, the aggregate of all amounts each of which is an amount claimed by the insurer under subsection (1) in respect of its cumulative excess account for a preceding taxation year that can be attributed to a positive amount determined under paragraph (a) for that year and, for the purpose of this paragraph, a positive amount determined in respect of a taxation year shall be deemed to have been claimed before a positive amount determined in respect of any subsequent taxation year. [Repealed, SOR/2000-413, s. 6] For the purposes of this section, foreign investment property of an insurer means investment property of the insurer (unless the insurer is a non-resident insurer and it is established by the insurer that the investment property is not effectively connected with its Canadian insurance businesses) that is not Canadian investment property of the insurer. For the purposes of this Part, the mean Canadian investment fund of an insurer for a particular taxation year is the total of its Canadian investment fund at the end of the particular year, and if the insurer is resident in Canada, its Canadian investment fund at the end of its preceding taxation year, or if the insurer is non-resident, its Canadian investment fund at the end of its preceding taxation year determined as if its attributed surplus for that preceding taxation year were its attributed surplus for the particular year, and the insurer’s cash-flow adjustment for the particular year. An insurer’s cash-flow adjustment for a taxation year is the amount equal to if the year ended two months or more after it began, the positive or negative amount determined by the formula is the total of all amounts each of which is the amount determined under subsection (3) in respect of a full month in the year (or in respect of the part of the month that ends after the last full month in the year, if that part is greater than 15 days), is the total of all amounts each of which is the amount determined in respect of a full month in the year (or in respect of the part of the month that ends after the last full month in the year, if that part is greater than 15 days) by the formula is the amount determined under subsection (3) in respect of the month or part of the month, and is the number of months in the year that ended before the beginning of the month or part of the month, and is the number of full months in the year (plus 1, if the year ends more than 15 days after the end of the last full month in the year); and if the year ended less than two months after it began, nil. The amount determined in respect of an insurer for a particular month or part of a month (in this subsection referred to as a “month”) in a taxation year is the positive or negative amount determined by the formula is the total of all amounts each of which is (a)the amount of a premium or consideration received by the insurer in the month in respect of a contract of insurance (including a settlement annuity) entered into in the course of carrying on its insurance businesses in Canada, the amount of a premium or consideration received by the insurer in the month in respect of a contract of insurance (including a settlement annuity) entered into in the course of carrying on its insurance businesses in Canada, (b)an amount received by the insurer in the month in respect of interest on or a repayment in respect of a policy loan made under a life insurance policy in Canada, or an amount received by the insurer in the month in respect of interest on or a repayment in respect of a policy loan made under a life insurance policy in Canada, or (c)an amount received by the insurer in the month in respect of reinsurance (other than reinsurance undertaken to effect a transfer of a business in respect of which subsection 138(11.5), (11.92) or (11.94) of the Act applies) arising in the course of carrying on its insurance businesses in Canada; and an amount received by the insurer in the month in respect of reinsurance (other than reinsurance undertaken to effect a transfer of a business in respect of which subsection 138(11.5), (11.92) or (11.94) of the Act applies) arising in the course of carrying on its insurance businesses in Canada; and (a)the amount of a claim or benefit (including a payment under an annuity or settlement annuity, a payment of a policy dividend and an amount paid on a lapsed or terminated policy), a refund of premiums, a premium or a commission paid by the insurer in the month under a contract of insurance in the course of carrying on its insurance businesses in Canada, the amount of a claim or benefit (including a payment under an annuity or settlement annuity, a payment of a policy dividend and an amount paid on a lapsed or terminated policy), a refund of premiums, a premium or a commission paid by the insurer in the month under a contract of insurance in the course of carrying on its insurance businesses in Canada, (b)the amount of a policy loan made by the insurer in the month under a life insurance policy in Canada, or the amount of a policy loan made by the insurer in the month under a life insurance policy in Canada, or (c)an amount paid by the insurer in the month in respect of reinsurance (other than reinsurance undertaken to effect a transfer of a business in respect of which subsection 138(11.5), (11.92) or (11.94) of the Act applies) in the course of carrying on its insurance businesses in Canada. an amount paid by the insurer in the month in respect of reinsurance (other than reinsurance undertaken to effect a transfer of a business in respect of which subsection 138(11.5), (11.92) or (11.94) of the Act applies) in the course of carrying on its insurance businesses in Canada. A reference to a month in this section means if an insurer’s taxation year does not begin on the first day of a calendar month and the insurer elects to have this paragraph apply for the year, the period beginning on the day in a calendar month that has the same calendar number as the particular day on which the taxation year began and ending on the day immediately before the day in the next calendar month that has the same calendar number as the particular day, or if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month; and in any other case, a calendar month. For the purposes of subsection 117(6) of the Act, $55,605, adjusted for each taxation year after 1989 in the manner set out in subsection 117.1(1) of the Act, is the prescribed amount; and an “individual of a prescribed class” for a taxation year is an estate or trust, an individual who was a non-resident person throughout the year, other than an individual whose amount taxable for the year was from the duties of an office or employment performed in one province, the carrying on of a business in one province, or any combination of sources described in subclauses (I) and (II) if all of those sources are located in one province, and who was not subject to any other provision of this subsection, an individual who, on the last day of the year, resided in a province and had income for the year from a business with a permanent establishment, as defined in subsection 2600(2), outside the province, an individual whose tax otherwise payable for the year under Part I of the Act is reduced by virtue of any of the following provisions of the Act: subsection 117(7), section 121, section 122.3, or section 126, an individual who makes an election in respect of the year under subsection 119(1) of the Act, an individual eligible to pay tax at a reduced rate pursuant to subsection 40(7) of the Income Tax Application Rules, on a payment made to him in the year, or an individual who makes an election in respect of the year under subsection 110.4(2) of the Act. For the purposes of subsection 117(6) of the Act, a table of the tax payable for a taxation year shall be prepared in accordance with the following rules: the table shall be divided into ranges of amounts taxable not exceeding $10 each and shall specify the tax payable in respect of each range; the tax payable on an amount taxable within any range referred to in paragraph (a) shall be equal to the tax payable thereon for the year computed under subsection 117(2) of the Act and, where applicable, adjusted annually pursuant to section 117.1 of the Act; and the tax payable referred to in paragraph (b) shall be calculated as if the amount taxable is equal to the average of the highest and lowest amounts taxable in the range and, where the resulting tax payable is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two such multiples, to the higher thereof. For the purposes of subsection 117(6) of the Act, a table of the additional tax for income not earned in a province, the individual surtax and the refundable Quebec abatement for a taxation year shall be prepared in accordance with the following rules: the table shall be divided into ranges of tax payable not exceeding $2 each and shall specify, in respect of each range, the individual surtax payable, where applicable, the additional tax for income not earned in a province, and where applicable, the refundable Quebec abatement, on every amount of tax payable within that range; the tax payable referred to in paragraph (a) is the tax payable determined by the table prepared pursuant to subsection (2) less the allowable non-refundable credits under sections 118 to 118.9 of the Act; the individual surtax in respect of an amount of tax payable within any range referred to in paragraph (a) shall be the amount that is equal to the surtax thereon computed under subsection 180.1(1) of the Act; the additional tax for income not earned in a province in respect of an amount of tax payable within any range referred to in paragraph (a) shall be the amount that is equal to the tax determined thereon under subsection 120(1) of the Act; the refundable Quebec abatement in respect of an amount of tax payable within any range referred to in paragraph (a) shall be the amount that is equal to the abatement determined under subsection 120(2) of the Act and in accordance with section 27 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act; the amount referred to in paragraph (c) or (d) shall be calculated as if the tax payable is equal to the average of the highest and lowest amounts in the range and, where the resulting amount is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two such multiples, to the higher thereof; and the amount referred to in paragraph (e) shall be calculated as if the tax payable is equal to the average of the highest and lowest amounts in the range and, where the resulting amount is not a multiple of one tenth of one dollar, it shall be rounded to the nearest multiple of one tenth of one dollar or, if it is equidistant from two such multiples, to the higher thereof. In this Part, amount taxable has the meaning assigned by subsection 117(2) of the Act. In applying the definition income earned in the year in a province in subsection 120(4) of the Act for an individual’s taxation year the amount determined under those prescribed rules means the total of all amounts each of which is the individual’s income earned in the taxation year in a particular province as determined under this Part. In this Part, permanent establishment means a fixed place of business of the individual, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, and where an individual carries on business through an employee or agent, established in a particular place, who has general authority to contract for his employer or principal or who has a stock of merchandise owned by his employer or principal from which he regularly fills orders which he receives, the individual shall be deemed to have a permanent establishment in that place; where an individual uses substantial machinery or equipment in a particular place at any time in a taxation year he shall be deemed to have a permanent establishment in that place; and the fact that an individual has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise, shall not of itself be held to mean that the individual has a permanent establishment. [Repealed, SOR/81-267, s. 3] If an individual resides in a particular province on the last day of a taxation year and has no income for the taxation year from a business with a permanent establishment outside the province, the individual’s income earned in the taxation year in the particular province is the individual’s income for the taxation year. If an individual resides in a particular province on the last day of a taxation year and has income for the taxation year from a business with a permanent establishment outside the particular province, the individual’s income earned in the taxation year in the particular province is the amount, if any, by which the individual’s income for the taxation year the total of all amounts each of which is the individual’s income for the taxation year from carrying on a business that is earned in a province other than the particular province or in a country other than Canada, determined in accordance with this Part. If an individual, who resides in Canada on the last day of a taxation year and who has carried on business in a particular province at any time in the taxation year, does not reside in the particular province on the last day of the taxation year, the individual’s income earned in the taxation year in the particular province is the individual’s income for the taxation year from carrying on business earned in the particular province, determined in accordance with this Part. If an individual resides in Canada on the last day of a taxation year and carried on business in another country at any time in the taxation year, the individual’s income earned in the taxation year in that other country is the individual’s income for the taxation year from carrying on business earned in the other country, determined in accordance with this Part. In this section, a reference to the “last day of a taxation year” is deemed to be a reference to the “last day in the year on which the individual resided in Canada”, in the case of an individual who resided in Canada at any time in the year but ceased to reside in Canada before the end of the year; and the “day in the year on which the individual would have ceased to reside in Canada, if the Act were read without reference to paragraphs 250(1)(d.1) and (f) of the Act,”, in the case of a particular individual described in paragraph 250(1)(d.1) of the Act, or of another individual who is a spouse, common-law partner or child of the particular individual, who was resident in Canada at any time in the year, would have ceased to be resident in Canada before the end of the year, if the Act were read without reference to paragraphs 250(1)(d.1) and (f) of the Act, and is, pursuant to paragraph 250(1)(d.1) or (f) of the Act, deemed to have been resident in Canada throughout the year. Subject to subsection (2), if an individual does not reside in Canada at any time in a taxation year, the individual’s income earned in the taxation year in a province is the total of the portion of the taxpayer’s income from an office or employment that is included in the taxpayer’s taxable income earned in Canada for the taxation year under subparagraph 115(1)(a)(i) of the Act and that is reasonably attributable to the duties performed by the taxpayer the province; and the taxpayer’s income for the taxation year from carrying on business earned in the province, determined in accordance with this Part. Where the aggregate of the amounts of an individual’s income as determined under subsection (1) for all provinces for a taxation year exceeds the aggregate of the amounts of his income described in subparagraphs 115(1)(a)(i) and (ii) of the Act, the amount of his income earned in the taxation year in a particular province shall be that proportion of his income so described that the amount of his income earned in the taxation year in the province as determined under subsection (1) is of the aggregate of all such amounts. Where, in a taxation year, an individual had a permanent establishment in a particular province or a country other than Canada and had no permanent establishment outside that province or country, the whole of his income from carrying on business for the year shall be deemed to have been earned therein. Where, in a taxation year, an individual had no permanent establishment in a particular province or country other than Canada, no part of his income for the year from carrying on business shall be deemed to have been earned therein. Except as otherwise provided, where, in a taxation year, an individual had a permanent establishment in a particular province or in a particular country other than Canada and had a permanent establishment outside that particular province or particular country, the amount of the individual’s income for the taxation year from carrying on business that is deemed to have been earned in the particular province or particular country is half of the total of that proportion of the individual’s income for the year from carrying on business that the gross revenue for the fiscal period that ends in the taxation year that is reasonably attributable to the permanent establishment in the particular province or particular country is of the individual’s total gross revenue for that period from the business; and that proportion of the individual’s income for the taxation year from carrying on business that the total of all amounts that are salaries and wages paid in the fiscal period that ends in the taxation year to employees of the permanent establishment in the particular province or particular country is of the total of all amounts that are salaries and wages paid in that period to employees of the business. For the purpose of determining the gross revenue for the year reasonably attributable to the permanent establishment in a particular province or country other than Canada within the meaning of paragraph (3)(a), the following rules shall apply: where land is a permanent establishment of the taxpayer in the particular province, the gross revenue which arises from leasing the land shall be attributable to that permanent establishment. Where an individual pays a fee to another person under an agreement pursuant to which that other person or employees of that other person perform services for the individual that would normally be performed by employees of the individual, the fee so paid shall be deemed to be salary paid by the individual and that part of the fee that may reasonably be regarded as payment in respect of services rendered at a particular permanent establishment of the individual shall be deemed to be salary paid to an employee of that permanent establishment. For the purposes of subsection (5), a fee does not include a commission paid to a person who is not an employee of the individual. Notwithstanding subsections 2603(3) and (4), the amount of income that shall be deemed to have been earned in a particular province or country other than Canada by an individual from carrying on the business of transportation of goods or passengers (other than by the operation of a railway, ships or an airline service) is 1/2 of the aggregate of that proportion of his income therefrom for the year that the number of miles travelled by his vehicles in the province or country in the fiscal period ending in the year is of the total number of miles travelled by his vehicles in that period; and that proportion of his income therefrom for the year that the aggregate of salaries and wages paid in the fiscal period ending in the year to employees of the permanent establishment in the province or country is of the aggregate of all salaries and wages paid in that period to employees of the business. Where an individual operates more than one business, the provisions of sections 2603 and 2604 shall be applied in respect of each business and the amount of income for the year from carrying on business earned in a particular province or country in the year is the aggregate of the amounts so determined. If, in the case of an individual to whom section 2601 applies, the total of the amounts otherwise determined to be the individual’s income for a taxation year from carrying on business that is earned in all provinces and countries other than Canada is greater than the individual’s income for the year, the individual’s income for the year from carrying on business earned in a particular province or country other than Canada is deemed to be that proportion of the individual’s income for the year that the individual’s income for the year from carrying on business in the particular province or country as otherwise determined that total. If section 114 of the Act applies in respect of an individual for a taxation year, the following rules apply: the portion of subsection (1) before paragraph (a) is to be read as follows in respect of the individual for the year: If, in the case of an individual to whom section 2601 applies, the total of the amounts otherwise determined to be the individual’s income for a taxation year from carrying on business that is earned in all provinces and countries other than Canada is greater than the individual’s taxable income for the year, the individual’s income for the year from carrying on business earned in a particular province or country other than Canada is deemed to be that proportion of the individual’s taxable income for the year that for the purpose of this Part, the individual’s income for the year from carrying on a business in any place shall be computed by reference only to the income from that business that is included in computing the individual’s taxable income for the year. For the purposes of sections 2603 to 2605, where an individual’s taxable income for the taxation year is computed in accordance with section 115 of the Act, a reference to a “business” shall be deemed to refer only to a business that was wholly or partly carried on in Canada; a reference to “income for the year from carrying on business” shall be deemed to refer only to income for the year from carrying on a business in Canada, as determined for the purposes of section 115 of the Act; a reference to “salaries and wages paid in the year” shall be deemed to be a reference to salaries and wages paid to employees of his permanent establishments in Canada; and a reference to “total gross revenue for the year” from the business shall be deemed to be a reference to total gross revenue reasonably attributable to his permanent establishments in Canada. Where an individual was resident in more than one province on the last day of the taxation year, for the purposes of this Part, he shall be deemed to have resided on that day only in that province which may reasonably be regarded as his principal place of residence. For the purposes of this Part, if the individual is a SIFT trust, a reference to income earned in a taxation year shall be read as a reference to the amount that would, if this Part were read without reference to this section, be the amount, if any, by which its income for the taxation year exceeds its taxable SIFT trust distributions for the taxation year. lump-sum premium in relation to a group term life insurance policy means a premium for insurance under the policy on the life of an individual where all or part of the premium is for insurance that is (or would be if the individual survived) in respect of a period that ends more than 13 months after the earlier of the day on which the premium becomes payable and the day on which it is paid. (prime globale) paid-up premium in relation to a group term life insurance policy means a premium for insurance under the policy on the life of an individual where the insurance is for the remainder of the lifetime of the individual and no further premiums will be payable for the insurance. (prime d’assurance libérée) premium category in relation to term insurance provided under a group term life insurance policy means, where the premium rate applicable in respect of term insurance on the life of an individual depends on the group to which the individual belongs, any of the groups for which a premium rate is established, and in any other case, all individuals on whose lives term insurance is in effect under the policy, and, for the purpose of this definition, a single premium rate is deemed to apply for all term insurance under a policy in respect of periods in 1994, and where individuals are divided into separate groups solely on the basis of their age, sex, or both, the groups are deemed to be a single group for which a premium rate is established. (catégorie de primes) term insurance in relation to an individual and a group term life insurance policy means insurance under the policy on the life of the individual, other than insurance in respect of which a lump-sum premium has become payable or been paid. (assurance temporaire) For greater certainty, a premium for insurance on the life of an individual does not include an amount for accidental death insurance. Subject to subsection (2), for the purpose of subsection 6(4) of the Act, the amount prescribed for a taxation year in respect of insurance under a group term life insurance policy on the life of a taxpayer is the total of the taxpayer’s term insurance benefit under the policy for the calendar year in which the taxation year ends, the taxpayer’s prepaid insurance benefit under the policy for that calendar year, and the total of all sales and excise taxes payable in respect of premiums paid under the policy in that calendar year for insurance on the life of the taxpayer, other than taxes paid, directly or by way of reimbursement, by the taxpayer, and taxes in respect of premiums for term insurance that, if the taxpayer were to die, would be paid otherwise than to the taxpayer, for the benefit of the taxpayer, as a benefit that the taxpayer desired to have conferred on any person. Where a taxpayer who has become a bankrupt has two taxation years ending in a calendar year, for the purpose of subsection 6(4) of the Act, the amount prescribed for the first taxation year in respect of insurance under a group term life insurance policy on the life of the taxpayer is nil. Subject to section 2704, for the purpose of paragraph 2701(1)(a), a taxpayer’s term insurance benefit under a group term life insurance policy for a calendar year is the policyholder elects to determine, under this paragraph, the term insurance benefit for the year of each individual whose life is insured under the policy, no premium rate that applies for term insurance provided under the policy on the life of an individual in respect of the year depends on the age or sex of the individual, no amounts are payable under the policy for term insurance on the lives of individuals in respect of the year other than premiums payable on a regular basis that are based on the amount of term insurance in force in the year for each individual, and the year is after 1995, is the total of the premiums payable for term insurance provided under the policy on the taxpayer’s life in respect of periods in the year, to the extent that each such premium is in respect of term insurance that, if the taxpayer died in the year, would be paid to or for the benefit of the taxpayer or as a benefit that the taxpayer desired to have conferred on any person, and is the total amount paid by the taxpayer in respect of term insurance under the policy on the taxpayer’s life in respect of the year; and in any other case, the amount, if any, by which the total of all amounts each of which is, for a day in the year on which term insurance is in effect under the policy on the taxpayer’s life, the amount determined by the formula is the amount of term insurance in effect on that day under the policy on the taxpayer’s life, except the portion, if any, of the amount that, if the taxpayer were to die on that day, would be paid otherwise than (A)to the taxpayer, (B)to benefit of the taxpayer, or to benefit of the taxpayer, or (C)as a benefit that the taxpayer desired to have conferred on any person, and as a benefit that the taxpayer desired to have conferred on any person, and is the average daily cost of insurance for the year for the premium category in which the taxpayer is included on that day the total amount paid by the taxpayer in respect of term insurance under the policy on the taxpayer’s life in respect of the year. The average daily cost of insurance under a group term life insurance policy for a calendar year for a premium category is subject to paragraph (b), the amount determined by the formula is the total of the premiums payable for term insurance provided under the policy on the lives of individuals in respect of periods in the year while they are in the premium category, is the total of the amounts paid in the year under the policy for term insurance in respect of periods in preceding years (other than amounts that have otherwise been taken into account for the purpose of subsection 6(4) of the Act), to the extent that the total can reasonably be considered to relate to term insurance provided on the lives of individuals in the premium category, is the total amount of policy dividends and experience rating refunds paid in the year under the policy and not distributed to individuals whose lives are insured under the policy, to the extent that the total can reasonably be considered to relate to term insurance provided on the lives of individuals in the premium category, and is the total of all amounts each of which is the amount of term insurance in force on a day in the year on the lives of individuals in the premium category on that day; or the amount that the policyholder determines using a reasonable method that is substantially similar to the method set out in paragraph (a). For the purposes of this section, where the proceeds of term insurance on the life of an individual are payable in the form of periodic payments, and the periodic payments are not an optional form of settlement of a lump-sum amount, the amount of term insurance in effect on the individual’s life on any day is the present value, on that day, of the periodic payments that would be made if the individual were to die on that day. For the purpose of subsection (3), the present value on a day in a calendar year shall be determined using assumptions that are reasonable at some time in the year; and may be determined assuming that an individual on whose life the present value depends is the same age on that day as on another day in the year. Subject to section 2704, for the purpose of paragraph 2701(1)(b), a taxpayer’s prepaid insurance benefit under a group term life insurance policy for a calendar year is where the taxpayer is alive at the end of the year, the total of all amounts each of which is a lump-sum premium (other than the taxpayer portion) paid in the year and after February 1994 in respect of insurance under the policy on the life of the taxpayer, other than a paid-up premium paid before 1997, or 1/3 of a paid-up premium (other than the taxpayer portion) in respect of insurance under the policy on the life of the taxpayer that was paid after February 1994 and before 1997, and in the year or one of the two preceding years; and where the taxpayer died after June 1994 and in the year, the amount, if any, by which the total of all amounts each of which is a lump-sum premium (other than the taxpayer portion) paid under the policy after February 1994 in respect of insurance on the life of the taxpayer the portion of that total that was included in computing the taxpayer’s prepaid insurance benefit under the policy for preceding years. For the purpose of subsection (1), the taxpayer portion of a premium is the portion, if any, of the premium that the taxpayer paid, either directly or by way of reimbursement. For the purpose of subsection 2701(1), where the full cost of insurance under a group term life insurance policy in a calendar year is borne by the individuals whose lives are insured under the policy, each individual’s term insurance benefit and prepaid insurance benefit under the policy for the year is deemed to be nil.

Where the premiums for part of the life insurance (in this subsection referred to as the “additional insurance”) under a group term life insurance policy are determined separately from the premiums for the rest of the life insurance under the policy, and it is reasonable to consider that the individuals on whose lives the additional insurance is provided bear the full cost of the additional insurance, the additional insurance, the premiums, policy dividends and experience rating refunds in respect of that insurance, and the amounts paid in respect of that insurance by the individuals whose lives are insured, shall not be taken into account for the purposes of this Part. For the purpose of subsection 6(4) of the Act, as it applies to insurance provided in respect of periods that are in 1994 and before July 1994, a lump-sum premium paid under a group term life insurance policy after February 1994 in respect of an individual who is alive at the end of June 1994 is a prescribed premium; and insurance in respect of which a premium referred to in paragraph (a) is paid is prescribed insurance. Any election under subsection 104(14) of the Act in respect of a taxation year shall be made by filing with the Minister a written statement in which the election in respect of the year is made; in which is designated the part of the accumulating income in respect of which the election is being made; and that is signed by the preferred beneficiary and a trustee having the authority to make the election. The statement shall be filed within 90 days after the end of the trust’s taxation year in respect of which the election referred to in subsection (1) is made. [Repealed, SOR/2000-296, s. 1] For the purposes of clause 37(8)(a)(i)(B) and subclause 37(8)(a)(ii)(A)(II) of the Act, the following expenditures are directly attributable to the prosecution of scientific research and experimental development: the cost of materials consumed or transformed in such prosecution; where an employee directly undertakes, supervises or supports such prosecution, the portion of the amount incurred for salary or wages of the employee that can reasonably be considered to be in respect of such prosecution; and other expenditures, or those portions of other expenditures, that are directly related to such prosecution and that would not have been incurred if such prosecution had not occurred. For the purposes of subclause 37(8)(a)(ii)(A)(II) of the Act, the following expenditures are directly attributable to the provision of premises, facilities or equipment for the prosecution of scientific research and experimental development: the cost of the maintenance and upkeep of such premises, facilities or equipment; and other expenditures, or those portions of other expenditures, that are directly related to that provision and that would not have been incurred if those premises or facilities or that equipment had not existed. For the purposes of the definition qualified expenditure in subsection 127(9) of the Act, the prescribed proxy amount of a taxpayer for a taxation year, in respect of a business, in respect of which the taxpayer elects under clause 37(8)(a)(ii)(B) of the Act is 55% of the total of all amounts each of which is that portion of the amount incurred in the year by the taxpayer in respect of salary or wages of an employee of the taxpayer who is directly engaged in scientific research and experimental development carried on in Canada that can reasonably be considered to relate to the scientific research and experimental development having regard to the time spent by the employee on the scientific research and experimental development. Subject to subsections (6) to (8), where in subsection (4) the portion of an expenditure is all or substantially all of the expenditure, that portion shall be replaced by the amount of the expenditure. The amount determined under subsection (4) as the prescribed proxy amount of a taxpayer for a taxation year in respect of a business shall not exceed the amount, if any, by which the total of all amounts deducted in computing the taxpayer’s income for the year from the business, exceeds the total of all amounts each of which is an amount deducted in computing the income of the taxpayer for the year from the business under any of sections 20, 24, 26, 30, 32, 37, 66 to 66.8 and 104 of the Act, or an amount incurred by the taxpayer in the year in respect of any outlay or expense made or incurred for the use of, or the right to use, a building other than a special-purpose building. In determining the prescribed proxy amount of a taxpayer for a taxation year, the portion of the amount incurred in the year by the taxpayer in respect of salary or wages of a specified employee of the taxpayer that is included in computing the total described in subsection (4) shall not exceed the lesser of 75% of the amount incurred by the taxpayer in the year in respect of salary or wages of the employee, and is the Year’s Maximum Pensionable Earnings (as determined under section 18 of the Canada Pension Plan) for the calendar year in which the taxation year ends, and is the number of days in the taxation year in which the employee is an employee of the taxpayer. a taxpayer is a corporation, the taxpayer employs in a taxation year ending in a calendar year an individual who is a specified employee of the taxpayer, the taxpayer is associated with another corporation (referred to as the “associated corporation”) in a taxation year of the associated corporation ending in the calendar year, and the individual is an employee of the associated corporation in the taxation year of the associated corporation ending in the calendar year, the total of all amounts that may be included in computing the total described in subsection (4) in respect of salaries or wages of the individual by the taxpayer in its taxation year ending in the calendar year and by all associated corporations in their taxation years ending in the calendar year shall not exceed the amount that is 2.5 times the Year’s Maximum Pensionable Earnings (as determined under section 18 of the Canada Pension Plan) for the calendar year. For the purposes of subsections (4) and (7), an amount incurred in respect of salary or wages of an employee in a taxation year does not include an amount described in section 6 or 7 of the Act; an amount deemed under subsection 78(4) of the Act to have been incurred; bonuses; or remuneration based on profits. For the purpose of subsection (8), an individual related to a particular corporation, and a partnership any member of which is an individual related to a particular corporation or is a corporation associated with a particular corporation, shall be deemed to be a corporation associated with the particular corporation. The depreciable property of a taxpayer that is prescribed for the purposes of the definition first term shared-use-equipment in subsection 127(9) of the Act is a building of the taxpayer; a leasehold interest of the taxpayer in a building; a property of the taxpayer if, at the time it was acquired by the taxpayer, the taxpayer or a person related to the taxpayer intended that it would be used in the prosecution of scientific research and experimental development during the assembly, construction or commissioning of a facility, plant or line for commercial manufacturing, commercial processing or other commercial purposes (other than scientific research and experimental development) and intended that it would be used during its operating time in its expected useful life primarily for purposes other than scientific research and experimental development, or that its value would be consumed primarily in activities other than scientific research and experimental development; and part of a property of the taxpayer if, at the time the part was acquired by the taxpayer, the taxpayer or a person related to the taxpayer intended that the part would be used in the prosecution of scientific research and experimental development during the assembly, construction or commissioning of a facility, plant or line for commercial manufacturing, commercial processing or other commercial purposes (other than scientific research and experimental development), and intended that its value would be consumed primarily in activities other than scientific research and experimental development. For the purposes of paragraph 37.1(5)(c) of the Act, a prescribed expenditure is an expenditure of a current nature incurred by a corporation in respect of the general administration or management of a business, including administrative salary or wages and related benefits in respect of a person whose duties are not all or substantially all directed to the prosecution of scientific research and experimental development, except to the extent that such expenditure is described in subsection 2900(2) or (3), a legal or accounting fee, an amount described in any of paragraphs 20(1)(c) to (g) of the Act, an entertainment expense, an advertising or selling expense, a convention expense, a due or fee in respect of membership in a scientific or technical society or organization, and a fine or penalty, or the maintenance and upkeep of premises, facilities or equipment to the extent that such expenditure is not attributable to the prosecution of scientific research and experimental development, except any such expenditure incurred by a corporation that derives all or substantially all of its revenue from the prosecution of scientific research or the sale of rights in or arising out of scientific research carried on by it; an expenditure of a capital nature incurred by a corporation in respect of the acquisition of property, except any such expenditure that was incurred for and was all or substantially all attributable to the prosecution, or to the provision of premises, facilities or equipment for the prosecution, of scientific research and experimental development, or the acquisition of property that is qualified property within the meaning assigned by subsection 127(9) of the Act; an expenditure made to acquire rights in, or arising out of, scientific research; or an expenditure on scientific research in respect of which an amount is deductible under section 110 of the Act. For the purposes of the definition qualified expenditure in subsection 127(9) of the Act, a prescribed expenditure is an expenditure of a current nature incurred by a taxpayer in respect of a conference or convention expense, the maintenance and upkeep of premises, facilities or equipment to the extent that such expenditure is not attributable to the prosecution of scientific research; an expenditure of a capital nature incurred by a taxpayer in respect of the acquisition of property, except any such expenditure that at the time it was incurred was for first term shared-use-equipment or second term shared-use-equipment (as those terms are defined in subsection 127(9) of the Act), or was for the provision of premises, facilities or equipment if, at the time of the acquisition of the premises, facilities or equipment, it was intended that the premises, facilities or equipment would be used during all or substantially all of the operating time of the premises, facilities or equipment in the expected useful life of the premises, facilities or equipment for the prosecution of scientific research and experimental development in Canada, or that all or substantially all of the value of the premises, facilities or equipment would be consumed in the prosecution of scientific research and experimental development in Canada, the acquisition of property that is qualified property as defined in subsection 127(9) of the Act, or the acquisition of property that has been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer; an expenditure made to acquire rights in, or arising out of, scientific research and experimental development; an expenditure on scientific research and experimental development in respect of which an amount is deductible under section 110.1 or section 118.1 of the Act; or an expenditure of a taxpayer, to the extent that the taxpayer has received or is entitled to receive a reimbursement in respect of it from a person resident in Canada, other than Her Majesty in right of Canada or a province, an agent of Her Majesty in right of Canada or a province, a corporation, commission or association that is controlled, directly or indirectly in any manner whatever, by Her Majesty in right of Canada or a province or by an agent of her Majesty in right of Canada or a province, or a municipality in Canada or a municipal or public body performing a function of government in Canada, or a person not resident in Canada to the extent that the said reimbursement is deductible by the person in computing his taxable income earned in Canada for any taxation year. Special-purpose buildings For the purposes of this Part and paragraph 37(8)(e) of the Act, a special-purpose building is a building the working areas of which are designed and constructed to have a displacement in any direction of not more than 0.02 µm (micrometres) and to have, per 0.028 cubic metre of interior airspace, not more than 350 airborne particles of a size less than or equal to 0.1 µm (micrometres) in diameter and no airborne particles of a size greater than 0.1 µm (micrometres) in diameter, not more than 75 airborne particles of a size less than or equal to 0.2 µm (micrometres) in diameter and no airborne particles of a size greater than 0.2 µm (micrometres) in diameter, not more than 30 airborne particles of a size less than or equal to 0.3 µm (micrometres) in diameter and no airborne particles of a size greater than 0.3 µm (micrometres) in diameter, or not more than 10 airborne particles of a size less than or equal to 0.5 µm (micrometres) in diameter and no airborne particles of a size greater than 0.5 µm (micrometres) in diameter. [Repealed, SOR/93-531, s. 1] [Repealed, 2013, c. 40, s. 105] Prescribed benefits For the purposes of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, means any amount that may reasonably be expected, having regard to statements or representations made in respect of the interest, to be received or enjoyed by a person (in this subsection referred to as the purchaser) who acquires the interest, or a person with whom the purchaser does not deal at arm’s length, which receipt or enjoyment would have the effect of reducing the impact of any loss that the purchaser may sustain in respect of the interest, and includes such an amount that is, either immediately or in the future, owed to any other person by the purchaser or a person with whom the purchaser does not deal at arm’s length, to the extent that liability to pay that amount is contingent, payment of that amount is or will be guaranteed by, security is or will be provided by, or an agreement to indemnify the other person to whom the amount is owed is or will be entered into by a promoter in respect of the interest, a person with whom the promoter does not deal at arm’s length, or a person who is to receive a payment (other than a payment made by the purchaser) in respect of the guarantee, security or agreement to indemnify, the rights of that other person against the purchaser, or against a person with whom the purchaser does not deal at arm’s length, in respect of the collection of all or part of the purchase price are limited to a maximum amount, are enforceable only against certain property, or are otherwise limited by agreement, or payment of that amount is to be made in a foreign currency or is to be determined by reference to its value in a foreign currency and it may reasonably be considered, having regard to the history of the exchange rate between the foreign currency and Canadian currency, that the total of all such payments, when converted to Canadian currency at the exchange rate expected to prevail at the date on which each such payment would be required to be made, will be substantially less than that total would be if each such payment was converted to Canadian currency at the time that each such payment became owing; that the purchaser or a person with whom the purchaser does not deal at arm’s length is entitled at any time to, directly or indirectly, receive or have available as a form of assistance from a government, municipality or other public authority, whether as a grant, a subsidy, a forgivable loan, a deduction from tax (other than an amount described in clause (b)(i)(B) of the definition tax shelter in subsection 237.1(1) of the Act) or an investment allowance, or as any other form of assistance, other than an excluded loan as defined in subsection 12(11) of the Act, or by reason of a revenue guarantee or other agreement in respect of which revenue may be earned by the purchaser or a person with whom the purchaser does not deal at arm’s length, to the extent that the revenue guarantee or other agreement may reasonably be considered to ensure that the purchaser or person will receive a return of all or a portion of the purchaser’s outlays in respect of the interest; that is the proceeds of disposition to which the purchaser may be entitled by way of an agreement or other arrangement under which the purchaser has a right, either absolutely or contingently, to dispose of the interest (otherwise than as a consequence of the purchaser’s death), including the fair market value of any property that the agreement or arrangement provides for the acquisition of in exchange for all or any part of the interest; and that is owed to a promoter, or a person with whom the promoter does not deal at arm’s length, by the purchaser or a person with whom the purchaser does not deal at arm’s length in respect of the interest. Notwithstanding subsection (1), for the purpose of paragraph b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, does not, except as otherwise provided in subparagraph (1)(b)(ii), include profits earned in respect of the interest. For the purpose of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, includes an amount that is a limited-recourse amount because of subsection 143.2(1), (7) or (13) of the Act, but does not include an amount of indebtedness that is a limited-recourse amount solely because it is not required to be repaid within 10 years from the time the indebtedness arose where the debtor would, if the interest were acquired by the debtor immediately after that time, be a partnership at least 90% of the fair market value of the property of which is attributable to the partnership’s tangible capital property located in Canada, and at least 90% of the value of all interests in which are held by limited partners (within the meaning assigned by subsection 96(2.4) of the Act) of the partnership, except where it is reasonable to conclude that one of the main reasons for the acquisition of one or more properties by the partnership, or for the acquisition of one or more interests in the partnership by limited partners, is to avoid the application of this subsection, or a member of a partnership having fewer than six members, except where the partnership is a member of another partnership, there is a limited partner (within the meaning assigned by subsection 96(2.4) of the Act) of the partnership, less than 90% of the fair market value of the partnership’s property is attributable to the partnership’s tangible capital property located in Canada, or it is reasonable to conclude that one of the main reasons for the existence of one of two or more partnerships, one of which is the partnership, or the acquisition of one or more properties by the partnership, is to avoid the application of this section to the member’s indebtedness, of a partnership the indebtedness is secured by and used to acquire the partnership’s tangible capital property located in Canada (other than rental property, within the meaning assigned by subsection 1100(14), leasing property, within the meaning assigned by subsection 1100(17), or specified energy property, within the meaning assigned by subsection 1100(25)), and the person to whom the indebtedness is repayable is a member of the Canadian Payments Association, and throughout the period during which any amount is outstanding in respect of the indebtedness, at least 90% of the fair market value of the property of which is attributable to tangible capital property located in Canada of the partnership, at least 90% of the value of all interests in which are held by limited partners (within the meaning assigned by subsection 96(2.4) of the Act) that are corporations, and the principal business of each such limited partner is related to the principal business of the partnership, except where it is reasonable to conclude that one of the main reasons for the acquisition of one or more properties by the partnership, or for the acquisition of one or more interests in the partnership by limited partners, is to avoid the application of this subsection, of a corporation where the amount is a bona fide business loan made to the corporation for the purpose of financing a business that the corporation operates and the loan is made under a loan program of the Government of Canada or of a province the purpose of which is to extend financing to small- and medium-sized Canadian businesses, or where the amount is an excluded loan as defined in subsection 12(11) of the Act. Prescribed property For the purpose of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed property, in relation to a tax shelter, means property that is a registered pension plan, a registered retirement savings plan, a deferred profit sharing plan, a registered retirement income fund, a registered education savings plan or a property in respect of which paragraph 40(2)(i) of the Act applies. [Repealed, 2007, c. 35, s. 74] [Repealed, SOR/2011-188, s. 17] For the purposes of subsection 154(2) of the Act, a rate of 45% is prescribed. For the purposes of paragraphs 122.3(1)(a) and 250(1)(d) of the Act, each international development assistance program of the Canadian International Development Agency that is financed with funds (other than loan assistance funds) provided under External Affairs Vote 30a, Appropriation Act No. 3, 1977-78, or another vote providing for such financing, is hereby prescribed as an international development assistance program of the Government of Canada. employees’ charity trust means a registered charity that is organized for the purpose of remitting, to other registered charities, donations that are collected from employees by an employer; (fuducie de bienfaisance d’employés) official receipt means a receipt for the purposes of paragraph 110.1(2)(a) or 118.1(2)(a) of the Act, containing information required by section 3501 or 3502; (reçu officiel) official receipt form means any printed form that a registered organization or other recipient of a gift has that is capable of being completed, or that originally was intended to be completed, as an official receipt by it; (formule de reçu officiel) other recipient of a gift means a person, to whom a gift is made by a taxpayer, referred to in any of paragraph 110.1(1)(c), subparagraph 110.1(2.1)(a)(ii) and paragraphs (a) and (d) of the definition qualified donee in subsection 149.1(1) of the Act; (autre bénéficiaire d’un don) registered organization means a registered charity, a registered Canadian amateur athletic association, registered journalism organization or a registered national arts service organization. (organisation enregistrée) Every official receipt issued by a registered organization shall contain a statement that it is an official receipt for income tax purposes and shall show clearly in such a manner that it cannot readily be altered, the name and address in Canada of the organization as recorded with the Minister; the registration number assigned by the Minister to the organization; the place or locality where the receipt was issued; where the gift is a cash gift, the date on which or the year during which the gift was received; where the gift is of property other than cash the date on which the gift was received, a brief description of the property, and the name and address of the appraiser of the property if an appraisal is done; the date on which the receipt was issued; the name and address of the donor including, in the case of an individual, the individual’s first name and initial; the amount that is the amount of a cash gift, or if the gift is of property other than cash, the amount that is the fair market value of the property at the time that the gift is made; a description of the advantage, if any, in respect of the gift and the amount of that advantage; the eligible amount of the gift; the signature, as provided in subsection (2) or (3), of a responsible individual who has been authorized by the organization to acknowledge gifts; and the name and Internet website of the Canada Revenue Agency. Every official receipt issued by another recipient of a gift shall contain a statement that it is an official receipt for income tax purposes and shall show clearly in such a manner that it cannot readily be altered, the name and address of the other recipient of the gift; where the gift is a cash gift, the date on which the gift was received; if the gift is of property other than cash, the amount that is the fair market value of the property at the time that the gift was made; the signature, as provided in subsection (2) or (3.1), of a responsible individual who has been authorized by the other recipient of the gift to acknowledge donations; and Except as provided in subsection (3) or (3.1), every official receipt shall be signed personally by an individual referred to in paragraph (1)(i) or (1.1)(i). Where all official receipt forms of a registered organization are distinctively imprinted with the name, address in Canada and registration number of the organization, serially numbered by a printing press or numbering machine, and kept at the place referred to in subsection 230(2) of the Act until completed as an official receipt, the official receipts may bear a facsimile signature. Where all official receipt forms of another recipient of the gift are distinctively imprinted with the name and address of the other recipient of the gift, if applicable, kept at a place referred to in subsection 230(1) of the Act until completed as an official receipt, An official receipt issued to replace an official receipt previously issued shall show clearly that it replaces the original receipt and, in addition to its own serial number, shall show the serial number of the receipt originally issued. A spoiled official receipt form shall be marked “cancelled” and such form, together with the duplicate thereof, shall be retained by the registered organization or the other recipient of a gift as part of its records. Every official receipt form on which any of the following is incorrectly or illegibly entered is deemed to be spoiled: the date on which the gift is received; the amount of the gift, in the case of a cash gift; a description of the advantage, if any, in respect of the gift and the amount of that advantage; and the eligible amount of the gift. Every information return required to be filed under subsection 110.1(16) or 118.1(27) of the Act in respect of a transfer of property must contain a description of the transferred property; the fair market value of the transferred property at the time of the transfer; the date on which the property was transferred; the name and address of the transferee of the property including, in the case of an individual, their first name and initial; and if the transferor of the property, or a person not dealing at arm’s length with the transferor, issued the receipt referred to in subsection 110.1(14) or 118.1(25) of the Act, the information contained in that receipt. a registered organization is an employees’ charity trust, or has appointed an employer as agent for the purpose of remitting, to that registered organization, donations that are collected by the employer from the employer’s employees, and each copy of the return required by section 200 to be filed for a year by an employer of employees who donated to the registered organization in that year shows the amount of each employee’s donations to the registered organization for the year collected by the employer, and the registration number assigned by the Minister to the registered organization, section 3501 shall not apply and the copy of the portion of the return, relating to each employee who made a donation to the registered organization in that year, that is required by section 209 to be distributed to the employee for filing with the employee’s income tax return shall be an official receipt. [Repealed, 2018, c. 12, s. 44] For the purposes of subparagraphs 110.1(2.1)(a)(ii) and 118.1(5.4)(a)(ii) of the Act, the following are prescribed donees: American Friends of Canadian Nature Inc., a charity established in the United States; The Nature Conservancy, a charity established in the United States; and American Friends of Canadian Land Trusts. [Repealed, 2017, c. 20, s. 32] For the purposes of paragraph 20(1)(o) of the Act, the amount hereby prescribed is for the third taxation year preceding the taxation year during which a survey is scheduled to occur, the amount that is 1/4 of the estimate of the expenses of the survey; for the second taxation year preceding the taxation year during which a survey is scheduled to occur, the amount that is 1/2 of the estimate of the expenses of the survey; for the first taxation year preceding the taxation year during which a survey is scheduled to occur, the amount that is 3/4 of the estimate of the expenses of the survey; and for the taxation year during which a survey is scheduled to occur, if the quadrennial or other special surveys have not, at the end of the year, been completed to the extent that the vessel is permitted to proceed on a voyage, the amount remaining after deducting from the estimate of the expenses of the survey the amount of expenses actually incurred in the year in carrying out the survey. classification society means a society or association for the classification and registry of shipping approved by the Minister of Transport under the Canada Shipping Act; (société de classification) estimate of the expenses of survey means a fair and reasonable estimate, made by a taxpayer at the time of filing his return of income for the third taxation year preceding the taxation year in which a quadrennial survey is scheduled to occur, of the costs, charges and expenses which might be expected to be necessarily incurred by him by reason of that survey and in respect of which he does not have or possess nor is he likely to have or possess any right of reimbursement, recoupment, recovery or indemnification from any other person or source; (évaluation des dépenses d’expertise) inspector means a steamship inspector appointed under Part VIII of the Canada Shipping Act; (inspecteur) quadrennial survey means a periodical survey, not being an annual survey nor a survey coinciding as to time with the construction of a vessel, in accordance with the rules of a classification society or, an extended inspection, not being an annual inspection nor an inspection coinciding as to time with the construction of a vessel, pursuant to the provisions of the Canada Shipping Act, and the regulations thereunder; (expertise quadriennale) survey means the drydocking of a vessel, the examination and inspection of its hull, boilers, machinery, engines and equipment by an inspector or a surveyor and everything done to such vessel, its hull, boilers, machinery, engines and equipment pursuant to an order, requirement or recommendation given or made by the inspector or surveyor as the result of the examination and inspection so that a safety and inspection certificate might be issued in respect of the vessel pursuant to the provisions of the Canada Shipping Act, and the regulations thereunder or, as the case may be, so that the vessel might be entitled to retain the character assigned to it in the registry book of a classification society; (expertise) surveyor means a surveyor to a classification society. (expert) [Repealed, 2010, c. 25, s. 83] For the purposes of the description of B in the definition disbursement quota in subsection 149.1(1) of the Act, the prescribed amount for a taxation year of a registered charity is determined as follows: choose a number, not less than two and not more than eight, of equal and consecutive periods that total twenty-four months and that end immediately before the beginning of the year; aggregate for each period chosen under paragraph (a) all amounts, each of which is the value, determined in accordance with section 3702, of a property, or a portion of a property, owned by the registered charity, and not used directly in charitable activities or administration, on the last day of the period; aggregate all amounts, each of which is the aggregate of values determined for each period under paragraph (b); and divide the aggregate amount determined under paragraph (c) by the number of periods chosen under paragraph (a). For the purposes of subsection (1) and subject to subsection (3), the number of periods chosen by a registered charity under paragraph (1)(a) shall, unless otherwise authorized by the Minister, be used for the taxation year and for all subsequent taxation years; and a registered charity is deemed to have existed on the last day of each of the periods chosen by it. The number of periods chosen under paragraph (1)(a) may be changed by the registered charity for its first taxation year commencing after 1986 and the new number shall, unless otherwise authorized by the Minister, be used for that taxation year and all subsequent taxation years. For the purposes of subsection 3701(1), the value of a property, or a portion of a property, owned by a registered charity, and not used directly in charitable activities or administration, on the last day of a period is determined as of that day to be in the case of a non-qualified investment of a private foundation, the greater of its fair market value on that day and its cost amount to the private foundation; subject to paragraph (c), in the case of property other than a non-qualified investment that is a share of a corporation that is listed on a designated stock exchange, the closing price or the average of the bid and asked prices of that share on that day or, if there is no closing price or bid and asked prices on that day, on the last preceding day for which there was a closing price or bid and asked prices, a share of a corporation that is not listed on a designated stock exchange, the fair market value of that share on that day, an interest in real property or a real right in an immovable, the fair market value on that day of the interest or right less the amount of any debt of the registered charity incurred in respect of the acquisition of the interest or right and secured by the interest or right, where the debt bears a reasonable rate of interest, a contribution that is the subject of a pledge, nil, an interest, or for civil law a right, in property where the registered charity does not have the present use or enjoyment of the interest or right, nil, a life insurance policy, other than an annuity contract, that has not matured, nil, and a property not described in any of subparagraphs (i) to (vi), the fair market value of the property on that day; and in the case of any property described in paragraph (b) that is owned in connection with the charitable activities of the registered charity and is a share of a limited-dividend housing company referred to in paragraph 149(1)(n) of the Act or a loan, that has ceased to be used for charitable purposes and is being held pending disposition or for use in charitable activities, or that has been acquired for use in charitable activities, the lesser of the fair market value of the property on that day and an amount determined by the formula is the income earned on the property in the period, and is the number of months in the period. For the purposes of subsection (1), a method that the Minister may accept for the determination of the fair market value of property or a portion thereof on the last day of a period is an independent appraisal made in the case of property described in subparagraph (1)(b)(ii) or (iii), not more than three years before that day; and in the case of property described in paragraph (1)(a), subparagraph (1)(b)(vii) or paragraph (1)(c), not more than one year before that day. For the purpose of subsection 149.1(14) of the Act, the following is prescribed information for the public information return of a charity in a taxation year: in respect of each grantee organization that received total qualifying disbursements from the charity in excess of $5,000 in the taxation year, the name of the grantee organization; the purpose of each qualifying disbursement made to a grantee organization referred to in paragraph (a) in the taxation year; and the total amount disbursed by the charity to each grantee organization referred to in paragraph (a) in the taxation year. Every individual who is required by subsection 237(1) of the Act to apply to the Minister of National Health and Welfare for assignment to him of a Social Insurance Number shall do so by delivering or mailing to the local office of the Canada Employment and Immigration Commission nearest to the individual’s residence, a completed application in the form prescribed by the Minister for that purpose. income of a taxpayer for a taxation year from mining operations in a province means the income, for the taxation year, that is derived from mining operations in the province as computed under the laws of the province that impose an eligible tax described in subsection (3). (revenu) mine includes any work or undertaking in which a mineral ore is extracted or produced and includes a quarry. (mine) mineral ore includes an unprocessed mineral or mineral-bearing substance. (minerai) mining operations means the extraction or production of mineral ore from or in a mine; the transportation of mineral ore to the point of egress from the mine; and the processing of mineral ore (other than iron ore) to the prime metal stage or its equivalent, and iron ore to a stage that is not beyond the pellet stage or its equivalent. (exploitation minière) non-Crown royalty means a royalty contingent on production of a mine or computed by reference to the amount or value of production from mining operations in a province but does not include a royalty that is payable to the Crown in right of Canada or a province. (redevance non gouvernementale) processing includes all forms of beneficiation, smelting and refining. (transformation) For the purpose of paragraph 20(1)(v) of the Act, the amount allowed for a taxation year in respect of taxes on income from mining operations of a taxpayer is the total of all amounts each of which is an eligible tax that is paid or payable by the taxpayer on the income of the taxpayer for the taxation year from mining operations, or on a non-Crown royalty included in computing the income of the taxpayer for the taxation year; an eligible tax that is paid by the taxpayer in the taxation year on either the income of the taxpayer for a previous taxation year from mining operations or a non-Crown royalty included in computing the income of the taxpayer for a previous taxation year, if the amount was deductible in computing the income of the taxpayer for the previous taxation year, the amount has not been deducted in computing the income of the taxpayer for a taxation year that is prior to the taxation year, and an assessment of the taxpayer to take into account a deduction in respect of the eligible tax under the Act for the previous taxation year would be precluded because of subsections 152(4) to (5) of the Act; or interest in respect of eligible tax referred to in paragraph (a) or (b) that is paid in the taxation year by the taxpayer to the province imposing the eligible tax. An eligible tax referred to in subsection (2) is a tax, on the income of a taxpayer for a taxation year from mining operations in a province, that is levied under a law of the province, imposed only on persons engaged in mining operations in the province, and paid or payable to the province, an agent of Her Majesty in right of the province, or a municipality in the province, in lieu of taxes on property or on any interest, or for civil law any right, in property (other than in lieu of taxes on residential property or on any interest, or for civil law any right, in residential property); and a tax, on an amount received or receivable by a person as a non-Crown royalty, that is levied under a law of a province, imposed specifically on persons who hold a non-crown royalty on mining operations in the province, and paid or payable to the province or to an agent of Her Majesty in right of the province. [Repealed, SOR/81-251, s. 1] For the purposes of subsection 20(2.1) of the Act, the amount of interest to be verified by the insurer in respect of a taxpayer shall be verified in prescribed form no later than the last day on which the taxpayer is required to file his return of income under section 150 of the Act for the taxation year in respect of which the interest was paid. For the purposes of subsection 20(9) of the Act, an election shall be made by filing with the Minister the following documents in duplicate: a letter from the taxpayer specifying the amount in respect of which the election is being made; and where the taxpayer is a corporation, a certified copy of the resolution of the directors authorizing the election to be made. For the purposes of subparagraph 115E(f)(i) of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), the value of any income right, annuity, term of years, life or other similar estate or interest in expectancy shall be determined in accordance with the rules and standards, including standards as to mortality and interest, as are prescribed by the Estate Tax Regulations pursuant to the provisions of subparagraph 58(1)(s)(i) of the Estate Tax Act. For the purposes of this Part, quarter means any of the following periods in a calendar year: the period beginning on January 1 and ending on March 31; the period beginning on April 1 and ending on June 30; the period beginning on July 1 and ending on September 30; and the period beginning on October 1 and ending on December 31. (trimestre) Subject to section 4302, for the purposes of every provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General, the prescribed rate in effect during any particular quarter is the total of the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and 4 per cent; every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister to a taxpayer, the prescribed rate in effect during any particular quarter is the total of the rate determined under subparagraph (a)(i) in respect of the particular quarter, and if the taxpayer is a corporation, zero per cent, and in any other case, 2 per cent; subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; and every other provision of the Act in which reference is made to a prescribed rate of interest or to interest at a prescribed rate, the prescribed rate in effect during any particular quarter is the rate determined under subparagraph (a)(i) in respect of the particular quarter. Notwithstanding section 4301, for the purposes of paragraph 16.1(1)(d) of the Act and subsection 1100(1.1), the interest rate in effect during any month is the rate that is one percentage point greater than the rate that was, during the month before the immediately preceding month, the average yield, expressed as a percentage per year rounded to two decimal points, prevailing on all outstanding domestic Canadian-dollar Government of Canada bonds on the last Wednesday of that month with a remaining term to maturity of over 10 years, as first published by the Bank of Canada. For the purposes of section 24 and subsection 26(11) of the Income Tax Application Rules, a share or security named in Schedule VII is hereby prescribed to be a publicly-traded share or security; and for each such share or security, the amount set out in Column II of Schedule VII opposite that share or security is hereby prescribed as the amount, if any, prescribed in respect of that property. In Schedule VII, the abbreviation “Cl” means “Class”; “Com” means “Common”; “Cv” means “Convertible”; “Cu” means “Cumulative”; “Pc” means “Per Cent”; “Pr” means “Preferred” or “Preference” as the case may be; “Pt” means “Participating”; “Rt” means “Right”; and “Wt” means “Warrant”. Any election by a taxpayer under subsection 80.1(1), (2), (4), (5), (6) or (9) of the Act shall be made on or before the day on or before which the return of income is required to be filed pursuant to section 150 of the Act for the taxation year in which the assets referred to in the particular election were acquired by him. Property is a prescribed building for the purposes of the definitions qualified property and qualified resource property in subsection 127(9) of the Act if it is depreciable property of the taxpayer that is a building or grain elevator and it is erected on land owned or leased by the taxpayer, that is included in Class 1, 3, 6, 20, 24 or 27 or paragraph (c), (d) or (e) of Class 8 in Schedule II; or that is included or would, but for Class 28, 41, 41.1 or 41.2 in Schedule II, be included in paragraph (g) of Class 10 in Schedule II. Property is prescribed machinery and equipment for the purposes of the definitions qualified property and qualified resource property in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1)) that is a property included in paragraph (k) of Class 1 or paragraph (a) of Class 2 in Schedule II; an oil or water storage tank; a property included in Class 8 in Schedule II (other than railway rolling stock); a vessel, including the furniture, fittings and equipment attached thereto; a property included in paragraph (a) of Class 10 or Class 22 or 38 in Schedule II (other than a car or truck designed for use on highways or streets);

notwithstanding paragraph (e), a logging truck acquired after March 31, 1977 to be used in the activity of logging and having a weight, including the weight of property the capital cost of which is included in the capital cost of the truck at the time of its acquisition (but for greater certainty not including the weight of fuel), in excess of 16,000 pounds; a property included in any of paragraphs (b) to (f), (h), (j), (k), (o), (r), (t) or (u) of Class 10 in Schedule II, or property included in paragraph (b) of Class 41 in Schedule II and that would otherwise be included in paragraph (j), (k), (r), (t) or (u) of Class 10 in Schedule II; a property included in paragraph (n) of Class 10, or Class 15, in Schedule II (other than a roadway); a property included in any of paragraphs (a) to (f) of Class 9 in Schedule II; a property included in Class 28, in paragraph (a), (a.1), (a.2) or (a.3) of Class 41 or in Class 41.1 or 41.2 in Schedule II that would, but for Class 28, 41, 41.1 or 41.2, as the case may be, be included in paragraph (k) or (r) of Class 10 of Schedule II; a property included in Class 21, 24, 27, 29, 34, 39, 40, 43, 45, 46, 50, 52 or 53 in Schedule II; a property included in paragraph (c) or (d) of Class 41 in Schedule II; property included in Class 43.1 in Schedule II because of paragraph (c) of that Class; or a property included in Class 43.2 in Schedule II because of paragraph (a) of that Class. Property is prescribed energy generation and conservation property for the purposes of the definition qualified property in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1) or (2)) that is a property included in any of subparagraph (a.1)(i) of Class 17 and Classes 43.1, 43.2 and 48 in Schedule II. For the purposes of the definition qualified transportation equipment in subsection 127(9) of the Act, the following depreciable property of a taxpayer (other than qualified property as defined by subsection 127(9) of the Act) is prescribed equipment: property that is included in Class 10 in Schedule II by virtue of subparagraph (m)(i), (ii) or (iii) of that Class, or property described in paragraph (m) of Class 10 in Schedule II (other than property described in subparagraph (iv) thereof) that is included in Class 28 or 41 in Schedule II; a railway locomotive or railway car, or included in Class 35 in Schedule II; a truck, tractor or trailer that is included in Class 10 in Schedule II because of paragraph (e) of that Class or in Class 16 in Schedule II because of paragraph (g) of that Class, is designed for the purpose of carrying freight, or hauling a trailer that carries freight, on highways, and [Repealed, SOR/85-696, s. 12] in the case of a truck or tractor, has a “gross vehicle weight rating” (within the meaning assigned that expression by the Motor Vehicle Safety Regulations) of 26,001 pounds or more, and in the case of a trailer, is of a type designed to be hauled under normal operating conditions by a truck or tractor described in this subparagraph, but for greater certainty, was not acquired principally for the purpose of carrying or hauling freight locally or making local pickups or deliveries, or machinery or equipment included in Class 8 or 10 in Schedule II that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act; property included in Class 10 in Schedule II by virtue of paragraph (a) of that Class that is a bus designed for the purpose of seating 20 or more passengers and carrying their luggage, but not including a bus acquired principally for the purpose of transportation within any metropolitan area, city, town, village, municipality or other similar community or area, or a school bus; a vessel included in Class 7 in Schedule II (other than a vessel under construction), machinery or equipment included in Class 7 or 8 in Schedule II that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act, or a vessel included in a separate class prescribed by subsection 1101(2a); included in Class 9 in Schedule II by virtue of paragraph (g) of that Class, or machinery or equipment included in Class 9 in Schedule II by virtue of paragraph (h) or (i) of that Class that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act; and property included in Class 8 in Schedule II that is a reusable cargo container designed with external fittings for the purpose of handling, securing or stacking and having a carrying capacity of 500 cubic feet or more. For the purposes of the definition certified property in subsection 127(9) of the Act, each of the following areas is a prescribed area: that portion of the Province of Newfoundland comprising the census divisions 2 to 4 and 7 to 10; that portion of the Province of Prince Edward Island comprising the Kings census division; that portion of the Province of Nova Scotia comprising the census divisions of Cape Breton, Guysborough, Inverness, Richmond, and Victoria; that portion of the Province of New Brunswick comprising the census divisions of Gloucester, Kent, Madawaska, Northumberland, and Restigouche; that portion of the Province of Quebec comprising all of the area north of the 50th parallel of latitude, other than the area within the limits of the city of Sept-Iles, the Magdalen Islands, and the census divisions of Bonaventure, Gaspé-Est, Gaspé-Ouest, Matane, Matapédia, Rimouski, other than the area within the limits of the city of Rimouski, Rivière-du-Loup, and Témiscouata; that portion of the Province of Ontario that is north of the 50th parallel of latitude; that portion of the Province of Manitoba comprising the census divisions 19 and 21 to 23, other than the area within the limits of the city of Thompson; that portion of the Province of Saskatchewan comprising the census division of Northern Saskatchewan; that portion of the Province of Alberta comprising the census division of Peace River, other than the area within the limits of the city of Grande Prairie; that portion of the Province of British Columbia comprising the Peace River-Liard census division; and all of the Yukon Territory and the Northwest Territories. For the purposes of subsection (1), the expression “census divisions” has the same meaning as in the Dictionary of 1971 Census Terms, Statistics Canada Catalogue Number 12-540, and the Census Divisions and Subdivisions, Statistics Canada Catalogues Numbered 92-704, 92-705, 92-706 and 92-707. For the purposes of the definition qualified construction equipment in subsection 127(9) of the Act, prescribed equipment means depreciable property of a taxpayer, other than qualified property as defined by subsection 127(9) of the Act or qualified transportation equipment as defined by subsection 127(9) of the Act, that is a property included in Class 22 or 38 in Schedule II; a crane; a pile driver; or a dredge. For the purposes of paragraphs (a) and (c) of the definition approved project property in subsection 127(9) of the Act, property is a prescribed building if it is depreciable property of the taxpayer that is a building or grain elevator, erected on land owned or leased by the taxpayer, that is included in Class 1, 3, 6, 24, 27 or 37 or paragraph (c), (d) or (e) of Class 8 in Schedule II; or that is included or would, but for Class 28 or Class 41 in Schedule II, be included in paragraph (g) of Class 10 in Schedule II. For the purposes of paragraphs (b) and (d) of the definition approved project property in subsection 127(9) of the Act, property is prescribed machinery and equipment if it is depreciable property of the taxpayer (other than property referred to in subsection (1)) that is subject to paragraph (e), a property included in paragraph (a) of Class 10 or Class 22 or 38 in Schedule II (other than a car or truck designed for use on highways or streets); a logging truck acquired to be used in the activity of logging and having a weight, including the weight of property the capital cost of which is included in the capital cost of the truck at the time of its acquisition (but for greater certainty not including the weight of fuel), in excess of 16,000 pounds; a property included in any of paragraphs (b) to (f), (h) to (k), (o), (q), (r), (t) or (u) of Class 10 in Schedule II; a property included in Class 28 or 41 in Schedule II that would, but for that classes, be included in paragraph (k) or (r) of Class 10 in Schedule II; a property included in any of Classes 21, 24, 27, 29, 34, 39, 40 and 43 in Schedule II; a property included in Class 37 in Schedule II; or a vessel (other than a supply boat, workboat, drilling rig, workover rig or shuttle tanker), including the furniture, fittings and equipment attached thereto, that is used primarily for heavy-lifting or pipe-laying in the construction of, or the provision of lodging services in the servicing of, an installation, structure, apparatus or artificial island that is used for offshore hydrocarbon exploration or exploitation. For the purposes of the definition for an approved purpose in paragraph (e) of the definition approved project property in subsection 127(9) of the Act, a prescribed activity of a taxpayer is operating a hotel, motel, camping ground, travel trailer park or any similar lodging facility; providing facilities that are ancillary to a lodging facility referred to in paragraph (a) that is owned by the taxpayer and that are intended for the use and enjoyment of the occupants of the lodging facility; providing facilities that are primarily for the receiving, storage and distribution of goods owned by persons with whom the taxpayer deals at arm’s length; providing to a business owned by a person with whom the taxpayer deals at arm’s length engineering or architectural services, computer services, or other technical or scientific services, but not including financial, legal, accounting, medical or dental services; the services of an employment agency, or advertising services, other than advertising services in a medium owned by the taxpayer; or operating a vessel described in paragraph 4604(2)(l). For the purposes of paragraph (b) of the definition contract payment in subsection 127(9) of the Act, a prescribed amount is an amount received from the Canadian Commercial Corporation in respect of an amount received by that Corporation from a government, municipality or other public authority other than the government of Canada or of a province, a Canadian municipality or other Canadian public authority. For the purposes of the definition specified percentage in subsection 127(9) of the Act, prescribed designated region means a region of Canada, other than the Gaspé peninsula and the provinces of Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland, including Labrador, that was a designated region on December 31, 1984, under the Regional Development Incentives Designated Region Order, 1974. joint exploration corporation has the meaning assigned by paragraph 66(15)(g) of the Act; (société d’exploration en commun) principal-business corporation has the meaning assigned by paragraph 66(15)(h) of the Act; (société exploitant une entreprise principale) shareholder corporation has the meaning assigned by paragraph 66(15)(i) of the Act; (société actionnaire) well means an exploratory probe or an oil or gas well. (puits) For the purposes of the definition qualified Canadian exploration expenditure in subsection 127(9) of the Act, the prescribed expenditure of a taxpayer for a taxation year is the aggregate of all amounts each of which is the amount, if any, by which the specified expenses of the taxpayer for the year in respect of the well exceed the base amount of the taxpayer at the end of the year in respect of the well. For the purposes of this section, the specified expenses of a taxpayer for a taxation year in respect of a well that is an exploratory probe is the aggregate of all expenses that would be Canadian exploration expenses of the taxpayer by reason of any of subparagraphs 66.1(6)(a)(i), (iv) and (v) of the Act if the references in subparagraphs 66.1(6)(a)(iv) and (v) of the Act (as those subparagraphs read on November 30, 1985) to “any of subparagraphs (i) to (iii.1)” were read as references to “subparagraph (i)”; were incurred in the year, and after November 1985 and before 1991; were incurred in the drilling or completing of the exploratory probe or in building a temporary access road to, or preparing the site in respect of, the probe; and are not non-qualifying expenses of the taxpayer. For the purposes of this section, the specified expenses of a taxpayer for a taxation year in respect of a well that is an oil or gas well is the aggregate of all expenses that would be Canadian exploration expenses of the taxpayer by virtue of any of subparagraphs 66.1(6)(a)(ii) to (ii.2), (iv) and (v) of the Act if the references in subparagraphs 66.1(6)(a)(iv) and (v) of the Act (as those subparagraphs read on November 30, 1985) to “subparagraphs (i) to (iii.1)” were read as references to “subparagraphs (ii) to (ii.2)”; were incurred in respect of the well after November 1985 and before 1991; and For the purposes of subsections (3) and (4), a non-qualifying expense of a taxpayer is an expense that may reasonably be regarded as having been incurred as consideration for services to be rendered after 1990 or for property that cannot reasonably be considered to be for use by the taxpayer before 1991; was or is to be renounced by the taxpayer at any time under subsection 66(10.1) or (12.6) of the Act; is or was a Canadian exploration and development overhead expense, within the meaning of section 1206, of the taxpayer, of a partnership of which the taxpayer was a member or of a joint exploration corporation of which the taxpayer was a shareholder corporation; is an eligible cost or expense within the meaning of the Petroleum Incentives Program Act or the Petroleum Incentives Program Act, Chapter P-4.1 of the Statutes of Alberta, 1981, in respect of which, or in respect of part of which, the taxpayer, a partnership of which the taxpayer was a member, a joint exploration corporation of which the taxpayer was a shareholder corporation or a principal-business corporation of which the taxpayer was a shareholder, has received, is deemed to have received, is entitled to receive or may reasonably be expected to receive an incentive under either of those Acts; or was included in determining the specified expenses of any other taxpayer for a taxation year. For the purposes of this section, the base amount of a taxpayer at the end of a particular taxation year in respect of a well is the amount, if any, by which the taxpayer’s threshold amount in respect of the well exceeds the aggregate of all amounts that would have been the taxpayer’s specified expenses for any taxation year in respect of the well if the references in subparagraphs (3)(b)(ii) and (4)(b)(ii) to “after November 1985 and before 1991” were read as “after March 1985 and before December 1985”, and subsection (5) were read without reference to paragraph (d) thereof; all amounts referred to in paragraph (5)(d) for the particular taxation year or a preceding taxation year in respect of the well that would have been included in determining the taxpayer’s specified expenses for the particular taxation year or the preceding taxation year but for that paragraph; and all amounts that are the taxpayer’s specified expenses for any preceding taxation year in respect of the well. For the purposes of this section, the threshold amount of a taxpayer in respect of a well is where no agreement has been filed with the Minister under subsection (8) in respect of the well, $5,000,000; and where an agreement has been filed with the Minister under subsection (8) in respect of the well, the amount, if any, allocated to the taxpayer under the agreement. For the purposes of this section, where the aggregate of all expenses in respect of a well, each of which would be included in determining the specified expenses of a taxpayer for a taxation year in respect of the well if subsection (5) were read without reference to paragraph (d) thereof, or would be included in determining the specified expenses of a taxpayer for a taxation year in respect of the well if subsection (5) were read without reference to paragraph (d) thereof, exceeds $5,000,000, all taxpayers who have incurred those expenses or in whose favour or to whom any of those expenses have been renounced under subsection 66(10.1) or (12.6) of the Act may file with the Minister an agreement in writing in the prescribed form in respect of the well allocating amounts to some or all of those taxpayers if the amount allocated to each taxpayer does not exceed the total of such expenses that were incurred by the taxpayer in respect of the well, and that are not to be renounced by the taxpayer under subsection 66(10.1) or (12.6) of the Act in favour of or to any other person, and the aggregate of all amounts so allocated is not less than $5,000,000. For the purposes of this section, where the drilling of a well (in this subsection referred to as the “abandoned well”) is abandoned not because of the results obtained but because of geological or mechanical difficulties and the drilling of a new well (in this subsection referred to as the “new well”) is commenced, and having regard to all the circumstances, including the lapse of time between the abandonment of the abandoned well and the commencement of the new well and the proximity of the sites of the wells, it is reasonable to regard the new well as a replacement for the abandoned well, the abandoned well and the new well shall be deemed to be one well. For the purpose of this section, where an expense of a joint exploration corporation is deemed by subsection 66(10.1) or (10.2) of the Act to be an expense of a shareholder corporation of the joint exploration corporation, the shareholder corporation shall be deemed to have incurred the expense at the time it was incurred by the joint exploration corporation. For the purpose of this section, where an expense of a principal-business corporation is deemed by subsection 66(12.61) or (12.63) of the Act to be an expense of a shareholder of the corporation, the shareholder shall be deemed to have incurred the expense at the time it was incurred by the principal-business corporation. For the purposes of this section, where an expense incurred by a partnership is, under subparagraph 66.1(6)(a)(iv) of the Act, a Canadian exploration expense of a taxpayer who was a member of the partnership, the taxpayer shall be deemed to have incurred the Canadian exploration expense at the time the expense was incurred by the partnership. For the purposes of this section, where an expense is a Canadian development expense of a taxpayer that is, under subsection 66.1(9) of the Act, deemed to be a Canadian exploration expense of the taxpayer, the taxpayer shall be deemed to have incurred the Canadian exploration expense at the time the Canadian development expense was incurred. For the purposes of the definition specified percentage in subsection 127(9) of the Act, the following region is a prescribed offshore region: that submarine area, not within a province, adjacent to the coast of Canada and extending throughout the natural prolongation of that portion of the land territory of Canada comprising the Gaspé Peninsula and the provinces of Newfoundland, Prince Edward Island, Nova Scotia and New Brunswick to the outer edge of the continental margin or to a distance of two hundred nautical miles from the baselines from which the territorial sea of Canada is measured, whichever is the greater; and the waters above the submarine area referred to in paragraph (a). For the purpose of paragraph (c.1) of the definition qualified property in subsection 127(9) of the Act, the area prescribed is the area comprising the Provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and the Gaspé Peninsula. Any election by an individual under subsection 26(7) of the Income Tax Application Rules, shall be made by filing with the Minister the form prescribed. For the purposes of subparagraph (b)(i) of the definition public corporation in subsection 89(1) of the Act, the following conditions are prescribed in respect of a corporation other than a cooperative corporation (within the meaning assigned by section 136 of the Act) or a credit union: a class of shares of the capital stock of the corporation designated by the corporation in its election or by the Minister in his notice to the corporation, as the case may be, shall be qualified for distribution to the public; there shall be no fewer than where the shares of that class are equity shares, 150, and in any other case, 300 persons, other than insiders of the corporation, each of whom holds not less than one block of shares of that class, and shares of that class having an aggregate fair market value of not less than $500; and insiders of the corporation shall not hold more than 80 per cent of the issued and outstanding shares of that class. For the purposes of subparagraph (c)(i) of the definition public corporation in subsection 89(1) of the Act, the following conditions are prescribed in respect of a corporation: insiders of the corporation shall hold more than 90 per cent of the issued and outstanding shares of each class of shares of the capital stock of the corporation that was, at any time after the corporation last became a public corporation, listed on a designated stock exchange in Canada, or was a class, designated as described in paragraph (1)(a), by virtue of which the corporation last became a public corporation; in respect of each class of shares described in subparagraph (a)(i) or (ii), there shall be fewer than where the shares of that class are equity shares, 50, and in any other case, 100 there shall be no class of shares of the capital stock of the corporation that is qualified for distribution to the public and complies with the conditions described in paragraphs (1)(b) and (c). Where, by virtue of an amalgamation (within the meaning assigned by section 87 of the Act) of predecessor corporations any one or more of which was, immediately before the amalgamation, a public corporation, shares of any class of the capital stock of any such public corporation that was at any time after the corporation last became a public corporation, listed on a designated stock exchange in Canada, or the class, designated as described in paragraph (1)(a), by virtue of which the corporation last became a public corporation, are converted into shares of any class (in this subsection referred to as the “new class”) of the capital stock of the new corporation, the new class shall, for the purposes of subsection (2), be deemed to be a class, designated as described in paragraph (1)(a), by virtue of which the new corporation last became a public corporation. Any election under subparagraphs (b)(i) or (c)(i) of the definition public corporation in subsection 89(1) of the Act shall be made by filing with the Minister the following documents: a statutory declaration made by a director of the corporation stating that, after reasonable inquiry for the purpose of informing himself in that regard, to the best of his knowledge the corporation complies with all the prescribed conditions that must be complied with at the time the election is made. For the purposes of paragraph 107(1)(a) and subsections 107(1.1), (2) and (4.1) of the Act, the following are prescribed trusts: a trust maintained primarily for the benefit of employees of a corporation or two or more corporations which do not deal at arm’s length with each other, where one of the main purposes of the trust is to hold interests in shares of the capital stock of the corporation or corporations, as the case may be, or any corporation not dealing at arm’s length therewith; a trust established exclusively for the benefit of one or more persons each of whom was, at the time the trust was created, either a person from whom the trust received property or a creditor of that person, where one of the main purposes of the trust is to secure the payments required to be made by or on behalf of that person to such creditor; and a trust all or substantially all of the properties of which consist of shares of the capital stock of a corporation, where the trust was established pursuant to an agreement between two or more shareholders of the corporation and one of the main purposes of the trust is to provide for the exercise of voting rights in respect of those shares pursuant to that agreement. In applying at any time paragraph 132(6)(c) of the Act, the following are prescribed conditions in respect of a trust: the following conditions are met: there has been at or before that time a lawful distribution in a province to the public of units of the trust and a prospectus, registration statement or similar document was not, under the laws of the province, required to be filed in respect of the distribution, and the trust was created after 1999 and on or before that time, or satisfies, at that time, the conditions prescribed in section 4801.001, or a class of the units of the trust is, at that time, qualified for distribution to the public; and in respect of a class of the trust’s units that meets at that time the conditions described in paragraph (a), there are at that time no fewer than 150 beneficiaries of the trust, each of whom holds not less than one block of units of the class, and units of the class having an aggregate fair market value of not less than $500. For the purpose of applying at any particular time subclause 4801(a)(i)(B)(II), the following are the prescribed conditions: the trust was created before 2000; the trust was a unit trust on July 18, 2005; the particular time is after 2003; and the trusts elects by notifying the Minister, in writing before the trust’s filing-due date for its 2012 taxation year, that this section applies to it. For the purpose of subsection 132.11(1) of the Act, a trust that is a money market fund as defined in National Instrument 81-102 Mutual Funds, as amended from time to time, of the Canadian Securities Administrators is a prescribed trust. For the purposes of the definition eligible business entity in subsection 204.8(1), clause 204.82(2.2)(d)(i)(B) and paragraph 204.82(6)(a) of the Act, a corporation registered under Part III.1 of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992, is a prescribed corporation. For the purpose of paragraph (c) of the definition exempt trust in subsection 233.2(1) of the Act, the following conditions are hereby prescribed in respect of a trust: at least 150 beneficiaries of the trust are beneficiaries in respect of the same class of units of the trust; and at least 150 of the beneficiaries in respect of that class each hold at least one block of units of that class, and units of that class having a total fair market value of at least $500. For the purposes of clause 149(1)(o.2)(iv)(D) of the Act, the following are prescribed persons: a trust all the beneficiaries of which are trusts described in clause 149(1)(o.2)(iv)(B) of the Act; a corporation incorporated before November 17, 1978 solely in connection with, or for the administration of, a registered pension plan; a trust or corporation established by or arising by virtue of an act of a province the principal activities of which are to administer, manage or invest the monies of a pension fund or plan that is established pursuant to an act of the province or an order or regulation made thereunder; the Canada Pension Plan Investment Board; the Public Sector Pension Investment Board; a pooled registered pension plan; a trust or corporation established by or arising by virtue of an act of a province in connection with a scheme or program for the compensation of workers injured in an accident arising out of or in the course of their employment; Her Majesty in right of a province; a trust all of the beneficiaries of which are any combination of registered pension plans, trusts described in clause 149(1)(o.2)(iv)(B) or (C) of the Act, and persons described in this subsection; the Pension Benefits Guarantee Fund under the Pension Benefits Act, R.S.O. 1990, c. P.8 and any corporation established solely for investing the assets of the Pension Benefits Guarantee Fund; and a corporation all of the shares of the capital stock of which are owned by one or more of the following: persons described in this subsection. For the purposes of subparagraph 127.55(f)(iii) and paragraphs 149(1)(o.4) and 150(1.2)(i) of the Act, a trust is prescribed at any particular time if, at all times after its creation and before the particular time, it was resident in Canada; its only undertaking was the investing of its funds; it never borrowed money except where the borrowing was for a term not exceeding 90 days and it is established that the borrowing was not part of a series of loans or other transactions and repayments; it never accepted deposits; and each of the beneficiaries of the trust was a trust governed by a deferred profit sharing plan, a pooled registered pension plan or a registered pension plan. For the purposes of paragraph 8502(i.2), if an amount is borrowed (other than an amount described in paragraph (1.1)(c)) at a particular time by a trust described in subsection (1.1) in relation to defined benefit provisions of one or more registered pension plans that are beneficiaries of the trust, each such defined benefit provision is deemed to have borrowed at the particular time an amount that is equal to the following amount: if paragraph (b) does not apply, the amount determined by the formula is the amount borrowed by the trust at the particular time, is the fair market value at the particular time of the interest of the defined benefit provision in (i)if the borrowing relates to a particular class of units of the trust, that class of units, and if the borrowing relates to a particular class of units of the trust, that class of units, and (ii)in any other case, the income and capital of the trust, and in any other case, the income and capital of the trust, and is the fair market value at the particular time of all interests of defined benefit provisions in (ii)in any other case, the income and capital of the trust; and in any other case, the income and capital of the trust; and the portion of the amount borrowed by the trust at the particular time that is allocated to the defined benefit provision under an agreement entered into between the trust and the defined benefit provision, provided that the agreement allocates to the beneficiaries the total amount borrowed by the trust. If an amount borrowed by a trust is deemed to have been borrowed by a defined benefit provision under subsection (1.2), the amount is deemed not to have been borrowed by the trust for the purposes of paragraph (1.1)(c). [Repealed, 2017, c. 20, s. 33] block of shares means, with respect to any class of the capital stock of a corporation, 100 shares, if the fair market value of one share of the class is less than $25, 25 shares, if the fair market value of one share of the class is $25 or more but less than $100, and 10 shares, if the fair market value of one share of the class is $100 or more; (tranche d’actions) block of units means, with respect to any class of units of a trust, 100 units, if the fair market value of one unit of the class is less than $25, 25 units, if the fair market value of one unit of the class is $25 or more but less than $100, and 10 units, if the fair market value of one unit of the class is $100 or more; (tranche d’unités) equity share has the meaning assigned by section 204 of the Act; (action à revenu variable) insider of a corporation has the meaning that would be assigned by section 100 of the Canada Corporations Act, as it read on June 22, 2009, if the references in that section to “insider of a company”, “public company” and “equity shares” were read as references to “insider of a corporation”, “corporation” and “shares” respectively, and includes a person who is an employee of the corporation, or of a person who does not deal at arm’s length with the corporation, and whose right to sell or transfer any share of the capital stock of the corporation, or to exercise the voting rights, if any, attaching to the share, is restricted by the terms and conditions attaching to the share, or any obligation of the person, under a contract, in equity or otherwise, to the corporation or to any person with whom the corporation does not deal at arm’s length. (dirigeant d’une société) For the purposes of this Part, a class of shares of the capital stock of a corporation or a class of units of a trust is qualified for distribution to the public only if a prospectus, registration statement or similar document has been filed with, and, where required by law, accepted for filing by, a public authority in Canada pursuant to and in accordance with the law of Canada or of any province and there has been a lawful distribution to the public of shares or units of that class in accordance with that document; the class is a class of shares, any of which were issued by the corporation at any time after 1971 while it was a public corporation in exchange for shares of any other class of the capital stock of the corporation that was, immediately before the exchange, qualified for distribution to the public; in the case of any class of shares, any of which were issued and outstanding on January 1, 1972, the class complied on that date with the conditions described in paragraphs 4800(1)(b) and (c); or in the case of any class of units, any of which were issued and outstanding on January 1, 1972, the class complied on that date with the condition described in paragraph 4801(b). For the purposes of paragraphs 4800(1)(b), 4800(2)(b) and 4801(b), where a group of persons holds not less than one block of shares of any class of shares of the capital stock of a corporation or one block of units of any class of a trust, as the case may be, and shares or units, as the case may be, of that class having an aggregate fair market value of not less than $500, that group shall, subject to subsection (4), be deemed to be one person for the purposes of determining the number of persons who hold shares or units, as the case may be, of that class. In determining under subsection (3) the persons who belong to a group for the purposes of determining the number of persons who hold shares or units, as the case may be, of a particular class, the following rules apply: no person shall be included in more than one group; no person shall be included in a group if he holds not less than one block of shares or one block of units, as the case may be, of that class, and shares or units, as the case may be, of that class having an aggregate fair market value of not less than $500; and the membership of each group shall be determined in the manner that results in the greatest possible number of groups. For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act, paragraph (h) of the definition qualified investment in section 204 of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for the plan trust during the calendar year in which the particular time occurs or the immediately preceding year; a share of the capital stock of a public corporation other than a mortgage investment corporation; a share of the capital stock of a mortgage investment corporation that does not hold as part of its property at any time during the calendar year in which the particular time occurs any indebtedness, whether by way of mortgage or otherwise, of a person who is a connected person under the governing plan of the plan trust; a bond, debenture, note or similar obligation of a public corporation other than a mortgage investment corporation; a unit of a mutual fund trust; [Repealed, 2007, c. 29, s. 32] a unit of a trust if the trust would be a mutual fund trust if Part XLVIII were read without reference to paragraph 4801(a), and there has been a lawful distribution in a province to the public of units of the trust and a prospectus, registration statement or similar document was not required under the laws of the province to be filed in respect of the distribution; an option, a warrant or a similar right (each of which is, in this paragraph, referred to as the “security”) issued by a person or partnership (in this paragraph referred to as the “issuer”) that gives the holder the right to acquire, either immediately or in the future, property all of which is a qualified investment for the plan trust or to receive a cash settlement in lieu of delivery of that property, where the property is a share of the capital stock of, a unit of, or a debt issued by, the issuer or another person or partnership that does not, when the security is issued, deal at arm’s length with the issuer, or a warrant issued by the issuer or another person or partnership that does not, when the security is issued, deal at arm’s length with the issuer, that gives the holder the right to acquire a share or unit described in clause (A), and the issuer is not a connected person under the governing plan of the plan trust; a share of, or deposit with, a société d’entraide économique, a share of, or similar interest in a credit union; a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by, or a deposit with, a credit union that has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by the plan trust of a share or obligation of, or a deposit with, the credit union, or a registered investment of a share or obligation of, or a deposit with, the credit union if the plan trust has invested in that registered investment, and a credit union shall be deemed to have granted a benefit or privilege to a person in a year if at any time in that year that person continues to enjoy a benefit or privilege that was granted in a prior year; a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by a cooperative corporation (within the meaning assigned by subsection 136(2) of the Act) that throughout the taxation year of the cooperative corporation immediately preceding the year in which the obligation was acquired by the plan trust had not less than 100 shareholders or, if all its shareholders were corporations, not less than 50 shareholders, whose obligations were, at the end of each month of the last taxation year, if any, of the cooperative corporation prior to the date of acquisition of the obligation by the plan trust, or the period commencing three months after the date an obligation was first acquired by any plan trust and ending on the last day of the taxation year of the cooperative corporation in which that period commenced, whichever of the periods referred to in clause (A) or (B) commences later, held by plan trusts the average number of which is not less than 100 computed on the basis that no two plan trusts shall have the same individual as an annuitant or a beneficiary, as the case may be, and that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by the plan trust of a share or obligation of the cooperative corporation, or a registered investment of a share or obligation of the cooperative corporation if the plan trust has invested in that registered investment, and a cooperative corporation shall be deemed to have granted a benefit or privilege to a person in a year if at any time in that year that person continues to enjoy a benefit or privilege that was granted in a prior year; a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) of a Canadian corporation if payment of the principal amount of the obligation and the interest on the principal amount is guaranteed by a corporation or a mutual fund trust whose shares or units, as the case may be, are listed on a designated stock exchange in Canada, if the corporation is controlled directly or indirectly by one or more corporations, one or more mutual fund trusts, or one or more corporations and mutual fund trusts whose shares or units, as the case may be, are listed on a designated stock exchange in Canada, or if, at the time the obligation is acquired by the plan trust, the corporation that issued the obligation is a corporation that, in respect of its capital stock, has issued and outstanding share capital carried in its books at not less than $25 million, or a corporation that is controlled by a corporation described in clause (A) and has issued and outstanding bonds, debentures, notes or similar obligations having in the aggregate a principal amount of at least $10 million that are held by at least 300 different persons and were issued by the corporation by means of one or more offerings, provided that in respect of each such offering a prospectus, registration statement or similar document was filed with and, where required by law, accepted for filing by a public authority in Canada pursuant to and in accordance with the laws of Canada or a province and there was a lawful distribution to the public of those bonds, debentures, notes or similar obligations in accordance with that document; a security of a Canadian corporation that was issued pursuant to The Community Bonds Act, chapter C-16.1 of the Statutes of Saskatchewan, 1990, The Rural Development Bonds Act, chapter 47 of the Statutes of Manitoba, 1991-92, the Community Economic Development Act, 1993, chapter 26 of the Statutes of Ontario, 1993, or the New Brunswick Community Development Bond Program through which financial assistance is provided under the Economic Development Act, chapter E-1.11 of the Acts of New Brunswick, 1975, and the payment of the principal amount of which is guaranteed by Her Majesty in right of a province; a share of the capital stock of a Canadian corporation that is registered under section 11 of the Equity Tax Credit Act, chapter 3 of the Statutes of Nova Scotia, 1993, the registration of which has not been revoked under that Act; a share of the capital stock of a Canadian corporation that is registered under section 39 of the Risk Capital Investment Tax Credits Act, chapter 22 of the Statutes of the Northwest Territories, 1998, the registration of which has not been revoked under that Act; a share of the capital stock of a Canadian corporation that is registered under section 2 of the Community Development Equity Tax Credit Act, chapter C-13.01 of the Revised Statutes of Prince Edward Island, 1988, the registration of which has not been revoked under that Act; a share of the capital stock of a Canadian corporation that is registered under section 29 or 34 of the Investing in a Diversified Alberta Economy Act, S.A. 2016, c. I-10.5, the registration of which has not been revoked under that Act; indebtedness of a Canadian corporation (other than a corporation that is a connected person under the governing plan of the plan trust) represented by a bankers’ acceptance; [Repealed, 2009, c. 2, s. 105] a debt obligation of a debtor, or an interest, or for civil law a right, in that debt obligation, where the debt obligation is fully secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or would be fully secured were it not for a decline in the fair market value of the property after the debt obligation was issued, and the debtor (and any partnership that does not deal at arm’s length with the debtor) is not a connected person under the governing plan of the plan trust; a debt obligation secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or an interest, or for civil law a right, in that debt obligation, where the debt obligation is administered by an approved lender under the National Housing Act, and insured under the National Housing Act, or by a corporation that offers its services to the public in Canada as an insurer of mortgages or hypothecary claims and that is approved as a private insurer of mortgages or hypothecary claims by the Superintendent of Financial Institutions under subsection 6(1) of the Office of the Superintendent of Financial Institutions Act; a certificate evidencing an undivided interest, or for civil law an undivided right, in one or more properties, where all or substantially all of the fair market value of the certificate is attributable to property that is, or is incidental to, a debt obligation secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or property described in paragraph (a) or (b) of the definition qualified investment in section 204 of the Act that was substituted for the security referred to in clause (A) under the terms of the debt obligation, the certificate has, at the time of acquisition by the plan trust, an investment grade rating with a credit rating agency referred to in subsection (2), and the certificate is issued as part of an issue of certificates by the issuer for a total amount of at least $25 million; a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) where the taxable income of the corporation is exempt from tax under Part I of the Act because of paragraph 149(1)(l) of the Act, and before the particular time and after 1995, the corporation acquired, for a total consideration of not less than $25 million, property from Her Majesty in right of Canada or a province, and put that property to a use that is the same as or similar to the use to which the property was put before the acquisition described in subclause (I), or at the time of the acquisition of the debt by the plan trust, it was reasonable to expect that clause (A) would apply in respect of the debt no later than one year after the time of the acquisition;

a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) if the debt is issued by the corporation as part of an issue of debt by the corporation for an amount of at least $25 million, or at the time of the acquisition of the debt by the plan trust, the corporation had issued debt as part of a single issue for an amount of at least $25 million; a gold or silver legal tender bullion coin that is of a minimum fineness of 995 parts per 1000 in the case of gold and 999 parts per 1000 in the case of silver, that was produced by the Royal Canadian Mint, that has a fair market value at the particular time not exceeding 110 per cent of the fair market value of the coin’s gold or silver content, and that is acquired by the plan trust directly from the Royal Canadian Mint or from a corporation (in paragraphs (u) and (v) referred to as a “specified corporation”) that is a bank, a trust company, a credit union, an insurance corporation or a registered securities dealer, that is resident in Canada, and that is a corporation whose business activities are subject by law to the supervision of a regulating authority that is the Superintendent of Financial Institutions or a similar authority of a province; a gold or silver bullion bar, ingot or wafer that was produced by a metal refiner included in the London Bullion Market Association’s good delivery list of acceptable refiners for gold or silver, as the case may be, that bears the hallmark of the metal refiner that produced it and a stamp indicating its fineness and its weight, and that is acquired by the plan trust either directly from the metal refiner that produced it or from a specified corporation; a certificate issued by a specified corporation or the Royal Canadian Mint representing a claim of the holder of the certificate to property held by the issuer of the certificate, where the property would be property described in paragraph (t) or (u) if those paragraphs were read without reference to subparagraphs (t)(iv) and (u)(iv), respectively, and the certificate is acquired by the plan trust directly from the issuer of the certificate or from a specified corporation; or an American Depositary Receipt where the property represented by the receipt is listed on a designated stock exchange. For the purposes of paragraph (c.1) of the definition qualified investment in section 204 of the Act, each of the following is a prescribed credit rating agency: A.M. Best Company, Inc.; DBRS Limited; Fitch Ratings, Inc.; Moody’s Investors Service, Inc.; Standard & Poor’s Financial Services LLC; and a subsidiary or affiliate of a company listed in any of paragraphs (a) to (e), to the extent that it provides credit rating services outside of Canada on behalf of the company in respect of which it is the subsidiary or affiliate. For the purpose of paragraph (h) of the definition qualified investment in section 204 of the Act, a contract with a licensed annuities provider for an annuity payable to an employee who is a beneficiary under a deferred profit sharing plan beginning not later than the end of the year in which the employee attains 71 years of age, the guaranteed term of which, if any, does not exceed 15 years, is prescribed as a qualified investment for a trust governed by such a plan or revoked plan. [Repealed, SOR/2001-216, s. 6] For the purposes of paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a FHSA, a registered disability savings plan, a registered education savings plan or a TFSA at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year. Subject to subsection (9), for the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act and paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered retirement savings plan, a registered education savings plan and a registered retirement income fund at any time if at that time the property is not a prohibited investment for the trust and is a share of the capital stock of an eligible corporation (as defined in subsection 5100(1)); an interest of a limited partner in a small business investment limited partnership; or an interest in a small business investment trust. Subject to subsection (11), for the purposes of paragraph (h) of the definition qualified investment in section 204 of the Act, a property is prescribed as a qualified investment for a trust governed by a deferred profit sharing plan or revoked plan at any time if at that time the property is an interest of a limited partner in a small business investment limited partnership; or in a small business investment trust. [Repealed, 2017, c. 33, s. 95] For the purposes of subsection (6), where a trust governed by a registered retirement savings plan, a registered education savings plan or a registered retirement income fund holds an interest in a small business investment limited partnership, or an interest in a small business investment trust that holds a small business security (referred to in this subsection as the “designated security”) of a corporation, and a person who is an annuitant, a beneficiary or a subscriber under the plan or fund is a designated shareholder of the corporation, the interest shall not be a qualified investment for the trust governed by the plan or fund unless the designated security is a share of the capital stock of an eligible corporation, the partnership or trust, as the case may be, has no right to set off, assign or otherwise apply, directly or indirectly, the designated security against the interest, no person is obligated in any way, either absolutely or contingently, under any undertaking the intent or effect of which is to limit any loss that the plan or fund may sustain by virtue of the ownership, holding or disposition of the interest, or to ensure that the plan or fund will derive earnings by virtue of the ownership, holding or disposition of the interest, in the case of the partnership, there are more than 10 limited partners and no limited partner or group of limited partners who do not deal with each other at arm’s length holds more than 10 per cent of the units of the partnership, and in the case of the trust, there are more than 10 beneficiaries and no beneficiary or group of beneficiaries who do not deal with each other at arm’s length holds more than 10 per cent of the units of the trust. [Repealed, 2011, c. 24, s. 84] For the purposes of subsection (7), where a trust governed by a deferred profit sharing plan or revoked plan holds that holds a small business security of a corporation, payments have been made in trust to a trustee under the deferred profit sharing plan or revoked plan for the benefit of beneficiaries thereunder by the corporation or a corporation related thereto, and the small business security is not an equity share described in paragraph (e) of the definition qualified investment in section 204 of the Act, the interest referred to in subparagraphs (a)(i) and (ii) shall not be a qualified investment for the trust referred to in paragraph (a). For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a FHSA, RESP, RRIF, RRSP or TFSA at any time if, at the time the property was acquired by the trust, the property a share of the capital stock of a specified small business corporation, a share of the capital stock of a venture capital corporation described in any of sections 6700 to 6700.2, or a qualifying share in respect of a specified cooperative corporation and the FHSA, RESP, RRIF, RRSP or TFSA; and was not a prohibited investment for the trust. For the purposes of the definition prohibited investment in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a FHSA, RESP, RRIF, RRSP or TFSA solely because of subsection (14) is prescribed property for the trust at any time if, at that time, the property is not described in any of subparagraphs (14)(a)(i) to (iii). For the purposes of paragraphs 204.4(2)(b), (d) and (f) and of subsection 204.6(1) of the Act, a property is a prescribed investment for a corporation or trust, as the case may be, if it is a qualified investment for a plan or fund described in paragraphs 204.4(1)(a) to (d) of the Act in respect of which the corporation or trust is seeking registration or has been registered, as the case may be. [Repealed, SOR/94-471, s. 2] allocation in proportion to patronage has the meaning assigned by subsection 135(4) of the Act; (répartition proportionnelle à l’apport commercial) connected person under a governing plan of a plan trust means a person who is an annuitant, a beneficiary, an employer or a subscriber under, or a holder of, the governing plan and any person who does not deal at arm’s length with that person; (personne rattachée) connected shareholder of a corporation at any time is a person (other than an exempt person in respect of the corporation) who owns, directly or indirectly, at that time, not less than 10% of the issued shares of any class of the capital stock of the corporation or of any other corporation that is related to the corporation and, for the purposes of this definition, paragraphs (a) to (e) of the definition specified shareholder in subsection 248(1) of the Act apply, and an exempt person in respect of a corporation is a person who deals at arm’s length with the corporation where the total of all amounts, each of which is the cost amount of any share of the capital stock of the corporation, or of any other corporation that is related to it, that the person owns or is deemed to own for the purposes of the definition specified shareholder in subsection 248(1) of the Act, is less than $25,000; (actionnaire rattaché) consumer goods or services has the meaning assigned by subsection 135(4) of the Act; (marchandises de consommation ou services) designated shareholder of a corporation at any time means a taxpayer who at that time is, or is related to, a person (other than an exempt person) who owns, directly or indirectly, not less than 10% of the issued shares of any class of the capital stock of the corporation or of any other corporation that is related to the corporation and, for the purposes of this definition, an exempt person in respect of a corporation is a person who deals at arm’s length with the corporation where the total of all amounts, each of which is the cost amount of any share of the capital stock of the corporation, or of any other corporation that is related to it, that the person owns or is deemed to own for the purposes of the definition specified shareholder in subsection 248(1) of the Act, is less than $25,000, is or is related to a member of a partnership that controls the corporation, is or is related to a beneficiary under a trust that controls the corporation, is or is related to an employee of the corporation or a corporation related thereto, where any group of employees of the corporation or of the corporation related thereto, as the case may be, controls the corporation, except where the group of employees includes a person or a related group that controls the corporation, or does not deal at arm’s length with the corporation; (actionnaire désigné) governing plan means a deferred profit sharing plan or a revoked plan, a FHSA, a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA; (régime d’encadrement) plan trust means a trust governed by a governing plan; (fiducie de régime) qualifying share, in respect of a specified cooperative corporation and a governing plan, means a share of the capital or capital stock of the corporation where ownership of the share or a share identical to the share is not a condition of membership in the corporation, or a connected person under the governing plan has not received a payment from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services, and can reasonably be expected not to receive a payment, after the acquisition of the share by the plan trust, from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services; (part admissible) revoked plan has the meaning assigned by section 204 of the Act; (régime dont l’agrément est retiré) small business investment limited partnership has the meaning assigned by subsection 5102(1); (société de personnes en commandite de placement dans des petites entreprises) small business investment trust has the meaning assigned by subsection 5103(1); (fiducie de placement dans des petites entreprises) small business security has the meaning assigned by subsection 5100(2); (titre de petite entreprise) specified cooperative corporation means a cooperative corporation within the meaning assigned by subsection 136(2) of the Act, or a corporation that would be a cooperative corporation within the meaning assigned by subsection 136(2) of the Act if the purpose described in that subsection were the purpose of providing employment to the corporation’s members or customers; (coopérative déterminée) specified small business corporation, at any time, means a corporation (other than a cooperative corporation) that would, at that time or at the end of the last taxation year of the corporation that ended before that time, be a small business corporation if the expression “Canadian-controlled private corporation” in the definition small business corporation in subsection 248(1) of the Act were read as “Canadian corporation (other than a corporation controlled at that time, directly or indirectly in any manner whatever, by one or more non-resident persons)”. (société déterminée exploitant une petite entreprise) For the purposes of the definition connected shareholder in subsection (2) and of subsection (2.2), each share of the capital of a specified cooperative corporation and all other shares of the capital of the corporation that have attributes identical to the attributes of that share shall be deemed to be shares of a class of the capital stock of the corporation. For the purpose of this Part, a person is deemed to be a connected shareholder of a corporation at any time where the person would be a connected shareholder of the corporation at that time if, at that time, the person had each right that the person would be deemed to own at that time for the purposes of the definition specified shareholder in subsection 248(1) of the Act if that right were a share of the capital stock of a corporation; the person owned each share of a class of the capital stock of a corporation that the person had a right at that time under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to acquire; and the cost amount to the person of a share referred to in paragraph (b) were the cost amount to the person of the right to which the share relates. For the purpose of this Part, a person is deemed to be a designated shareholder of a corporation at any time if the person would be a designated shareholder of the corporation at that time if, at that time, paragraphs (2.2)(a) to (c) applied in respect of that person. [Repealed, SOR/2005-264, s. 7] [Repealed, 2013, c. 40, s. 109] [Repealed, SOR/2005-264, s. 9] designated rate, at any time, means 150 per cent of the highest of the prime rates generally quoted at that time by the banks to which Schedule A to the Bank Act applies; (taux déterminé) eligible corporation, at any time, means a particular corporation that is a taxable Canadian corporation all or substantially all of the property of which is at that time used in a qualifying active business carried on by the particular corporation or by a corporation controlled by it, shares of the capital stock of one or more eligible corporations that are related to the particular corporation, or debt obligations issued by those eligible corporations, or any combination of the properties described in subparagraphs (i) and (ii), a specified holding corporation, or a venture capital corporation described in section 6700, a corporation (other than a mutual fund corporation) that is a trader or dealer in securities, a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee, a credit union, an insurance corporation, or a corporation the principal business of which is the lending of money or the purchasing of debt obligations or a combination of them, a corporation controlled by one or more non-resident persons, a venture capital corporation, other than a venture capital corporation described in section 6700, or a corporation that has made an election in respect of a particular taxation year under subparagraph (iv) of the description of B in paragraph 204.82(2.2)(c.1) of the Act, if that time is in the 12-month period that begins on the day that is six months after the day on which the particular taxation year ends; (société admissible) qualifying active business, at any time, means any business carried on primarily in Canada by a corporation, but does not include a business (other than a business of leasing property other than real property) the principal purpose of which is to derive income from property (including interest, dividends, rent and royalties), or a business of deriving gains from the disposition of property (other than property in the inventory of the business), and, for the purposes of this definition, a business carried on primarily in Canada by a corporation, at any time, includes a business carried on by the corporation if, at that time, at least 50 per cent of the full time employees of the corporation and all corporations related thereto employed in respect of the business are employed in Canada, or at least 50 per cent of the salaries and wages paid to employees of the corporation and all corporations related thereto employed in respect of the business are reasonably attributable to services rendered in Canada; (entreprise admissible exploitée activement) qualifying obligation, at any time, means a bond, debenture, mortgage, note or other similar obligation of a corporation described in paragraph 149(1)(o.2) or (o.3) of the Act, if the obligation was issued by the corporation after October 31, 1985, the corporation used all or substantially all of the proceeds of the issue of the obligation within 90 days after the receipt thereof to acquire small business securities, interests of a limited partner in small business investment limited partnerships, interests in small business investment trusts, or any combination of the properties described in subparagraphs (i) to (iii) and, except as provided in subsection 5104(1), the corporation was the first person (other than a broker or dealer in securities) to have acquired the properties and the corporation has owned the properties continuously since they were so acquired, the corporation does not hold, and no group of persons who do not deal with each other at arm’s length and of which it is a member holds, more than 30 per cent of the outstanding shares of any class of voting stock of another corporation, except where all or any part of those shares were acquired in specified circumstances, within the meaning of subsection 5104(2), the recourse of the holder of the obligation against the corporation with respect to the obligation is limited to the properties acquired with the proceeds of the issue of the obligation and any properties substituted therefor, and the properties acquired with the proceeds of the issue of the obligation have not been disposed of, unless the disposition occurred within the 90 day period immediately preceding that time; (titre admissible) specified holding corporation, at any time, means a taxable Canadian corporation where all or substantially all of the collective property of the corporation and of all other corporations controlled by it (each of which other corporations is referred to in this definition as a “controlled corporation”), other than shares in the capital stock of the corporation or of a corporation related to it and debt obligations issued by it or by a corporation related to it, is at that time used in a qualifying active business carried on by the corporation, and all or substantially all of the property of the corporation is at that time property used in a qualifying active business carried on by the corporation or a controlled corporation, shares of the capital stock of one or more controlled corporations or eligible corporations related to the corporation, debt obligations issued by one or more controlled corporations or eligible corporations related to the corporation, or any combination of the properties described in subparagraphs (i), (ii) and (iii), and in a determination of whether property is used in a qualifying active business for the purposes of paragraph (a), where a business is carried on by a controlled corporation, the business shall be deemed to be a business carried on only by the corporation, and the controlled corporation shall be deemed to be the corporation in the application of paragraphs (c) and (d) of the definition qualifying active business, and if a business of the corporation is substantially similar to one or more other businesses of the corporation, all those businesses shall be deemed collectively to be one business of the corporation; (société de portefeuille déterminé) specified property means property described in any of paragraphs (a), (b), (c), (f) and (g) of the definition qualified investment in section 204 of the Act. (bien déterminé) For the purposes of this Part and clause (b)(iii)(A) of the definition eligible investment in subsection 204.8(1) of the Act, a small business security of a person, at any time, is property of that person that is, at that time, a share of the capital stock of an eligible corporation, a debt obligation of an eligible corporation (other than a venture capital corporation described in section 6700) that does not by its terms or any agreement related to the obligation restrict the corporation from incurring other debts and that is secured solely by a floating charge on the assets of the corporation and that by its terms or any agreement related thereto is subordinate to all other debt obligations of the corporation (other than a small business security issued by the corporation, or a debt obligation that is owing by the corporation to a shareholder of the corporation or a person related to a shareholder of the corporation and that is not secured in any manner whatever), or not secured in any manner whatever, other than a debt obligation that where the debt obligation specifies an invariant rate of interest, has an effective annual rate of return that exceeds the designated rate for the day on which the obligation was issued, and in any other case, may have an effective annual rate of return at a particular time that exceeds the designated rate at the particular time, an option or right granted by an eligible corporation in conjunction with the issue of a share or debt obligation that qualifies as a small business security to acquire a share of the capital stock of the corporation, or an option or right granted for no consideration by an eligible corporation to a holder of a share that qualifies as a small business security to acquire a share of the capital stock of the corporation if, immediately after the time of acquisition thereof, the aggregate of the cost amounts to the person of all shares, options, rights and debt obligations of the eligible corporation and all corporations associated therewith held by the person does not exceed $10,000,000, and the total assets (determined in accordance with generally accepted accounting principles, on a consolidated or combined basis, where applicable) of the eligible corporation and all corporations associated with it do not exceed $50,000,000 and includes property of the person that is, at that time, a qualifying obligation, or [Repealed, SOR/2005-264, s. 10] a security (in this subparagraph referred to as the “new security”) described in any of paragraphs (a) to (d), where the new security was issued at a particular time in exchange for, on the conversion of, or in respect of rights pertaining to a security (in this paragraph referred to as the “former security”) that would, if this subsection were read without reference to this subparagraph and paragraph (h), be a small business security of the person immediately before the particular time, and pursuant to an agreement entered into before the particular time and at or before the time that the former security was last acquired by the person, or where the person is a small business investment corporation, small business investment limited partnership or small business investment trust, property of the person that is, at that time, a security (in this paragraph referred to as the “new security”) described in any of paragraphs (a) to (d), where the new security was issued at a particular time not more than 5 years before that time in exchange for, on the conversion of, or in respect of rights pertaining to a security that would, if this subsection were read without reference to this paragraph, be a small business security of the person immediately before the particular time. Where all or part of the property of a person consists of the shares of the capital stock of a venture capital corporation described in section 6700, options or rights granted by the corporation, or debt obligations of the corporation, the aggregate of the cost amounts to the person of all such property shall be deemed for the purposes of paragraph (2)(e) not to exceed $10,000,000; and the total assets (determined in accordance with generally accepted accounting principles, on a consolidated or combined basis, where applicable) of the corporation and all corporations associated with it shall be deemed for the purposes of paragraph (2)(f) not to exceed $50,000,000. in determining the effective annual rate of return in respect of a debt obligation of an eligible corporation, the value of any right to convert the debt obligation or any part thereof into, or to exchange the debt obligation or any part thereof for, shares of the capital stock of the corporation or an option or right to acquire such shares shall not be considered; and a corporation shall be deemed not to be associated with another at any time where the corporation would not be associated with the other if the references to “controlled, directly or indirectly, in any manner whatever” in section 256 of the Act (other than subsection (5.1) thereof) were read as references to “controlled”, and such rights described in subsection 256(1.4) of the Act and shares, as were held at that time by a small business investment corporation, small business investment limited partnership or small business investment trust, were disregarded. Subject to subsection (4), for the purposes of this Part and paragraph 149(1)(o.3) and paragraph (b) of the definition small business property in subsection 206(1) of the Act, a corporation is a small business investment corporation at any time if it is a Canadian corporation incorporated after May 22, 1985 and at all times after it was incorporated and before that time all of the shares, and rights to acquire shares, of the capital stock of the corporation were owned by one or more registered pension plans, one or more trusts all the beneficiaries of which were registered pension plans, one or more related segregated fund trusts (within the meaning assigned by paragraph 138.1(1)(a) of the Act) all the beneficiaries of which were registered pension plans, or one or more persons prescribed by section 4802 for the purposes of clause 149(1)(o.2)(iv)(D) of the Act; its only undertaking was the investing of its funds and its investments consisted solely of interests in small business investment trusts, property (other than a small business security) that is a share of the capital stock of a corporation (other than a share that is issued to the corporation and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), or a put, call, warrant or other right to acquire or sell a share described by clause (A), specified properties, or any combination of properties described in any of subparagraphs (i) to (v) and, except as provided in subsection 5104(1), with respect to properties referred to in any of subparagraphs (i) to (iii), the corporation was the first person (other than a broker or dealer in securities) to have acquired the properties and the corporation has owned the properties continuously since they were so acquired; it has complied with subsection (2); it did not hold, and no group of persons who did not deal with each other at arm’s length and of which it was a member held, more than 30 per cent of the outstanding shares of any class of voting stock of a corporation, except where all or any part of those shares were acquired in specified circumstances within the meaning of subsection 5104(2), or those shares were of any class of voting stock of a venture capital corporation described in section 6700; it has not borrowed money except from its shareholders; and it has not accepted deposits. Every small business investment corporation shall at all times hold properties referred to in subparagraphs (1)(b)(i) to (iii), the aggregate of the cost amounts of which is not less than 75 per cent of the amount, if any, by which the aggregate of all amounts each of which is the amount of consideration for the issue of shares of its capital stock or debt to its shareholders or the amount of a contribution of capital by its shareholders received by it more than 90 days before that time all amounts paid by it before that time to its shareholders as a return of capital or a repayment of debt, and the amount, if any, by which the aggregate of its losses from the disposition of properties disposed of before that time exceeds the aggregate of its gains from the disposition of properties disposed of before that time. For the purposes of subsection (2), where a small business investment corporation disposes of a property referred to in subparagraphs (1)(b)(i) to (iii), it shall be deemed to continue to hold the investment for a period of 90 days following the date of the disposition. For the purposes of paragraph 149(1)(o.3) of the Act, where a small business investment corporation holds an interest in a partnership or trust that qualified as a small business investment limited partnership or small business investment trust, as the case may be, when the interest was acquired and that, but for this subsection, would cease at a subsequent time to so qualify, the interest in the partnership or trust shall be deemed to be an interest in a small business investment limited partnership or small business investment trust, as the case may be, for the 24 months immediately following the subsequent time. For the purpose of this Part, a partnership is a small business investment limited partnership at any particular time if at all times after it was formed and before the particular time it had only one general partner; the share of the general partner, as general partner, in any income of the partnership from any source in any place, for any period, was the same as his share, as general partner, in the income of the partnership from that source in any other place, the income of the partnership from any other source, the loss of the partnership from any source, any capital gain of the partnership, and any capital loss of the partnership for that period, except that the share of the general partner, as general partner, in the income or loss of the partnership from specified properties may differ from his share, as general partner, in the income or loss of the partnership from other sources; the share of the general partner, as general partner, in any income or loss of the partnership for any period was not less than his share, as general partner, in the income or loss of the partnership for any preceding period; the interests of the limited partners were described by reference to units of the partnership that were identical in all respects; no limited partner or group of limited partners who did not deal with each other at arm’s length held more than 30 per cent of the units of the partnership and, for the purposes of this paragraph, a small business investment corporation that has not borrowed money and in which no shareholder or group of shareholders who did not deal with each other at arm’s length held more than 30 per cent of the outstanding shares of any class of voting stock shall be deemed not to be a limited partner, and the general partner shall be deemed not to hold any unit of the partnership as a limited partner; small business securities where, except as provided in subsection 5104(1), the partnership was the first person (other than a broker or dealer in securities) to have acquired the securities and it has owned the securities continuously since they were so acquired, a share of the capital stock of a corporation (other than a share that is issued to the partnership and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), or any combination of properties described in any of subparagraphs (i) to (iii); it has not borrowed money except for the purpose of earning income from its investments and the amount of any such borrowings at any time did not exceed 20 per cent of the partnership capital at that time; and The aggregate of the cost amounts to a small business investment limited partnership of small business securities held by it at any time shall not be less than the amount, if any, by which the aggregate of the aggregate of all amounts received by it more than 12 months before that time and not more than 24 months before that time as consideration for the issue of its units or in respect of its units the aggregate of all amounts paid by it before that time to its members and designated by the partnership as a return of the consideration referred to in subparagraph (i), 50 per cent of the amount, if any, by which the aggregate of all amounts received by it more than 24 months before that time and not more than 36 months before that time as consideration for the issue of its units or in respect of its units the aggregate of all amounts paid by it before that time to its members and designated by the partnership as a return of the consideration referred to in subparagraph (i), and 75 per cent of the amount, if any, by which the aggregate of all amounts received by it more than 36 months before that time as consideration for the issue of its units or in respect of its units exceeds 75 per cent of the amount, if any, by which the aggregate of its losses from the disposition of properties disposed of before that time exceeds the aggregate of its gains from the disposition of properties disposed of before that time. For the purposes of subsection (2), where a small business investment limited partnership disposes of a small business security it shall be deemed to continue to hold the investment for a period of 90 days following the date of the disposition. For the purposes of this Part and subsection 259(5) of the Act, a trust is a small business investment trust at any particular time if at all times after it was created and before the particular time the interests of the beneficiaries under the trust were described by reference to units of the trust that were identical in all respects; and no beneficiary or group of beneficiaries who did not deal with each other at arm’s length held more than 30 per cent of the units of the trust and, for the purposes of this paragraph, a small business investment corporation that has not borrowed money and in which no shareholder or group of shareholders who did not deal with each other at arm’s length held more than 30 per cent of the outstanding shares of any class of voting stock shall be deemed not to be a beneficiary; small business securities where, except as provided in subsection 5104(1), the trust was the first person (other than a broker or dealer in securities) to have acquired the securities and it has owned the securities continuously since they were so acquired, a share of the capital stock of a corporation (other than a share that is issued to the trust and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), or it has not borrowed money except for the purpose of earning income from its investments and the amount of any such borrowings at any time did not exceed 20 per cent of the trust capital at that time; and The aggregate of the cost amounts to a small business investment trust of small business securities held by it at any time shall not be less than the amount, if any, by which the aggregate of the aggregate of all amounts paid by it before that time to its beneficiaries and designated by the trust as a return of the consideration referred to in subparagraph (i), the aggregate of all amounts paid by it before that time to its beneficiaries and designated by the trust as a return of the consideration referred to in subparagraph (i), and the aggregate of all amounts paid by it before that time to its beneficiaries and designated by the trust as a return of the consideration referred to in subparagraph (i) For the purposes of subsection (2), where a small business investment trust disposes of a small business security it shall be deemed to continue to hold the investment for a period of 90 days following the date of disposition. Notwithstanding paragraph (b) of the definition qualifying obligation in subsection 5100(1) and paragraphs 5101(1)(b), 5102(1)(f) and 5103(1)(d), the corporation, partnership or trust, as the case may be, may acquire a small business security that another person (other than a broker or dealer in securities) had previously acquired if the small business security is a share of the capital stock of an eligible corporation having full voting rights under all circumstances; and except where the share was acquired in specified circumstances within the meaning of subsection (2), the share was acquired from an officer or employee of the eligible corporation or a person related to the officer or employee. where a person acquires a share of a corporation as part of a proposal to, or an arrangement with, the corporation’s creditors that has been approved by a court under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act, at a time when all or substantially all of the corporation’s assets were under the control of a receiver, receiver-manager, sequestrator or trustee in bankruptcy, or at a time when, by reason of financial difficulty, the corporation was in default, or could reasonably be expected to default, on a debt obligation held by a person with whom the corporation was dealing at arm’s length, the person shall be deemed, at any time within 36 months after he acquired the share, to have acquired it in specified circumstances; where a person acquires a share of a corporation for the purposes of facilitating the disposition of the entire investment of the person in the corporation, the person shall be deemed, at any time within 12 months after he acquired the share, to have acquired it in specified circumstances; and a qualified trust (within the meaning assigned by subsection 259(3) of the Act) is deemed not to hold any property for any period in respect of which subsection 259(1) of the Act is applicable. Where the purchaser of a property that, but for this subsection, would at the time of its acquisition be a small business security (or, where the purchaser is a partnership, a member thereof) knew at the time of acquisition that the issuer of the security would, within the immediately following 12 months, cease to qualify as an eligible corporation, the property shall be deemed never to have been a small business security of the purchaser. Where a person who holds a share of or an interest in a corporation, partnership or trust that, but for this subsection, would be a small business investment corporation, small business investment limited partnership or small business investment trust knew at the time of issue of the share or interest, as the case may be, or at the time of making any contribution in respect of the share or interest, that a substantial portion of the consideration for the issue of the share or interest, or the contribution in respect of the share or interest would not be invested by the corporation, partnership or trust, as the case may be, directly or indirectly in small business securities, and all or substantially all of would be returned to the purchaser within the immediately following 24 months, the corporation, partnership or trust shall be deemed to have ceased at that time to be a small business investment corporation, small business investment limited partnership or small business investment trust. Where, but for this subsection, a property that qualified as a small business security when it was acquired would cease at a subsequent time to so qualify, the property shall be deemed to be a small business security for the 24 months immediately following the subsequent time. For the purposes of this Part, a partnership shall be deemed to be a person. Subject to section 5201, for the purposes of subsection 125.1(3) of the Act, “Canadian manufacturing and processing profits” of a corporation for a taxation year are hereby prescribed to be that proportion of the corporation’s adjusted business income for the year that the aggregate of its cost of manufacturing and processing capital for the year and its cost of manufacturing and processing labour for the year, the aggregate of its cost of capital for the year and its cost of labour for the year. For the purposes of subsection 125.1(3) of the Act, “Canadian manufacturing and processing profits” of a corporation for a taxation year are hereby prescribed to be equal to the corporation’s adjusted business income for the year where the activities of the corporation during the year were primarily manufacturing or processing in Canada of goods for sale or lease; the aggregate of all amounts each of which is the income of the corporation for the year from an active business minus the aggregate of all amounts each of which is the loss of the corporation for the year from an active business, and if the corporation is associated in the year with a Canadian corporation, the aggregate of all amounts each of which is the income of the latter corporation from an active business for its taxation year coinciding with or ending in the year, did not exceed $200,000; the corporation was not engaged in any of the activities listed in paragraphs (a) to (k) of the definition manufacturing or processing in subsection 125.1(3) of the Act at any time during the year; the corporation was not engaged in the processing of ore (other than iron ore or tar sands) from a mineral resource located outside Canada to any stage that is not beyond the prime metal stage or its equivalent; the corporation was not engaged in the processing of iron ore from a mineral resource located outside Canada to any stage that is not beyond the pellet stage or its equivalent; the corporation was not engaged in the processing of tar sands located outside Canada to any stage that is not beyond the crude oil stage or its equivalent; and the corporation did not carry on any active business outside Canada at any time during the year. In this Part, except as otherwise provided in section 5203 or 5204, adjusted business income of a corporation for a taxation year means the amount, if any, by which the aggregate of all amounts each of which is the income of the corporation for the year from an active business carried on in Canada the aggregate of all amounts each of which is the loss of the corporation for the year from an active business carried on in Canada; (revenu rajusté tiré d’une entreprise) Canadian resource profits has the meaning that would be assigned to the expression resource profits by section 1204 if section 1204 were read without reference to subparagraph 1204(1)(b)(iv), and the definition resource activity in subsection 1206(1) were read without reference to paragraph (d) of that definition; (bénéfices relatifs à des ressources au Canada) cost of capital of a corporation for a taxation year means an amount equal to the aggregate of 10 per cent of the aggregate of all amounts each of which is the gross cost to the corporation of a property referred to in paragraph 1100(1)(e), (f), (g) or (h), paragraph 1102(1)(d) or (g) or Schedule II that was owned by the corporation at the end of the year, and was used by the corporation at any time during the year, and the aggregate of all amounts each of which is the rental cost incurred by the corporation during the year for the use of any property a portion of the gross cost of which would be included by virtue of paragraph (a) if the property were owned by the corporation at the end of the year, but for the purposes of this definition, the gross cost of a property or rental cost for the use of any property does not include that portion of those costs that reflects the extent to which the property was used by the corporation during the year in an active business carried on outside Canada, or to earn Canadian investment income or foreign investment income as defined in subsection 129(4) of the Act;

(coût en capital) cost of labour of a corporation for a taxation year means an amount equal to the aggregate of the salaries and wages paid or payable during the year to all employees of the corporation for services performed during the year, and all other amounts each of which is an amount paid or payable during the year for the performance during the year, by any person other than an employee of the corporation, of functions relating to the management or administration of the corporation, scientific research and experimental development, or a service or function that would normally be performed by an employee of the corporation, but for the purposes of this definition, the salaries and wages referred to in paragraph (a) or other amounts referred to in paragraph (b) do not include that portion of those amounts that was included in the gross cost to the corporation of a property (other than a property that was manufactured by the corporation and leased during the year by the corporation to another person) that was included in computing the cost of capital of the corporation for the year, or was related to an active business carried on outside Canada by the corporation; (coût en main-d’oeuvre) cost of manufacturing and processing capital of a corporation for a taxation year means 100/85 of that portion of the cost of capital of the corporation for that year that reflects the extent to which each property included in the calculation thereof was used directly in qualified activities of the corporation during the year, but the amount so calculated shall not exceed the cost of capital of the corporation for the year; (coût en capital de fabrication et de transformation) cost of manufacturing and processing labour of a corporation for a taxation year means 100/75 of that portion of the cost of labour of the corporation for that year that reflects the extent to which the salaries and wages included in the calculation thereof were paid or payable to persons for the portion of their time that they were directly engaged in qualified activities of the corporation during the year, and the other amounts included in the calculation thereof were paid or payable to persons for the performance of functions that would be directly related to qualified activities of the corporation during the year if those persons were employees of the corporation, but the amount so calculated shall not exceed the cost of labour of the corporation for the year; (coût en main-d’oeuvre de fabrication et de transformation) gross cost to a particular person of a property at any time means, in respect of property that has become available for use by the particular person for the purposes of subsection 13(26) of the Act, the capital cost to the particular person of the property computed without reference to subsections 13(7.1), (7.4) and (10), sections 21 and 80 and paragraph 111(4)(e) of the Act and, in respect of any other property, nil, and where the particular person acquired the property in the course of a reorganization in respect of which, if a dividend were received by the particular person in the course of the reorganization, subsection 55(2) of the Act would not apply to the dividend by reason of the application of paragraph 55(3)(b) of the Act, or from another person with whom the particular person was not dealing at arm’s length (otherwise than by reason of a right referred to in paragraph 251(5)(b) of the Act) immediately after the property was acquired, the capital cost to the particular person of the property for the purposes of this definition shall be computed as if the property had been acquired at a capital cost equal to the gross cost of the property to the person from whom the property was acquired by the particular person; (coût brut) qualified activities means any of the following activities, when they are performed in Canada in connection with manufacturing or processing (not including the activities listed in paragraphs (a) to (k) of the definition manufacturing or processing in subsection 125.1(3) of the Act) in Canada of goods for sale or lease: engineering design of products and production facilities, receiving and storing of raw materials, producing, assembling and handling of goods in process, inspecting and packaging of finished goods, line supervision, production support activities including security, cleaning, heating and factory maintenance, quality and production control, repair of production facilities, and pollution control, all other activities that are performed in Canada directly in connection with manufacturing or processing (not including the activities listed in paragraphs (a) to (k) of the definition manufacturing or processing in subsection 125.1(3) of the Act) in Canada of goods for sale or lease, and scientific research and experimental development, as defined in section 2900, carried on in Canada, but does not include any of storing, shipping, selling and leasing of finished goods, purchasing of raw materials, administration, including clerical and personnel activities, purchase and resale operations, data processing, and providing facilities for employees, including cafeterias, clinics and recreational facilities; (activités admissibles) qualified zero-emission technology manufacturing activities means qualified activities that are performed in connection with the manufacturing or processing of solar energy conversion equipment, including solar thermal collectors, photovoltaic solar arrays and custom supporting structures or frames, but excluding passive solar heating equipment, wind energy conversion equipment, including wind turbine towers, nacelles and rotor blades, water energy conversion equipment, including hydroelectric, water current, tidal and wave energy conversion equipment, geothermal energy equipment, equipment for a ground source heat pump system, air-source heat pump equipment designed for space or water heating, electrical energy storage equipment used for storage of renewable energy or for providing grid-scale storage or other ancillary services, including battery, compressed air and flywheel storage systems, equipment used to charge, or to dispense hydrogen to, property included in clause (J), equipment used for the production of hydrogen by electrolysis of water, equipment that is a component of property included in clauses (A) to (H) or (L) to (O), if such equipment is purpose-built or designed exclusively to form an integral part of that property, property that would be a zero-emission vehicle (as defined in subsection 248(1) of the Act if that definition were read without reference to its paragraphs (b) to (d)), or is described in subparagraph (a)(i) of Class 56 of Schedule II, integral components of the powertrain of property included in clause (J), including batteries or fuel cells, nuclear energy equipment, heavy water used for nuclear energy generation, nuclear fuels used for nuclear energy generation, and nuclear fuel rods, and not the manufacturing or processing of general purpose components or equipment which components or equipment are suitable for integration into property other than property described in subparagraph (i); qualified activities that are performed in connection with production in Canada of hydrogen by electrolysis of water, gaseous biofuel (as defined in subsection 1104(13)), liquid biofuel (as defined in subsection 1104(13)), and solid biofuel (as defined in subsection 1104(13)); and the conversion of a vehicle, performed in Canada, into a property described in clause (a)(i)(J); (activités admissibles de fabrication de technologies à zéro émission) rental cost of a property means the rents incurred for the use of that property; (coût de location) resource profits has the meaning assigned by section 1204; (bénéfices relatifs à des ressources) salaries and wages means salaries, wages and commissions, but does not include any other type of remuneration, any superannuation or pension benefits, any retiring allowances or any amount referred to in section 6 or 7 of the Act; (traitements et salaires) specified percentage for a taxation year means where the year commences after 1998, 100%, and in any other case, the total of that proportion of 10% that the number of days in the year that are in 1990 is of the number of days in the year, that proportion of 20% that the number of days in the year that are in 1991 is of the number of days in the year, that proportion of 30% that the number of days in the year that are in 1992 is of the number of days in the year, that proportion of 50% that the number of days in the year that are in 1993 is of the number of days in the year, that proportion of 64.3% that the number of days in the year that are in 1994 is of the number of days in the year, that proportion of 71.4% that the number of days in the year that are in 1995 is of the number of days in the year, that proportion of 78.6% that the number of days in the year that are in 1996 is of the number of days in the year, that proportion of 85.7% that the number of days in the year that are in 1997 is of the number of days in the year, that proportion of 92.9% that the number of days in the year that are in 1998 is of the number of days in the year, and that proportion of 100% that the number of days in the year that are in 1999 is of the number of days in the year; (pourcentage désigné) ZETM cost of capital, of a corporation for a taxation year, means the portion of the cost of capital of the corporation for the year that reflects the extent to which each property included in the calculation of the cost of capital was used directly in qualified zero-emission technology manufacturing activities of the corporation during the year; (coût en capital de FTZE) ZETM cost of labour, of a corporation for a taxation year, means the portion of the cost of labour of the corporation for that year that reflects the extent to which the salaries and wages included in the calculation of the cost of labour were paid or payable to persons for the portion of their time that they were directly engaged in qualified zero-emission technology manufacturing activities of the corporation during the year, and the other amounts included in the calculation of the cost of labour were paid or payable to persons for the performance of functions that would be directly related to qualified zero-emission technology manufacturing activities of the corporation during the year if those persons were employees of the corporation. (coût en main-d’œuvre de FTZE) Where a corporation has resource activities for a taxation year the following rules apply, except as otherwise provided in section 5204: adjusted business income of the corporation for the year means the amount, if any, by which the amount otherwise determined under section 5202 to be the adjusted business income of the corporation for the year the amount, if any, by which the corporation’s net resource income for the year exceeds the corporation’s net resource adjustment for the year, and all amounts each of which is an amount in respect of refund interest included in computing the taxpayer’s income for the year, to the extent that the amount is included in the amount determined to be the adjusted business income, within the meaning of section 5202, of the corporation for the year; (revenue rajusté d’une entreprise) [Repealed, SOR/2007-19, s. 7] cost of capital of the corporation for the year means the amount, if any, by which the amount otherwise determined under section 5202 to be the cost of capital of the corporation for the year that portion of the gross cost of property or rental cost for the use of property included in computing the cost of capital of the corporation for the year that reflects the extent to which the property was used by the corporation during the year, in activities engaged in for the purpose of earning Canadian resource profits of the corporation, or in activities referred to in subparagraph 66(15)(b)(i), (ii) or (v), subparagraph 66(15)(e)(i) or (ii), subparagraph 66.1(6)(a)(i), (ii), (iii) or (v) or subparagraph 66.2(5)(a)(i), (ii) or (v) of the Act; (coût en capital) cost of labour of the corporation for the year means the amount, if any, by which the amount otherwise determined under section 5202 to be the cost of labour of the corporation for the year that portion of the salaries and wages and other amounts included in computing the cost of labour of the corporation for the year that, was related to the activities engaged in for the purpose of earning Canadian resource profits of the corporation, or was included in the Canadian exploration and development expenses, foreign exploration and development expenses, Canadian exploration expense or Canadian development expense, within the meanings assigned by paragraphs 66(15)(b) and (e), 66.1(6)(a) and 66.2(5)(a) of the Act respectively, of the corporation. (coût en main-d’oeuvre) For the purposes of subsection (1), a corporation has “resource activities” for a taxation year if in computing its income for the year, an amount is deductible pursuant to any of sections 65 to 66.2 of the Act; the corporation was at any time during the year engaged in activities for the purpose of earning resource profits of the corporation; or in computing the corporation’s income for the year, an amount was included pursuant to section 59 of the Act. In subsection (1), net resource income of a corporation for a taxation year means the amount, if any, by which the total of the resource profits of the corporation for the year, and the total of amounts included in computing the income of the corporation for the year, from an active business carried on in Canada, pursuant to section 59 of the Act (other than amounts that may reasonably be regarded as having been included in computing the resource profits of the corporation for the year), the total of amounts deducted in computing the income of the corporation for the year under section 64 of the Act, as that section applies with respect to dispositions occurring before November 13, 1981 and to dispositions occurring after November 12, 1981 pursuant to the terms in existence on that date of an offer or agreement in writing made or entered into on or before that date, except those amounts that may reasonably be regarded as having been deducted in computing the resource profits of the corporation for the year, the total of amounts deducted in computing the income of the corporation for the year under section 65 of the Act (other than amounts that may reasonably be regarded as having been deducted in computing the resource profits of the corporation for the year), and the specified percentage for the year of the amount, if any, by which the corporation’s resource profits for the year the corporation’s Canadian resource profits for the year, and the earned depletion base (within the meaning assigned by subsection 1205(1)) of the corporation at the beginning of its immediately following taxation year. In subsection (1), the net resource adjustment of a corporation for a taxation year is the amount determined by the formula is the amount of Canadian resource profits of the corporation for the year, and is the amount that would be the Canadian resource profits of the corporation for the year if (a)subsections 1204(1) and (1.1) provided for the computation of negative amounts where the amounts subtracted in computing gross resource profits (as defined by subsection 1204(1)) and resource profits “ exceed the amounts added in computing those amounts, and subsections 1204(1) and (1.1) provided for the computation of negative amounts where the amounts subtracted in computing gross resource profits (as defined by subsection 1204(1)) and resource profits “ exceed the amounts added in computing those amounts, and (b)paragraph 1206(3)(a) applied so that a negative amount of resource profits of a partnership for a fiscal period that ended in the year were, to the extent of the corporation’s share thereof, deducted in computing the corporation’s resource profits for the year. paragraph 1206(3)(a) applied so that a negative amount of resource profits of a partnership for a fiscal period that ended in the year were, to the extent of the corporation’s share thereof, deducted in computing the corporation’s resource profits for the year. For the purpose of subsection (1), refund interest means an amount that is received, or that becomes receivable, after March 6, 1996 from an authority (including a government or municipality) situated in Canada as a consequence of the overpayment of a tax that was not deductible under the Act in computing any taxpayer’s income and that was imposed by an Act of Canada or a province or a bylaw of a municipality. If a corporation is a member of a partnership at any time in a taxation year of the corporation, the following definitions apply: cost of capital of the corporation for the year means an amount equal to the aggregate of was used by the corporation at any time during the year, the aggregate of all amounts each of which is the rental cost incurred by the corporation during the year for the use of any property a portion of the gross cost of which would be included by virtue of paragraph (a) if the property were owned by the corporation at the end of the year, and that proportion of the aggregate of the amounts that would be determined under paragraphs (a) and (b) in respect of the partnership for its fiscal period coinciding with or ending in the taxation year of the corporation if the references in those paragraphs to “the corporation” were read as references to “the partnership” and the references in those paragraphs to “the year” were read as references to “the fiscal period of the partnership coinciding with or ending in the year”, that the corporation’s share of the income or loss of the partnership for that fiscal period the income or loss of the partnership for that fiscal period, as the case may be, but for the purposes of this definition, the gross cost of a property or rental cost for the use of any property does not include that portion of those costs that reflects the extent to which the property was used by the corporation during the year or by the partnership during its fiscal period coinciding with or ending in the year in an active business carried on outside Canada, to earn Canadian investment income or foreign investment income as defined in subsection 129(4) of the Act on the assumption that subsection 129(4) of the Act applied to a partnership as well as to a corporation, in activities engaged in for the purpose of earning Canadian resource profits of the corporation or the partnership, as the case may be, or in activities referred to in subparagraph 66(15)(b)(i), (ii) or (v), subparagraph 66(15)(e)(i) or (ii), subparagraph 66.1(6)(a)(i), (ii), (iii) or (v) or subparagraph 66.2(5)(a)(i), (ii) or (v) of the Act; (coût en capital) cost of labour of the corporation for the year means an amount equal to the aggregate of the salaries and wages paid or payable during the year to all employees of the corporation for services performed during the year, scientific research as defined in section 2900, or a service or function that would normally be performed by an employee of the corporation, and that proportion of the aggregate of the amounts that would be determined under paragraphs (a) and (b) in respect of the partnership for its fiscal period coinciding with or ending in the taxation year of the corporation if the references in those paragraphs to “the corporation” were read as references to “the partnership” and the references in those paragraphs to “the year” were read as references to the “fiscal period of the partnership coinciding with or ending in the year”, that but for the purposes of this definition, the salaries and wages referred to in paragraph (a) or other amounts referred to in paragraph (b), of the corporation or the partnership, as the case may be, do not include that portion of those amounts that was included in the gross cost to the corporation or partnership of a property (other than a property that was manufactured by the corporation or partnership and leased during the year by the corporation or the partnership to another person) that was included in computing the cost of capital of the corporation for the year, was related to an active business carried on outside Canada by the corporation or the partnership, was related to the activities engaged in for the purpose of earning Canadian resource profits of the corporation or the partnership, as the case may be, or was included in the Canadian exploration and development expenses, foreign exploration and development expenses, Canadian exploration expense or Canadian development expense, within the meanings assigned by paragraphs 66(15)(b) and (e), 66.1(6)(a) and 66.2(5)(a) of the Act respectively, of the corporation; (coût en main-d’oeuvre) cost of manufacturing and processing capital of the corporation for the year means 100/85 of that portion of the cost of capital of the corporation for that year that reflects the extent to which each property included in the calculation thereof was used directly in qualified activities of the corporation during the year, or of the partnership during its fiscal period coinciding with or ending in the year, as the case may be, but the amount so calculated shall not exceed the cost of capital of the corporation for the year; (coût en capital de fabrication et de transformation) cost of manufacturing and processing labour of the corporation for the year means 100/75 of that portion of the cost of labour of the corporation for that year that reflects the extent to which the salaries and wages included in the calculation thereof were paid or payable to persons for the portion of their time that they were directly engaged in qualified activities of the partnership during its fiscal period coinciding with or ending in the year, and the other amounts included in the calculation thereof were paid or payable to persons for the performance of functions that would be directly related to qualified activities of the partnership during its fiscal period coinciding with or ending in the year, if those persons were employees of the corporation or the partnership, as the case may be, gross cost of a property at any time means in respect of a property that has become available for use by the partnership for the purposes of subsection 13(26) of the Act, the capital cost to the partnership of the property computed without reference to subsections 13(7.1), (7.4) and (10) and sections 21 and 80 of the Act, and in respect of any other property of the partnership, nil, and, for the purposes of paragraph (a), if the partnership acquired the property from a person who was a majority-interest partner of the partnership immediately after the property was acquired, the capital cost to the partnership of the property is to be computed as if the property had been acquired at a capital cost equal to the gross cost to the person of the property, except that if the property was partnership property on December 31, 1971, its gross cost is its capital cost to the partnership as determined under subsection 20(3) or (5) of the Income Tax Application Rules; (coût brut) ZETM cost of capital, of the corporation for the year, means the portion of the cost of capital of the corporation for that year that reflects the extent to which each property included in the calculation of the cost of capital was used directly in qualified zero-emission technology manufacturing activities of the partnership during its fiscal period coinciding with or ending in the year, as the case may be; (coût en capital de FTZE) ZETM cost of labour, of the corporation for the year, means the portion of the cost of labour of the corporation for that year that reflects the extent to which the salaries and wages included in the calculation of the cost of labour were paid or payable to persons for the portion of their time that they were directly engaged in qualified zero-emission technology manufacturing activities the other amounts included in the calculation of the cost of labour were paid or payable to persons for the performance of functions that would be directly related to qualified zero-emission technology manufacturing activities of the corporation during the year, or of the partnership during its fiscal period coinciding with or ending in the year, if those persons were employees of the corporation or the partnership, as the case may be. (coût en main-d’œuvre de FTZE) For the purposes of subsections 155(2), 156(3) and 161(9) of the Act, the instalment base of an individual for a taxation year is the amount by which the individual’s tax payable under Part I of the Act for the year, determined before taking into consideration the specified future tax consequences for the year, the amount deemed by subsection 120(2) of the Act to have been paid on account of the individual’s tax under Part I of the Act for the year, determined before taking into consideration the specified future tax consequences for the year. Subject to subsections (6) and (8), for the purposes of subsections 157(4) and 161(9) of the Act, the first instalment base of a corporation for a particular taxation year means the product obtained when the aggregate of the tax payable under Part I of the Act by the corporation for its taxation year preceding the particular year, and the total of the taxes payable by the corporation under Parts VI, VI.1 and XIII.1 of the Act for its taxation year preceding the particular year is multiplied by the ratio that 365 is of the number of days in that preceding year. Subject to subsections (6) and (8), for the purposes of subsections 157(4) and 161(9) of the Act, the second instalment base of a corporation for a particular taxation year means the amount of the first instalment base of the corporation for the taxation year immediately preceding the particular year. For the purposes of subsection (1), where the number of days in the taxation year of a corporation immediately preceding the particular taxation year referred to therein is less than 183, the amount determined for the corporation under that subsection shall be the greater of the amount otherwise determined for it under subsection (1); and the amount that would be determined for it under subsection (1) if the reference in that subsection to “its taxation year preceding the particular year” were read as a reference to “its last taxation year, preceding the particular year, in which the number of days exceeds 182”. Notwithstanding subsections (1) and (2), for the purposes of subsections 157(4) and 161(9) of the Act, where a particular taxation year of a new corporation that was formed as a result of an amalgamation (within the meaning assigned by section 87 of the Act) is its first taxation year, its first instalment base for the particular year means the total of all amounts each of which is equal to the product obtained when the total of the tax payable under Part I of the Act, and the total of the taxes payable under Parts VI, VI.1 and XIII.1 of the Act by a predecessor corporation (as defined in section 87 of the Act) for its last taxation year is multiplied by the ratio that 365 is to the number of days in that year, and its second instalment base for the particular year means the aggregate of all amounts each of which is an amount equal to the amount of the first instalment base of a predecessor corporation for its last taxation year; and where a particular taxation year of a new corporation referred to in paragraph (a) is its second taxation year, its first instalment base for the particular year means where the number of days in its first taxation year is greater than 182, the amount that would, but for this subsection, be determined under subsection (1) for the year, and in any other case, the greater of the amount that would, but for this subsection, be determined under subsection (1) for the year and its first instalment base for its first taxation year, and its second instalment base for the particular year means the amount of the first instalment base of the new corporation for its first taxation year. For the purposes of subsection (4), where the number of days in the last taxation year of a predecessor corporation is less than 183, the amount determined under subparagraph (4)(a)(i) in respect of the predecessor corporation shall be the greater of the amount otherwise determined under subparagraph (4)(a)(i) in respect of the predecessor corporation; and the amount of the first instalment base of the predecessor corporation for its last taxation year. Subject to subsection (7), where a subsidiary within the meaning of subsection 88(1) of the Act is winding up, and, at a particular time in the course of the winding up, all or substantially all of the property of the subsidiary has been distributed to a parent within the meaning of subsection 88(1) of the Act, the following rules apply: there shall be added to the amount of the parent’s first instalment base for its taxation year that includes the particular time the amount of the subsidiary’s first instalment base for its taxation year that includes the particular time; there shall be added to the amount of the parent’s second instalment base for its taxation year that includes the particular time the amount of the subsidiary’s second instalment base for its taxation year that includes the particular time; there shall be added to the amount of the parent’s first instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount that is the proportion of the subsidiary’s first instalment base for its taxation year referred to in paragraph (a) that the number of complete months that ended at or before the particular time in the taxation year of the parent that includes the particular time 12; and there shall be added to the amount of the parent’s second instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount of the subsidiary’s first instalment base for its taxation year that includes the particular time. The amount of an instalment of tax for the taxation year referred to in paragraphs (6)(a) and (b) that a parent is deemed under subsection 161(4.1) of the Act to have been liable to pay before the particular time referred to in subsection (6) shall be determined as if subsection (6) were not applicable in respect of a distribution of property described in that subsection occurring after the day on or before which the instalment was required to be paid. Subject to subsection (9), if at a particular time a corporation (in this subsection referred as the “transferor”) has disposed of all or substantially all of its property to another corporation with which it was not dealing at arm’s length (in this subsection and subsection (9) referred to as the “transferee”) and subsection 85(1), (2) or 142.7(3) of the Act applied in respect of the disposition of any of the property, the following rules apply: there shall be added to the amount of the transferee’s first instalment base for its taxation year that includes the particular time the amount of the transferor’s first instalment base for its taxation year that includes the particular time; there shall be added to the amount of the transferee’s second instalment base for its taxation year that includes the particular time the amount of the transferor’s second instalment base for its taxation year that includes the particular time; there shall be added to the amount of the transferee’s first instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount that is the proportion of the transferor’s first instalment base for its taxation year referred to in paragraph (a) that the number of complete months that ended at or before the particular time in the taxation year of the transferee that includes the particular time there shall be added to the amount of the transferee’s second instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount of the transferor’s first instalment base for its taxation year that includes the particular time. The amount of an instalment of tax for the taxation year referred to in paragraphs (8)(a) and (b) that a transferee is deemed under subsection 161(4.1) of the Act to have been liable to pay before the particular time referred to in subsection (8) shall be determined as if subsection (8) were not applicable in respect of a disposition of property described in that subsection occurring after the day on or before which the instalment was required to be paid. For the purpose of this section, tax payable under Part I, VI or XIII.1 of the Act by a corporation for a taxation year means the corporation’s tax payable for the year under the relevant Part, determined before taking into consideration the specified future tax consequences for the year. [Repealed, SOR/2011-188, s. 21] For the purposes of paragraphs 12(1)(u), 56(1)(s) and 212(1)(s) of the Act, the Canadian Home Insulation Program, as authorized and described in Vote 11a of Appropriation Act No. 3, 1977-78, as amended, Energy, Mines and Resources Vote 35, Main Estimates, 1981-82 as authorized by Appropriation Act No. 1, 1981-82, as amended, or the Canadian Home Insulation Program Act, is hereby prescribed to be a program of the Government of Canada relating to home insulation. For the purposes of paragraphs 12(1)(u), 56(1)(s) and 212(1)(s) of the Act, the Canada Oil Substitution Program, as authorized and described in paragraph (a) or (b) of Energy, Mines and Resources Vote 45, Main Estimates, 1981-82 as authorized by Appropriation Act No. 1, 1981-82, as amended, or the Oil Substitution and Conservation Act is hereby prescribed to be a program of the Government of Canada relating to energy conversion. For the purposes of subparagraph 56(1)(a)(vi) and paragraph 153(1)(m) of the Act, the following benefits are prescribed: benefits under the Labour Adjustment Benefits Act; benefits under programs to provide income assistance payments, established pursuant to agreements under section 5 of the Department of Labour Act; and benefits under programs to provide income assistance payments, administered pursuant to agreements under section 5 of the Department of Fisheries and Oceans Act. For the purposes of the definition NISA Fund No. 2 in subsection 248(1) of the Act, a prescribed fund is Fonds 2 as defined under the Agri-Québec program established by La Financière agricole du Québec. For the purposes of the definition net income stabilization account in subsection 248(1) of the Act, a prescribed account is an account created under the Agri-Québec program established by La Financière agricole du Québec. For the purpose of section 86.1 of the Act, the following distributions of shares are prescribed: the distribution by Active Biotech AB, on May 10, 1999, of shares of Wilhelm Sonesson AB; the distribution by Orckit Communications Ltd., on June 30, 2000, of shares of Tioga Technologies Ltd; the distribution by Electrolux AB, on June 12, 2006, of shares of Husqvarna AB; the distribution by Fiat S.p.A., on January 1, 2011 to its common shareholders, of common shares of Fiat Industrial S.p.A; the distribution by Foster’s Group Limited, on May 9, 2011 to its common shareholders, of common shares of Treasury Wine Estates Limited; the distribution by Telecom Corporation of New Zealand Limited, on November 30, 2011 to its common shareholders, of common shares of Chorus Limited; the distribution by Tyco International Ltd. of Switzerland, on September 28, 2012 to its common shareholders, of common shares of Pentair Ltd. of Switzerland; the distribution by Siemens AG, on July 5, 2013 to its common shareholders, of common shares of OSRAM Licht AG; the distribution by Brambles Limited, on December 18, 2013 to its common shareholders, of common shares of Recall Holdings Limited; the distribution by BHP Billiton Limited, on May 24, 2015 to its common shareholders, of common shares of South32 Limited; the distribution by Svenska Cellulosa Aktiebolaget SCA (publ), on June 15, 2017 to its common shareholders, of common shares of Essity Aktiebolag (publ); the distribution by Modern Times Group MTG AB, on March 28, 2019 to its common shareholders, of common shares of Nordic Entertainment Group AB; and the distribution by Novartis AG, on April 9, 2019 to its common shareholders, of common shares of Alcon Inc. For the purposes of paragraph 118.2(2)(m) of the Act, a device or equipment is prescribed if it is a wig made to order for an individual who has suffered abnormal hair loss owing to disease, medical treatment or accident; needle or syringe designed to be used for the purpose of giving an injection; device or equipment, including a replacement part, designed exclusively for use by an individual suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation, but not including an air conditioner, humidifier, dehumidifier, heat pump or heat or air exchanger; air or water filter or purifier for use by an individual who is suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation to cope with or overcome that ailment or disregulation; electric or sealed combustion furnace acquired to replace a furnace that is neither an electric furnace nor a sealed combustion furnace, where the replacement is necessary solely because of a severe chronic respiratory ailment or a severe chronic immune system disregulation; air conditioner acquired for use by an individual to cope with the individual’s severe chronic ailment, disease or disorder, to the extent of the lesser of $1,000 and 50% of the amount paid for the air conditioner; device or equipment designed to pace or monitor the heart of an individual who suffers from heart disease; orthopaedic shoe or boot or an insert for a shoe or boot made to order for an individual in accordance with a prescription to overcome a physical disability of the individual; power-operated guided chair installation, for an individual, that is designed to be used solely in a stairway; mechanical device or equipment designed to be used to assist an individual to enter or leave a bathtub or shower or to get on or off a toilet; hospital bed including such attachments thereto as may have been included in a prescription therefor; device that is exclusively designed to assist an individual in walking where the individual has a mobility impairment; external breast prosthesis that is required because of a mastectomy; teletypewriter or similar device, including a telephone ringing indicator, that enables a deaf or mute individual to make and receive telephone calls; optical scanner or similar device designed to be used by a blind individual to enable him to read print; device or software designed to be used by a blind individual, or an individual with a severe learning disability, to enable the individual to read print; power-operated lift or transportation equipment designed exclusively for use by, or for, a disabled individual to allow the individual access to different areas of a building or to assist the individual to gain access to a vehicle or to place the individual’s wheelchair in or on a vehicle; device designed exclusively to enable an individual with a mobility impairment to operate a vehicle; device or equipment, including a synthetic speech system, braille printer and large print-on-screen device, designed exclusively to be used by a blind individual in the operation of a computer; electronic speech synthesizer that enables a mute individual to communicate by use of a portable keyboard; device to decode special television signals to permit the script of a program to be visually displayed; a visual or vibratory signalling device, including a visual fire alarm indicator, for an individual with a hearing impairment; device designed to be attached to infants diagnosed as being prone to sudden infant death syndrome in order to sound an alarm if the infant ceases to breathe; infusion pump, including disposable peripherals, used in the treatment of diabetes or a device designed to enable a diabetic to measure the diabetic’s blood sugar level; blood coagulation monitor, including disposable peripherals, for use by an individual who requires anti-coagulation therapy; electronic or computerized environmental control system designed exclusively for the use of an individual with a severe and prolonged mobility restriction; extremity pump or elastic support hose designed exclusively to relieve swelling caused by chronic lymphedema; inductive coupling osteogenesis stimulator for treating non-union of fractures or aiding in bone fusion; talking textbook for use by an individual with a perceptual disability in connection with the individual’s enrolment at an educational institution in Canada, or a designated educational institution; Bliss symbol board, or similar device, designed to be used to help an individual who has a speech impairment communicate by selecting the symbols or spelling out words; Braille note-taker designed to be used by a blind individual to allow them to take notes (that can be read back to them or printed or displayed in Braille) with the help of a keyboard; page turner, designed to be used by an individual who has a severe and prolonged impairment that markedly restricts their ability to use their arms or hands to turn the pages of a book or other bound document; altered auditory feedback device designed to be used by an individual who has a speech impairment; electrotherapy device designed to be used by an individual with a medical condition or by an individual who has a severe mobility impairment; standing device designed to be used by an individual who has a severe mobility impairment to undertake standing therapy; or pressure pulse therapy device designed to be used by an individual who has a balance disorder; navigation device for low vision for an individual who has a vision impairment. For the purpose of subparagraph 118.2(2)(n)(ii) of the Act, a drug, medicament or other preparation or substance is prescribed if it is manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function; is prescribed for a patient by a medical practitioner; and may, in the jurisdiction in which it is acquired, be lawfully acquired for use by the patient only with the intervention of a medical practitioner. For the purposes of paragraph 230(4)(a) of the Act, the required retention periods for records and books of account of a person are prescribed as follows: any record of the minutes of meetings of the directors of a corporation, any record of the minutes of meetings of the shareholders of a corporation, any record of a corporation containing details with respect to the ownership of the shares of the capital stock of the corporation and any transfers thereof, the general ledger or other book of final entry containing the summaries of the year-to-year transactions of a corporation, and any special contracts or agreements necessary to an understanding of the entries in the general ledger or other book of final entry referred to in subparagraph (iv), the period ending on the day that is two years after the day that the corporation is dissolved; in respect of all records and books of account that are not described in paragraph (a) of a corporation that is dissolved and in respect of the vouchers and accounts necessary to verify the information in such records and books of account, the period ending on the day that is two years after the day that the corporation is dissolved; the general ledger or other book of final entry containing the summaries of the year-to-year transactions of a business of a person (other than a corporation), and any special contracts or agreements necessary to an understanding of the entries in the general ledger or other book of final entry referred to in subparagraph (i), the period ending on the day that is six years after the last day of the taxation year of the person in which the business ceased; any record of the minutes of meetings of the executive of a registered charity, registered Canadian amateur athletic association or registered journalism organization, any record of the minutes of meetings of the members of a registered charity, registered Canadian amateur athletic association or registered journalism organization, and all documents and by-laws governing a registered charity, registered Canadian amateur athletic association or registered journalism organization, the period ending on the day that is two years after the date on which the registration of the registered charity, the registered Canadian amateur athletic association or the registered journalism organization under the Act is revoked; in respect of all records and books of account that are not described in paragraph (d) and that relate to a registered charity, registered Canadian amateur athletic association or registered journalism organization whose registration under the Act is revoked, and in respect of the vouchers and accounts necessary to verify the information in such records and books of account, the period ending on the day that is two years after the date on which the registration of the registered charity, the registered Canadian amateur athletic association or the registered journalism organization under the Act is revoked; in respect of duplicates of receipts for gifts that are received by a qualified donee to which subsection 230(2) of the Act applies, the period ending on the day that is two years after the end of the last calendar year to which the receipts relate; and notwithstanding paragraphs (c) to (f), in respect of all records, books of account, vouchers and accounts of a deceased taxpayer or a trust in respect of which a clearance certificate is issued pursuant to subsection 159(2) of the Act with respect to the distribution of all the property of such deceased taxpayer or trust, the period ending on the day that the clearance certificate is issued. For the purposes of subsection 230.1(3) of the Act, with respect to the application of paragraph 230(4)(a) of the Act, the required retention period for records and books of account that are required to be kept pursuant to section 230.1 of the Act is prescribed to be the period ending on the day that is two years after the end of the last calendar year to which the records or books of accounts relate. [Repealed, SOR/81-725, s. 6] Where at any time a corporation resident in Canada or a foreign affiliate of the corporation receives a dividend on a share of any class of the capital stock of a foreign affiliate of the corporation, for the purposes of this Part and paragraph 113(1)(a) of the Act, the portion of the dividend paid out of the exempt surplus of the affiliate is prescribed to be that proportion of the dividend received that such portion of the whole dividend paid by the affiliate on the shares of that class at that time as was deemed by section 5901 to have been paid out of the affiliate’s exempt surplus in respect of the corporation the whole dividend paid by the affiliate on the shares of that class at that time;

for the purposes of this Part and paragraph 113(1)(a.1) of the Act, the portion of the dividend paid out of the hybrid surplus of the affiliate is prescribed to be that proportion of the dividend received that the portion of the whole dividend paid by the affiliate on the shares of that class at that time that was deemed by section 5901 to have been paid out of the affiliate’s hybrid surplus in respect of the corporation for the purposes of this Part and subsection 91(5) and paragraphs 113(1)(b) and (c) of the Act, the portion of the dividend paid out of the taxable surplus of the affiliate is prescribed to be that proportion of the dividend received that such portion of the whole dividend paid by the affiliate on the shares of that class at that time as was deemed by section 5901 to have been paid out of the affiliate’s taxable surplus in respect of the corporation for the purposes of this Part and paragraph 113(1)(d) of the Act, the portion of the dividend paid out of the pre-acquisition surplus of the affiliate is prescribed to be that proportion of the dividend received that such portion of the whole dividend paid by the affiliate on the shares of that class at that time as was deemed by section 5901 to have been paid out of the affiliate’s pre-acquisition surplus in respect of the corporation for the purposes of this Part and paragraph 113(1)(a.1) of the Act, the foreign tax applicable to the portion of the dividend prescribed to have been paid out of the hybrid surplus of the affiliate is prescribed to be that proportion of the hybrid underlying tax applicable, in respect of the corporation, to the whole dividend paid by the affiliate on the shares of that class at that time that the amount of the dividend received by the corporation or the affiliate, as the case may be, on that share at that time the whole dividend paid by the affiliate on the shares of that class at that time; and for the purposes of this Part and paragraph 113(1)(b) of the Act, the foreign tax applicable to the portion of the dividend prescribed to have been paid out of the taxable surplus of the affiliate is prescribed to be that proportion of the underlying foreign tax applicable, in respect of the corporation, to the whole dividend paid by the affiliate on the shares of that class at that time that the whole dividend paid by the affiliate on the shares of that class at that time. Notwithstanding paragraphs (1)(a) and (b), where at any time a foreign affiliate of a corporation resident in Canada pays a dividend on a share of a class of its capital stock (other than a share in respect of which an election is made under subsection 93(1) of the Act) to the corporation, the corporation may, in its return of income under Part I of the Act for its taxation year in which the dividend was received by it, designate an amount not exceeding the portion of the dividend received that would, but for this subsection, be prescribed to have been paid out of the affiliate’s exempt surplus in respect of the corporation and that amount is prescribed to have been paid out of the affiliate’s taxable surplus in respect of the corporation and not to have been paid out of that exempt surplus; and for the purposes of paragraph (1)(d) and the definitions underlying foreign tax and underlying foreign tax applicable in subsection 5907(1) is deemed to have been paid by the affiliate to the corporation as a separate whole dividend on the shares of that class of the capital stock immediately after that time, and that whole dividend is deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation. For the purposes of subsection 91(5) of the Act, if a person resident in Canada (other than a corporation) receives a dividend on a share of any class of the capital stock of a foreign affiliate of the person, the dividend is prescribed to have been paid out of the affiliate’s taxable surplus. Subject to subsection (1.1), if at any time in its taxation year a foreign affiliate of a corporation resident in Canada has paid a whole dividend on the shares of any class of its capital stock, for the purposes of this Part the portion of the whole dividend deemed to have been paid out of the affiliate’s exempt surplus in respect of the corporation at that time is an amount equal to the lesser of the amount of the whole dividend, and the amount, if any, by which the exempt surplus exceeds the total of the affiliate’s hybrid deficit, if any, in respect of the corporation at that time, and the affiliate’s taxable deficit, if any, in respect of the corporation at that time; the portion of the whole dividend deemed to have been paid out of the affiliate’s hybrid surplus in respect of the corporation at that time is an amount equal to the lesser of the amount, if any, by which the amount of the whole dividend exceeds the portion determined under paragraph (a), and the amount, if any, by which the hybrid surplus exceeds if the affiliate has an exempt deficit and a taxable deficit, in respect of the corporation at that time, the total of the exempt deficit and the taxable deficit, if the affiliate has an exempt deficit and no taxable deficit, in respect of the corporation at that time, the amount of the exempt deficit, and if the affiliate has a taxable deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the taxable deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time; the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation at that time is an amount equal to the lesser of the amount, if any, by which the amount of the whole dividend exceeds the total of the portions determined under paragraphs (a) and (a.1), and the amount, if any, by which the taxable surplus exceeds if the affiliate has an exempt deficit and a hybrid deficit, in respect of the corporation at that time, the total of the exempt deficit and the hybrid deficit, if the affiliate has an exempt deficit and no hybrid deficit, in respect of the corporation at that time, the amount, if any, by which the exempt deficit exceeds the affiliate’s hybrid surplus in respect of the corporation at that time, and if the affiliate has a hybrid deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the hybrid deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time; and the portion of the whole dividend deemed to have been paid out of the affiliate’s pre-acquisition surplus in respect of the corporation at that time is the amount, if any, by which the whole dividend exceeds the total of the portions determined under paragraphs (a) to (b). If the corporation resident in Canada that is referred to in subsection (1) elects in writing under this subsection in respect of the whole dividend referred to in subsection (1) and files the election with the Minister on or before the corporation’s filing-due date for its taxation year that includes the day the whole dividend was paid, subsection (1) applies in respect of the whole dividend as if its paragraphs (a.1) and (b) read as follows: if the affiliate has an exempt deficit and no hybrid deficit, in respect of the corporation at that time, the amount of the exempt deficit, and if the affiliate has a hybrid deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the hybrid deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time; the amount, if any, by which the amount of the whole dividend exceeds the total of the portions determined under paragraphs (a) and (a.1), if the affiliate has an exempt deficit and no taxable deficit, in respect of the corporation at that time, the amount, if any, by which the exempt deficit exceeds the affiliate’s taxable surplus in respect of the corporation at that time, and if the affiliate has a taxable deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the taxable deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time; and Notwithstanding subsection (1), if a foreign affiliate of a corporation resident in Canada pays a whole dividend (other than a whole dividend referred to in subsection 5902(1)) at any particular time in its taxation year that is more than 90 days after the commencement of that year or at any particular time in its 1972 taxation year that is before January 1, 1972, the portion of the whole dividend that would, in the absence of this paragraph, be deemed to have been paid out of the affiliate’s pre-acquisition surplus in respect of the corporation (otherwise than because of an election under paragraph (b)) is instead deemed to have been paid out of the exempt surplus, hybrid surplus and taxable surplus of the affiliate in respect of the corporation to the extent that it would have been deemed to have been so paid if, immediately after the end of that year, that portion were paid as a separate whole dividend before any whole dividend paid after the particular time and after any whole dividend paid before the particular time by the affiliate, and for the purposes of determining the exempt deficit, exempt surplus, hybrid deficit, hybrid surplus, hybrid underlying tax, taxable deficit, taxable surplus and underlying foreign tax of the affiliate in respect of the corporation at any time, that portion is deemed to have been paid as a separate whole dividend immediately following the end of the year and not to have been paid at the particular time; and a whole dividend referred to in subsection (1) that is paid at any time by a foreign affiliate of a corporation resident in Canada and that would, in the absence of this paragraph, be deemed under subsection (1) to have been, in whole or in part, paid out of the exempt surplus, hybrid surplus or taxable surplus of the affiliate in respect of the corporation is instead deemed to have been paid out of the pre-acquisition surplus of the affiliate in respect of the corporation if the corporation, and each other corporation, if any, of which the affiliate would, at that time, be a foreign affiliate if paragraph (b) of the definition equity percentage in subsection 95(4) of the Act were read as if the reference in that paragraph to “any corporation” were a reference to “any corporation other than a corporation resident in Canada” and that is, at that time, related to the corporation, where there is no such other corporation, elects in writing under this subparagraph and files the election with the Minister on or before the filing-due date for its taxation year in which the whole dividend is paid, and in any other case, jointly elect in writing under this subparagraph and file the election with the Minister on or before the earliest of the filing-due dates for their taxation years in which the whole dividend is paid, no shareholder of the affiliate is, at that time, a partnership a member of which is a corporation that would, in the absence of this subparagraph, be eligible to elect under subparagraph (i), or a foreign affiliate of such a corporation, and no particular person or particular partnership — in respect of which the affiliate would, at that time, be a foreign affiliate if paragraph (b) of the definition equity percentage in subsection 95(4) of the Act were read in the manner required by subparagraph (i) — has elected under subsection 90(3) of the Act in respect of the distribution that is the whole dividend where in the case of a particular person, the particular person is, or is at that time related to, the corporation, or in the case of a particular partnership, a member of the particular partnership is, or is at that time related to, the corporation. Subsection (2.2) applies if, in respect of a whole dividend paid by a foreign affiliate of a corporation resident in Canada, the corporation determined not to make an election under subparagraph (2)(b)(i) in respect of the whole dividend before the filing-due date specified in the relevant clause of that subparagraph; the corporation demonstrates that the determination was made using reasonable efforts; and the corporation, whether jointly with one or more other corporations or otherwise, files such an election on or before the day that is 10 years after that filing-due date. If this subsection applies and, in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit an election referred to in subsection (2.1) to be filed after the filing-due date specified in the relevant clause of subparagraph (2)(b)(i), that election is deemed to have been filed on that filing-due date. Notwithstanding subsections (1) and (2), for the purposes of the definitions exempt deficit, exempt surplus, taxable deficit and taxable surplus in subsection 5907(1), any amount designated pursuant to subsection 5900(2) in respect of a dividend paid by a foreign affiliate of a corporation resident in Canada increases the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation and decreases the portion of the whole dividend deemed to have been paid out of the affiliate’s exempt surplus in respect of the corporation. If at any time a dividend (such time and each such dividend, respectively, referred to in this subsection and subsection (2) as the “dividend time” and an “elected dividend”) is, by virtue of an election made under subsection 93(1) of the Act by a corporation in respect of a disposition, deemed to have been received on a share (each such share referred to in this subsection as an “elected share”) of a class of the capital stock of a particular foreign affiliate of the corporation, the following rules apply: for the purposes of subsection 5900(1), in applying the provisions of subsection 5901(1), the particular affiliate’s exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, underlying foreign tax and net surplus, in respect of the corporation at the dividend time, are deemed to be those amounts that would otherwise be determined immediately before the dividend time if each other foreign affiliate of the corporation in which the affiliate had an equity percentage (within the meaning assigned by subsection 95(4) of the Act) at the dividend time had, immediately before the time that is immediately before the dividend time, paid a dividend equal to its net surplus in respect of the corporation, determined immediately before the time the dividend was paid, and any dividend referred to in clause (A) that any other foreign affiliate would have received had been received by it immediately before any such dividend that it would have paid, and the particular affiliate is deemed to have paid a whole dividend at the dividend time on the shares of that class of its capital stock in an amount determined by the formula is the total of all amounts each of which is the amount of an elected dividend, and (A)one, and one, and (B)the quotient determined by the formulaC/DwhereCis the amount of the particular affiliate’s net surplus determined under subparagraph (a)(i), andDis the greater of(I)one unit of the currency in which the amount determined for C is expressed, and(II)the amount that would have been received on the elected shares if the particular affiliate had at the dividend time paid dividends, on all shares of its capital stock, the total of which was equal to the amount of its net surplus referred to in subparagraph (a)(i); and the quotient determined by the formula is the amount of the particular affiliate’s net surplus determined under subparagraph (a)(i), and (I)one unit of the currency in which the amount determined for C is expressed, and one unit of the currency in which the amount determined for C is expressed, and (II)the amount that would have been received on the elected shares if the particular affiliate had at the dividend time paid dividends, on all shares of its capital stock, the total of which was equal to the amount of its net surplus referred to in subparagraph (a)(i); and the amount that would have been received on the elected shares if the particular affiliate had at the dividend time paid dividends, on all shares of its capital stock, the total of which was equal to the amount of its net surplus referred to in subparagraph (a)(i); and subject to paragraph 5905(5)(c), there is to be included, at the dividend time, under subparagraph (v) of the description of B in the definition exempt surplus in subsection 5907(1) in computing the particular affiliate’s exempt surplus or exempt deficit, as the case may be, in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the portion of any elected dividend that is prescribed by paragraph 5900(1)(a) to have been paid out of the exempt surplus of the particular affiliate, under subparagraph (vi) of the description of B in the definition hybrid surplus in subsection 5907(1) in computing the particular affiliate’s hybrid surplus or hybrid deficit, as the case may be, in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the portion of any elected dividend that is prescribed by paragraph 5900(1)(a.1) to have been paid out of the hybrid surplus of the particular affiliate, under subparagraph (iii) of the description of B in the definition hybrid underlying tax in subsection 5907(1) in computing the particular affiliate’s hybrid underlying tax in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the amount prescribed by paragraph 5900(1)(c.1) to be the foreign tax applicable to the portion of any elected dividend that is prescribed by paragraph 5900(1)(a.1) to have been paid out of the hybrid surplus of the particular affiliate, under subparagraph (v) of the description of B in the definition taxable surplus in subsection 5907(1) in computing the particular affiliate’s taxable surplus or taxable deficit, as the case may be, in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the portion of any elected dividend that is prescribed by paragraph 5900(1)(b) to have been paid out of the taxable surplus of the particular affiliate, and under subparagraph (iii) of the description of B in the definition underlying foreign tax in subsection 5907(1) in computing the particular affiliate’s underlying foreign tax in respect of the corporation an amount equal to the product obtained when the specified adjustment factor in respect of the disposition is multiplied by the total of all amounts each of which is the amount prescribed by paragraph 5900(1)(d) to be the foreign tax applicable to such portion of any elected dividend as is prescribed by paragraph 5900(1)(b) to have been paid out of the taxable surplus of the particular affiliate. for the purpose of paragraph (1)(a), if a particular foreign affiliate of a corporation has an equity percentage (within the meaning assigned by subsection 95(4) of the Act) in another foreign affiliate of the corporation that has an equity percentage in the particular affiliate, the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, underlying foreign tax and net surplus of, and the amount of a dividend paid or received by, the particular affiliate are to be determined in a manner that is reasonable in the circumstances, and consistent with the results that would be obtained if a series of actual dividends had been paid and received by the foreign affiliates of the corporation that are relevant to the determination, and if any foreign affiliate of a corporation resident in Canada has issued shares of more than one class of its capital stock, the amount that would be paid as a dividend on the shares of any class is the portion of its net surplus that, in the circumstances, it might reasonably be expected to have paid on all the shares of the class, and the specified adjustment factor in respect of a disposition is the percentage determined by the formula (i)if the elected dividend is received by the corporation, 100 per cent, and if the elected dividend is received by the corporation, 100 per cent, and (ii)if the elected dividend is received by another foreign affiliate of the corporation, the surplus entitlement percentage of the corporation in respect of the other affiliate immediately before the dividend time, and if the elected dividend is received by another foreign affiliate of the corporation, the surplus entitlement percentage of the corporation in respect of the other affiliate immediately before the dividend time, and is the surplus entitlement percentage of the corporation in respect of the particular affiliate immediately before the dividend time. [Repealed, 2013, c. 34, s. 41] [Repealed, SOR/85-176, s. 1] Any election under subsection 93(1) of the Act by a corporation resident in Canada in respect of any share of the capital stock of a foreign affiliate of the corporation disposed of by it or by another foreign affiliate of the corporation shall be made by filing the prescribed form with the Minister on or before the day that is the later of December 31, 1989; and where the election is made in respect of a share disposed of by the corporation, the day on or before which the corporation’s return of income for its taxation year in which the disposition was made is required to be filed pursuant to subsection 150(1) of the Act, or in respect of a share disposed of by another foreign affiliate of the corporation, the day on or before which the corporation’s return of income for its taxation year, in which the taxation year of the foreign affiliate in which the disposition was made ends, is required to be filed pursuant to subsection 150(1) of the Act, as the case may be. If at any time a corporation resident in Canada is deemed under subsection 93(1.11) of the Act to have made an election under subsection 93(1) of the Act in respect of a disposition of a share of the capital stock of a particular foreign affiliate of the corporation, the prescribed amount is the lesser of the capital gain, if any, otherwise determined in respect of the disposition of the share; and the amount that would reasonably be expected to have been received in respect of the share if the particular affiliate had at that time paid dividends, on all shares of its capital stock, the total of which was equal to the amount determined under subparagraph (1)(a)(i) to be its net surplus in respect of the corporation for the purposes of the election. For the purposes of the description of F in the definition foreign accrual property income in subsection 95(1) of the Act, subject to subsection (2), the prescribed amount for the year (referred to in this subsection and subsection (2) as the “particular year”) is the total of all amounts each of which is a portion designated for the particular year by the taxpayer of the foreign accrual property loss of the affiliate for a taxation year of the affiliate that is one of the 20 taxation years of the affiliate that immediately precede the particular year; or one of the three taxation years of the affiliate that immediately follow the particular year. For the purposes of this subsection and subsection (1), a portion of a foreign accrual property loss of the affiliate for any taxation year of the affiliate may be designated for the particular year only to the extent that the foreign accrual property loss exceeds the total of all amounts each of which is a portion, of the foreign accrual property loss, designated by the taxpayer for a taxation year of the affiliate that precedes the particular year; no portion of the affiliate’s foreign accrual property loss for a taxation year of the affiliate is to be designated for the particular year until the affiliate’s foreign accrual property losses for the preceding taxation years referred to in paragraph (1)(a) have been fully designated; and if any person or partnership that was, at the end of a taxation year (referred to in this paragraph as the “relevant loss year”) of the affiliate, a relevant person or partnership in respect of the taxpayer designates for a taxation year (referred to in this paragraph as the “relevant claim year”) of the affiliate a particular portion of the affiliate’s foreign accrual property loss for the relevant loss year, there is deemed to have been designated for the relevant claim year by the taxpayer the portion of that loss that is the greater of the particular portion, and the greatest of the portions of that loss that are so designated by any other relevant persons or partnerships in respect of the taxpayer. For the purposes of this section, and subject to subsection (4), foreign accrual property loss of the affiliate for a taxation year of the affiliate means where, at the end of the year, the affiliate is a controlled foreign affiliate of a person or partnership that is, at the end of the year, a relevant person or partnership in respect of the taxpayer, the amount, if any, determined by the formula is the amount determined for D in the formula in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the affiliate for the year, is the amount, if any, by which (i)the amount determined for A in that formula in respect of the affiliate for the year the amount determined for A in that formula in respect of the affiliate for the year (ii)the amount determined for H in that formula in respect of the affiliate for the year, the amount determined for H in that formula in respect of the affiliate for the year, (i)the amount determined for B in that formula in respect of the affiliate for the year the amount determined for B in that formula in respect of the affiliate for the year (ii)the total of(A)the amount determined for E in that formula in respect of the affiliate for the year, and(B)the amount determined for F.1 in that formula in respect of the affiliate for the year, (A)the amount determined for E in that formula in respect of the affiliate for the year, and the amount determined for E in that formula in respect of the affiliate for the year, and (B)the amount determined for F.1 in that formula in respect of the affiliate for the year, the amount determined for F.1 in that formula in respect of the affiliate for the year, is the amount determined for C in that formula in respect of the affiliate for the year, and (i)the total of(A)the amount determined for A.1 in that formula in respect of the affiliate for the year, and(B)the amount determined for A.2 in that formula in respect of the affiliate for the year (A)the amount determined for A.1 in that formula in respect of the affiliate for the year, and the amount determined for A.1 in that formula in respect of the affiliate for the year, and (B)the amount determined for A.2 in that formula in respect of the affiliate for the year the amount determined for A.2 in that formula in respect of the affiliate for the year (ii)the amount determined for G in that formula in respect of the affiliate for the year; and the amount determined for G in that formula in respect of the affiliate for the year; and In computing under subsection (3) the foreign accrual property loss of the affiliate for a taxation year, if the affiliate or another corporation receives a payment described in subsection 5907(1.3) from a non-resident corporation that is, at the time of the payment, a foreign affiliate of a relevant person or partnership in respect of the taxpayer and any portion of the payment can reasonably be considered to relate to a loss or portion of a loss of the affiliate for the year described in the description of D in the definition foreign accrual property income in subsection 95(1) of the Act, the amount of the loss or portion of the loss is deemed to be nil. For the purposes of this section, section 5903.1 and section 18.2 of the Act, if paragraph 95(2)(d.1) of the Act applies to a foreign merger, the new foreign corporation referred to in that paragraph is, except in the determination of the foreign accrual property income of a foreign affiliate predecessor referred to in that paragraph, deemed to be the same corporation as, and a continuation of, each foreign affiliate predecessor; and if paragraph 95(2)(e) of the Act applies to a liquidation and dissolution, of a disposing affiliate referred to in that paragraph, that is a designated liquidation and dissolution of the disposing affiliate, the shareholder affiliate referred to in that paragraph is, except in the determination of the foreign accrual property income of the disposing affiliate, deemed to be the same corporation as, and a continuation of, the disposing affiliate. In this section and section 5903.1, a relevant person or partnership, in respect of the taxpayer at any time, means the taxpayer or a person (other than a designated acquired corporation of the taxpayer), or a partnership, that is at that time a person (other than a partnership) that is resident in Canada and does not, at that time, deal at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b) of the Act) with the taxpayer; an antecedent corporation of a relevant person or partnership in respect of the taxpayer; a partnership a member of which is at that time a relevant person or partnership in respect of the taxpayer under this subsection; or where paragraph (1)(b) is being applied, a corporation of which the taxpayer is an antecedent corporation. For the purposes of paragraphs (6)(a) to (d), if a person or partnership (referred to in this paragraph as the “relevant person”) is not dealing at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b) of the Act) with another person or partnership (referred to in this paragraph as the “particular person”) at a particular time, the relevant person is deemed to have existed and not to have dealt at arm’s length with the particular person, nor with each antecedent corporation (other than a designated acquired corporation of the particular person) of the particular person, throughout the period that began when the particular person or the antecedent corporation, as the case may be, came into existence and that ends at the particular time; and where paragraph (1)(b) is being applied, if a corporation of which a particular person (other than a designated acquired corporation of the corporation) is an antecedent corporation is not dealing at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b) of the Act) with another person or partnership at any time, the particular person is deemed to exist and not to be dealing at arm’s length with the other person or the partnership, as the case may be, at that time. For the purposes of the description of F.1 in the definition foreign accrual property income in subsection 95(1) of the Act, subject to subsection (2), the prescribed amount for the year (referred to in this subsection and subsection (2) as the “particular year”) is the total of all amounts each of which is a portion designated for the particular year by the taxpayer of the foreign accrual capital loss of the affiliate for a taxation year of the affiliate that is one of the twenty taxation years of the affiliate that immediately precede the particular year; or a portion of a foreign accrual capital loss of the affiliate for any taxation year of the affiliate may be designated for the particular year only to the extent that the foreign accrual capital loss exceeds the total of all amounts each of which is a portion, of the foreign accrual capital loss, designated by the taxpayer for a taxation year of the affiliate that precedes the particular year; no portion of the foreign accrual capital loss of the affiliate for a taxation year of the affiliate is to be designated for the particular year until the foreign accrual capital losses of the affiliate for the preceding taxation years referred to in paragraph (1)(a) have been fully designated; and if any person or partnership that was, at the end of a taxation year (referred to in this paragraph as the “relevant loss year”) of the affiliate, a relevant person or partnership in respect of the taxpayer designates for a taxation year (referred to in this paragraph as the “relevant claim year”) of the affiliate a particular portion of the foreign accrual capital loss of the affiliate for the relevant loss year, there is deemed to have been designated for the relevant claim year by the taxpayer the portion of that loss that is the greater of For the purposes of this section, and subject to subsection (4), foreign accrual capital loss of the affiliate for a taxation year of the affiliate means where, at the end of the year, the affiliate is a controlled foreign affiliate of a person or partnership that is, at the end of the year, a relevant person or partnership in respect of the taxpayer, the amount, if any, by which the amount determined under paragraph (a) of the description of E in the formula in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the affiliate for the year the amount determined for E in that formula in respect of the affiliate for the year; and In computing under subsection (3) the foreign accrual capital loss of the affiliate for a taxation year, if the affiliate or another corporation receives a payment described in subsection 5907(1.3) from a non-resident corporation that is, at the time of the payment, a foreign affiliate of a relevant person or partnership in respect of the taxpayer and any portion of the payment can reasonably be considered to relate to an allowable capital loss or a portion of an allowable capital loss of the affiliate for the year described in the description of E in the definition foreign accrual property income in subsection 95(1) of the Act, the amount of the loss or portion of the loss is deemed to be nil. For the purpose of subparagraph (b)(ii) of the definition participating percentage in subsection 95(1) of the Act, the participating percentage of a particular share owned by a taxpayer of the capital stock of a corporation in respect of any foreign affiliate of the taxpayer that was, at the end of its taxation year, a controlled foreign affiliate of the taxpayer is prescribed to be the percentage that would be the taxpayer’s equity percentage in the affiliate at that time on the assumption that the taxpayer owned no shares other than the particular share; the direct equity percentage of a person in any foreign affiliate of the taxpayer, for which the total of the distribution entitlements of all the shares of all classes of the capital stock of the affiliate was greater than nil, was determined by the following rules and not by the rules contained in the definition direct equity percentage in subsection 95(4) of the Act: for each class of the capital stock of the affiliate, determine that amount that is the proportion of the distribution entitlement of all the shares of that class that the number of shares of that class owned by that person is of all the issued shares of that class, and determine the proportion that the aggregate of the amounts determined under subparagraph (i) for each class of the capital stock of the affiliate the aggregate of the distribution entitlements of all the issued shares of all classes of the capital stock of the affiliate and the proportion determined under subparagraph (ii) when expressed as a percentage is that person’s direct equity percentage in the affiliate; and the direct equity percentage of a person in any foreign affiliate of the taxpayer, for which the total of the distribution entitlements of all the shares of all classes of the capital stock of the affiliate would not, in the absence of this paragraph, be greater than nil, was determined on the assumption that the amount determined under subparagraph (2)(b)(i) were the greater of the amount of the affiliate’s retained earnings, if any, determined at the end of the taxation year under accounting principles that are relevant to the affiliate for the taxation year, and is the amount of the affiliate’s total assets determined at the end of the taxation year under accounting principles that are relevant to the affiliate for the taxation year, and is 25%. For the purposês of this section, the distribution entitlement of all the shares of a class of the capital stock of a foreign affiliate of the taxpayer at the end of its taxation year is the aggregate of the distributions made during the year by the affiliate to holders of shares of that class; and the amount that the affiliate might reasonably be expected to distribute to holders of shares of that class immediately after the end of the year if at that time it had distributed to its shareholders an amount equal to the aggregate of the amount, if any, by which the net surplus of the affiliate in respect of the taxpayer at the end of the year, computed as though any adjustments resulting from the provisions of sections 5902 and 5905 and subsections 5907(2.1) and (2.2) and any references thereto during the year were ignored, exceeds the net surplus of the affiliate in respect of the taxpayer at the end of its immediately preceding taxation year, and the amount that the affiliate would receive if at that time each controlled foreign affiliate of the taxpayer in which the affiliate had an equity percentage had distributed to its shareholders an amount equal to the aggregate of the amount that would be determined under subparagraph (i) for the controlled foreign affiliate if the controlled foreign affiliate were the foreign affiliate referred to in subparagraph (i), for each of the taxation years of the controlled foreign affiliate ending in the taxation year of the affiliate, and each such amount that the controlled foreign affiliate would receive from any other controlled foreign affiliate of the taxpayer in which it had an equity percentage. the net surplus of a foreign affiliate of a person resident in Canada is, in respect of that person, to be computed as if that person were a corporation resident in Canada; if a particular foreign affiliate of a corporation has an equity percentage (within the meaning assigned by subsection 95(4) of the Act) in another foreign affiliate of the corporation that has an equity percentage in the particular affiliate, the net surplus of, or the amount of a distribution received by, the particular affiliate is to be determined in a manner that is consistent with the results that would be obtained if a series of actual distributions had been made and received by the foreign affiliates of the corporation that are relevant to the determination; if any controlled foreign affiliate of a taxpayer resident in Canada has issued shares of more than one class of its capital stock, the amount that would be distributed to the holders of shares of any class is such portion of the amount determined under subparagraph (2)(b)(ii) as, in the circumstances, it might reasonably be expected to distribute to the holders of those shares; and in determining the distribution entitlement of a class of shares of the capital stock of a foreign affiliate that is entitled to cumulative dividends, the amount of any distribution referred to in paragraph (2)(a) shall be deemed not to include any distribution in respect of such class that is, or would, if it were made, be referable to profits of a preceding taxation year, and of any other class of shares of the capital stock of the affiliate, the net surplus of the affiliate at the end of the year referred to in subparagraph (2)(b)(i) shall be deemed not to have been reduced by any distribution described in subparagraph (i) with respect to a class of shares that is entitled to cumulative dividends to the extent that the distribution was referable to profits of a preceding taxation year. If, at any time, there is an acquisition or a disposition of shares of the capital stock of a particular foreign affiliate of a corporation resident in Canada and the surplus entitlement percentage of the corporation in respect of the particular foreign affiliate or any other foreign affiliate (the particular affiliate and those other affiliates each being referred to in this subsection as a “relevant affiliate”) of the corporation in which the particular affiliate has an equity percentage (within the meaning assigned by subsection 95(4) of the Act) changes, for the purposes of the definitions exempt surplus, hybrid surplus, hybrid underlying tax, taxable surplus, and underlying foreign tax in subsection 5907(1), each of the opening exempt surplus or opening exempt deficit, opening hybrid surplus or opening hybrid deficit, opening hybrid underlying tax, opening taxable surplus or opening taxable deficit, and opening underlying foreign tax, as the case may be, of the relevant affiliate in respect of the corporation is, except where the acquisition or disposition occurs in a transaction to which paragraph (3)(a) or subsection (5) or (5.1) applies, the amount determined at that time by the formula is the amount of that surplus, deficit or tax, as the case may be, as otherwise determined at that time; is the corporation’s surplus entitlement percentage immediately before that time in respect of the relevant affiliate; and is the corporation’s surplus entitlement percentage immediately after that time in respect of the relevant affiliate. [Repealed, 2013, c. 34, s. 44] If at any time (referred to in this subsection as the “merger time”) a foreign affiliate (referred to in this subsection as the “merged affiliate”) of a corporation resident in Canada has been formed as a result of a foreign merger (within the meaning assigned by subsection 87(8.1) of the Act) of two or more corporations (referred to individually in this subsection as a “predecessor corporation”), the following rules apply: for the purposes of the definitions exempt surplus, hybrid surplus, hybrid underlying tax, taxable surplus and underlying foreign tax in subsection 5907(1), as they apply in respect of the merged affiliate, the merged affiliate’s opening exempt surplus, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the exempt surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the exempt deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time, the merged affiliate’s opening exempt deficit, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the exempt deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the exempt surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time, the merged affiliate’s opening hybrid surplus, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the hybrid surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the hybrid deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time, the merged affiliate’s opening hybrid deficit, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the hybrid deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the hybrid surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time, the merged affiliate’s opening hybrid underlying tax in respect of the corporation shall be the total of all amounts each of which is the hybrid underlying tax of a predecessor corporation, in respect of the corporation, immediately before the merger time, the merged affiliate’s opening taxable surplus, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the taxable surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the taxable deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time, the merged affiliate’s opening taxable deficit, in respect of the corporation, shall be the amount, if any, by which the total of all amounts each of which is the taxable deficit of a predecessor corporation, in respect of the corporation, immediately before the merger time exceeds the total of all amounts each of which is the taxable surplus of a predecessor corporation, in respect of the corporation, immediately before the merger time, and the merged affiliate’s opening underlying foreign tax in respect of the corporation shall be the total of all amounts each of which is the underlying foreign tax of a predecessor corporation, in respect of the corporation, immediately before the merger time; for the purposes of paragraph (a), each of the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit and underlying foreign tax, in respect of the corporation, of each predecessor corporation immediately before the merger time is deemed to be the amount determined by the formula is the amount of that surplus, deficit or tax, as the case may be, as otherwise determined, is the surplus entitlement percentage of the corporation immediately before the merger time in respect of the predecessor corporation, and is the percentage that would be the surplus entitlement percentage of the corporation immediately after the merger time in respect of the merged affiliate if the merged affiliate’s net surplus were the total of all amounts each of which is the net surplus of a predecessor corporation immediately before the merger time, but the values for A, B and C in the formula in subparagraph (i) shall take into account the application of paragraph 5902(1)(b) and subsection 5907(8) in respect of the merger; and in respect of any foreign affiliate (other than a predecessor corporation) of the corporation in which a predecessor corporation had an equity percentage (within the meaning assigned by subsection 95(4) of the Act) immediately before the merger time, for the purposes of subsection (1), there is deemed to be an acquisition or a disposition of shares of the capital stock of that affiliate at the merger time.

If there is, at any time, a disposition by a corporation (referred to in this subsection as the “disposing corporation”) resident in Canada of any of the shares (referred to in this subsection as the “disposed shares”) of the capital stock of a particular foreign affiliate of the disposing corporation to a taxable Canadian corporation (referred to in this subsection as the “acquiring corporation”) with which the disposing corporation is not dealing at arm’s length, each of the opening exempt surplus or opening exempt deficit, opening hybrid surplus or opening hybrid deficit, opening hybrid underlying tax, opening taxable surplus or opening taxable deficit, and opening underlying foreign tax, in respect of the acquiring corporation, of the particular affiliate and of each foreign affiliate of the disposing corporation in which the particular affiliate has, immediately before that time, an equity percentage (within the meaning assigned by subsection 95(4) of the Act) is deemed to be the amount, if any, in the case of its opening exempt surplus, by which the total of its exempt surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its exempt deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, in the case of its opening exempt deficit, by which the total of its exempt deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its exempt surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, in the case of its opening hybrid surplus, by which the total of its hybrid surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its hybrid deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, in the case of its opening hybrid deficit, by which the total of its hybrid deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its hybrid surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, in the case of its opening hybrid underlying tax, that is the total of its hybrid underlying tax in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, in the case of its opening taxable surplus, by which the total of its taxable surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its taxable deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, in the case of its opening taxable deficit, by which the total of its taxable deficit in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, exceeds the total of its taxable surplus in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time, and in the case of its opening underlying foreign tax, that is the total of its underlying foreign tax in respect of each of the disposing corporation and the acquiring corporation, determined immediately before that time; for the purposes of paragraph (a), each of the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax of an affiliate in respect of the disposing corporation and the acquiring corporation, determined immediately before that time, is deemed to be the amount determined by the formula is the amount of that surplus, deficit or tax, as the case may be, as determined without reference to this subsection but taking into account the application of subparagraph (c)(i), if applicable, is the surplus entitlement percentage immediately before that time of the disposing corporation or the acquiring corporation, as the case may be, in respect of the affiliate, determined as if the disposed shares were the only shares owned by the disposing corporation immediately before that time, and is the surplus entitlement percentage immediately after that time of the acquiring corporation in respect of the affiliate; if the disposing corporation makes an election under subsection 93(1) of the Act in respect of the disposed shares, for the purposes of paragraph (b), the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax of an affiliate in respect of the disposing corporation, as determined without reference to this subsection, immediately before that time, shall be adjusted in accordance with paragraph 5902(1)(b) as if the disposing corporation’s surplus entitlement percentage that is referred to in the description of B in paragraph 5902(2)(b) were determined as if the disposed shares were the only shares owned by the disposing corporation immediately before that time, and no adjustment shall be made to the amount of the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, or underlying foreign tax of an affiliate in respect of the disposing corporation under paragraph 5902(1)(b) other than for the purpose of paragraph (b); and for greater certainty, no adjustment shall be made under subsection (1) to the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, or underlying foreign tax of an affiliate in respect of the disposing corporation. If there is, at any time, an amalgamation within the meaning of subsection 87(1) of the Act and, as a result of the amalgamation, shares of the capital stock of a particular foreign affiliate of a predecessor corporation become property of the new corporation, each of the opening exempt surplus or opening exempt deficit, opening hybrid surplus or opening hybrid deficit, opening hybrid underlying tax, opening taxable surplus or opening taxable deficit, and opening underlying foreign tax, in respect of the new corporation, of the particular affiliate and of each foreign affiliate of the predecessor corporation in which the particular affiliate has, immediately before that time, an equity percentage (within the meaning assigned by subsection 95(4) of the Act) is deemed to be the amount, if any, in the case of its opening exempt surplus, by which the total of its exempt surplus in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its exempt deficit in respect of each predecessor corporation, determined immediately before that time, in the case of its opening exempt deficit, by which the total of its exempt deficit in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its exempt surplus in respect of each predecessor corporation, determined immediately before that time, in the case of its opening hybrid surplus, by which the total of its hybrid surplus in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its hybrid deficit in respect of each predecessor corporation, determined immediately before that time, in the case of its opening hybrid deficit, by which the total of its hybrid deficit in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its hybrid surplus in respect of each predecessor corporation, determined immediately before that time, in the case of its opening hybrid underlying tax, that is the total of its hybrid underlying tax in respect of each predecessor corporation, determined immediately before that time, in the case of its opening taxable surplus, by which the total of its taxable surplus in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its taxable deficit in respect of each predecessor corporation, determined immediately before that time, in the case of its opening taxable deficit, by which the total of its taxable deficit in respect of each predecessor corporation, determined immediately before that time, exceeds the total of its taxable surplus in respect of each predecessor corporation, determined immediately before that time, and in the case of its opening underlying foreign tax, that is the total of its underlying foreign tax in respect of each predecessor corporation, determined immediately before that time; and for the purpose of paragraph (a), each of the exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax of an affiliate in respect of a predecessor corporation, determined immediately before that time, is deemed to be the amount determined by the formula is the amount of that surplus, deficit or tax, as the case may be, as determined without reference to this subsection, is the predecessor corporation’s surplus entitlement percentage immediately before that time in respect of the affiliate, and is the new corporation’s surplus entitlement percentage immediately after that time in respect of the affiliate. If, at a particular time, control of a corporation resident in Canada has been acquired by a person or a group of persons and, at the particular time, the corporation owns shares of the capital stock of a foreign affiliate of the corporation, there shall be included — under subparagraph (v) of the description of B in the definition exempt surplus in subsection 5907(1) in computing the affiliate’s exempt surplus or exempt deficit, as the case may be, in respect of the corporation at the time that is immediately before the particular time — the amount, if any, determined by the formula is the affiliate’s tax-free surplus balance in respect of the corporation, determined at the time (referred to in this subsection as the “relevant time”) that is immediately before the time that is immediately before the particular time, and is the corporation’s surplus entitlement percentage in respect of the affiliate determined at the relevant time; is the total of all amounts each of which is the corporation’s cost amount, determined at the particular time, of a share of the capital stock of the affiliate that is owned by the corporation at the particular time; (a)the fair market value, determined at the particular time, of all of the shares of the capital stock of the affiliate that are owned by the corporation at the particular time, and the fair market value, determined at the particular time, of all of the shares of the capital stock of the affiliate that are owned by the corporation at the particular time, and (b)the amount, if any, determined under paragraph 5908(6)(b); and the amount, if any, determined under paragraph 5908(6)(b); and is the corporation’s surplus entitlement percentage in respect of the affiliate determined at the relevant time. The cost amount of a share that is referred to in the description of B in subsection (5.2) shall be determined after taking into account the application of subsection 111(4) of the Act. For the purposes of clause (B) of subparagraph 88(1)(d)(ii) of the Act, the prescribed amount is if the property described in that subparagraph is a share of the capital stock of a foreign affiliate of the subsidiary, the amount determined by the formula is the affiliate’s tax-free surplus balance, in respect of the subsidiary, determined at the time at which the parent last acquired control of the subsidiary, and is the percentage that would be the subsidiary’s surplus entitlement percentage, determined at that time, in respect of the affiliate if at that time the subsidiary had owned no shares of the affiliate’s capital stock other than the share; if the property described in that subparagraph is an interest in a partnership, the amount determined by subsection 5908(7); and For the purposes of subsections (5.2), (5.4), (7.2) and (7.3), the tax-free surplus balance of a foreign affiliate of a corporation resident in Canada, in respect of the corporation, at any time, is the total of the amount, if any, by which the affiliate’s exempt surplus in respect of the corporation at that time exceeds the total of the amount, if any, by which the amount of the affiliate’s hybrid surplus in respect of the corporation at that time exceeds the amount determined under subsection (5.7) in respect of the corporation at that time if, at that time, the amount of that hybrid surplus is less than or equal to the amount determined by the formula is the affiliate’s hybrid underlying tax in respect of the corporation at that time, is the corporation’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act) for the corporation’s taxation year that includes that time, and is the affiliate’s hybrid surplus in respect of the corporation at that time; and the amount, if any, determined by the formula is the affiliate’s underlying foreign tax in respect of the corporation at that time, and is the amount by which the corporation’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act), for the corporation’s taxation year that includes that time, exceeds one, and the amount, if any, by which the affiliate’s taxable surplus in respect of the corporation at that time exceeds if the affiliate has a hybrid deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the hybrid deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time. For the purposes of subsection (5.5), the amounts of exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax, of a foreign affiliate of corporation resident in Canada, in respect of the corporation, at a particular time are those amounts that would be determined, at the particular time, under subparagraph 5902(1)(a)(i) if that subparagraph were applicable at the particular time and the references in that subparagraph to “the dividend time” were references to the particular time. For the purposes of paragraph (5.5)(a.1), the amount determined under this subsection in respect of the corporation at any time is if the affiliate has an exempt deficit and a taxable deficit, in respect of the corporation at that time, the total of the exempt deficit and the taxable deficit; if the affiliate has an exempt deficit and no taxable deficit, in respect of the corporation at that time, the amount of the exempt deficit; and if the affiliate has a taxable deficit and no exempt deficit, in respect of the corporation at that time, the amount, if any, by which the taxable deficit exceeds the affiliate’s exempt surplus in respect of the corporation at that time. If at any time there has been a liquidation and dissolution of a foreign affiliate (referred to in this subsection as the “dissolved affiliate”) of a corporation resident in Canada that is a designated liquidation and dissolution (within the meaning assigned by subsection 95(1) of the Act) of the dissolved affiliate, each other foreign affiliate of the corporation that had a direct equity percentage (within the meaning assigned by subsection 95(4) of the Act) in the dissolved affiliate immediately before that time is, for the purposes of computing its exempt surplus or exempt deficit, hybrid surplus or hybrid deficit, hybrid underlying tax, taxable surplus or taxable deficit, and underlying foreign tax, in respect of the corporation, deemed to have received dividends immediately before that time the total of which is equal to the amount it might reasonably have expected to receive if the dissolved affiliate had, immediately before that time, paid dividends on all shares of its capital stock the total of which was equal to the amount of its net surplus in respect of the corporation immediately before that time, determined on the assumption that the taxation year of the dissolved affiliate that otherwise would have included that time had ended immediately before that time. Subsection (7.2) applies if a foreign affiliate (referred to in this subsection and subsections (7.2) to (7.6) as the “deficit affiliate”) of a corporation resident in Canada has an exempt deficit, in respect of the corporation, at a particular time; and at the time (referred to in this paragraph and subsections (7.2) to (7.6) as the “acquisition time”) that is immediately after the particular time, shares of the capital stock of a foreign affiliate (referred to in this subsection and subsections (7.2) to (7.6) as an “acquired affiliate”) of the corporation in which the deficit affiliate has, at the particular time, an equity percentage (within the meaning assigned by subsection 95(4) of the Act) are acquired by, or otherwise become property of, the corporation, or another foreign affiliate of the corporation, in the case where the percentage that would, if the deficit affiliate were resident in Canada, be the deficit affiliate’s surplus entitlement percentage in respect of the acquired affiliate immediately after the acquisition time is less than the percentage that would, if the deficit affiliate were so resident, be its surplus entitlement percentage in respect of the acquired affiliate at the particular time. If this subsection applies, there is to be included, at the time (referred to in this subsection and subsections (7.6) and (7.7) and 5908(11) and (12) as the “adjustment time”) that is immediately before the time that is immediately before the time that is immediately before the acquisition time, under subparagraph (v) of the description of B in the definition exempt surplus in subsection 5907(1) in computing an acquired affiliate’s exempt surplus or exempt deficit in respect of the corporation, the amount, if any, equal to the lesser of is the deficit affiliate’s exempt deficit in respect of the corporation immediately before the acquisition time, and is the percentage that would, if the deficit affiliate were resident in Canada, be the deficit affiliate’s surplus entitlement percentage in respect of the acquired affiliate immediately before the acquisition time, and the acquired affiliate’s tax-free surplus balance in respect of the corporation immediately before the adjustment time, and if there is more than one acquired affiliate, the amount designated by the corporation, in its return of income for the taxation year in which the taxation year of the acquired affiliate that includes the acquisition time ends, in respect of the acquired affiliate, or in any other case, the amount determined under clause (A); at the time that is immediately after the acquisition time, under subparagraph (vi.1) of the description of A in the definition exempt surplus in subsection 5907(1) in computing the deficit affiliate’s exempt deficit in respect of the corporation, the total of all amounts each of which is the amount determined in respect of an acquired affiliate by the formula is the amount determined under paragraph (a) in respect of the acquired affiliate, and is the percentage that would, if the deficit affiliate were resident in Canada, be the deficit affiliate’s surplus entitlement percentage immediately before the acquisition time in respect of the acquired affiliate; and at the time that is immediately after the acquisition time, under subparagraph (vi.1) of the description of A in the definition exempt surplus in subsection 5907(1) in computing the exempt surplus or exempt deficit of any other foreign affiliate (referred to in this paragraph and paragraph (7.6)(b) as a “subordinate affiliate”) of the corporation, in respect of the corporation, that has immediately before the acquisition time a direct equity percentage (within the meaning assigned by subsection 95(4) of the Act) in the acquired affiliate and in which, immediately before the acquisition time, the deficit affiliate does not have an equity percentage (within the meaning assigned by subsection 95(4) of the Act), the amount determined by the formula is the percentage that would, if the subordinate affiliate were resident in Canada, be the subordinate affiliate’s surplus entitlement percentage immediately before the acquisition time in respect of the acquired affiliate if the subordinate affiliate owned no shares of the capital stock of any corporation other than its shares of the capital stock of the acquired affiliate. Subsection (7.4) applies if the deficit affiliate’s exempt deficit in respect of the corporation immediately before the acquisition time, and the total of all amounts each of which is the amount, if any, that is the product obtained by multiplying the tax-free surplus balance immediately before the acquisition time in respect of the corporation of an acquired affiliate, and the surplus entitlement percentage of the corporation in respect of that acquired affiliate immediately before the acquisition time the amount, if any, actually designated under subclause (7.2)(a)(ii)(B)(I) in respect of an acquired affiliate, and the surplus entitlement percentage of the corporation in respect of that acquired affiliate immediately before the acquisition time. If this subsection applies, the amount designated by the corporation in respect of a particular acquired affiliate is deemed, for the purposes of subclause (7.2)(a)(ii)(B)(I), to be the amount determined by the Minister in respect of the particular acquired affiliate; and not to be the amount, if any, actually designated under subclause (7.2)(a)(ii)(B)(I). Subsection (7.6) applies if subsection (7.2) applies; the deficit affiliate, or any other foreign affiliate of the corporation in which the deficit affiliate has, immediately before the acquisition time, an equity percentage (which percentage has, for the purposes of this subsection, the meaning assigned by subsection 95(4) of the Act and which deficit affiliate or other affiliate is referred to in subsection (7.6) as the “direct holder”), has, immediately before the acquisition time, a direct equity percentage (within the meaning assigned by that subsection 95(4)) in any other foreign affiliate (referred to in paragraph (c) and subsection (7.6) as the “subject affiliate”) of the corporation; and the subject affiliate is the acquired affiliate or has, immediately before the acquisition time, an equity percentage in the acquired affiliate. Subject to paragraph 5908(11)(c), for the purposes of paragraph 92(1.1)(a) of the Act, if this subsection applies, there shall be added, in computing on and after the adjustment time the direct holder’s adjusted cost base of a share of the capital stock of the subject affiliate, the amount determined by the formula is the amount determined under paragraph (7.2)(a) in respect of the acquired affiliate, and is the percentage that would, if the direct holder were resident in Canada, be the direct holder’s surplus entitlement percentage in respect of the acquired affiliate immediately before the acquisition time if the direct holder owned only the share; and the subordinate affiliate’s adjusted cost base of a share of the capital stock of the acquired affiliate, the amount determined by the formula is the percentage that would, if the subordinate affiliate were resident in Canada, be the subordinate affiliate’s surplus entitlement percentage in respect of the acquired affiliate immediately before the acquisition time if the subordinate affiliate owned only the share. For the purposes of paragraph 93(3)(c) of the Act, if an amount (referred to in this subsection and subsection 5908(12) as the “adjustment amount”) is required by subsection 92(1.1) of the Act to be added in computing, on or after the adjustment time, the adjusted cost base of a share of the capital stock of a foreign affiliate of a corporation resident in Canada, where paragraph 92(1.1)(a) of the Act applies, the prescribed amount is the adjustment amount; and where paragraph 92(1.1)(b) of the Act applies, the prescribed amount is the amount determined under subsection 5908(12). For the purposes of this section, the surplus entitlement at any time of a share owned by a corporation resident in Canada of the capital stock of a foreign affiliate of the corporation in respect of a particular foreign affiliate of the corporation is the portion of the amount that would have been received on the share if the foreign affiliate had at that time paid dividends the aggregate of which on all shares of its capital stock was equal to the amount that would be its net surplus in respect of the corporation at that time assuming that each other foreign affiliate of the corporation in which the foreign affiliate had an equity percentage had immediately before that time paid a dividend equal to its net surplus in respect of the corporation immediately before the dividend was paid, and any dividend referred to in subparagraph (i) that would be received by another foreign affiliate was received by such other foreign affiliate immediately before any such dividend that it would have paid, that may reasonably be considered to relate to the amount that would be the net surplus of the particular affiliate in respect of the corporation at that time assuming that each other foreign affiliate of the corporation in which the particular affiliate had an equity percentage had immediately before that time paid a dividend equal to its net surplus in respect of the corporation immediately before the dividend was paid, and any dividend referred to in subparagraph (i) that would be received by another foreign affiliate was received by such other foreign affiliate immediately before any such dividend that it would have paid. For the purposes of subsection (10), if a particular foreign affiliate of a corporation has an equity percentage in another foreign affiliate of the corporation that has an equity percentage in the particular affiliate, the amount that would be the net surplus of, or the amount that would be a dividend received by, the particular affiliate is to be determined in a manner that is consistent with the results that would be obtained if a series of actual dividends had been paid and received by the foreign affiliates of the corporation that are relevant to the determination; if any foreign affiliate of a corporation resident in Canada has issued shares of more than one class of its capital stock, the amount that would be paid as a dividend on the shares of any class is the portion of its net surplus that, in the circumstances, it might reasonably be expected to have paid on all the shares of that class; and if the particular affiliate’s net surplus as determined for the purposes of subsection (10) would, in the absence of this paragraph, be nil the particular affiliate’s net surplus for the purposes of that subsection is deemed to be the greater of the amount of the particular affiliate’s retained earnings, if any, determined at the end of its last taxation year ending before the time referred to in that subsection under accounting principles that are relevant to the particular affiliate for that year, and is the amount of the particular affiliate’s total assets determined at the end of that year under accounting principles that are relevant to the particular affiliate for that year, and [Repealed, 2013, c. 34, s. 84] For the purposes of the definition surplus entitlement percentage in subsection 95(1) of the Act and of this Part, the surplus entitlement percentage at any time of a corporation resident in Canada in respect of a particular foreign affiliate of the corporation is, the percentage that is the corporation’s equity percentage in the particular affiliate at that time if the particular affiliate and each corporation that is relevant to the determination of the corporation’s equity percentage in the particular affiliate have, at that time, only one class of issued shares, and no foreign affiliate (referred to in this subparagraph as the “upper-tier affiliate”) of the corporation that is relevant to the determination of the corporation’s equity percentage in the particular affiliate has, at that time, an equity percentage in a foreign affiliate (including, for greater certainty, the particular affiliate) of the corporation that has an equity percentage in the upper-tier affiliate; and in any other case, the proportion of 100 that the aggregate of all amounts, each of which is the surplus entitlement at that time of a share owned by the corporation of the capital stock of a foreign affiliate of the corporation in respect of the particular foreign affiliate of the corporation the amount determined under paragraph (10)(b) to be the net surplus of the particular affiliate in respect of the corporation at that time. For the purposes of subsections (10), (11) and (13), equity percentage has the meaning that would be assigned by subsection 95(4) of the Act if the reference in paragraph (b) of the definition equity percentage in that subsection to “any corporation” were read as a reference to “any corporation other than a corporation resident in Canada”. For the purposes of this Part, where a foreign affiliate of a corporation resident in Canada carries on an active business, it shall be deemed to carry on that business in a country other than Canada only to the extent that such business is carried on through a permanent establishment situated therein; and in Canada only to the extent that its income therefrom is subject to tax under Part I of the Act. The expression permanent establishment means for the purposes of paragraph (1)(a) and the definition earnings in subsection 5907(1) (which paragraph or definition is referred to in this paragraph as a “provision”), if the expression is given a particular meaning in a tax treaty with a country, a permanent establishment within the meaning assigned by that tax treaty with respect to the business carried on in that country by the foreign affiliate referred to in the provision, and in any other case, a fixed place of business of the affiliate, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, or if the affiliate does not have any fixed place of business, the principal place at which the affiliate’s business is conducted; and for the purposes of subdivision i of Division B of Part I of the Act, if the expression is given a particular meaning in a tax treaty with a country, a permanent establishment within the meaning assigned by that tax treaty if the person or partnership referred to in the relevant portion of that subdivision (which person or partnership is referred to in this paragraph and subsection (3) as the “person”) is a resident of that country for the purpose of that tax treaty, and in any other case, a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, or if the person does not have any fixed place of business, the principal place at which the person’s business is conducted. For the purposes of subparagraphs (2)(a)(ii) and (b)(ii), if the affiliate or the person, as the case may be, carries on business through an employee or agent, established in a particular place, who has general authority to contract for the affiliate or the person or who has a stock of merchandise owned by the affiliate or the person from which the employee or agent regularly fills orders, the affiliate or the person is deemed to have a fixed place of business at that place; if the affiliate or the person, as the case may be, is an insurance corporation, the affiliate or the person is deemed to have a fixed place of business in each country in which the affiliate or the person is registered or licensed to do business; if the affiliate or the person, as the case may be, uses substantial machinery or equipment at a particular place at any time in a taxation year, the affiliate or the person is deemed to have a fixed place of business at that place; the fact that the affiliate or the person, as the case may be, has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise at a particular place does not of itself mean that the affiliate or the person has a fixed place of business at that place; and the fact that the affiliate or the person, as the case may be, has a subsidiary controlled corporation at a place or a subsidiary controlled corporation engaged in trade or business at a place does not of itself mean that the affiliate or person has a fixed place of business at that place. active business has the meaning assigned by subsection 95(1) of the Act; (entreprise exploitée activement) controlled foreign affiliate has the meaning assigned by subsection 95(1) of the Act; (société étrangère affiliée contrôlée) designated person or partnership, in respect of a taxpayer at any time, means the taxpayer, a person or partnership that is at that time a person (other than a partnership) that does not, at that time, deal at arm’s length with the taxpayer, or a partnership a member of which is, at that time, a designated person or partnership in respect of the taxpayer under this definition, and if a foreign affiliate of the taxpayer is an original corporation that undergoes a division in respect of which subsection 15(1.5) of the Act applies, a new corporation in respect of the division; (personne ou société de personnes désignée) earnings of a foreign affiliate of a taxpayer resident in Canada for a taxation year of the affiliate from an active business means in the case of an active business carried on by it in a country, the income or profit from the active business for the year computed in accordance with the income tax law of the country in which the affiliate is resident, in any case where the affiliate is required by that law to compute that income or profit, the income or profit from the active business for the year computed in accordance with the income tax law of the country in which the business is carried on, in any case not described in subparagraph (i) where the affiliate is required by that law to compute that income or profit, and in any other case, the amount that would be the income from the active business for the year under Part I of the Act if the business were carried on in Canada, the affiliate were resident in Canada and the Act were read without reference to subsections 12.7(3), 18(4), 18.2(2), 18.4(4), 80(3) to (12), (15) and (17) and 80.01(5) to (11) and sections 80.02 to 80.04, adjusted in each case in accordance with subsections (2), (2.1), (2.2) and (2.9) and, for the purpose of this Part, to the extent that the earnings of an affiliate from an active business carried on by it cannot be attributed to a permanent establishment in any particular country, they shall be attributed to the permanent establishment in the country in which the affiliate is resident and, if the affiliate is resident in more than one country, to the permanent establishment in the country that may reasonably be regarded as the affiliate’s principal place of residence, and in any other case, the total of all amounts each of which is an amount of income that would be required under paragraph 95(2)(a) or subsection 95(2.44) of the Act to be included in computing the affiliate’s income or loss from an active business for the year if that income were computed taking into account the rules in subsection (2.03); (gains) exempt deficit of a foreign affiliate of a corporation in respect of the corporation at any time means the amount, if any, by which the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vi) of the description of B in the definition exempt surplus in this subsection the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vii) of the description of A in that definition; (déficit exonéré) exempt earnings, of a particular foreign affiliate of a particular corporation for a taxation year of the particular affiliate, means, subject to subsection (2.02), the total of all amounts each of which is the amount by which the capital gains of the particular affiliate for the year (other than capital gains included in computing the amount, at any time in the year, of the particular affiliate’s hybrid surplus, or hybrid deficit, in respect of the particular corporation) exceed the total of the amount of the taxable capital gains for the year referred to in the description of B in the definition foreign accrual property income in subsection 95(1) of the Act, the amount of the taxable capital gains for the year referred to in subparagraphs (c)(i), (e)(i) and (f)(iv) of the definition net earnings, and the portion of any income or profits tax paid to the government of a country for the year by the particular affiliate that can reasonably be regarded as tax in respect of the amount by which the capital gains of the particular affiliate for the year exceed the total of the amounts referred to in subparagraphs (i) and (ii), is the total of all amounts each of which is a particular amount that would be included, in respect of a particular business of the particular affiliate, by paragraph (c), (c.1) or (c.2) of the definition capital dividend account in subsection 89(1) of the Act in determining the particular affiliate’s capital dividend account at the end of the year if (i)the particular affiliate were the corporation referred to in that definition, the particular affiliate were the corporation referred to in that definition, (ii)the references in paragraphs (c.1) and (c.2) of that definition, and in paragraph (c) of that definition as that paragraph (c) read in its application to taxation years that ended before February 28, 2000, to “a business” were read as references to a business that(A)is not an active business (as defined in subsection 95(1) of the Act), or(B)is an active business (as defined in that subsection 95(1)) the particular affiliate’s earnings from which for the year are determined under subparagraph (a)(iii) of the definition earnings, and the references in paragraphs (c.1) and (c.2) of that definition, and in paragraph (c) of that definition as that paragraph (c) read in its application to taxation years that ended before February 28, 2000, to “a business” were read as references to a business that (A)is not an active business (as defined in subsection 95(1) of the Act), or is not an active business (as defined in subsection 95(1) of the Act), or (B)is an active business (as defined in that subsection 95(1)) the particular affiliate’s earnings from which for the year are determined under subparagraph (a)(iii) of the definition earnings, and is an active business (as defined in that subsection 95(1)) the particular affiliate’s earnings from which for the year are determined under subparagraph (a)(iii) of the definition earnings, and (iii)the particular amount did not include any amount that can reasonably be considered to have accrued while no person or partnership that carried on the particular business was a specified person or partnership (within the meaning of section 95 of the Act) in respect of the particular corporation, and the particular amount did not include any amount that can reasonably be considered to have accrued while no person or partnership that carried on the particular business was a specified person or partnership (within the meaning of section 95 of the Act) in respect of the particular corporation, and is the amount determined for A at the end of the particular affiliate’s taxation year that immediately precedes the year, where the year is the 1975 or any preceding taxation year of the particular affiliate, the total of all amounts each of which is the particular affiliate’s net earnings for the year, where the year is the 1975 or any preceding taxation year of the particular affiliate, the earnings as determined in paragraph (b) of the definition earnings in this subsection to the extent that those earnings have not been included because of paragraph (b) or deducted in determining an amount included in subparagraph (b)(i) of the definition exempt loss in this subsection, where the year is the 1976 or any subsequent taxation year of the particular affiliate and the particular affiliate is, throughout the year, resident in a designated treaty country, the particular affiliate’s net earnings for the year from an active business carried on by it in Canada or a designated treaty country, or the particular affiliate’s earnings for the year from an active business to the extent that they derive from income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(i) of the Act and that would if earned by the other foreign affiliate referred to in subclause 95(2)(a)(i)(A)(I) or (IV) of the Act, be included in computing the exempt earnings or exempt loss of the other foreign affiliate for a taxation year, if earned by the life insurance corporation referred to in subclause 95(2)(a)(i)(A)(II) of the Act and based on the assumptions contained in subclause 95(2)(a)(i)(B)(II) of the Act, be included in computing the exempt earnings or exempt loss of the life insurance corporation for a taxation year, or if earned from the active business activities carried on by the particular affiliate, or the partnership referred to in subclause 95(2)(a)(i)(A)(III) of the Act, be included in computing the exempt earnings or exempt loss of the particular affiliate for a taxation year, income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under clause 95(2)(a)(ii)(A) of the Act where the income is derived from amounts that are paid or payable by the life insurance corporation referred to in that clause and are for expenditures that would, if that life insurance corporation were a foreign affiliate of the particular corporation, be deductible in computing its exempt earnings or exempt loss for a taxation year, income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under clause 95(2)(a)(ii)(B) of the Act to the extent that the amounts paid or payable referred to in that clause are for expenditures that are deductible in computing the exempt earnings or exempt loss, for a taxation year, of the other foreign affiliate referred to in that clause, income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under clause 95(2)(a)(ii)(C) of the Act to the extent that the amounts paid or payable referred to in that clause are for expenditures that are deductible in computing its exempt earnings or exempt loss for a taxation year, income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under clause 95(2)(a)(ii)(D) of the Act if the second and third affiliates referred to in subclause 95(2)(a)(ii)(D)(IV) of the Act are each resident in a designated treaty country throughout their relevant taxation years (within the meaning assigned by that subclause), and that income would be required to be so included if paragraph (a) of the definition excluded property in subsection 95(1) of the Act were read as follows: used or held by the foreign affiliate principally for the purpose of gaining or producing income from an active business carried on by it in a designated treaty country (within the meaning assigned by subsection 5907(11) of the Income Tax Regulations), paragraph (c) of that definition excluded property were read as follows:

property all or substantially all of the income from which is, or would be, if there were income from the property, income from an active business (which, for this purpose, includes income that would be deemed to be income from an active business by paragraph (2)(a) if that paragraph were read without reference to subparagraph (v)) that is included in computing the foreign affiliate’s exempt earnings, or exempt loss, as defined in subsection 5907(1) of the Income Tax Regulations, for a taxation year, income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(iii) of the Act to the extent that the trade accounts receivable referred to in that subparagraph arose in the course of an active business carried on by the other foreign affiliate referred to in that subparagraph the income or loss from which is included in computing its exempt earnings or exempt loss for a taxation year, income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(iv) of the Act to the extent that the loans or lending assets referred to in that subparagraph arose in the course of an active business carried on by the other foreign affiliate referred to in that subparagraph the income or loss from which is included in computing its exempt earnings or exempt loss for a taxation year, income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(v) of the Act, where all or substantially all of its income, from the property described in that subparagraph, is, or would be if there were income from the property, income from an active business (which, for this purpose, includes income that would be deemed to be income from an active business by paragraph 95(2)(a) of the Act if that paragraph were read without reference to its subparagraph (v) and, for greater certainty, excludes income arising as a result of the disposition of the property) that is included in computing its exempt earnings or exempt loss for a taxation year, income that is required to be included in computing the particular affiliate’s income or loss from an active business for the year under subparagraph 95(2)(a)(vi) of the Act, where the agreement for the purchase, sale or exchange of currency referred to in that subparagraph can reasonably be considered to have been made by the particular affiliate to reduce its risk with respect to an amount of income or loss that is included in computing its exempt earnings or exempt loss for a taxation year, or an amount that is required to be included in computing the particular affiliate’s income from an active business for the year under subsection 95(2.44) of the Act if the amount is in respect of income that would, in the absence of paragraph 95(2)(a.3) of the Act, be income from an active business carried on by the particular affiliate in a designated treaty country, or where the year is the 1976 or any subsequent taxation year of the particular affiliate, each amount that is included in the particular affiliate’s exempt earnings for the year because of subsection (10), minus the portion of any income or profits tax paid to the government of a country for the year by the particular affiliate that can reasonably be regarded as tax in respect of the earnings referred to in paragraph (c) or in subparagraph (d)(ii); (gains exonérés) exempt loss, of a foreign affiliate of a corporation for a taxation year of the affiliate, means, subject to subsection (2.02), the total of all amounts each of which is the amount by which the capital losses of the affiliate for the year (other than capital losses included in computing the amount, at any time in the year, of the particular affiliate’s hybrid surplus, or hybrid deficit, in respect of the particular corporation) exceed the total of the amount of the allowable capital losses for the year referred to in the description of E in the definition foreign accrual property income in subsection 95(1) of the Act, the amount of the allowable capital losses for the year referred to in subparagraphs (c)(i), (e)(i) and (f)(iv) of the definition net loss, and the portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax refunded in respect of the amount by which the capital losses of the affiliate for the year exceed the total of the amounts referred to in subparagraphs (i) and (ii), the total of all amounts each of which is the portion of an eligible capital expenditure of the affiliate, in respect of a business of the affiliate, that was not included at any time in the affiliate’s cumulative eligible capital in respect of the business, if the business is an active business (as defined in subsection 95(1) of the Act) the affiliate’s earnings from which for the year are determined under subparagraph (a)(iii) of the definition earnings, and in computing its income for the year, the affiliate has deducted an amount described in paragraph 24(1)(a) of the Act for the year in respect of the business, where the year is the 1975 or any preceding taxation year of the affiliate, the total of all amounts each of which is the affiliate’s net loss for the year from an active business carried on by it in a country, or the amount, if any, for the year by which the amount determined under the description of D in the definition foreign accrual property income in subsection 95(1) of the Act for the year the amount determined under the description of A in the definition foreign accrual property income in subsection 95(1) of the Act for the year, where the year is the 1976 or any subsequent taxation year of the affiliate and the affiliate is, throughout the year, resident in a designated treaty country, the affiliate’s net loss for the year from an active business carried on by it in Canada or a designated treaty country, or the affiliate’s loss for the year from an active business to the extent determined under subparagraph (d)(ii) of the definition exempt earnings in respect of the year with any modifications that the circumstances require the portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax that was refunded in respect of the amount determined under clause (A), or where the year is the 1976 or any subsequent taxation year of the affiliate, each amount that is included in the affiliate’s exempt loss for the year because of subsection (10); (perte exonérée) exempt surplus, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the latest of the following times and that ends with the particular time: the first day of the taxation year of the subject affiliate in which it last became a foreign affiliate of the corporation, the last time for which the opening exempt surplus of the subject affiliate in respect of the corporation was required to be determined under section 5905, and the last time for which the opening exempt deficit of the subject affiliate in respect of the corporation was required to be determined under section 5905 is the total of all amounts, in respect of the period, each of which is (i)the opening exempt surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), the opening exempt surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), (ii)the exempt earnings of the subject affiliate for any of its taxation years ending in the period, the exempt earnings of the subject affiliate for any of its taxation years ending in the period, (iii)the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a) to have been paid out of the payer affiliate’s exempt surplus in respect of the corporation to the extent that it(A)does not give rise to the application of subsection 12.7(3) of the Act in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and(B)is excluded in computing the subject affiliate’s foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act, the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a) to have been paid out of the payer affiliate’s exempt surplus in respect of the corporation to the extent that it (A)does not give rise to the application of subsection 12.7(3) of the Act in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and does not give rise to the application of subsection 12.7(3) of the Act in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and (B)is excluded in computing the subject affiliate’s foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act, is excluded in computing the subject affiliate’s foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act, (iv)the portion of any income or profits tax refunded by or the amount of a tax credit paid by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded or paid in respect of any amount referred to in subparagraph (iii) and that was not deducted in determining any amount referred to in subparagraph (iii) of the description of B, the portion of any income or profits tax refunded by or the amount of a tax credit paid by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded or paid in respect of any amount referred to in subparagraph (iii) and that was not deducted in determining any amount referred to in subparagraph (iii) of the description of B, (v)the portion of any taxable dividend received in the period and before the particular time by the subject affiliate that would, if the dividend were received by the corporation, be deductible by it under section 112 of the Act, the portion of any taxable dividend received in the period and before the particular time by the subject affiliate that would, if the dividend were received by the corporation, be deductible by it under section 112 of the Act, (vi)an amount added to the exempt surplus of the subject affiliate or deducted from its exempt deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2), an amount added to the exempt surplus of the subject affiliate or deducted from its exempt deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2), (vi.1)each amount that is required, under section 5905, to be included under this subparagraph in the period and before the particular time, or each amount that is required, under section 5905, to be included under this subparagraph in the period and before the particular time, or (vii)an amount added, in the period and before the particular time, to the exempt surplus of the subject affiliate under paragraph (7.1)(d) (as that paragraph applied to dividends paid on or before August 19, 2011), and an amount added, in the period and before the particular time, to the exempt surplus of the subject affiliate under paragraph (7.1)(d) (as that paragraph applied to dividends paid on or before August 19, 2011), and is the total of those of the following amounts that apply in respect of the period: (i)the opening exempt deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c), the opening exempt deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c), (ii)the exempt loss of the subject affiliate for any of its taxation years ending in the period, the exempt loss of the subject affiliate for any of its taxation years ending in the period, (iii)the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of any amount referred to in subparagraph (iii), (iv) or (v) of the description of A, the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of any amount referred to in subparagraph (iii), (iv) or (v) of the description of A, (iv)the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed by paragraph 5901(1)(a) to have been paid out of the subject affiliate’s exempt surplus in respect of the corporation, the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed by paragraph 5901(1)(a) to have been paid out of the subject affiliate’s exempt surplus in respect of the corporation, (v)each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(d)(xii) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, or each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(d)(xii) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, or (vi)an amount, in the period and before the particular time, deducted from the exempt surplus of the subject affiliate or added to its exempt deficit under subsection (1.092), (1.1) or (1.2); (surplus exonéré) an amount, in the period and before the particular time, deducted from the exempt surplus of the subject affiliate or added to its exempt deficit under subsection (1.092), (1.1) or (1.2); (surplus exonéré) hybrid deficit, of a foreign affiliate of a corporation in respect of the corporation at any time, means the amount, if any, by which the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vii) of the description of B in the definition hybrid surplus the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (v) of the description of A in that definition; (déficit hybride) hybrid surplus, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the latest of the following times and that ends with the particular time: the last time for which the opening hybrid surplus of the subject affiliate in respect of the corporation was required to be determined under section 5905, and the last time for which the opening hybrid deficit of the subject affiliate in respect of the corporation was required to be determined under section 5905 (i)the opening hybrid surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), the opening hybrid surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), (ii)the amount of a capital gain (except to the extent that the taxable portion of the capital gain is included under the description of B in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the subject affiliate), for a taxation year, of the subject affiliate, or of a partnership of which the subject affiliate is a member (to the extent that the capital gain is reasonably attributable to the subject affiliate), in respect of a disposition, at any time in the period, of(A)a share of the capital stock of another foreign affiliate of the corporation,(B)a partnership interest, or(C)a property, that is an excluded property of the subject affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related to(I)an amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, or(II)an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, the amount of a capital gain (except to the extent that the taxable portion of the capital gain is included under the description of B in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the subject affiliate), for a taxation year, of the subject affiliate, or of a partnership of which the subject affiliate is a member (to the extent that the capital gain is reasonably attributable to the subject affiliate), in respect of a disposition, at any time in the period, of (A)a share of the capital stock of another foreign affiliate of the corporation, a share of the capital stock of another foreign affiliate of the corporation, (B)a partnership interest, or a partnership interest, or (C)a property, that is an excluded property of the subject affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related to(I)an amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, or(II)an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, a property, that is an excluded property of the subject affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related to (I)an amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, or an amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, or (II)an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under this subparagraph or subparagraph (ii) of the description of B, as the case may be, (iii)the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of an amount referred to in subparagraph (ii) or (iii) of the description of B, the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of an amount referred to in subparagraph (ii) or (iii) of the description of B, (iv)the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation to the extent that it(A)does not give rise to the application of subsection 12.7(3) of the Act in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and(B)is excluded in computing the subject affiliate’s foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act, or the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation to the extent that it (B)is excluded in computing the subject affiliate’s foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act, or is excluded in computing the subject affiliate’s foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act, or (v)an amount added to the hybrid surplus of the subject affiliate or deducted from its hybrid deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2), and an amount added to the hybrid surplus of the subject affiliate or deducted from its hybrid deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2), and (i)the opening hybrid deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c), the opening hybrid deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c), (ii)the amount of a capital loss (except to the extent that the allowable portion of the capital loss is included under paragraph (a) of the description of E in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the subject affiliate), for a taxation year, of the subject affiliate, or of a partnership of which the subject affiliate is a member (to the extent that the capital loss is reasonably attributable to the subject affiliate), in respect of a disposition, at any time in the period, of(A)a share of the capital stock of another foreign affiliate of the corporation,(B)a partnership interest, or(C)a property, that is an excluded property of the subject affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related to(I)an amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, or(II)an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, the amount of a capital loss (except to the extent that the allowable portion of the capital loss is included under paragraph (a) of the description of E in the definition foreign accrual property income in subsection 95(1) of the Act in respect of the subject affiliate), for a taxation year, of the subject affiliate, or of a partnership of which the subject affiliate is a member (to the extent that the capital loss is reasonably attributable to the subject affiliate), in respect of a disposition, at any time in the period, of (C)a property, that is an excluded property of the subject affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related to(I)an amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, or(II)an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, (I)an amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, or an amount that was receivable under an agreement that relates to the sale of a property that is referred to in clause (A) or (B) the capital gain or capital loss from the sale of which is included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, or (II)an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate that is referred to in clause (A) or (B) any capital gain or capital loss from the disposition of which would, if that excluded property were disposed of, be included under subparagraph (ii) of the description of A or this subparagraph, as the case may be, (iii)the amount of a capital loss for a taxation year of the subject affiliate that would arise in respect of a disposition, at any time in the period, of a share of the capital stock of another foreign affiliate of the corporation in the course of the liquidation and dissolution of that other affiliate if subclause 95(2)(e)(iv)(A)(II) of the Act were read without reference to its sub-subclause 1 and section 93 of the Act were read without reference to its subsection (4), the amount of a capital loss for a taxation year of the subject affiliate that would arise in respect of a disposition, at any time in the period, of a share of the capital stock of another foreign affiliate of the corporation in the course of the liquidation and dissolution of that other affiliate if subclause 95(2)(e)(iv)(A)(II) of the Act were read without reference to its sub-subclause 1 and section 93 of the Act were read without reference to its subsection (4), (iv)the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of an amount referred to in subparagraph (ii) or (iv) of the description of A, the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of an amount referred to in subparagraph (ii) or (iv) of the description of A, (v)the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(a.1) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(b) to have been paid out of the subject affiliate’s hybrid surplus in respect of the corporation, the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(a.1) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(b) to have been paid out of the subject affiliate’s hybrid surplus in respect of the corporation, (vi)each amount that is required under section 5902 to be included under this subparagraph in the period and before the particular time, or each amount that is required under section 5902 to be included under this subparagraph in the period and before the particular time, or (vii)an amount deducted from the hybrid surplus of the subject affiliate or added to its hybrid deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (surplus hybride) an amount deducted from the hybrid surplus of the subject affiliate or added to its hybrid deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (surplus hybride) hybrid underlying tax, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the later of the following times and that ends with the particular time: the first day of the taxation year of the subject affiliate in which it last became a foreign affiliate of the corporation, and the last time for which the opening hybrid underlying tax of the subject affiliate in respect of the corporation was required to be determined under section 5905 (i)the opening hybrid underlying tax, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), the opening hybrid underlying tax, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), (ii)the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of any amount referred to in subparagraph (ii) or (iv) of the description of A in the definition hybrid surplus, the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of any amount referred to in subparagraph (ii) or (iv) of the description of A in the definition hybrid surplus, (iii)the total of all amounts each of which is an amount determined by the formulaC × D ÷ EwhereCis the amount that was prescribed under paragraph 5900(1)(c.1) to have been the foreign tax applicable to the portion (referred to in this subparagraph as the “relevant portion”) of a dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, a dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation,Dis the amount included under subparagraph (iv) of the description of A in the definition hybrid surplus, in respect of the relevant portion of the dividend received, in computing the subject affiliate’s hybrid surplus, andEis the relevant portion of the dividend received, or the total of all amounts each of which is an amount determined by the formula is the amount that was prescribed under paragraph 5900(1)(c.1) to have been the foreign tax applicable to the portion (referred to in this subparagraph as the “relevant portion”) of a dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, a dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation, is the amount included under subparagraph (iv) of the description of A in the definition hybrid surplus, in respect of the relevant portion of the dividend received, in computing the subject affiliate’s hybrid surplus, and is the relevant portion of the dividend received, or (iv)the amount by which the subject affiliate’s hybrid underlying tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1) or (1.2), the amount by which the subject affiliate’s hybrid underlying tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1) or (1.2), (i)the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of an amount referred to in subparagraph (ii) or (iii) of the description of B in the definition hybrid surplus, the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of an amount referred to in subparagraph (ii) or (iii) of the description of B in the definition hybrid surplus, (ii)the hybrid underlying tax applicable to any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(a.1) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(b) to have been paid out of the subject affiliate’s hybrid surplus in respect of the corporation before that time, the hybrid underlying tax applicable to any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(a.1) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(b) to have been paid out of the subject affiliate’s hybrid surplus in respect of the corporation before that time, (iii)each amount that is required under section 5902 to be included under this subparagraph in the period and before the particular time, or (iv)the amount by which the subject affiliate’s hybrid underlying tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (montant intrinsèque d’impôt hybride) the amount by which the subject affiliate’s hybrid underlying tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (montant intrinsèque d’impôt hybride) hybrid underlying tax applicable, in respect of a corporation to a whole dividend paid at any time on the shares of any class of the capital stock of a foreign affiliate of the corporation by the affiliate, means the proportion of the hybrid underlying tax of the affiliate at that time in respect of the corporation that the portion of the whole dividend deemed to have been paid out of the affiliate’s hybrid surplus in respect of the corporation the affiliate’s hybrid surplus at that time in respect of the corporation; (montant intrinsèque d’impôt hybride applicable) loss, of a foreign affiliate of a taxpayer resident in Canada for a taxation year of the affiliate from an active business, means in the case of an active business carried on by it in a country, the amount of its loss for the year from the active business carried on in the country computed by applying the provisions of paragraph (a) of the definition earnings respecting the computation of earnings from that active business carried on in that country, with any modifications that the circumstances require, and in any other case, the total of all amounts each of which is an amount of a loss that would be required under paragraph 95(2)(a) of the Act to be included in computing the affiliate’s income or loss from an active business for the year if that loss were computed taking into account the rules in subsection (2.03); (perte) net earnings of a foreign affiliate of a corporation for a taxation year of the affiliate from an active business carried on by it in a country is the amount of its earnings for the year from that active business carried on in that country minus the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax in respect of those earnings, in respect of foreign accrual property income is the amount that would be its foreign accrual property income for the year, if the formula in the definition foreign accrual property income in subsection 95(1) of the Act were read without reference to F and F.1 in that formula and the amount determined for E in that formula were the amount determined under paragraph (a) of the description of E in that formula and the Act were read without regard to its clause 95(2)(f.11)(ii)(D), minus the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax in respect of that income, from dispositions of property used or held by it principally for the purpose of gaining or producing income from an active business carried on by it in a country that is not a designated treaty country (other than Canada) is the amount, if any, by which the portion of the affiliate’s taxable capital gains for the year from those dispositions that can reasonably be considered to have accrued after November 12, 1981 the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax in respect of the amount determined under subparagraph (i), [Repealed, 2013, c. 34, s. 85] from the disposition of a property that is an excluded property of the affiliate that is described in paragraph (c) of the definition excluded property in subsection 95(1) of the Act but that would not be an excluded property of the affiliate if that paragraph were read in the manner described in sub-subclause (d)(ii)(E)(II)2 of the definition exempt earnings is the amount, if any, by which the portion of the affiliate’s taxable capital gain for the year from the disposition of the property that accrued after its 1975 taxation year the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax that was paid in respect of the amount determined under subparagraph (i), and from a particular disposition of a property, that is an excluded property of the affiliate because of paragraph (c.1) of the definition excluded property in subsection 95(1) of the Act, that related to an amount that was receivable under an agreement that relates to the sale of a particular property the taxable capital gain or allowable capital loss from the sale of which is included under any of paragraphs (c) to (e) of this definition or of the definition net loss, as the case may be, an amount that was receivable and was a property that was described in paragraph (c) of that definition excluded property but that would not have been an excluded property of the affiliate if that paragraph were read in the manner described in sub-subclause (d)(ii)(E)(II)2 of the definition exempt earnings, or an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate any taxable capital gain or allowable capital loss from the disposition of which would, if that excluded property were disposed of, be included under any of paragraphs (c) to (e) of this definition or of the definition net loss, as the case may be, the portion of the affiliate’s taxable capital gain for the year from the particular disposition that accrued after its 1975 taxation year the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax that was paid for the year in respect of the amount determined under subparagraph (iv); (gains nets) net loss of a foreign affiliate of a corporation for a taxation year of the affiliate from an active business carried on by it in a country is the amount of its loss for the year from that active business carried on in that country minus the portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax refunded in respect of that loss, in respect of foreign accrual property income is the amount, if any, by which the amount that would be determined for D in the formula in the definition foreign accrual property income in subsection 95(1) of the Act for the year, if the Act were read without regard to its clauses 95(2)(f.11)(ii)(D) and (E), the amount determined under paragraph (a) of the description of E in that formula for the year, the amount determined for G in that formula for the year, and the amount determined for H in that formula for the year the total of the amounts determined under the descriptions of A, A.1, A.2, B and C in the definition foreign accrual property income in subsection 95(1) of the Act for the year the portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax refunded in respect of the amount determined under subparagraph (i), the portion of the affiliate’s allowable capital losses for the year from those dispositions that can reasonably be considered to have accrued after November 12, 1981 from the disposition of a property, that is an excluded property of the affiliate that is described in paragraph (c) of the definition excluded property in subsection 95(1) of the Act but that would not be an excluded property of the affiliate if that paragraph were read in the manner described in sub-subclause (d)(ii)(E)(II)2 of the definition exempt earnings is the amount, if any, by which the portion of the affiliate’s allowable capital loss for the year from the disposition of the property that accrued after its 1975 taxation year the portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax that was refunded in respect of the amount determined under subparagraph (i), and an amount that was receivable under an agreement that relates to the sale of a particular property the taxable capital gain or allowable capital loss from the sale of which is included under any of paragraphs (c) to (e) of this definition or of the definition net earnings, as the case may be, an amount payable, or an amount of indebtedness, described in clause (c.1)(ii)(B) of that definition excluded property arising in respect of the acquisition of an excluded property of the affiliate any taxable capital gain or allowable capital loss from the disposition of which would, if that excluded property were disposed of, be included under any of paragraphs (c) to (e) of this definition or of the definition net earnings, as the case may be, the portion of the affiliate’s allowable capital loss for the year from the particular disposition that accrued after its 1975 taxation year the portion of any income or profits tax refunded by the government of a country for the year to the affiliate that can reasonably be regarded as tax that was refunded in respect of the amount determined under subparagraph (iv);

(perte nette) net surplus of a foreign affiliate of a corporation resident in Canada in respect of the corporation is, at any particular time, if the affiliate has no exempt deficit, no hybrid deficit and no taxable deficit, the amount that is the total of its exempt surplus, hybrid surplus and taxable surplus in respect of the corporation, if the affiliate has no exempt deficit but has a hybrid deficit and a taxable deficit, the amount, if any, by which its exempt surplus exceeds the total of its hybrid deficit and taxable deficit in respect of the corporation, if the affiliate has no exempt deficit and no hybrid deficit but has a taxable deficit, the amount, if any, by which the total of its exempt surplus and hybrid surplus exceeds its taxable deficit in respect of the corporation, if the affiliate has no exempt deficit and no taxable deficit but has a hybrid deficit, the amount, if any, by which the total of its exempt surplus and taxable surplus exceeds its hybrid deficit in respect of the corporation, if the affiliate has an exempt deficit but no hybrid deficit or taxable deficit, the amount, if any, by which the total of its hybrid surplus and taxable surplus exceeds its exempt deficit in respect of the corporation, if the affiliate has an exempt deficit and a hybrid deficit but no taxable deficit, the amount, if any, by which its taxable surplus exceeds the total of its exempt deficit and hybrid deficit in respect of the corporation, or if the affiliate has an exempt deficit and a taxable deficit but no hybrid deficit, the amount, if any, by which its hybrid surplus exceeds the total of its exempt deficit and taxable deficit in respect of the corporation, as the case may be, at that time; (surplus net) taxable deficit of a foreign affiliate of a corporation in respect of the corporation at any time is the amount, if any, by which the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vi) of the description of B in the definition taxable surplus in this subsection the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (v) of the description of A in that definition; (déficit imposable) taxable earnings of a foreign affiliate of a corporation for a taxation year of the affiliate is where the year is the 1975 or any preceding taxation year of the affiliate, nil, and in any other case, the total of all amounts each of which is the affiliate’s net earnings for the year from an active business carried on by it in a country, the affiliate’s net earnings for the year in respect of its foreign accrual property income, the affiliate’s earnings for the year as determined under paragraph (b) of the definition earnings minus the portion of any income or profits tax paid to the government of a country for a year by the affiliate that can reasonably be regarded as tax in respect of those earnings, to the extent not included under subparagraph (ii), the affiliate’s net earnings for the year determined under paragraphs (c) to (f) of the definition net earnings, or the total of all amounts each of which is an amount required by paragraph (2.02)(a) to be included under this definition for the year the total of all amounts each of which is an amount required by paragraph (2.02)(b) to be deducted under this definition for the year, [Repealed, 2013, c. 34, s. 46] but does not include any amount included in the affiliate’s exempt earnings for the year; (gains imposables) taxable loss of a foreign affiliate of a corporation for a taxation year of the affiliate is the affiliate’s net loss for the year from an active business carried on by it in a country, the affiliate’s net loss for the year in respect of foreign accrual property income, the affiliate’s loss for the year as determined under paragraph (b) of the definition loss minus the portion of any income or profits tax refunded by the government of a country for a year to the affiliate that can reasonably be regarded as tax refunded in respect of that loss, or to the extent not included under subparagraph (ii), the affiliate’s net loss for the year determined under paragraphs (c) to (f) of the definition net loss, but does not include any amount included in the affiliate’s exempt loss for the year; (perte imposable) taxable surplus, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the latest of the following times and that ends with the particular time: the last time for which the opening taxable surplus of the subject affiliate in respect of the corporation was required to be determined under section 5905, and the last time for which the opening taxable deficit of the subject affiliate in respect of the corporation was required to be determined under section 5905 (i)the opening taxable surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), the opening taxable surplus, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), (ii)the taxable earnings of the subject affiliate for any of its taxation years ending in the period, the taxable earnings of the subject affiliate for any of its taxation years ending in the period, (iii)the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(b) to have been paid out of the payer affiliate’s taxable surplus in respect of the corporation to the extent that it(A)does not give rise to the application of subsection 12.7(3) of the Act in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and(B)is excluded in computing the subject affiliate’s foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act, the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(b) to have been paid out of the payer affiliate’s taxable surplus in respect of the corporation to the extent that it (iv)an amount added to the taxable surplus of the subject affiliate or deducted from its taxable deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2), an amount added to the taxable surplus of the subject affiliate or deducted from its taxable deficit in the period and before the particular time under subsection (1.092), (1.1) or (1.2), (iv.1)each amount that is required under section 5905 to be included under this subparagraph in the period and before the particular time, or each amount that is required under section 5905 to be included under this subparagraph in the period and before the particular time, or (v)an amount added, in the period and before the particular time, to the subject affiliate’s taxable surplus under paragraph (7.1)(e) (as that paragraph applied to dividends paid on or before August 19, 2011), and an amount added, in the period and before the particular time, to the subject affiliate’s taxable surplus under paragraph (7.1)(e) (as that paragraph applied to dividends paid on or before August 19, 2011), and (i)the opening taxable deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c), the opening taxable deficit, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (c), (ii)the taxable loss of the subject affiliate for any of its taxation years ending in the period, the taxable loss of the subject affiliate for any of its taxation years ending in the period, (iii)the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of that portion of a dividend referred to in subparagraph (iii) of the description of A, the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of that portion of a dividend referred to in subparagraph (iii) of the description of A, (iv)the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(b) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(a.1) to have been paid out of the subject affiliate’s taxable surplus in respect of the corporation, the portion of any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(b) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(a.1) to have been paid out of the subject affiliate’s taxable surplus in respect of the corporation, (v)each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(k)(xi) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, or each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(k)(xi) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, or (vi)an amount, in the period and before the particular time, deducted from the taxable surplus of the subject affiliate or added to its taxable deficit under subsection (1.092), (1.1) or (1.2); (surplus imposable) an amount, in the period and before the particular time, deducted from the taxable surplus of the subject affiliate or added to its taxable deficit under subsection (1.092), (1.1) or (1.2); (surplus imposable) underlying foreign tax, of a foreign affiliate (in this definition referred to as the “subject affiliate”) of a corporation in respect of the corporation, at any particular time, means the amount determined by the following formula in respect of the period that begins with the later of the following times and that ends with the particular time: the last time for which the opening underlying foreign tax of the subject affiliate in respect of the corporation was required to be determined under section 5905 is, subject to subsection (1.03), the total of all amounts, in respect of the period, each of which is (i)the opening underlying foreign tax, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), the opening underlying foreign tax, if any, of the subject affiliate in respect of the corporation as determined under section 5905, at the time established in paragraph (b), (ii)the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of the taxable earnings, including for greater certainty any amounts included because of paragraph (2.02)(a) in computing the taxable earnings, of the affiliate for a taxation year ending in the period, the portion of any income or profits tax paid to the government of a country by the subject affiliate that can reasonably be regarded as having been paid in respect of the taxable earnings, including for greater certainty any amounts included because of paragraph (2.02)(a) in computing the taxable earnings, of the affiliate for a taxation year ending in the period, (iii)the portion of any income or profits tax referred to in subparagraph (iii) of the description of B in the definition taxable surplus in this subsection paid by the subject affiliate in respect of a dividend received from any other foreign affiliate of the corporation, the portion of any income or profits tax referred to in subparagraph (iii) of the description of B in the definition taxable surplus in this subsection paid by the subject affiliate in respect of a dividend received from any other foreign affiliate of the corporation, (iv)the total of all amounts each of which is an amount determined by the formulaC × D ÷ EwhereCis the amount that was prescribed under paragraph 5900(1)(d) to have been the foreign tax applicable to the portion (referred to in this subparagraph as the “relevant portion”) of a dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, a dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(b) to have been paid out of the payer affiliate’s taxable surplus in respect of the corporation,Dis the amount included under subparagraph (iii) of the description of A in the definition taxable surplus, in respect of the relevant portion of the dividend received, in computing the subject affiliate’s taxable surplus, andEis the relevant portion of the dividend received, or is the amount that was prescribed under paragraph 5900(1)(d) to have been the foreign tax applicable to the portion (referred to in this subparagraph as the “relevant portion”) of a dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, a dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(b) to have been paid out of the payer affiliate’s taxable surplus in respect of the corporation, is the amount included under subparagraph (iii) of the description of A in the definition taxable surplus, in respect of the relevant portion of the dividend received, in computing the subject affiliate’s taxable surplus, and (v)the amount by which the subject affiliate’s underlying foreign tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1) or (1.2), the amount by which the subject affiliate’s underlying foreign tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1) or (1.2), (i)the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of the taxable loss of the subject affiliate for a taxation year ending in the period, the portion of any income or profits tax refunded by the government of a country to the subject affiliate that can reasonably be regarded as having been refunded in respect of the taxable loss of the subject affiliate for a taxation year ending in the period, (ii)the underlying foreign tax applicable to any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(b) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(a.1) to have been paid out of the subject affiliate’s taxable surplus in respect of the corporation before that time, the underlying foreign tax applicable to any whole dividend paid by the subject affiliate in the period and before the particular time deemed under paragraph 5901(1)(b) or, if subsection 5901(1.1) applied to the whole dividend, paragraph 5901(1)(a.1) to have been paid out of the subject affiliate’s taxable surplus in respect of the corporation before that time, (iii)each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(l)(x) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, or each amount that is required under section 5902 or 5905 to be included under this subparagraph, or subparagraph (1)(l)(x) as it applies to taxation years that end before February 22, 1994, in the period and before the particular time, or (iv)the amount by which the subject affiliate’s underlying foreign tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (montant intrinsèque d’impôt étranger) the amount by which the subject affiliate’s underlying foreign tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1) or (1.2); (montant intrinsèque d’impôt étranger) underlying foreign tax applicable in respect of a corporation to a whole dividend paid at any time on the shares of any class of the capital stock of a foreign affiliate of the corporation by the affiliate is the total of the proportion of the underlying foreign tax of the affiliate at that time in respect of the corporation that the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation the affiliate’s taxable surplus at that time in respect of the corporation, and any additional amount in respect of the whole dividend that the corporation claims in its return of income under Part I of the Act in respect of the whole dividend, not exceeding the amount that is the lesser of the amount by which the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation exceeds the amount determined under paragraph (a), and the amount by which the affiliate’s underlying foreign tax in respect of the corporation immediately before the whole dividend was paid exceeds the amount determined under paragraph (a); (montant intrinsèque d’impôt étranger applicable) whole dividend paid at any time on the shares of a class of the capital stock of a foreign affiliate of a taxpayer resident in Canada is the total of all amounts each of which is the dividend paid at that time on a share of that class except that where a dividend is paid at the same time on shares of more than one class of the capital stock of an affiliate, for the purpose only of section 5900, the whole dividend referred to in section 5901 paid at that time on the shares of a class of the capital stock of the affiliate is deemed to be the total of all amounts each of which is the dividend paid at that time on a share of the capital stock of the affiliate, where a whole dividend is deemed by subparagraph 5902(1)(a)(ii) to have been paid at the same time on shares of more than one class of an affiliate’s capital stock, for the purpose only of that subparagraph, the whole dividend deemed to have been paid at that time on the shares of a class of the affiliate’s capital stock is deemed to be the total of all amounts each of which is a whole dividend deemed to have been paid at that time on the shares of a class of the affiliate’s capital stock, and where more than one whole dividend is deemed by paragraph 5900(2)(b) to have been paid at the same time on shares of a class of the capital stock of an affiliate, for the purposes only of paragraph 5900(1)(d) and the definitions underlying foreign tax and underlying foreign tax applicable in this subsection, the whole dividend deemed to have been paid at that time on the shares of a class of the capital stock of the affiliate is deemed to be the total of all amounts each of which is a whole dividend deemed to have been paid at that time on the shares of a class of the capital stock of the affiliate and all of that whole dividend shall be deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation. (dividende global) For the purposes of section 113 of the Act, exempt surplus, hybrid surplus and taxable surplus have the meanings assigned by subsection (1). For the purposes of paragraph (d) of the definition exempt earnings and paragraph (c) of the definition exempt loss in subsection (1), if a foreign affiliate of a corporation becomes a foreign affiliate of the corporation in a taxation year of the affiliate, otherwise than as a result of a transaction between persons that do not deal with each other at arm’s length, and the affiliate is resident in a designated treaty country at the end of the year, the affiliate is deemed to be so resident throughout the year. For the purposes of the description of A in the definition underlying foreign tax in subsection (1), income or profits tax paid in respect of the taxable earnings of a particular foreign affiliate of a particular corporation or in respect of a dividend received by the particular affiliate from another foreign affiliate of the particular corporation, and amounts by which the underlying foreign tax of the particular affiliate or any other foreign affiliate of the particular corporation is required under any of subsections (1.092), (1.1) and (1.2) to be increased, is not to include any income or profits tax paid, or amounts by which the underlying foreign tax would otherwise be so required to be increased, as the case may be, in respect of the foreign accrual property income of the particular affiliate for a taxation year of the particular affiliate if, at any time in the year, a specified owner in respect of the particular corporation is considered, under the income tax laws (referred to in subsection (1.07) as the “relevant foreign tax law”) of any country other than Canada under the laws of which any income of another corporation — that is, at any time in the year, a pertinent person or partnership in respect of the particular affiliate — is subject to income taxation, to own less than all of the shares of the capital stock of the other corporation that are considered to be owned by the specified owner for the purposes of the Act; or under the income tax laws (referred to in subsection (1.08) as the “relevant foreign tax law”) of any country other than Canada under the laws of which any income of a particular partnership — that is, at any time in the year, a pertinent person or partnership in respect of the particular affiliate — is subject to income taxation, to have a lesser direct or indirect share of the income of the particular partnership than the specified owner is considered to have for the purposes of the Act. For the purposes of subsections (1.03) and (1.07), a specified owner, at any time, in respect of a corporation means the corporation or a person or partnership that is, at that time, a partnership of which the corporation is a member; a foreign affiliate of the corporation; a partnership a member of which is a foreign affiliate of the corporation; or a person or partnership referred to in any of subparagraphs (1.06)(a)(i) to (iii). For the purposes of this subsection and subsection (1.03), a pertinent person or partnership, at any time, in respect of a particular foreign affiliate of a corporation means the particular affiliate or a person or partnership that is, at that time, another foreign affiliate of the corporation in which the particular affiliate has an equity percentage, or that has an equity percentage in the particular affiliate; a partnership a member of which is at that time a pertinent person or partnership in respect of the particular affiliate under this subsection; or a person or partnership referred to in any of subparagraphs (1.06)(b)(i) to (iii). For the purposes of subsections (1.04) and (1.05), if, as part of a series of transactions or events that includes the earning of the foreign accrual property income referred to in subsection (1.03), a foreign affiliate (referred to in this subsection as the “funding affiliate”) of the corporation or of a person (referred to in this subsection as the “related person”) resident in Canada that is related to the corporation, or a partnership (referred to in this subsection as the “funding partnership”) of which such an affiliate is a member, directly or indirectly provided funding to the particular affiliate, or a partnership of which the particular affiliate is a member, otherwise than by way of loans or other indebtedness that are subject to terms or conditions made or imposed, in respect of the loans or other indebtedness, that do not differ from those that would be made or imposed between persons dealing at arm’s length or by way of an acquisition of shares of the capital stock of any corporation, then if the funding affiliate is, or the funding partnership has a member that is, a foreign affiliate of the related person, the following persons and partnerships are deemed, at all times during which the foreign accrual property income is earned by the particular affiliate, to be specified owners in respect of the corporation: the related person, each foreign affiliate of the related person, and each partnership a member of which is referred to in subparagraph (i) or (ii); and the following persons and partnerships are deemed, at all times during which the foreign accrual property income is earned by the particular affiliate, to be pertinent persons or partnerships in respect of the particular affiliate: the funding affiliate or the funding partnership, a non-resident corporation in which the funding affiliate has an equity percentage, or that has an equity percentage in the funding affiliate, and a partnership a member of which is a person or partnership referred to in subparagraph (i) or (ii). For the purposes of paragraph (1.03)(a), a specified owner in respect of the particular corporation is not to be considered, under the relevant foreign tax law, to own less than all of the shares of the capital stock of another corporation that are considered to be owned for the purposes of the Act solely because the specified owner or the other corporation is not treated as a corporation under the relevant foreign tax law. For the purposes of paragraph (1.03)(b), a member of a partnership is not to be considered to have a lesser direct or indirect share of the income of the partnership under the relevant foreign tax law than for the purposes of the Act solely because of one or more of the following: a difference between the relevant foreign tax law and the Act in the manner of computing the income of the partnership, or allocating the income of the partnership because of the admission to, or withdrawal from, the partnership of any of its members; the treatment of the partnership as a corporation under the relevant foreign tax law; or the fact that the member is not treated as a corporation under the relevant foreign tax law. For the purposes of subsection (1.03), if a specified owner owns, for the purposes of the Act, shares of the capital stock of a corporation and the dividends, or similar amounts, in respect of those shares are treated under the income tax laws of any country other than Canada under the laws of which any income of the corporation is subject to income taxation as interest or another form of deductible payment, the specified owner is deemed to be considered, under those tax laws, to own less than all of the shares of the capital stock of the corporation that are considered to be owned by the specified owner for the purposes of the Act. Subsection (1.092) applies in respect of income or profits tax paid by, or refunded to, a foreign affiliate (in this subsection and subsection (1.092) referred to as the “shareholder affiliate”) of a taxpayer for a taxation year of the shareholder affiliate in respect of its income or profits, or loss, as the case may be, and the income or profits, or loss, as the case may be, of another foreign affiliate (in this subsection and subsection (1.092) referred to as the “transparent affiliate”) of the taxpayer if the shareholder affiliate has an equity percentage in the transparent affiliate; the income or profits tax is paid to, or refunded by, a government of a country other than Canada; and under the income tax laws of the country referred to in paragraph (b), the shareholder affiliate, and not the transparent affiliate, is liable for that tax payable to, or entitled to that refund from, a government of that country for that year (otherwise than solely because the shareholder affiliate is part of a group of corporations that determines its liabilities for income or profits tax payable to the government of that country on a consolidated or combined basis). If this subsection applies in respect of income or profits tax paid by, or refunded to, a shareholder affiliate for a taxation year in respect of the shareholder affiliate, any such income or profits tax paid by the shareholder affiliate for the year is deemed not to have been paid and any such refund to the shareholder affiliate of income or profits tax otherwise payable by it for the year is deemed not to have been made, any such income or profits tax that would have been payable by the shareholder affiliate for the year if the shareholder affiliate had no other taxation year and had not been liable for income or profits tax in respect of income or profits of the transparent affiliate is deemed to have been paid for the year, to the extent that any such income or profits tax that would otherwise have been payable by the shareholder affiliate for the year on behalf of the shareholder affiliate and the transparent affiliate is reduced because of any loss of the shareholder affiliate for the year or any previous taxation year, the amount of such reduction is deemed to have been received by the shareholder affiliate as a refund for the year of the loss of income or profits tax in respect of the loss, and the shareholder affiliate receives, in respect of a loss of the shareholder affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the shareholder affiliate on behalf of the shareholder affiliate and the transparent affiliate, the amount of such refund is deemed to have been received by the shareholder affiliate as a refund for the year of the loss of income or profits tax in respect of the loss, any such income or profits tax that would have been payable by the transparent affiliate for the year if the transparent affiliate had no other taxation year, had no income or profits other than those that are included in computing the income or profits of the shareholder affiliate under the income tax laws referred to in paragraph (1.091)(c) and had been liable, and no other person had been liable, for income or profits tax in respect of income or profits of the transparent affiliate is, at the end of the year, to the extent that such income or profits tax would otherwise have reduced the net earnings included in the exempt earnings of the transparent affiliate, to be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the shareholder affiliate, to the extent that such income or profits tax would otherwise have reduced the hybrid surplus or increased the hybrid deficit of the transparent affiliate, to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the shareholder affiliate, and to be added to the hybrid underlying tax of the shareholder affiliate, and to the extent that such income or profits tax would otherwise have reduced the net earnings included in the taxable earnings of the transparent affiliate, to be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the shareholder affiliate, and to be added to the underlying foreign tax of the shareholder affiliate, and to the extent that the income or profits tax that would otherwise have been payable by the shareholder affiliate for the year on behalf of the shareholder affiliate and the transparent affiliate is reduced because of a loss of the transparent affiliate for the year or a previous taxation year, or to the extent that the shareholder affiliate receives, in respect of a loss of the transparent affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the shareholder affiliate on behalf of the shareholder affiliate and the transparent affiliate, the amount of such reduction or refund, as the case may be, is, at the end of the year of the loss, to the extent that such loss reduces the exempt surplus or increases the exempt deficit of the transparent affiliate, to be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the shareholder affiliate, to the extent that such loss reduces the hybrid surplus or increases the hybrid deficit of the transparent affiliate, to be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the shareholder affiliate, and to be deducted from the hybrid underlying tax of the shareholder affiliate, and to the extent that such loss reduces the taxable surplus or increases the taxable deficit of the transparent affiliate, to be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the shareholder affiliate, and to be deducted from the underlying foreign tax of the shareholder affiliate; where, because of the shareholder affiliate being responsible for paying, or claiming a refund of, income or profits tax for the year on behalf of the shareholder affiliate and the transparent affiliate, an amount is paid to the shareholder affiliate by the transparent affiliate in respect of the income or profits tax that would have been payable by the transparent affiliate for the year had it been liable, and no other person had been liable, for income or profits tax in respect of income or profits of the transparent affiliate, in respect of the transparent affiliate, the amount so paid is deemed to be a payment of such income or profits tax for the year, and such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the exempt surplus or deducted from the exempt deficit of the transparent affiliate is, at the end of the year, to be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the shareholder affiliate, such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the hybrid surplus or deducted from the hybrid deficit of the transparent affiliate is, at the end of the year, to be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the shareholder affiliate and deducted from the hybrid underlying tax of the shareholder affiliate, and such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the taxable surplus or deducted from the taxable deficit of the transparent affiliate is, at the end of the year, to be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the shareholder affiliate and be deducted from the underlying foreign tax of the shareholder affiliate, or an amount is paid by the shareholder affiliate to the transparent affiliate in respect of a reduction or refund, because of a loss or a tax credit of the transparent affiliate for a taxation year, of the income or profits tax that would otherwise have been payable by the shareholder affiliate for the year on behalf of the shareholder affiliate and the transparent affiliate, the portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the exempt surplus or included in the exempt deficit of the transparent affiliate is, at the end of the year to which the loss or the tax credit relates, to be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the shareholder affiliate, the portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the hybrid surplus or included in the hybrid deficit of the transparent affiliate is, at the end of the year of the loss, to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the shareholder affiliate and added to the hybrid underlying tax of the shareholder affiliate, and the portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the taxable surplus or included in the taxable deficit of the transparent affiliate is, at the end of the year to which the loss or the tax credit relates, to be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the shareholder affiliate and be added to the underlying foreign tax of the shareholder affiliate, and in respect of the transparent affiliate, the amount is deemed to be a refund to the transparent affiliate, for the year to which the loss or the tax credit relates, of income or profits tax in respect of the loss or the tax credit; and for the purposes of paragraph (b), any amount paid by a particular transparent affiliate in respect of the shareholder affiliate to another transparent affiliate in respect of the shareholder affiliate in respect of any income or profits tax that would have been payable by the particular transparent affiliate for the year had it been liable, and no other person had been liable, for income or profits tax in respect of income or profits of the transparent affiliate is deemed to have been paid in respect of such tax by the particular transparent affiliate to the shareholder affiliate and to have been paid in respect of such tax by the shareholder affiliate to the other transparent affiliate. For the purposes of this Part, if, under, the income tax laws of a country other than Canada, a group (in this subsection referred to as the “consolidated group”) of two or more foreign affiliates of a corporation resident in Canada determine their liabilities for income or profits tax payable to the government of that country for a taxation year on a consolidated or combined basis and one of the affiliates (in this subsection referred to as the “primary affiliate”) is responsible for paying, or claiming a refund of, such tax on behalf of itself and the other affiliates (in this subsection referred to as the “secondary affiliates”) that are members of the consolidated group, the following rules apply: in respect of the primary affiliate, any such income or profits tax paid by the primary affiliate for the year shall be deemed not to have been paid and any refund to the primary affiliate of income or profits tax otherwise payable by it for the year shall be deemed not to have been made, any such income or profits tax that would have been payable by the primary affiliate for the year if the primary affiliate had no other taxation year and had not been a member of the consolidated group shall be deemed to have been paid for the year, the income or profits tax that would otherwise have been payable by the primary affiliate for the year on behalf of the consolidated group is reduced by virtue of any loss of the primary affiliate for the year or any previous taxation year, or the primary affiliate receives, in respect of a loss of the primary affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the primary affiliate on behalf of the consolidated group, the amount of such reduction or refund, as the case may be, shall be deemed to have been received by the primary affiliate as a refund for the year of the loss of income or profits tax in respect of the loss, any such income or profits tax that would have been payable by a secondary affiliate for the year if the secondary affiliate had no other taxation year and had not been a member of the consolidated group shall at the end of the year, to the extent that such income or profits tax would otherwise have reduced the net earnings included in the exempt earnings of the secondary affiliate, be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the primary affiliate, to the extent that such income or profits tax would otherwise have reduced the hybrid surplus or increased the hybrid deficit of the secondary affiliate, be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the primary affiliate, and be added to the hybrid underlying tax of the primary affiliate, and to the extent that such income or profits tax would otherwise have reduced the net earnings included in the taxable earnings of the secondary affiliate, be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the primary affiliate, and be added to the underlying foreign tax of the primary affiliate, the income or profits tax that would otherwise have been payable by the primary affiliate for the year on behalf of the consolidated group is reduced by virtue of a loss of a secondary affiliate for the year or a previous taxation year, or the primary affiliate receives, in respect of a loss of a secondary affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the primary affiliate on behalf of the consolidated group, the amount of such reduction or refund, as the case may be, shall at the end of the year of the loss, where such loss reduces the exempt surplus or increases the exempt deficit, as the case may be, of the secondary affiliate, be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the primary affiliate, where such loss reduces the hybrid surplus or increases the hybrid deficit, as the case may be, of the secondary affiliate, be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the primary affiliate, and be deducted from the hybrid underlying tax of the primary affiliate, and where such loss reduces the taxable surplus or increases the taxable deficit, as the case may be, of the secondary affiliate, be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the primary affiliate, and be deducted from the underlying foreign tax of the primary affiliate; and where by virtue of the primary affiliate being responsible for paying, or claiming a refund of, income or profits tax for the year on behalf of the consolidated group, an amount is paid to the primary affiliate by a secondary affiliate in respect of the income or profits tax that would have been payable by the secondary affiliate for the year had it not been a member of the group, in respect of the secondary affiliate, the amount so paid shall be deemed to be a payment of such income or profits tax for the year, and such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the exempt surplus or deducted from the exempt deficit, as the case may be, of the secondary affiliate shall at the end of the year be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the primary affiliate, such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the secondary affiliate is, at the end of the year, to be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the primary affiliate and deducted from the hybrid underlying tax of the primary affiliate, and such portion of the amount so paid as may reasonably be regarded as relating to an amount included in the taxable surplus or deducted from the taxable deficit, as the case may be, of the secondary affiliate shall at the end of the year be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the primary affiliate and be deducted from the underlying foreign tax of the primary affiliate, or an amount is paid by the primary affiliate to a secondary affiliate in respect of a reduction or refund, because of a loss or a tax credit of the secondary affiliate for a taxation year, of the income or profits tax that would otherwise have been payable by the primary affiliate for the year on behalf of the consolidated group the portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the exempt surplus or included in the exempt deficit, as the case may be, of the secondary affiliate shall, at the end of the year to which the loss or the tax credit relates, be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the primary affiliate, such portion of the amount so paid as may reasonably be regarded as relating to an amount deducted from the hybrid surplus or included in the hybrid deficit, as the case may be, of the secondary affiliate is, at the end of the year of the loss, to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the primary affiliate and added to the hybrid underlying tax of the primary affiliate, and the portion of the amount so paid that can reasonably be regarded as relating to an amount deducted from the taxable surplus or included in the taxable deficit, as the case may be, of the secondary affiliate shall, at the end of the year to which the loss or the tax credit relates, be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the primary affiliate and be added to the underlying foreign tax of the primary affiliate, and in respect of the secondary affiliate, the amount is deemed to be a refund to the secondary affiliate, for the year to which the loss or the tax credit relates, of income or profits tax in respect of the loss or the tax credit, and, for the purposes of this paragraph, any amount paid by a particular secondary affiliate to another secondary affiliate in respect of any income or profits tax that would have been payable by the particular secondary affiliate for the year had it not been a member of the consolidated group shall be deemed to have been paid in respect of such tax by the particular secondary affiliate to the primary affiliate and to have been paid in respect of such tax by the primary affiliate to the other secondary affiliate. For the purposes of subsection (1.1), a non-resident corporation is deemed to be, at any time, a foreign affiliate of a particular corporation resident in Canada if at that time the non-resident corporation is a foreign affiliate of another corporation that is resident in Canada and is related (otherwise than because of a right referred to in paragraph 251(5)(b) of the Act) to the particular corporation. Subsection (1.13) applies in respect of a particular foreign affiliate of a corporation resident in Canada that is a secondary affiliate (within the meaning assigned by subsection (1.1)) and in respect of a foreign affiliate of the corporation that is the primary affiliate (within the meaning assigned by subsection (1.1)) in respect of the particular affiliate if the particular affiliate has an equity percentage in another foreign affiliate (in this subsection and subsection (1.13) referred to as the “transparent affiliate”);

under the income tax laws of the country referred to in subsection (1.1), if the particular affiliate were not a member of a consolidated group, the particular affiliate, and not the transparent affiliate, would be liable for any tax payable to, or entitled to any refund from, a government of that country for that year in respect of the income or profits, or loss, as the case may be, for the year of the transparent affiliate; and the primary affiliate pays income or profits tax, or receives a refund, in respect of the income or profits, or loss, as the case may be, for the year of the transparent affiliate. If this subsection applies, then in respect of the particular foreign affiliate and the primary affiliate referred to in subsection (1.12) for the purposes of applying subparagraphs (1.1)(a)(iv) and (1.1)(b)(i), where any income or profits tax that would otherwise be payable by the particular affiliate for the year, if the particular affiliate had no other taxation year and were not a member of the consolidated group referred to in subsection (1.1), is increased because of income or profits of the transparent affiliate referred to in paragraph (1.12)(a), to the extent that the income or profits increases the net earnings included in the exempt earnings of the transparent affiliate, the amount of any such increase is deemed to have been included in the exempt surplus, or deducted from the exempt deficit, as the case may be, of the particular affiliate, and any such income or profits tax that would have been payable by the particular affiliate in respect of the income or profits is deemed to be income or profits tax that would otherwise have reduced the net earnings that are included in the exempt earnings of the particular affiliate, to the extent that the income or profits increases the hybrid surplus or reduces the hybrid deficit of the transparent affiliate, the amount of the increase or reduction is deemed to have been included in the hybrid surplus, or deducted from the hybrid deficit, as the case may be, of the particular affiliate, and any such income or profits tax that would have been payable by the particular affiliate in respect of the income or profits is deemed to be income or profits tax that would otherwise have reduced the hybrid surplus or increased the hybrid deficit, as the case may be, of the particular affiliate, and to the extent that the income or profits increases the net earnings included in the taxable earnings of the transparent affiliate, the amount of any such increase is deemed to have been included in the taxable surplus, or deducted from the taxable deficit, as the case may be, of the particular affiliate, and any such income or profits tax that would have been payable by the particular affiliate in respect of the income or profits is deemed to be income or profits tax that would otherwise have reduced the net earnings that are included in the taxable earnings of the particular affiliate; and for the purpose of applying subparagraphs (1.1)(a)(v) and (1.1)(b)(ii), to the extent that the income or profits tax that would otherwise have been payable by the primary affiliate for the year on behalf of the consolidated group is reduced because of a loss, for the year or a previous taxation year, of the transparent affiliate referred to in paragraph (1.12)(a), or to the extent that the primary affiliate receives, in respect of a loss of the transparent affiliate for the year or a subsequent taxation year, a refund of income or profits tax otherwise payable for the year by the primary affiliate on behalf of the consolidated group, such loss is deemed to be a loss of the particular affiliate, to the extent that such loss reduces the exempt surplus or increases the exempt deficit of the transparent affiliate, such loss is deemed to reduce the exempt surplus or increase the exempt deficit, as the case may be, of the particular affiliate, to the extent that such loss reduces the hybrid surplus or increases the hybrid deficit of the transparent affiliate, such loss is deemed to reduce the hybrid surplus or increase the hybrid deficit, as the case may be, of the particular affiliate, and to the extent that such loss reduces the taxable surplus or increases the taxable deficit of the transparent affiliate, such loss is deemed to reduce the taxable surplus or increase the taxable deficit, as the case may be, of the particular affiliate. For the purposes of this Part, where, pursuant to the income tax law of a country other than Canada, a corporation resident in that country that is a foreign affiliate of a corporation resident in Canada (in this subsection referred to as the “taxpaying affiliate”) deducts, in computing its income or profits tax payable for a taxation year to a government of that country, a loss of another corporation resident in that country that is a foreign affiliate of the corporation resident in Canada (in this subsection referred to as the “loss affiliate”), the following rules apply: any such income or profits tax paid by the taxpaying affiliate for the year shall be deemed not to have been paid; any such income or profits tax that would have been payable by the taxpaying affiliate for the year if the taxpaying affiliate had not been allowed to deduct such loss shall be deemed to have been paid for the year; to the extent that the income or profits tax that would otherwise have been payable by the taxpaying affiliate for the year is reduced by virtue of such loss, the amount of such reduction shall at the end of the year, where such loss reduces the exempt surplus or increases the exempt deficit, as the case may be, of the loss affiliate, be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the taxpaying affiliate, where such loss reduces the hybrid surplus or increases the hybrid deficit, as the case may be, of the loss affiliate, be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the taxpaying affiliate, and be deducted from the hybrid underlying tax of the taxpaying affiliate, and where such loss reduces the taxable surplus or increases the taxable deficit, as the case may be, of the loss affiliate, be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the taxpaying affiliate, and be deducted from the underlying foreign tax of the taxpaying affiliate; and where an amount is paid by the taxpaying affiliate to the loss affiliate in respect of the reduction, by virtue of such loss, of the income or profits tax that would otherwise have been payable by the taxpaying affiliate for the year, in respect of the taxpaying affiliate, such portion of the amount as may reasonably be regarded as relating to an amount deducted from the exempt surplus or included in the exempt deficit, as the case may be, of the loss affiliate shall at the end of the year be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the taxpaying affiliate, such portion of the amount as may reasonably be regarded as relating to an amount deducted from the hybrid surplus or included in the hybrid deficit, as the case may be, of the loss affiliate is, at the end of the year, to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the taxpaying affiliate and added to the hybrid underlying tax of the taxpaying affiliate, and such portion of the amount as may reasonably be regarded as relating to an amount deducted from the taxable surplus or included in the taxable deficit, as the case may be, of the loss affiliate shall at the end of the year be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the taxpaying affiliate and be added to the underlying foreign tax of the taxpaying affiliate, and in respect of the loss affiliate, the amount shall be deemed to be a refund to the loss affiliate of income or profits tax in respect of the loss for the taxation year of the loss. Subsection (1.22) applies if a foreign affiliate of the taxpayer (in this subsection and subsection (1.22) referred to as the “shareholder affiliate”) has an equity percentage in another foreign affiliate (in this subsection and subsection (1.22) referred to as the “transparent affiliate”); and under the income tax laws of the country in which the shareholder affiliate is resident, the shareholder affiliate, and not the transparent affiliate, is liable for any tax payable to, or entitled to any refund from, a government of that country for that year in respect of the income or profits, or loss, as the case may be, for the year of the transparent affiliate. If this subsection applies, for the purpose of applying subsection (1.2), any loss of the transparent affiliate, to the extent that the loss is deducted in computing the income, profits or loss of the shareholder affiliate under an income tax law referred to in paragraph (1.21)(b), is deemed to be a loss of the shareholder affiliate; and is deemed to reduce the exempt surplus, or increase the exempt deficit, as the case may be, of the shareholder affiliate to the extent that it reduces the exempt surplus or increases the exempt deficit of the transparent affiliate, reduce the hybrid surplus or increase the hybrid deficit, as the case may be, of the shareholder affiliate to the extent that it reduces the hybrid surplus or increases the hybrid deficit of the transparent affiliate, and reduce the taxable surplus or increase the taxable deficit, as the case may be, of the shareholder affiliate to the extent that it reduces the taxable surplus or increases the taxable deficit of the transparent affiliate. For the purpose of paragraph (b) of the definition foreign accrual tax in subsection 95(1) of the Act and subject to subsection (1.4), if under the income tax laws of the country in which the particular affiliate or a shareholder affiliate of the particular affiliate, as the case may be, referred to in that paragraph is resident, the particular affiliate, or shareholder affiliate, and one or more other corporations, each of which is resident in that country, determine their liabilities for income or profits tax payable to the government of that country for a taxation year on a consolidated or combined basis, then any amount paid by the particular affiliate, or shareholder affiliate, to any of those other corporations to the extent that the amount paid may reasonably be regarded as being in respect of income or profits tax that would otherwise have been payable by the particular affiliate, or shareholder affiliate, in respect of a particular amount that is included under subsection 91(1) of the Act in computing the taxpayer’s income for a taxation year of the taxpayer in respect of the particular affiliate, if the tax liability of the particular affiliate, or shareholder affiliate, and those other corporations had not been determined on a consolidated or combined basis, is prescribed to be foreign accrual tax applicable to the particular amount; and if, under the income tax laws of the country in which the particular affiliate or a shareholder affiliate of the particular affiliate, as the case may be, referred to in that paragraph is resident, the particular affiliate, or shareholder affiliate, deducts, in computing its income or profits subject to tax in that country for a taxation year, an amount in respect of a loss of another corporation (referred to in this paragraph and paragraph (1.6)(a) as the “loss transferor”) resident in that country (referred to in this paragraph and paragraph (1.6)(a) as the “transferred loss”), then any amount paid by the particular affiliate, or shareholder affiliate, to the loss transferor to the extent that the amount paid may reasonably be regarded as being in respect of income or profits tax that would otherwise have been payable by the particular affiliate, or shareholder affiliate, in respect of a particular amount that is included under subsection 91(1) of the Act in computing the taxpayer’s income for a taxation year of the taxpayer in respect of the particular affiliate, if the tax liability of the particular affiliate, or shareholder affiliate, had been determined without deducting the transferred loss, is prescribed to be foreign accrual tax applicable to the particular amount. If the amount prescribed under paragraph (1.3)(a) or (b), or any portion of the amount, can reasonably be considered to be in respect of a particular loss (other than a capital loss) or a capital loss of another corporation for a taxation year of the other corporation, then the amount so prescribed is to be reduced to the extent that it can reasonably be considered to be in respect of the portion of the particular loss or capital loss, as the case may be, that would, if sections 5903 and 5903.1 were read without reference to their subsection (4), not be a foreign accrual property loss (within the meaning assigned by subsection 5903(3)), or a foreign accrual capital loss (within the meaning assigned by subsection 5903.1(3)), as the case may be, of a controlled foreign affiliate of a person or partnership that is, at the end of that taxation year, a relevant person or partnership (within the meaning assigned by subsection 5903(6)) in respect of the taxpayer. If subsection (1.4) applied to reduce an amount that would, in the absence of subsection (1.4), be prescribed by subsection (1.3) to be foreign accrual tax applicable to an amount (referred to in this subsection as the “FAPI amount”) included under subsection 91(1) of the Act in computing the taxpayer’s income for a taxation year (referred to in subsection (1.6) as the “FAPI year”) of the taxpayer in respect of the particular affiliate referred to in paragraph (1.3)(a) or (b), then an amount equal to that reduction is, for the purposes of paragraph (b) of the definition foreign accrual tax in subsection 95(1) of the Act, prescribed to be foreign accrual tax applicable to the FAPI amount in the taxpayer’s taxation year that includes the last day of the designated taxation year, if any, of the particular affiliate or the shareholder affiliate referred to in paragraph (1.3)(a) or (b), as the case may be. For the purposes of subsection (1.5), the designated taxation year of the particular affiliate or the shareholder affiliate, as the case may be, is a particular taxation year of the particular affiliate, or the shareholder affiliate, if in the particular year, or in the taxation year of the particular affiliate or shareholder affiliate (referred to in this paragraph as the “PATY”) ending in the FAPI year and one or more taxation years of the particular affiliate (or shareholder affiliate) each of which follows the PATY and the latest of which is the particular year, all losses of the particular affiliate (or shareholder affiliate) and the other corporations referred to in paragraph (1.3)(a) — or of the particular affiliate, the loss transferor and each corporation that would have been permitted to deduct the transferred loss against its income under the income tax laws referred to in paragraph (1.3)(b) if the transferred loss had not been deducted by the particular affiliate and if the corporation had taxable income for its taxation years ending in the FAPI year in excess of the transferred loss — for their taxation years ending in the FAPI year would, on the assumption that the particular affiliate (or shareholder affiliate) and each of those other corporations had no foreign accrual property income for any taxation year, reasonably be considered to have been fully deducted (under the tax laws referred to in paragraph (1.3)(a) or (b)) against income (as determined under those tax laws) of the particular affiliate (or shareholder affiliate) or those other corporations; the taxpayer demonstrates that no other losses of the particular affiliate (or shareholder affiliate) or those other corporations for any taxation year were, or could reasonably have been, deducted under those tax laws against that income; and the last day of the particular year occurs in one of the five taxation years of the taxpayer that immediately follow the FAPI year. If the amount prescribed under paragraph (1.3)(a) or (b), or any portion of the amount, can reasonably be considered to be in respect of a capital loss of another corporation for a taxation year of the other corporation, then the amount so prescribed, as reduced by subsection (1.4), if applicable, shall be reduced to the extent that it can reasonably be considered to be in respect of the portion of that capital loss that would not be deductible by the particular affiliate in computing its foreign accrual property income for the year if the capital loss had been incurred by the particular affiliate. In computing the earnings of a foreign affiliate of a taxpayer resident in Canada for a taxation year of the affiliate from an active business carried on by it in a country, there shall be added to the amount thereof determined under subparagraph (a)(i) or (ii) of the definition earnings in subsection (1) (in this subsection referred to as the “earnings amount”) such portion of the following amounts as was deducted or was not included, as the case may be, in computing the earnings amount, any income or profits tax paid to the government of a country by the affiliate so deducted, if established by the taxpayer, the amount by which any amount so deducted in respect of an expenditure made by the affiliate exceeds the amount, if any, by which the amount of the expenditure the aggregate of all other deductions in respect of that expenditure made by the affiliate in computing the earnings amounts for preceding taxation years, any loss of the affiliate referred to in the description of D in the definition foreign accrual property income in subsection 95(1) of the Act so deducted, any capital loss of the affiliate in respect of the disposition of capital property so deducted (for greater certainty, capital property of the affiliate for the purposes of this paragraph includes all the property of the affiliate other than property referred to in subparagraph 39(1)(b)(i) or (ii) of the Act on the assumption for this purpose that the affiliate is a corporation resident in Canada), any loss of the affiliate for a preceding or a subsequent taxation year so deducted, any revenue, income or profit (other than an amount referred to in paragraph (f.1), (h) or (i)) of the affiliate derived in the year from such business carried on in that country to the extent that such revenue, income or profit is not otherwise required to be included in computing the earnings amount of the affiliate for any taxation year by the income tax law that is relevant in computing that amount, and subject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate, to a person or partnership that was, at the time of the disposition, a designated person or partnership in respect of the taxpayer, and to which a tax deferral, rollover or similar tax postponement provision of the income tax laws that are relevant in computing the earnings amount of the affiliate applied, and any assistance from a government, municipality or other public authority (other than any such assistance that reduced the amount of an expenditure for purposes of computing the earnings amount for any taxation year) that the affiliate received or became entitled to receive in the year in connection with such business carried on in that country that is not otherwise required to be included in computing the earnings amount for the year or for any other taxation year, and there shall be deducted such portion of the following amounts as were included or were not deducted, as the case may be, in computing the earnings amount, any income or profits tax refunded by the government of a country to the affiliate so included; any capital gain of the affiliate in respect of the disposition of capital property so included (for greater certainty, capital property of the affiliate for the purposes of this paragraph includes all the property of the affiliate other than property referred to in any of subparagraphs 39(1)(a)(i) to (iv) of the Act on the assumption for this purpose that the affiliate is a corporation resident in Canada); any amount that is included in the foreign accrual property income of the affiliate so included; any loss, outlay or expense made or incurred in the year by the affiliate for the purpose of gaining or producing such earnings amount to the extent that such loss, outlay or expense is not otherwise permitted to be deducted in computing the earnings amount of the affiliate for any taxation year by the income tax law that is relevant in computing that amount, or such outlay or expense can reasonably be regarded as applicable to any revenue added to the earnings amount of the affiliate under paragraph (f), where such loss, outlay or expense to which a loss deferral or similar loss postponement provision of the income tax laws that are relevant in computing the earnings amount of the affiliate applied, and is not a loss referred to in paragraph (c) or (d), a capital expenditure other than interest, or income or profits tax paid to the government of a country; any outlay made in the year in repayment of an amount referred to in paragraph (f.1); and if any property of the affiliate that was acquired from a person or partnership that was, at the time of the acquisition, a designated person or partnership in respect of the taxpayer has been disposed of, the amount in respect of that property that may reasonably be considered as having been included under paragraph (f) in computing the earnings amount of any foreign affiliate of the taxpayer or of a person or partnership that was, at the time of the disposition, a designated person or partnership in respect of the taxpayer. Subparagraphs (2)(f)(ii) and (j)(iii) and subsection (5.1) do not apply to a particular disposition of property (referred to in this subsection as the “affiliate property”) by a particular foreign affiliate of a taxpayer to another foreign affiliate of the taxpayer if the only consideration in respect of the particular disposition is one or any combination of shares of the capital stock of the other affiliate, and the assumption by the other affiliate of a debt or other obligation owing by the particular affiliate that arose in the ordinary course of the business of the particular affiliate to which the affiliate property relates; all of the shares of the capital stock of the other affiliate that are, immediately after the particular disposition, owned by the particular affiliate are disposed of, at a particular time that is within 90 days of the day that includes the time of the particular disposition, to a person or partnership that at the particular time is not a designated person or partnership in respect of the taxpayer; and the affiliate property is not disposed of by the other affiliate as part of a series of transactions or events that includes the particular disposition. the particular disposition is a disposition referred to in subparagraph 15(1.5)(c)(i) of the Act; all of the shares of the capital stock of the other affiliate are owned, at a particular time that is within 180 days after the day that includes the time of the particular disposition, by a person or partnership that at the particular time is not a designated person or partnership in respect of the taxpayer; and If an amount or a portion of an amount would, in the absence of this subsection, be included in computing the exempt earnings, or deducted in computing the exempt loss, of a foreign affiliate of a corporation in respect of the corporation for a taxation year of the affiliate and the amount or portion arises from a disposition of property (other than money), at any time, to a person or partnership that was, at that time, a designated person or partnership in respect of the corporation where that disposition is a transaction (within the meaning of subsection 245(1) of the Act) that is, or would be (if the amount or portion were a tax benefit for the purposes of section 245 of the Act), an avoidance transaction (within the meaning of subsection 245(3) of the Act), the following rules apply: the amount or portion is instead to be included in the affiliate’s taxable earnings for the year in respect of the corporation; and any income or profits tax relating to the transaction that would otherwise be deducted in computing the exempt earnings, or included in computing the exempt loss, of the affiliate for the year in respect of the corporation, is instead to be deducted from the affiliate’s taxable earnings for the year in respect of the corporation. The determination — under subparagraph (a)(iii) and paragraph (b) of the definition earnings, and paragraph (b) of the definition loss, in subsection (1) — of the earnings or loss of a foreign affiliate of a taxpayer resident in Canada for a particular taxation year from an active business is to be made as if the affiliate had, in computing its income or loss from the business for each taxation year (referred to in this paragraph as an “earnings or loss year”) that is the particular year or is any preceding taxation year that ends after August 19, 2011, claimed all deductions that it could have claimed under the Act, up to the maximum amount deductible in computing the income or loss from the business for that earnings or loss year, and made all claims and elections and taken all steps under applicable provisions of the Act, or of enactments implementing amendments to the Act or its regulations, to maximize the amount of any deduction referred to subparagraph (i); and had, in computing its income or loss from the business for any preceding taxation year that ended on or before August 19, 2011, claimed all deductions, if any, that it actually claimed under the Act, up to the maximum amount deductible, and made all claims and elections, if any, and taken all steps, if any, under applicable provisions of the Act, or of enactments implementing amendments to the Act or its regulations, that it actually made. In computing the earnings of a foreign affiliate of a corporation resident in Canada for a taxation year of the affiliate from an active business carried on by it in Canada or in a designated treaty country, where the affiliate is resident in a designated treaty country and the corporation, together with all other corporations resident in Canada with which the corporation does not deal at arm’s length and in respect of which the affiliate is a foreign affiliate, have so elected in respect of the business for the taxation year or any preceding taxation year of the affiliate, the following rules apply: there shall be added to the amount determined under subparagraph (a)(i) of the definition earnings in subsection (1) after adjustment in accordance with the provisions of subsection (2) (in this subsection and in subsection (2.2) referred to as the “adjusted earnings amount”) the total of all amounts each of which is the amount, if any, by which the amount that can reasonably be regarded as having been deducted in respect of the cost of a capital property or foreign resource property of the affiliate in computing the adjusted earnings amount the amount that may reasonably be regarded as having been deducted in respect of the cost of that capital property or foreign resource property in computing income or profit of the affiliate for the year from that business in its financial statements prepared in accordance with the laws of the country in which the affiliate is resident; there shall be deducted from the adjusted earnings amount the aggregate of all amounts each of which is the amount, if any, by which the amount determined under subparagraph (a)(ii) in respect of that capital property or foreign resource property the amount determined under subparagraph (a)(i) in respect of that capital property or foreign resource property; where any capital property or foreign resource property of the affiliate has been disposed of in the taxation year, there shall be added to the adjusted earnings amount the aggregate of the amounts deducted pursuant to paragraphs (b) and (2.2)(b) for preceding taxation years of the affiliate in respect of that capital property or foreign resource property, and there shall be deducted from the adjusted earnings amount the aggregate of the amounts added pursuant to paragraphs (a) and (2.2)(a) for the preceding taxation years of the affiliate in respect of that capital property or foreign resource property; and for the purposes of paragraph (c), where the affiliate has merged with one or more corporations to form a new corporation, any capital property or foreign resource property of the affiliate that becomes a property of the new corporation shall be deemed to have been disposed of by the affiliate in its last taxation year before the merger. Where the taxation year of a foreign affiliate of a particular corporation resident in Canada for which the particular corporation has made an election under subsection (2.1) in respect of an active business carried on by the affiliate is not the first taxation year of the affiliate in which it carried on the business and in which it was a foreign affiliate of the particular corporation or of another corporation resident in Canada with which the particular corporation was not dealing at arm’s length at any time (hereinafter referred to as the “non-arm’s length corporation”), in computing the earnings of the affiliate from the business for the taxation year for which the election is made, the following rules, in addition to those set out in subsection (2.1), apply: there shall be added to the adjusted earnings amount the aggregate of all amounts each of which is an amount that would have been determined under paragraph (2.1)(a) or subparagraph (2.1)(c)(i) for any preceding taxation year of the affiliate in which it was a foreign affiliate of the particular corporation if the particular corporation had made an election under subsection (2.1) for the first taxation year of the affiliate in which it was a foreign affiliate of the particular corporation and carried on the business, and for any preceding taxation year of the affiliate (other than a taxation year referred to in subparagraph (i)) in which it was a foreign affiliate of the non-arm’s length corporation if the non-arm’s length corporation had made an election under subsection (2.1) for the first taxation year of the affiliate in which it was a foreign affiliate of the non-arm’s length corporation and carried on the business; and there shall be deducted from the adjusted earnings amount the aggregate of all amounts each of which is an amount that would have been determined under paragraph (2.1)(b) or subparagraph (2.1)(c)(ii) for any preceding taxation year of the affiliate (other than a taxation year referred to in subparagraph (i)) in which it was a foreign affiliate of the non-arm’s length corporation if the non-arm’s length corporation had made an election under subsection (2.1) for the first taxation year of the affiliate in which it was a foreign affiliate of the non-arm’s length corporation and carried on the business. For the purposes of this subsection and subsections (2.1) and (2.2), where an election under subsection (2.1) has been made by a corporation resident in Canada (in this subsection and in subsection (2.4) referred to as the “electing corporation”) in respect of an active business of a foreign affiliate of the electing corporation and the affiliate subsequently becomes a foreign affiliate of another corporation resident in Canada (in this subsection and in subsection (2.4) referred to as the “subsequent corporation”) that does not deal at arm’s length with the electing corporation, in computing the earnings of the affiliate from such business in respect of the subsequent corporation for any taxation year of the affiliate ending after the affiliate so became a foreign affiliate of the subsequent corporation, the subsequent corporation shall be deemed to have made an election under subsection (2.1) in respect of the business of the affiliate for the first such taxation year and for the purposes of paragraph (2.1)(d), the earnings of the affiliate for all of the preceding taxation years shall be deemed to have been adjusted in accordance with subsections (2.1) and (2.2) in the same manner as if the subsequent corporation had been the electing corporation. For the purposes of subsection (2.3) a corporation formed as a result of a merger, to which section 87 of the Act applies, of the electing corporation and one or more other corporations, or a corporation that has acquired shares of the capital stock of a foreign affiliate, in respect of which an election under subsection (2.1) has been made, from the electing corporation in a transaction in respect of which an election under section 85 of the Act was made shall be deemed to be a subsequent corporation that does not deal at arm’s length with the electing corporation. [Repealed, SOR/97-505, s. 8] A corporation resident in Canada, and all other corporations resident in Canada with which the corporation does not deal at arm’s length, shall each be considered to have elected under subsection (2.1) in respect of an active business carried on by a non-resident corporation that is a foreign affiliate of each such corporation for a taxation year if there is filed with the Minister on or before the day that is the later of June 30, 1986, and the earliest of the days on or before which any one of the said corporations is required to file a return of income pursuant to section 150 of the Act for its taxation year following the taxation year in which the taxation year of the affiliate in respect of which the election is made ends, the following information: a description of the active business sufficient to identify the business; and a statement on behalf of each such corporation, signed by an authorized official of the corporation on behalf of which the statement is made, that the corporation is electing under subsection (2.1) in respect of the business. Notwithstanding any other provision of this Part, if an amount (referred to in this subsection as the “inclusion amount”) is included in computing the income or loss from an active business of a foreign affiliate of a taxpayer for a taxation year under subparagraph 95(2)(a)(i) or (ii) of the Act and the inclusion amount is in respect of a particular amount paid or payable, if clause 95(2)(a)(ii)(D) of the Act is applicable, by the second affiliate referred to in that clause, the particular amount is to be deducted in computing the second affiliate’s income or loss from an active business carried on by it in the country in which it is resident for its earliest taxation year in which that amount was paid or payable, the second affiliate is deemed to have carried on an active business in that country for that earliest taxation year, and in computing the second affiliate’s income or loss for a taxation year from any source, no amount is to be deducted in respect of the particular amount except as required under subparagraph (i); and in any other case, by the other foreign affiliate referred to in subparagraph 95(2)(a)(i) or (ii) of the Act, as the case may be, or by a partnership of which the other foreign affiliate is a member, the particular amount is, except where it has been deducted under paragraph (2)(j) in computing the other foreign affiliate’s earnings or loss from an active business, to be deducted in computing the earnings or loss of the other foreign affiliate or the partnership, as the case may be, from the active business for its earliest taxation year in which the particular amount was paid or payable, and not to be deducted in computing its earnings or loss from the active business for any other taxation year. If paragraph 95(2)(k.1) of the Act applies in respect of a particular taxation year of a foreign affiliate of a taxpayer or in respect of a particular fiscal period of a partnership (which foreign affiliate or partnership is referred to in this subsection as the “operator” and which particular taxation year or particular fiscal period is referred to in this subsection as the “specified taxation year”) a member of which is, at the end of the period, a foreign affiliate of a taxpayer, in computing the affiliate’s earnings or loss from the foreign business referred to in that paragraph for the affiliate’s taxation year (referred to in subparagraphs (i) and (ii) as the “preceding taxation year”) that includes the day that is immediately before the beginning of the specified taxation year, there is to be added to the amount determined under paragraph (a) of the definition earnings in subsection (1), after adjustment in accordance with subsections (2) to (2.2), where the operator is the affiliate, the total of the amount, if any, by which the total determined under sub-subclause (ii)(A)(I)2 in respect of the operator for the preceding taxation year exceeds the total determined under sub-subclause (ii)(A)(I)1 in respect of the operator for that year, and if the operator was deemed under paragraph 95(2)(k.1) of the Act to have, at the end of the preceding taxation year, disposed of property owned by it that was used or held by it in the course of carrying on the foreign business in that year, the amount that is the total of all amounts each of which is determined by the formula is the fair market value, immediately before the end of that year, of a property deemed because of that paragraph to have been disposed of, is the amount determined under paragraph (a) of the definition relevant cost base in subsection 95(4) of the Act in respect of the property, in respect of the taxpayer, immediately before the time of the disposition, and is the amount, if any, of the capital gain determined in respect of the disposition of the property at that time, and where the operator is the partnership, the amount determined under subsection 5908(13); and there is to be added to the amount determined under paragraph (a) of the definition loss in subsection (1), the total of all amounts each of which is an amount deemed under paragraph 95(2)(k.1) of the Act to have been claimed under any of paragraphs 20(1)(l), (l.1) and (7)(c), and subparagraphs 138(3)(a)(i), (ii) and (iv), of the Act (each of which provisions is referred to in this subparagraph as a “reserve provision”) in computing the income from the foreign business for the preceding taxation year the total of all amounts each of which is an amount actually claimed by the operator as a reserve in computing its income from the foreign business for that year that can reasonably be considered to be in respect of amounts in respect of which a reserve could have been claimed under a reserve provision on the assumption that the operator could have claimed amounts in respect of the reserve provisions for that year, and the total of all amounts each of which is the amount, if any, by which the amount determined under the description of B in the formula in subclause (i)(A)(II) in respect of a property described in that subclause exceeds the amount determined under the description of A in the formula in that clause in respect of the property, and any property of the operator that is, under that paragraph, deemed to have been disposed of and reacquired by the operator is, for the purposes of this section, deemed to have been disposed of and reacquired by the operator in the same manner and for the same amounts as if that paragraph applied for the purposes of this section. For the purposes of this Part, any corporation that was, on January 1, 1972, a foreign affiliate of a taxpayer shall be deemed to have become a foreign affiliate of the taxpayer on that day. For the purposes of this Part, government of a country includes the government of a state, province or other political subdivision of that country. For the purposes of this section, each capital gain, capital loss, taxable capital gain or allowable capital loss of a foreign affiliate of a taxpayer from the disposition of property is to be computed in accordance with the rules set out in subsection 95(2) of the Act. For the purposes of subsection (6), if any capital gain, capital loss, taxable capital gain or allowable capital loss referred to in subsection (5), or any capital loss referred to in subparagraph (iii) of the description of B in the definition hybrid surplus in subsection (1), of a foreign affiliate of a corporation is required to be computed in Canadian currency and the currency referred to in subsection (6) is not Canadian currency, the amount of the gain or loss is to be converted from Canadian currency into the currency referred to in subsection (6) at the rate of exchange prevailing on the date of disposition of the property. Notwithstanding subsection (5), if, under the income tax laws of a country other than Canada that are relevant in computing the earnings of a foreign affiliate of a taxpayer resident in Canada from an active business carried on by it in a country, no gain or loss is recognized in respect of a disposition (other than a disposition to which subsection (9) applies) by the affiliate of a capital property used or held principally for the purpose of gaining or producing income from an active business to a person or partnership (in this subsection referred to as the “transferee”) that was, at the time of the disposition, a designated person or partnership in respect of the taxpayer, for the purposes of this section, the affiliate’s proceeds of disposition of the property shall be deemed to be an amount equal to the aggregate of the adjusted cost base to the affiliate of the property immediately before the disposition and any outlays and expenses to the extent they were made or incurred by the affiliate for the purpose of making the disposition; the cost to the transferee of the property acquired from the affiliate shall be deemed to be an amount equal to the affiliate’s proceeds of disposition, as determined under paragraph (a); and the transferee shall be deemed to have acquired the property on the date that it was acquired by the affiliate. All amounts referred to in subsections (1) and (2) shall be maintained on a consistent basis from year to year in the currency of the country in which the foreign affiliate of the corporation resident in Canada is resident or any currency that the corporation resident in Canada demonstrates to be reasonable in the circumstances. For the purposes of this Part, the amount of any stock dividend paid by a foreign affiliate of a corporation resident in Canada on a share of a class of its capital stock shall be deemed to be nil. For the purposes of computing the various amounts referred to in this section, the first taxation year of a foreign affiliate, of a corporation resident in Canada, that is formed as a result of a foreign merger (within the meaning assigned by subsection 87(8.1) of the Act) is deemed to have commenced at the time of the merger, and a taxation year of a predecessor corporation (within the meaning assigned by subsection 5905(3)) that would otherwise have ended after that time is deemed to have ended immediately before that time; and if subsection 91(1.2) of the Act applies at any particular time in respect of a foreign affiliate of a corporation, the various amounts are to be computed, in respect of attributed amounts for the stub period in respect of the particular time, as if the affiliate’s taxation year that would have included the particular time ended at the stub-period end time in respect of the particular time, and all transactions or events, giving rise to attributed amounts, that occurred at the particular time, occurred at the stub-period end time in respect of the particular time. The following definitions apply in paragraph 5907(8)(b). attributed amounts, for a stub period, in respect of a particular time referred to in paragraph (8)(b), of a foreign affiliate of a corporation, means the amounts of any income, gain or loss of the affiliate for the stub period that are relevant in determining amounts that are to be included or may be deducted under section 91 of the Act in respect of the affiliate for the particular stub period, in computing the income of the corporation; any portion of the affiliate’s capital gain or capital loss – from a disposition, in the stub period or at the particular time referred to in paragraph (8)(b), of a property that is not an excluded property – that is not described in paragraph (a); and any income or profits tax paid to the government of a country, in respect of amounts described in paragraph (a) or (b). (sommes attribuées) stub period, in respect of a particular time at which subsection 91(1.2) of the Act applies in respect of a foreign affiliate of a corporation, means a period that ends at the stub-period end time in respect of the particular time and begins immediately after the later of the last time, if any, before the particular time that subsection 91(1.2) applied in respect of the affiliate, and the end of the affiliate’s last taxation year before the particular time. (période tampon) stub-period end time, in respect of a particular time at which subsection 91(1.2) of the Act applies in respect of a foreign affiliate of a corporation, means the time that is immediately before the particular time. (fin de la période tampon) If a foreign affiliate of a taxpayer has been liquidated and dissolved (otherwise than as a result of a foreign merger within the meaning assigned by subsection 87(8.1) of the Act), for the purposes of computing the various amounts referred to in this section, the following rules apply: where, at a particular time, property having a fair market value equal to or greater than 90 percent of the fair market value of all of the property that was owned by the affiliate immediately before the commencement of the liquidation and dissolution has been disposed of by the affiliate in the course of the liquidation and dissolution, the taxation year of the affiliate that otherwise would have included the particular time is deemed to have ended immediately before that time; and each property of the affiliate that was disposed of by the affiliate in the course of the liquidation and dissolution is deemed to have been disposed of by the affiliate, at the time that is the earlier of the time it was actually disposed of and the time that is immediately before the time that is immediately before the particular time, for proceeds of disposition equal to if the liquidation and dissolution is one to which subsection 88(3) of the Act applies in respect of the disposition, the amount that would, in the absence of subsection 88(3.3) of the Act, be determined under paragraph 88(3)(a) or (b) of the Act, as the case may be, if the liquidation and dissolution is one to which paragraph 95(2)(e) of the Act applies in respect of the disposition, the amount determined under subparagraph 95(2)(e)(i) or (ii) of the Act, as the case may be, and in any other case, the fair market value of the property at the time it was actually disposed of, and acquired by the person or partnership to which the affiliate disposed of the property, at the time it was actually acquired, at a cost equal to the affiliate’s proceeds of disposition of the property.

Notwithstanding any other provision of this Part, in determining the earnings or loss of a foreign affiliate of a taxpayer resident in Canada, for a taxation year of the affiliate from an active business carried on by it in a country, from a disposition of property to which paragraph 95(2)(d.1) of the Act applies, those earnings or that loss are to be determined using the rules in that paragraph; and from a disposition of property acquired in a transaction to which paragraph 95(2)(d.1) of the Act applies, the cost to the affiliate of the property is to be determined using the rules in that paragraph. the net earnings or net loss for a taxation year of a foreign affiliate of a corporation resident in Canada from an active business carried on in a country other than Canada would otherwise be included in the affiliate’s taxable earnings or taxable loss, as the case may be, for the year, the rate of the income or profits tax to which any earnings of that active business of the affiliate are subjected by the government of that country is, by virtue of a special exemption from or reduction of tax (other than an export incentive) that is provided under a law of such country to promote investments or projects in pursuance of a program of economic development, less than the rate of such tax that would, but for such exemption or reduction, be paid by the affiliate, and the affiliate qualified for such exemption from or reduction of tax in respect of an investment made by it in that country before January 1, 1976 or in respect of an investment made by it or a project undertaken by it in that country pursuant to an agreement in writing entered into before January 1, 1976, for the purposes of this Part, such net earnings or net loss shall be included in the affiliate’s exempt earnings or exempt loss, as the case may be, for the year and not in the affiliate’s taxable earnings or taxable loss, as the case may be, for the year. For the purposes of this Part, a sovereign state or other jurisdiction is a designated treaty country for a taxation year of a foreign affiliate of a corporation if Canada has entered into a comprehensive agreement or convention for the elimination of double taxation on income, or a comprehensive tax information exchange agreement, in respect of that sovereign state or jurisdiction, that has entered into force and has effect for that taxation year, but any territory, possession, department, depend- ency or area of that sovereign state or jurisdiction to which that agreement or convention does not apply is not considered to be part of that sovereign state or jurisdiction for the purpose of determining whether it is a designated treaty country. For the purpose of subsection (11), where a comprehensive agreement or convention between Canada and another country for the elimination of double taxation on income has entered into force, that convention or agreement is deemed to have entered into force and have effect in respect of a taxation year of a foreign affiliate of a corporation any day of which is in the period that begins on the day on which the agreement or convention was signed and that ends on the last day of the last taxation year of the affiliate for which the agreement or convention is effective. For the purpose of applying subsection (11) in respect of a foreign affiliate of a corporation, where a comprehensive tax information exchange agreement enters into force on a particular day, the agreement is deemed to enter into force and to come into effect on the first day of the foreign affiliate’s taxation year that includes the particular day. For the purposes of this Part, a foreign affiliate of a corporation is, at any time, deemed not to be resident in a country with which Canada has entered into a comprehensive agreement or convention for the elimination of double taxation on income unless the affiliate is, at that time, a resident of that country for the purpose of the agreement or convention; the affiliate would, at that time, be a resident of that country for the purpose of the agreement or convention if the affiliate were treated, for the purpose of income taxation in that country, as a body corporate; where the agreement or convention entered into force before 1995, the affiliate would, at that time, be a resident of that country for the purpose of the agreement or convention but for a provision in the agreement or convention that has not been amended after 1994 and that provides that the agreement or convention does not apply to the affiliate; or the affiliate would, at that time, be a resident of that country, as provided by paragraph (a), (b) or (c) if the agreement or convention had entered into force. For the purposes of subparagraph (ii) of paragraph 128.1(1)(d) of the Act, the prescribed amount is the amount determined by the formula (a)the amount, if any, determined by the formulaA – B – (C – D) + (E – F)whereAis the taxable surplus of the foreign affiliate of the other taxpayer referred to in that paragraph, in respect of the other taxpayer, at the end of the year referred to in that subparagraph,Bis the affiliate’s net earnings for the year in respect of the affiliate’s foreign accrual property income for the year to the extent those net earnings have been included in the amount referred to in the description of A,Cis the total of all amounts each of which is the amount by which the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year would have increased because of the gain or income of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate,Dis the total of all amounts each of which is the amount otherwise added in computing the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes paid to the government of a country in respect of all or a portion of a gain or an income of the affiliate referred to in the description of C,Eis the total of all amounts each of which is the amount by which the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year would have decreased because of the loss of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate, andFis the total of all amounts each of which is the amount otherwise deducted in computing the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes refunded by the government of a country in respect of all or a portion of a loss of the affiliate referred to in the description of E is the taxable surplus of the foreign affiliate of the other taxpayer referred to in that paragraph, in respect of the other taxpayer, at the end of the year referred to in that subparagraph, is the affiliate’s net earnings for the year in respect of the affiliate’s foreign accrual property income for the year to the extent those net earnings have been included in the amount referred to in the description of A, is the total of all amounts each of which is the amount by which the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year would have increased because of the gain or income of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate, is the total of all amounts each of which is the amount otherwise added in computing the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes paid to the government of a country in respect of all or a portion of a gain or an income of the affiliate referred to in the description of C, is the total of all amounts each of which is the amount by which the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year would have decreased because of the loss of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate, and is the total of all amounts each of which is the amount otherwise deducted in computing the affiliate’s underlying foreign tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes refunded by the government of a country in respect of all or a portion of a loss of the affiliate referred to in the description of E (b)the amount, if any, determined by the formula[(G – H) × (J – 1)] + KwhereGis the amount determined by the formulaL + M – NwhereLis the underlying foreign tax of the affiliate in respect of the other taxpayer at the end of the year,Mis the amount, if any, by which the amount determined under the description of C in paragraph (a) exceeds the amount determined under the description of D in that paragraph, andNis the amount, if any, by which the amount determined under the description of E in paragraph (a) exceeds the amount determined under the description of F in that paragraph,His the portion of the value of L that can reasonably be considered to relate to the affiliate’s net earnings for the year in respect of the affiliate’s foreign accrual property income,Jis the other taxpayer’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act) for its taxation year that includes the time that is immediately before the particular time, andKis the amount, if any, by which(i)the total of all amounts required by paragraph 92(1)(a) of the Act to be added at any time in a preceding taxation year in computing the adjusted cost base to the other taxpayer of the shares of the affiliate owned by the other taxpayer at the end of the yearexceeds(ii)the total of all amounts required by paragraph 92(1)(b) of the Act to be deducted at any time in a preceding taxation year in computing the adjusted cost base to the other taxpayer of the shares of the affiliate owned by the other taxpayer at the end of the year, and is the underlying foreign tax of the affiliate in respect of the other taxpayer at the end of the year, is the amount, if any, by which the amount determined under the description of C in paragraph (a) exceeds the amount determined under the description of D in that paragraph, and is the amount, if any, by which the amount determined under the description of E in paragraph (a) exceeds the amount determined under the description of F in that paragraph, is the portion of the value of L that can reasonably be considered to relate to the affiliate’s net earnings for the year in respect of the affiliate’s foreign accrual property income, is the other taxpayer’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act) for its taxation year that includes the time that is immediately before the particular time, and (i)the total of all amounts required by paragraph 92(1)(a) of the Act to be added at any time in a preceding taxation year in computing the adjusted cost base to the other taxpayer of the shares of the affiliate owned by the other taxpayer at the end of the year the total of all amounts required by paragraph 92(1)(a) of the Act to be added at any time in a preceding taxation year in computing the adjusted cost base to the other taxpayer of the shares of the affiliate owned by the other taxpayer at the end of the year (ii)the total of all amounts required by paragraph 92(1)(b) of the Act to be deducted at any time in a preceding taxation year in computing the adjusted cost base to the other taxpayer of the shares of the affiliate owned by the other taxpayer at the end of the year, and the total of all amounts required by paragraph 92(1)(b) of the Act to be deducted at any time in a preceding taxation year in computing the adjusted cost base to the other taxpayer of the shares of the affiliate owned by the other taxpayer at the end of the year, and (a)the amount, if any, determined by the formulaP – (Q – R) + (S – T)wherePis the affiliate’s hybrid surplus in respect of the other taxpayer at the end of the year,Qis the total of all amounts each of which is the amount by which the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year would have increased because of the capital gain of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate,Ris the total of all amounts each of which is the amount otherwise added in computing the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes paid to the government of a country in respect of all or a portion of a capital gain of the affiliate referred to in the description of Q,Sis the total of all amounts each of which is the amount by which the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year would have decreased because of the capital loss of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate, andTis the total of all amounts each of which is the amount otherwise deducted in computing the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes refunded by the government of a country in respect of all or a portion of a capital loss of the affiliate referred to in the description of S; is the affiliate’s hybrid surplus in respect of the other taxpayer at the end of the year, is the total of all amounts each of which is the amount by which the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year would have increased because of the capital gain of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate, is the total of all amounts each of which is the amount otherwise added in computing the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes paid to the government of a country in respect of all or a portion of a capital gain of the affiliate referred to in the description of Q, is the total of all amounts each of which is the amount by which the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year would have decreased because of the capital loss of the affiliate that would have arisen if a disposition, deemed under paragraph 128.1(1)(b) of the Act, of a property by the affiliate had been an actual disposition of the property by the affiliate, and is the total of all amounts each of which is the amount otherwise deducted in computing the affiliate’s hybrid underlying tax in respect of the other taxpayer at the end of the year in respect of income or profits taxes refunded by the government of a country in respect of all or a portion of a capital loss of the affiliate referred to in the description of S; (b)the amount, if any, determined by the formula[U × (V – 0.5)] + (W × 0.5)whereUis the amount determined by the formulaU.1 + U.2 – U.3whereU.1is the hybrid underlying tax of the affiliate in respect of the other taxpayer at the end of the year,U.2is the amount, if any, by which the amount determined under the description of Q in paragraph (a) exceeds the amount determined under the description of R in that paragraph, andU.3is the amount, if any, by which the amount determined under the description of S in paragraph (a) exceeds the amount determined under the description of T in that paragraph,Vis the other taxpayer’s relevant tax factor (within the meaning assigned by subsection 95(1) of the Act) for its taxation year that includes the time that is immediately before the particular time, andWis the amount determined under paragraph (a). is the hybrid underlying tax of the affiliate in respect of the other taxpayer at the end of the year, is the amount, if any, by which the amount determined under the description of Q in paragraph (a) exceeds the amount determined under the description of R in that paragraph, and is the amount, if any, by which the amount determined under the description of S in paragraph (a) exceeds the amount determined under the description of T in that paragraph, is the amount determined under paragraph (a). For the purposes of the description of C in paragraph (a) of the description of X in subsection (13) and the description of Q in paragraph (a) of the description of Y in subsection (13), the amount by which the underlying foreign tax or the hybrid underlying tax, as the case may be, of the affiliate in respect of the other taxpayer at the end of the year would have increased if a disposition (referred to in this subsection as the “notional actual disposition”) deemed under paragraph 128.1(1)(b) of the Act of any property by the affiliate had been an actual disposition of the property by the affiliate is the total of all amounts each of which is the amount, if any, by which the amount (determined on the assumption that the notional actual disposition occurred at the time of the deemed disposition) that can reasonably be considered to be the amount of income or profits tax that the affiliate would, because of the notional actual disposition, have had to pay to the government of a particular country (other than Canada), in addition to any other income or profits tax otherwise payable to that government, in relation to the gain or income of the affiliate from the notional actual disposition the amount that can reasonably be considered to be the portion of the notional income or profits tax payable by the affiliate to the government of the particular country in relation to the gain or income of the affiliate from the notional actual disposition (determined on the assumptions that the notional actual disposition occurred immediately after the time that is immediately after the time of the deemed disposition and that the notional income or profits tax payable by the affiliate to the government of the particular country in relation to the notional actual disposition is equal to the amount determined under paragraph (a)) that, because of a comprehensive agreement or convention for the elimination of double taxation on income between the government of the particular country and the government of any other country, would not have been payable to the government of the particular country. For the purposes of the description of E in paragraph (a) of the description of X in subsection (13) and the description of S in paragraph (a) of the description of Y in subsection (13), the amount by which the underlying foreign tax or the hybrid underlying tax, as the case may be, of the affiliate in respect of the other taxpayer at the end of the year would have decreased if a disposition (referred to in this subsection as the “notional actual disposition”) deemed under paragraph 128.1(1)(b) of the Act of any property by the affiliate had been an actual disposition of the property by the affiliate is the total of all amounts each of which the amount, if any, by which the amount (determined on the assumption that the notional actual disposition occurred at the time of the deemed disposition) that can reasonably be considered to be the amount of income or profits tax that the affiliate would, because of the notional actual disposition, have had refunded to it by the government of a particular country (other than Canada), in addition to any other income or profits tax otherwise refundable by that government, in relation to the loss or capital loss, as the case may be, of the affiliate from the notional actual disposition the amount that can reasonably be considered to be the portion of the notional income or profits tax refundable to the affiliate by the government of the particular country in relation to the loss or capital loss, as the case may be, of the affiliate from the notional actual disposition (determined on the assumptions that the notional actual disposition occurred immediately after the time that is immediately after the time of the deemed disposition and that the notional income or profits tax refundable to the affiliate by the government of the particular country in relation to the notional actual disposition is equal to the amount determined by paragraph (a)) that, because of a comprehensive agreement or convention for the elimination of double taxation on income between the government of the particular country and the government of any other country, would not have been refundable by the government of the particular country. For the purposes of this subsection, subsections (2) to (7), paragraph 5902(2)(b) and section 5905, if at any time shares of a class of the capital stock of a foreign affiliate of a corporation resident in Canada are, based on the assumptions contained in paragraph 96(1)(c) of the Act, owned by a partnership, or are deemed under this subsection to be owned by a partnership, each member of the partnership is deemed to own at that time the number of shares of that class that is determined by the formula is the number of shares of that class that are so owned or so deemed owned by the partnership; is the fair market value of the member’s interest in the partnership at that time; and is the fair market value of all members’ interests in the partnership at that time. For the purposes of subsections (4) and 5905(1), (5) and (7.1), if a person is deemed by subsection (1) to own at a particular time a different number of shares of a class of the capital stock of a foreign affiliate of a corporation resident in Canada (which shares so deemed owned are referred to in this subsection as “affiliate shares”) than the person was deemed by that subsection to have owned immediately before the particular time, the number of affiliate shares equal to that difference is deemed to be disposed of, at the particular time, by the person, when that person is deemed to own fewer affiliate shares at the particular time than immediately before it; and acquired by, at the particular time, the person, when that person is deemed to own more affiliate shares at the particular time than immediately before it. if a partnership of which a person is a member at any time does not own, and (but for this subsection) is not deemed by subsection (1) to own, any shares of a class of the capital stock of the foreign affiliate at that time, subsection (1) is deemed to have applied in respect of the person and to have deemed the person to own, because of subsection (1) in respect of the partnership, no shares of that class at that time; and if a corporation resident in Canada or a foreign affiliate of such a corporation disposes of or acquires its entire interest in a partnership that, based on the assumptions contained in paragraph 96(1)(c) of the Act, owns shares of a class of the capital stock of a non-resident corporation, the corporation resident in Canada or the foreign affiliate, as the case may be, is deemed at the time that is immediately after the disposition or immediately before the acquisition, as the case may be, to own, because of subsection (1) in respect of the partnership, no shares of that class. For the purposes of subsection 5905(5), if at any time a corporation resident in Canada (referred to in this subsection as the “disposing corporation”) disposes of shares of a class of the capital stock of a foreign affiliate of the disposing corporation and, as a consequence of the same transaction or event (other than one to which neither paragraph (2)(a) nor paragraph (2)(b) applies) that caused the disposition, a taxable Canadian corporation with which the disposing corporation is not, at that time, dealing at arm’s length acquires shares of that class, the disposing corporation is, at that time, deemed to have disposed of, to the taxable Canadian corporation, the number of the shares of that class that is determined by the formula is the number of shares of that class disposed of by the disposing corporation; and (a)if the taxable Canadian corporation acquires, because of paragraph (2)(b), shares of that class, the fraction determined by the formulaC/DwhereCis the number of shares of that class that is deemed by that paragraph to be acquired by the taxable Canadian corporation as a result of the transaction or event, andDis the total of all amounts each of which is the number of shares of that class that is deemed by that paragraph to be acquired by a person as a result of the transaction or event, and if the taxable Canadian corporation acquires, because of paragraph (2)(b), shares of that class, the fraction determined by the formula is the number of shares of that class that is deemed by that paragraph to be acquired by the taxable Canadian corporation as a result of the transaction or event, and is the total of all amounts each of which is the number of shares of that class that is deemed by that paragraph to be acquired by a person as a result of the transaction or event, and (b)in any other case, one. in any other case, one. For the purposes of subsection 5905(5.1), if a predecessor corporation described in that subsection is, at the time that is immediately before the amalgamation described in that subsection, a member of a particular partnership that, based on the assumptions contained in paragraph 96(1)(c) of the Act, owns, at that time, shares of the capital stock of a foreign affiliate of the predecessor corporation and the predecessor corporation’s interest in the particular partnership, or in another partnership that is a member of the particular partnership, becomes, upon the amalgamation, property of the new corporation described in that subsection, the shares of the capital stock of the affiliate that are deemed under subsection (1) to be owned by the predecessor corporation at that time are deemed to become property of the new corporation upon the amalgamation. In applying subsection 5905(5.2), if the corporation is a member of a partnership that, based on the assumptions contained in paragraph 96(1)(c) of the Act, owns shares (referred to individually in paragraph (a) as a “relevant share”) of the affiliate’s capital stock at the particular time, for the purposes of the description of B in subsection 5905(5.2), the corporation’s cost amount of each relevant share at the particular time is to be determined by the formula is the partnership’s cost amount of that relevant share at the particular time, is the number of shares of the capital stock of the affiliate that are deemed by subsection (1), in respect of the partnership, to be owned by the corporation at the particular time, and is the total number of relevant shares at the particular time; and for the purposes of paragraph (b) of the description of C in subsection 5905(5.2), the amount determined under this paragraph is the total of all amounts each of which is the amount that would be the corporation’s portion of a gain that would be deemed under subsection 92(5) of the Act to be a gain of the member of the partnership from the disposition of a share of the capital stock of the affiliate by the partnership if that share were disposed of immediately before the particular time. For the purposes of paragraph 5905(5.4)(b), the amount determined by this subsection is the amount determined by the following formula for shares of the capital stock of a foreign affiliate of the subsidiary that were deemed by subsection (1), in respect of the partnership, to be owned by the subsidiary at the time at which the parent last acquired control of the subsidiary: is the tax-free surplus balance of the affiliate, in respect of the subsidiary, at that time; and is the percentage that would be the subsidiary’s surplus entitlement percentage in respect of the affiliate at that time if the only shares of that capital stock that were owned at that time by the subsidiary were the shares of that capital stock that were deemed by subsection (1), in respect of the partnership, to be owned by the subsidiary at the time at which the parent last acquired control of the subsidiary. If a particular corporation resident in Canada or a particular foreign affiliate of a particular corporation resident in Canada is a member of a particular partnership, the particular partnership owns (based on the assumptions contained in paragraph 96(1)(c) of the Act) shares of a class of the capital stock of a foreign affiliate of the particular corporation and the particular partnership disposes of any of those shares, any reference in this Part (other than subsections 5902(5) and (6)) to subsection 93(1) of the Act is deemed to include a reference to subsection 93(1.2) of the Act; an election under subsection 93(1.2) of the Act by the particular corporation is to be made by filing the prescribed form with the Minister on or before where the particular corporation is the disposing corporation referred to in that subsection, the particular corporation’s filing-due date for its taxation year that includes the last day of the particular partnership’s fiscal period in which the disposition was made, and where the particular affiliate is the disposing corporation referred to in that subsection, the particular corporation’s filing-due date for its taxation year that includes the last day of the particular affiliate’s taxation year that includes the last day of the disposing partnership’s fiscal period in which the disposition was made; and the prescribed amount for the purposes of subparagraph 93(1.2)(a)(ii) of the Act is the lesser of the taxable capital gain, if any, of the particular affiliate otherwise determined in respect of the disposition, and is the fraction referred to in paragraph 38(a) of the Act that applies to the particular affiliate’s taxation year that includes the last day of the particular partnership’s fiscal period that includes the time of the disposition, is the amount that could reasonably be expected to have been received in respect of all the shares of that class if the second foreign affiliate referred to in subsection 93(1.2) of the Act had, immediately before that time, paid dividends, on all shares of its capital stock, the total of which was equal to the amount determined under subparagraph 5902(1)(a)(i) to be its net surplus in respect of the particular corporation, is the number of shares of that class that is determined under subsection 93(1.3) of the Act, and is the total number of issued shares of that class immediately before that time. For the purposes of this Part, except to the extent that the context otherwise requires, if a person or partnership is (or is deemed by this subsection to be) a member of a particular partnership that is a member of another partnership, the person or partnership is deemed to be a member of the other partnership. For the purposes of paragraph 95(2)(j) of the Act, the adjusted cost base to a foreign affiliate of a taxpayer of an interest in a partnership at any time is prescribed to be the cost to the affiliate of the interest as otherwise determined at that time, and for those purposes there shall be added to that cost such of the following amounts as are applicable: any amount included in the affiliate’s earnings for a taxation year ending after 1971 and before that time that may reasonably be considered to relate to profits of the partnership, the affiliate’s incomes as described by the description of A in the definition foreign accrual property income in subsection 95(1) of the Act for a taxation year ending after 1971 and before that time that can reasonably be considered to relate to profits of the partnership, any amount included in computing the exempt earnings or taxable earnings, as the case may be, of the affiliate for a taxation year ending after 1971 and before that time that may reasonably be considered to relate to a capital gain of the partnership, any amount included in computing the hybrid surplus or hybrid deficit of the affiliate before that time that may reasonably be considered to relate to a capital gain of the partnership, where the affiliate has, at any time before that time and in a taxation year ending after 1971, made a contribution of capital to the partnership otherwise than by way of a loan, such part of the amount of the contribution as cannot reasonably be regarded as a gift made to or for the benefit of any other member of the partnership who was related to the affiliate, such portion of any income or profits tax refunded before that time by the government of a country to the partnership as may reasonably be regarded as tax refunded in respect of an amount described in any of subparagraphs (b)(i) to (iii), and the amount, if any, determined under paragraph (11)(b); there shall be deducted from that cost such of the following amounts as are applicable: any amount included in the affiliate’s loss for a taxation year ending after 1971 that may reasonably be considered to relate to a loss of the partnership, the affiliate’s losses as described by the description of D in the definition foreign accrual property income in subsection 95(1) of the Act for a taxation year ending after 1971 and before that time that can reasonably be considered to relate to the losses of the partnership, any amount included in computing the exempt loss or taxable loss, as the case may be, of the affiliate for a taxation year ending after 1971 and before that time that may reasonably be considered to relate to a capital loss of the partnership, any amount included in computing the hybrid surplus or hybrid deficit of the affiliate before that time that may reasonably be considered to relate to a capital loss of the partnership, any amount received by the affiliate before that time and in a taxation year ending after 1971 as, on account or in lieu of payment of, or in satisfaction of, a distribution of the affiliate’s share of the partnership profits or partnership capital, and such portion of any income or profits tax paid before that time to the government of a country by the partnership as may reasonably be regarded as tax paid in respect of an amount described in any of subparagraphs (a)(i) to (iii); and for greater certainty, where any interest of a foreign affiliate in a partnership was reacquired by the affiliate after having been previously disposed of, no adjustment that was required to be made under this subsection before such reacquisition shall be made under this subsection to the cost to the affiliate of the interest as reacquired property of the affiliate. If at any time a partnership owns, based on the assumptions contained in paragraph 96(1)(c) of the Act, a share of the capital stock of a particular foreign affiliate of a corporation resident in Canada and one or more members of the partnership is at that time a direct holder referred to in paragraph 5905(7.6)(a) or a subordinate affiliate referred to in paragraph 5905(7.6)(b), the following rules apply: for the purposes of paragraph 92(1.1)(b) of the Act, there is to be added, in computing at or after that time the partnership’s adjusted cost base of the share, the total of all amounts each of which is the amount determined, in respect of an acquired affiliate referred to in subsection 5905(7.6), by the formula is the amount, if any, determined under paragraph 5905(7.2)(a) in respect of the acquired affiliate, and is the percentage that would, if the partnership were a corporation resident in Canada, be the partnership’s surplus entitlement percentage in respect of the acquired affiliate, at the adjustment time, if the partnership owned only the share; for the purposes of subparagraph (10)(a)(vi), the amount determined under this paragraph, in respect of the interest in the partnership of the direct holder or the subordinate affiliate, is the amount determined by the formula is the total of all amounts each of which is the amount, if any, determined under paragraph (a) in respect of a share of the capital stock of the particular affiliate, is the fair market value, at the adjustment time, of the interest in the partnership of the direct holder or the subordinate affiliate, as the case may be, and is the fair market value, at the adjustment time, of all members’ interests in the partnership; and no amount is to be added under subsection 5905(7.6) to the direct holder’s or the subordinate affiliate’s adjusted cost base of the share. For the purposes of paragraph 5905(7.7)(b), the amount determined under this subsection is the amount determined by the formula is the adjustment amount; is the fair market value, at the adjustment time, of the interest in the partnership that is referred to in paragraph 92(1.1)(b) of the Act of the particular foreign affiliate that is referred to in paragraph 93(3)(c) of the Act; and is the fair market value, at the adjustment time, of all members’ interests in the partnership. For the purposes of clauses 5907(2.9)(a)(i)(B) and (ii)(B), the amount determined under this subsection is, subject to subsection (14), the amount determined by the formula (a)if clause 5907(2.9)(a)(i)(B) applies, the amount determined under clause 5907(2.9)(a)(i)(A), and if clause 5907(2.9)(a)(i)(B) applies, the amount determined under clause 5907(2.9)(a)(i)(A), and (b)if clause 5907(2.9)(a)(ii)(B) applies, the amount determined under clause 5907(2.9)(a)(ii)(A), if clause 5907(2.9)(a)(ii)(B) applies, the amount determined under clause 5907(2.9)(a)(ii)(A), is the affiliate’s direct or indirect share of the partnership’s income or loss for the preceding taxation year, and is the partnership’s income or loss for the preceding taxation year. For the purposes of subsection (13), if both the income and loss of the partnership for the preceding taxation year are nil, the descriptions of B and C in the formula in that subsection are to be applied as if the partnership had income for that year in the amount of $1,000,000. [Repealed, 2013, c. 34, s. 28] If a foreign affiliate of a corporation resident in Canada carries on in a particular taxation year an active business that is a foreign oil and gas business in a taxing country, the affiliate is deemed for the purposes of this Part to have paid for the particular year, as an income or profits tax to the government of the taxing country in respect of its earnings from the business for the particular year, an amount equal to the lesser of is the percentage determined under subsection (2) for the particular year, is the affiliate’s earnings from the business for the particular year, and is the total of all amounts each of which is an amount that would, but for this subsection, be an income or profits tax paid to the government of the taxing country by the affiliate for the particular year in respect of its earnings from the business for the particular year; and the affiliate’s production tax amount for the business in the taxing country for the particular year. The percentage determined under this subsection for the particular year is the percentage determined by the formula is the percentage set out in paragraph 123(1)(a) of the Act for the corporation’s taxation year that includes the last day of the particular year; and is the corporation’s general rate reduction percentage (within the meaning assigned by subsection 123.4(1) of the Act) for that taxation year of the corporation. [Repealed, 2013, c. 34, s. 87] In this section, foreign oil and gas business, production tax amount and taxing country have the meanings assigned by subsection 126(7) of the Act. A listed election is to be made by the taxpayer and, if applicable, the disposing affiliate by so notifying the Minister in writing on or before if the taxpayer is a partnership, the earliest of the filing-due dates of any member of the partnership for the member’s taxation year that includes the last day of the partnership’s fiscal period that includes the last day of the foreign affiliate’s taxation year that includes the time of distribution of a distributed property; and in any other case, the taxpayer’s filing-due date for its taxation year that includes the last day of the foreign affiliate’s taxation year that includes the time of distribution of a distributed property. For the purposes of subsection (1), a listed election is any of the following: an election by the taxpayer under subsection 88(3.1) of the Act in respect of a liquidation and dissolution of a disposing affiliate; an election by the taxpayer under subsection 88(3.3) of the Act in respect of a distribution of distributed property; and a joint election by the taxpayer and a disposing affiliate under subsection 88(3.5) of the Act in respect of a distribution of distributed property. Subsection (4) applies if a taxpayer has made an election (referred to in this subsection and subsection (4) as the “initial election”) under subsection 88(3.3) of the Act in respect of a distribution of distributed property on or before the filing-due date specified in subsection (1); the taxpayer made reasonable efforts to determine all amounts, in respect of the disposing affiliate, that may reasonably be considered to be relevant in making the claim under the initial election; and the taxpayer amends the initial election on or before the day that is 10 years after the filing-due date referred to in paragraph (a). If this subsection applies and, in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the initial election to be amended, the amended election under paragraph (3)(c) is deemed to have been made on the day on which the initial election was made and the initial election is deemed not to have been made. An election under the definition relevant cost base in subsection 95(4) of the Act in respect of a property of a foreign affiliate of a taxpayer, in respect of the taxpayer, is to be made by the taxpayer by so notifying the Minister in writing on or before if the taxpayer is a partnership, the earliest of the filing-due dates of any member of the partnership for the member’s taxation year that includes the last day of the partnership’s fiscal period that includes the last day of the foreign affiliate’s taxation year in which the determination of the relevant cost base of the property, in respect of the taxpayer, is relevant; and in any other case, the taxpayer’s filing-due date for its taxation year that includes the last day of the foreign affiliate’s taxation year in which the determination of the relevant cost base of the property, in respect of the taxpayer, is relevant. An election, or joint election, as the case may be, under subsection 90(3) of the Act in respect of a distribution made by a foreign affiliate of a taxpayer is to be made by the taxpayer, or by the taxpayer and each connected person or partnership referred to in that subsection, as the case may be, by so notifying the Minister in writing on or before in the case of an election by the taxpayer, if the taxpayer is a partnership, the earliest of the filing-due dates of any member of the partnership for the member’s taxation year that includes the last day of the partnership’s fiscal period in which the distribution was made, and in any other case, the taxpayer’s filing-due date for its taxation year that includes the last day of the foreign affiliate’s taxation year in which the distribution was made; and in the case of a joint election, the earliest of the filing-due dates that would be determined under paragraph (a) for each taxpayer that is required to make the joint election if there were no connected persons or partnerships in respect of the taxpayer. For the purpose of clause 122.3(1)(b)(i)(C) of the Act, a prescribed activity is an activity performed under contract with the United Nations. An election under subsection 138.1(4) of the Act by the trustee of a related segregated fund trust shall be made by filing with the Minister the prescribed form within 90 days from the end of the taxation year of the trust in respect of any capital property deemed to have been disposed of in that taxation year by virtue of the election. For the purposes of subsection 39(6) of the Act, a prescribed security is, with respect to the taxpayer referred to in subsection 39(4) of the Act, a share of the capital stock of a corporation, other than a public corporation, the value of which is, at the time it is disposed of by that taxpayer, a value that is or may reasonably be considered to be wholly or primarily attributable to real property, an interest therein or an option in respect thereof, Canadian resource property or a property that would have been a Canadian resource property if it had been acquired after 1971, foreign resource property or a property that would have been a foreign resource property if it had been acquired after 1971, or any combination of properties described in subparagraphs (i) to (iii) owned by the corporation, a person other than the corporation, or a partnership; a bond, debenture, bill, note, mortgage or similar obligation, issued by a corporation, other than a public corporation, if at any time before that taxpayer disposes of the security he does not deal at arm’s length with the corporation; a security that is a share, or a bond, debenture, bill, note, mortgage or similar obligation that was acquired by the taxpayer from a person with whom the taxpayer does not deal at arm’s length (other than from a person subject to subsection 39(4) of the Act for the person’s taxation year that includes the time of the acquisition); a security described in subparagraph (c)(i) or (ii) that was acquired by the taxpayer from a person (other than from a person subject to subsection 39(4) of the Act for the person’s taxation year that includes the time of the acquisition) in circumstances to which subsection 85(1) or (2) of the Act applied; a share acquired by that taxpayer under circumstances referred to in section 66.3 of the Act; or a security described in subparagraph (c)(i) or (ii) that was acquired by the taxpayer as proceeds of disposition for a security of the taxpayer to which paragraph (a), (b), (c) or (d) applied in respect of the taxpayer, or as a result of one or more transactions that can reasonably be considered to have been an exchange or substitution of a security of the taxpayer to which paragraph (a), (b), (c) or (d) applied in respect of the taxpayer. For the purposes of paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share last acquired before June 29, 1982 and of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share unless more than 10 per cent of the issued and outstanding shares of that class are owned by the owner of that share; or the owner of that share and persons related to him.

For the purposes of paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share acquired after June 28, 1982 and of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that receives a dividend at the particular time in respect of the share unless where the other corporation is a restricted financial institution, the share is not a taxable preferred share, dividends (other than dividends received on shares prescribed under subsection (5)) are received at the particular time by the other corporation or by the other corporation and restricted financial institutions with which the other corporation does not deal at arm’s length, in respect of more than 5 per cent of the issued and outstanding shares of that class, and a dividend is received at the particular time by the other corporation or a restricted financial institution with which the other corporation does not deal at arm’s length, in respect of a share (other than a share prescribed under subsection (5)) of that class acquired after December 15, 1987 and before the particular time; where the other corporation is a restricted financial institution, the share is not a taxable preferred share, was acquired after December 15, 1987 and before the particular time, and was, by reason of subparagraph (h)(i), (ii), (iii) or (v) of the definition term preferred share in subsection 248(1) of the Act, deemed to have been issued after December 15, 1987 and before the particular time; or in any case, dividends (other than dividends received on shares prescribed under subsection (5)) are received at the particular time by the other corporation or by the other corporation and persons with whom the other corporation does not deal at arm’s length in respect of more than 10 per cent of the issued and outstanding shares of that class. For the purposes of paragraph 112(2.2)(g) of the Act and paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share of any of the following series of preferred shares of the capital stock of Massey-Ferguson Limited issued after July 15, 1981 and before March 23, 1982 is a prescribed share: $25 Cumulative Redeemable Retractable Convertible Preferred Shares, Series C; $25 Cumulative Redeemable Retractable Preferred Shares, Series D; or $25 Cumulative Redeemable Retractable Convertible Preferred Shares, Series E. For the purposes of the definition taxable RFI share in subsection 248(1) of the Act, a share of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that is a restricted financial institution that receives a dividend at the particular time in respect of the share unless dividends (other than dividends received on shares prescribed under subsection (5.1)) are received at that time by the other corporation, or by the other corporation and restricted financial institutions with which the other corporation does not deal at arm’s length, in respect of more than 10 per cent of the shares of that class that were issued and outstanding at the last time, before the particular time, at which the other corporation or a restricted financial institution with which the other corporation does not deal at arm’s length acquired a share of that class, where no dividend is received at the particular time by any such corporation in respect of a share (other than a share prescribed under subsection (5.1)) of that class acquired after December 15, 1987 and before the particular time; or 5 per cent of the shares of that class that were issued and outstanding at the last time, before the particular time, at which the other corporation or a restricted financial institution with which the other corporation does not deal at arm’s length acquired a share of that class, where a dividend is received at the particular time by any such corporation in respect of a share (other than a share prescribed under subsection (5.1)) of that class acquired after December 15, 1987 and before the particular time. For the purpose of paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that is registered or licensed under the laws of a province to trade in securities and that holds the share for the purpose of sale in the course of the business ordinarily carried on by it unless it may reasonably be considered that the share was acquired as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.1) of the Act; or the share was not acquired by the other corporation in the course of an underwriting of shares of that class to be distributed to the public and dividends are received at the particular time by the other corporation or by the other corporation and corporations controlled by the other corporation in respect of more than 10 per cent of the issued and outstanding shares of that class, the other corporation is a restricted financial institution and dividends are received at the particular time by the other corporation or by the other corporation and corporations controlled by the other corporation in respect of more than five per cent of the issued and outstanding shares of that class, and a dividend is received at the particular time by the other corporation or a corporation controlled by the other corporation in respect of a share of that class acquired after December 15, 1987 and before the particular time, or the other corporation is a restricted financial institution and the share was, by reason of subparagraph (h)(i), (ii), (iii) or (v) of the definition term preferred share in subsection 248(1) of the Act, deemed to have been issued after December 15, 1987 and before the particular time. For the purpose of the definition taxable RFI share in subsection 248(1) of the Act, a share of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that is registered or licensed under the laws of a province to trade in securities and that holds the share for the purpose of sale in the course of the business ordinarily carried on by it unless it may reasonably be considered that the share was acquired as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of section 187.3 of the Act; or dividends are received at the particular time by the other corporation, or by the other corporation and corporations controlled by the other corporation, in respect of more than 10 per cent of the shares of that class issued and outstanding at the last time before the particular time at which any such corporation acquired a share of that class, dividends are received at the particular time by the other corporation, or by the other corporation and corporations controlled by the other corporation, in respect of more than 5 per cent of the shares of that class issued and outstanding at the last time before the particular time at which any such corporation acquired a share of that class, and a dividend is received at the particular time by the other corporation, or a corporation controlled by the other corporation, in respect of a share of that class acquired after December 15, 1987 and before the particular time, or was, because of subparagraph (h)(i), (ii), (iii) or (v) of the definition term preferred share in subsection 248(1) of the Act, deemed to have been issued after December 15, 1987 and before the particular time. For the purposes of paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, a share of the capital stock of a corporation that is a member institution of a deposit insurance corporation, within the meaning assigned by section 137.1 of the Act, is a prescribed share with respect to the deposit insurance corporation and any subsidiary wholly-owned corporation of the deposit insurance corporation deemed by subsection 137.1(5.1) of the Act to be a deposit insurance corporation. For the purposes of the definition taxable preferred share in subsection 248(1) of the Act, the following shares are prescribed shares at any particular time: the 8.5 per cent Cumulative Redeemable Convertible Class A Preferred Shares of St. Marys Paper Inc. issued on July 7, 1987, where such shares are not deemed, by reason of paragraph (e) of the definition taxable preferred share in subsection 248(1) of the Act, to have been issued after that date and before the particular time; and the Cumulative Redeemable Preferred Shares of CanUtilities Holdings Ltd. issued before July 1, 1991, unless the amount of the consideration for which all such shares were issued exceeds $300,000,000 or the particular time is after July 1, 2001. For the purposes of paragraph 112(2.2)(d) of the Act, paragraph (i) of the definition short-term preferred share, the definition taxable preferred share in paragraph (f) of the definition term preferred share in subsection 248(1) of the Act, the Exchangeable Preference Shares of Canada Cement Lafarge Ltd. (in this subsection referred to as the “subject shares”), the Exchangeable Preference Shares of Lafarge Canada Inc. and the shares of any corporation formed as a result of an amalgamation or merger of Lafarge Canada Inc. with one or more other corporations are prescribed shares at any particular time where the terms and conditions of such shares at the particular time are the same as, or substantially the same as, the terms and conditions of the subject shares as of June 18, 1987 and, for the purposes of this subsection, the amalgamation or merger of one or more corporations with another corporation formed as a result of an amalgamation or merger of Lafarge Canada Inc. with one or more other corporations shall be deemed to be an amalgamation of Lafarge Canada Inc. with another corporation. For the purposes of determining under subsections (2), (4), (5) and (5.1) the time at which a share of a class of the capital stock of a corporation was acquired by a taxpayer, shares of that class acquired by the taxpayer at any particular time before a disposition by the taxpayer of shares of that class shall be deemed to have been disposed of before shares of that class acquired by the taxpayer before that particular time. For the purposes of subsections (2), (4), (5) and (5.1) and this subsection, where a taxpayer is a beneficiary of a trust and an amount in respect of the beneficiary has been designated by the trust in a taxation year pursuant to subsection 104(19) of the Act, the taxpayer shall be deemed to have received the amount so designated at the time it was received by the trust; and where a taxpayer is a member of a partnership and a dividend has been received by the partnership, the taxpayer’s share of the dividend shall be deemed to have been received by the taxpayer at the time the dividend was received by the partnership. For the purposes of subsections (2), (4), (5) and (5.1), a share of the capital stock of a corporation acquired by a person after December 15, 1987 pursuant to an agreement in writing entered into before December 16, 1987 shall be deemed to have been acquired by that person before December 16, 1987; a share of the capital stock of a corporation acquired by a person after December 15, 1987 and before July, 1988 as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice filed before December 16, 1987 with a public authority pursuant to and in accordance with the securities legislation of the jurisdiction in which the shares were distributed shall be deemed to have been acquired by that person before December 16, 1987; where a share that was owned by a particular restricted financial institution on December 15, 1987 has, by one or more transactions between related restricted financial institutions, been transferred to another restricted financial institution, the share shall be deemed to have been acquired by the other restricted financial institution before that date and after June 28, 1982 unless at any particular time after December 15, 1987 and before the share was transferred to the other restricted financial institution the share was owned by a shareholder who, at that particular time, was a person other than a restricted financial institution related to the other restricted financial institution; and where at any particular time there has been an amalgamation (within the meaning assigned by section 87 of the Act) and each of the predecessor corporations (within the meaning assigned by section 87 of the Act) was a restricted financial institution throughout the period beginning December 16, 1987 and ending at the particular time and the predecessor corporations were related to each other throughout that period, or each of the predecessor corporations and the new corporation (within the meaning assigned by section 87 of the Act) is a corporation described in any of paragraphs (a) to (d) of the definition restricted financial institution in subsection 248(1) of the Act, a share acquired by the new corporation from a predecessor corporation on the amalgamation shall be deemed to have been acquired by the new corporation at the time it was acquired by the predecessor corporation. For the purposes of paragraph 66(15)(d.1) and subparagraphs 66.1(6)(a)(v), 66.2(5)(a)(v) and 66.4(5)(a)(iii) of the Act, a share of a class of the capital stock of a corporation (in this section referred to as the “issuing corporation”) is a prescribed share if it was issued after December 31, 1982 and the issuing corporation, any person related to the issuing corporation or of whom the issuing corporation has effective management or control or any partnership or trust of which the issuing corporation or a person related thereto is a member or beneficiary (each of which is referred to in this section as a “member of the related issuing group”) is or may be required to redeem, acquire or cancel, in whole or in part, the share or to reduce its paid-up capital at any time within five years from the date of its issue, a member of the related issuing group provides or may be required to provide any form of guarantee, security or similar indemnity with respect to the share (other than a guarantee, security or similar indemnity with respect to any amount of assistance or benefit from a government, municipality or other public authority in Canada or with respect to eligibility for such assistance or benefit) that could take effect within five years from the date of its issue, the share (referred to in this section as the “convertible share”) is convertible under its terms or conditions at any time within five years from the date of its issue directly or indirectly into debt, or into a share (referred to in this section as the “acquired share”) that is, or if issued would be, a prescribed share, immediately after the share was issued, the person to whom the share was issued or a person related to the person to whom the share was issued (either alone or together with a related person, a related group of persons of which he is a member or a partnership or trust of which he is a member or beneficiary) controls directly or indirectly, or has an absolute or contingent right to control directly or indirectly or to acquire direct or indirect control of, the issuing corporation and the issuing corporation has the right under the terms and conditions in respect of which the share was issued to redeem, purchase or otherwise acquire the share within five years from the date of its issue, at the time the share was issued, the existence of the issuing corporation was, or there was an arrangement (other than an amalgamation within the meaning assigned by subsection 87(1) of the Act) under which the existence of the issuing corporation could be, limited to a period that ends within five years from the date of its issue, or the terms or conditions of the share (referred to in this paragraph as the “first share”) or of an agreement in existence at the time of its issue provide that a share (referred to in this section as the “substituted share”) that is, or if issued would be, a prescribed share may be substituted or exchanged for the first share within five years from the date of issue of the first share, but does not include a share of the capital stock of a corporation that was issued after December 31, 1982 pursuant to an agreement or offering in writing made on or before December 31, 1982 or in accordance with a prospectus, registration statement or similar document that was filed with and, where required by law, accepted for filing by, a public authority in Canada pursuant to and in accordance with the laws of Canada or of any province on or before December 31, 1982, that would be a prescribed share solely by virtue of one or more of the terms or conditions of an agreement if such terms or conditions are not effective or exercisable until the death, disability or bankruptcy of the person to whom the share is issued, convertible under its terms into one or more shares of a class of the capital stock of the corporation for no consideration other than the share or shares, described in paragraph (a) solely because it is to be cancelled on the conversion within five years from the date of its issue, its paid-up capital is to be reduced on the conversion within five years from the date of its issue, or both clauses (A) and (B) apply, and not described in paragraph (c), or may have a share substituted or exchanged for it pursuant to its terms or the terms or conditions of an agreement in existence at the time of its issue and no consideration is to be received or receivable for it in respect of the substitution or exchange other than the share substituted or exchanged for it, is described in paragraph (a) solely because it is to be redeemed, acquired or cancelled on the substitution or exchange within five years from the date of its issue, and is not a share to which paragraph (f) applies, and for the purposes of this section, where a person has an interest in a trust, whether directly or indirectly, through an interest in any other trust or in any other manner whatever, the person shall be deemed to be a beneficiary of the trust; in determing whether an acquired share would be a prescribed share if issued, the references in paragraphs (a), (b), (d) and (e) to “date of its issue” shall be read as “date of the issue of the convertible share”, the reference in paragraph (f) to “issue of the first share” shall be read as “issue of the convertible share”, and this section shall be read without reference to paragraph (g) and to the words “after December 31, 1982”; in determining whether a substituted share would be a prescribed share if issued, the references in paragraphs (a) to (e) to “date of its issue” shall be read as “date of the issue of the first share”, and an excluded obligation in relation to a share of a class of the capital stock of the issuing corporation and an obligation that would be an excluded obligation in relation to the share if the share had been issued after June 17, 1987, shall be deemed not to be a guarantee, security or similar indemnity with respect to the share for the purposes of paragraph (b); a guarantee, security or similar indemnity referred to in paragraph (b) shall, for greater certainty, not be considered to take effect within five years from the date of issue of a share if the effect of the guarantee, security or indemnity is to provide that a member of the related issuing group will be able to redeem, acquire or cancel the share at a time that is not within five years from the date of issue of the share; and where an expense is incurred partly in consideration for shares (referred to in this section as “first corporation shares”) of the capital stock of one corporation and partly in consideration for an interest in, or right to, shares (referred to in this paragraph as “second corporation shares”) of the capital stock of another corporation, in determining whether the second corporation shares are prescribed shares, the references in paragraphs (a), (d) and (e) to “date of its issue” shall be read as “date of the issue of the first corporation shares”. For the purposes of paragraph 66(15)(d.1) of the Act, subsection (1) does not apply in respect of a share of the capital stock of an issuing corporation that is a new share. For the purposes of the definition flow-through share in subsection 66(15) of the Act, a new share of the capital stock of a corporation is a prescribed share if, at the time it is issued, under the terms or conditions of the share or any agreement in respect of the share or its issue, the amount of the dividends that may be declared or paid on the share (in this section referred to as the “dividend entitlement”) may reasonably be considered to be, by way of a formula or otherwise, fixed, limited to a maximum, or established to be not less than a minimum (including any amount determined on a cumulative basis), where with respect to the dividends that may be declared or paid on the share there is a preference over any other dividends that may be declared or paid on any other share of the capital stock of the corporation, the amount that the holder of the share is entitled to receive in respect of the share on the dissolution, liquidation or winding-up of the corporation, on a reduction of the paid-up capital of the share or on the redemption, acquisition or cancellation of the share by the corporation or by specified persons in relation to the corporation (in this section referred to as the “liquidation entitlement”) may reasonably be considered to be, by way of a formula or otherwise, fixed, limited to a maximum or established to be not less than a minimum, the share is convertible or exchangeable into another security issued by the corporation unless it is convertible or exchangeable only into another share of the corporation that, if issued, would not be a prescribed share, a right (including a right conferred by a warrant) that if it were issued, would not be a prescribed right, and if it were exercised, would allow the person exercising it to acquire only a share of the corporation that, if the share were issued, would not be a prescribed share, or both a share described in subclause (I) and a right described in subclause (II), and all the consideration receivable by the holder on the conversion or exchange of the share is the share described in subclause (A)(I) or the right described in subclause (A)(II), or both, as the case may be, or the corporation has, either absolutely or contingently, an obligation to reduce, or any person or partnership has, either absolutely or contingently, an obligation to cause the corporation to reduce, the paid-up capital in respect of the share (other than pursuant to a conversion or exchange of the share, where the right to so convert or exchange does not cause the share to be a prescribed share under subparagraph (iii)); any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share) to provide assistance, to make a loan or payment, to transfer property, or otherwise to confer a benefit by any means whatever, including the payment of a dividend, either immediately or in the future, that may reasonably be considered to be, directly or indirectly, a repayment or return by the corporation or a specified person in relation to the corporation of all or part of the consideration for which the share was issued or for which a partnership interest was issued in a partnership that acquires the share; any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share) to effect any undertaking, either immediately or in the future, with respect to the share or the agreement under which the share is issued (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the share or, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members of the partnership, as the case may be) that may reasonably be considered to have been given to ensure, directly or indirectly, that any loss that the holder of the share and, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members of the partnership, as the case may be, may sustain by reason of the holding, ownership or disposition of the share or any other property is limited in any respect, or the holder of the share and, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members of the partnership, as the case may be, will derive earnings by reason of the holding, ownership or disposition of the share or any other property; the corporation or a specified person in relation to the corporation may reasonably be expected to acquire or cancel the share in whole or in part otherwise than on a conversion or exchange of the share that meets the conditions set out in clauses (a)(iii)(A) and (B), to reduce the paid-up capital of the corporation in respect of the share otherwise than on a conversion or exchange of the share that meets the conditions set out in clauses (a)(iii)(A) and (B), or to make a payment, transfer or other provision, (otherwise than pursuant to an excluded obligation in relation to the share), directly or indirectly, by way of a dividend, loan, purchase of shares, financial assistance to any purchaser of the share or, where the purchaser is a partnership, the members thereof or in any other manner whatever, that may reasonably be considered to be a repayment or return of all or part of the consideration for which the share was issued or for which a partnership interest was issued in a partnership that acquires the share, within 5 years after the date the share is issued, otherwise than as a consequence of an amalgamation of a subsidiary wholly-owned corporation, a winding-up of a subsidiary wholly-owned corporation to which subsection 88(1) of the Act applies or the payment of a dividend by a subsidiary wholly-owned corporation to its parent; any person or partnership can reasonably be expected to effect, within 5 years after the date the share is issued, any undertaking which, if it were in effect at the time the share was issued, would result in the share being a prescribed share by reason of paragraph (c); or it may reasonably be expected that, within five years after the date the share is issued, any of the terms or conditions of the share or any existing agreement relating to the share or its issue will thereafter be modified, or any new agreement relating to the share or its issue will be entered into, in such a manner that the share would be a prescribed share if it had been issued at the time of the modification or at the time when the new agreement is entered into. For the purpose of the definition flow-through share in subsection 66(15) of the Act, a new right to acquire a share of the capital stock of a corporation is a prescribed right if, at the time the right is issued, the amount that the holder of the right is entitled to receive in respect of the right on the dissolution, liquidation or winding-up of the corporation or on the redemption, acquisition or cancellation of the right by the corporation or by specified persons in relation to the corporation (referred to in this section as the “liquidation entitlement” of the right) can reasonably be considered to be, by way of a formula or otherwise, fixed, limited to a maximum or established to be not less than a minimum; the right is convertible or exchangeable into another security issued by the corporation unless the right is convertible or exchangeable only into a share of the corporation that, if issued, would not be a prescribed share, another right (including a right conferred by a warrant) that both a share described in clause (A) and a right described in clause (B), and all the consideration receivable by the holder on the conversion or exchange of the right is the share described in clause (A) or the right described in clause (B), or both, as the case may be; any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the right) to otherwise confer a benefit by any means whatever, including the payment of a dividend, either immediately or in the future, that can reasonably be considered to be, directly or indirectly, a repayment or return by the corporation or a specified person in relation to the corporation of all or part of the consideration for which the right was issued or for which a partnership interest was issued in a partnership that acquires the right; any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the right) to effect any undertaking, either immediately or in the future, with respect to the right or the agreement under which the right is issued (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the right or where the holder is a partnership, the members of the partnership or specified persons in relation to the holder or the members of the partnership, as the case may be) that can reasonably be considered to have been given to ensure, directly or indirectly, that any loss that the holder of the right and, where the holder is a partnership, the members of the partnership or specified persons in relation to the holder or the members of the partnership, as the case may be, may sustain because of the holding, ownership or disposition of the right or any other property is limited in any respect, or the holder of the right and, where the holder is a partnership, the members of the partnership or specified persons in relation to the holder or the members of the partnership, as the case may be, will derive earnings, because of the holding, ownership or disposition of the right or any other property; the corporation or a specified person in relation to the corporation can reasonably be expected to acquire or cancel the right in whole or in part otherwise than on a conversion or exchange of the right that meets the conditions set out in subparagraphs (b)(i) and (ii), or to make a payment, transfer or other provision (otherwise than pursuant to an excluded obligation in relation to the right), directly or indirectly, by way of a dividend, loan, purchase of rights, financial assistance to any purchaser of the right or, where the purchaser is a partnership, the members of the partnership or in any other manner whatever, that can reasonably be considered to be a repayment or return of all or part of the consideration for which the right was issued or for which a partnership interest was issued in a partnership that acquires the right, within five years after the date the right is issued, otherwise than as a consequence of an amalgamation of a subsidiary wholly-owned corporation, a winding-up of a subsidiary wholly-owned corporation to which subsection 88(1) of the Act applies or the payment of a dividend by a subsidiary wholly-owned corporation to its parent; any person or partnership can reasonably be expected to effect, within five years after the day the right is issued, any undertaking which, if it were in effect at the time the right was issued, would result in the right being a prescribed right because of paragraph (d); it can reasonably be expected that, within five years after the date the right is issued, any of the terms or conditions of the right or any existing agreement relating to the right or its issue will be modified in such a manner that the right would be a prescribed right if it had been issued at the time of the modification, or any new agreement relating to the right or its issue will be entered into in such a manner that the right would be a prescribed right if it had been issued at the time the new agreement is entered into; or it can reasonably be expected that the right, if exercised, would allow the person exercising the right to acquire a share in a corporation that, if that share were issued, would be a prescribed share within five years after the day the right was issued. For the purposes of the definition flow-through share in subsection 66(15) of the Act, a new share of the capital stock of a corporation is a prescribed share if the consideration for which the share is to be issued is to be determined more than 60 days after entering into the agreement pursuant to which the share is to be issued; the corporation or a specified person in relation to the corporation, directly or indirectly, provided assistance, made or arranged for a loan or payment, transferred property, or otherwise conferred a benefit by any means whatever, including the payment of a dividend, for the purpose of assisting any person or partnership in acquiring the share or any person or partnership in acquiring an interest in a partnership acquiring the share (otherwise than by reason of an excluded obligation in relation to the share); or the holder of the share or, where the holder is a partnership, a member thereof, has a right under any agreement or arrangement entered into under circumstances where it is reasonable to consider that the agreement or arrangement was contemplated at or before the time when the agreement to issue the share was entered into, to dispose of the share, and through a transaction or event or a series of transactions or events contemplated by the agreement or arrangement, to acquire a share (referred to in this paragraph as the “acquired share”) of the capital stock of another corporation that would be a prescribed share under subsection (1) if the acquired share were issued at the time the share was issued, other than a share that would not be a prescribed share if subsection (1) were read without reference to subparagraphs (a)(iv) and (d)(i) and (ii) thereof where the acquired share is a share of a mutual fund corporation, or of a corporation that becomes a mutual fund corporation within 90 days after the acquisition of the acquired share. For the purpose of the definition flow-through share in subsection 66(15) of the Act, a new right is a prescribed right if the consideration for which the new right is to be issued is to be determined more than 60 days after entering into the agreement pursuant to which the new right is to be issued; the corporation or a specified person in relation to the corporation, directly or indirectly, for the purpose of assisting any person or partnership to acquire the new right or any person or partnership to acquire an interest in a partnership acquiring the new right (otherwise than because of an excluded obligation in relation to the new right), otherwise conferred a benefit by any means whatever, including the payment of a dividend; or the holder of the new right or, where the holder is a partnership, a member of the partnership, has a right under any agreement or arrangement entered into under circumstances where it is reasonable to consider that the agreement or arrangement was contemplated at or before the time the agreement to issue the new right was entered into, to dispose of the new right, and through a transaction or event or a series of transactions or events contemplated by the agreement or arrangement, to acquire a share (referred to in this paragraph as the “acquired share”) of the capital stock of another corporation that would be a prescribed share under subsection (1) if the acquired share were issued at the time the new right was issued, other than a share that would not be a prescribed share if subsection (1) were read without reference to subparagraphs (1)(a)(iv) and (1)(d)(i) and (ii) where the acquired share is a share of a corporation that becomes a mutual fund corporation within 90 days after the acquisition of the acquired share, or a right (referred to in this paragraph as the “acquired right”) to acquire a share of the capital stock of another corporation that would, if it were issued at the time the new right was issued, be a prescribed right, other than a right that would not be a prescribed right if subsection (1.1) were read without reference to subparagraph (1.1)(e)(i) where the acquired right is a right to acquire a share of the capital stock of a corporation that becomes a mutual fund corporation within 90 days after the acquisition of the acquired right. For the purposes of subsections (1) and (1.1), the dividend entitlement of a share of the capital stock of a corporation is deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all dividends on the share are determined solely by reference to a multiple or fraction of the dividend entitlement of another share of the capital stock of the corporation, or of another corporation that controls the corporation, where the dividend entitlement of that other share is not described in subparagraph (1)(a)(i); and the liquidation entitlement of a share of the capital stock of a corporation, or of a right to acquire a share of the capital stock of the corporation, as the case may be, is deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all the liquidation entitlement is determinable solely by reference to the liquidation entitlement of another share of the capital stock of the corporation (or a share of the capital stock of another corporation that controls the corporation), or the liquidation entitlement of a right to acquire the capital stock of the corporation (or another corporation that controls the corporation), the liquidation entitlement described in clause (i)(A), if any, is not described in subparagraph (1)(a)(ii), and the liquidation entitlement described in clause (i)(B), if any, is not described in paragraph (1.1)(a). For the purposes of paragraphs (1)(c) and (e) and (1.1)(d) and (f), an agreement entered into between the first holder of a share or right and another person or partnership for the sale of the share or right to that other person or partnership for its fair market value at the time the share or right is acquired by the other person or partnership (determined without regard to the agreement) is deemed not to be an undertaking with respect to the share or right, as the case may be. For the purposes of section 6202 and this section, excluded obligation, in relation to a share or new right issued by a corporation, means an obligation of the corporation with respect to eligibility for, or the amount of, any assistance under the Canadian Exploration and Development Incentive Program Act, the Canadian Exploration Incentive Program Act, the Ontario Mineral Exploration Program Act, R.S.O., c. O.27, or The Mineral Exploration Incentive Program Act, S.M. 1991-92, c. 45, or with respect to the making of an election respecting such assistance and the flowing out of such assistance to the holder of the share or the new right in accordance with any of those Acts, an obligation of the corporation, in respect of the share or the new right, to distribute an amount that represents a payment out of assistance to which the corporation is entitled as a consequence of the corporation making expenditures funded by consideration received for shares or new rights issued by the corporation in respect of which the corporation purports to renounce an amount under subsection 66(12.6) of the Act, and under section 25.1 of the Income Tax Act, R.S.B.C., 1996, c. 215, or an obligation of any person or partnership to effect an undertaking to indemnify a holder of the share or the new right or, where the holder is a partnership, a member of the partnership, for an amount not exceeding the amount of any tax payable under the Act or the laws of a province by the holder or the member of the partnership, as the case may be, as a consequence of the failure of the corporation to renounce an amount to the holder in respect of the share or the new right, or a reduction, under subsection 66(12.73) of the Act, of an amount purported to be renounced to the holder in respect of the share or the new right; (obligation exclue) new right means a right that is issued after December 20, 2002 to acquire a share of the capital stock of a corporation, other than a right that is issued at a particular time before 2003 pursuant to an agreement in writing made on or before December 20, 2002, as part of a distribution of rights to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the rights begins, filed on or before December 20, 2002 with a public authority in Canada in accordance with the securities legislation of the province in which the rights are distributed, or to a partnership interests in which were issued as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the interests begins, filed on or before December 20, 2002 with a public authority in Canada in accordance with the securities legislation of the province in which the interests are distributed, where all interests in the partnership issued at or before the particular time were issued as part of the distribution, or before the beginning of the distribution; (nouveau droit) new share means a share of the capital stock of a corporation issued after June 17, 1987, other than a share issued at a particular time before 1989 pursuant to an agreement in writing entered into before June 18, 1987, as part of a distribution of shares to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the shares begins, filed before June 18, 1987 with a public authority in Canada in accordance with the securities legislation of the province in which the shares were distributed, or to a partnership in which interests were issued as part of a distribution to the public made in accordance with the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the interests begins, filed before June 18, 1987 with a public authority in Canada in accordance with the securities legislation of the province in which the interests were distributed, where all interests in the partnership issued at or before the particular time were issued as part of the distribution or prior to the beginning of the distribution; (action nouvelle) specified person, in relation to any particular person, means another person with whom the particular person does not deal at arm’s length or any partnership or trust of which the particular person or the other person is a member or beneficiary, respectively. (personne apparentée) For the purposes of subsection 192(6) of the Act, a prescribed share of the capital stock of a taxable Canadian corporation is a share (other than a share acquired by a taxpayer under circumstances referred to in section 66.3 of the Act, a share acquired as consideration for a disposition of property in respect of which an election was made under subsection 85(1) or (2) of the Act and a share that can be considered to have been issued, directly or indirectly, for consideration that includes other shares of the capital stock of the corporation) where, at the time it is issued, the amount of the dividends (in this section referred to as the “dividend entitlement”) that the corporation may declare or pay on the share is not limited to a maximum amount or fixed at a minimum amount at that time or at any time thereafter by way of a formula or otherwise, the amount (in this section referred to as the “liquidation entitlement”) that the holder of the share is entitled to receive on the share on the dissolution, liquidation or winding-up of the corporation is not limited to a maximum amount or fixed at a minimum amount by way of a formula or otherwise, the share cannot be converted into any other security, other than into another security of the corporation that would, if it were issued for consideration that does not include other shares of the capital stock of the corporation, be a prescribed share, the holder of the share cannot at that time or at any time thereafter cause the share to be redeemed, acquired or cancelled by the corporation or any specified person in relation to the corporation, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by subparagraph (iii), no person or partnership has, either absolutely or contingently, an obligation to reduce, or to cause the corporation to reduce, at that time or at any time thereafter, the paid-up capital in respect of the share, except where the reduction is required pursuant to a conversion that is not prohibited by subparagraph (iii), no person or partnership has, either absolutely or contingently, an obligation at that time or at any time thereafter to provide assistance to acquire the share, make a loan or payment, transfer property, or otherwise confer a benefit by any means whatever, including the payment of a dividend, that may reasonably be considered to be, directly or indirectly, a repayment or return by the corporation or a specified person in relation to the corporation of all or part of the consideration for which the share was issued, neither the corporation nor any specified person in relation to the corporation has, either absolutely or contingently, the right or obligation to redeem, acquire or cancel, at that time or at any time thereafter, the share in whole or in part other than for an amount that approximates the fair market value of the share (determined without reference to any such right or obligation), and no person or partnership has, either absolutely or contingently, an obligation to provide, at that time or at any time thereafter, any form of undertaking with respect to the share (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the share or any specified person in relation to the holder) that may reasonably be considered to have been given to ensure that any loss that the holder of the share may sustain by virtue of the holding, ownership or disposition of the share is limited in any respect, or the holder of the share will derive earnings by virtue of the holding, ownership or disposition of the share;

the corporation or a specified person in relation to the corporation cannot reasonably be expected to, within two years after the time the share is issued, acquire or cancel the share in whole or in part, reduce the paid-up capital of the corporation in respect of the share, or make a payment, transfer or other provision, directly or indirectly, by way of a dividend, loan, purchase of shares, financial assistance to any purchaser of the share or in any other manner whatever, that may reasonably be considered to be a repayment or return of all or part of the consideration for which the share was issued otherwise than as a consequence of the payment of a dividend paid by a subsidiary wholly-owned corporation to its parent, of an amalgamation of a subsidiary wholly-owned corporation or of a winding-up to which subsection 88(1) of the Act applies; no person or partnership can reasonably be expected to provide, within two years after the time the share is issued, any form of undertaking with respect to the share (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to, or the placing of amounts on deposit with, or on behalf of, the holder of the share or any specified person in relation to the holder); and it cannot reasonably be expected that any of the terms or conditions of the share or any existing agreement in respect of the share or its issue will thereafter be modified or amended, or that any new agreement in respect of the share or its issue will be entered into, within two years after the time the share is issued, in such a manner that the share would not be a prescribed share if it had been issued at the time of such modification or amendment or at the time the new agreement is entered into. the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the dividend entitlement is determinable by reference to the dividend entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(i); the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the liquidation entitlement is determinable by reference to the liquidation entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(ii); where a corporation has merged or amalgamated with one or more other corporations, the corporation formed as a result of the merger or amalgamation shall be deemed to be the same corporation as, and a continuation of, each of its predecessor corporations and a share issued on the merger or amalgamation as consideration for another share shall be deemed to be the same share as the share for which it was issued but this paragraph does not apply if the share issued on the merger or amalgamation is not a prescribed share at the time of its issue; and an agreement entered into between the first purchaser of a share and another person or partnership, other than a specified person in relation to the corporation issuing the share, for the sale of the share to that other person or partnership shall be deemed not to be an undertaking with respect to the share. For the purposes of subsections (1) and (2), specified person, in relation to a corporation or a holder of a share, as the case may be (in this subsection referred to as the “taxpayer”), means any person or partnership with whom the taxpayer does not deal at arm’s length or any partnership or trust of which the taxpayer (or a person or partnership with whom the taxpayer does not deal at arm’s length) is a member or beneficiary, respectively. For the purposes of subparagraph 110(1)(d)(i.1) of the Act, a share is a prescribed share of the capital stock of a corporation at the time of its sale or issue, as the case may be, if, at that time, the share cannot be converted into, or exchanged for, any other security, other than into another security of the corporation or of another corporation with which it does not deal at arm’s length immediately after such conversion or exchange that is, or would be at the date of conversion or exchange, a prescribed share, no person or partnership has, either absolutely or contingently, an obligation to reduce, or to cause the corporation to reduce, at that time or at any time thereafter, the paid-up capital in respect of the share, except where the reduction is required pursuant to a conversion that is not prohibited by subparagraph (iii), and neither the corporation nor any specified person in relation to the corporation has, either absolutely or contingently, the right or obligation to redeem, acquire or cancel, at that time or any later time, the share in whole or in part other than for an amount that approximates the fair market value of the share (determined without reference to any such right or obligation) or a lesser amount; the corporation or a specified person in relation to the corporation cannot reasonably be expected to, within two years after the time the share is sold or issued, as the case may be, redeem, acquire or cancel the share in whole or in part, or reduce the paid-up capital of the corporation in respect of the share, otherwise than as a consequence of an amalgamation of a subsidiary wholly-owned corporation, a winding-up to which subsection 88(1) of the Act applies, a distribution or appropriation to which subsection 84(2) of the Act applies, or a conversion or exchange of the share into another security of the corporation or of another corporation with which it does not deal at arm’s length immediately after the conversion or exchange that is, or would be at the date of the conversion or exchange, a prescribed share; and it cannot reasonably be expected that any of the terms or conditions of the share or any existing agreement in respect of the share or its sale or issue will be modified or amended, or that any new agreement in respect of the share, its sale or issue will be entered into, within two years after the time the share is sold or issued, in such a manner that the share would not be a prescribed share if it had been sold or issued at the time of such modification or amendment or at the time the new agreement is entered into. the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the liquidation entitlement is determinable by reference to the liquidation entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(ii); and the determination of whether a share of the capital stock of a particular corporation is a prescribed share shall be made without reference to a right or obligation to redeem, acquire or cancel the share, or to cause the share to be redeemed, acquired or cancelled, where the person (in this paragraph referred to as the “holder”) to whom the share is sold or issued is, at the time the share is sold or issued, dealing at arm’s length with the particular corporation and with each corporation with which the particular corporation is not dealing at arm’s length, the right or obligation is provided for in the terms or conditions of the share or in an agreement in respect of the share or its issue and, having regard to all the circumstances, it can reasonably be considered that the principal purpose of providing for the right or obligation is to protect the holder against any loss in respect of the share, and the amount payable on the redemption, acquisition or cancellation (in this subparagraph and in subparagraph (iii) referred to as the “acquisition”) of the share will not exceed the adjusted cost base of the share to the holder immediately before the acquisition, or the principal purpose of providing for the right or obligation is to provide the holder with a market for the share, and the amount payable on the acquisition of the share will not exceed the fair market value of the share immediately before the acquisition, and having regard to all the circumstances, it can reasonably be considered that no portion of the amount payable on the acquisition of the share is directly determinable by reference to the profits of the particular corporation, or of another corporation with which the particular corporation does not deal at arm’s length, for all or any part of the period during which the holder owns the share or has a right to acquire the share, unless the reference to the profits of the particular corporation or the other corporation is only for the purpose of determining the fair market value of the share pursuant to a formula set out in the terms or conditions of the share or the agreement in respect of the share or its issue, as the case may be. For the purposes of subsection (1), specified person, in relation to a corporation, means any person or partnership with whom the corporation does not deal at arm’s length otherwise than because of a right referred to in paragraph 251(5)(b) of the Act that arises as a result of an offer by the person or partnership to acquire all or substantially all of the shares of the capital stock of the corporation, or any partnership or trust of which the corporation (or a person or partnership with whom the corporation does not deal at arm’s length) is a member or beneficiary, respectively. For the purposes of subsection (3), the Act shall be read without reference to subsection 256(9) of the Act. For the purposes of subsections 110.6(8) and (9) of the Act and subject to subsection (3), a prescribed share is a share of the capital stock of a corporation where at the time the share is issued, the share cannot be converted into any other security, other than into another security of the corporation that is, or would be at the date of conversion, a prescribed share, the holder of the share does not, at that time or at any time thereafter, have the right or obligation to cause the share to be redeemed, acquired or cancelled by the corporation or a specified person in relation to the corporation, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by clause (C), no person or partnership has, either absolutely or contingently, an obligation to reduce, or to cause the corporation to reduce, at that time or at any time thereafter, the paid-up capital in respect of the share, otherwise than by way of a redemption, acquisition or cancellation of the share that is not prohibited by this section, no person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share, as defined in subsection 6202.1(5)) at that time or any time thereafter to that may reasonably be considered to be, directly or indirectly, a repayment or return by the corporation or a specified person in relation to the corporation of all or part of the consideration for which the share was issued, and neither the corporation nor any specified person in relation to the corporation has, either absolutely or contingently, the right or obligation to redeem, acquire or cancel, at that time or at any time thereafter, the share in whole or in part, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by clause (C), no person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share, as defined in subsection 6202.1(5)) to provide, at any time, any form of undertaking with respect to the share (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the share or any specified person in relation to that holder) that may reasonably be considered to have been given to ensure that the holder of the share will derive earnings by virtue of the holding, ownership or disposition of the share; and at the time the share is issued, it cannot reasonably be expected, having regard to all the circumstances, that any of the terms or conditions of the share or any existing agreement in respect of the share or its issue will thereafter be modified or amended or that any new agreement in respect of the share or its issue will be entered into, in such a manner that the share would not be a prescribed share if it had been issued at the time of such modification or amendment or at the time the new agreement is entered into. For the purposes of subsections 110.6(8) and (9) of the Act and subject to subsection (3), a prescribed share is a share of the capital stock of a particular corporation where it is a particular share that is owned by a person and that was issued by the particular corporation as part of an arrangement to that person, to a spouse, common-law partner or parent of that person or, if the person is a trust described in paragraph 104(4)(a) of the Act, to the person who created the trust or by whose will the trust was created or, if the person is a corporation, to another person owning all of the issued and outstanding shares of the capital stock of the corporation or to a spouse, common-law partner or parent of that other person, and the main purpose of the arrangement was to permit any increase in the value of the property of the particular corporation to accrue to other shares that would, at the time of their issue, be prescribed shares if this section were read without reference to this subsection, and at the time of the issue of the particular share or at the end of the arrangement, the other shares were owned by the person to whom the particular share was issued (in this paragraph referred to as the “original holder”), a person who did not deal at arm’s length with the original holder, a trust none of the beneficiaries of which were persons other than the original holder or a person who did not deal at arm’s length with the original holder, or any combination of persons described in subclause (I), (II) or (III), the other shares were owned by employees of the particular corporation or of a corporation controlled by the particular corporation, or the other shares were owned by any combination of persons each of whom is described in clause (A) or (B); or it is a share that was issued by a mutual fund corporation. [Repealed, SOR/90-607, s. 1] For the purposes of subsections 110.6(8) and (9) of the Act, a prescribed share does not include a share of the capital stock issued by a mutual fund corporation (other than an investment corporation) the value of which can reasonably be considered to be, directly or indirectly, derived primarily from investments made by the mutual fund corporation in one or more corporations (in this subsection referred to as an “investee corporation”) connected with it (within the meaning of subsection 186(4) of the Act on the assumption that the references in that subsection to “payer corporation” and “particular corporation” were read as references to “investee corporation” and “mutual fund corporation”, respectively). the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the dividend entitlement is determinable by reference to the dividend entitlement of another share of the capital stock of the corporation that meets the requirements of clause (1)(a)(i)(A), or the dividend entitlement cannot be such as to impair the ability of the corporation to redeem another share of the capital stock of the corporation that meets the requirements of paragraph (2)(a); the liquidation entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all of the liquidation entitlement is determinable by reference to the liquidation entitlement of another share of the capital stock of the corporation that meets the requirements of clause (1)(a)(i)(B); where two or more corporations (each of which is referred to in this paragraph as a “predecessor corporation”) have merged or amalgamated, the corporation formed as a result of the merger or amalgamation (in this paragraph referred to as the “new corporation”) shall be deemed to be the same corporation as, and a continuation of, each of the predecessor corporations and a share of the capital stock of the new corporation issued on the merger or amalgamation as consideration for a share of the capital stock of a predecessor corporation shall be deemed to be the same share as the share of the predecessor corporation for which it was issued, but this paragraph does not apply if the share issued on the merger or amalgamation is not a prescribed share at the time of its issue and either the terms and conditions of that share are not identical to those of the share of the predecessor corporation for which it was issued, or at the time of its issue the fair market value of that share is not the same as that of the share of the predecessor corporation for which it was issued; a reference in clauses (1)(a)(i)(D) and (G) and subparagraph (1)(a)(ii) to a right or obligation of the corporation or a person or partnership does not include a right or obligation provided in a written agreement among shareholders of a private corporation owning more than 50% of its issued and outstanding share capital having full voting rights under all circumstances to which the corporation, person or partnership is a party unless it may reasonably be considered, having regard to all the circumstances, including the terms of the agreement and the number and relationship of the shareholders, that one of the main reasons for the existence of the agreement is to avoid or limit the application of subsection 110.6(8) or (9) of the Act; where at any particular time after November 21, 1985, the terms or conditions of a share are changed or any existing agreement in respect thereof is changed or a new agreement in respect of the share is entered into, the share shall, for the purpose of determining whether it is a prescribed share, be deemed to have been issued at that particular time; and the determination of whether a share of the capital stock of a corporation is a prescribed share for the purposes of subsection (1) shall be made without reference to a right or obligation to redeem, acquire or cancel the share or to cause the share to be redeemed, acquired or cancelled where the share was issued pursuant to an employee share purchase agreement (in this paragraph referred to as “the agreement”) to an employee (in this paragraph referred to as “the holder”) of the corporation or of a corporation with which it did not deal at arm’s length, the holder was dealing at arm’s length with each corporation referred to in subparagraph (i) at the time the share was issued, and having regard to all the circumstances including the terms of the agreement, it may reasonably be considered that the amount payable on the redemption, acquisition or cancellation (in this clause and in clause (B) referred to as the “acquisition”) of the share will not exceed the adjusted cost base of the share to the holder immediately before the acquisition, where the acquisition was provided for in the agreement and the principal purpose for its provision was to protect the holder against any loss in respect of the share, or the fair market value of the share immediately before the acquisition, where the acquisition was provided for in the agreement and the principal purpose for its provision was to provide the holder with a market for the share, and no portion of the amount payable on the acquisition of the share is directly determinable by reference to the profits of the corporation, or of another corporation with which it does not deal at arm’s length, for all or any part of the period during which the holder owned the share or had a right to acquire the share, unless the reference to the profits of the corporation or the other corporation is only for the purpose of determining the fair market value of the share pursuant to a formula set out in the agreement. For the purposes of this section, specified person, in relation to a corporation or a holder of a share, as the case may be (in this subsection referred to as the “taxpayer”), means any person or partnership with whom the taxpayer does not deal at arm’s length or any partnership or trust of which the taxpayer (or a person or partnership with whom the taxpayer does not deal at arm’s length) is a member or beneficiary, respectively. The Class I Special Shares of Reed Stenhouse Companies Limited, issued before January 1, 1986, are prescribed for the purposes of subsection 84(8) of the Act. For the purposes of paragraph 183.1(4)(c) of the Act (as it read in its application to transactions entered into before September 13, 1988), a share is a prescribed share of the capital stock of an acquiring corporation where, at the time the share is issued the share cannot be converted into any other security, other than into another security of the corporation or of another corporation with which it does not deal at arm’s length that is, or would be at the date of conversion, a prescribed share, the holder of the share does not, at that time or at any time thereafter, have the right or obligation to cause the share to be redeemed, acquired or cancelled by the corporation or any specified person in relation to the corporation, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by subparagraph (iii), no person or partnership has, either absolutely or contingently, an obligation to reduce, or to cause the corporation to reduce, at that time or at any time thereafter, the paid-up capital in respect of the share, otherwise than by way of a redemption, acquisition or cancellation of the share that is not prohibited by this section, and neither the corporation nor any specified person in relation to the corporation has, either absolutely or contingently, the right or obligation to redeem, acquire or cancel, at that time or at any time thereafter, the share in whole or in part, except where the redemption, acquisition or cancellation is required pursuant to a conversion that is not prohibited by subparagraph (iii); and it cannot reasonably be expected, having regard to all the circumstances, that any of the terms or conditions of the share or any existing agreement in respect of the share or its issue will be modified or amended, or that any new agreement in respect of the share or its issue will be entered into, in such a manner that the share would not be a prescribed share if it had been issued at the time of such modification or amendment or at the time the new agreement is entered into. the dividend entitlement of a share of the capital stock of a corporation shall be deemed not to be limited to a maximum amount or fixed at a minimum amount where it may reasonably be considered that all or substantially all the dividend entitlement is determinable by reference to the dividend entitlement of another share of the capital stock of the corporation that meets the requirements of subparagraph (1)(a)(i); where at any particular time after June 3, 1987, the terms or conditions of a share are changed or any existing agreement in respect of the share is changed or a new agreement in respect of the share is entered into, the share shall, for the purpose of determining whether it is a prescribed share, be deemed to have been issued at that particular time; the determination of whether a share of the capital stock of a corporation owned by an employee of the corporation or another corporation with which it does not deal at arm’s length is a prescribed share shall be made without reference to a right or obligation with respect to an acquisition of the share, the consideration for which is described in subparagraph 183.1(4)(c)(i) or (ii) of the Act (as those subparagraphs read in their application to transactions entered into before September 13, 1988) where no portion of the amount payable on the acquisition of the share is directly determinable by reference to the profits of the corporation or the other corporation for all or any part of the period during which the employee owned the share or had a right to acquire the share, unless the reference to the profits of the corporation or the other corporation is only for the purpose of determining the fair market value of the share pursuant to a formula set out in the employee share purchase agreement under which the employee acquired the share; and a reference in subparagraphs (1)(a)(iv) and (vi) to a right or obligation of the corporation or a person or partnership does not include a right or obligation provided in a written agreement among shareholders of a private corporation owning more than 50 per cent of its issued and outstanding share capital having full voting rights under all circumstances to which the corporation, person or partnership is a party unless it may reasonably be considered, having regard to all the circumstances including the terms of the agreement and the number and relationship of the shareholders, that one of the main reasons for the existence of the agreement is to avoid or limit the application of subsection 183.1(1) of the Act. For the purposes of subsection (1), specified person in relation to a corporation means any person or partnership with whom the corporation does not deal at arm’s length or any partnership or trust of which the corporation (or a person or partnership with whom the corporation does not deal at arm’s length) is a member or beneficiary, respectively. For the purposes of clause 212(1)(b)(vii)(E) of the Act, a prescribed security with respect to an obligation of a corporation is a share of the capital stock of the corporation unless under the terms and conditions of the share, any agreement relating to the share or any modification of such terms, conditions or agreement, the corporation or a specified person in relation to the corporation is or may, at any time within five years after the date of the issue of the obligation, be required to redeem, acquire or cancel, in whole or in part, the share (unless the share is or may be required to be redeemed, acquired or cancelled by reason only of a right to convert the share into, or exchange the share for, another share of the corporation that, if issued, would be a prescribed security) or to reduce its paid-up capital, as a result of the modification or establishment of the terms or conditions of the share or the changing or entering into of any agreement in respect of the share, the corporation or a specified person in relation to the corporation may, within five years after the date of the issue of the obligation, reasonably be expected to redeem, acquire or cancel, in whole or in part, the share (unless the share is or may be required to be redeemed, acquired or cancelled by reason only of a right to convert the share into, or exchange the share for, another share of the corporation that, if issued, would be a prescribed security) or to reduce its paid-up capital, or as a result of the terms or conditions of the share or any agreement entered into by the corporation or a specified person in relation to the corporation or any modification of such terms, conditions or agreement, any person is required, either absolutely or contingently, within five years after the date of the issue of the obligation, to effect any undertaking, including any guarantee, covenant or agreement to purchase or repurchase the share, and including a loan of funds to or the placing of amounts on deposit with, or on behalf of, the shareholder or a specified person in relation to the shareholder given to ensure that any loss that the shareholder or a specified person in relation to the shareholder may sustain, by reason of the ownership, holding or disposition of the share or any other property, is limited in any respect, and as part of a transaction or event or series of transactions or events that included the issuance or acquisition of the obligation, and for the purposes of this subparagraph, where such an undertaking in respect of a share is given at any particular time after the date of the issue of the obligation, the obligation shall be deemed to have been issued at the particular time and the undertaking shall be deemed to have been given as part of a series of transactions that included the issuance or acquisition of the obligation, and a right or warrant to acquire a share of the capital stock of the corporation that would, if issued, be a prescribed security with respect to the obligation, where all the consideration receivable upon a conversion or exchange of the obligation or the prescribed security, as the case may be, is a share of the capital stock of the corporation described in paragraph (a) or a right or warrant described in paragraph (b), or both, as the case may be. For the purposes of this section, where a taxpayer may become entitled upon the conversion or exchange of an obligation or a prescribed security to receive consideration in lieu of a fraction of a share, that consideration shall be deemed not to be consideration unless it may reasonably be considered to be receivable as part of a series of transactions or events one of the main purposes of which is to avoid or limit the application of Part XIII of the Act. In this section, specified person, in relation to a corporation or a shareholder, means any person with whom the corporation or the shareholder, as the case may be, does not deal at arm’s length or any partnership or trust of which the corporation or the shareholder, as the case may be, or the person is a member or beneficiary, respectively. For the purposes of the definition lending asset in subsection 248(1) of the Act, a share owned by a bank is a prescribed share for a taxation year where it is a preferred share of the capital stock of a corporation that is dealing at arm’s length with the bank that may reasonably be considered to be, and is reported as, a substitute or alternative for a loan to the corporation, or another corporation with whom the corporation does not deal at arm’s length, in the bank’s annual report for the year to the relevant authority or, where the bank was throughout the year subject to the supervision of the relevant authority but was not required to file an annual report for the year with the relevant authority, in its financial statements for the year; and a property is a prescribed property for a taxation year where the security is a mark-to-market property (as defined in subsection 142.2(1) of the Act) for the year of a financial institution (as defined in subsection 142.2(1) of the Act), the security is at any time in the year a property described in an inventory of a taxpayer, or the property is a direct financing lease, or is any other financing arrangement, of a taxpayer that is reported as a loan in the taxpayer’s financial statement for the year prepared in accordance with generally accepted accounting principles and an amount is deductible under paragraph 20(1)(a) of the Act in respect of the property that is the subject of the lease or arrangement in computing the taxpayer’s income for the year. For the purposes of paragraph 38(a.1) of the Act, a prescribed debt obligation is a bond, debenture, note, mortgage or similar obligation of or guaranteed by the Government of Canada; or of the government of a province or an agent of that government. In this Part, qualified dependant has the meaning assigned by section 122.6 of the Act. For the purposes of paragraph (g) of the definition eligible individual in section 122.6 of the Act, the presumption referred to in paragraph (f) of that definition does not apply in the circumstances where subject to paragraph (c), the female parent of the qualified dependant declares in writing to the Minister that she resides with the other parent of that qualified dependant and that that other parent primarily fulfils the responsibility for the care and upbringing of each of the qualified dependants with whom both parents reside; the female parent is a qualified dependant of an eligible individual and each of them files a notice with the Minister under subsection 122.62(1) of the Act in respect of the same qualified dependant; there is more than one female parent of the qualified dependant who resides with the qualified dependant and each female parent files a notice with the Minister under subsection 122.62(1) of the Act in respect of the qualified dependant; or more than one notice is filed with the Minister under subsection 122.62(1) of the Act in respect of the same qualified dependant who resides with each of the persons filing the notices if such persons live at different locations. For greater certainty, a person who files a notice referred to in paragraph (1)(b), (c) or (d) includes a person who is not required under subsection 122.62(3) of the Act to file such a notice. For the purposes of paragraph (h) of the definition eligible individual in section 122.6 of the Act, the following factors are to be considered in determining what constitutes care and upbringing of a qualified dependant: the supervision of the daily activities and needs of the qualified dependant; the maintenance of a secure environment in which the qualified dependant resides; the arrangement of, and transportation to, medical care at regular intervals and as required for the qualified dependant; the arrangement of, participation in, and transportation to, educational, recreational, athletic or similar activities in respect of the qualified dependant; the attendance to the needs of the qualified dependant when the qualified dependant is ill or otherwise in need of the attendance of another person; the attendance to the hygienic needs of the qualified dependant on a regular basis; the provision, generally, of guidance and companionship to the qualified dependant; and the existence of a court order in respect of the qualified dependant that is valid in the jurisdiction in which the qualified dependant resides. For the purposes of subsection 122.2(1) of the Act, the prescribed date for each of the 1978 and subsequent taxation years is December 31st of that year. For the purposes of subsection 120(2) of the Act, the prescribed date for each of the 1980 and subsequent taxation years is December 31st of that year. For the purposes of paragraph 241(4)(j.2) of the Act, the following are prescribed laws of the Province of Quebec: An Act respecting the Québec Pension Plan, R.S.Q., c. R-9; and Individual and Family Assistance Act, R.S.Q., c. A-13.1.1, as it relates to the additional amounts for dependent children. For the purposes of paragraph 81(1)(q) of the Act, prescribed provision of the law of a province means in respect of the Province of Alberta subsections 7(1) and 14(1) of The Criminal Injuries Compensation Act, R.S.A. 1970, c. 75, and subsections 8(3), 10(2) and 13(8) of The Motor Vehicle Accident Claims Act, R.S.A. 1970, c. 243; in respect of the Province of British Columbia paragraphs 3(1)(a) and (b) and section 9 of the Criminal Injury Compensation Act, R.S.B.C. 1979, c. 83, and subsection 106(1) of the Motor-vehicle Act, R.S.B.C. 1960, c. 253, as amended by S.B.C. 1965, c. 27; in respect of the Province of Manitoba subsection 6(1) of The Criminal Injuries Compensation Act, S.M. 1970, c. 56, and subsections 7(9) and 12(11) of The Unsatisfied Judgement Fund Act, R.S.M. 1970, U70; in respect of the Province of New Brunswick subsections 3(1) and (2) of the Compensation for Victims of Crime Act, R.S.N.B. 1973, c. C-14, and subsections 319(3), (10) and 321(1) of the Motor Vehicle Act, R.S.N.B. 1973, c. M-17; in respect of the Province of Newfoundland subsection 27(1) of the Criminal Injuries Compensation Act, R.S.N. 1970, c. 68, and subsection 106(2) of The Highway Traffic Act, R.S.N. 1970, c. 152; in respect of the Northwest Territories, subsections 3(1) and 5(2) and section 13 of the Criminal Injuries Compensation Ordinance, R.O.N.W.T. 1974, c. C-23; in respect of the Province of Nova Scotia, subsections 190(5) and 191(2) of the Motor Vehicle Act, R.S.N.S. 1967, c. 191; in respect of the Province of Ontario section 5, subsection 7(2) and section 14 of The Compensation for Victims of Crime Act, 1971, S.O. 1971, c. 51, and subsections 5(3) and 6(1) and section 18 of The Motor Vehicle Accident Claims Act, R.S.O. 1970, c. 281; in respect of the Province of Prince Edward Island, subsection 351(3) of the Highway Traffic Act, R.S.P.E.I. 1974, c. H-6; in respect of the Province of Quebec sections 5, 5b and 14 of the Crime Victims Compensation Act, S.Q. 1971, c. 18, and sections 13 and 26, subsection 37(1) and sections 44 and 54 of the Automobile Insurance Act, S.Q. 1977, c. 68; in respect of the Province of Saskatchewan subsection 10(1) of The Criminal Injuries Compensation Act, R.S.S. 1978, c. C-47, and subsections 23(1) to (4) and (7), 24(2) to (7) and (9), 25(1), 26(1), 27(1) and (2), 27(5), 51(8) and (9), 54(3) and 55(1) of The Automobile Accident Insurance Act, R.S.S. 1978, c. A-35; and in respect of the Yukon Territory, subsection 3(1) of the Compensation for the Victims of Crime Ordinance, O.Y.T. 1975 (1st), c. 2 as amended by O.Y.T. 1976 (1st), c. 5. For the purposes of paragraph 56(1)(c.1), section 56.1, paragraph 60(c.1) and section 60.1 of the Act, the class of individuals who were parties, whether in a personal capacity or by representation, to proceedings giving rise to an order made in accordance with the laws of the Province of Ontario, and who, at the time the application for the order was made, were persons described in subclause 14(b)(i) of the Family Law Reform Act, Revised Statutes of Ontario 1980, c. 152, is prescribed as a class of persons described in the laws of a province. For the purposes of paragraphs 60(j.02) to (j.04) of the Act, subsection 41(5) of the Canadian Forces Superannuation Act, subsections 39(7) and 42(8) of the Public Service Superannuation Act and subsection 24(6) of the Royal Canadian Mounted Police Superannuation Act are prescribed. For the purpose of the definition overseas Canadian Forces school staff in subsection 248(1) of the Act, the Canadian Forces Overseas Schools Regulations is prescribed. For the purposes of paragraph 40(2)(i), clause 53(2)(k)(i)(C), the definition private corporation in subsection 89(1), subsection 125(6.2), the definition Canadian-controlled private corporation in subsection 125(7), section 186.2 and the definition financial intermediary corporation in subsection 191(1) of the Act, the following are prescribed venture capital corporations: a corporation that is registered under the provisions of An Act Respecting Corporations for the Development of Quebec Business Firms, Statutes of Quebec 1976, c. 33, the Small Business Development Corporations Act, 1979, Statutes of Ontario 1979, c. 22, Manitoba Regulation 194/84, being a regulation made under The Loans Act, 1983(2), Statutes of Manitoba 1982-83-84, c. 36, The Venture Capital Tax Credit Act, Statutes of Saskatchewan 1983-84, c. V-4.1, the Small Business Equity Corporations Act, Statutes of Alberta 1984, c. S-13.5, the Small Business Venture Capital Act, Statutes of British Columbia 1985, c. 56, An Act respecting Quebec business investment companies, Statutes of Québec 1985, c. 9, The Venture Capital Act, Statutes of Newfoundland 1988, c. 15, The Labour-sponsored Venture Capital Corporations Act, Statutes of Saskatchewan 1986, c. L-0.2, Part 2 of the Employee Investment Act, Revised Statutes of British Columbia, 1996, c. 112, Part III of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992, The Labour-Sponsored Venture Capital Corporations Act, Continuing Consolidation of the Statutes of Manitoba c. L12, Part II of the Risk Capital Investment Tax Credits Act, chapter 22 of the Statutes of the Northwest Territories, 1998, or section 11 or Part II of the Equity Tax Credit Act, Statutes of Nova Scotia, 1993, c. 3; the corporation established by An Act to Establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.), Revised Statutes of Québec, F-3.2.1; a corporation that is registered with the Department of Economic Development and Tourism of the Government of the Northwest Territories pursuant to the Venture Capital Policy and Directive issued by the Government of the Northwest Territories on June 27, 1985; a corporation that is a registered labour-sponsored venture capital corporation; the corporation established by The Manitoba Employee Ownership Fund Corporation Act, Continuing Consolidation of the Statutes of Manitoba, c. E95; the corporation established by An Act constituting Capital régional et coopératif Desjardins, R.S.Q., c. C-6.1; the corporation established by An Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi, Statutes of Québec 1995, c. 48; a corporation (including incorporated cooperative associations) registered under section 2 of the Community Development Equity Tax Credit Act, R.S.P.E.I. 1988, c. C-13.01; or a corporation that is a community economic development corporation, an eligible business corporation or a venture capital corporation, as defined in subsection 2(1) of the Investing in a Diversified Alberta Economy Act, S.A. 2016, c. I-10.5, and that is registered under that Act. For the purposes of paragraph 40(2)(i) and clause 53(2)(k)(i)(C) of the Act, a corporation that has an employee share ownership plan registered under Part 1 of the Employee Investment Act, R.S.B.C. 1996, c. 112, is also a prescribed venture capital corporation. For the purposes of paragraph 40(2)(i) and clause 53(2)(k)(i)(C) of the Act, “prescribed venture capital corporation” at any time includes a corporation that at that time is a corporation registered under the provisions of Part II of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992, or of Part II of the Risk Capital Investment Tax Credits Act, chapter 22 of the Statutes of the Northwest Territories, 1998. For the purposes of paragraph 40(2)(i), clause 53(2)(k)(i)(C), the definition public corporation in subsection 89(1), the definition specified investment business in subsection 125(7), the definition approved share in subsection 127.4(1), subsections 131(8) and (11), section 186.1, the definition financial intermediary corporation in subsection 191(1), the definition eligible investment in subsection 204.8(1) and subsection 204.81(8.3) of the Act, prescribed labour-sponsored venture capital corporation means, at any particular time, the corporation established by the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.), Statutes of Quebec 1983, c. 58; a corporation that is registered under the provisions of The Labour-sponsored Venture Capital Corporations Act, Statutes of Saskatchewan 1986, c. L-0.2; a corporation that is registered under Part 2 of the Employee Investment Act, Revised Statutes of British Columbia, 1996, c. 112; a registered labour-sponsored venture capital corporation; [Repealed, SOR/2024-231, s. 17] a corporation that is registered under The Labour-Sponsored Venture Capital Corporations Act, Continuing Consolidation of the Statutes of Manitoba c. L12; a corporation that is registered under Part II of the Equity Tax Credit Act, Statutes of Nova Scotia 1993, c. 3; or a corporation that is registered under Part II of the Risk Capital Investment Tax Credits Act, chapter 22 of the Statutes of the Northwest Territories, 1998. [Repealed, 2016, c. 7, s. 57] For the purposes of subparagraph 40(2)(i)(ii) and clause 53(2)(k)(i)(C) of the Act, each of the following is prescribed assistance: the assistance received from a province that has been provided in respect of, or for the acquisition of, a share of the capital stock of a venture capital corporation described in section 6700; the assistance provided under the Employee Investment Act, R.S.B.C. 1996, c. 112, in respect of, or for the acquisition of, a share of the capital stock of a venture capital corporation described in section 6700.1; the assistance provided under the Community Small Business Investment Funds Act, S.O. 1992, c. 18, the Risk Capital Investment Tax Credits Act, S.N.W.T. 1998, c. 22, or the Risk Capital Investment Tax Credits Act, S.N.W.T. 1998, c. 22, as duplicated for Nunavut, in respect of, or for the acquisition of, a share of the capital stock of a venture capital corporation described in section 6700.2; a tax credit provided in respect of, or for the acquisition of, a share of a labour-sponsored venture capital corporation described in section 6701; and a tax credit provided by a province in respect of, or for the acquisition of, a share of the capital stock of a taxable Canadian corporation (other than a share of the capital stock of a corporation in respect of which an amount has been renounced by the corporation under subsection 66(12.6), (12.601), (12.62) or (12.64) of the Act) that is held in a stock savings plan described in section 6705. For the purposes of section 186.1 of the Act, a prescribed investment contract corporation means a corporation described in clause 146(1)(j)(ii)(B) of the Act. For the purposes of section 186.2 of the Act, a corporation is a prescribed qualifying corporation in respect of dividends received by a shareholder on shares of its capital stock if, when the shares were acquired by the shareholder, they constituted an investment described in sections 33 and 34 of the Act referred to in subparagraph 6700(a)(i); an eligible investment under the provisions of an Act referred to in subparagraph 6700(a)(ii), (iv), (v), (vi) or (viii) or the regulation referred to in subparagraph 6700(a)(iii); a qualified investment under the provisions of the Act referred to in subparagraph 6700(a)(vii); an investment in an eligible business under the Venture Capital Policy and Directive referred to in paragraph 6700(c); or an investment in an eligible entity described in sections 17 and 18 of An Act constituting Capital régional et coopératif Desjardins, R.S.Q., c. C-6.1. For the purposes of paragraph 40(2)(i) and clause 53(2)(k)(i)(C) of the Act, a stock savings plan governed by any of the following is a prescribed stock savings plan: the Alberta Stock Savings Plan Act, Statutes of Alberta 1986, c. A-37.7; The Stock Savings Tax Credit Act, Statutes of Saskatchewan 1986, c. S-59.1; the Stock Savings Plan Act, Revised Statutes of Nova Scotia, 1989, c. 445; the Stock Savings Tax Credit Act, Revised Statutes of Newfoundland, 1990, c. S-28; or section 11.6 of the Income Tax Act, Continuing Consolidation of the Statutes of Manitoba c. I10. For the purpose of clause 204.81(1)(c)(v)(F) of the Act, a prescribed condition is that, in respect of a redemption of a Class A share of a corporation’s capital stock, the shareholder requires the corporation to withhold an amount in respect of the redemption in accordance with Part XII.5 of the Act.

For the purpose of subsection 204.82(5) of the Act, a prescribed provision of a law of a province means section 25.1 of the Community Small Business Investment Funds Act, chapter 18 of the Statutes of Ontario, 1992. For the purposes of paragraph 204.8(2)(b), section 27.2 of the Community Small Business Investment Funds Act, 1992, S.O. 1992, c. 18, is a prescribed wind-up rule. For the purposes of section 211.81 of the Act, sections 1086.14 and 1086.20 of the Taxation Act, R.S.Q., c. I-3, are prescribed provisions of a provincial law. For the purpose of paragraph (e) of the definition employee benefit plan in subsection 248(1) of the Act, each of the following is a prescribed arrangement: the Major League Baseball Players Benefit Plan; an arrangement under which all contributions are made pursuant to a law of Canada or a province, where one of the main purposes of the law is to enforce minimum standards with respect to wages, vacation entitlement or severance pay; and an arrangement under which all contributions are made in connection with a dispute regarding the entitlement of one or more persons to benefits to be received or enjoyed by the person or persons. For the purposes of paragraph (l) of the definition salary deferral arrangement in subsection 248(1) of the Act, a prescribed plan or arrangement is an arrangement in writing between an employer and an employee that is established on or after July 28, 1986 where it is reasonable to conclude, having regard to all the circumstances, including the terms and conditions of the arrangement and any agreement relating thereto, that the arrangement is not established to provide benefits to the employee on or after retirement but is established for the main purpose of permitting the employee to fund, through salary or wage deferrals, a leave of absence from the employee’s employment of not less than where the leave of absence is to be taken by the employee for the purpose of permitting the full-time attendance of the employee at a designated educational institution (within the meaning assigned by subsection 118.6(1) of the Act), three consecutive months, or in any other case, six consecutive months that is to commence immediately after a period (in this section referred to as the “deferral period”) not exceeding six years after the date on which the deferrals for the leave of absence commence, the amount of salary or wages deferred by the employee under all such arrangements for the services rendered by the employee to the employer in a taxation year does not exceed 33 1/3 per cent of the amount of the salary or wages that the employee would, but for the arrangements, reasonably be expected to have received in the year in respect of the services, the arrangement provides that throughout the period of the leave of absence the employee does not receive any salary or wages from the employer, or from any other person or partnership with whom the employer does not deal at arm’s length, other than the amount by which the employee’s salary or wages under the arrangement was deferred or is to be reduced or, amounts that are based on a percentage of the salary or wage scale of employees of the employer, which percentage is fixed in respect of the employee for the deferral period and the leave of absence, and the reasonable fringe benefits that the employer usually pays to or on behalf of employees, the arrangement provides that the amounts deferred in respect of the employee under the arrangement are held by or for the account of a trust governed by a plan or arrangement that is an employee benefit plan within the meaning of the definition thereof in subsection 248(1) of the Act, and provides that the amount that may reasonably be considered to be the income of the trust for a taxation year that has been earned by it for the benefit of the employee shall be paid in the year to the employee, or are held by or for the account of any person other than a trust referred to in clause (A), and provides that the amount in respect of interest or other additional amounts that may reasonably be considered to have accrued to or for the benefit of the employee to the end of a taxation year shall be paid in the year to the employee, the arrangement provides that the employee is to return to his regular employment with the employer or an employer that participates in the same or a similar arrangement after the leave of absence for a period that is not less than the period of the leave of absence, and subject to subparagraph (iv), the arrangement provides that all amounts held for the employee’s benefit under the arrangement shall be paid to the employee out of or under the arrangement no later than the end of the first taxation year that commences after the end of the deferral period; between an employer and an employee that is established before July 28, 1986 where it is reasonable to conclude, having regard to all the circumstances, including the terms and conditions of the arrangement and any agreement relating thereto, that the arrangement is not established to provide benefits on or after retirement but is established for the main purpose of permitting the employee to fund, through salary or wage deferrals, a leave of absence from the employment and under which the deferrals in respect of the leave of absence commenced before 1987; that is established for the purpose of deferring the salary or wages of a professional on-ice official for his services as such with the National Hockey League if, in the case of an official resident in Canada, the trust or other person who has custody and control of any funds, investments or other property under the arrangement is resident in Canada; or between a corporation and an employee of the corporation or a corporation related thereto under which the employee (or, after the employee’s death, a dependant or relation of the employee or the legal representative of the employee) may or shall receive an amount that may reasonably be attributable to duties of an office or employment performed by the employee on behalf of the corporation or a corporation related thereto where all amounts that may be received under the arrangement shall be received after the time of the employee’s death or retirement from, or loss of, the office or employment and no later than the end of the first calendar year commencing thereafter, and the aggregate of all amounts each of which may be received under the arrangement depends on the fair market value of shares of the capital stock of the corporation or a corporation related thereto at a time within the period that commences one year before the time of the employee’s death or retirement from, or loss of, the office or employment and ends at the time the amount is received, unless, by reason of the arrangement or a series of transactions that includes the arrangement, the employee or a person with whom the employee does not deal at arm’s length is entitled, either immediately or in the future, either absolutely or contingently, to receive or obtain any amount or benefit granted or to be granted for the purpose of reducing the impact, in whole or in part, of any reduction in the fair market value of the shares of the corporation or a corporation related thereto. For the purposes of paragraph 6801(a), if an employee’s leave of absence is suspended on or after March 15, 2020 (referred to in this subsection as the “first period”) and the leave of absence resumes on or before April 30, 2022 (referred to in this subsection as the “second period”), the employee’s first period and second period are deemed to be one continuous leave of absence; and amounts held for the employee’s benefit under the arrangement shall be paid to the employee out of or under the arrangement no later than the end of the first taxation year that commences after the start of the second period. If the six-year period referred to in subparagraph 6801(a)(i) in respect of an arrangement would end during the period beginning on March 15, 2020 and ending on April 30, 2022, the reference in that subparagraph to “six years” is to be read as a reference to “eight years”. For the purposes of paragraph (n) of the definition retirement compensation arrangement in subsection 248(1) of the Act, a prescribed plan or arrangement is the plan instituted by the Canada Pension Plan; a provincial pension plan as defined in section 3 of the Canada Pension Plan; a plan instituted by the Unemployment Insurance Act; a plan pursuant to an agreement in writing that is established for the purpose of deferring the salary or wages of a professional on-ice official for the official’s services as such with the National Hockey League if, in the case of an official resident in Canada, the trust or other person who has custody and control of any funds, investments or other property under the plan is resident in Canada; an arrangement under which all contributions are made pursuant to a law of Canada or a province, where one of the main purposes of the law is to enforce minimum standards with respect to wages, vacation entitlement or severance pay; an arrangement under which all contributions are made in connection with a dispute regarding the entitlement of one or more persons to benefits to be received or enjoyed by the person or persons; a plan or arrangement instituted by the social security legislation of a country other than Canada or of a state, province or other political subdivision of such a country; a trust established to hold shares of Air Canada, pursuant to the June 2009 memorandum of understanding and the April 2022 letter of intent between Air Canada and certain trade unions who represent employees of Air Canada, if the shares are held by the trust for the benefit of the trade unions, amounts received or receivable by the trust in respect of the shares, whether as dividends, proceeds of disposition or otherwise, are not to be distributed unless each of the trade unions directs the trustee to contribute, from time to time, the amounts to one or more registered pension plans under which Air Canada is a participating employer, or the amounts are paid to recipients in the manner contemplated in the April 2022 letter of intent between Air Canada and certain trade unions who represent employees of Air Canada, and all of the property of the trust is distributed no later than December 31, 2037, or in relation to the wind-up of a registered pension plan sponsored by Fraser Papers Inc., if shares are held by the trust for the benefit of the registered pension plan, and the trustee will contribute amounts received or receivable by the trust in respect of the shares, whether as dividends, proceeds of disposition or otherwise, to the registered pension plan, not later than December 31, 2018; or a trust and partnership established pursuant to the June 9, 2017 plan of compromise, arrangement and reorganization for U.S. Steel Canada Inc. under the Companies’ Creditors Arrangement Act where the trust contributes amounts received or receivable by it to registered pension plans sponsored by U.S. Steel Canada Inc., and the limited partners of the partnership are the trust and employee life and health trusts established for employees and former employees of U.S. Steel Canada Inc. For the purpose of paragraph 8(1)(m.2) of the Act, each of the following is a prescribed plan: the pension plan established as a consequence of the establishment, by section 27 of the Members of Parliament Retiring Allowances Act, of the Members of Parliament Retirement Compensation Arrangements Account; and the pension plan established by the Retirement Compensation Arrangements Regulations, No. 1. For the purpose of subsection 207.6(6) of the Act, each of the following is a prescribed plan or arrangement: the pension plan established as a consequence of the establishment, by section 27 of the Members of Parliament Retiring Allowances Act, of the Members of Parliament Retirement Compensation Arrangements Account; the pension plan established by the Retirement Compensation Arrangements Regulations, No. 1; and the pension plan established by the Retirement Compensation Arrangements Regulations, No. 2. For the purposes of the definition foreign retirement arrangement in subsection 248(1) of the Act, a prescribed plan or arrangement is a plan or arrangement to which subsection 408(a), (b) or (h) of the United States’ Internal Revenue Code of 1986, as amended from time to time, applies. foreign non-profit organization means, at any time before 1995, an organization that at that time meets the conditions in subparagraphs (b)(i) to (iii), or that at that time is not operated for the purpose of profit, and whose assets are situated primarily outside Canada throughout the calendar year that includes that time, and at any time after 1994, an organization that at that time is not operated for the purpose of profit, has its main place of management outside Canada, and carries on its activities primarily outside Canada. (organisme étranger à but non lucratif) foreign plan means a plan or arrangement (determined without regard to subsection 207.6(5) of the Act) that would, but for paragraph (l) of the definition retirement compensation arrangement in subsection 248(1) of the Act, be a retirement compensation arrangement. (régime étranger) qualifying entity means a non-resident entity that holds all or part of the assets of a foreign plan where the following conditions are satisfied: the entity is resident in a country under the laws of which an income tax is imposed, and where those laws provide an exemption from tax, a reduced rate of tax or other favourable tax treatment for entities that hold assets of pension or other retirement plans, the entity qualifies for the favourable treatment. (entité admissible) For the purposes of this section, an employer is an electing employer for a calendar year with respect to a foreign plan where the employer has sent or delivered to the Minister a letter stating that the employer elects to have this section apply with respect to contributions to the foreign plan, and the letter was sent or delivered on or before the last day of February in the year following the first calendar year after 1991 in which a contribution that is, or would be if subsection 207.6(5.1) of the Act were read without reference to paragraph (a) of that subsection, a resident’s contribution (as defined in that subsection) was made under the foreign plan in respect of services rendered by an individual to the employer, or any later date that is acceptable to the Minister, except that an employer is not an electing employer for a year with respect to a foreign plan if the Minister has granted written permission for the employer to revoke, for the year or a preceding calendar year, the election made under paragraph (a) in respect of the foreign plan. Except as otherwise permitted in writing by the Minister, an election made by a trade union for the purpose of subsection (2) is valid only if it is made by the highest-level structural unit of the union. For the purpose of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons in a calendar year before 1992 is a prescribed contribution where the contribution is paid to a qualifying entity; each employer (in this subsection referred to as a “contributor”) that makes a contribution under the foreign plan in the year is a non-resident corporation throughout the year, a partnership that makes contributions under the foreign plan primarily in respect of services rendered outside Canada to the partnership by non-resident employees, or a foreign non-profit organization throughout the year; if a corporation or partnership (other than a corporation or partnership that is a foreign non-profit organization throughout the year) is a contributor, no individual who is entitled (either absolutely or contingently) to benefits under the foreign plan is a member of a registered pension plan, or a beneficiary under a deferred profit sharing plan, to which a contributor, or a person or body of persons not dealing at arm’s length with a contributor, makes, or is required to make, contributions in relation to the year; contributions made in the year under the foreign plan for the benefit of individuals resident in Canada are reasonable in relation to contributions made under the plan for the benefit of non-resident individuals; and the foreign plan is not a pension plan the registration of which under the Act has been revoked. For the purpose of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons at any time in 1992, 1993 or 1994 in respect of services rendered by an individual to an employer is a prescribed contribution where the employer is an electing employer for the year with respect to the foreign plan; if the employer is not at that time a foreign non-profit organization, the individual is not a member of a registered pension plan (other than a specified multi-employer plan, as defined in subsection 147.1(1) of the Act), or a deferred profit sharing plan, in which the employer, or a person or body of persons that does not deal at arm’s length with the employer, participates; and the employer is a corporation that is not resident in Canada at that time, a foreign non-profit organization at that time, or the individual was non-resident at any time before the contribution is made and became a member of the foreign plan before the end of the month after the month in which the individual became resident in Canada. For the purposes of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons at any time in a calendar year after 1994 in respect of services rendered by an individual to an employer is a prescribed contribution where if the employer is at that time a foreign non-profit organization, the amount that, if subsection 8301(1) were read without reference to paragraph (b) of that subsection, would be the individual’s pension adjustment for the year in respect of the employer is nil, or the amount that would be the individual’s pension adjustment for the year in respect of the employer if all contributions made under the foreign plan in the year in respect of the individual were prescribed by this subsection, where the year is 1996, section 8308.1 were read without reference to subsection (4.1), and where the year is 1997, subparagraph 8308.1(2)(b)(v) were read as the amount, if any, by which 18% of the individual’s resident compensation from the employer for the year exceeds $1,000, and” does not exceed the lesser of the money purchase limit for the year, and 18% of the individual’s compensation (as defined in subsection 147.1(1) of the Act) for the year from the employer; the employer is at that time a foreign non-profit organization, and a period in the year throughout which the individual rendered services to the employer would be, under paragraph 8507(3)(a), a qualifying period of the individual with respect to another employer if that paragraph were read without reference to subparagraph (iv) of that paragraph, subsection 8308(7) applies with respect to the determination of the individual’s pension adjustment for the year with respect to each employer; and if the employer is not at that time a foreign non-profit organization, the individual was non-resident at any time before the contribution is made, the individual became a member of the foreign plan before the end of the month after the month in which the individual became resident in Canada, and the individual is not a member of a registered pension plan, or a deferred profit sharing plan, in which the employer, or a person or body of persons that does not deal at arm’s length with the employer, participates. For the purposes of subparagraphs (5)(d)(ii) and (6)(e)(ii), where benefits provided to an individual under a particular plan or arrangement are replaced by benefits under another plan or arrangement, the other plan or arrangement is deemed, in respect of the individual, to be the same plan or arrangement as the particular plan or arrangement. For the purpose of paragraph 94.1(2)(a) of the Act, an offshore investment fund property (within the meaning assigned by subsection 94.1(1) of the Act) of a taxpayer that was acquired by him by way of bequest or inheritance from a deceased person who, throughout the five years immediately preceding his death, was not resident in Canada, had not been acquired by the deceased from a person resident in Canada, and is not property substituted for property acquired by the deceased from a person resident in Canada is a prescribed offshore investment fund property of the taxpayer. [Repealed, SOR/85-696, s. 18] For the purpose of subsection 12(9) of the Act, each of the following debt obligations (other than a debt obligation that is an indexed debt obligation) in respect of which a taxpayer has at any time acquired an interest is a prescribed debt obligation: a particular debt obligation in respect of which no interest is stipulated to be payable in respect of its principal amount, a particular debt obligation in respect of which the proportion of the payments of principal to which the taxpayer is entitled is not equal to the proportion of the payments of interest to which he is entitled, a particular debt obligation in respect of which it can be determined, at the time the taxpayer acquired the interest therein, that the maximum amount of interest payable thereon in a year ending after that time is less than the maximum amount of interest payable thereon in a subsequent year, other than a debt obligation that is described in paragraph (a) or (b), or meets the following conditions: it is issued by, or by an agency of, the Government of Canada or a province, and it satisfies the conditions in subparagraphs (2)(c.1)(i) and (ii); and a particular debt obligation, other than one described in paragraph (a), (b) or (c), in respect of which the amount of interest to be paid in respect of any taxation year is, under the terms and conditions of the obligation, dependent on a contingency existing after the year, and, for the purposes of this subsection, a debt obligation includes, for greater certainty, all of the issuer’s obligations to pay principal and interest under that obligation. For the purposes of subsection 12(9) of the Act, the amount determined in prescribed manner that is deemed to accrue to a taxpayer as interest on a prescribed debt obligation in each taxation year during which he holds an interest in the obligation is, in the case of a prescribed debt obligation described in paragraph (1)(a), the amount of interest that would be determined in respect thereof if interest thereon for that year were computed on a compound interest basis using the maximum of all rates each of which is a rate computed in respect of each possible circumstance under which an interest of the taxpayer in the obligation could mature or be surrendered or retracted, and using assumptions concerning the interest rate and compounding period that will result in a present value, at the date of purchase of the interest, of all the maximum payments thereunder, equal to the cost thereof to the taxpayer; in the case of a prescribed debt obligation described in paragraph (1)(b), the aggregate of all amounts each of which is the amount of interest that would be determined in respect of his interest in a payment under the obligation if interest thereon for that year were computed on a compound interest basis using the specified cost of his interest therein and the specified interest rate in respect of his total interest in the obligation, and for the purposes of this paragraph, the specified cost of his interest in a payment under the obligation is its present value at the date of purchase computed using the specified interest rate, and the specified interest rate is the maximum of all rates each of which is a rate computed using assumptions concerning the interest rate and compounding period that will result in a present value, at the date of purchase of the interest, of all the maximum payments to the taxpayer in respect of his total interest in the obligation, equal to the cost of that interest to the taxpayer; in the case of a prescribed debt obligation described in paragraph (1)(c), other than an obligation in respect of which paragraph (c.1) applies, the greater of the maximum amount of interest thereon in respect of the year, and the maximum amount of interest that would be determined in respect thereof if interest thereon for that year were computed on a compound interest basis using the maximum of all rates each of which is a rate computed using assumptions concerning the interest rate and compounding period that will result in a present value, at the date of issue of the obligation, of all the maximum payments thereunder, equal to its principal amount; in the case of a prescribed debt obligation described in paragraph (1)(c) for which the rate of interest stipulated to be payable in respect of each period throughout which the obligation is outstanding is fixed at the date of issue of the obligation, and the stipulated rate of interest applicable at each time is not less than each stipulated rate of interest applicable before that time, the amount of interest that would be determined in respect of the year if interest on the obligation for that year were computed on a compound interest basis using the maximum of all rates each of which is the compound interest rate that, for a particular assumption with respect to when the taxpayer’s interest in the obligation will mature or be surrendered or retracted, results in a present value (at the date the taxpayer acquires the interest in the obligation) of all payments under the obligation after the acquisition by the taxpayer of the taxpayer’s interest in the obligation equal to the principal amount of the obligation at the date of acquisition; and in the case of a prescribed debt obligation described in paragraph (1)(d), the maximum amount of interest thereon that could be payable thereunder in respect of that year. For the purpose of this section, any bonus or premium payable under a debt obligation is considered to be an amount of interest payable under the obligation. a taxpayer has an interest in a debt obligation (in this subsection referred to as the “first interest”) under which there is a conversion privilege or an option to extend its term upon maturity, and at the time the obligation was issued (or, if later, at the time the conversion privilege or option was added or modified), circumstances could reasonably be foreseen under which the holder of the obligation would, by exercising the conversion privilege or option, acquire an interest in a debt obligation with a principal amount less than its fair market value at the time of acquisition, the subsequent interest in any debt obligation acquired by the taxpayer by exercising the conversion privilege or option shall be considered to be a continuation of the first interest. For the purposes of making the computations referred to in paragraphs (2)(a), (b), (c) and (c.1), the compounding period shall not exceed one year and any interest rate used shall be constant from the time of acquisition or issue, as the case may be, until the time of maturity, surrender or retraction. For the purpose of the definition investment contract in subsection 12(11) of the Act, a registered retirement savings plan or a registered retirement income fund, other than a plan or fund to which a trust is a party, is a prescribed contract throughout a calendar year where an annuitant (as defined in subsection 146(1) or 146.3(1) of the Act, as the case may be) under the plan or fund is alive at any time in the year or was alive at any time in the preceding calendar year. For the purpose of subparagraph 16(6)(a)(i) of the Act, where at any time in a taxation year a taxpayer holds an interest in an indexed debt obligation, there is prescribed as interest receivable and received by the taxpayer in the year in respect of the obligation the total of the total of all amounts each of which is the amount by which the amount payable in respect of the taxpayer’s interest in an indexed payment under the obligation (other than a payment that is an excluded payment with respect to the taxpayer for the year) has, because of a change in the purchasing power of money, increased over an inflation adjustment period of the obligation that ends in the year that portion of the total, if any, determined under subparagraph (i) that is required, otherwise than by subsection 16(6) of the Act, to be included in computing the taxpayer’s income for the year or a preceding taxation year, and the total of all amounts each of which is the amount by which the amount payable in respect of the taxpayer’s interest in an indexed payment under the obligation (other than a payment that is an excluded payment with respect to the taxpayer for the year) has, by reason of a change in the purchasing power of money, decreased over an inflation adjustment period of the obligation that ends in the year, and where the non-indexed debt obligation associated with the indexed debt obligation is an obligation that is described in any of paragraphs 7000(1)(a) to (d), the amount of interest that would be determined under subsection 7000(2) to accrue to the taxpayer in respect of the non-indexed debt obligation in the particular period that begins at the beginning of the first inflation adjustment period of the indexed debt obligation in respect of the taxpayer that ends in the year, and ends at the end of the last inflation adjustment period of the indexed debt obligation in respect of the taxpayer that ends in the year if the particular period were a taxation year of the taxpayer and the taxpayer’s interest in the indexed debt obligation were an interest in the non-indexed debt obligation. For the purposes of subparagraph 16(6)(a)(ii) of the Act, where at any time in a taxation year a taxpayer holds an interest in an indexed debt obligation, there is prescribed as interest payable and paid by the taxpayer in the year in respect of the obligation the amount, if any, by which the total of the amounts, if any, determined under subparagraphs (1)(a)(ii) and (iii) for the year in respect of the taxpayer’s interest in the obligation the amount, if any, determined under subparagraph (1)(a)(i) for the year in respect of the taxpayer’s interest in the obligation. For the purposes of subparagraph 16(6)(b)(i) of the Act, where at any time in a taxation year an indexed debt obligation is an obligation of a taxpayer, there is prescribed as interest payable in respect of the year by the taxpayer in respect of the obligation the amount, if any, that would be determined under paragraph (1)(a) in respect of the taxpayer for the year if, at each time at which the obligation is an obligation of the taxpayer, the taxpayer were the holder of the obligation and not the debtor under the obligation. For the purposes of subparagraph 16(6)(b)(ii) of the Act, where at any time in a taxation year an indexed debt obligation is an obligation of a taxpayer, there is prescribed as interest receivable and received by the taxpayer in the year in respect of the obligation the amount, if any, that would be determined under subsection (2) in respect of the taxpayer for the year if, at each time at which the obligation is an obligation of the taxpayer, the taxpayer were the holder of the obligation and not the debtor under the obligation. For the purpose of determining the amount by which an indexed payment under an indexed debt obligation has increased or decreased over a period because of a change in the purchasing power of money, the amount of the indexed payment at any time shall be determined using the method for computing the amount of the payment at the time it is to be made, adjusted in a reasonable manner to take into account the earlier date of computation. For the purposes of this section, the non-indexed debt obligation associated with an indexed debt obligation is the debt obligation that would result if the indexed debt obligation were amended to eliminate all adjustments determined by reference to changes in the purchasing power of money. excluded payment with respect to a taxpayer for a taxation year means an indexed payment under an indexed debt obligation where the non-indexed debt obligation associated with the indexed debt obligation provides for the payment, at least annually, of interest at a single fixed rate, and the indexed payment corresponds to one of the interest payments referred to in paragraph (a), but does not include payments under an indexed debt obligation where, at any time in the year, the taxpayer’s proportionate interest in a payment to be made under the obligation after that time differs from the taxpayer’s proportionate interest in any other payment to be made under the obligation after that time; (paiement exclu) indexed payment means, in relation to an indexed debt obligation, an amount payable under the obligation that is determined by reference to the purchasing power of money; (paiement indexé) inflation adjustment period of an indexed debt obligation means, in relation to a taxpayer, where the taxpayer acquires and disposes of the taxpayer’s interest in the obligation in the same regular adjustment period of the obligation, the period that begins when the taxpayer acquires the interest in the obligation and ends when the taxpayer disposes of the interest, and in any other case, each of the following consecutive periods: the period that begins when the taxpayer acquires the taxpayer’s interest in the obligation and ends at the end of the regular adjustment period of the obligation in which the taxpayer acquires the interest in the obligation, each succeeding regular adjustment period of the obligation throughout which the taxpayer holds the interest in the obligation, and where the taxpayer does not dispose of the interest in the obligation at the end of a regular adjustment period of the obligation, the period that begins immediately after the last period referred to in subparagraphs (i) and (ii) and that ends when the taxpayer disposes of the interest in the obligation; (période de redressement pour inflation) regular adjustment period of an indexed debt obligation means where the terms or conditions of the obligation provide that, while the obligation is outstanding, indexed payments are to be made at regular intervals not exceeding 12 months in length, each of the following periods: the period that begins when the obligation is issued and ends when the first indexed payment is required to be made, and each succeeding period beginning when an indexed payment is required to be made and ending when the next indexed payment is required to be made, where paragraph (a) does not apply and the obligation is outstanding for less than 12 months, the period that begins when the obligation is issued and ends when the obligation ceases to be outstanding, and in any other case, each of the following periods: the 12-month period that begins when the obligation is issued, each succeeding 12-month period throughout which the obligation is outstanding, and where the obligation ceases to be outstanding at a time other than the end of a 12-month period referred to in subparagraph (i) or (ii), the period that commences immediately after the last period referred to in those subparagraphs and that ends when the obligation ceases to be outstanding. (période de redressement normale) For the purposes of subsections 27(2) and (3), the definition private corporation in subsection 89(1) and subsection 124(3) of the Act, the following are prescribed federal Crown corporations: Canada Deposit Insurance Corporation; Canada Hibernia Holding Corporation; Canada Lands Company Limited; Canada Mortgage and Housing Corporation; Canada Post Corporation; Canadian Broadcasting Corporation; Cape Breton Development Corporation; Freshwater Fish Marketing Corporation; Royal Canadian Mint; VIA Rail Canada Inc; and Project Deliver II Ltd. For the purposes of paragraph 12(1)(x) of the Act, prescribed amount means an amount paid to a corporation by the Native Economic Development Board created under Order in Council P.C. 1983-3394 of October 31, 1983 pursuant to the Native Economic Development Program or paid to a corporation under the Aboriginal Capital Corporation Program of the Canadian Aboriginal Economic Development Strategy, where all of the shares of the capital stock of the corporation are owned by aboriginal individuals, held in trust for the exclusive benefit of aboriginal individuals, owned by a corporation, all the shares of which are owned by aboriginal individuals or held in trust for the exclusive benefit of aboriginal individuals, or owned or held in a combination of ownership structures described in subparagraph (i), (ii) or (iii) and the purpose of the corporation is to provide loans, loan guarantees, bridge financing, venture capital, lease financing, surety bonding or other similar financing services to aboriginal enterprises; prescribed assistance within the meaning assigned by section 6702; an amount that is the portion of a student loan forgiven under section 9.2 of the Canada Student Financial Assistance Act or under section 11.1 of the Canada Student Loans Act; an amount that is the portion of a student loan forgiven under a provincial program that would be a prescribed amount because of paragraph (c) if section 11.1 of the Canada Student Loans Act or 9.2 of the Canada Student Financial Assistance Act applied to loans under that program; an emissions allowance issued to the taxpayer under the laws of Canada or a province; or an amount that is a non-repayable contribution in respect of battery cell or battery module production in Canada and that is paid under the terms of the special contribution agreement of May 5, 2023 between the Government of Canada and 1000511515 Ontario Inc., or the special contribution agreement of July 5, 2023 between the Government of Canada and NextStar Energy Inc. [Repealed, SOR/2001-295, s. 6] [Repealed, SOR/93-440, s. 1] An area is a prescribed northern zone for a taxation year for the purposes of section 110.7 of the Act where it is the Yukon Territory, the Northwest Territories or Nunavut; those parts of British Columbia, Alberta and Saskatchewan that lie north of 57°30‘N latitude; that part of Manitoba that lies north of 56°20‘N latitude, or north of 52°30‘N latitude and east of 95°25‘W longitude; that part of Ontario that lies north of 52°30‘N latitude, or north of 51°05‘N latitude and east of 89°10‘W longitude; that part of Quebec that lies north of 51°05‘N latitude, or north of the Gulf of St. Lawrence and east of 63°00‘W longitude; Labrador, including Belle Isle; or Haida Gwaii. An area is a prescribed intermediate zone for a taxation year for the purposes of section 110.7 of the Act where it is Anticosti Island, the Magdalen Islands or Sable Island, or where it is not part of a prescribed northern zone referred to in subsection (1) for the year and is that part of British Columbia that lies north of 55°35‘N latitude, north of 55°00‘N latitude and east of 122°00‘W longitude, or north of 55°13′N latitude and east of 123°16′W longitude; that part of Alberta that lies north of 55°00‘N latitude; that part of Saskatchewan that lies north of 55°00‘N latitude, north of 54°15‘N latitude and east of 107°00‘W longitude, or north of 53°20‘N latitude and east of 103°00‘W longitude; north of 53°20‘N latitude, north of 52°10‘N latitude and east of 97°40‘W longitude, or north of 51°30‘N latitude and east of 96°00‘W longitude; that part of Ontario that lies north of 50°35‘N latitude; or north of 50°35‘N latitude and west of 79°00‘W longitude, north of 49°00‘N latitude, east of 79°00‘W longitude and west of 74°00‘W longitude, north of 50°00‘N latitude, east of 74°00‘W longitude and west of 70°00‘W longitude, north of 50°45‘N latitude, east of 70°00‘W longitude and west of 65°30‘W longitude, or north of the Gulf of St. Lawrence, east of 65°30‘W longitude and west of 63°00‘W longitude. member of the taxpayer’s household includes the taxpayer; (membre de la maisonnée du contribuable) designated city means St. John’s, Halifax, Moncton, Quebec City, Montreal, Ottawa, Toronto, North Bay, Winnipeg, Saskatoon, Calgary, Edmonton and Vancouver. (ville désignée) For the purposes of this section and section 110.7 of the Act, the trip cost to a taxpayer in respect of a trip made by an individual who, at the time the trip was made, was a member of the taxpayer’s household is the least of the amount of employer-provided travel benefits, as defined in subsection 110.7(6) of the Act, that is claimed by the taxpayer in respect of the trip; the amount of travel assistance described in paragraph (a) of the definition employer-provided travel benefits in subsection 110.7(6) of the Act in respect of the trip, and travel expenses incurred by the taxpayer, or the spouse or common-law partner of the taxpayer, for the trip; and the lowest return airfare ordinarily available, at the time the trip was made, to the individual for flights between the place in which the individual resided immediately before the trip, or the airport nearest thereto, and the designated city that is nearest to that place. In determining the trip cost to the taxpayer in respect of the trip, if the amount determined under paragraph (2)(a) is nil, subsection (2) is to be read without reference to that paragraph. For the purposes of subsection (2), the amounts claimed by the taxpayer in paragraph (2)(a) in respect of a trip are deemed to be nil, unless the taxpayer was dealing at arm’s length with the employer at the time that the employer-provided travel benefits, as defined in subsection 110.7(6) of the Act, were provided to the taxpayer. For the purposes of subsection 80.3(4) of the Act, prescribed drought regions in respect of the 1995 calendar year are in Manitoba, the Local Government Districts of Alonsa, Fisher, Grahamdale, Grand Rapids and Mountain (South), the areas designated under The Northern Affairs Act (Manitoba) as the communities of Camperville, Crane River, Duck Bay, Homebrook, Mallard, Meadow Portage, Rock Ridge, Spence Lake and Waterhen, the Rural Municipalities of Eriksdale, Lawrence, Mossey River, Ste. Rose and Siglunes, and Skownan, in Saskatchewan, the Rural Municipalities of Antelope Park, Battle River, Beaver River, Biggar, Blaine Lake, Britannia, Buffalo, Cut Knife, Douglas, Eagle Creek, Eldon, Eye Hill, Frenchman Butte, Glenside, Grandview, Grass Lake, Great Bend, Heart’s Hill, Hillsdale, Kindersley, Loon Lake, Manitou Lake, Mariposa, Mayfield, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milton, Mountain View, North Battleford, Oakdale, Paynton, Parkdale, Perdue, Pleasant Valley, Prairie, Prairiedale, Progress, Redberry, Reford, Round Hill, Round Valley, Rosemont, Senlac, Spiritwood, Tramping Lake, Turtle River, Wilton and Winslow, and in Alberta, the Counties of Beaver, Camrose, Flagstaff, Lamont, Minburn, Paintearth, Smoky Lake, St. Paul, Strathcona, Thorhild, Two Hills and Vermilion River, the Municipal Districts of Bonnyville, MacKenzie, Northern Lights, Provost and Wainwright, and Special Areas 2, 3 and 4; the 1997 calendar year are in Ontario, the Counties of Hastings and Renfrew, Nova Scotia, in Manitoba, the Rural Municipalities of Albert, Alonsa, Archie, Arthur, Birtle, Boulton, Brenda, Cameron, Clanwilliam, Dauphin, Edward, Ellice, Glenella, Grahamdale, Harrison, Lakeview, Langford, Lansdowne, Lawrence, McCreary, Miniota, Minto, Morton, Ochre River, Park (South), Pipestone, Rosedale, Rossburn, Russell, Ste. Rose, Shellmouth, Shoal Lake, Sifton, Siglunes, Silver Creek, Strathclair, Turtle Mountain, Wallace, Westbourne, Whitewater and Winchester, in Saskatchewan, the Rural Municipalities of Abernethy, Antelope Park, Antler, Argyle, Baildon, Bengough, Benson, Big Stick, Biggar, Bratt’s Lake, Brock, Brokenshell, Browning, Buchanan, Calder, Caledonia, Cambria, Cana, Chester, Chesterfield, Churchbridge, Clinworth, Coalfields, Cote, Cymri, Deer Forks, Elcapo, Elmsthorpe, Emerald, Enniskillen, Enterprise, Estevan, Excel, Eye Hill, Fertile Belt, Fillmore, Foam Lake, Francis, Fox Valley, Garry, Glenside, Golden West, Good Lake, Grandview, Grass Lake, Grayson, Griffin, Happyland, Happy Valley, Hart Butte, Hazelwood, Heart’s Hill, Indian Head, Insinger, Ituna Bon Accord, Invermay, Kellross, Key West, Keys, Kingsley, Lajord, Lake Alma, Lake Johnston, Lake of The Rivers, Langenburg, Laurier, Lipton, Livingston, Lomond, Maple Creek, Mariposa, Martin, Maryfield, McLeod, Milton, Montmartre, Moose Creek, Moose Jaw, Moose Mountain, Moosomin, Mountain View, Mount Pleasant, North Qu’Appelle, Norton, Oakdale, Orkney, Old Post, Poplar Valley, Prairie, Prairiedale, Progress, Reciprocity, Redburn, Reford, Rocanville, Rosemount, St. Philips, Saltcoats, Scott, Silverwood, Sliding Hills, Souris Valley, South Qu’Appelle, Spy Hill, Stanley, Stonehenge, Storthoaks, Surprise Valley, Tecumseh, Terrell, The Gap, Tramping Lake, Tullymet, Wallace, Walpole, Waverley, Wawken, Wellington, Weyburn, Willow Bunch, Willowdale, Winslow and Wolseley, and in Alberta, the County of Forty Mile, the Municipal Districts of Acadia Valley, Cypress, Pincher Creek, Provost and Willow Creek, and Special Areas 2, 3 and 4; the 1998 calendar year are in Ontario, the Counties of Bruce, Grey, Huron and Oxford, and the Districts of Nipissing, Parry Sound, Sudbury and Thunder Bay, in Nova Scotia, the Counties of Annapolis, Colchester, Cumberland, Digby, Hants and Kings, in Saskatchewan, the Rural Municipalities of Aberdeen, Antelope Park, Arlington, Auvergne, Battle River, Bayne, Beaver River, Biggar, Blaine Lake, Blucher, Bone Creek, Britannia, Buffalo, Canaan, Chaplin, Chesterfield, Clinworth, Corman Park, Coteau, Coulee, Cut Knife, Douglas, Dundurn, Eagle Creek, Eldon, Enfield, Excelsior, Eye Hill, Fertile Valley, Frenchman Butte, Frontier, Glen Bain, Glen McPherson, Glenside, Grandview, Grant, Grass Lake, Grassy Creek, Gravelbourg, Great Bend, Harris, Hart Butte, Heart’s Hill, Hillsdale, Kindersley, King George, Lac Pelletier, Lacadena, Laird, Lake of The Rivers, Lawtonia, Lone Tree, Loon Lake, Loreburn, Mankota, Manitou Lake, Maple Bush, Mariposa, Marriott, Mayfield, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montrose, Morse, Mountain View, Newcombe, North Battleford, Oakdale, Old Post, Parkdale, Paynton, Perdue, Pinto Creek, Pleasant Valley, Poplar Valley, Prairie, Prairiedale, Progress, Redberry, Reford, Reno, Riverside, Rosedale, Rosemount, Round Hill, Round Valley, Rosthern, Rudy, St. Andrews, Saskatchewan Landing, Senlac, Shamrock, Snipe Lake, Stonehenge, Swift Current, Tramping Lake, Turtle River, Val Marie, Vanscoy, Victory, Waverly, Webb, Whiska Creek, White Valley, Willow Bunch, Wilton, Winslow, Wise Creek, and Wood River, and in Alberta, the Counties of Beaver, Camrose, Flagstaff, Grande Prairie, Lamont, Minburn, Paintearth, St. Paul, Smoky Lake, Stettler, Two Hills and Vermilion River, the Municipal Districts of Acadia, Big Lakes, Birch Hills, Bonnyville, Clear Hills, East Peace, Fairview, Greenview, Northern Lights, Peace, Provost, Saddle Hills, Smoky River, Spirit River, Starland, Wainwright and Yellowhead, and Special Areas 2, 3 and 4;

the 1999 calendar year are in Nova Scotia, the Counties of Annapolis, Colchester, Cumberland, Digby, Hants, Kings and Yarmouth, in British Columbia, the Peace River Regional District, in Saskatchewan, the Rural Municipalities of Beaver River and Loon Lake, and in Alberta, the Counties of Athabaska, Barrhead, Birch Hills, Grande Prairie, Lac Ste. Anne, Lakeland, Lamont, Saddle Hills, Smoky Lake, St. Paul, Thorhild, Two Hills, Westlock and Woodlands, and the Municipal Districts of Big Lakes, Bonnyville, Clear Hills, East Peace, Fairview, Greenview, Lesser Slave Lake, MacKenzie, Northern Lights, Peace, Smoky River and Spirit River; the 2000 calendar year are in British Columbia, the Regional District of East Kootenay, in Saskatchewan, the Rural Municipalities of Antelope Park, Battle River, Big Stick, Biggar, Blaine Lake, Buffalo, Chesterfield, Clinworth, Cut Knife, Deer Forks, Douglas, Duck Lake, Eagle Creek, Enterprise, Eye Hill, Fox Valley, Glenside, Grandview, Grass Lake, Great Bend, Happyland, Hearth’s Hill, Kindersley, Laird, Leask, Maple Creek, Mariposa, Marriott, Mayfield, Meeting Lake, Milton, Mountain View, Newcombe, North Battleford, Oakdale, Paynton, Piapot, Pleasant Valley, Prairiedale, Progress, Redberry, Reford, Reno, Rosemount, Rosthern, Round Valley, Senlac, St. Louis, Tramping Lake and Winslow, and in Alberta, the Counties of Barrhead, Birch Hills, Cardston, Cypress, Flagstaff, Forty Mile, Grande Prairie, Kneehill, Lac Ste. Anne, Lethbridge, Newell, Paintearth, Saddle Hills, Starland, Stettler, Vulcan, Warner, Wheatland and Woodlands, the Improvement Districts of Kananaskis and Waterton, the Municipal Districts of Acadia, Fairview, Foothills, Greenview, Peace, Pincher Creek, Provost, Ranchland, Smoky River, Spirit River, Taber and Willow Creek, and the Municipality of Crowsnest Pass and Special Areas 2, 3, and 4; the 2001 calendar year are in Ontario, the Counties of Elgin, Essex, Haldimand, Hastings, Huron, Lambton, Lanark, Lennox and Addington, Middlesex, Norfolk, Northumberland, Oxford and Renfrew, the United Counties of Leeds and Grenville, the Frontenac Management Board, the Regional Municipality of Niagara, the Cities of Brant County, Brantford, Hamilton, Ottawa and Prince Edward County and the Municipality of Chatham-Kent, in Quebec, the Magdalen Islands, in Nova Scotia, the Counties of Annapolis, Antigonish, Cape Breton, Colchester, Cumberland, Digby, Hants, Inverness, Kings, Pictou, Richmond and Victoria, in New Brunswick, the Counties of Albert, Kent and Westmorland, in Manitoba, the Rural Municipality of Kelsey, in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and Okanagan-Similkameen, Prince Edward Island, in Saskatchewan, the Rural Municipalities of Aberdeen, Abernethy, Antelope Park, Arborfield, Arlington, Arm River, Auvergne, Baildon, Barrier Valley, Battle River, Bayne, Beaver River, Bengough, Big Arm, Big Quill, Big River, Big Stick, Biggar, Birch Hills, Bjorkdale, Blaine Lake, Blucher, Bone Creek, Bratt’s Lake, Britannia, Brokenshell, Buchanan, Buckland, Buffalo, Calder, Caledonia, Cana, Canaan, Canwood, Carmichael, Caron, Chaplin, Chester, Chesterfield, Churchbridge, Clayton, Clinworth, Colonsay, Connaught, Corman Park, Cote, Coteau, Coulee, Craik, Cupar, Cut Knife, Deer Forks, Douglas, Duck Lake, Dufferin, Dundurn, Eagle Creek, Edenwold, Elcapo, Eldon, Elfros, Elmsthorpe, Emerald, Enfield, Enterprise, Excel, Excelsior, Eye Hill, Eyebrow, Fertile Valley, Fish Creek, Flett’s Springs, Foam Lake, Fox Valley, Francis, Frenchman Butte, Frontier, Garden River, Garry, Glen Bain, Glen Mcpherson, Glenside, Good Lake, Grandview, Grant, Grass Lake, Grassy Creek, Gravelbourg, Grayson, Great Bend, Gull Lake, Happy Valley, Happyland, Harris, Hart Butte, Hazel Dell, Heart’s Hill, Hillsborough, Hillsdale, Hoodoo, Hudson Bay, Humboldt, Huron, Indian Head, Insinger, Invergordon, Invermay, Ituna Bon Accord, Kellross, Kelvington, Key West, Keys, Kindersley, King George, Kingsley, Kinistino, Kutawa, Lac Pelletier, Lacadena, Laird, Lajord, Lake Johnston, Lake Lenore, Lake of The Rivers, Lakeland, Lakeside, Lakeview, Last Mountain Valley, Lawtonia, Leask, Leroy, Lipton, Livingston, Lone Tree, Longlaketon, Loon Lake, Loreburn, Lost River, Lumsden, Manitou Lake, Mankota, Maple Bush, Maple Creek, Mariposa, Marquis, Marriott, Mayfield, Mccraney, Mckillop, McLeod, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montmartre, Montrose, Moose Jaw, Moose Range, Morris, Morse, Mount Hope, Mountain View, Newcombe, Nipawin, North Battleford, North Qu’Appelle, Norton, Oakdale, Old Post, Orkney, Paddockwood, Parkdale, Paynton, Pense, Perdue, Piapot, Pinto Creek, Pittville, Pleasant Valley, Pleasantdale, Ponass Lake, Poplar Valley, Porcupine, Prairie Rose, Prairiedale, Preeceville, Prince Albert, Progress, Redberry, Redburn, Reford, Reno, Riverside, Rodgers, Rosedale, Rosemount, Rosthern, Round Hill, Round Valley, Rudy, Saltcoats, Sarnia, Saskatchewan Landing, Sasman, Scott, Senlac, Shamrock, Shellbrook, Sherwood, Sliding Hills, Snipe Lake, South Qu’Appelle, Spalding, Spiritwood, St. Andrews, St. Louis, St. Peter, St. Philips, Stanley, Star City, Stonehenge, Surprise Valley, Sutton, Swift Current, Terrell, The Gap, Three Lakes, Tisdale, Torch River, Touchwood, Tramping Lake, Tullymet, Turtle River, Usborne, Val Marie, Vanscoy, Victory, Viscount, Wallace, Waverley, Webb, Wheatlands, Whiska Creek, White Valley, Willner, Willow Bunch, Willow Creek, Wilton, Winslow, Wise Creek, Wolseley, Wolverine, Wood Creek, Wood River and Wreford, Alberta, and in Newfoundland and Labrador, the island of Newfoundland; the 2002 calendar year are in Ontario, the Counties of Bruce, Elgin, Lambton and Middlesex, the Municipality of Chatham-Kent, the District of Cochrane and the Regional Municipalities of Halton and Peel, in Manitoba, the Rural Municipalities of Albert, Alonsa, Archie, Argyle, Arthur, Birtle, Blanshard, Brenda, Cameron, Clanwilliam, Coldwell, Cornwallis, Daly, Dauphin, Edward, Ellice, Elton, Eriksdale, Ethelbert, Gilbert Plains, Glenella, Glenwood, Grahamdale, Grandview, Hamiota, Harrison, Hillsburg, Kelsey, Langford, Lansdowne, Lawrence, McCreary, Miniota, Minitonas, Minto, Morton, Mossey River, Mountain, North Cypress, Oakland, Ochre River, Odanah, Park, Pipestone, Riverside, Roblin, Rosedale, Rossburn, Russell, Saskatchewan, Shell River, Shellmouth-Boulton, Shoal Lake, Sifton, Siglunes, Silver Creek, South Cypress, St. Laurent, Ste. Rose, Strathclair, Strathcona, Swan River, Turtle Mountain, Wallace, Whitehead, Whitewater, Winchester and Woodworth, and the unorganized territory that is north of the Rural Municipality of Alonsa, between that rural municipality and the south shore of Lake Manitoba, in Saskatchewan, the Rural Municipalities of Aberdeen, Abernethy, Antelope Park, Antler, Arborfield, Argyle, Arlington, Arm River, Auvergne, Baildon, Barrier Valley, Battle River, Bayne, Beaver River, Big Arm, Big Quill, Big River, Big Stick, Biggar, Birch Hills, Bjorkdale, Blaine Lake, Blucher, Bone Creek, Britannia, Buchanan, Buckland, Buffalo, Calder, Cana, Canaan, Canwood, Carmichael, Caron, Chaplin, Chesterfield, Churchbridge, Clayton, Clinworth, Colonsay, Connaught, Corman Park, Cote, Coteau, Coulee, Craik, Cupar, Cut Knife, Deer Forks, Douglas, Duck Lake, Dufferin, Dundurn, Eagle Creek, Edenwold, Elcapo, Eldon, Elfros, Emerald, Enfield, Enniskillen, Enterprise, Excelsior, Eye Hill, Eyebrow, Fertile Belt, Fertile Valley, Fish Creek, Flett’s Springs, Foam Lake, Fox Valley, Frenchman Butte, Frontier, Garden River, Garry, Glen Bain, Glen McPherson, Glenside, Good Lake, Grandview, Grant, Grass Lake, Grassy Creek, Gravelbourg, Grayson, Great Bend, Gull Lake, Happyland, Harris, Hazel Dell, Hazelwood, Heart’s Hill, Hillsborough, Hillsdale, Hoodoo, Hudson Bay, Humboldt, Huron, Insinger, Invergordon, Invermay, Ituna Bon Accord, Kellross, Kelvington, Keys, Kindersley, King George, Kingsley, Kinistino, Kutawa, Lac Pelletier, Lacadena, Laird, Lake Johnston, Lake Lenore, Lakeland, Lakeside, Lakeview, Langenburg, Last Mountain Valley, Lawtonia, Leask, Leroy, Lipton, Livingston, Lone Tree, Longlaketon, Loon Lake, Loreburn, Lost River, Lumsden, Manitou Lake, Mankota, Maple Bush, Maple Creek, Mariposa, Marquis, Marriott, Martin, Maryfield, Mayfield, McCraney, McKillop, McLeod, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montrose, Moose Creek, Moose Jaw, Moose Mountain, Moose Range, Moosomin, Morris, Morse, Mount Hope, Mount Pleasant, Mountain View, Newcombe, Nipawin, North Battleford, North Qu’appelle, Oakdale, Orkney, Paddockwood, Parkdale, Paynton, Pense, Perdue, Piapot, Pinto Creek, Pittville, Pleasant Valley, Pleasantdale, Ponass Lake, Porcupine, Prairie Rose, Prairiedale, Preeceville, Prince Albert, Progress, Reciprocity, Redberry, Redburn, Reford, Reno, Riverside, Rocanville, Rodgers, Rosedale, Rosemount, Rosthern, Round Hill, Round Valley, Rudy, Saltcoats, Sarnia, Saskatchewan Landing, Sasman, Senlac, Shamrock, Shellbrook, Sherwood, Silverwood, Sliding Hills, Snipe Lake, Spalding, Spiritwood, Spy Hill, St. Andrews, St. Louis, St. Peter, St. Philips, Stanley, Star City, Storthoaks, Sutton, Swift Current, Three Lakes, Tisdale, Torch River, Touchwood, Tramping Lake, Tullymet, Turtle River, Usborne, Val Marie, Vanscoy, Victory, Viscount, Wallace, Walpole, Waverley, Wawken, Webb, Wheatlands, Whiska Creek, White Valley, Willner, Willow Creek, Willowdale, Wilton, Winslow, Wise Creek, Wolverine, Wood Creek, Wood River and Wreford, and Alberta; the 2003 calendar year are in Manitoba, the Rural Municipalities of Albert, Alonsa, Archie, Argyle, Armstrong, Arthur, Bifrost, Birtle, Blanshard, Brenda, Cameron, Clanwilliam, Coldwell, Cornwallis, Daly, Dauphin, Edward, Ellice, Elton, Eriksdale, Ethelbert, Fisher, Gilbert Plains, Gimli, Glenella, Glenwood, Grahamdale, Grandview, Hamiota, Harrison, Hillsburg, Kelsey, Lakeview, Langford, Lansdowne, Lawrence, Louise, McCreary, Miniota, Minitonas, Minto, Morton, Mossey River, Mountain, North Cypress, Oakland, Ochre River, Odanah, Park, Pipestone, Riverside, Roblin, Rockwood, Rosedale, Rossburn, Russell, Saskatchewan, Shell River, Shellmouth-Boulton, Shoal Lake, Sifton, Siglunes, Silver Creek, South Cypress, St. Laurent, Ste. Rose, Strathclair, Strathcona, Swan River, Turtle Mountain, Wallace, Westbourne, Whitehead, Whitewater, Winchester, Woodlands and Woodworth, the town of Grand Rapids and the Manitoba Census Consolidated Subdivision no. 19 (unorganized), as that subdivision was developed by Statistics Canada for the 2001 Census, in British Columbia, the Regional Districts of Bulkley-Nechako, Cariboo, Central Kootenay, Central Okanagan, Columbia-Shuswap, East Kootenay, Fort Nelson-Liard, Fraser-Fort George, Kootenay Boundary, North Okanagan, Okanagan-Similkameen, Peace River, Spallumcheen, Squamish-Lillooet and Thompson-Nicola, in Saskatchewan, the Rural Municipalities of Aberdeen, Abernethy, Antelope Park, Antler, Arborfield, Argyle, Barrier Valley, Battle River, Bayne, Beaver River, Benson, Big Quill, Big River, Biggar, Birch Hills, Bjorkdale, Blaine Lake, Blucher, Britannia, Brock, Brokenshell, Browning, Buchanan, Buckland, Buffalo, Calder, Cana, Canaan, Canwood, Chesterfield, Churchbridge, Clayton, Clinworth, Coalfields, Colonsay, Connaught, Corman Park, Cote, Coteau, Coulee, Cupar, Cut Knife, Cymri, Deer Forks, Douglas, Duck Lake, Dufferin, Dundurn, Eagle Creek, Edenwold, Elcapo, Eldon, Elfros, Emerald, Enniskillen, Excelsior, Fertile Belt, Fertile Valley, Fish Creek, Flett’s Springs, Foam Lake, Frenchman Butte, Garden River, Garry, Glenside, Good Lake, Grandview, Grant, Grayson, Great Bend, Griffin, Happyland, Harris, Hazel Dell, Hazelwood, Hillsdale, Hoodoo, Hudson Bay, Humboldt, Insinger, Invergordon, Invermay, Ituna Bon Accord, Kellross, Kelvington, Keys, Kindersley, King George, Kingsley, Kinistino, Kutawa, Lacadena, Laird, Lake Lenore, Lakeland, Lakeside, Lakeview, Langenburg, Last Mountain Valley, Leask, Leroy, Lipton, Livingston, Longlaketon, Loon Lake, Lumsden, Marriott, Martin, Maryfield, Mayfield, McKillop, McLeod, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montrose, Moose Creek, Moose Mountain, Moose Range, Moosomin, Morse, Mount Hope, Mount Pleasant, Mountain View, Newcombe, Nipawin, North Battleford, North Qu’appelle, Oakdale, Orkney, Paddockwood, Parkdale, Paynton, Pense, Perdue, Pittville, Pleasant Valley, Pleasantdale, Ponass Lake, Porcupine, Prairie Rose, Prairiedale, Preeceville, Prince Albert, Reciprocity, Redberry, Redburn, Reford, Riverside, Rocanville, Rosemount, Rosthern, Round Hill, Rudy, Saltcoats, Sarnia, Saskatchewan Landing, Sasman, Shellbrook, Sherwood, Silverwood, Sliding Hills, Snipe Lake, Spalding, Spiritwood, Spy Hill, St. Andrews, St. Louis, St. Peter, St. Philips, Stanley, Star City, Storthoaks, Swift Current, Tecumseh, Three Lakes, Tisdale, Torch River, Touchwood, Tullymet, Turtle River, Usborne, Vanscoy, Victory, Viscount, Wallace, Walpole, Wawken, Webb, Weyburn, Willow Creek, Willowdale, Winslow and Wolverine, and in Alberta, the Counties of Athabasca, Barrhead, Birch Hills, Brazeau, Cardston, Clearwater, Grande Prairie, Kneehill, Lac Ste. Anne, Lacombe, Lakeland, Leduc, Mountain View, Northern Sunrise, Parkland, Ponoka, Red Deer, Saddle Hills, Starland, Thorhild, Wetaskiwin, Woodlands and Yellowhead, the improvement districts of Banff, Jasper Park, Kananaskis, Waterton and Wilmore Wilderness, the municipal districts of Acadia, Big Lakes, Bighorn, Bonnyville, Clear Hills, Fairview, Greenview, MacKenzie, Northern Lights, Peace, Pincher Creek, Ranchland, Smoky River, Spirit River and Willow Creek, the municipalities of Crowsnest Pass and Jasper, and special areas 3 and 4; in the 2004 calendar year are in British Columbia, the Regional District of Fort Nelson-Liard, and in Alberta, the Counties of Beaver, Camrose, Flagstaff, Paintearth, Starland and Stettler, the Municipal Districts of Acadia, Clear Hills, Fairview, Mackenzie and Northern Lights, and Special Areas 2, 3 and 4; the 2006 calendar year are in Ontario, the Territorial Districts of Algoma, Kenora, Manitoulin, Rainy River and Thunder Bay, in British Columbia, the Regional Districts of Bulkley-Nechako, Cariboo, Fraser-Fort George, Kitimat-Stikine and Peace River, in Saskatchewan, the Rural Municipalities of Arlington, Auvergne, Bengough, Big Stick, Bone Creek, Carmichael, Clinworth, Frontier, Glen McPherson, Grassy Creek, Gull Lake, Happy Valley, Hart Butte, Lac Pelletier, Lake Alma, Laurier, Lone Tree, Mankota, Maple Creek, Miry Creek, Old Post, Piapot, Pittville, Poplar Valley, Reno, Surprise Valley, The Gap, Val Marie, Waverley, Webb, Whiska Creek, White Valley, Willow Bunch and Wise Creek, and in Alberta, the Counties of Clear Hills, Grande Prairie and Saddle Hills and the Municipal Districts of Greenview and Northern Lights; the 2007 calendar year are in Ontario, the Cities of Hamilton, Kawartha Lakes and Toronto, the Counties of Brant, Bruce, Dufferin, Elgin, Essex, Frontenac, Grey, Haldimand, Hastings, Huron, Lambton, Lennox and Addington, Middlesex, Northumberland, Norfolk, Oxford, Perth, Peterborough, Prince Edward, Simcoe and Wellington, the Municipality of Chatham-Kent, the Regional Municipalities of Durham, Halton, Niagara, Peel, Waterloo and York, the Territorial Districts of Algoma, Manitoulin and Thunder Bay and the United Counties of Leeds and Grenville, in Saskatchewan, the Rural Municipalities of Arlington, Auvergne, Bengough, Big Stick, Bone Creek, Carmichael, Coulee, Excel, Excelsior, Frontier, Glen Bain, Glen McPherson, Grassy Creek, Gull Lake, Happy Valley, Hart Butte, Lac Pelletier, Lake of the Rivers, Lawtonia, Lone Tree, Mankota, Maple Creek, Miry Creek, Morse, Old Post, Piapot, Pinto Creek, Pittville, Poplar Valley, Reno, Riverside, Saskatchewan Landing, Stonehenge, Swift Current, Val Marie, Waverley, Webb, Whiska Creek, White Valley, Willow Bunch, Wise Creek and Wood River, and in Alberta, the Counties of Cardston, Cypress, Forty Mile, Lethbridge and Warner, the Municipal Districts of Pincher Creek, Ranchland, Taber and Willow Creek and the Municipality of Crowsnest Pass; the 2008 calendar year are in Manitoba, the Municipality of Killarney-Turtle Mountain and the Rural Municipalities of Albert, Arthur, Brenda, Cameron, Edward, Glenwood, Morton, Pipestone, Riverside, Sifton, Whitewater and Winchester, in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and Peace River, in Saskatchewan, the Rural Municipalities of Argyle, Arlington, Auvergne, Baildon, Bengough, Benson, Bone Creek, Bratt’s Lake, Brokenshell, Browning, Caledonia, Cambria, Caron, Coalfields, Cymri, Elmsthorpe, Enniskillen, Estevan, Excel, Francis, Frontier, Glen Bain, Glen McPherson, Grassy Creek, Gravelbourg, Griffin, Hillsborough, Happy Valley, Hart Butte, Key West, Lac Pelletier, Lajord, Lake Alma, Lake Johnston, Lake of the Rivers, Laurier, Lomond, Lone Tree, Mankota, Marquis, Moose Creek, Moose Jaw, Mount Pleasant, Norton, Old Post, Pense, Pinto Creek, Poplar Valley, Redburn, Reciprocity, Rodgers, Scott, Shamrock, Sherwood, Souris Valley, Surprise Valley, Stonehenge, Storthoaks, Sutton, Tecumseh, Terrell, The Gap, Val Marie, Waverley, Wellington, Weyburn, Whiska Creek, White Valley, Willow Bunch, Wise Creek and Wood River, and in Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie and Saddle Hills and the Municipal Districts of Fairview and Spirit River; the 2009 calendar year are in Manitoba, the Rural Municipalities of Albert, Archie. Arthur, Birtle, Brenda, Cameron, Clanwilliam, Edward, Ellice, Harrison, Hillsburg, Miniota, Minitonas, Park, Pipestone, Rossburn, Russell, Shellmouth-Boulton, Shell River, Shoal Lake, Sifton, Silver Creek, Strathclair, Swan River, Wallace, Winchester and Woodworth and Census Division No. 20, Unorganized, South Part, as developed by Statistics Canada for the 2006 Census, in British Columbia, the Census Subdivisions Bulkley-Nechako B and E, Cariboo D, E, G, H and J to L, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Columbia-Shuswap C to F, Kootenay Boundary B to E, North Okanagan B and D to F, Okanagan-Similkameen A to H, Peace River C to E, Spallumcheen, Squamish-Lillooet A to C and Thompson-Nicola A (Wells Gray Country), B (Thompson Headwaters), E (Bonaparte Plateau), I (Blue Sky Country), J (Copper Desert Country), L, M, N, O (Lower North Thompson) and P (Rivers and the Peaks), as these subdivisions were developed by Statistics Canada for the 2006 Census, in Saskatchewan, the Rural Municipalities of Aberdeen, Antelope Park, Antler, Argyle, Arlington, Auvergne, Battle River, Beaver River, Benson, Biggar, Blucher, Bone Creek, Britannia, Brock, Browning, Buchanan, Buffalo, Calder, Cana, Canaan, Chaplin, Chesterfield, Churchbridge, Clayton, Clinworth, Coalfields, Corman Park, Cote, Coteau, Coulee, Cut Knife, Deer Forks, Dundurn, Eagle Creek, Elcapo, Eldon, Emerald, Enfield, Enniskillen, Estevan, Excelsior, Eye Hill, Fertile Belt, Fertile Valley, Foam Lake, Fox Valley, Frenchman Butte, Frontier, Garry, Glen Bain, Glen McPherson, Glenside, Good Lake, Grandview, Grant, Grass Lake, Grassy Creek, Gravelbourg, Grayson, Happyland, Harris, Hazel Dell, Hazelwood, Heart’s Hill, Hillsdale, Insinger, Invermay, Keys, Kindersley, King George, Kingsley, Lacadena, Lac Pelletier, Lawtonia, Langenburg, Livingston, Lone Tree, Loon Lake, Loreburn, Manitou Lake, Mankota, Maple Bush, Mariposa, Marriott, Martin, Maryfield, Mayfield, McLeod, Meadow Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montrose, Moose Creek, Moose Mountain, Moosomin, Morse, Mountain View, Mount Pleasant, Newcombe, North Battleford, Oakdale, Orkney, Parkdale, Paynton, Perdue, Pinto Creek, Pittville, Pleasant Valley, Prairiedale, Preeceville, Progress, Reciprocity, Reford, Reno, Riverside, Rocanville, Rosedale, Rosemount, Round Valley, Rudy, Saltcoats, Saskatchewan Landing, Senlac, Shamrock, Silverwood, Sliding Hills, Snipe Lake, Spy Hill, St. Andrews, St. Philips, Stanley, Storthoaks, Swift Current, Tecumseh, Tramping Lake, Turtle River, Val Marie, Vanscoy, Victory, Wallace, Walpole, Waverley, Wawken, Webb, Whiska Creek, White Valley, Willowdale, Wilton, Winslow, Wise Creek and Wood River, and in Alberta, the Cities of Calgary and Edmonton, the Counties of Athabasca, Barrhead, Beaver, Birch Hills, Brazeau, Camrose, Clear Hills, Clearwater, Flagstaff, Grande Prairie, Kneehill, Lac La Biche, Lacombe, Lac Ste. Anne, Lamont, Leduc, Minburn, Mountain View, Northern Sunrise, Paintearth, Parkland, Ponoka, Red Deer, Rocky View, Saddle Hills, Smoky Lake, St. Paul, Starland, Stettler, Strathcona, Sturgeon, Thorhild, Two Hills, Vermilion River, Westlock, Wetaskiwin, Wheatland, Woodlands and Yellowhead, Improvement District No. 13, the Municipal Districts of Acadia, Big Lakes, Bonnyville, Fairview, Greenview, Lesser Slave River, Northern Lights, Opportunity, Peace, Provost, Smoky River, Spirit River and Wainwright, Special Areas No. 2, 3 and 4 and the Town of Drumheller; the 2010 calendar year are in British Columbia, the Census Subdivisions Bulkley-Nechako B to F, Cariboo A to F and I to K, Fraser-Fort George A and C to H and Peace River B to E, as these subdivisions were developed by Statistics Canada for the 2006 Census, and in Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie, Northern Lights, Northern Sunrise, Saddle Hills, Woodlands and Yellowhead, the Improvement District No. 12 and the Municipal Districts of Big Lakes, Fairview, Greenview, Peace, Smoky River and Spirit River; and the 2012 calendar year are in Ontario, the Census Divisions Brant, Haldimand-Norfolk, Hamilton and Ottawa, as these divisions were developed by Statistics Canada for the 2011 Census, the Counties of Bruce, Dufferin, Frontenac, Grey, Hastings, Huron, Lanark, Lennox and Addington, Northumberland, Oxford, Perth, Prince Edward, Renfrew and Wellington, the Districts of Parry Sound and Rainy River, as these districts were developed by Statistics Canada for the 2011 Census, the District Municipality of Muskoka, the Regional Municipalities of Halton, Niagara and Waterloo, the Territorial Districts of Algoma and Manitoulin and the United Counties of Prescott and Russell, in Quebec, the Regional County Municipalities of Les Collines-de-l’Outaouais, Papineau, Pontiac and Temiscamingue and the Town of Gatineau, in Manitoba, Census Division No. 1, Unorganized, as developed by Statistics Canada for the 2011 Census, and the Rural Municipalities of De Salaberry, Franklin, Hanover, La Broquerie, Montcalm, Morris, Piney, Reynolds, Rhineland, Ritchot, Ste. Anne, Stuartburn, Tache and Whitemouth, in British Columbia, the Peace River Regional District, and in Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie, Mackenzie, Northern Lights and Saddle Hills and the Municipal Districts of Fairview, Peace and Spirit River. For the purposes of this section, a city, county, district or other municipality is deemed to include any area that is surrounded by the territory of the city, county, district or other municipality. For the purposes of subsections 80.3(4) and (4.1) of the Act, the following regions are prescribed drought regions or prescribed regions of flood or excessive moisture: in respect of the 2014 calendar year in Manitoba, Census Divisions No. 17, Unorganized, and No. 20, Unorganized, South Part, as these divisions were developed by Statistics Canada for the 2011 Census, the Municipality of Shoal Lake, the Reserve of Valley River 63A and the Rural Municipalities of Albert, Alonsa, Archie, Arthur, Birtle, Blanshard, Brenda, Cameron, Clanwilliam, Coldwell, Daly, Dauphin, Edward, Ellice, Elton, Eriksdale, Ethelbert, Gilbert Plains, Glenella, Glenwood, Grahamdale, Grandview, Hamiota, Harrison, Hillsburg, Killarney-Turtle Mountain, Lakeview, Langford, Lansdowne, Lawrence, McCreary, Miniota, Minitonas, Minto, Morton, Mossey River, Mountain, North Cypress, North Norfolk, Oakland, Ochre River, Odanah, Park, Pipestone, Portage la Prairie, Riverside, Rosedale, Rossburn, Russell, Saskatchewan, Shell River, Shellmouth-Boulton, Sifton, Siglunes, Silver Creek, South Cypress, St. Laurent, Ste. Rose, Strathclair, Swan River, Wallace, Westbourne, Whitehead, Whitewater, Winchester, Woodlands and Woodworth, in British Columbia, the Census Subdvisions of Alberni-Clayoquot A, C and D, Bulkley-Nechako A to G, Capital F, Cariboo A to C and I, Comox Valley A, Cowichan Valley F, Fraser-Fort George A and C to H, Nanaimo C and H, Peace River B to E and Powell River D and Part 2 of Census Subdivision Capital H, as these subdivisions were developed by Statistics Canada for the 2011 Census, in Saskatchewan, the Rural Municipalities of Antler, Argyle, Buchanan, Calder, Cana, Churchbridge, Clayton, Cote, Elfros, Emerald, Enniskillen, Fertile Belt, Foam Lake, Garry, Good Lake, Grayson, Hazel Dell, Insinger, Invermay, Ituna Bon Accord, Kelvington, Keys, Lakeview, Langenburg, Livingston, Martin, Maryfield, McLeod, Moose Creek, Moose Mountain, Moosomin, Mount Pleasant, Orkney, Ponass Lake, Preeceville, Reciprocity, Rocanville, Saltcoats, Sasman, Silverwood, Sliding Hills, Spy Hill, St. Philips, Stanley, Storthoaks, Wallace, Walpole, Wawken and Willowdale, and in Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie, Mackenzie, Northern Lights, Northern Sunrise and Saddle Hills and the Municipal Districts of Big Lakes, Fairview, Greenview, Peace, Smoky River and Spirit River; in respect of the 2015 calendar year in Manitoba, Census Divisions No. 18, Unorganized, East Part, No. 19, Unorganized, No. 20, Unorganized, North and South Parts, and No. 21, Unorganized, as these divisions were developed by Statistics Canada for the 2011 Census, the Municipalities of Ethelbert, Gilbert Plains, Grandview, Minitonas-Bowsman, Mossey River, Roblin, Ste. Rose and Swan Valley West, the Reserve Valley River 63A, the Rural Municipalities of Alonsa, Dauphin, Grahamdale, Lakeshore, Mountain and Riding Mountain West and the portion of the Rural Municipality of West Interlake that corresponds to the territory of the Rural Municipality of Siglunes, as it existed on December 31, 2014, in British Columbia, the Census Subdvisions of Abbotsford, Alberni-Clayoquot A to D and F, Bulkley-Nechako A to G, Burnaby, Capital F and G, Cariboo A to L, Central Coast A and C, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Central Saanich, Columbia-Shuswap A to F, Comox Valley A, B (Lazo North) and C (Puntledge-Black Creek), Cowichan Valley B, F, G and I, East Kootenay A to C and E to G, Fraser Valley A to G, Greater Vancouver A, Kitimat-Stikine B, Kootenay Boundary B to E, Mount Waddington A to D, Nanaimo (City), Nanaimo C and E to H, North Cowichan, North Okanagan B and D to F, North Saanich, Okanagan-Similkameen A to H, Pitt Meadows, Powell River A to D, Saanich, Squamish-Lillooet A to D, Strathcona A, C and D (Oyster Bay-Buttle Lake), Sunshine Coast A, Thompson-Nicola A (Wells Gray Country), B (Thompson Headwaters), E (Bonaparte Plateau), I (Blue Sky Country), J (Copper Desert Country), L (Grasslands), M (Beautiful Nicola Valley-North), N (Beautiful Nicola Valley-South), O (Lower North Thompson) and P (Rivers and the Peaks), Part 2 of Census Subdivision Capital H, as these subdivisions were developed by Statistics Canada for the 2011 Census, in Saskatchewan, the Rural Municipalities of Antelope Park, Arlington, Auvergne, Baildon, Battle River, Beaver River, Bengough, Big River, Big Stick, Biggar, Blaine Lake, Bone Creek, Bratt’s Lake, Britannia, Brokenshell, Buffalo, Calder, Caledonia, Canaan, Canwood, Carmichael, Caron, Chaplin, Chester, Chesterfield, Clayton, Clinworth, Corman Park, Cote, Coteau, Coulee, Craik, Cupar, Cut Knife, Deer Forks, Douglas, Dufferin, Dundurn, Eagle Creek, Edenwold, Eldon, Elmsthorpe, Enfield, Enterprise, Excel, Excelsior, Eye Hill, Eyebrow, Fertile Valley, Fillmore, Fox Valley, Francis, Frenchman Butte, Frontier, Glen Bain, Glen McPherson, Glenside, Grandview, Grass Lake, Grassy Creek, Gravelbourg, Great Bend, Gull Lake, Happy Valley, Happyland, Harris, Hart Butte, Hazel Dell, Heart’s Hill, Hillsborough, Hillsdale, Hudson Bay, Huron, Indian Head, Kelvington, Key West, Keys, Kindersley, King George, Lac Pelletier, Lacadena, Laird, Lajord, Lake Alma, Lake Johnston, Lake of the Rivers, Laurier, Lawtonia, Leask, Livingston, Lone Tree, Longlaketon, Loon Lake, Loreburn, Lost River, Lumsden, Manitou Lake, Mankota, Maple Bush, Maple Creek, Mariposa, Marquis, Marriott, Mayfield, McKillop, Meadow Lake, Medstead, Meeting Lake, Meota, Mervin, Milden, Milton, Miry Creek, Monet, Montmartre, Montrose, Moose Jaw, Morse, Mountain View, Newcombe, North Battleford, North Qu’Appelle, Norton, Oakdale, Old Post, Parkdale, Paynton, Pense, Perdue, Piapot, Pinto Creek, Pittville, Pleasant Valley, Poplar Valley, Porcupine, Prairiedale, Preeceville, Progress, Redberry, Redburn, Reford, Reno, Riverside, Rodgers, Rosedale, Rosemount, Round Hill, Round Valley, Rudy, Sarnia, Saskatchewan Landing, Scott, Senlac, Shamrock, Sherwood, Snipe Lake, South Qu’Appelle, Spiritwood, St. Andrews, St. Philips, Stonehenge, Surprise Valley, Sutton, Swift Current, Terrell, The Gap, Tramping Lake, Turtle River, Val Marie, Vanscoy, Victory, Waverley, Webb, Wellington, Weyburn, Wheatlands, Whiska Creek, White Valley, Willow Bunch, Wilton, Winslow, Wise Creek and Wood River, and in Alberta, the portion of the territory of Alberta that is not included in, nor surrounded by, the Improvement Districts No. 12 and 24 and the Regional Municipality of Wood Buffalo; in respect of the 2016 calendar year in Ontario, the Cities of Barrie, Belleville, Brampton, Burlington, Clarence-Rockland, Cornwall, Hamilton, Kawartha Lakes, Kingston, Markham, Mississauga, Niagara Falls, Oshawa, Ottawa, Peterborough, Pickering, Port Colborne, Quinte West, St. Catharines, Thorold, Toronto, Vaughan and Welland, the Counties of Haldimand, Norfolk and Prince Edward, the Municipalities of Brighton, Centre Hastings, Clarington, Highlands East, Marmora and Lake, North Grenville, Port Hope, South Dundas, The Nation, Trent Hills, Trent Lakes and Tweed, the Towns of Ajax, Aurora, Bracebridge, Bradford West Gwillimbury, Caledon, East Gwillimbury, Fort Erie, Georgina, Gravenhurst, Greater Napanee, Grimsby, Halton Hills, Innisfil, Lincoln, Milton, Mono, New Tecumseth, Newmarket, Niagara-on-the-Lake, Oakville, Pelham, Richmond Hill, Wasaga Beach, Whitby and Whitchurch-Stouffville, the Townships of Addington Highlands, Adjala-Tosorontio, Alfred and Plantagenet, Algonquin Highlands, Alnwick/Haldimand, Amaranth, Asphodel-Norwood, Athens, Augusta, Beckwith, Brock, Cavan Monaghan, Central Frontenac, Champlain, Clearview, Cramahe, Douro-Dummer, Drummond/North Elmsley, East Hawkesbury, Edwardsburgh/Cardinal, Elizabethtown-Kitley, Essa, Front of Yonge, Frontenac Islands, Havelock-Belmont-Methuen, King, Lake of Bays, Leeds and the Thousand Islands, Limerick, Loyalist, Madoc, Melancthon, Minden Hills, Montague, Mulmur, North Dundas, North Glengarry, North Kawartha, North Stormont, Oro-Medonte, Otonabee-South Monaghan, Puslinch, Ramara, Rideau Lakes, Russell, Scugog, Selwyn, Severn, South Frontenac, South Glengarry, South Stormont, Springwater, Stirling-Rawdon, Stone Mills, Tay, Tay Valley, Tiny, Tudor and Cashel, Tyendinaga, Uxbridge, Wainfleet, West Lincoln and Wollaston, the United Townships of Dysart, Dudley, Harcourt, Guilford, Harburn, Bruton, Havelock, Eyre and Clyde and the Village of Merrickville-Wolford, in Quebec, the Cities of Gatineau, Lachute, Mirabel, Saint-Jérôme and Salaberry-de-Valleyfield, the Municipalities of Boileau, Bowman, Denholm, Duhamel, Elgin, Franklin, Grenville-sur-la-Rouge, Hinchinbrooke, Huberdeau, Kazabazua, La Conception, La Minerve, Labelle, Lac-des-Plages, Lac-Sainte-Marie, Lac-Simon, Les Cèdres, Mayo, Mille-Isles, Montcalm, Montpellier, Morin-Heights, Mulgrave-et-Derry, Namur, Notre-Dame-de-Bonsecours, Notre-Dame-de-la-Paix, Notre-Dame-du-Laus, Oka, Ormstown, Papineauville, Plaisance, Ripon, Saint-Adolphe-d’Howard, Saint-André-Avellin, Saint-André-d’Argenteuil, Saint-Anicet, Saint-Clet, Saint-Faustin-Lac-Carré, Saint-Joseph-du-Lac, Saint-Placide, Saint-Polycarpe, Saint-Sixte, Saint-Stanislas-de-Kostka, Saint-Télesphore, Sainte-Barbe, Sainte-Justine-de-Newton, Sainte-Marthe, Très-Saint-Rédempteur, Val-des-Bois and Wentworth-Nord, the Parishes of Brébeuf and Saint-Louis-de-Gonzague, the Regional County Municipality of Les Collines-de-l’Outaouais, the Towns of Boisbriand, Brownsburg-Chatham, Coteau-du-Lac, Mont-Tremblant, Rigaud, Saint-Colomban, Saint-Eustache, Saint-Sauveur, Sainte-Agathe-des-Monts and Vaudreuil-Dorion, the Townships of Amherst, Arundel, Dundee, Godmanchester, Gore, Harrington, Lochaber, Lochaber-Partie-Ouest, Low and Wentworth and the Census Subdivision of Lac-Ernest (Unorganized), as this subdivision was developed by Statistics Canada for the 2016 Census, in Nova Scotia, the Counties of Annapolis and Kings, the Districts of Argyle, Barrington, Chester, Clare, Digby, Lunenburg, Shelburne, West Hants and Yarmouth and the Region of Queens, in British Columbia, the Census Subdivisions of East Kootenay A, Kitimat-Stikine A, B and D and of Skeena-Queen Charlotte D and E, as these subdivisions were developed by Statistics Canada for the 2016 Census, and in Alberta, the City of Calgary, the Counties of Clearwater, Kneehill, Lacombe, Lethbridge, Mackenzie, Mountain View, Newell, Red Deer, Rocky View, Vulcan and Wheatland, the Improvement District No. 9, Kananaskis Improvement District, the Municipality of Crowsnest Pass and the Municipal Districts of Bighorn, Foothills, Pincher Creek, Ranchland, Taber and Willow Creek; in respect of the 2017 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, of in Quebec, Albertville, Amqui, Auclair, Baie-des-Sables, Biencourt, Cacouna, Causapscal, Dégelis, Esprit-Saint, Kamouraska, La Malbaie, Lac-à-la-Croix, Lac-Alfred, Lac-des-Aigles, Lac-des-Eaux-Mortes, Lac-Huron, Lac-Matapédia, Lejeune, Les Bergeronnes, L’Isle-Verte, Notre-Dame-des-Neiges, Pohénégamook, Rimouski, Rivière-du-Loup, Routhierville, Ruisseau-Ferguson, Sacré-Coeur, Saint-Alexandre-de-Kamouraska, Saint-André, Saint-Antonin, Saint-Arsène, Saint-Bruno-de-Kamouraska, Saint-Clément, Saint-Cléophas, Saint-Cyprien, Sainte-Angèle-de-Mérici, Sainte-Flavie, Sainte-Jeanne-d’Arc, Saint-Éloi, Sainte-Luce, Saint-Elzéar-de-Témiscouata, Saint-Épiphane, Saint-Eusèbe, Saint-Fabien, Saint-Gabriel-de-Rimouski, Saint-Germain, Saint-Guy, Saint-Hubert-de-Rivière-du-Loup, Saint-Jean-de-Dieu, Saint-Léon-le-Grand, Saint-Mathieu-de-Rioux, Saint-Octave-de-Métis, Saint-Pascal, Saint-Simon, Saint-Ulric, Sayabec, Témiscouata-sur-le-Lac and Val-Brillant, in British Columbia, Alberni-Calyoquot A, B, D and F, Cariboo A to L, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Columbia-Shuswap A and C to F, Comox Valley A, Comox Valley C (Puntledge-Black Creek), East Kootenay A to C and E to G, Fraser Valley B and D to G, Fraser-Fort George C to E, Kootenay Boundary B/Lower Columbia-Old-Glory, Kootenay Boundary D/Rural Grand Forks, Kootenay Boundary E/West Boundary, North Okanagan B and D to F, Okanagan-Similkameen A to H, Spallumcheen, Squamish-Lillooet B and C, Strathcona D (Oyster Bay-Buttle Lake), Thompson-Nicola A (Wells Gray Country), Thompson-Nicola B (Thompson Headwaters), Thompson-Nicola E (Bonaparte Plateau), Thompson-Nicola I (Blue Sky Country), Thompson-Nicola J (Copper Desert Country), Thompson-Nicola L (Grasslands), Thompson-Nicola M (Beautiful Nicola Valley-North), Thompson-Nicola N (Beautiful Nicola Valley-South), Thompson-Nicola O (Lower North Thompson) and Thompson-Nicola P (Rivers and the Peaks), in Saskatchewan, Aberdeen No. 373, Abernethy No. 186, Antelope Park No. 322, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Bayne No. 371, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Quill No. 308, Big Stick No. 141, Birch Hills No. 460, Blucher No. 343, Bone Creek No. 108, Bratt’s Lake No. 129, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buckland No. 491, Caledonia No. 99, Cambria No. 6, Canaan No. 225, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342, Connaught No. 457, Corman Park No. 344, Coteau No. 255, Coulee No. 136, Craik No. 222, Cupar No. 218, Cymri No. 36, Deer Forks No. 232, Dufferin No. 190, Dundurn No. 314, Edenwold No. 158, Elcapo No. 154, Elfros No. 307, Elmsthorpe No. 100, Emerald No. 277, Enfield No. 194, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eyebrow No. 193, Fertile Valley No. 285, Fillmore No. 96, Fish Creek No. 402, Flett’s Springs No. 429, Foam Lake No. 276, Fox Valley No. 171, Francis No. 127, Frontier No. 19, Garden River No. 490, Garry No. 245, Glen Bain No. 105, Glen McPherson No. 46, Golden West No. 95, Grant No. 372, Grassy Creek No. 78, Gravelbourg No. 104, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazelwood No. 94, Hillsborough No. 132, Hoodoo No. 401, Humboldt No. 370, Huron No. 223, Indian Head No. 156, Insinger No. 275, Invergordon No. 430, Ituna Bon Accord No. 246, Kellross No. 247, Key West No. 70, Kindersley No. 290, King George No. 256, Kingsley No. 124, Kinistino No. 459, Lac Pelletier No. 107, Lacadena No. 228, Lajord No. 128, Lake Alma No. 8, Lake Johnston No. 102, Lake Lenore No. 399, Lake of the Rivers No. 72, Lakeside No. 338, Lakeview No. 337, Last Mountain Valley No. 250, Laurier No. 38, Lawtonia No. 135, Leroy No. 339, Lipton No. 217, Lomond No. 37, Lone Tree No. 18, Longlaketon No. 219, Loreburn No. 254, Lost River No. 313, Lumsden No. 189, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Marquis No. 191, Marriott No. 317, McCraney No. 282, McKillop No. 220, McLeod No. 185, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montmartre No. 126, Montrose No. 315, Moose Jaw No. 161, Morris No. 312, Morse No. 165, Mount Hope No. 279, Mountain View No. 318, Newcombe No. 260, Nipawin No. 487, North Qu’Appelle No. 187, Norton No. 69, Oakdale No. 320, Old Post No. 43, Paddockwood No. 520, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Pleasantdale No. 398, Poplar Valley No. 12, Prairie Rose No. 309, Prairiedale No. 321, Prince Albert No. 461, Redburn No. 130, Reno No. 51, Riverside No. 168, Rodgers No. 133, Rosedale No. 283, Rudy No. 284, Sarnia No. 221, Saskatchewan Landing No. 167, Saskatoon, Scott No. 98, Shamrock No. 134, Sherwood No. 159, Snipe Lake No. 259, Souris Valley No. 7, South Qu’Appelle No. 157, Spalding No. 368, St. Andrews No. 287, St. Louis No. 431, St. Peter No. 369, Stanley No. 215, Star City No. 428, Stonehenge No. 73, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Three Lakes No. 400, Torch River No. 488, Touchwood No. 248, Tullymet No. 216, Usborne No. 310, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Viscount No. 341, Waverley No. 44, Webb No. 138, Wellington No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willow Creek No. 458, Winslow No. 319, Wise Creek No. 77, Wolseley No. 155, Wolverine No. 340, Wood Creek No. 281, Wood River No. 74 and Wreford No. 280, and in Alberta, the City of Calgary, the Counties of Cardston, Clearwater, Cypress, Kneehill, Lacombe, Lethbridge, Mountain View, Newell, Red Deer, Rocky View, Starland, Vulcan and Wheatlands, Forty Mile County No. 8, Paintearth County No. 18, Stettler County No. 6, Warner County No. 5, the Municipal Districts of Bighorn No. 8, Foothills No. 31, Pincher Creek No. 9, Ranchland No. 66, Taber and Willow Creek No. 26 and Special Areas No. 2, 3 and 4; in respect of the 2018 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, of in Ontario, Arran-Elderslie, Brockton, Chatsworth, Georgian Bluffs, Gordon/Barrie Island, Grey Highlands, Kincardine, Meaford, Northeastern Manitoulin and the Islands, Northern Bruce Peninsula, Saugeen Shores, South Bruce Peninsula, The Blue Mountains and West Grey, in Quebec, Albertville, Amqui, Baie-des-Sables, Bonaventure, Cap-Chat, Caplan, Carleton-sur-Mer, Causapscal, Collines-du-Basque, Gaspé, Grosses-Roches, Lac-à-la-Croix, Lac-Alfred, Lac-des-Eaux-Mortes, Lac-Matapédia, Matane, Mont-Alexandre, New Richmond, Percé, Rivière-Bonaventure, Rivière-Bonjour, Rivière-Nouvelle, Routhierville, Ruisseau-des-Mineurs, Ruisseau-Ferguson, Saint-Cléophas, Saint-François-d’Assise, Saint-Gabriel-de-Rimouski, Saint-Léon-le-Grand (Census Division – La Matapédia), Saint-Octave-de-Métis, Saint-Ulric, Sainte-Angèle-de-Mérici, Sainte-Félicité (Census Division – Matane), Sainte-Flavie, Sainte-Jeanne-d’Arc, Sainte-Luce, Sayabec and Val-Brillant, in New Brunswick, Beresford, Caraquet, Dalhousie, Durham, New Bandon, Paquetville, Shippagan and Tracadie, in Manitoba, Alexander, Alonsa, Argyle, Armstrong, Bifrost-Riverton, Boissevain-Morton, Brenda-Waskada, Brokenhead, Cartier, Cartwright-Roblin, Clanwilliam-Erickson, Coldwell, De Salaberry, Deloraine-Winchester, Division No. 18 (Unorganized, East Part), Dufferin, Ellice-Archie, Elton, Emerson-Franklin, Fisher, Gimli, Glenboro-South Cypress, Glenella-Lansdowne, Grahamdale, Grassland, Grey, Hamiota, Hanover, Harrison Park, Headingley, Killarney – Turtle Mountain, La Broquerie, Lakeshore, Lorne, Louise, Macdonald, McCreary, Minto-Odanah, Montcalm, Morris, Norfolk-Treherne, North Cypress-Langford, North Norfolk, Oakland-Wawanesa, Oakview, Pembina, Piney, Pipestone, Portage la Prairie, Prairie Lakes, Prairie View, Rhineland, Ritchot, Riverdale, Rockwood, Roland, Rosedale, Rosser, Sifton, Souris-Glenwood, Springfield, St. Andrews, St. Clements, St. François Xavier, St. Laurent, Stanley, Ste. Anne, Ste. Rose, Stuartburn, Taché, Thompson, Two Borders, Victoria, Wallace-Woodworth, West Interlake, West St. Paul, WestLake-Gladstone, Whitehead, Winnipeg, Woodlands and Yellowhead, in British Columbia, Abbotsford, Alberni-Clayoquot A, B, D and F, Bulkley-Nechako A to G, Burnaby, Cariboo A to C and I, Central Coast A, Central Kootenay A to E, G, H, J and K, Comox Valley A, Comox Valley B (Lazo North), Comox Valley C (Puntledge – Black Creek), Cowichan Valley B, F and G, Delta, East Kootenay A to C and E, Fraser-Fort George A and C to F, Fraser Valley D to G, Greater Vancouver A, Juan de Fuca (Part 2), Kitimat-Stikine B, Kitimat-Stikine C (Part 1), Kootenay Boundary B/Lower Columbia-Old-Glory, Kootenay Boundary D/Rural Grand Forks, Langley, Maple Ridge, Mount Waddington C, Nanaimo, Nanaimo C and E to H, North Cowichan, Pitt Meadows, Powell River A, C and E, Richmond, Saltspring Island, Skeena-Queen Charlotte C to E, Southern Gulf Islands, Squamish-Lillooet C, Strathcona C, Strathcona D (Oyster Bay – Buttle Lake), Sunshine Coast A, Surrey and Vancouver, in Saskatchewan, Aberdeen No. 373, Abernethy No. 186, Antler No. 61, Argyle No. 1, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Bayne No. 371, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Quill No. 308, Big Stick No. 141, Biggar No. 347, Birch Hills No. 460, Blaine Lake No. 434, Blucher No. 343, Bone Creek No. 108, Bratt’s Lake No. 129, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buckland No. 491, Caledonia No. 99, Cambria No. 6, Canaan No. 225, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342. Corman Park No. 344, Coteau No. 255, Coulee No. 136, Craik No. 222, Cupar No. 218, Cymri No. 36, Deer Forks No. 232, Duck Lake No. 463, Dufferin No. 190, Dundurn No. 314, Eagle Creek No. 376, Edenwold No. 158, Elcapo No. 154, Elfros No. 307, Elmsthorpe No. 100, Emerald No. 277, Enfield No. 194, Enniskillen No. 3, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eyebrow No. 193, Fertile Belt No. 183, Fertile Valley No. 285, Fillmore No. 96, Fish Creek No. 402, Flett’s Springs No. 429, Foam Lake No. 276, Fox Valley No. 171, Francis No. 127, Frontier No. 19, Garden River No. 490, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Golden West No. 95, Grandview No. 349, Grant No. 372, Grassy Creek No. 78, Gravelbourg No. 104, Grayson No. 184, Great Bend No. 405, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazelwood No. 94, Hillsborough No. 132, Hoodoo No. 401, Humboldt No. 370, Huron No. 223, Indian Head No. 156, Invergordon No. 430, Ituna Bon Accord No. 246, Kellross No. 247, Key West No. 70, Kindersley No. 290, King George No. 256, Kingsley No. 124, Kinistino No. 459, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lajord No. 128, Lake Alma No. 8, Lake Johnston No. 102, Lake Lenore No. 399, Lake of the Rivers No. 72, Lakeside No. 338, Last Mountain Valley No. 250, Laurier No. 38, Lawtonia No. 135, Leask No. 464, Leroy No. 339, Lipton No. 217, Lomond No. 37, Lone Tree No. 18, Longlaketon No. 219, Loreburn No. 254, Lost River No. 313, Lumsden No. 189, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Marquis No. 191, Marriott No. 317, Martin No. 122, Maryfield No. 91, Mayfield No. 406, McCraney No. 282, McKillop No. 220, McLeod No. 185, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montmartre No. 126, Montrose No. 315, Moose Creek No. 33, Moose Jaw No. 161, Moose Mountain No. 63, Moosomin No. 121, Morris No. 312, Morse No. 165, Mount Hope No. 279, Mount Pleasant No. 2, Mountain View No. 318, Newcombe No. 260, Nipawin No. 487, North Qu’Appelle No. 187, Norton No. 69, Old Post No. 43, Paddockwood No. 520, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Poplar Valley No. 12, Prairie Rose No. 309, Prince Albert No. 461, Reciprocity No. 32, Redberry No. 435, Redburn No. 130, Reno No. 51, Riverside No. 168, Rocanville No. 151, Rodgers No. 133, Rosedale No. 283, Rosthern No. 403, Rudy No. 284, Sarnia No. 221, Saskatchewan Landing No. 167, Scott No. 98, Shamrock No. 134, Shellbrook No. 493, Sherwood No. 159, Silverwood No. 123, Snipe Lake No. 259, Souris Valley No. 7, South Qu’Appelle No. 157, St. Andrews No. 287, St. Louis No. 431, St. Peter No. 369, Stanley No. 215, Star City No. 428, Stonehenge No. 73, Storthoaks No. 31, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Three Lakes No. 400, Torch River No. 488, Touchwood No. 248, Tullymet No. 216, Usborne No. 310, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Viscount No. 341, Walpole No. 92, Waverley No. 44, Wawken No. 93, Webb No. 138, Wellington, No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willow Creek No. 458, Willowdale No. 153, Winslow No. 319, Wise Creek No. 77, Wolseley No. 155, Wolverine No. 340, Wood Creek No. 281, Wood River No. 74 and Wreford No. 280, and in Alberta, Beaver County, Bighorn No. 8, Brazeau County, Calgary, Camrose County, Cardston County, Clearwater County, Cypress County, Flagstaff County, Foothills No. 31, Forty Mile County No. 8, Kneehill County, Lacombe County, Lac Ste. Anne County, Lamont County, Leduc County, Lethbridge County, Mackenzie County, Minburn County No. 27, Mountain View County, Newell County, Paintearth County No. 18, Parkland County, Pincher Creek No. 9, Ponoka County, Ranchland No.

66, Red Deer County, Rocky View County, Special Areas No. 2 and No. 3, Starland County, Stettler County No. 6, Taber, Vulcan County, Warner County No. 5, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26 and Yellowhead County; in respect of the 2019 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, of in Ontario, Alberton, Chapple, Dawson, Emo, La Vallee, Lake of the Woods, Morley and Rainy River (Unorganized), in Quebec, Albertville, Amqui, Cap-Chat, Causapscal, Collines-du-Basque, Grosses-Roches, Lac-Matapédia, Matane, Rivière-Bonjour, Ruisseau-des-Mineurs, Saint-Cléophas, Sainte-Félicité (Census Division – Matane), Saint-Léon-le-Grand (Census Division – La Matapédia), Saint-Ulric, Sayabec and Val-Brillant, in Manitoba, Alexander, Alonsa, Argyle, Armstrong, Bifrost-Riverton, Boissevain-Morton, Brenda-Waskada, Brokenhead, Cartier, Cartwright-Roblin, Clanwilliam-Erickson, Coldwell, Dauphin, De Salaberry, Deloraine-Winchester, Division No. 1 (Unorganized), Division No. 17 (Unorganized), Division No. 18 (Unorganized, East Part), Division No. 18, (Unorganized, West Part), Division No. 19 (Unorganized), Division No. 20 (Unorganized, South Part), Dufferin, Ellice-Archie, Elton, Emerson-Franklin, Ethelbert, Fisher, Gilbert Plains, Gimli, Glenboro-South Cypress, Glenella-Lansdowne, Grahamdale, Grandview, Grassland, Grey, Hamiota, Hanover, Harrison Park, Headingley, Hillsburg-Roblin-Shell River, Killarney – Turtle Mountain, La Broquerie, Lac du Bonnet, Lakeshore, Lorne, Louise, Macdonald, McCreary, Minitonas-Bowsman, Minto-Odanah, Montcalm, Morris, Mossey River, Mountain (North), Mountain (South), Norfolk-Treherne, North Cypress-Langford, North Norfolk, Oakland-Wawanesa, Oakview, Pembina, Piney, Pipestone, Portage la Prairie, Prairie Lakes, Prairie View, Reynolds, Rhineland, Riding Mountain West, Ritchot, Riverdale, Rockwood, Roland, Rosedale, Rossburn, Rosser, Russell-Binscarth, Sifton, Souris-Glenwood, Springfield, St. Andrews, St. Clements, St. François Xavier, St. Laurent, Stanley, Ste. Anne, Ste. Rose, Stuartburn, Swan Valley West, Taché, Thompson, Two Borders, Victoria, Wallace-Woodworth, West Interlake, West St. Paul, WestLake-Gladstone, Whitehead, Whitemouth, Winnipeg, Woodlands and Yellowhead, in British Columbia, Alberni-Clayoquot A, B, D and F, Bulkley-Nechako A to D, F et G, Cariboo A to E and I to K, Central Saanich, Comox Valley A, Comox Valley B (Lazo North), Comox Valley C (Puntledge – Black Creek), Cowichan Valley B, F and G, Fraser-Fort George A and C to F, Juan de Fuca (Part 2), Kitimat-Stikine C (Part 1), Nanaimo (City), Nanaimo C and E to H, North Cowichan, North Saanich, Peace River B to E, Powell River E, Saanich, Saltspring Island, Skeena-Queen Charlotte C to E, Southern Gulf Islands and Strathcona D (Oyster Bay – Buttle Lake), in Saskatchewan, Aberdeen No. 373, Abernethy No. 186, Antelope Park No. 322, Antler No. 61, Argyle No. 1, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Battle River No. 438, Bayne No. 371, Beaver River No. 622, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Quill No. 308, Big Stick No. 141, Biggar No. 347, Blucher No. 343, Bone Creek No. 108, Bratt’s Lake No. 129, Britannia No. 502, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buchanan No. 304, Buffalo No. 409, Calder No. 241, Caledonia No. 99, Cambria No. 6, Cana No. 214, Canaan No. 225, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Churchbridge No. 211, Clayton No. 333, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342, Corman Park No. 344, Cote No. 271, Coteau No. 255, Coulee No. 136, Craik No. 222, Cupar No. 218, Cut Knife No. 439, Cymri No. 36, Deer Forks No. 232, Douglas No. 436, Dufferin No. 190, Dundurn No. 314, Eagle Creek No. 376, Edenwold No. 158, Elcapo No. 154, Eldon No. 471, Elfros No. 307, Elmsthorpe No. 100, Emerald No. 277, Enfield No. 194, Enniskillen No. 3, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eye Hill No. 382, Eyebrow No. 193, Fertile Belt No. 183, Fertile Valley No. 285, Fillmore No. 96, Foam Lake No. 276, Fox Valley No. 171, Francis No. 127, Frenchman Butte No. 501, Frontier No. 19, Garry No. 245, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Golden West No. 95, Good Lake No. 274, Grandview No. 349, Grant No. 372, Grass Lake No. 381, Grassy Creek No. 78, Gravelbourg No. 104, Grayson No. 184, Great Bend No. 405, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazel Dell No. 335, Hazelwood No. 94, Heart’s Hill No. 352, Hillsborough No. 132, Hillsdale No. 440, Humboldt No. 370, Huron No. 223, Indian Head No. 156, Insinger No. 275, Invermay No. 305, Ituna Bon Accord No. 246, Kellross No. 247, Key West No. 70, Keys No. 303, Kindersley No. 290, King George No. 256, Kingsley No. 124, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lajord No. 128, Lake Alma No. 8, Lake Johnston No. 102, Lake Lenore No. 399, Lake of the Rivers No. 72, Lakeside No. 338, Lakeview No. 337, Langenburg No. 181, Last Mountain Valley No. 250, Laurier No. 38, Lawtonia No. 135, Leroy No. 339, Lipton No. 217, Livingston No. 331, Lomond No. 37, Lone Tree No. 18, Longlaketon No. 219, Loon Lake No. 561, Loreburn No. 254, Lost River No. 313, Lumsden No. 189, Manitou Lake No. 442, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Mariposa No. 350, Marquis No. 191, Marriott No. 317, Martin No. 122, Maryfield No. 91, Mayfield No. 406, McCraney No. 282, McKillop No. 220, McLeod No. 185, Meadow Lake No. 588, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montmartre No. 126, Montrose No. 315, Moose Creek No. 33, Moose Jaw No. 161, Moose Mountain No. 63, Moosomin No. 121, Morris No. 312, Morse No. 165, Mount Hope No. 279, Mount Pleasant No. 2, Mountain View No. 318, Newcombe No. 260, North Battleford No. 437, North Qu’Appelle No. 187, Norton No. 69, Oakdale No. 320, Old Post No. 43, Orkney No. 244, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Poplar Valley No. 12, Prairie Rose No. 309, Prairiedale No. 321, Preeceville No. 334, Progress No. 351, Reciprocity No. 32, Redburn No. 130, Reford No. 379, Reno No. 51, Riverside No. 168, Rocanville No. 151, Rodgers No. 133, Rosedale No. 283, Rosemount No. 378, Rosthern No. 403, Round Valley No. 410, Rudy No. 284, Saltcoats No. 213, Sarnia No. 221, Saskatchewan Landing No. 167, Saskatoon, Sasman No. 336, Scott No. 98, Senlac No. 411, Shamrock No. 134, Sherwood No. 159, Silverwood No. 123, Sliding Hills No. 273, Snipe Lake No. 259, Souris Valley No. 7, South Qu’Appelle No. 157, Spalding No. 368, Spy Hill No. 152, St. Andrews No. 287, St. Peter No. 369, St. Philips No. 301, Stanley No. 215, Stonehenge No. 73, Storthoaks No. 31, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Three Lakes No. 400, Touchwood No. 248, Tramping Lake No. 380, Tullymet No. 216, Usborne No. 310, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Viscount No. 341, Wallace No. 243, Walpole No. 92, Waverley No. 44, Wawken No. 93, Webb No. 138, Wellington No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willowdale No. 153, Wilton No. 472, Winslow No. 319, Wise Creek No. 77, Wolseley No. 155, Wolverine No. 340, Wood Creek No. 281, Wood River No. 74 and Wreford No. 280, and in Alberta, Athabasca County, Barrhead County No. 11, Beaver County, Big Lakes County, Birch Hills County, Bonnyville No. 87, Brazeau County, Camrose County, Cardston County, Clear Hills, Clearwater County, Cypress County, Edmonton, Fairview No. 136, Flagstaff County, Forty Mile County No. 8, Grande Prairie County No. 1, Greenview No. 16, Kneehill County, Lac la Biche County, Lac Ste. Anne County, Lacombe County, Lamont County, Leduc County, Lesser Slave River No. 124, Lethbridge County, Mackenzie County, Minburn County No. 27, Newell County, Northern Lights County, Northern Sunrise County, Paintearth County No. 18, Parkland County, Peace No. 135, Ponoka County, Provost No. 52, Red Deer County, Saddle Hills County, Smoky Lake County, Smoky River No. 130, Special Areas No. 2, No. 3, and No. 4, Spirit River No. 133, St. Paul County No. 19, Starland County, Stettler County No. 6, Strathcona County, Sturgeon County, Taber, Thorhild County, Two Hills County No. 21, Vermilion River County, Vulcan County, Wainwright No. 61, Warner County No. 5, Westlock County, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26, Woodlands County and Yellowhead County; in respect of the 2020 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, of in Quebec, Albertville, Amqui, Auclair, Baie-des-Sables, Biencourt, Bonaventure, Cacouna, Cap-Chat, Caplan, Carleton-sur-Mer, Causapscal, Collines-du-Basque, Dégelis, Esprit-Saint, Gaspé, Grosses-Roches, Kamouraska, Lac-à-la-Croix, Lac-Alfred, Lac-des-Aigles, Lac-des-Eaux-Mortes, Lac-Huron, Lac-Matapédia, Lejeune, L’Isle-Verte, Matane, Mont-Alexandre, Mont-Carmel, New Richmond, Notre-Dame-des-Neiges, Percé, Petit-Lac-Sainte-Anne, Pohénégamook, Rimouski, Rivière-Bonaventure, Rivière-Bonjour, Rivière-du-Loup, Rivière-Nouvelle, Rivière-Ouelle, Routhierville, Ruisseau-des-Mineurs, Ruisseau-Ferguson, Saint-Alexandre-de-Kamouraska, Saint-André, Saint-Antonin, Saint-Arsène, Saint-Bruno-de-Kamouraska, Saint-Clément, Saint-Cléophas, Saint-Cyprien (Census Division – Rivière-du-Loup), Saint-Denis-De La Bouteillerie, Sainte-Angèle-de-Mérici, Sainte-Anne-de-la-Pocatière, Sainte-Félicité (Census Division – Matane), Sainte-Flavie, Sainte-Jeanne-d’Arc (Census Division – La Mitis), Saint-Éloi, Sainte-Luce, Saint-Elzéar-de-Témiscouata, Saint-Épiphane, Saint-Eusèbe, Saint-Fabien, Saint-François-d’Assise, Saint-Gabriel-de-Rimouski, Saint-Germain, Saint-Guy, Saint-Hubert-de-Rivière-du-Loup, Saint-Jean-de-Dieu, Saint-Jean-de-la-Lande, Saint-Léon-le-Grand (Census Division – La Matapédia), Saint-Mathieu-de-Rioux, Saint-Octave-de-Métis, Saint-Onésime-d’Ixworth, Saint-Pacôme, Saint-Pascal, Saint-Philippe-de-Néri, Saint-Simon (Census Division – Les Basques), Saint-Ulric, Sayabec, Shigawake, Témiscouata-sur-le-Lac and Val-Brillant, in Nova-Scotia, Colchester, Subdivision A, and Cumberland, Subdivisions A to D, in New Brunswick, the entire province, and in Prince Edward Island, the entire province; in respect of the 2021 calendar year, the Consolidated Census Subdivisions, based on the 2016 Statistics Canada Census, of in Ontario, Alberton, Chapple, Dawson, Emo, Kenora (Unorganized), La Vallee, Lake of the Woods, Morley, Neebing, O’Connor, Oliver Paipoonge, Rainy River (Unorganized), Thunder Bay and Thunder Bay (Unorganized), in Manitoba, Alexander, Alonsa, Argyle, Armstrong, Bifrost-Riverton, Boissevain-Morton, Brenda-Waskada, Brokenhead, Cartier, Cartwright-Roblin, Clanwilliam-Erickson, Coldwell, Dauphin, De Salaberry, Deloraine-Winchester, Division No. 1 (Unorganized), Division No. 17 (Unorganized), Division No. 18 (Unorganized, East Part), Division No. 18 (Unorganized, West Part), Division No. 19 (Unorganized), Division No. 20 (Unorganized, South Part), Division No. 21 (Unorganized), Dufferin, Ellice-Archie, Elton, Emerson-Franklin, Ethelbert, Fisher, Gilbert Plains, Gimli, Glenboro-South Cypress, Glenella-Lansdowne, Grahamdale, Grandview, Grassland, Grey, Hamiota, Hanover, Harrison Park, Headingley, Hillsburg-Roblin-Shell River, Killarney – Turtle Mountain, La Broquerie, Lac du Bonnet, Lakeshore, Lorne, Louise, Macdonald, McCreary, Minitonas-Bowsman, Minto-Odanah, Montcalm, Morris, Mossey River, Mountain (North), Mountain (South), Norfolk-Treherne, North Cypress-Langford, North Norfolk, Oakland-Wawanesa, Oakview, Pembina, Piney, Pipestone, Portage la Prairie, Prairie Lakes, Prairie View, Reynolds, Rhineland, Riding Mountain West, Ritchot, Riverdale, Rockwood, Roland, Rosedale, Rossburn, Rosser, Russell-Binscarth, Sifton, Souris-Glenwood, Springfield, St. Andrews, St. Clements, St. François Xavier, St. Laurent, Stanley, Ste. Anne, Ste. Rose, Stuartburn, Swan Valley West, Taché, Thompson, Two Borders, Victoria, Wallace-Woodworth, West Interlake, West St. Paul, WestLake-Gladstone, Whitehead, Whitemouth, Winnipeg, Woodlands and Yellowhead, in British Columbia, Abbotsford, Alberni-Clayoquot A, B, D and F, Burnaby, Cariboo E, G, H, K and L, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Central Saanich, Columbia-Shuswap A and C to F, Comox Valley A, Comox Valley B (Lazo North), Comox Valley C (Puntledge – Black Creek), Cowichan Valley B, F and G, Delta, East Kootenay A to C and E to G, Fraser Valley B and D to G, Fraser-Fort George H, Greater Vancouver A, Juan de Fuca (Part 2), Kootenay Boundary B/Lower Columbia-Old-Glory, Kootenay Boundary D/Rural Grand Forks, Kootenay Boundary E/West Boundary, Langley, Maple Ridge, Nanaimo, Nanaimo C and E to H, North Cowichan, North Okanagan B and D to F, North Saanich, Okanagan-Similkameen A to H, Peace River D, Pitt Meadows, Richmond, Saanich, Saltspring Island, Southern Gulf Islands, Spallumcheen, Squamish-Lillooet B, Strathcona D (Oyster Bay – Buttle Lake), Surrey, Thompson-Nicola A (Wells Gray Country), Thompson-Nicola B (Thompson Headwaters), Thompson-Nicola E (Bonaparte Plateau), Thompson-Nicola I (Blue Sky Country), Thompson-Nicola J (Copper Desert Country), Thompson-Nicola L (Grasslands), Thompson-Nicola M (Beautiful Nicola Valley – North), Thompson-Nicola N (Beautiful Nicola Valley – South), Thompson-Nicola O (Lower North Thompson), Thompson-Nicola P (Rivers and the Peaks) and Vancouver, in Saskatchewan, Aberdeen No. 373, Abernethy No. 186, Antelope Park No. 322, Antler No. 61, Arborfield No. 456, Argyle No. 1, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Barrier Valley No. 397, Battle River No. 438, Bayne No. 371, Beaver River No. 622, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Quill No. 308, Big River No. 555, Big Stick No. 141, Biggar No. 347, Birch Hills No. 460, Bjorkdale No. 426, Blaine Lake No. 434, Blucher No. 343, Bone Creek No. 108, Bratt’s Lake No. 129, Britannia No. 502, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buchanan No. 304, Buckland No. 491, Buffalo No. 409, Calder No. 241, Caledonia No. 99, Cambria No. 6, Cana No. 214, Canaan No. 225, Canwood No. 494, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Churchbridge No. 211, Clayton No. 333, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342, Connaught No. 457, Corman Park No. 344, Cote No. 271, Coteau No. 255, Coulee No. 136, Craik No. 222, Cupar No. 218, Cut Knife No. 439, Cymri No. 36, Deer Forks No. 232, Division No. 18 (Unorganized), Douglas No. 436, Duck Lake No. 463, Dufferin No. 190, Dundurn No. 314, Eagle Creek No. 376, Edenwold No. 158, Elcapo No. 154, Eldon No. 471, Elfros No. 307, Elmsthorpe No. 100, Emerald No. 277, Enfield No. 194, Enniskillen No. 3, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eye Hill No. 382, Eyebrow No. 193, Fertile Belt No. 183, Fertile Valley No. 285, Fillmore No. 96, Fish Creek No. 402, Flett’s Springs No. 429, Foam Lake No. 276, Fox Valley No. 171, Francis No. 127, Frenchman Butte No. 501, Frontier No. 19, Garden River No. 490, Garry No. 245, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Golden West No. 95, Good Lake No. 274, Grandview No. 349, Grant No. 372, Grass Lake No. 381, Grassy Creek No. 78, Gravelbourg No. 104, Grayson No. 184, Great Bend No. 405, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazel Dell No. 335, Hazelwood No. 94, Heart’s Hill No. 352, Hillsborough No. 132, Hillsdale No. 440, Hoodoo No. 401, Hudson Bay No. 394, Humboldt No. 370, Huron No. 223, Indian Head No. 156, Insinger No. 275, Invergordon No. 430, Invermay No. 305, Ituna Bon Accord No. 246, Kellross No. 247, Kelvington No. 366, Key West No. 70, Keys No. 303, Kindersley No. 290, King George No. 256, Kingsley No. 124, Kinistino No. 459, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lajord No. 128, Lake Alma No. 8, Lake Johnston No. 102, Lake Lenore No. 399, Lake of the Rivers No. 72, Lakeside No. 338, Lakeview No. 337, Langenburg No. 181, Last Mountain Valley No. 250, Laurier No. 38, Lawtonia No. 135, Leask No. 464, Leroy No. 339, Lipton No. 217, Livingston No. 331, Lomond No. 37, Lone Tree No. 18, Longlaketon No. 219, Loon Lake No. 561, Loreburn No. 254, Lost River No. 313, Lumsden No. 189, Manitou Lake No. 442, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Mariposa No. 350, Marquis No. 191, Marriott No. 317, Martin No. 122, Maryfield No. 91, Mayfield No. 406, McCraney No. 282, McKillop No. 220, McLeod No. 185, Meadow Lake No. 588, Medstead No. 497, Meeting Lake No. 466, Meota No. 468, Mervin No. 499, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montmartre No. 126, Montrose No. 315, Moose Creek No. 33, Moose Jaw No. 161, Moose Mountain No. 63, Moose Range No. 486, Moosomin No. 121, Morris No. 312, Morse No. 165, Mount Hope No. 279, Mount Pleasant No. 2, Mountain View No. 318, Newcombe No. 260, Nipawin No. 487, North Battleford No. 437, North Qu’Appelle No. 187, Norton No. 69, Oakdale No. 320, Old Post No. 43, Orkney No. 244, Paddockwood No. 520, Parkdale No. 498, Paynton No. 470, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Pleasantdale No. 398, Ponass Lake No. 367, Poplar Valley No. 12, Porcupine No. 395, Prairie Rose No. 309, Prairiedale No. 321, Preeceville No. 334, Prince Albert No. 461, Progress No. 351, Reciprocity No. 32, Redberry No. 435, Redburn No. 130, Reford No. 379, Reno No. 51, Riverside No. 168, Rocanville No. 151, Rodgers No. 133, Rosedale No. 283, Rosemount No. 378, Rosthern No. 403, Round Hill No. 467, Round Valley No. 410, Rudy No. 284, Saltcoats No. 213, Sarnia No. 221, Saskatchewan Landing No. 167, Saskatoon, Sasman No. 336, Scott No. 98, Senlac No. 411, Shamrock No. 134, Shellbrook No. 493, Sherwood No. 159, Silverwood No. 123, Sliding Hills No. 273, Snipe Lake No. 259, Souris Valley No. 7, South Qu’Appelle No. 157, Spalding No. 368, Spiritwood No. 496, Spy Hill No. 152, St. Andrews No. 287, St. Louis No. 431, St. Peter No. 369, St. Philips No. 301, Stanley No. 215, Star City No. 428, Stonehenge No. 73, Storthoaks No. 31, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Three Lakes No. 400, Tisdale No. 427, Torch River No. 488, Touchwood No. 248, Tramping Lake No. 380, Tullymet No. 216, Turtle River No. 469, Usborne No. 310, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Viscount No. 341, Wallace No. 243, Walpole No. 92, Waverley No. 44, Wawken No. 93, Webb No. 138, Wellington No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willow Creek No. 458, Willowdale No. 153, Wilton No. 472, Winslow No. 319, Wise Creek No. 77, Wolseley No. 155, Wolverine No. 340, Wood Creek No. 281, Wood River No. 74 and Wreford No. 280, and in Alberta, Athabasca County, Barrhead County No. 11, Beaver County, Bighorn No. 8, Big Lakes County, Birch Hills County, Bonnyville No. 87, Brazeau County, Calgary, Camrose County, Cardston County, Clear Hills, Clearwater County, Cypress County, Edmonton, Fairview No. 136, Flagstaff County, Foothills No. 31, Forty Mile County No. 8, Grande Prairie County No. 1, Greenview No. 16, Improvement District No. 12, Jasper Park, Kneehill County, Lac la Biche County, Lac Ste. Anne County, Lacombe County, Lamont County, Leduc County, Lesser Slave River No. 124, Lethbridge County, Minburn County No. 27, Mountain View County, Newell County, Paintearth County No. 18, Parkland County, Peace No. 135, Pincher Creek No. 9, Ponoka County, Provost No. 52, Ranchland No. 66, Red Deer County, Rocky View County, Saddle Hills County, Smoky Lake County, Smoky River No. 130, Special Areas No. 2, No. 3 and No. 4, Spirit River No. 133, St. Paul County No. 19, Starland County, Stettler County No. 6, Strathcona County, Sturgeon County, Taber, Thorhild County, Two Hills County No. 21, Vermilion River County, Vulcan County, Wainwright No. 61, Warner County No. 5, Westlock County, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26, Woodlands County and Yellowhead County; in respect of the 2022 calendar year, the Consolidated Census Subdivisions, based on the 2021 Statistics Canada Census, of in Ontario, Ashfield-Colborne-Wawanosh, Bluewater, Caledon, Cambridge, Central Huron, Centre Wellington, East Garafraxa, Erin, Guelph/Eramosa, Halton Hills, Huron East, Kitchener, Mapleton, Milton, Morris-Turnberry, North Dumfries, North Huron, North Perth, Oakville, Perth East, Perth South, Puslinch, South Huron, Wellesley, West Perth, Wilmot and Woolwich, in Manitoba, Alonsa, Argyle, Armstrong, Bifrost-Riverton, Boissevain-Morton, Brenda-Waskada, Brokenhead, Cartier, Cartwright-Roblin, Clanwilliam-Erickson, Coldwell, Dauphin, De Salaberry, Deloraine-Winchester, Division No. 17 (Unorganized), Division No. 18 (Unorganized, East Part), Division No. 18 (Unorganized, West Part), Dufferin, Elton, Emerson-Franklin, Fisher, Gimli, Glenboro-South Cypress, Glenella-Lansdowne, Grahamdale, Grassland, Grey, Hanover, Harrison Park, Headingley, Killarney – Turtle Mountain, Lakeshore, Lorne, Louise, Macdonald, McCreary, Minto-Odanah, Montcalm, Morris, Norfolk-Treherne, North Cypress-Langford, North Norfolk, Oakland-Wawanesa, Oakview, Pembina, Portage la Prairie, Prairie Lakes, Rhineland, Ritchot, Riverdale, Rockwood, Roland, Rosedale, Rosser, Souris-Glenwood, Springfield, St. Andrews, St. Clements, St. François Xavier, St. Laurent, Stanley, Ste. Rose, Taché, Thompson, Victoria, West Interlake, West St. Paul, WestLake-Gladstone, Whitehead, Winnipeg, Woodlands and Yellowhead, in Saskatchewan, Antelope Park No. 322, Arlington No. 79, Auvergne No. 76, Big Stick No. 141, Biggar No. 347, Blaine Lake No. 434, Blucher No. 343, Bone Creek No. 108, Buffalo No. 409, Canaan No. 225, Carmichael No. 109, Chaplin No. 164, Chesterfield No. 261, Clinworth No. 230, Corman Park No. 344, Coteau No. 255, Coulee No. 136, Deer Forks No. 232, Douglas No. 436, Dundurn No. 314, Eagle Creek No. 376, Enfield No. 194, Enterprise No. 142, Excelsior No. 166, Eye Hill No. 382, Fertile Valley No. 285, Fox Valley No. 171, Frontier No. 19, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Grandview No. 349, Grass Lake No. 381, Grassy Creek No. 78, Gravelbourg No. 104, Great Bend No. 405, Gull Lake No. 139, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Heart’s Hill No. 352, Kindersley No. 290, King George No. 256, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lake of the Rivers No. 72, Lawtonia No. 135, Leask No. 464, Lone Tree No. 18, Loreburn No. 254, Lost River No. 313, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Mariposa No. 350, Marriott No. 317, Mayfield No. 406, McCraney No. 282, Meeting Lake No. 466, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montrose No. 315, Morse No. 165, Mountain View No. 318, Newcombe No. 260, Oakdale No. 320, Old Post No. 43, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Poplar Valley No. 12, Prairiedale No. 321, Progress No. 351, Redberry No. 435, Reford No. 379, Reno No. 51, Riverside No. 168, Rosedale No. 283, Rosemount No. 378, Round Valley No. 410, Rudy No. 284, Saskatchewan Landing No. 167, Saskatoon, Shamrock No. 134, Snipe Lake No. 259, St. Andrews No. 287, Stonehenge No. 73, Sutton No. 103, Swift Current No. 137, Tramping Lake No. 380, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Waverley No. 44, Webb No. 138, Whiska Creek No. 106, White Valley No. 49, Willow Bunch No. 42, Winslow No. 319, Wise Creek No. 77 and Wood River No. 74, and in Alberta, Calgary, Cardston County, Cypress County, Foothills County, Forty Mile County No. 8, Kneehill County, Lacombe County, Lethbridge County, Mountain View County, Newell County, Paintearth County No. 18, Pincher Creek No. 9, Red Deer County, Rocky View County, Special Areas No. 2, No. 3, and No. 4, Starland County, Stettler County No. 6, Taber, Vulcan County, Warner County No. 5, Wheatland County and Willow Creek No. 26; in respect of the 2023 calendar year, the Consolidated Census Subdivisions, based on the 2021 Statistics Canada Census, of in Manitoba, Argyle, Boissevain-Morton, Brenda-Waskada, Cartwright-Roblin, Deloraine-Winchester, Dufferin, Ellice-Archie, Glenboro-South Cypress, Glenella-Lansdowne, Grassland, Grey, Killarney-Turtle Mountain, Lorne, Louise, Macdonald, Montcalm, Morris, Norfolk-Treherne, North Norfolk, Oakland-Wawanesa, Pembina, Pipestone, Portage la Prairie, Prairie Lakes, Prairie View, Rhineland, Roland, Rosedale, Russell-Binscarth, Sifton, Souris-Glenwood, St. Laurent, Stanley, Thompson, Two Borders, Victoria, Wallace-Woodworth, WestLake-Gladstone and Woodlands, in British Columbia, Abbotsford, Alberni-Clayoquot A, B, D and F, Bulkley-Nechako A to G, Burnaby, Cariboo A to L, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan West, Central Saanich, Columbia-Shuswap A and C to F, Comox Valley A, Comox Valley B (Lazo North), Comox Valley C (Puntledge-Black Creek), Cowichan Valley B, F and G, Delta, East Kootenay A to C and E to G, Fraser-Fort George A and C to F, Fraser Valley B and D to G, Juan de Fuca (Part 2), Kootenay Boundary B/Lower Columbia-Old-Glory, Kootenay Boundary D/Rural Grand Forks, Kootenay Boundary E/West Boundary, Langley, Maple Ridge, Metro Vancouver A, Mount Waddington C, Nanaimo, Nanaimo C and E to H, North Cowichan, North Okanagan B and D to F, North Saanich, Northern Rockies, Okanagan-Similkameen A to H, Peace River B to E, Pitt Meadows, qathet A, C and E, Richmond, Saanich, Saltspring Island, Southern Gulf Islands, Spallumcheen, Squamish-Lillooet B and C, Strathcona C, Strathcona D (Oyster Bay-Buttle Lake), Sunshine Coast A, Surrey, Thompson-Nicola A (Wells Gray Country), Thompson-Nicola B (Thompson Headwaters), Thompson-Nicola E (Bonaparte Plateau), Thompson-Nicola I (Blue Sky Country), Thompson-Nicola J (Copper Desert Country), Thompson-Nicola L (Grasslands), Thompson-Nicola M (Beautiful Nicola Valley-North), Thompson-Nicola N (Beautiful Nicola Valley-South), Thompson-Nicola O (Lower North Thompson), Thompson-Nicola P (Rivers and the Peaks) and Vancouver, in Saskatchewan, Aberdeen No. 373, Antelope Park No. 322, Antler No. 61, Argyle No. 1, Arlington No. 79, Arm River No. 252, Auvergne No. 76, Baildon No. 131, Battle River No. 438, Bengough No. 40, Benson No. 35, Big Arm No. 251, Big Stick No. 141, Biggar No. 347, Blaine Lake No. 434, Blucher No. 343, Bone Creek No. 108, Britannia No. 502, Brock No. 64, Brokenshell No. 68, Browning No. 34, Buffalo No. 409, Caledonia No. 99, Cambria No. 6, Canaan No. 225, Carmichael No. 109, Caron No. 162, Chaplin No. 164, Chester No. 125, Chesterfield No. 261, Churchbridge No. 211, Clinworth No. 230, Coalfields No. 4, Colonsay No. 342, Corman Park No. 344, Coteau No. 255, Coulee No. 136, Craik No. 222, Cut Knife No. 439, Cymri No. 36, Deer Forks No. 232, Douglas No. 436, Dufferin No. 190, Dundurn No. 314, Eagle Creek No. 376, Elcapo No. 154, Eldon No. 471, Elmsthorpe No. 100, Enfield No. 194, Enniskillen No. 3, Enterprise No. 142, Estevan No. 5, Excel No. 71, Excelsior No. 166, Eye Hill No. 382, Eyebrow No. 193, Fertile Belt No. 183, Fertile Valley No. 285, Fillmore No. 96, Fox Valley No. 171, Frontier No. 19, Glen Bain No. 105, Glen McPherson No. 46, Glenside No. 377, Golden West No. 95, Grandview No. 349, Grant No. 372, Grass Lake No. 381, Grassy Creek No. 78, Gravelbourg No. 104, Grayson No. 184, Great Bend No. 405, Griffin No. 66, Gull Lake No. 139, Happy Valley No. 10, Happyland No. 231, Harris No. 316, Hart Butte No. 11, Hazelwood No. 94, Heart’s Hill No. 352, Hillsborough No. 132, Hillsdale No. 440, Huron No. 223, Key West No. 70, Kindersley No. 290, King George No. 256, Kingsley No. 124, Lac Pelletier No. 107, Lacadena No. 228, Laird No. 404, Lake Alma No. 8, Lake Johnston No. 102, Lake of the Rivers No. 72, Langenburg No. 181, Laurier No. 38, Lawtonia No. 135, Leask No. 464, Lomond No. 37, Lone Tree No. 18, Loreburn No. 254, Lost River No. 313, Manitou Lake No. 442, Mankota No. 45, Maple Bush No. 224, Maple Creek No. 111, Mariposa No. 350, Marquis No. 191, Marriott No. 317, Martin No. 122, Maryfield No. 91, Mayfield No. 406, McCraney No. 282, Meeting Lake No. 466, Meota No. 468, Milden No. 286, Milton No. 292, Miry Creek No. 229, Monet No. 257, Montrose No. 315, Moose Creek No. 33, Moose Jaw No. 161, Moose Mountain No. 63, Moosomin No. 121, Morris No. 312, Morse No. 165, Mount Pleasant No. 2, Mountain View No. 318, Newcombe No. 260, North Battleford No. 437, Norton No. 69, Oakdale No. 320, Old Post No. 43, Paynton No. 470, Pense No. 160, Perdue No. 346, Piapot No. 110, Pinto Creek No. 75, Pittville No. 169, Pleasant Valley No. 288, Poplar Valley No. 12, Prairiedale No. 321, Progress No. 351, Reciprocity No. 32, Redberry No. 435, Redburn No. 130, Reford No. 379, Reno No. 51, Riverside No. 168, Rocanville No. 151, Rodgers No. 133, Rosedale No. 283, Rosemount No. 378, Rosthern No. 403, Round Hill No. 467, Round Valley No. 410, Rudy No. 284, Saltcoats No. 213, Sarnia No. 221, Saskatchewan Landing No. 167, Saskatoon, Scott No. 98, Senlac No. 411, Shamrock No. 134, Silverwood No. 123, Snipe Lake No. 259, Souris Valley No. 7, Spy Hill No. 152, St. Andrews No. 287, Stonehenge No. 73, Storthoaks No. 31, Surprise Valley No. 9, Sutton No. 103, Swift Current No. 137, Tecumseh No. 65, Terrell No. 101, The Gap No. 39, Tramping Lake No. 380, Turtle River No. 469, Val Marie No. 17, Vanscoy No. 345, Victory No. 226, Walpole No. 92, Waverley No. 44, Wawken No. 93, Webb No. 138, Wellington No. 97, Weyburn No. 67, Wheatlands No. 163, Whiska Creek No. 106, White Valley No. 49, Willner No. 253, Willow Bunch No. 42, Willowdale No. 153, Wilton No. 472, Winslow No. 319, Wise Creek No. 77, Wood Creek No. 281 and Wood River No. 74, and in Alberta, Athabasca County, Barrhead County No. 11, Beaver County, Bighorn No. 8, Birch Hills County, Calgary, Camrose County, Cardston County, Clear Hills, Clearwater County, Cypress County, Edmonton, Fairview No. 136, Flagstaff County, Foothills County, Forty Mile County No. 8, Grande Prairie County No. 1, Kneehill County, Lacombe County, Lac Ste. Anne County, Lamont County, Leduc County, Lethbridge County, Mackenzie County, Minburn County No. 27, Mountain View County, Newell County, Northern Lights County, Northern Sunrise County, Paintearth County No. 18, Parkland County, Peace No. 135, Pincher Creek No. 9, Ponoka County, Provost No. 52, Ranchland No. 66, Red Deer County, Rocky View County, Saddle Hills County, Smoky Lake County, Special Areas No. 2, No. 3 and No. 4, Spirit River No. 133, Starland County, Stettler County No. 6, St. Paul County No. 19, Strathcona County, Sturgeon County, Taber, Thorhild County, Two Hills County No. 21, Vermilion River County, Vulcan County, Wainwright No. 61, Warner County No. 5, Westlock County, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26 and Woodlands County; and in respect of the 2024 calendar year, the Consolidated Census Subdivisions, based on the 2021 Statistics Canada Census, of in Manitoba, Division No. 23, Unorganized, in British Columbia, Bulkley-Nechako A to G, Cariboo A to D, F and I to K, Central Coast A, Columbia-Shuswap A and E, East Kootenay A to C and F, Fraser-Fort George A, C to F and H, Kitimat-Stikine B and C (Part 1), Mount Waddington C, North Coast C to E, Northern Rockies, Peace River B to E, Stikine Region, Strathcona C, Strathcona D (Oyster Bay-Buttle Lake), Thompson-Nicola A (Wells Gray Country) and Thompson-Nicola B (Thompson Headwaters), in Saskatchewan, Antelope Park No. 322, Battle River No. 438, Beaver River No. 622, Britannia No. 502, Buffalo No. 409, Chesterfield No. 261, Clinworth No. 230, Cut Knife No. 439, Deer Forks No. 232, Division No. 18, Unorganized, Douglas No. 436, Eagle Creek No. 376, Eldon No. 471, Enterprise No. 142, Eye Hill No. 382, Fox Valley No. 171, Frenchman Butte No. 501, Glenside No. 377, Grass Lake No. 381, Great Bend No. 405, Happyland No. 231, Heart’s Hill No. 352, Hillsdale No. 440, Kindersley No. 290, Loon Lake No. 561, Manitou Lake No. 442, Maple Creek No. 111, Mayfield No. 406, Meadow Lake No. 588, Medstead No. 497, Meeting Lake No. 466, Meota No. 468, Mervin No. 499, Milton No. 292, Mountain View No. 318, Newcombe No. 260, North Battleford No. 437, Oakdale No. 320, Parkdale No. 498, Paynton No. 470, Pleasant Valley No. 288, Prairiedale No. 321, Progress No. 351, Redberry No. 435, Reford No. 379, Reno No. 51, Rosemount No. 378, Round Hill No. 467, Round Valley No. 410, Senlac No. 411, Snipe Lake No. 259, Spiritwood No. 496, Tramping Lake No. 380, Turtle River No. 469, Wilton No. 472 and Winslow No. 319, in Alberta, Athabasca County, Barrhead County No. 11, Beaver County, Bighorn No. 8, Big Lakes County, Birch Hills County, Bonnyville No. 87, Brazeau County, Calgary, Camrose County, Cardston County, Clear Hills, Clearwater County, Cypress County, Edmonton, Fairview No. 136, Flagstaff County, Foothills County, Forty Mile County No. 8, Grande Prairie County No. 1, Greenview No. 16, Improvement District No. 12 Jasper Park, Improvement District No. 24 Wood Buffalo, Kneehill County, Lac la Biche County, Lacombe County, Lac Ste. Anne County, Lamont County, Leduc County, Lesser Slave River No. 124, Mackenzie County, Minburn County No. 27, Mountain View County, Newell County, Northern Lights County, Northern Sunrise County, Paintearth County No. 18, Parkland County, Peace No. 135, Pincher Creek No. 9, Ponoka County, Provost No. 52, Ranchland No. 66, Red Deer County, Rocky View County, Saddle Hills County, Smoky Lake County, Smoky River No. 130, Special Areas No. 2, No. 3 and No. 4, Spirit River No. 133, Starland County, Stettler County No. 6, St. Paul County No. 19, Strathcona County, Sturgeon County, Taber, Thorhild County, Two Hills County No. 21, Vermilion River County, Vulcan County, Wainwright No. 61, Westlock County, Wetaskiwin County No. 10, Wheatland County, Willow Creek No. 26, Wood Buffalo, Woodlands County and Yellowhead County, in Yukon, Yukon, Unorganized, in Northwest Territories, Region 2, Unorganized, Region 3, Unorganized, Region 4, Unorganized, Region 5, Unorganized and Region 6, Unorganized, and in Nunavut, Kivalliq, Unorganized. For the purpose of this section, reserve has the same meaning as assigned by the Indian Act. For the purpose of this section, if a portion of territory is surrounded by the territory of a census division, census subdivision, municipal entity or other geographic designation listed in subsection (1) in respect of a year, that portion of territory is deemed to be listed under that subsection in respect of that year. For the purposes of subsection 80.3(4) of the Act, the following regions are prescribed regions of flood or excessive moisture: in respect of the 2008 calendar year, in Manitoba, the rural municipalities of Alonsa, Armstrong, Bifrost, Coldwell, Dauphin, Eriksdale, Ethelbert, Fisher, Gimli, Glenella, Grahamdale, Lakeview, Lawrence, McCreary, Mossey River, Mountain South, Ochre River, Rockwood, Siglunes, St. Andrews, St. Laurent, Ste. Rose and Woodlands, and any reserve that is contiguous to a rural municipality referred to in subparagraph (i), or that is part of a series of contiguous reserves one of which is contiguous to a rural municipality referred to in subparagraph (i), of the bands designated as Dauphin River, Ebb and Flow, Fisher River, Kinonjeoshtegon First Nation, Lake Manitoba First Nation, Lake St. Martin, Little Saskatchewan, O-Chi-Chak-Ko-Sipi First Nation, Peguis, Pinaymootang First Nation, Sandy Bay and Skownan First Nation; in respect of the 2009 calendar year, in Manitoba, the rural municipalities of Alexander, Alonsa, Armstrong, Bifrost, Brokenead, Coldwell, Eriksdale, Fisher, Gimli, Grahamdale, Lac du Bonnet, Lawrence, Mossey River, Reynolds, Rockwood, St. Andrews, St. Clements, St. Laurent, Siglunes, Whitemouth and Woodlands, and Census Division No. 18, Unorganized, East and West Parts and No. 19, Unorganized, as developed by Statistics Canada for the 2006 Census; in respect of the 2010 calendar year, in Manitoba, Census Divisions No. 18 and 19, Unorganized and No. 20, Unorganized, North and South Parts, as these divisions were developed by Statistics Canada for the 2006 Census, the Rural Municipalities of Albert, Alexander, Alonsa, Armstrong, Arthur, Bifrost, Brenda, Brokenhead, Cameron, Coldwell, Dauphin, East St. Paul, Edward, Eriksdale, Ethelbert, Fisher, Gilbert Plains, Gimli, Glenella, Grahamdale, Grandview, Hillsburg, Kelsey, Lac du Bonnet, Lawrence, McCreary, Minitonas, Mountain, Mossey River, Ochre River, Pipestone, Reynolds, Rockwood, St. Andrews, St. Clements, St. Laurent, Ste. Rose, Shellmouth-Boulton, Shell River, Sifton, Siglunes, Swan River, West St. Paul, Whitemouth, Winchester and Woodlands and the Valley River 63A reserve, and in Saskatchewan, the Rural Municipalities of Aberdeen, Arborfield, Barrier Valley, Bayne, Big Quill, Birch Hills, Bjorkdale, Blaine Lake, Blucher, Buchanan, Buckland, Calder, Cana, Canwood, Churchbridge, Clayton, Colonsay, Connaught, Corman Park, Cote, Cupar, Duck Lake, Dundurn, Elfros, Emerald, Fish Creek, Flett’s Springs, Foam Lake, Garden River, Garry, Good Lake, Grant, Great Bend, Hazel Dell, Hoodoo, Hudson Bay, Humboldt, Insinger, Invergordon, Invermay, Ituna Bon Accord, Kellross, Kelvington, Keys, Kinistino, Laird, Lakeland, Lake Lenore, Lakeside, Lakeview, Leask, Leroy, Lipton, Livingston, Lost River, McCraney, Moose Range, Morris, Mount Hope, Nipawin, Orkney, Paddockwood, Pleasantdale, Ponass Lake, Porcupine, Prairie Rose, Preeceville, Prince Albert, Redberry, Rosedale, Rosthern, Saltcoats, Sasman, Shellbrook, Sliding Hills, Spalding, St. Louis, St. Peter, St. Philips, Stanley, Star City, Three Lakes, Tisdale, Torch River, Touchwood, Tullymet, Usborne, Vanscoy, Viscount, Wallace, Willow Creek, Wolverine, Wood Creek and Wreford; and in respect of the 2011 calendar year, in Manitoba, Census Divisions No. 18 and 19, Unorganized, as these divisions were developed by Statistics Canada for the 2006 Census, and the Rural Municipalities of Albert, Alonsa, Archie, Armstrong, Arthur, Bifrost, Brenda, Cameron, Coldwell, Cornwallis, Dauphin, Edward, Eriksdale, Fisher, Gimli, Glenella, Glenwood, Grahamdale, Kelsey, Lakeview, Lawrence, McCreary, Miniota, Morton, Mossey River, Oakland, Ochre River, Pipestone, Portage la Prairie, St. Laurent, Ste. Rose, Sifton, Siglunes, Wallace, Westbourne, Whitehead, Whitewater, Winchester, Woodlands and Woodworth, and in Saskatchewan, the Rural Municipalities of Abernethy, Antler, Argyle, Benson, Bratt’s Lake, Brock, Brokenshell, Browning, Calder, Caledonia, Cambria, Cana, Chester, Churchbridge, Coalfields, Cymri, Elcapo, Enniskillen, Estevan, Fertile Belt, Fillmore, Francis, Golden West, Grayson, Griffin, Hazelwood, Indian Head, Kingsley, Lake Alma, Lajord, Langenburg, Laurier, Lomond, Martin, Maryfield, McLeod, Montmartre, Moose Creek, Moose Mountain, Moosomin, Mount Pleasant, Norton, Orkney, Reciprocity, Rocanville, Saltcoats, Scott, Silverwood, Souris Valley, Spy Hill, Stanley, Storthoaks, Tecumseh, Tullymet, Wallace, Walpole, Wawken, Wellington, Weyburn, Willowdale and Wolseley. For the purpose of this section, band and reserve have the same meaning as assigned by the Indian Act. For the purpose of subparagraph (v) of the description of A in paragraph 6(1)(k) of the Act, the amount prescribed for a taxation year is if a taxpayer is employed in a taxation year by a particular person principally in selling or leasing automobiles and an automobile is made available in the year to the taxpayer or a person related to the taxpayer by the particular person or a person related to the particular person, 31 cents; and in any other case, 34 cents. For the purposes of paragraph 18(1)(r) of the Act, the amount in respect of the use of one or more automobiles in a taxation year by an individual for kilometres driven in the year for the purpose of earning income of the individual is the total of the product of 66 cents multiplied by the number of those kilometres; the product of 6 cents multiplied by the lesser of 5,000 and the number of those kilometres; and the product of 4 cents multiplied by the number of those kilometres driven in the Yukon Territory, the Northwest Territories or Nunavut. For the purposes of subsection 13(2), paragraph 13(7)(g), subparagraph 13(7)(h)(iii), subsections 20(4) and (16.1), the description of B in paragraph 67.3(d) and subparagraph 85(1)(e.4)(i) of the Act, the amount prescribed is with respect to an automobile acquired, or leased under a lease entered into, after August 1989 and before 1991, $24,000; and with respect to an automobile acquired, or leased under a lease entered into, after 1990, the amount determined by the formula is, with respect to an automobile acquired, or leased under a lease entered into, (i)before 1997, $24,000, before 1997, $24,000, (ii)in 1997, $25,000, in 1997, $25,000, (iii)in 1998 or 1999, $26,000, in 1998 or 1999, $26,000, (iv)in 2000, $27,000, in 2000, $27,000, (v)after 2000 and before 2022, $30,000, after 2000 and before 2022, $30,000, (vi)after 2021 and before 2023, $34,000, after 2021 and before 2023, $34,000, (vii)after 2022 and before 2024, $36,000, after 2022 and before 2024, $36,000, (viii)after 2023 and before 2025, $37,000, and after 2023 and before 2025, $37,000, and (ix)after 2024, $38,000, and after 2024, $38,000, and is the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the automobile if it had been acquired, at a cost equal to A before the application of the federal and provincial sales taxes, if the automobile (i)was acquired, at the time of the acquisition, or was acquired, at the time of the acquisition, or (ii)was leased, at the time the lease was entered into. was leased, at the time the lease was entered into. For the purposes of paragraph 13(7)(i) of the Act, the amount prescribed in respect of a zero-emission passenger vehicle of a taxpayer is the amount determined by the formula is, with respect to a vehicle acquired, (a)after March 18, 2019 and before 2022, $55,000, after March 18, 2019 and before 2022, $55,000, (b)after 2021 and before 2023, $59,000, and after 2021 and before 2023, $59,000, and (c)after 2022, $61,000; and after 2022, $61,000; and is the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the vehicle if it had been acquired by the taxpayer at a cost equal to A, before the application of the federal and provincial sales taxes. For the purpose of the description of A in section 67.2 of the Act, the amount prescribed in respect of an automobile that is acquired after August 1989 and before 1997 or after 2000 and before 2024, is $300; and after 2023, is $350. For the purpose of the description of A in paragraph 67.3(c) of the Act, the amount prescribed in respect of a taxation year of a lessee is, with respect to an automobile leased under a lease entered into after August 1989 and before 1991, $650; and after 1990, the amount determined by the formula (i)for leases entered into after 1990 but before 1997, $650, for leases entered into after 1990 but before 1997, $650, (ii)for leases entered into in 1997, $550, for leases entered into in 1997, $550, (iii)for leases entered into in 1998 or 1999, $650, for leases entered into in 1998 or 1999, $650, (iv)for leases entered into in 2000, $700, for leases entered into in 2000, $700, (v)for leases entered into after 2000 but before 2022, $800, for leases entered into after 2000 but before 2022, $800, (vi)for leases entered into after 2021 but before 2023, $900, for leases entered into after 2021 but before 2023, $900, (vii)for leases entered into after 2022 but before 2024, $950, for leases entered into after 2022 but before 2024, $950, (viii)for leases entered into after 2023 but before 2025, $1,050, and for leases entered into after 2023 but before 2025, $1,050, and (ix)for leases entered into after 2024, $1,100, and for leases entered into after 2024, $1,100, and is the sum of the federal and provincial sales taxes that would have been payable on a monthly payment under the lease in the taxation year of the lessee if, before those taxes, the lease had required monthly payments equal to A. For the purpose of the description of C in paragraph 67.3(d) of the Act, the amount prescribed in respect of an automobile leased under a lease entered into after August 1989 is the amount equal to 100/85 of the amount determined in accordance with subsection (1) in respect of the automobile. In this section, carrier has the meaning assigned by subsection 146.3(1) of the Act. For the purposes of this section, a retirement income fund is a qualifying retirement income fund at a particular time if the fund was entered into before 1993 and the carrier has not accepted any property as consideration under the fund after 1992 and at or before the particular time, or the carrier has not accepted any property as consideration under the fund after 1992 and at or before the particular time, other than property transferred from a retirement income fund that, immediately before the time of the transfer, was a qualifying retirement income fund. For the purposes of the definition minimum amount in subsection 146.3(1) of the Act, the prescribed factor in respect of an individual for a year in connection with a retirement income fund that was a qualifying retirement income fund at the beginning of the year is the factor, determined pursuant to the following table, that corresponds to the age in whole years (in the table referred to as “X”) attained by the individual at the beginning of that year or that would have been so attained by the individual if the individual had been alive at the beginning of that year. For the purposes of the definition minimum amount in subsection 146.3(1) of the Act and subsection 8506(5), the prescribed factor in respect of an individual for a year in connection with a retirement income fund (other than a fund that was a qualifying retirement income fund at the beginning of the year) or the designated factor in respect of an individual for a year in connection with an account under a money purchase provision of a registered pension plan, as the case may be, is the factor, determined in accordance with the following table, that corresponds to the age in whole years (in the table referred to as “Y”) attained by the individual at the beginning of the year or that would have been so attained by the individual if the individual was alive at the beginning of the year. For the purpose of section 67.6 of the Act, penalties imposed under paragraph 110.1(1)(a) of the Excise Act are prescribed. For the purpose of the definition eligible apprentice in subsection 127(9) of the Act, a prescribed trade in respect of a province means, at all times in a taxation year, a trade that is, at any time in that taxation year, a Red Seal trade for the province under the Interprovincial Standards Red Seal Program.

For the purposes of subsections 70(9), (9.3) and (10) and 73(3) of the Act, a prescribed forest management plan in respect of a woodlot of a taxpayer is a written plan for the management and development of the woodlot that describes the composition of the woodlot, provides for the attention necessary for the growth, health and quality of the trees on the woodlot and is approved in accordance with the requirements of a provincial program established for the sustainable management and conservation of forests; or has been certified in writing by a recognized forestry professional to be a plan that describes the composition of the woodlot, provides for the attention necessary for the growth, health and quality of the trees on the woodlot and includes a description of, or a map indicating, the location of the woodlot, a description of the characteristics of the woodlot, including a map of the woodlot site that shows those characteristics, a description of the development of the woodlot, including the activities carried out on the woodlot, since the taxpayer acquired it, information acceptable to the recognized forestry professional estimating the ages and heights of the trees on the woodlot, and their species, the quantity of wood on the woodlot, the quality and composition of the soil underlying the woodlot, and the quantity of wood that the woodlot could yield as a result of the implementation of the plan, a description of, and the timing for, the activities proposed to be carried out on the woodlot under the plan, including any of those activities that deal with harvesting, renewal and regeneration, the application of silviculture techniques, and responsible stewardship and the protection of the environment, and a description of the objectives and strategies for the management and development of the woodlot over a period of at least five years. A recognized forestry professional referred to in subsection (1) is a forestry professional who has a degree, diploma or certificate recognized by the Canadian Forestry Accreditation Board, the Canadian Institute of Forestry or the Canadian Council of Technicians and Technologists. A recognized forestry professional referred to in subsection (1) is not required to express an opinion as to the completeness or correctness of a description of past activities referred to in subparagraph (1)(b)(iii) or of information referred to in subparagraph (1)(b)(iv) if the information was not prepared by that recognized forestry professional. [Repealed, 2013, c. 33, s. 36] For the purposes of paragraph (g) of the definition carved-out property in subsection 209(1) of the Act, a prescribed property at any time is any right, licence or privilege to prospect, explore, drill or mine for minerals in a mineral resource (other than a bituminous sands deposit, oil sands deposit or oil shale deposit) in Canada; any rental or royalty computed by reference to the amount or value of production of minerals from a mineral resource (other than a bituminous sands deposit, oil sands deposit or oil shale deposit) in Canada; any real property in Canada the principal value of which depends on its mineral resource content (other than a bituminous sands deposit, oil sands deposit or oil shale deposit); any right to or interest in any property described in any of paragraphs (a) to (c); or a property acquired before that time by a taxpayer in the circumstances described in paragraph (c) of the definition carved-out property in subsection 209(1) of the Act, except where it is reasonable to consider that one of the main reasons for the acquisition of the property, or any series of transactions or events in which the property was acquired by the taxpayer was to reduce or postpone tax that would, but for this paragraph, be payable by another taxpayer under Part XII.1 of the Act. For the purposes of subparagraph 56(1)(n)(i) of the Act, a prescribed prize is any prize that is recognized by the general public and that is awarded for meritorious achievement in the arts, the sciences or service to the public but does not include any amount that can reasonably be regarded as having been received as compensation for services rendered or to be rendered. For the purposes of the definition specified pension plan in subsection 248(1) of the Act, a prescribed arrangement is the Saskatchewan Pension Plan established under The Saskatchewan Pension Plan Act, chapter S-32.2 of the Statutes of Saskatchewan, 1986, as amended from time to time. For the purposes of the definitions excluded income and excluded revenue and specified deposit in subsection 95(2.5) of the Act, each of the following is a prescribed financial institution: a member of the Canadian Payments Association; and a credit union that is a shareholder or member of a body corporate or organization that is a central for the purposes of the Canadian Payments Act. For the purpose of clause 20(1)(l)(ii)(C) of the Act, the prescribed reserve amount for a taxation year means the aggregate of where the taxpayer is a bank, an amount equal to the lesser of the amount of the reserve reported in its annual report for the year that is filed with and accepted by the relevant authority or, where the taxpayer was throughout the year subject to the supervision of the relevant authority but was not required to file an annual report for the year with the relevant authority, in its financial statements for the year, as general provisions or as specific provisions, in respect of exposures to designated countries in respect of loans or lending assets of the taxpayer made or acquired by it in the ordinary course of its business, and an amount in respect of the loans or lending assets of the taxpayer at the end of the year that were made or acquired by the taxpayer in the ordinary course of its business and reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as part of the taxpayer’s total exposure to designated countries for the purposes of determining the taxpayer’s general provisions or specific provisions referred to in subparagraph (i) or that were acquired by the taxpayer after August 16, 1990 and reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country (in this subparagraph referred to as the “loans”) equal to the positive or negative amount, as the case may be, determined by the formula is the aggregate of all amounts each of which is the amount that would be the amortized cost of a loan to the taxpayer at the end of the year if the definition amortized cost in section 248 of the Act were read without reference to paragraphs (e) and (i) thereof, is the aggregate of all amounts each of which is the amount, if any, by which the principal amount of a loan outstanding at the time it was acquired by the taxpayer exceeds the amortized cost of the loan to the taxpayer immediately after the time it was acquired by the taxpayer, and is the aggregate of all amounts each of which is (A)an amount deducted in respect of a loan under clause 20(1)(l)(ii)(B) of the Act in computing the taxpayer’s income for the year, or an amount deducted in respect of a loan under clause 20(1)(l)(ii)(B) of the Act in computing the taxpayer’s income for the year, or (B)an amount in respect of a loan determined as the amount, if any, by which(I)the aggregate of all amounts in respect of the loan deducted under paragraph 20(1)(p) of the Act in computing the taxpayer’s income for the year or a preceding taxation yearexceeds(II)the aggregate of all amounts in respect of the loan included under paragraph 12(1)(i) of the Act in computing the taxpayer’s income for the year or a preceding taxation year, and an amount in respect of a loan determined as the amount, if any, by which (I)the aggregate of all amounts in respect of the loan deducted under paragraph 20(1)(p) of the Act in computing the taxpayer’s income for the year or a preceding taxation year the aggregate of all amounts in respect of the loan deducted under paragraph 20(1)(p) of the Act in computing the taxpayer’s income for the year or a preceding taxation year (II)the aggregate of all amounts in respect of the loan included under paragraph 12(1)(i) of the Act in computing the taxpayer’s income for the year or a preceding taxation year, and the aggregate of all amounts in respect of the loan included under paragraph 12(1)(i) of the Act in computing the taxpayer’s income for the year or a preceding taxation year, and where the taxpayer is a bank, the positive or negative amount that would be determined under the formula in subparagraph (a)(ii) in respect of the specified loans owned by the taxpayer at the end of the year if that subparagraph applied to those loans. [Repealed, SOR/99-91, s. 2] [Repealed, SOR/99-91, s. 3] For the purposes of paragraph 8000(a), the principal amount outstanding at any time of a lending asset of a taxpayer that is a share of the capital stock of a corporation is the part of the consideration received by the corporation for the issue of the share that is outstanding at that time; a taxpayer realizes a loss from the disposition of a loan or lending asset described in subparagraph 8000(a)(ii) or a specified loan described in paragraph 8000(a.1) (in this paragraph referred to as the “former loan”) for consideration that included another loan or lending asset that was a loan or lending asset described in subparagraph 8000(a)(ii) or paragraph 8000(a.1) (in this paragraph referred to as the “new loan”), and in the case of a former loan that is not a specified loan, the loss is included in computing the taxpayer’s provisionable assets as reported for the year to the relevant authority, in accordance with the guidelines established by the relevant authority, for the purpose of determining the taxpayer’s general provisions or specific provisions in respect of exposures to designated countries, the principal amount of the new loan outstanding at the time it was acquired by the taxpayer is deemed to be equal to the principal amount of the former loan outstanding immediately before that time; and where at the end of a particular taxation year a taxpayer owns a specified loan that, at the end of the preceding taxation year, was described in an inventory of the taxpayer, the amortized cost of the specified loan to the taxpayer at the end of the particular year is its value determined under section 10 of the Act at the end of the preceding year for the purpose of computing the taxpayer’s income for the preceding year. Where a taxpayer elects to have this section apply by notifying the Minister in writing within 90 days after the day on which this section is published in the Canada Gazette, the loans or lending assets of the taxpayer that are described in subparagraph 8000(a)(ii) shall not include any loan or lending asset acquired by the taxpayer before November 1988 from a person with whom the taxpayer was dealing at arm’s length. [Repealed, SOR/99-91, s. 5] For the purposes of subparagraph 8000(a)(ii), where a loan or lending asset of a person (in this section referred to as the “holder”) related to a taxpayer was reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country, was acquired by the holder or another person related to the taxpayer after August 16, 1990 as part of a series of transactions or events in which the taxpayer or a person related to the taxpayer disposed of a loan or lending asset that for the taxation year immediately preceding the particular year in which it was disposed of, was a loan or lending asset that was reported by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country, and was a loan or lending asset a loss arising on the disposition of which would be a loss in respect of which a deduction is permitted under Part I of the Act to the taxpayer or a person related to the taxpayer, and had an amortized cost to the holder, immediately after the time it was acquired by the holder, that was less than 55 per cent of its principal amount, the loan or lending asset shall be deemed to be a loan or lending asset of the taxpayer at the end of the year, to be a loan or lending asset of the taxpayer that was acquired by the taxpayer at the time it was acquired by the holder, and to have an amortized cost to the taxpayer, at any time, that is equal to its amortized cost to the holder at that time, and any amount in respect of the loan or lending asset deducted under paragraph 20(1)(p) of the Act or included under paragraph 12(1)(i) of the Act in computing the holder’s income for a particular year shall be deemed to have been so deducted or included, as the case may be, in computing the income of the taxpayer for the year in which the particular year ends. designated country has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (pays désigné) exposure to a designated country has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (risque que représente un pays désigné) general provisions has the same meaning as the expression general country risk provisions in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (provisions générales) provisionable assets has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (actifs ouvrant droit à provision) relevant authority means the Superintendent of Financial Institutions; (autorité compétente) specific provisions has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time. (provisions spécifiques) specified loan means a United Mexican States Collateralized Par Bond due in 2019, or a United Mexican States Collateralized Discount Bond due in 2019; (prêt désigné) [Repealed, SOR/99-91, s. 7] [Repealed, 2013, c. 34, s. 406] For the purposes of subsection 16.1(1) of the Act, prescribed property means exempt property, within the meaning assigned by paragraph 1100(1.13)(a), other than property leased on or before February 2, 1990 that is a truck or tractor that is designed for use on highways and has a “gross vehicle weight rating” (within the meaning assigned that expression by the Motor Vehicle Safety Regulations) of 11,778 kilograms or more, a trailer that is designed for use on highways and is of a type designed to be hauled under normal operating conditions by a truck or tractor described in subparagraph (i), or a railway car, property that is the subject of a lease where the tangible property, other than exempt property (within the meaning assigned by paragraph 1100(1.13)(a)), that was the subject of the lease had, at the time the lease was entered into, an aggregate fair market value not in excess of $25,000, and intangible property. For the purposes of subsection 13(18.1), the definition Canadian renewable and conservation expense in subsection 66.1(6) and subparagraph 241(4)(d)(vi.1) of the Act, prescribed energy conservation property means property described in Class 43.1 or 43.2 in Schedule II. For the purposes of subsection 16.1(1), the definition outstanding debts to specified non-residents in subsection 18(5), subsections 100(1.3), 112(2), 125.4(1) and 125.5(1), the definition taxable supplier in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), section 233.8, the definition Canadian banking business in subsection 248(1) and paragraph 260(5)(a) of the Act, a permanent establishment of a person or partnership (either of whom is referred to in this section as the “person”) means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person’s business is conducted, and where the person carries on business through an employee or agent, established in a particular place, who has general authority to contract for the person or who has a stock of merchandise owned by the person from which the employee or agent regularly fills orders, the person shall be deemed to have a permanent establishment at that place, where the person is an insurance corporation, the person is deemed to have a permanent establishment in each country in which the person is registered or licensed to do business, where the person uses substantial machinery or equipment at a particular place at any time in a taxation year, the person shall be deemed to have a permanent establishment at that place, the fact that the person has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise shall not of itself be held to mean that the person has a permanent establishment, and where the person is a corporation, the fact that the person has a subsidiary controlled corporation at a place or a subsidiary controlled corporation engaged in trade or business at a place shall not of itself be held to mean that the person is operating a permanent establishment at that place, except that, where the person is resident in a country with which the Government of Canada has concluded a tax treaty in which the expression permanent establishment is given a particular meaning, that meaning shall apply. [Repealed, SOR/2000-62, s. 5] certifiable past service event, with respect to an individual, means a past service event that is required, by reason of subsection 147.1(10) of the Act, to be disregarded, in whole or in part, in determining the benefits to be paid under a registered pension plan with respect to the individual until a certification of the Minister in respect of the event has been obtained; (fait à attester) complete period of reduced services of an individual means a period of reduced services of the individual that is not part of a longer period of reduced services of the individual; (période complète de services réduits) designated savings arrangement of an individual means a RRIF or RRSP under which the individual is the annuitant, or the individual’s account under a money purchase provision of a registered pension plan; (mécanisme d’épargne désigné) excluded contribution, to a registered pension plan, means an amount that is contributed to the plan and that is deductible under paragraph 60(j.1) of the Act, or transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (4) and (5) to (7) and 147.5(21) of the Act; (cotisation exclue) flat benefit provision of a pension plan means a defined benefit provision of the plan under which the amount of lifetime retirement benefits provided to each member is based on the aggregate of all amounts each of which is the product of a fixed rate and either the duration of service of the member or the number of units of output of the member, and, for the purposes of this definition, where the amount of lifetime retirement benefits provided under a defined benefit provision to each member is subject to a limit based on the remuneration received by the member, and the limit may reasonably be considered to be included to ensure that the amount of lifetime retirement benefits provided to each member does not exceed the maximum amount of such benefits that may be provided by a registered pension plan, the limit shall be disregarded for the purpose of determining whether the provision is a flat benefit provision; (disposition à prestations forfaitaires) individual pension plan, in respect of a calendar year, means a registered pension plan that contains a defined benefit provision if, at any time in the year or a preceding year, the plan has fewer than four members and at least one of them is related to a participating employer in the plan, or is a designated plan and it is reasonable to conclude that the rights of one or more members to receive benefits under the plan exist primarily to avoid the application of paragraph (a); (régime de retraite individuel) member, in relation to a deferred profit sharing plan or a benefit provision of a registered pension plan, means an individual who has a right (either immediate or in the future and either absolute or contingent) to receive benefits under the plan or the provision, as the case may be, other than an individual who has such a right only because of the participation of another individual in the plan or under the provision, as the case may be; (participant) PA offset for a calendar year means for years before 1997, $1,000, and for years after 1996, $600; (montant de réduction du FE) past service event means any transaction, event or circumstance that occurs after 1989 and as a consequence of which retirement benefits become provided to an individual under a defined benefit provision of a pension plan in respect of a period before the time the transaction, event or circumstance occurs, other than, if accrued retirement benefits under the provision were previously reduced in respect of a particular period, an increase to a level of retirement benefits for that particular period not exceeding the level of retirement benefits from which those benefits were previously reduced, there is a change to the way in which retirement benefits provided to an individual under a defined benefit provision of a pension plan in respect of a period before the time the transaction, event or circumstance occurs are determined, including a change that is applicable only in specified circumstances, or there is a change in the value of an indexing or other automatic adjustment that enters into the determination of the amount of an individual’s retirement benefits under a defined benefit provision of a pension plan in respect of a period before the time the value of the adjustment changes; (fait lié aux services passés) period of reduced services of an individual means, in connection with a benefit provision of a registered pension plan, a period that consists of one or more periods each of which is an eligible period of reduced pay or an eligible period of temporary absence of the individual with respect to an employer who participates under the provision, or a period of disability of the individual; (période de services réduits) refund benefit means with respect to an individual and a benefit provision of a pension plan, a return of contributions made by the individual under the provision, and with respect to an individual and a deferred profit sharing plan, a return of contributions made by the individual to the plan, and includes any interest (computed at a rate not exceeding a reasonable rate) payable in respect of those contributions. (prestation de remboursement) resident compensation of an individual from an employer for a calendar year means the amount that would be the individual’s compensation from the employer for the year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraphs (b) and (c) of that definition. (rétribution de résident) The Minister may waive in writing the application of the definition individual pension plan in subsection (1) if is just and equitable to do so having regard to all the circumstances. The definition past service event in subsection (1) is applicable for the purposes of subsection 147.1(1) of the Act. All words and expressions used in this Part that are defined in sections 147 or 147.1 of the Act or in Part LXXXV have the meanings assigned in those provisions unless a definition in this Part is applicable. For the purposes of this Part, an officer who receives remuneration for holding an office shall, for any period that the officer holds the office, be deemed to render services to, and to be in the service of, the person from whom the officer receives the remuneration. For the purposes of this Part (other than the definition member in subsection (1)), where an individual has received an interest in an annuity contract in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a pension plan, any rights of the individual under the contract are deemed to be rights under the defined benefit provision. For the purposes of this Part and subsection 147.1(10) of the Act, and subject to subsection 8308(1), the following rules apply in respect of the determination of the benefits that are provided to an individual under a defined benefit provision of a pension plan at a particular time: where a term of the defined benefit provision, or an amendment to a term of the provision, is not applicable with respect to the individual before a specified date, the term shall be considered to have been added to the provision, or the amendment shall be considered to have been made to the term, on the specified date; where an alteration to the benefits provided to the individual is conditional on the requirements of subsection 147.1(10) of the Act being met, those requirements shall be assumed to have been met; benefits that will be reinstated if the individual returns to employment with an employer who participates in the plan shall be considered not to be provided until the individual returns to employment; and where benefits under the provision depend on the individual’s job category or other circumstances, the only benefits provided to the individual are the benefits that are relevant to the individual’s circumstances at the particular time. For the purposes of subsections 8301(3) and (8), paragraph 8302(3)(c), subsections 8302(5) and 8304(5) and (5.1), paragraphs 8304.1(10)(c) and (11)(c), subparagraph 8306(4)(a)(ii) and subsection 8308(3), the benefits to which an individual is entitled at any time under a deferred profit sharing plan or pension plan include benefits to which the individual has only a contingent right because a condition for the vesting of the benefits has not been satisfied. For the purposes of this Part, such portion of an amount allocated to an individual at any time under a money purchase provision of a registered pension plan as is attributable to forfeited amounts under the provision or earnings of the plan that are reasonably attributable to those amounts, a surplus under the provision, property transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan, or property transferred to the provision in respect of the surplus under another money purchase provision of the plan or under a money purchase provision of another registered pension plan, and can reasonably be considered to be allocated in lieu of a contribution that would otherwise have been made under the provision by an employer in respect of the individual shall be deemed to be a contribution made under the provision by the employer with respect to the individual at that time and not to be an amount attributable to anything referred to in paragraph (a). For the purposes of this Part and Part LXXXV, where property held in connection with a particular benefit provision of a pension plan is made available at any time to pay benefits under another benefit provision of the plan, the property is deemed to be transferred at that time from the particular benefit provision to the other benefit provision. For the purposes of this Part and Parts LXXXIV and LXXXV, and subject to subsection (11), an individual is considered to have terminated from a deferred profit sharing plan or a benefit provision of a registered pension plan when the individual has ceased to be a member in relation to the plan or the provision, as the case may be. Where the benefits provided with respect to an individual under a particular defined benefit provision of a registered pension plan depend on benefits provided with respect to the individual under one or more other defined benefit provisions of registered pension plans (each of the particular provision and the other provisions being referred to in this subsection as a “related provision”), for the purposes of this Part and Parts LXXXIV and LXXXV, if the individual ceases, at any particular time after 1996, to be a member in relation to a specific related provision and is, at the particular time, a member in relation to another related provision, the individual is deemed not to terminate from the specific provision at the particular time, and to terminate from the specific provision at the earliest subsequent time when the individual is no longer a member in relation to any of the related provisions; if the conditions in subsection 8304.1(14) (read without reference to the words “after 1996 and”) are not satisfied with respect to the individual’s termination from a related provision, the conditions in that subsection are deemed not to be satisfied with respect to the individual’s termination from each of the other related provisions; and a specified distribution (as defined in subsection 8304.1(8)) made at any particular time in respect of the individual and a related provision is deemed, for the purpose of subsection 8304.1(5), also to be a specified distribution made at the particular time in respect of the individual and each of the other related provisions, except to the extent that the Minister has waived the application of this paragraph with respect to the distribution. For the purposes of this Part, where all or any part of the amounts payable to an individual under a deferred profit sharing plan are paid by a trustee under the plan to a licensed annuities provider to purchase for the individual an annuity described in subparagraph 147(2)(k)(vi) of the Act, or an individual has acquired, in full or partial satisfaction of the individual’s entitlement to benefits under a benefit provision of a registered pension plan (other than benefits to which the individual was entitled only because of the participation of another individual under the provision), an interest in an annuity contract (other than as a consequence of a transfer of property from the provision to a registered retirement savings plan or a registered retirement income fund under which the individual is the annuitant), the individual is deemed to continue, from the time of the payment or acquisition, as the case may be, until the individual’s death, to be a member in relation to the plan or provision, as the case may be. For the purposes of this Part and Part LXXXV, where a benefit is to be provided, or may be provided, to an individual under a defined benefit provision of a registered pension plan as a consequence of an allocation that is to be made, or may be made, to the individual of all or part of an actuarial surplus under the provision, the individual is considered not to have any right to receive the benefit under the provision until the time at which the benefit becomes provided under the provision. For the purpose of subsection 248(1) of the Act, pension adjustment of an individual for a calendar year with respect to an employer means, subject to paragraphs 8308(4)(d) and (5)(c), the total of all amounts each of which is the individual’s pension credit for the year with respect to the employer under a deferred profit sharing plan or under a benefit provision of a registered pension plan; the individual’s pension credit for the year with respect to the employer under a foreign plan, determined under section 8308.1; or the individual’s pension credit for the year with respect to the employer under a specified retirement arrangement, determined under section 8308.3. For the purposes of subsection (1) and Part LXXXV and subsection 147(5.1) of the Act, and subject to subsection 8304(2), an individual’s pension credit for a calendar year with respect to an employer under a deferred profit sharing plan is the amount determined by the formula (a)a contribution made to the plan in the year by the employer with respect to the individual, or a contribution made to the plan in the year by the employer with respect to the individual, or (b)the portion of an amount allocated in the year to the individual that is attributable to forfeited amounts under the plan or to earnings of the plan in respect of forfeited amounts, except to the extent that the portion(i)is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, or(ii)is paid to the individual in the year; and the portion of an amount allocated in the year to the individual that is attributable to forfeited amounts under the plan or to earnings of the plan in respect of forfeited amounts, except to the extent that the portion (i)is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, or is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, or (ii)is paid to the individual in the year; and is paid to the individual in the year; and is nil, unless the conditions in subsection (2.1) are satisfied, in which case it is the total referred to in paragraph (2.1)(b). The following are conditions for the purpose of the description of B in subsection (2): the total of all amounts, each of which would be the individual’s pension credit for the calendar year with respect to the employer under a deferred profit sharing plan if the description of B in subsection (2) were read as “is nil”., is equal to, or less than, 50% of the money purchase limit for the year, greater than 18% of the amount that would be the individual’s compensation from the employer for the year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraph (b) of that definition, and equal to, or less than, 18% of the amount that would be the individual’s compensation from the employer for the preceding year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraph (b) of that definition; and the total of all amounts, each of which is an amount that is paid from the plan to the individual or the employer in the calendar year or in the first two months of the following year that can reasonably be considered to derive from an amount included in the value of A in subsection (2) with respect to the individual and the employer for the year, is greater than nil. For the purposes of subsection (1) and Part LXXXV and subsection 147(5.1) of the Act, where an individual ceased in a calendar year after 1989 and before 1997 to be employed by an employer who participated in a deferred profit sharing plan for the benefit of the individual, as a consequence of the termination of employment, the individual ceased in the year to have any rights to benefits (other than a right to a refund benefit) under the plan, the individual was not entitled to benefits under the plan at the end of the year, or was entitled only to a refund benefit, and no benefit has been paid under the plan with respect to the individual, other than a refund benefit, the individual’s pension credit under the plan for the year with respect to the employer is nil. For the purposes of subsection (1) and Part LXXXV and subsection 147.1(9) of the Act, and subject to subsections (4.1) and (8) and 8304(2), an individual’s pension credit for a calendar year with respect to an employer under a money purchase provision of a registered pension plan is the total of all amounts each of which is a contribution (other than an excluded contribution, a contribution described in paragraph 8308(6)(e) or (g) or a contribution made under subsection 147.1(20) of the Act) made under the provision in the year by the individual, except to the extent that the contribution was not made in connection with the individual’s employment with the employer and is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, or the employer with respect to the individual, or such portion of an amount allocated in the year to the individual as is attributable to forfeited amounts under the provision or earnings of the plan in respect thereof, property transferred to the provision in respect of the surplus under another money purchase provision of the plan or under a money purchase provision of another registered pension plan, except to the extent that that portion is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, paid to the individual in the year, or where the year is 1990, attributable to amounts forfeited before 1990 or earnings of the plan in respect thereof, except that the individual’s pension credit is nil where the year is before 1990, and, for the purposes of this subsection, the plan administrator shall determine the portion of a contribution made by an individual or an amount allocated to the individual that is to be included in determining the individual’s pension credit with respect to each employer. Where, under the terms of a money purchase provision of a pension plan, the method for allocating contributions is such that contributions made by an employer with respect to a particular individual may be allocated to another individual, and the Minister has, on the written application of the administrator of the plan, approved in writing a method for determining pension credits under the provision that, for each individual, takes into account amounts allocated to the individual, each pension credit under the provision is the amount determined in accordance with the method approved by the Minister. For the purposes of this Part and Part LXXXV and subsection 147.1(9) of the Act, an individual’s pension credit for a calendar year with respect to an employer under a defined benefit provision of a registered pension plan that is, in the year, a specified multi-employer plan is the aggregate of the aggregate of all amounts each of which is a contribution (other than an excluded contribution) made under the provision by the individual in the year, in respect of the year, or a plan year ending in the year (other than in respect of such portion of a plan year as is before 1990), or in January of the year (other than in January 1990) in respect of the immediately preceding calendar year, except to the extent that the contribution was not made in connection with the individual’s employment with the employer and is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, the aggregate of all amounts each of which is a contribution made in the year by the employer in respect of the provision, to the extent that the contribution may reasonably be considered to be determined by reference to the number of hours worked by the individual or some other measure that is specific to the individual, and is the amount determined under paragraph (b) for the purpose of computing the individual’s pension credit, is the aggregate of all amounts each of which is the amount determined under paragraph (b) for the purpose of computing the pension credit of an individual for the year with respect to the employer under the provision, and is the aggregate of all amounts each of which is a contribution made in the year by the employer in respect of the provision, except that, where the year is before 1990, the individual’s pension credit is nil. Subject to subsections (7), (8) and (10) and sections 8304 and 8308, for the purposes of this Part and Part LXXXV and subsection 147.1(9) of the Act, an individual’s pension credit for a calendar year with respect to an employer under a defined benefit provision of a particular registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) is if the year is after 1989, the amount determined by the formula is 9 times the individual’s benefit entitlement under the provision with respect to the employer and the year, and is the amount, if any, by which the PA offset for the year exceeds the total of all amounts each of which is the value of B determined under this paragraph for the purpose of computing the individual’s pension credit for the year (i)with respect to the employer under any other defined benefit provision of a registered pension plan, with respect to the employer under any other defined benefit provision of a registered pension plan, (ii)with respect to any other employer who at any time in the year does not deal at arm’s length with the employer, under a defined benefit provision of a registered pension plan, or with respect to any other employer who at any time in the year does not deal at arm’s length with the employer, under a defined benefit provision of a registered pension plan, or (iii)with respect to any other employer under a defined benefit provision of the particular plan; and with respect to any other employer under a defined benefit provision of the particular plan; and if the year is before 1990, nil. Where a registered pension plan is a multi-employer plan (other than a specified multi-employer plan) in a calendar year, the following rules apply, except to the extent that the Minister has waived in writing their application in respect of the plan, for the purpose of determining the pension credit of an individual for the year under a defined benefit provision of the plan: where the individual is employed in the year by more than one participating employer, the pension credit of the individual for the year under the provision with respect to a particular employer shall be determined as if the individual were not employed by any other participating employer; the description of B in paragraph (6)(a) shall be read as is the PA offset for the year, (i)where the member rendered services on a full-time basis throughout the year to the employer, one, and where the member rendered services on a full-time basis throughout the year to the employer, one, and (ii)in any other case, the fraction (not greater than one) that measures the services that, for the purpose of determining the member’s lifetime retirement benefits under the provision, the member is treated as having rendered in the year to the employer, expressed as a proportion of the services that would have been rendered by the member in the year to the employer if the member had rendered services to the employer on a full-time basis throughout the year, and in any other case, the fraction (not greater than one) that measures the services that, for the purpose of determining the member’s lifetime retirement benefits under the provision, the member is treated as having rendered in the year to the employer, expressed as a proportion of the services that would have been rendered by the member in the year to the employer if the member had rendered services to the employer on a full-time basis throughout the year, and is the total of all amounts each of which is the value of B determined under this paragraph for the purpose of computing the individual’s pension credit for the year with respect to the employer under any other defined benefit provision of the plan; and”; where a period in the year is a period of reduced services of the individual, the pension credit of the individual for the year under the provision with respect to each participating employer shall be determined as the aggregate of the pension credit that would be determined if no benefits (other than benefits attributable to services rendered by the individual) had accrued to the individual in respect of periods of reduced services, and the pension credit that would be determined if the only benefits that had accrued to the individual were benefits in respect of periods of reduced services, other than benefits attributable to services rendered by the individual during such periods; and subsection (10) shall not apply. For the purposes of this Part and Part LXXXV and subsection 147.1(9) of the Act, and subject to subsection (9), where an individual ceased in a calendar year after 1989 and before 1997 to be employed by an employer who participated in a registered pension plan for the benefit of the individual, as a consequence of the termination of employment, the individual ceased in the year to have any rights to benefits (other than a right to a refund benefit) under a benefit provision of the plan, the individual was not entitled to benefits under the provision at the end of the year, or was entitled only to a refund benefit, and no benefit has been paid under the provision with respect to the individual, other than a refund benefit, the individual’s pension credit under the provision for the year with respect to the employer is where the provision is a money purchase provision, the total of all amounts each of which is a contribution (other than an additional voluntary contribution made by the individual in 1990, an excluded contribution or a contribution described in paragraph 8308(6)(e)) made under the provision in the year by the individual, except to the extent that the contribution was not made in connection with the individual’s employment with the employer and is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, and where the provision is a defined benefit provision, the lesser of the pension credit that would be determined if this subsection were not applicable, and the aggregate of all amounts each of which is a contribution (other than an excluded contribution) made under the provision by the individual in, and in respect of, the year, except to the extent that the contribution was not made in connection with the individual’s employment with the employer and is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan. Subsection (8) is not applicable in respect of a registered pension plan that is a multi-employer plan in a calendar year, except where the plan is not a specified multi-employer plan in the year; if the plan contains a defined benefit provision, the Minister has waived in writing the application of paragraph (7)(b) in respect of the plan for the year; and the Minister has approved in writing the application of subsection (8) in respect of the plan for the year.

throughout the period beginning on January 1, 1981 and ending on December 31 of a particular calendar year after 1989 and before 2000, there has been subtracted, in determining the amount of lifetime retirement benefits under a defined benefit provision of a registered pension plan (other than a specified multi-employer plan), the amount of lifetime retirement benefits under a money purchase provision of the plan or of another registered pension plan, lifetime retirement benefits under the defined benefit provision are determined, at the end of the particular year, in substantially the same manner as they were determined at the end of 1989, and for each individual and each calendar year before 1990, the amount of employer contributions made under the money purchase provision for the year with respect to the individual did not exceed $3,500, the pension credit of an individual for the particular year with respect to an employer under the defined benefit provision is equal to the amount, if any, by which the amount that would, but for this subsection, be the individual’s pension credit $2,500, and is the balance in the individual’s account under the money purchase provision at the end of 1989, is the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period ending before 1990 that is pensionable service of the individual under the defined benefit provision and that is not part of a longer period ending before 1990 that is pensionable service of the individual under the provision, and is the amount that would be the individual’s pension credit for 1989 with respect to the employer under the defined benefit provision if subsection (6) were read without reference to the words “if the year is after 1989” in paragraph (6)(a) and without reference to paragraph (6)(b). Subject to paragraph (12)(b), for the purposes of this Part, a contribution made by an employer in the first two months of a calendar year to a deferred profit sharing plan, in respect of a money purchase provision of a registered pension plan, or in respect of a defined benefit provision of a registered pension plan that was, in the immediately preceding calendar year, a specified multi-employer plan, shall be deemed to have been made by the employer at the end of the immediately preceding calendar year and not to have been made in the year, to the extent that the contribution can reasonably be considered to relate to a preceding calendar year. For the purposes of this Part and Part LXXXIV, where a trade union or association of employers (in this subsection and subsections (13) and (14) referred to as the “contributing entity”) makes contributions to a registered pension plan, such portion of a payment made to the contributing entity by an employer or individual as may reasonably be considered to relate to the plan (determined in accordance with subsection (13), where that subsection is applicable) shall be deemed to be a contribution made to the plan by the employer or individual, as the case may be, at the time the payment was made to the contributing entity; and subsection (11) shall not apply in respect of a contribution deemed by paragraph (a) to have been made to the plan. For the purposes of subsection (12), where employers or individuals make payments in a calendar year to a contributing entity to enable the contributing entity to make contributions to a registered pension plan and the payments are not made solely for the purpose of being contributed to the plan, the contributing entity shall determine, in a manner that is reasonable in the circumstances, the portion of each payment that relates to the plan; make the determination in such a manner that all contributions made by the contributing entity to the plan, other than contributions made by the contributing entity as an employer or former employer of members of the plan, are considered to be funded by payments made to the contributing entity by employers or individuals; in the case of payments remitted to the contributing entity by an employer, notify the employer in writing, by January 31 of the immediately following calendar year, of the portion, or of the method for determining the portion, of each such payment that relates to the plan; and in the case of payments remitted to the contributing entity by an individual, notify the administrator of the plan in writing, by January 31 of the immediately following calendar year, of the total amount of payments made in the year by the individual that relate to the plan. Where a contributing entity does not comply with the requirements of subsection (13) as they apply in respect of payments made to the contributing entity in a calendar year to enable the contributing entity to make contributions to a registered pension plan, the plan becomes, on February 1 of the immediately following calendar year, a revocable plan; and the Minister may make any determinations referred to in subsection (13) that the contributing entity failed to make, or failed to make in accordance with that subsection. For the purposes of subparagraph (b)(ii) of the description of A in subsection (2), paragraph (2.1)(b) and subparagraph (4)(b)(iv), an amount transferred for the benefit of an individual from a registered pension plan or a deferred profit sharing plan directly to a registered pension plan, a registered retirement savings plan, a registered retirement income fund or a deferred profit sharing plan is deemed to be an amount that was not paid to the individual. Except as otherwise expressly provided in this Part, each pension credit of an individual for a calendar year shall be determined without regard to any transactions, events or circumstances that occur subsequent to the year. For the purposes of subsection 8301(6), the benefit entitlement of an individual under a defined benefit provision of a registered pension plan in respect of a calendar year and an employer is the portion of the individual’s benefit accrual under the provision in respect of the year that can reasonably be considered to be attributable to the individual’s employment with that employer. For the purposes of subsection (1), and subject to subsections (6), (8) and (9), the benefit accrual of an individual under a defined benefit provision of a registered pension plan in respect of a calendar year is the amount computed in accordance with the following rules: determine the portion of the individual’s normalized pension under the provision at the end of the year that can reasonably be considered to have accrued in respect of the year; where the year is after 1989 and before 1995, determine the lesser of the amount determined under paragraph (a) and for 1990, $1,277.78, for 1991 and for 1992, $1,388.89, for 1993, $1,500.00, and for 1994, $1,611.11; and where, in determining the amount of lifetime retirement benefits payable to the individual under the provision, there is deducted from the amount of those benefits that would otherwise be payable the amount of lifetime retirement benefits payable to the individual under a money purchase provision of a registered pension plan or the amount of a lifetime annuity payable to the individual under a deferred profit sharing plan, reduce the amount that would otherwise be determined under this subsection by 1/9 of the total of all amounts each of which is the pension credit of the individual for the year under such a money purchase provision or deferred profit sharing plan. For the purposes of paragraph (2)(a), and subject to subsection (11), the normalized pension of an individual under a defined benefit provision of a registered pension plan at the end of a particular calendar year is the amount (expressed on an annualized basis) of lifetime retirement benefits that would be payable under the provision to the individual immediately after the end of the particular year if where lifetime retirement benefits have not commenced to be paid under the provision to the individual before the end of the particular year, they commenced to be paid immediately after the end of the year; where the individual had not attained 65 years of age before the time at which lifetime retirement benefits commenced to be paid (or are assumed by reason of paragraph (a) to have commenced to be paid) to the individual, the individual attained that age at that time; all benefits to which the individual is entitled under the provision were fully vested; where the amount of the individual’s lifetime retirement benefits would otherwise be determined with a reduction computed by reference to the individual’s age, duration of service or both, or with any other similar reduction, no such reduction were applied; no reduction in the amount of the individual’s lifetime retirement benefits were applied in respect of benefits described in any of clauses 8503(2)(a)(vi)(A) to (C); no adjustment that is permissible under subparagraph 8503(2)(a)(ix) were made to the amount of the individual’s lifetime retirement benefits; where the amount of the individual’s lifetime retirement benefits depends on the remuneration received by the individual in a calendar year (in this paragraph referred to as the “other year”) other than the particular year, the remuneration received by the individual in the other year were determined in accordance with the following rules: where the individual was remunerated for both the particular year and the other year as a person who rendered services on a full-time basis throughout each of the years, the remuneration received by the individual in the other year is identical to the remuneration received by the individual in the particular year, where subparagraph (i) is not applicable and the individual rendered services in the particular year, the remuneration received by the individual in the other year is the remuneration that the individual would have received in the other year (or a reasonable estimate thereof determined by a method acceptable to the Minister) had the individual’s rate of remuneration in the other year been the same as the individual’s rate of remuneration in the particular year, and where subparagraph (i) is not applicable and the individual did not render services in the particular year, the remuneration received by the individual in the other year is the remuneration that the individual would have received in the other year (or a reasonable estimate thereof determined by a method acceptable to the Minister) had the individual’s rate of remuneration in the other year been the amount that it is reasonable to consider would have been the individual’s rate of remuneration in the particular year had the individual rendered services in the particular year; where the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration and all or a portion of the remuneration received by the individual in the particular year is treated under the provision as if it were remuneration received in a calendar year preceding the particular year for services rendered in that preceding year, that remuneration were remuneration for services rendered in the particular year; where the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration and the particular year is after 1989 and before 1995, benefits, to the extent that they can reasonably be considered to be in respect of the following range of annual remuneration, were excluded: where the particular year is 1990, the range from $63,889 to $86,111, where the particular year is 1991 or 1992, the range from $69,444 to $86,111, where the particular year is 1993, the range from $75,000 to $86,111, and where the particular year is 1994, the range from $80,556 to $86,111; the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration, the formula for determining the amount of the individual’s lifetime retirement benefits includes an adjustment to the individual’s remuneration for one or more calendar years, the adjustment to the individual’s remuneration for a year (in this paragraph referred to as the “specified year”) consists of multiplying the individual’s remuneration for the specified year by a factor that does not exceed the ratio of the average wage for the year in which the amount of the individual’s lifetime retirement benefits is required to be determined to the average wage for the specified year (or a substantially similar measure of the change in the wage measure), and the adjustment may reasonably be considered to be made to increase the individual’s remuneration for the specified year to reflect, in whole or in part, increases in average wages and salaries from that year to the year in which the amount of the individual’s lifetime retirement benefits is required to be determined, the formula did not include the adjustment to the individual’s remuneration for the specified year; where the amount of the individual’s lifetime retirement benefits depends on the Year’s Maximum Pensionable Earnings for calendar years other than the particular year, the Year’s Maximum Pensionable Earnings for each such year were equal to the Year’s Maximum Pensionable Earnings for the particular year; where the amount of the individual’s lifetime retirement benefits depends on the Year’s Additional Maximum Pensionable Earnings for calendar years other than the particular year, the Year’s Additional Maximum Pensionable Earnings for each such year were equal to the Year’s Additional Maximum Pensionable Earnings for the particular year; if the amount of the individual’s lifetime retirement benefits depends solely on the actual amount of the pension (in this paragraph referred to as the “statutory pension”) payable to the individual under paragraph 46(1)(a) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to 25 per cent of the lesser of the Year’s Maximum Pensionable Earnings for the particular year and in the case of an individual who renders services throughout the particular year on a full-time basis to employers who participate in the plan, the aggregate of all amounts each of which is the individual’s remuneration for the particular year from such an employer, and in any other case, the amount that it is reasonable to consider would be determined under clause (A) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, or at the option of the plan administrator, any other amount determined in accordance with a method for estimating the statutory pension that can be expected to result in amounts substantially similar to amounts determined under subparagraph (i); where the amount of the individual’s lifetime retirement benefits depends on the actual amount of the pension (in this paragraph referred to as the “statutory pension”) payable to the individual under paragraphs 46(1)(a) to (c) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to (A)for 2018 and preceding years, 0.25, for 2018 and preceding years, 0.25, (B)for 2019, 0.2625, for 2019, 0.2625, (C)for 2020, 0.275, for 2020, 0.275, (D)for 2021, 0.29165, for 2021, 0.29165, (E)for 2022, 0.3125, and for 2022, 0.3125, and (F)for 2023 and subsequent years, 1/3, and for 2023 and subsequent years, 1/3, and (A)for each particular year prior to 2024, the lesser of the Year’s Maximum Pensionable Earnings for the year and,(I)in the case of an individual who renders services throughout the particular year on a full-time basis to employers who participate in the plan, the aggregate of all amounts each of which is the individual’s remuneration for the particular year from such an employer, and(II)in any other case, the amount that it is reasonable to consider would be determined under subclause (I) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, or for each particular year prior to 2024, the lesser of the Year’s Maximum Pensionable Earnings for the year and, (I)in the case of an individual who renders services throughout the particular year on a full-time basis to employers who participate in the plan, the aggregate of all amounts each of which is the individual’s remuneration for the particular year from such an employer, and (II)in any other case, the amount that it is reasonable to consider would be determined under subclause (I) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, or in any other case, the amount that it is reasonable to consider would be determined under subclause (I) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, or (B)for each particular year after 2023, the lesser of the Year’s Additional Maximum Pensionable Earnings for the year and the amount determined under subclause (A)(I) or (II), as the case may be, or for each particular year after 2023, the lesser of the Year’s Additional Maximum Pensionable Earnings for the year and the amount determined under subclause (A)(I) or (II), as the case may be, or where the amount of the individual’s lifetime retirement benefits depends on a pension (in this paragraph referred to as the “statutory pension”) payable to the individual under Part I of the Old Age Security Act, the amount of statutory pension payable for each calendar year were equal to the aggregate of all amounts each of which is the amount of the full monthly pension payable under Part I of that Act for a month in the particular year other than an amount described in subsection 7(5) of that Act; except as otherwise expressly permitted in writing by the Minister, where the amount of the individual’s lifetime retirement benefits depends on the amount of benefits (other than public pension benefits or similar benefits of a country other than Canada) payable under another benefit provision of a pension plan or under a deferred profit sharing plan, the amounts of the other benefits were such as to maximize the amount of the individual’s lifetime retirement benefits; where the individual’s lifetime retirement benefits would otherwise include benefits that the plan is required to provide by reason of a designated provision of the law of Canada or a province (within the meaning assigned by section 8513), or that the plan would be required to provide if each such provision were applicable to the plan with respect to all its members, such benefits were not included; the individual attained 65 years of age before lifetime retirement benefits commenced to be paid (or are assumed by reason of paragraph (a) to have commenced to be paid) to the individual, and an adjustment is made in determining the amount of those benefits for the purpose of offsetting, in whole or in part, the decrease in the value of lifetime retirement benefits that would otherwise result by reason of the deferral of those benefits after the individual attained 65 years of age, that adjustment were not made, except to the extent that the adjustment exceeds the adjustment that would be made on an actuarially equivalent basis; except as otherwise provided by subsection (4), where the amount of the individual’s lifetime retirement benefits depends on the form of benefits provided with respect to the individual under the provision (whether or not at the option of the individual), including the benefits to be provided after the death of the individual, the amount of retirement benefits, other than lifetime retirement benefits, provided to the individual, or the extent to which the lifetime retirement benefits will be adjusted to reflect changes in the cost of living, or circumstances that are relevant in determining the form of benefits, the form of benefits and the circumstances were such as to maximize the amount of the individual’s lifetime retirement benefits on commencement of payment; where the amount of the individual’s lifetime retirement benefits depends on whether the individual is totally and permanently disabled at the time at which retirement benefits commence to be paid to the individual, the individual were not so disabled at that time; and where lifetime retirement benefits have commenced to be paid under the provision to the individual before the end of the particular year, benefits payable as a consequence of cost-of-living adjustments described in paragraph 8303(5)(k) were disregarded. Where the terms of a defined benefit provision of a registered pension plan permit a member to elect to receive additional lifetime retirement benefits in lieu of benefits that would, in the absence of the election, be payable after the death of the member if the member dies after retirement benefits under the provision commence to be paid to the member, paragraph (3)(o) applies as if the following elections were not available to the member: an election to receive additional lifetime retirement benefits, not exceeding additional benefits determined on an actuarially equivalent basis, in lieu of all or any portion of a guarantee that retirement benefits will be paid for a minimum period of 10 years or less, and an election to receive additional lifetime retirement benefits in lieu of retirement benefits that would otherwise be payable to an individual who is a spouse or common-law partner or former spouse or common-law partner of the member for a period beginning after the death of the member and ending with the death of the individual, where the election may be made only if the life expectancy of the individual is significantly shorter than normal and has been so certified in writing by a medical doctor or a nurse practitioner licensed to practise under the laws of a province or of the place where the individual resides, and the additional benefits do not exceed additional benefits determined on an actuarially equivalent basis and on the assumption that the individual has a normal life expectancy. For the purposes of subsection (3), where an individual ceased in a calendar year to be entitled to all or part of the lifetime retirement benefits provided to the individual under a defined benefit provision of a registered pension plan, the normalized pension of the individual under the provision at the end of the year shall be determined on the assumption that the individual continued to be entitled to those benefits immediately after the end of the year. Where the amount of lifetime retirement benefits provided under a particular defined benefit provision of a registered pension plan to a member of the plan depends on the amount of lifetime retirement benefits provided to the member under one or more other defined benefit provisions of registered pension plans, the benefit accrual of the member under the particular provision in respect of a calendar year is the amount, if any, by which the amount that would, but for this subsection, be the benefit accrual of the member under the particular provision in respect of the year if the benefits provided under the other provisions were provided under the particular provision the amount that would be the benefit accrual of the member under the other provisions in respect of the year if the other provisions were a single provision. Where the amount of an individual’s lifetime retirement benefits under a defined benefit provision (in this subsection referred to as the “supplemental provision”) of a registered pension plan depends on the amount of benefits payable under a defined benefit provision of a specified multi-employer plan, the defined benefit provision of the specified multi-employer plan shall be deemed to be a money purchase provision for the purpose of determining the benefit accruals of the individual under the supplemental provision. on March 27, 1988 lifetime retirement benefits under a defined benefit provision of a pension plan were determined as the greater of benefits computed on a career average basis and benefits computed on a final or best average earnings basis, the method for determining lifetime retirement benefits under the provision was not amended after March 27, 1988 and before the end of a particular calendar year, and it was reasonable to expect, on January 1, 1990, that the lifetime retirement benefits to be paid under the provision to at least 75 per cent of the members of the plan on that date (other than members to whom benefits do not accrue under the provision after that date) will be determined on a final or best average earnings basis, at the option of the plan administrator, benefit accruals under the provision in respect of the particular year may, where the particular year is before 1992, be determined without regard to the career average formula. Subject to subsection (6), where the amount of lifetime retirement benefits provided under a defined benefit provision of a registered pension plan to a member of the plan is determined, in part, by multiplying the member’s remuneration (or a function of the member’s remuneration) by one or more benefit accrual rates, and the largest benefit accrual rate that may be applicable is greater than 2 per cent, the member’s benefit accrual under the provision in respect of 1990 or 1991 is the lesser of the member’s benefit accrual otherwise determined, and 2 per cent of the aggregate of all amounts each of which is the amount that would, if the definition compensation in subsection 147.1(1) of the Act were read without reference to subparagraphs (a)(iii) and (iv) and paragraphs (b) and (c) thereof, be the member’s compensation for the year from an employer who participated in the plan in the year for the benefit of the member. For the purposes of paragraph (9)(d), where a member of a registered pension plan is provided with benefits under a defined benefit provision of the plan in respect of a period in 1990 or 1991 throughout which, by reason of disability, leave of absence, lay-off or other circumstance, the member rendered no services, or rendered a reduced level of services, to employers who participate in the plan, and throughout which the member received no remuneration, or a reduced rate of remuneration, the member’s compensation shall be determined on the assumption that the member received remuneration for the period equal to the amount of remuneration that it is reasonable to consider the member would have received if the member had rendered services throughout the period on a regular basis (having regard to the services rendered by the member before the period) and the member’s rate of remuneration had been commensurate with the member’s rate of remuneration when the member did render services on a regular basis. Where the terms of a defined benefit provision of a registered pension plan can reasonably be considered to have been established or modified so that a pension credit of an individual for a calendar year under the provision would, but for this subsection, be reduced as a consequence of the application of paragraph (3)(g), that paragraph shall not apply in determining the individual’s normalized pension under the provision in respect of the year. For the purpose of subsection 248(1) of the Act, past service pension adjustment of an individual for a calendar year in respect of an employer means the total of the accumulated past service pension adjustment (in this Part referred to as “accumulated PSPA”) of the individual for the year with respect to the employer, determined as of the end of the year, the total of all amounts each of which is the foreign plan PSPA (determined under subsection 8308.1(5) or (6)) of the individual with respect to the employer associated with a modification of benefits in the year under a foreign plan (as defined in subsection 8308.1(1)), and the total of all amounts each of which is the specified retirement arrangement PSPA (determined under subsection 8308.3(4) or (5)) of the individual with respect to the employer associated with a modification of benefits in the year under a specified retirement arrangement (as defined in subsection 8308.3(1)). For the purposes of this Part, the accumulated PSPA of an individual for a calendar year with respect to an employer, determined as of any time, is the total of all amounts each of which is the individual’s provisional past service pension adjustment (in this Part referred to as “provisional PSPA”) with respect to the employer that is associated with a past service event (other than a certifiable past service event with respect to the individual) that occurred in the preceding year; or a certifiable past service event with respect to the individual where the Minister has, in the year and before that time, issued a certification for the purposes of subsection 147.1(10) of the Act in respect of the event and the individual. a past service event that occurred in 1991 (including, for greater certainty, a past service event that is deemed by paragraph 8304(3)(b) to have occurred immediately after the end of 1990) shall be deemed to have occurred on January 1, 1992 and not to have occurred in 1991; and a certification issued by the Minister in 1991 shall be deemed to have been issued on January 1, 1992 and not to have been issued in 1991. Subject to subsections (8) and (10) and sections 8304 and 8308, for the purposes of this Part, the provisional PSPA of an individual with respect to an employer that is associated with a past service event that occurs at a particular time in a particular calendar year is the amount determined by the formula is the aggregate of all amounts each of which is, in respect of a calendar year after 1989 and before the particular year, the amount that would have been the individual’s pension credit for the year with respect to the employer under a defined benefit provision of a registered pension plan (other than a plan that is, at the particular time, a specified multi-employer plan) had the individual’s benefit entitlement under the provision in respect of the year and the employer been equal to the individual’s redetermined benefit entitlement (determined as of the particular time) under the provision in respect of the year and the employer, is the aggregate that would be determined for A if the reference in the description of A to “determined as of the particular time” were read as a reference to “determined as of the time immediately before the particular time”, is such portion of the amount of the individual’s qualifying transfers made in connection with the past service event as is not deducted in computing the provisional PSPA of the individual with respect to any other employer, and is the total of all amounts each of which is an excess money purchase transfer in relation to the individual and the past service event that is not included in determining any other provisional PSPA of the individual that is associated with the past service event. For the purposes of the description of A in subsection (3), an individual’s redetermined benefit entitlement under a defined benefit provision of a registered pension plan in respect of a calendar year and an employer, determined as of a particular time, is the amount that would be determined under section 8302 to be the individual’s benefit entitlement under the provision in respect of the year and the employer if, for the purpose of computing the benefit accrual of the individual in respect of the year under the provision and, where subsection 8302(6) is applicable, under any other defined benefit provision, the amount determined under paragraph 8302(2)(a) in respect of a specific provision were equal to that portion of the individual’s normalized pension (computed in accordance with subsection (5)) under the specific provision at the particular time, determined with reference to the year, as may reasonably be considered to have accrued in respect of the year. For the purposes of subsection (4), the normalized pension of an individual under a defined benefit provision of a registered pension plan at a particular time, determined with reference to a calendar year (in this subsection referred to as the “pension credit year”), is the amount (expressed on an annualized basis) of lifetime retirement benefits, other than excluded benefits, that would be payable to the individual under the provision immediately after the particular time if where lifetime retirement benefits have not commenced to be paid under the provision to the individual before the particular time, they commenced to be paid immediately after the particular time, where the individual had not attained 65 years of age before the time at which lifetime retirement benefits commenced to be paid (or are assumed by reason of paragraph (a) to have commenced to be paid) to the individual, the individual attained that age at that time, the amount of the individual’s lifetime retirement benefits were determined with regard to all past service events occurring at or before the particular time and without regard to past service events occurring after the particular time, paragraphs 8302(3)(c) to (p) (other than paragraph 8302(3)(g), where subsection 8302(11) was applicable in respect of the pension credit year and the provision or would have been applicable had all benefits provided as a consequence of past service events become provided in the pension credit year) were applied for the purpose of determining the amount of the individual’s lifetime retirement benefits and, for the purpose of those paragraphs, the pension credit year were the particular year referred to in those paragraphs, and the amount of the individual’s lifetime retirement benefits under the provision depends on the individual’s remuneration, and all or part of the individual’s lifetime retirement benefits in respect of the pension credit year became provided as a consequence of a past service event, pursuant to terms of the provision that enable benefits to be provided to members of the plan in respect of periods of employment with employers who have not participated under the provision, the remuneration received by the individual from each such employer in respect of a period of employment in respect of which the individual is provided with benefits under the provision were remuneration received from an employer who has participated under the provision for the benefit of the individual, and, for the purposes of this subsection, the following benefits are excluded benefits: where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual requires the calculation of an amount that is the product of a fixed rate and the duration of all or part of the individual’s pensionable service, benefits payable as a direct consequence of an increase in the value of the fixed rate at any time (in this paragraph referred to as the “time of increase”) after the pension credit year, other than benefits provided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual, or that would not have become provided had the value of the fixed rate been increased to the amount determined by the formula is the value of the fixed rate immediately before the time of the increase, is the average wage for the calendar year that includes the time of the increase, and (A)if the value of the fixed rate was last increased or established in the calendar year that includes the time of the increase, the average wage for that year, or if the value of the fixed rate was last increased or established in the calendar year that includes the time of the increase, the average wage for that year, or (B)otherwise, the average wage for the year immediately preceding the calendar year that includes the time of increase, otherwise, the average wage for the year immediately preceding the calendar year that includes the time of increase, where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual includes a limit that is the product of the duration of the individual’s pensionable service and the lesser of a percentage of the individual’s remuneration and a fixed rate, and the value of the fixed rate is increased after the pension credit year to an amount equal to the defined benefit limit for the earlier of the year in which the increase occurs and the year in which retirement benefits under the provision commenced to be paid to the individual, the portion of the benefits payable as a direct consequence of the increase that would not have become provided had the value of the fixed rate been set at the defined benefit limit for the pension credit year, if the value of the fixed rate was, immediately before the increase, equal to the defined benefit limit for the year in which the value of the fixed rate was last established, and where the year in which the value of the fixed rate was last established precedes the year immediately preceding the year in which the increase occurs, the Minister has approved in writing the application of this paragraph in respect of the past service event, there are more than nine active members (within the meaning assigned by paragraph 8306(4)(a)) under the provision, and the plan is not a designated plan, where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual includes a limit that is the product of the duration of the individual’s pensionable service and the lesser of a percentage of the individual’s remuneration and a fixed rate the value of which can reasonably be considered to be fixed each year as a portion of the defined benefit limit for that year, benefits payable as a direct consequence of an increase, after the pension credit year, in the value of the fixed rate to reflect the defined benefit limit for the year in which the increase occurs, if except as otherwise expressly permitted by the Minister, it is reasonable to consider that, for years after 1989, the ratio of the fixed rate to the defined benefit limit has been, and will remain, constant, the benefits are not provided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual, the Minister has approved in writing the application of this paragraph in respect of the past service event, and the provision is a flat benefit provision, at the particular time, the amount (expressed on an annual basis) of lifetime retirement benefits provided under the provision to each member in respect of pensionable service in each calendar year does not exceed 40 per cent of the defined benefit limit for the year that includes the particular time, the conditions in subsection 8306(2) are satisfied in respect of the provision and the past service event in connection with which the normalized pension is being calculated, and only one fixed rate is applicable in determining the amount of the individual’s lifetime retirement benefits, benefits provided as a direct consequence of an increase in the value of the fixed rate at any time (in this paragraph referred to as the “time of increase”) after the pension credit year, other than benefits that would not have become provided had the value of the fixed rate been increased to the greater of the greatest of all amounts each of which is an amount determined by the formula is a value of the fixed rate in the period beginning on January 1, 1984 and ending immediately before the time of increase, is the average wage for the calendar year that includes the time of increase, and is the average wage for the later of 1984 and the calendar year in which the value of the fixed rate used for A was first effective, and is the value of the fixed rate immediately before the time of increase, is the amount by which the value of the fixed rate used for D would have to be increased to provide an increase in the individual’s annual lifetime retirement benefits equal to $18 for each year of pensionable service, and is the duration (measured in years, including any fraction of a year) of the period beginning on the later of January 1, 1984 and the day on which the value of the fixed rate used for D was first effective and ending on the day that includes the time of increase, where the provision is a flat benefit provision, benefits provided as a direct consequence of an increase at any time (in this paragraph referred to as the “time of increase”) after the pension credit year in the value of a fixed rate under the provision where the value of the fixed rate was increased pursuant to an agreement made before 1992, and at the time the agreement was made, it was reasonable to expect that the percentage increase in the value of the fixed rate would approximate or be less than the percentage increase in the average wage from the calendar year in which the value of the fixed rate was last increased before the time of increase (or, if the increase is the first increase, the calendar year in which the initial value of the fixed rate was first applicable) to the calendar year that includes the time of increase, where the provision is a flat benefit provision under which the amount of each member’s retirement benefits depends on the member’s job category or rate of pay in such a manner that the ratio of the amount of lifetime retirement benefits to remuneration does not significantly increase as remuneration increases, benefits provided as a direct consequence of a change, after the pension credit year, in the individual’s job category or rate of pay, the individual’s pensionable service under the provision ends before the particular time, the individual’s lifetime retirement benefits under the provision have been adjusted by a cost-of-living or similar adjustment in respect of the period (in this paragraph referred to as the “deferral period”) beginning at the latest of the time the individual’s pensionable service under the provision ends, if the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration, the end of the most recent period for which the individual received remuneration that is taken into account in determining the individual’s lifetime retirement benefits, if the amount of the individual’s lifetime retirement benefits depends on the individual’s remuneration and the remuneration is adjusted as described in paragraph 8302(3)(h), the end of the period in respect of which the adjustment is made, and if the formula for determining the amount of the individual’s lifetime retirement benefits requires the calculation of an amount that is the product of a fixed rate and the duration of all or part of the individual’s pensionable service (or other measure of services rendered by the individual), the time as of which the value of the fixed rate applicable with respect to the individual was established, and ending at the earlier of the particular time and the time, if any, at which lifetime retirement benefits commenced to be paid under the provision to the individual, and the adjustment is warranted, having regard to all prior such adjustments, by the increase in the Consumer Price Index or in the wage measure from the commencement of the deferral period to the time the adjustment was made, benefits payable as a consequence of the adjustment, benefits payable as a consequence of a cost-of-living adjustment made after the time lifetime retirement benefits commenced to be paid under the provision to the individual, where the adjustment is warranted, having regard to all prior such adjustments, by the increase in the Consumer Price Index from that time to the time the adjustment was made, or is a periodic adjustment described in subparagraph 8503(2)(a)(ii), and such portion of the individual’s lifetime retirement benefits as would not otherwise be excluded in determining the individual’s normalized pension, may reasonably be considered to be attributable to cost-of-living adjustments or to adjustments made by reason of increases in a general measure of salaries and wages (other than increases in such a measure after the time lifetime retirement benefits commenced to be paid under the provision to the individual), and is acceptable to the Minister. For the purposes of subsections (3) and 8304(5), (7) and (10), and subject to subsection (6.1) and paragraph 8304(2)(h), the amount of an individual’s qualifying transfers made in connection with a past service event is the total of all amounts each of which is the portion of an amount transferred to a registered pension plan in accordance with any of subsections 146(16), 147(19) and 147.3(2), (5) and (7) of the Act, or from a specified multi-employer plan in accordance with subsection 147.3(3) of the Act that is transferred to fund benefits provided to the individual as a consequence of the past service event; or the amount of any property held in connection with a benefit provision of a registered pension plan that is made available to fund benefits provided to the individual under another benefit provision of the plan as a consequence of the past service event, where the transaction by which the property is made so available is such that, if the benefit provisions were in separate registered pension plans, the transaction would constitute a transfer of property from one plan to the other in accordance with any of subsections 147.3(2), (5) and (7) of the Act. The amount of an individual’s qualifying transfers made in connection with a past service event shall be determined under subsection (6) without regard to the portion, if any, of amounts transferred or property made available, as the case may be, that can reasonably be considered to have been transferred or made available to fund benefits provided in respect of periods before 1990. an individual has given an irrevocable direction that an amount be paid to a registered pension plan, or property held in connection with a benefit provision of a registered pension plan be made available to fund benefits provided to the individual under another benefit provision of the plan in the event that the Minister issues a certification for the purposes of subsection 147.1(10) of the Act with respect to the individual and to benefits provided under a defined benefit provision of the plan as a consequence of a past service event, and the amount is to be paid or the property is to be made available, as the case may be, where subparagraph (ii) does not apply, on or before the day that is 90 days after the day on which the certification is received by the administrator of the plan, and where the plan was deemed by paragraph 147.1(3)(a) of the Act to be a registered pension plan at the time the direction was given, on or before the day that is 90 days after the later of the day on which the certification is received by the administrator of the plan, and the day on which the administrator of the plan receives written notice from the Minister of the registration of the plan for the purposes of the Act, the amount or property, as the case may be, is deemed, for the purpose of subsection (6), to have been paid or made available, as the case may be, at the time the direction was given.

Where lifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan (other than a specified multi-employer plan) in respect of a period (in this subsection referred to as the “past service period”) that was previously pensionable service of the individual under a particular defined benefit provision of a registered pension plan (other than a specified multi-employer plan), ceased to be pensionable service of the individual under the particular provision as a result of the payment of a single amount, all or part of which was transferred on behalf of the individual from the particular provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a defined benefit provision of a registered pension plan that was, at the time of the transfer, a specified multi-employer plan, has not, at any time after the payment of the single amount and before the past service event, been pensionable service of the individual under any defined benefit provision of a registered pension plan (other than a specified multi-employer plan), and is not, for the purpose of subsection 8304(5), a qualifying past service period in relation to the individual and the past service event, is, for the purpose of the description of D in subsection (3), an excess money purchase transfer in relation to the individual and the past service event, where is the portion of the amount transferred, as described in paragraph (b), that can reasonably be considered to be attributable to benefits in respect of the portion of the past service period that is after 1989, and is the total of all amounts each of which is the portion of a pension credit, or the grossed-up amount of a provisional PSPA, of the individual that can reasonably be considered to be attributable to benefits previously provided under the particular provision in respect of the past service period. Where, in a calendar year, an individual makes a contribution (other than an excluded contribution) in respect of a defined benefit provision of a registered pension plan that is, in the year, a specified multi-employer plan, and the contribution is made in respect of a period after 1989 and before the year, and is not included in determining the individual’s pension credit for the year with respect to any employer under the provision, the individual’s provisional PSPA with respect to an employer who participates in the plan, associated with the payment of the contribution, is the portion of the contribution that is not included in the individual’s provisional PSPA with respect to any other employer who participates in the plan, and, for the purpose of this subsection, the plan administrator shall determine the portion of the contribution to be included in the provisional PSPA of the individual with respect to each employer. For the purpose of subsection (8), a contribution includes an amount paid by an individual to a registered pension plan where the right of any person to retain the amount on behalf of the plan is conditional on the Minister issuing a certification for the purposes of subsection 147.1(10) of the Act as it applies with respect to the individual and to benefits provided as a consequence of the payment. Where, as a consequence of a past service event, benefits become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period throughout which the individual was employed outside Canada, and the Minister has consented in writing to the application of this subsection, each provisional PSPA of the individual that is associated with the past service event shall be determined on the assumption that no benefits were provided in respect of the period. an individual ceased, at any time in a calendar year, to have any rights to benefits under a defined benefit provision of a registered pension plan (in this subsection referred to as the “former provision”), benefits became provided at that time to the individual under another defined benefit provision of a registered pension plan (in this subsection referred to as the “current provision”) in lieu of the benefits under the former provision, the benefits that became provided at that time to the individual under the current provision in respect of the period in the year before that time are attributable to employment with the same employers as were the individual’s benefits in respect of that period under the former provision, no amount was transferred in the year on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund or a money purchase provision of a registered pension plan, and no benefits became provided under the former provision to the individual in the year and after that time, each pension credit of the individual under the former provision for the year is nil. an individual ceased, at any time in a calendar year, to have any rights to benefits under a money purchase provision of a registered pension plan or under a deferred profit sharing plan (in this subsection referred to as the “former provision”), benefits became provided at that time to the individual under a defined benefit provision of a registered pension plan (in this subsection referred to as the “current provision”) in lieu of benefits under the former provision, the benefits that became provided at that time to the individual under the current provision in respect of the period in the year before that time are attributable to employment with the same employers who made contributions under the former provision in respect of that period on behalf of the individual, no amount was transferred in the year on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a deferred profit sharing plan, no contributions were made under the former provision by or on behalf of the individual, and no other amounts were allocated under the former provision to the individual, in the year and after that time, and it is reasonable to consider that no excess would, if this subsection did not apply and if the year ended at that time, be determined under any of paragraphs 147(5.1)(a) to (c), 147.1(8)(a) and (b) and (9)(a) and (b) of the Act with respect to the individual for the year, each pension credit of the individual under the former provision for the year is nil, and the amount, if any, of the individual’s qualifying transfers made in connection with the replacement of the individual’s benefits shall be determined under subsection 8303(6) without regard to the portion, if any, of amounts transferred from the former provision to the current provision that can reasonably be considered to relate to an amount that, but for paragraph (g), would have been included in determining the individual’s pension credit under the former provision for the year. Subject to subsection (4), where, as a consequence of a past service event that occurs at a particular time in a calendar year, benefits (in this subsection and subsection (4) referred to as “past service benefits”) become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period in the year and before the particular time that, immediately before the past service event, was not pensionable service of the individual under the provision, the following rules apply, except to the extent that the Minister has waived in writing their application in respect of the plan: each pension credit of the individual under the provision for the year shall be determined as if the past service benefits had not become provided to the individual; where the year is 1990, the past service event shall be deemed, for the purposes of this Part, to have occurred immediately after the end of the year; where the year is after 1990, each provisional PSPA of the individual that is associated with the past service event as a consequence of which the past service benefits became provided shall be determined as if the past service event had occurred immediately after the end of the year; where information that is required for the computation of a provisional PSPA referred to in paragraph (c) is not determinable until after the time the provisional PSPA is computed, reasonable assumptions shall be made in respect of such information; and subsection 147.1(10) of the Act shall apply in respect of the past service benefits to the extent that that subsection would apply if the past service event had occurred immediately after the end of the year. Subsection (3) does not apply where the past service benefits become provided in circumstances where subsection (1) or (2) is applicable; or the period in respect of which the past service benefits are provided was not, at any time before the past service event, pensionable service of the individual under a defined benefit provision of a registered pension plan, or a period in respect of which a contribution was made on behalf of, or an amount (other than an amount in respect of earnings of a plan) was allocated to, the individual under a money purchase provision of a registered pension plan or under a deferred profit sharing plan. [Repealed, SOR/99-9, s. 7] Subject to subsection (10), if lifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan in respect of one or more qualifying past service periods in relation to the individual and the past service event, and the benefits are considered to be attributable to employment of the individual with a single employer, the provisional PSPA of the individual with respect to the employer that is associated with the past service event is the amount determined by the formula is the provisional PSPA that would be determined if (a)this subsection did not apply, this subsection did not apply, (b)all former benefits in relation to the individual and the past service event had ceased to be provided at the time the past service event occurred, all former benefits in relation to the individual and the past service event had ceased to be provided at the time the past service event occurred, (c)all former benefits in relation to the individual and the past service event were considered to be attributable to employment of the individual with the employer, and all former benefits in relation to the individual and the past service event were considered to be attributable to employment of the individual with the employer, and (d)the value of C in subsection 8303(3) were nil; the value of C in subsection 8303(3) were nil; is the total of all amounts each of which is a non-vested PA amount in respect of the individual and the past service event; is the total of all amounts each of which is a money purchase transfer in relation to the individual and the past service event; and is the amount of the individual’s qualifying transfers made in connection with the past service event. For the purpose of subsection (5), where lifetime retirement benefits (in this subsection referred to as “past service benefits”) have, as a consequence of a past service event occurring at a particular time, become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period that immediately before the particular time, was not pensionable service of the individual under the provision, and is, or was, pensionable service of the individual under another defined benefit provision (in this subsection referred to as the “former provision”) of a registered pension plan, the individual has not, at any time after 1996 and before the particular time, been a member in relation to the former provision, the individual ceased, at the particular time, to be a member in relation to the former provision, the past service event is a certifiable past service event and the individual is to cease being a member in relation to the former provision no later than 90 days after the day on which a certification of the Minister is issued for the purposes of subsection 147.1(10) of the Act in respect of the past service benefits, or the following conditions apply: the individual has not ceased, at the particular time, to be a member in relation to the former provision, and subparagraph 8503(3)(a)(v.1) applies to the period described in paragraph (a), and lifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period have not been taken into account under subsection (5) as former benefits in determining a provisional PSPA of the individual that is associated with any other past service event, the period is a qualifying past service period in relation to the individual and the past service event, lifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period are former benefits in relation to the individual and the past service event, where subsection 8301(8) has applied in respect of the determination of a pension credit of the individual under the former provision with respect to an employer for a year that includes any part of the period, the amount determined by the formula is a non-vested PA amount in respect of the individual and the past service event, where is the amount that would have been the individual’s pension credit under the former provision for the year with respect to the employer if subsection 8301(8) had not applied, and is the individual’s pension credit under the former provision for the year with respect to the employer, and is a money purchase transfer in relation to the individual and the past service event, where (i)an amount that was transferred, at or before the particular time, on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a defined benefit provision of a registered pension plan that was, at the time of the transfer, a specified multi-employer plan, or an amount that was transferred, at or before the particular time, on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a defined benefit provision of a registered pension plan that was, at the time of the transfer, a specified multi-employer plan, or (ii)an amount that is to be paid or otherwise made available under the former provision with respect to the individual after the particular time, other than(A)an amount that is to be transferred to fund the past service benefits or paid directly to the individual, or(B)the balance of property described in clause 8503(3)(a)(v.1)(B) that is required to be transferred after the particular time to fund the past service benefits, an amount that is to be paid or otherwise made available under the former provision with respect to the individual after the particular time, other than (A)an amount that is to be transferred to fund the past service benefits or paid directly to the individual, or an amount that is to be transferred to fund the past service benefits or paid directly to the individual, or (B)the balance of property described in clause 8503(3)(a)(v.1)(B) that is required to be transferred after the particular time to fund the past service benefits, the balance of property described in clause 8503(3)(a)(v.1)(B) that is required to be transferred after the particular time to fund the past service benefits, to the extent that the amount can reasonably be considered to be attributable to benefits in respect of the portion of the period that is after 1989, and is the total of all amounts each of which is, in respect of an employer with respect to which a provisional PSPA of the individual that is associated with the past service event is determined under subsection (5), the amount, if any, by which (i)the portion of the value determined for B in subsection 8303(3), for the purpose of determining the individual’s provisional PSPA with respect to the employer, that can reasonably be considered to be attributable to benefits provided in respect of the period the portion of the value determined for B in subsection 8303(3), for the purpose of determining the individual’s provisional PSPA with respect to the employer, that can reasonably be considered to be attributable to benefits provided in respect of the period (ii)the portion of the value determined for A in subsection 8303(3), for the purpose of determining the individual’s provisional PSPA with respect to the employer, that can reasonably be considered to be attributable to benefits provided in respect of the period. the portion of the value determined for A in subsection 8303(3), for the purpose of determining the individual’s provisional PSPA with respect to the employer, that can reasonably be considered to be attributable to benefits provided in respect of the period. Where lifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period that was previously pensionable service of the individual under the provision, ceased to be pensionable service of the individual under the provision as a consequence of the individual ceasing before 1997 to be a member in relation to the provision, and has not, at any time after 1996 and before the past service event, been pensionable service of the individual under a defined benefit provision of a registered pension plan, each provisional PSPA of the individual that is associated with the past service event shall be determined as if all benefits provided to the individual under the provision before 1997 in respect of the period had been provided to the individual under another defined benefit provision of a registered pension plan in relation to which the individual has not, at any time after 1996, been a member. lifetime retirement benefits (in this subsection referred to as “past service benefits”) provided to an individual under a defined benefit provision of a registered pension plan as a consequence of a past service event are attributable to employment of the individual with two or more employers (each of which is, in this subsection, referred to as a “current employer”), and subsection (5) would, but for paragraph (5)(b), apply in respect of the determination of each provisional PSPA of the individual that is associated with the past service event, each such provisional PSPA shall be determined in accordance with the formula set out in subsection (5), except that in determining the amount A, the former benefits of the individual shall be considered to be attributable to employment of the individual with the individual’s current employers, and the portion of the former benefits attributable to employment with each current employer shall be determined by the administrator of the pension plan under which the past service benefits are provided in a manner that is consistent with the association of the past service benefits with each current employer, the amounts B and C shall be included in computing only one provisional PSPA of the individual, as determined by the administrator of the pension plan under which the past service benefits are provided, and the amount D that is deducted in computing the individual’s provisional PSPA with respect to a particular employer shall equal such portion of the individual’s qualifying transfers made in connection with the past service event as is not deducted in computing the provisional PSPA of the individual with respect to any other employer. Except in subparagraph (4)(b)(i), a reference in this section to a defined benefit provision of a registered pension plan at any time does not, unless expressly provided, include a defined benefit provision of a plan that is, at that time, a specified multi-employer plan. If there is a past service event in relation to a defined benefit provision under an individual pension plan, the provisional PSPA of an individual with respect to an employer that is associated with the past service event is the amount, if any, determined by the formula (a)the provisional PSPA that would be determined if(i)this subsection did not apply,(ii)the value of C in subsection 8303(3) were nil, and(iii)the value of D in subsection 8304(5) were nil, and the provisional PSPA that would be determined if (i)this subsection did not apply, (ii)the value of C in subsection 8303(3) were nil, and the value of C in subsection 8303(3) were nil, and (iii)the value of D in subsection 8304(5) were nil, and the value of D in subsection 8304(5) were nil, and (b)the lesser of(i)the total of(A)the proportion of the fair market value of all property held in connection with the individual’s designated savings arrangements at the time of the past service event, that(I)the total of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the individual under the provisionis of(II)the lesser of 35 and the number of years by which the individual’s age in whole years at the time of the past service event exceeds 18, and(B)the individual’s unused RRSP deduction room at the end of the year immediately preceding the calendar year that includes the past service event, and(ii)the actuarial liabilities of the retirement benefits associated with the past service event, determined on the basis of the funding assumptions specified under subsections 8515(6) and (7), at the same effective date as the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act that is not earlier than the calendar year of the past service event; and (i)the total of(A)the proportion of the fair market value of all property held in connection with the individual’s designated savings arrangements at the time of the past service event, that(I)the total of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the individual under the provisionis of(II)the lesser of 35 and the number of years by which the individual’s age in whole years at the time of the past service event exceeds 18, and(B)the individual’s unused RRSP deduction room at the end of the year immediately preceding the calendar year that includes the past service event, and (A)the proportion of the fair market value of all property held in connection with the individual’s designated savings arrangements at the time of the past service event, that(I)the total of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the individual under the provisionis of(II)the lesser of 35 and the number of years by which the individual’s age in whole years at the time of the past service event exceeds 18, and the proportion of the fair market value of all property held in connection with the individual’s designated savings arrangements at the time of the past service event, that (I)the total of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the individual under the provision the total of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the individual under the provision (II)the lesser of 35 and the number of years by which the individual’s age in whole years at the time of the past service event exceeds 18, and the lesser of 35 and the number of years by which the individual’s age in whole years at the time of the past service event exceeds 18, and (B)the individual’s unused RRSP deduction room at the end of the year immediately preceding the calendar year that includes the past service event, and the individual’s unused RRSP deduction room at the end of the year immediately preceding the calendar year that includes the past service event, and (ii)the actuarial liabilities of the retirement benefits associated with the past service event, determined on the basis of the funding assumptions specified under subsections 8515(6) and (7), at the same effective date as the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act that is not earlier than the calendar year of the past service event; and the actuarial liabilities of the retirement benefits associated with the past service event, determined on the basis of the funding assumptions specified under subsections 8515(6) and (7), at the same effective date as the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act that is not earlier than the calendar year of the past service event; and Subsection (10) does not apply to a past service event in relation to an individual pension plan if the provisional PSPA of the member determined under subsections 8303(3) and 8304(5) would be nil if no qualifying transfers were made in connection with the past service event, unless it is a past service event that results from the establishment of the plan or from an amendment to the plan to provide additional retirement benefits. For the purpose of subsection 248(1) of the Act, an individual’s total pension adjustment reversal for a calendar year is the total of all amounts each of which is the pension adjustment reversal (in this Part and Part LXXXIV referred to as “PAR”) determined in connection with the individual’s termination in the year from a deferred profit sharing plan or from a benefit provision of a registered pension plan; or the pension adjustment correction determined in respect of the individual for the year under subsection (16). For the purposes of subsection (1) and the description of R in paragraph 8307(2)(b), where an individual terminates in 1997 from a deferred profit sharing plan or from a benefit provision of a registered pension plan, the termination is deemed to have occurred in 1998. For the purposes of this Part and Part LXXXIV and subject to subsection (12), an individual’s PAR determined in connection with the individual’s termination from a deferred profit sharing plan is if the conditions in subsection (13) are satisfied with respect to the termination, the total of all amounts each of which is an amount included in determining a pension credit of the individual under the plan, and to which the individual has ceased, at or before the time of the termination, to have any rights, but does not include any amount to which a spouse or common-law partner or former spouse or common-law partner of the individual has acquired rights as a consequence of a breakdown of their marriage or common-law partnership; and For the purposes of this Part and Part LXXXIV and subject to subsection (12), an individual’s PAR determined in connection with the individual’s termination from a money purchase provision of a registered pension plan is if the conditions in subsection (14) are satisfied with respect to the termination, the total of all amounts each of which is an amount included in determining a pension credit of the individual under the provision, and For the purposes of this Part and Part LXXXIV and subject to subsections (6) and (12), an individual’s PAR determined in connection with the individual’s termination from a defined benefit provision of a registered pension plan is where the conditions in subsection (14) are satisfied with respect to the termination, the amount determined by the formula is the total of all amounts each of which is, in respect of a particular year that is the year in which the termination occurs or that is a preceding year, the lesser of (i)the total of all amounts each of which is the pension credit of the individual under the provision for the particular year with respect to an employer, and the total of all amounts each of which is the pension credit of the individual under the provision for the particular year with respect to an employer, and (ii)the RRSP dollar limit for the year following the particular year, the RRSP dollar limit for the year following the particular year, is the total of all amounts each of which is the portion of the grossed-up amount of a provisional PSPA (other than a provisional PSPA determined in accordance with subsection 8303(8)) of the individual that is associated with a past service event occurring before the time of the termination that can reasonably be considered to be attributable to benefits provided under the provision, is the total of all amounts each of which is a specified distribution made in respect of the individual and the provision at or before the time of the termination, and is the total of all amounts each of which is a PA transfer amount in relation to the individual’s termination from the provision; and For the purpose of subparagraph (i) of the description of A in paragraph (5)(a), in determining an individual’s PAR in connection with the individual’s termination from a defined benefit provision of a registered pension plan, the individual’s pension credits under the provision for the year in which the termination occurs shall be determined without regard to benefits provided after the time of the termination; and the individual’s pension credits under the provision for each year in which the plan was a specified multi-employer plan are deemed to be nil. For the purposes of the descriptions of B in subsection 8303(7.1) and paragraph (5)(a), the grossed-up amount of an individual’s provisional PSPA with respect to an employer that is associated with a past service event is the amount that would be the provisional PSPA if the values of C and D in subsections 8303(3) and 8304(5) were nil; and the words “at the time the past service event occurred” in paragraph (b) of the description of A in subsection 8304(5) were read as “immediately before the time the past service event occurred”. For the purpose of the description of C in paragraph (5)(a), an amount paid under a defined benefit provision of a registered pension plan with respect to an individual is a specified distribution made in respect of the individual and the provision at the time it is paid, except to the extent that it can reasonably be considered to be a payment of benefits in respect of any period before 1990; it is transferred to another registered pension plan (other than a plan that is, at the time of the transfer, a specified multi-employer plan) in accordance with subsection 147.3(3) of the Act; it is transferred to another defined benefit provision of the plan where the transfer would, if the provision and the other provision were in separate registered pension plans, constitute a transfer in accordance with subsection 147.3(3) of the Act; it is a payment in respect of an actuarial surplus; it is a return of contributions made by the individual under the provision, where the contributions are returned pursuant to an amendment to the plan that also reduces the future contributions that would otherwise be required to be made under the provision by members of the plan and that does not reduce benefits provided under the provision, or a payment of interest in respect of contributions that are returned as described in subparagraph (i); it can reasonably be considered to be a payment of benefits provided in respect of a period throughout which the plan was a specified multi-employer plan; or it can reasonably be considered to be a payment of benefits provided in respect of a period throughout which the individual was employed outside Canada, where the benefits became provided as a consequence of a past service event in respect of which the Minister had consented to the application of subsection 8303(10) for the purpose of determining the individual’s provisional PSPAs. Where property held in connection with a particular defined benefit provision of a pension plan is made available at any time to provide benefits with respect to an individual under another benefit provision of a pension plan, subsection (8) applies as if the amount of the property had been paid under the particular provision at that time with respect to the individual. an individual has terminated, at a particular time after 1996, from a defined benefit provision (in this subsection referred to as the “former provision”) of a registered pension plan, lifetime retirement benefits (in this subsection referred to as the “past service benefits”) have, as a consequence of a past service event occurring at or before the particular time, become provided to the individual under another defined benefit provision of a registered pension plan in respect of a period that is or was pensionable service of the individual under the former provision, and lifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period have, under subsection 8304(5), been taken into account as former benefits in determining a provisional PSPA of the individual that is associated with the past service event, for the purposes of subsection 8406(5) and the description of D in paragraph (5)(a), the lesser of the portion of the value determined for A in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the past service benefits, and the portion of the value determined for B in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the former benefits is a PA transfer amount in relation to the individual’s termination from the former provision. an individual has terminated, at a particular time in 1997, from a particular defined benefit provision of a registered pension plan, lifetime retirement benefits (in this subsection referred to as the “past service benefits”) have, as a consequence of a past service event that occurred after the particular time and before 1998, become provided to the individual under the particular provision, or under another defined benefit provision of a registered pension plan, in respect of a period that was previously pensionable service of the individual under the particular provision, and lifetime retirement benefits to which the individual was previously entitled under the particular provision in respect of the period have, under subsection 8304(5), been taken into account as former benefits in determining a provisional PSPA of the individual that is associated with the past service event, is a PA transfer amount in relation to the individual’s termination from the particular provision at the particular time. Where an individual has ceased at a particular time to be a member in relation to a deferred profit sharing plan or a benefit provision of a registered pension plan and subsequently becomes a member in relation to the plan or the provision, as the case may be, the following rules apply in determining the individual’s PAR in connection with any subsequent termination from the plan or the provision, as the case may be: in the case of a deferred profit sharing plan or money purchase provision, any amounts included in a pension credit of the individual under the plan or provision because of an allocation to the individual before the particular time shall be disregarded; and in the case of a defined benefit provision, the value of A in paragraph (5)(a) shall be determined without regard to any pension credit, or portion of a pension credit, that is attributable to benefits provided under the provision before the particular time, the value of B in paragraph (5)(a) shall be determined without regard to any provisional PSPA that is associated with a past service event that occurred before the particular time, and the value of C in paragraph (5)(a) shall be determined without regard to any specified distribution (as defined in subsection (8)) made at or before the particular time. For the purpose of paragraph (3)(a), the conditions with respect to an individual’s termination from a deferred profit sharing plan are the following: the termination occurs after 1996 and otherwise than because of death; and no payments described in subparagraph 147(2)(k)(v) of the Act have been made out of or under the plan with respect to the individual. For the purposes of paragraphs (4)(a) and (5)(a), the conditions with respect to an individual’s termination from a benefit provision of a registered pension plan are the following: no retirement benefits have been paid under the provision with respect to the individual (other than retirement benefits paid with respect to the individual’s spouse or common-law partner or former spouse or common-law partner as a consequence of a breakdown of their marriage or common-law partnership). before a member terminates from a defined benefit provision of a registered pension plan, there has been a breakdown of the member’s marriage or common-law partnership, and as a consequence of the breakdown, the member has ceased to have rights to all or a portion of the benefits provided under the provision with respect to the member, and an individual who is the member’s spouse or common-law partner or former spouse or common-law partner has acquired rights under the provision in respect of those benefits, for the purpose of subsection (8), any amount paid under the provision with respect to the rights acquired by the individual (other than a single amount paid under the provision at or before the time of the member’s termination in full satisfaction of the rights acquired by the individual) is deemed not to have been paid with respect to the member, and unless a single amount has been paid under the provision at or before the time of the member’s termination in full satisfaction of the rights acquired by the individual, a single amount equal to the present value (at the time the member terminates from the provision) of the benefits to which the member has ceased to have rights as a consequence of the breakdown is deemed to have been paid to the member at that time under the provision in full satisfaction of those benefits. If a distribution described in subparagraph 8502(d)(iii) or subsection 147.1(19) of the Act is made in a calendar year in respect of an individual under a money purchase provision, the individual’s pension adjustment correction for the year is the total of all amounts each of which is an amount, in respect of one or more of the 10 years immediately preceding the calendar year (each such year referred to in this subsection as a “retroactive year”), determined by the formula is the total of all amounts each of which was included in determining the individual’s pension credit with respect to an employer for the retroactive year under the provision; is the total amount that ought to have been contributed to the provision under the terms of the plan as registered with respect to the individual for the retroactive year; and is the amount, if any, by which the total of all amounts each of which is the individual’s pension adjustment for the retroactive year in respect of a participating employer exceeds the lesser of the money purchase limit for the retroactive year and 18% of the individual’s compensation (as defined in subsection 147.1(1) of the Act) from participating employers for the retroactive year. Where, for the purposes of this Part, it is necessary to determine the portion of an amount of benefits provided with respect to a member of a registered pension plan under a defined benefit provision of the plan that is attributable to the member’s employment with a particular employer, the following rules apply, subject to subsection 8308(7): the determination shall be made by the plan administrator; benefits provided as a consequence of services rendered by the member to an employer who participates in the plan shall be regarded as attributable to employment with that employer, whether the benefits become provided at the time the services are rendered or at a subsequent time; and the determination shall be made in a manner that is reasonable in the circumstances, is not inconsistent with such determinations made previously, and results in the full amount of benefits being attributed to employment with one or more employers who participate in the plan. Where the administrator of a registered pension plan does not comply with the requirements of subsection (1) in connection with the determination of an amount under this Part at any time, the plan becomes, at that time, a revocable plan; and the Minister shall make any determinations referred to in subsection (1) that the administrator fails to make, or fails to make in accordance with that subsection. For the purposes of subsection 147.1(10) of the Act as it applies in respect of a past service event and the benefits provided under a defined benefit provision of a registered pension plan with respect to a particular member of the plan, a certification of the Minister is not required where each provisional PSPA of the member that is associated with the past service event is nil; the conditions in subsection (2) or (3) are satisfied; the conditions in subsection (2) or (3) are substantially satisfied and the Minister waives in writing the requirement for certification; paragraph 8303(5)(f.1) was applicable in determining the provisional PSPA of the member that is associated with the past service event; or the past service event is deemed by paragraph 8304(3)(b) to have occurred immediately after the end of 1990. The following are conditions for the purposes of paragraphs (1)(b) and (c) and 8303(5)(g): there are more than 9 active members under the provision; no more than 25 per cent of the active members under the provision are specified active members under the provision; for all or substantially all of the active members under the provision, the amount of lifetime retirement benefits accrued under the provision has increased as a consequence of the past service event; where there is a specified active member under the provision, the amounts C and D in subparagraph (ii) are greater than nil, and the amount determined by the formula A/C does not exceed the amount determined by the formula B/D where is the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately after the past service event, to a specified active member under the provision, is the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately after the past service event, to an active member (other than a specified active member) under the provision, is the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately before the past service event, to a specified active member under the provision, and is the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately before the past service event, to an active member (other than a specified active member) under the provision; and the benefits provided under the provision as a consequence of the past service event to members of the plan who are not active members under the provision are not more advantageous than such benefits provided to active members under the provision. The following are conditions for the purposes of paragraphs (1)(b) and (c): the past service event consists of the establishment of the provision; the member is not a specified active member under the provision; if the member is not an active member under the provision, for each of the 5 years immediately preceding the calendar year in which the past service event occurs, the member was not connected at any time in the year with an employer who participates in the plan, and the aggregate of all amounts each of which is the remuneration of the member for the year from an employer who participates in the plan did not exceed 2 1/2 times the Year’s Maximum Pensionable Earnings for the year; and the aggregate of all amounts each of which is a provisional PSPA of the member that is associated with the past service event does not exceed 7/2 of the money purchase limit for the year in which the past service event occurs. For the purposes of this section as it applies in respect of a past service event, a member of a pension plan is an active member under a defined benefit provision of the plan if lifetime retirement benefits accrue under the provision to the member in respect of a period that immediately follows the time the past service event occurs, or the member is entitled, immediately after the time the past service event occurs, to lifetime retirement benefits under the provision in respect of a period before that time and it is reasonable to expect, at that time, that lifetime retirement benefits will accrue under the provision to the member in respect of a period after that time; and an active member under a defined benefit provision of a pension plan is a specified active member under the provision if the member is connected, at the time of the past service event, with an employer who participates in the plan, or it is reasonable to expect, at the time of the past service event, that the aggregate of all amounts each of which is the remuneration of the member for the calendar year in which the past service event occurs from an employer who participates in the plan will exceed 2 1/2 times the Year’s Maximum Pensionable Earnings for the year. Application for a certification of the Minister for the purposes of subsection 147.1(10) of the Act shall be made in prescribed form by the administrator of the registered pension plan to which the certification relates. For the purposes of subsection 147.1(10) of the Act in respect of a past service event and benefits with respect to a particular member of a registered pension plan, the prescribed condition is that, at the particular time the Minister issues the certification, the aggregate of all amounts each of which is the member’s provisional PSPA with respect to an employer that is associated with the past service event does not exceed is the member’s unused RRSP deduction room at the end of the year immediately preceding the calendar year (in this paragraph referred to as the “particular year”) that includes the particular time, is the amount of the member’s qualifying withdrawals made for the purposes of the certification, determined as of the particular time, is the amount of the member’s PSPA withdrawals for the particular year, determined as of the particular time, is the aggregate of all amounts each of which is the accumulated PSPA of the member for the particular year with respect to an employer, determined as of the particular time, and is the total of all amounts each of which is a PAR determined in connection with the individual’s termination in the particular year from a deferred profit sharing plan, or from a benefit provision of a registered pension plan, and in respect of which an information return has been filed under section 8402.01 with the Minister before the particular time.

For the purposes of paragraph (5)(a) and the description of B in paragraph (2)(b), the amount of an individual’s qualifying withdrawals made for the purposes of a certification in respect of a past service event, determined as of a particular time, is the lesser of the aggregate of all amounts each of which is such portion of an amount withdrawn by the individual from a registered retirement savings plan under which the individual was the annuitant (within the meaning assigned by subsection 146(1) of the Act) at the time of the withdrawal as is eligible, pursuant to subsection (4), to be designated for the purposes of the certification, and is designated by the individual for the purposes of the certification by filing a prescribed form containing prescribed information with the Minister before the particular time, and the aggregate of all amounts each of which is the provisional PSPA of the individual with respect to an employer that is associated with the past service event the amount, positive or negative, determined by the formula where A, C, D and R have the same values as they have at the particular time for the purposes of the formula in paragraph (2)(b). An amount withdrawn by an individual from a registered retirement savings plan is eligible to be designated for the purposes of a certification, except to the extent that the following rules provide otherwise: the amount is not eligible to be designated if the amount was withdrawn from a registered retirement savings plan in a calendar year other than the year in which the designation would be filed with the Minister or either of the 2 immediately preceding calendar years, or withdrawn in circumstances that entitle the individual to a deduction under paragraph 60(l) of the Act; and the amount is not eligible to be designated to the extent the amount was designated by the individual for the purposes of any other certification, or deducted under section 60.2 or subsection 146(8.2) or 147.3(13.1) of the Act in computing the individual’s income for any taxation year. For the purposes of the description of C in paragraph (2)(b) and the description of G in the definition net past service pension adjustment in subsection 146(1) of the Act, the amount of an individual’s PSPA withdrawals for a calendar year, determined as of a particular time, is if the Minister has issued, in the year and before the particular time, a certification for the purposes of subsection 147.1(10) of the Act with respect to the individual, the aggregate of all amounts each of which is the amount of the individual’s qualifying withdrawals made for the purposes of a certification that the Minister has issued in the year and before the particular time; and For the purposes of subsection (7) and subsections 146(8.2) and 147.3(13.1) of the Act, a prescribed withdrawal is the portion of an amount withdrawn by an individual from a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1) of the Act) that is designated in accordance with subparagraph (3)(a)(ii) for the purposes of a certification in respect of the individual. For the purpose of subsection 146(6.1) of the Act, a premium paid by a taxpayer under a registered retirement savings plan under which the taxpayer is the annuitant (within the meaning assigned by subsection 146(1) of the Act) at the time the premium is paid is a prescribed premium for a particular taxation year of the taxpayer where the following conditions are satisfied: the taxpayer withdrew an amount (in this subsection referred to as the “withdrawn amount”) in the particular year from a registered retirement savings plan for the purposes of a certification in respect of a past service event; all or part of the withdrawn amount is a prescribed withdrawal pursuant to subsection (6); it is subsequently determined that as a consequence of reasonable error, the taxpayer withdrew a greater amount than necessary for the purposes of the certification, or as a consequence of the application of paragraph 147.1(3)(b) of the Act, it was not necessary for the taxpayer to withdraw any amount; the premium is paid by the taxpayer in the 12-month period immediately following the time the determination referred to in paragraph (c) is made; if the individual subsequently pays all or a part of the contribution to the plan pursuant to the commitment, the amount paid to the plan is, for the purposes of paragraphs 8301(4)(a) and (8)(e), a contribution described in this paragraph, the taxpayer files with the Minister, on or before the day on or before which the taxpayer is required (or would be required if tax under Part I of the Act were payable by the taxpayer for the taxation year in which the taxpayer pays the premium) by section 150 of the Act to file a return of income for the taxation year in which the taxpayer pays the premium, a written notice in which the taxpayer designates the premium as a recontribution of all or a portion of the withdrawn amount; and if an employer subsequently pays to the plan all or a part of a contribution in respect of which paragraph (f) applies, the amount paid to the plan is, for the purposes of paragraph 8301(4)(a), a contribution described in this paragraph. For the purposes of this Part and subsection 147.1(10) of the Act, benefits that became provided under a defined benefit provision of a pension plan before the day as of which the plan becomes a registered pension plan shall be deemed to have become provided as a consequence of an event occurring on that day and not to have been provided before that day. at any particular time in a calendar year after 1990, an individual becomes a member of a registered pension plan, or lifetime retirement benefits commence to accrue to the individual under a defined benefit provision of a registered pension plan following a period in which lifetime retirement benefits did not accrue to the individual, the individual is connected at the particular time, or was connected at any time after 1989, with an employer who participates in the plan for the benefit of the individual, the individual did not have a pension adjustment for 1990 that was greater than nil, and this subsection did not apply before the particular time to prescribe an amount with respect to the individual, an amount equal to the lesser of $11,500 and 18% of the individual’s earned income (as defined in subsection 146(1) of the Act) for 1990 is prescribed with respect to the individual for the calendar year that includes the particular time for the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act. Where an individual who is entitled to benefits under a defined benefit provision of a registered pension plan receives remuneration at a particular time in a particular calendar year no part of which is pensionable service of the individual under the provision and the remuneration is treated for the purpose of determining benefits under the provision as if it were remuneration received in one or more calendar years preceding the particular calendar year for services rendered in those preceding years, the following rules apply: such portion of the remuneration as is treated under the provision as if it were remuneration received in a preceding calendar year for services rendered in that preceding year shall be deemed, for the purpose of determining, as of the particular time and any subsequent time, a redetermined benefit entitlement of the individual under the provision, to have been received in that preceding year for services rendered in that preceding year; and the pension credit of the individual for the particular year under the provision with respect to an employer is the aggregate of the amount that would otherwise be the individual’s pension credit for the particular year, and the amount that would, if the payment of the remuneration were a past service event, be the provisional PSPA (or a reasonable estimate thereof determined in a manner acceptable to the Minister) of the individual with respect to the employer that is associated with the payment of the remuneration. as a consequence of a past service event, retirement benefits (in this subsection referred to as “retroactive benefits”) become provided under a defined benefit provision of a registered pension plan (other than a plan that is a specified multi-employer plan) to an individual in respect of a period of reduced services of the individual, the period of reduced services was not, before the past service event, pensionable service of the individual under the provision, and the past service event occurs on or before April 30 of the year immediately following the calendar year in which ends the complete period of reduced services of the individual that includes the period of reduced services, each pension adjustment of the individual with respect to an employer for a year before the calendar year in which the past service event occurs shall be deemed to be, and to always have been, the aggregate of the amount that would otherwise be the individual’s pension adjustment with respect to the employer for the year, and such portion of the provisional PSPA of the individual with respect to the employer that is associated with the past service event as may reasonably be considered to be attributable to the provision of retroactive benefits in respect of the year, and each provisional PSPA of the individual with respect to an employer that is associated with the past service event shall be deemed (except for the purposes of this subsection) to be such portion of the amount that would otherwise be the individual’s provisional PSPA as may reasonably be considered not to be attributable to the provision of retroactive benefits. Paragraph (4)(c), in its application to a complete period of reduced services that ended in 2019, is to be read as follows: the past service event occurs on or before June 1, 2020 or such later date as is acceptable to the Minister, a contribution (in this subsection referred to as a “retroactive contribution”) is made by an individual, or by an employer with respect to the individual, under a money purchase provision of a registered pension plan in respect of a period in a particular calendar year that is a period of reduced services of the individual, and the retroactive contribution is made after the particular year and on or before April 30 of the year immediately following the calendar year in which ends the complete period of reduced services of the individual that includes the period of reduced services, each pension adjustment of the individual for the particular year with respect to an employer shall be deemed to be, and to always have been, the amount that it would have been had the retroactive contribution been made at the end of the particular year, and the retroactive contribution shall be deemed, for the purpose of determining pension adjustments of the individual for any year after the particular year, to have been made at the end of the particular year and not to have been made at any subsequent time. Paragraph (5)(b), in its application to a complete period of reduced services that ended in 2019, is to be read as follows: the retroactive contribution is made after 2019 and on or before June 1, 2020 or such later date as is acceptable to the Minister, Subsection (5.3) applies in respect of a contribution made with respect to an individual under a money purchase provision of a registered pension plan (in this subsection and in subsection (5.3) referred to as a “retroactive contribution”), if in the case of a contribution payable by an individual, the individual makes the retroactive contribution after 2020 and on or before April 30, 2022, or the individual makes a written commitment, on or before April 30, 2022, to the plan administrator, or to a participating employer of the plan, to make the retroactive contribution; in the case of a contribution payable by a participating employer, the employer makes the retroactive contribution after 2020 and on or before April 30, 2022, or it is conditional on the individual making the retroactive contribution that the individual has committed to pay under subparagraph (a)(ii); and the retroactive contribution replaces, in whole or in part, a contribution that would have been required to be made to the plan in the calendar year 2020 or 2021 but for an amendment made to the plan under sections 8511 and 8512 that reduced the contributions required to be made. If this subsection applies in respect of a retroactive contribution, each pension adjustment of the individual for the 2020 or 2021 calendar year with respect to an employer is deemed to be, and to always have been, the amount that it would have been had the retroactive contribution been made at the end of 2020 or 2021, as the case may be; and the retroactive contribution is deemed, for the purpose of determining pension adjustments of the individual for any calendar year after the year referred to in paragraph (5.2)(c), to have been made at the end of that year and not to have been made at any subsequent time. If the individual makes a written commitment to the administrator of the plan or to an employer who participates in the plan to make a permitted corrective contribution in accordance with subsection 147.1(20) of the Act in installments, amounts payable by the individual or the employer in respect of the contribution are deemed for the purposes of subsection 8402(4) and the definition net past service pension adjustment in subsection 146(1) of the Act to have been made at the time when the written commitment was made. an individual enters into a written commitment to make a contribution under a money purchase provision of a registered pension plan, the commitment is made to the administrator of the plan or to an employer who participates in the plan, and the rules in subsection (5) would apply in respect of the contribution if the contribution were made at the time at which the individual enters into the commitment, the following rules apply for the purposes of this Part: the individual shall be deemed to have made the contribution to the plan at the time the individual enters into the commitment, any contribution that an employer is required to make under the money purchase provision conditional on the individual making the contribution that the individual has committed to pay and in respect of which subsection (5) would apply if the contribution were made by the employer at the time the individual enters into the commitment shall be deemed to have been made by the employer at that time, and Where, pursuant to an arrangement between an employer (in this subsection referred to as the “lending employer”) who is a participating employer in relation to a pension plan and an employer (in this subsection referred to as the “borrowing employer”) who, but for this subsection, would not be a participating employer in relation to the plan, an employee of the lending employer renders services to the borrowing employer for which the employee receives remuneration from the borrowing employer, and while the employee renders services to the borrowing employer, benefits continue to accrue under a defined benefit provision of the plan to the employee, or the lending employer continues to make contributions under a money purchase provision of the plan with respect to the employee, for the purpose of the definition participating employer in subsection 147.1(1) of the Act as it applies in respect of the plan, the borrowing employer is a prescribed employer, the determination, for the purposes of this Part, of the portion of the employee’s benefit accrual under a defined benefit provision of the plan in respect of a year that can reasonably be considered to be attributable to the employee’s employment with each of the lending and borrowing employers shall be made with regard to the remuneration received by the employee for the year from each employer, and such portion of the contributions made under a money purchase provision of the plan by the lending employer as may reasonably be considered to be in respect of the employee’s remuneration from the borrowing employer shall be deemed, for the purposes of this Part, to be contributions made by the borrowing employer. Notwithstanding any other provisions of this Part, other than section 8310, where all benefits with respect to an individual under a defined benefit provision (in this subsection referred to as the “former provision”) of a registered pension plan are replaced in a calendar year by identical benefits under a defined benefit provision of another registered pension plan, the replacement of benefits is consequent on a transfer of the individual’s employment from one employer (in this subsection referred to as the “former employer”) to another employer (in this subsection referred to as the “successor employer”), and the Minister consents in writing to the application of this subsection in respect of that replacement of benefits, the individual’s pension adjustments for the year with respect to the former employer and the successor employer shall be the amounts that they would be if all benefits with respect to the individual under the former provision had been attributable to employment with the successor employer and not to employment with the former employer. lifetime retirement benefits that do not comply with the condition in paragraph 8503(3)(a) are provided to an individual under a defined benefit provision of a registered pension plan, and the benefits are permissible only by reason of subsection 8505(3), each pension credit of the individual under the provision and each provisional PSPA of the individual shall be determined without regard to the lifetime retirement benefits. In this section, foreign plan means a plan or arrangement (determined without regard to subsection 207.6(5) of the Act) that would, but for paragraph (l) of the definition retirement compensation arrangement in subsection 248(1) of the Act, be a retirement compensation arrangement. Subject to subsections (3) to (4.1), the pension credit of an individual for a calendar year with respect to an employer under a foreign plan is where paragraph (b) does not apply, nil; and the year is 1992 or a subsequent year, the individual became entitled in the year, either absolutely or contingently, to benefits under the foreign plan in respect of services rendered to the employer in a period throughout which the individual was resident in Canada and rendered services to the employer that were primarily services rendered in Canada or services rendered in connection with a business carried on by the employer in Canada, or a combination of those services, the individual continued to be entitled at the end of the year, either absolutely or contingently, to all or part of the benefits, and no contribution was made under the foreign plan in the year in respect of the individual, except where no contribution was made because the foreign plan had an actuarial surplus, and had a contribution been made in respect of the benefits referred to in subparagraph (ii), it would have been a resident’s contribution (as defined in subsection 207.6(5.1) of the Act), or a contribution that is not a resident’s contribution was made under the foreign plan in the year in respect of the individual, the amount, if any, by which 18% of the individual’s resident compensation from the employer for the year exceeds the PA offset for the year, and the amount by which the money purchase limit for the year exceeds the PA offset for the year. For the purposes of applying subsection (2) in determining an individual’s pension credit for a calendar year with respect to an employer under a foreign plan, if any contributions made to, or benefits accruing under, the plan in respect of the individual and the calendar year benefit from the application of paragraph 8 of Article XVIII of the Canada-United States Tax Convention signed at Washington on September 26, 1980, or from the application of a similar provision in another tax treaty, subparagraph (2)(b)(ii) shall be read without reference to the words “was resident in Canada and”; and the portion of subsection (2) after subparagraph (b)(iv) shall be read as “the lesser of the money purchase limit for the year and 18% of the individual’s resident compensation from the employer for the year”. Subject to subsection (4), where the Minister has, on the written application of an employer, approved in writing a method for determining pension credits for a year with respect to the employer under a foreign plan, the pension credits shall be determined in accordance with that method. The pension credit of an individual for 1992, 1993 or 1994 with respect to an employer under a foreign plan is the lesser of the amount that would, but for this subsection, be determined as the pension credit for the year, and the amount, if any, by which the lesser of 18% of the amount that would be the individual’s compensation from the employer for the year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraphs (b) and (c) of that definition, and the money purchase limit for the year $1,000, and the amount that would be the pension adjustment of the individual for the year with respect to the employer if subsection 8301(1) were read without reference to paragraph (b) of that subsection. For the purpose of determining the pension credit of an individual for a calendar year after 1995 and before 2003 with respect to an employer under a foreign plan, subparagraph (2)(b)(vi) shall be read as the money purchase limit for the year.” Subject to subsection (6), where the benefits to which an individual is entitled, either absolutely or contingently, under a foreign plan are modified, the foreign plan PSPA of the individual with respect to an employer associated with the modification of benefits is the amount, if any, by which the total of all amounts each of which is the amount that, if this section were read without reference to subsection (3), would be the pension credit of the individual with respect to the employer under the foreign plan for a calendar year before the year in which the individual’s benefits are modified the pension credit of the individual with respect to the employer under the foreign plan for a calendar year before the year in which the individual’s benefits are modified, or the foreign plan PSPA of the individual with respect to the employer associated with a previous modification of the individual’s benefits under the foreign plan. Where the Minister has, on the written application of an employer, approved in writing a method for determining the foreign plan PSPA of an individual with respect to the employer associated with a modification of the individual’s benefits under a foreign plan, the individual’s foreign plan PSPA shall be determined in accordance with that method. For the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, there is prescribed in respect of an individual for a calendar year the lesser of the money purchase limit for the preceding calendar year (in this section referred to as the “service year”) and the amount determined by subsection (2), if the individual rendered services to an employer (excluding services that were primarily services rendered in Canada or services rendered in connection with a business carried on by the employer in Canada, or a combination of those services) throughout a period in the service year in which the individual was resident in Canada; became entitled, either absolutely or contingently, in the service year to benefits under a foreign plan (as defined in subsection 8308.1(1)) in respect of the services; and continued to be entitled at the end of the service year, either absolutely or contingently, to all or part of the benefits. The amount determined for the purpose of subsection (1) is, if the only benefits to which the individ- ual became entitled in the service year under the foreign plan were provided under one or more money purchase provisions of the foreign plan, the total of all amounts each of which is the individual’s pension credit for the service year with respect to the employer under a money purchase provision of the foreign plan, determined as though the foreign plan were a registered pension plan, without regard to any contributions made by the individual, and if, under the laws of the country in which the foreign plan is established, any contributions made after the end of the service year are treated as having been made in the service year, as though those contributions were made in the service year and not when the contributions were actually made; and in any other case, the greater of the total that would be determined under paragraph (a) if the individual had not become entitled in the service year to any benefits under a defined benefit provision of the foreign plan, and 10% of the portion of the individual’s resident compensation from the employer for the service year that is attributable to services rendered to the employer and included under paragraph (1)(a). In this section, specified retirement arrangement means, in respect of an individual and an employer, a plan or arrangement under which payments that are attributable to the individual’s employment with the employer are to be, or may be, made to or for the benefit of the individual after the termination of the individual’s employment with the employer, but does not include a plan or arrangement referred to in any of paragraphs (a) to (k), (m) and (n) of the definition retirement compensation arrangement in subsection 248(1) of the Act; [Repealed, SOR/99-9, s. 12] a plan or arrangement that does not provide in any circumstances for payments to be made to or for the benefit of the individual after the later of the last day of the calendar year in which the individual attains 71 years of age and the day that is 5 years after the day of termination of the individual’s employment with the employer; a plan or arrangement (in this paragraph referred to as the “arrangement”) that is, or would be, but for paragraph (l) of the definition retirement compensation arrangement in subsection 248(1) of the Act, a retirement compensation arrangement where the funding of the arrangement is subject to the Pension Benefits Standards Act, 1985 or a similar law of a province, or the arrangement is funded substantially in accordance with the funding requirements that would apply if the arrangement were subject to the Pension Benefits Standards Act, 1985; a plan or arrangement that is deemed by subsection 207.6(6) of the Act to be a retirement compensation arrangement; or an arrangement established by the Judges Act or the Lieutenant Governors Superannuation Act. Subject to subsections (3) and (3.1), the pension credit of an individual for a calendar year with respect to an employer under a specified retirement arrangement is the year is 1993 or a subsequent year, the employer is, at any time in the year, a person who is exempt, because of section 149 of the Act, from tax under Part I of the Act on all or part of the person’s taxable income, or the Government of Canada or the government of a province, the individual became entitled in the year, either absolutely or contingently, to benefits under the arrangement in respect of employment with the employer, at the end of the year, the individual is entitled, either absolutely or contingently, to benefits under the arrangement, and (A)the amount, if any, by which 18% of the individual’s resident compensation from the employer for the year exceeds the PA offset for the year, and (B)the amount by which the money purchase limit for the year exceeds the PA offset for the year, and the amount by which the money purchase limit for the year exceeds the PA offset for the year, and is the amount that would be the pension adjustment of the individual for the year with respect to the employer if subsection 8301(1) were read without reference to paragraph (c) of that subsection, the amount that would be determined by the formula in subparagraph (v) if the reference to “0.85” in that formula were replaced by a reference to “1”. Where the Minister has, on the written application of an employer, approved in writing a method for determining pension credits for a year with respect to the employer under a specified retirement arrangement, the pension credits shall be determined in accordance with that method. For the purpose of determining the pension credit of an individual for a calendar year after 1995 and before 2003 with respect to an employer under a specified retirement arrangement, the portion of paragraph (2)(b) after subparagraph (iv) shall be read as (B)the amount by which $15,500 exceeds the PA offset for the year, and the amount by which $15,500 exceeds the PA offset for the year, and is the amount that would be the pension adjustment of the individual for the year with respect to the employer if subsection 8301(1) were read without reference to paragraph (c), the amount that would be determined by the formula in subparagraph (v) if the reference to “0.85A” in that formula were read as a reference to “A”, and clause (B) of the description of A in that subparagraph were read as the money purchase limit for the year, and”.”. Subject to subsection (5), where the benefits to which an individual is entitled, either absolutely or contingently, under a specified retirement arrangement are modified, the specified retirement arrangement PSPA of the individual with respect to an employer associated with the modification of benefits is the amount, if any, by which the total of all amounts each of which is the amount that, if this section were read without reference to subsection (3), would be the pension credit of the individual with respect to the employer under the arrangement for a calendar year before the year in which the individual’s benefits are modified the pension credit of the individual with respect to the employer under the arrangement for a calendar year before the year in which the individual’s benefits are modified, or the specified retirement arrangement PSPA of the individual with respect to the employer associated with a previous modification of the individual’s benefits under the arrangement. Where the Minister has, on the written application of an employer, approved in writing a method for determining the specified retirement arrangement PSPA of an individual with respect to the employer associated with a modification of the individual’s benefits under a specified retirement arrangement, the individual’s specified retirement arrangement PSPA shall be determined in accordance with that method. administrator means, in respect of a government-sponsored retirement arrangement, the government or other entity that has ultimate responsibility for the administration of the arrangement. (administrateur) government-sponsored retirement arrangement means a plan or arrangement established to provide pensions directly or indirectly from the public money of Canada or a province to one or more individuals each of whom renders services in respect of which amounts that are included in computing the income from a business of any person or partnership are paid directly or indirectly from the public money of Canada or a province. (mécanisme de retraite sous régime gouvernemental) in a particular calendar year after 1992 an individual renders services in respect of which an amount that is included in computing the income from a business of any person was payable directly or indirectly by the Government of Canada or of a province, and at the end of the particular year, the individual is entitled, either absolutely or contingently, to benefits under a government-sponsored retirement arrangement that provides benefits in connection with such services, there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, where the particular year is before 1996, the amount by which the RRSP dollar limit for that following year exceeds $1,000, and in any other case, the RRSP dollar limit for that following year. Subject to subsection (3), where an individual is, at any time in a particular calendar year after 1989, a lieutenant governor of a province (other than a lieutenant governor who is not a contributor as defined in section 2 of the Lieutenant Governors Superannuation Act), there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, the lesser of the amount, if any, by which 18% of the salary received by the individual for the particular year as a lieutenant governor exceeds the PA offset for the particular year, and the amount by which the money purchase limit for the particular year exceeds the PA offset for the particular year. Subject to subsection (3), where an individual is, at any time in a particular calendar year after 1990, a judge in receipt of a salary under the Judges Act, there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions RRSP deduction limit and unused RRSP deduction room in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, the lesser of the amount, if any, by which 18% of the portion of the salary received by the individual for the particular year under the Judges Act in respect of which contributions are required under subsection 50(1) or (2) of that Act exceeds the PA offset for the particular year; and is the amount by which the money purchase limit for the particular year exceeds the PA offset for the particular year, and is the number of months, in the particular year, for which the individual received salary in respect of which contributions were required under subsection 50(1) or (2) of the Judges Act. For the purpose of determining the amount prescribed under subsection (1) or (2) in respect of an individual for a calendar year after 2000 and before 2004, paragraph (1)(b) shall be read as follows: the money purchase limit for the particular year.”, and the description of A in paragraph (2)(b) shall be read as follows: is the money purchase limit for the particular year, and”. Where more than one method for determining an amount under this Part complies with the rules in this Part, only such of those methods as are acceptable to the Minister shall be used. Where, in a particular case, the rules in this Part require the determination of an amount in a manner that is not appropriate having regard to the provisions of this Part read as a whole and the purposes for which the amount is determined, the Minister may permit or require the amount to be determined in a manner that, in the Minister’s opinion, is appropriate. Where, pursuant to subsection (2), the Minister gives permission or imposes a requirement, the permission or requirement is not effective unless it is given or imposed in writing. Where a pension credit, provisional PSPA or PAR of an individual is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two such consecutive multiples, to the higher of the two multiples. All words and expressions used in this Part that are defined in subsection 8300(1), 8308.4(1) or 8500(1) or in subsection 147.1(1) of the Act have the meanings assigned in those provisions. A reference in this Part to a pension credit of an individual means a pension credit of the individual as determined under Part LXXXIII. For the purposes of this Part, where the administrator of a pension plan is not otherwise a person, the administrator shall be deemed to be a person. Where the pension adjustment of an individual for a calendar year with respect to an employer is greater than nil, the employer shall, on or before the last day of February in the immediately following calendar year, file with the Minister an information return in prescribed form reporting the pension adjustment, other than the portion, if any, required by subsection (2) or (3) to be reported by the administrator of a registered pension plan. Where an individual makes a contribution in a particular calendar year to a registered pension plan that is a specified multi-employer plan in the year and the contribution is not remitted to the plan by any participating employer on behalf of the individual, the plan administrator shall, on or before the last day of February in the immediately following calendar year, file with the Minister an information return in prescribed form reporting the aggregate of all amounts each of which is the portion, if any, of the individual’s pension adjustment for the particular year with respect to an employer that may reasonably be considered to result from the contribution. Where the portion of a pension credit of an individual for a calendar year that, pursuant to subsection (4), is reportable by the administrator of a registered pension plan is greater than nil, the administrator shall, on or before the last day of February in the immediately following calendar year, file with the Minister an information return in prescribed form reporting that portion of the pension credit. For the purpose of subsection (3), where, on application by the administrator of a registered pension plan that is, in a calendar year, a multi-employer plan (other than a specified multi-employer plan), the Minister consents in writing to the application of this subsection in respect of the plan in the year, such portion of each pension credit for the year under a defined benefit provision of the plan as may reasonably be considered to be attributable to benefits provided in respect of a period of reduced services of an individual is, to the extent permitted by the Minister, reportable by the administrator. Subsections (1) to (3) do not apply to require the reporting of amounts with respect to an individual for the calendar year in which the individual dies. Where the pension adjustment of an individual for a calendar year with respect to an employer is altered by reason of the application of paragraph 8308(4)(d) or (5)(c) and the amount (in this subsection referred to as the “redetermined amount”) that a person would have been required to report based on the pension adjustment as altered exceeds if the person has not previously reported an amount in respect of the individual’s pension adjustment, nil, and otherwise, the amount reported by the person in respect of the individual’s pension adjustment, the person shall, within 60 days after the day on which paragraph 8308(4)(d) or (5)(c), as the case may be, applies to alter the pension adjustment, file with the Minister an information return in prescribed form reporting the redetermined amount. Where a provisional PSPA (computed under section 8303, 8304 or 8308) of an individual with respect to an employer that is associated with a past service event (other than a certifiable past service event) is greater than nil, the administrator of each registered pension plan to which the past service event relates shall, within 120 days after the day on which the past service event occurs, file with the Minister an information return in prescribed form reporting such portion of the aggregate of all amounts each of which is the individual’s PSPA with respect to an employer that is associated with the past service event as may reasonably be considered to be attributable to benefits provided under the plan, except that a return is not required to be filed by an administrator if the amount that would otherwise be reported by the administrator is nil. Where a foreign plan PSPA (computed under subsection 8308.1(5) or (6)) of an individual with respect to an employer associated with a modification of benefits under a foreign plan (as defined by subsection 8308.1(1)) is greater than nil, the employer shall, on or before the last day of February in the year following the calendar year in which the individual’s benefits were modified, file with the Minister an information return in prescribed form reporting the foreign plan PSPA. Where a specified retirement arrangement PSPA (computed under subsection 8308.3(4) or (5)) of an individual with respect to an employer associated with a modification of benefits under a specified retirement arrangement (as defined by subsection 8308.3(1)) is greater than nil, the employer shall, on or before the last day of February in the calendar year following the calendar year in which the individual’s benefits were modified, file with the Minister an information return in prescribed form reporting the specified retirement arrangement PSPA. The administrator of a registered pension plan shall file with the Minister an information return in prescribed form within 120 days after a contribution is made to the plan in respect of an individual under subsection 147.1(20) of the Act. Where the PAR determined in connection with an individual’s termination from a deferred profit sharing plan is greater than nil, each trustee under the plan shall file with the Minister an information return in prescribed form reporting the PAR where the termination occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the termination occurs, and where the termination occurs in the fourth quarter of a calendar year, before February of the following calendar year, and, for this purpose, an information return filed by a trustee under a deferred profit sharing plan is deemed to have been filed by each trustee under the plan. Where an amount included in an individual’s pension credit in respect of an employer under a deferred profit sharing plan is included in determining a PAR in connection with the individual’s termination from the plan, the employer is deemed to be a trustee under the plan for the purpose of reporting the PAR. Subject to subsection (4), where the PAR determined in connection with an individual’s termination from a benefit provision of a registered pension plan is greater than nil, the administrator of the plan shall file with the Minister an information return in prescribed form reporting the PAR where the termination occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the termination occurs; and where the termination occurs in the fourth quarter of a calendar year, before February of the following calendar year. Where, in determining an individual’s PAR in connection with the individual’s termination from a defined benefit provision of a registered pension plan, it is reasonable for the administrator of the plan to conclude, on the basis of information provided to the administrator by the administrator of another pension plan or by the individual, that the value of D in paragraph 8304.1(5)(a) in respect of the termination may be greater than nil, the administrator shall file with the Minister an information return in prescribed form reporting the PAR, if it is greater than nil, on or before the later of the day on or before which it would otherwise be required to be filed; and the day that is 60 days after the earliest day on which the administrator has all the information required to determine that value. If a pension adjustment correction under subsection 8304.1(16) is determined for an individual in connection with a distribution from a registered pension plan (other than a pension adjustment correction that is nil), the administrator of the plan shall file with the Minister an information return in prescribed form reporting the pension adjustment correction if the distribution occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the distribution occurs; and if the distribution occurs in the fourth quarter of a calendar year, before February of the following calendar year. the first quarter of a calendar year is the period beginning on January 1 and ending on March 31 of the calendar year; the second quarter of a calendar year is the period beginning on April 1 and ending on June 30 of the calendar year; the third quarter of a calendar year is the period beginning on July 1 and ending on September 30 of the calendar year; and the fourth quarter of a calendar year is the period beginning on October 1 and ending on December 31 of the calendar year. Where an amount is prescribed by subsection 8308.4(2) in respect of an individual for a calendar year because of the individual’s entitlement (either absolute or contingent) to benefits under a government-sponsored retirement arrangement (as defined in subsection 8308.4(1)), the administrator of the arrangement shall, on or before the last day of February in the year, file with the Minister an information return in prescribed form reporting the prescribed amount. Where, at any particular time after 1990, each employer who participates in the plan for the benefit of the individual and with whom the individual is connected (within the meaning assigned by subsection 8500(3)) at the particular time, or was connected at any time after 1989, shall, within 60 days after the particular time, file with the Minister an information return in prescribed form containing prescribed information with respect to the individual unless the employer has previously filed an information return under this section with respect to the individual. Every person who is required by section 8401 or 8402.1 to file an information return with the Minister shall, on or before the day on or before which the return is required to be filed with the Minister, send to each individual to whom the return relates, two copies of the portion of the return that relates to the individual. Every person who is required by section 8402, 8402.01 or 8403 to file an information return with the Minister shall, on or before the day on or before which the return is required to be filed with the Minister, send to each individual to whom the return relates, one copy of the portion of the return that relates to the individual. Every person who obtains a certification from the Minister for the purposes of subsection 147.1(10) of the Act in respect of a past service event and an individual shall, within 60 days after receiving from the Minister the form submitted to the Minister pursuant to subsection 8307(1) in respect of the past service event and the individual, forward to the individual one copy of the form as returned by the Minister. Every person who is required by subsection (1), (2) or (3) to forward a copy of an information return or a form to an individual shall send the copy to the individual at the individual’s latest known address or deliver the copy to the individual in person.

Subsection 205(2) and section 206 are applicable, with such modifications as the circumstances require, in respect of returns required to be filed under this Part. Where a person who is required to file an information return under section 8401 requires information from another person in order to determine an amount that is to be reported or to otherwise complete the return and makes a written request to the other person for the information, the other person shall provide the person with the information that is available to that other person, where the information return is required to be filed in the calendar year in which the request is received, within 30 days after receipt of the request; or in any other case, by January 31 of the year immediately following the calendar year in which the request is received. Where the administrator of a registered pension plan requires information from a person in order to determine a provisional PSPA of an individual under section 8303, 8304 or 8308 and makes a written request to the person for the information, the person shall, within 30 days after receipt of the request, provide the administrator with the information that is available to the person. Where the administrator of a registered pension plan requires information from a person in order to complete an information return required to be filed under section 8409 and makes a written request to the person for the information, the person shall, within 30 days after receipt of the request, provide the administrator with the information that is available to that person. Where a person requires information from another person in order to determine a PAR under section 8304.1 in connection with an individual’s termination in a calendar year from a deferred profit sharing plan or from a benefit provision of a registered pension plan (other than information that the other person is required to provide to the person under subsection (5)) and makes a written request to the other person for the information, the other person shall provide the person with the information that is available to the other person on or before if the request is received before December 17 of the year, the day that is 30 days after the day on which the request is received; and in any other case, the later of the day that is 15 days after the day on which the request is received and January 15 of the year following the year. Where benefits provided to an individual under a registered pension plan (in this subsection referred to as the “importing plan”) as a consequence of a past service event result in a PA transfer amount in relation to the individual’s termination from a defined benefit provision of another registered pension plan (in this subsection referred to as the “exporting plan”), the administrator of the importing plan shall, in writing on or before the day that is 30 days after the day on which the past service event occurred, notify the administrator of the exporting plan of the occurrence of the past service event and of its relevance in determining the individual’s PAR in connection with the individual’s termination from the defined benefit provision; and the administrator of the importing plan shall notify the administrator of the exporting plan of the PA transfer amount in writing on or before the day that is 60 days after in the case of a certifiable past service event, the day on which the Minister issues a certification for the purposes of subsection 147.1(10) of the Act in respect of the past service event and the individual, and in any other case, the day on which the past service event occurred. an individual who has withdrawn an amount from a registered retirement savings plan under which the individual was, at the time of the withdrawal, the annuitant (as defined in subsection 146(1) of the Act) provides to the issuer (as defined in subsection 146(1) of the Act) of the plan, in the calendar year in which the amount was withdrawn or one of the two immediately following calendar years, the prescribed form referred to in subparagraph 8307(3)(a)(ii) accompanied by a request that the issuer complete the form in respect of the withdrawal, and the issuer has not, at the time of receipt of the request, forwarded to the individual 2 copies of the information return required by subsection 214(1) to be made by the issuer in respect of the withdrawal, and does not, within 30 days after receipt of the request, forward to the individual 2 copies of that return, the issuer shall, within 30 days after receipt of the request, complete those portions of the form that the form indicates are required to be completed by the issuer in respect of the withdrawal and return the form to the individual. The Minister may, by notice served personally or by registered or certified mail, require that a person provide the Minister, within such reasonable time as is stipulated in the notice, with information relating to the determination of amounts under Part LXXXIII; where the person claims that paragraph 147.1(10)(a) of the Act is not applicable with respect to an individual and a past service event by reason of an exemption provided by regulation, information relevant to the claim; or information for the purpose of determining whether the registration of a pension plan may be revoked. Where a person fails to provide the Minister with information pursuant to a requirement under subsection (1), each registered pension plan and deferred profit sharing plan to which the information relates becomes a revocable plan as of the day on or before which the information was required to be provided. The administrator of a registered pension plan that is administered under the supervision of a government regulator shall file an information return for a fiscal period of the plan in prescribed form and containing prescribed information where an agreement concerning annual information returns has been entered into by the Minister and a regulator identified in subsection (2), with that regulator, on or before the day that an information return required by that regulator is to be filed for the fiscal period; and in any other case, with the Minister on or before the day that is 180 days after the end of the fiscal period. For the purposes of paragraph (1)(a), the following government regulators have entered into an agreement concerning annual information returns with the Minister: the Office of the Superintendent of Financial Institutions; the Financial Services Regulatory Authority of Ontario; Retraite Québec; the Superintendent of Pensions, Province of Nova Scotia; the Superintendent of Pensions, Province of New Brunswick; the Office of the Superintendent - Pension Commission, Province of Manitoba; the Superintendent of Pensions, Province of British Columbia; the Superintendent of Pensions, Province of Saskatchewan; the Superintendent of Pensions, Province of Alberta; and the Superintendent of Pensions, Province of Newfoundland and Labrador. The administrator of a registered pension plan shall, within 60 days after the final distribution of property held in connection with the plan, notify the Minister in writing of the date of the distribution and the method of settlement. The administrator of a registered pension plan that contains a defined benefit provision shall, on demand from the Minister served personally or by registered or certified mail and within such reasonable time as is stipulated in the demand, file with the Minister a report prepared by an actuary on the basis of reasonable assumptions and in accordance with generally accepted actuarial principles and containing such information as is required by the Minister in respect of the defined benefit provisions of the plan. active member of a pension plan in a calendar year means a member of the plan to whom benefits accrue under a defined benefit provision of the plan in respect of all or any portion of the year or who makes contributions, or on whose behalf contributions are made, in relation to the year under a money purchase provision of the plan; (participant actif) average Consumer Price Index for a calendar year means the amount that is obtained by dividing by 12 the aggregate of all amounts each of which is the Consumer Price Index for a month in the 12-month period ending on September 30 of the immediately preceding calendar year; (moyenne de l’indice des prix à la consommation) beneficiary of an individual means a person who has a right, by virtue of the participation of the individual in a pension plan, to receive benefits under the plan after the death of the individual; (bénéficiaire) benefit provision of a pension plan means a money purchase or defined benefit provision of the plan; (version anglaise seulement) bridging benefits provided to a member under a benefit provision of a pension plan means retirement benefits payable to the member under the provision for a period ending no later than on a date determinable at the time the benefits commence to be paid; (prestation de raccordement) Consumer Price Index for a month means the Consumer Price Index for Canada for the month as published by Statistics Canada under the authority of the Statistics Act; (indice des prix à la consommation) defined benefit limit for a calendar year means the greater of $1,722.22, and 1/9 of the money purchase limit for the year; (plafond des prestations déterminées) dependant of an individual at the time of the individual’s death means a parent, grandparent, brother, sister, child or grandchild of the individual who, at that time, is both dependent on the individual for support and under 19 years of age and will not attain 19 years of age in the calendar year that includes that time, in full-time attendance at an educational institution, or dependent on the individual by reason of mental or physical infirmity; (personne à charge) designated plan has the meaning assigned by section 8515; (régime désigné) disabled means, in relation to an individual, suffering from a physical or mental impairment that prevents the individual from performing the duties of the employment in which the individual was engaged before the commencement of the impairment; (invalide) eligible period of reduced pay of an employee with respect to an employer means a period (other than a period in which the employee is, at any time after 1990, connected with the employer or a period any part of which is a period of disability of the employee) that begins after the employee has been employed by the employer or predecessor employers to the employer for not less than three months, throughout which the employee renders services to the employer, and throughout which the remuneration received by the employee from the employer is less than the remuneration that it is reasonable to expect the employee would have received from the employer had the employee rendered services throughout the period on a regular basis (having regard to the services rendered by the employee to the employer before the period) and had the employee’s rate of remuneration been commensurate with the employee’s rate of remuneration before the period; (période admissible de salaire réduit) eligible period of temporary absence of an individual with respect to an employer means a period throughout which the individual does not render services to the employer by reason of leave of absence, layoff, strike, lock-out or any other circumstance acceptable to the Minister, other than a period a part of which is a period of disability of the individual, or in which the individual is, at any time after 1990, connected with the employer; (période admissible d’absence temporaire) eligible survivor benefit period, in relation to a person who is a dependant of an individual at the time of the individual’s death, means the period beginning on the day of death of the individual and ending on the latest of where the dependant is under 19 years of age throughout the calendar year that includes the day of death of the individual, the earlier of December 31 of the calendar year in which the dependant attains 18 years of age, and the day of death of the dependant, where the dependant is in full-time attendance at an educational institution on the later of the day of death of the individual and December 31 of the calendar year in which the dependant attains 18 years of age, the day on which the dependant ceases to be in full-time attendance at an educational institution, and where the dependant is dependent on the individual at the time of the individual’s death by reason of mental or physical infirmity, the day on which the dependant ceases to be infirm or, if there is no such day, the day of death of the dependant; (période admissible de prestations au survivant) existing plan means a pension plan that was a registered pension plan on March 27, 1988 or in respect of which an application for registration was made to the Minister before March 28, 1988, and includes a pension plan that was established before March 28, 1988 pursuant to an Act of Parliament that deems member contributions to be contributions to a registered pension plan; (régime existant) forfeited amount under a money purchase provision of a pension plan means an amount to which a member of the plan has ceased to have any rights, other than the portion thereof, if any, that is payable to a beneficiary of the member as a consequence of the member’s death, or to a spouse or common-law partner or former spouse or common-law partner of the member as a consequence of the breakdown of their marriage or common-law partnership; (montant perdu) grandfathered plan means an existing plan that, on March 27, 1988, contained a defined benefit provision, or a pension plan that was established to provide benefits under a defined benefit provision to one or more individuals in lieu of benefits to which the individuals were entitled under a defined benefit provision of another pension plan that is a grandfathered plan, whether or not benefits are also provided to other individuals; (régime exclu) IPP minimum amount, for a year, for a person who is a member of an individual pension plan (or a beneficiary, in respect of the plan, who was, at the time of the member’s death, a spouse or common-law partner of the member) means if there is only one such person in respect of the plan, the minimum amount that would be determined under subsection 146.3(1) of the Act for the year in respect of the plan if the plan were a registered retirement income fund that held the same property as the property held by the plan and the person were the annuitant of the fund, and in any other case, the minimum amount that would be determined under subsection 146.3(1) of the Act if the person were the annuitant of a registered retirement income fund and the fair market value of the property held in connection with the fund at the beginning of the year were determined by the formula is the fair market value of all property held in connection with the plan at the beginning of the year, is the amount of the actuarial liabilities in respect of the benefits payable to the person under the terms of the plan at the beginning of the year, and is the amount of the actuarial liabilities in respect of all benefits payable under the terms of the plan at the beginning of the year; (minimum RRI) lifetime retirement benefits provided to a member under a benefit provision of a pension plan means retirement benefits provided to the member under the provision that, after they commence to be paid, are payable to the member until the member’s death, unless the benefits are commuted or payment of the benefits is suspended, and for greater certainty, retirement benefits provided to the member under the provision in accordance with paragraph 8506(1)(e.1); (prestation viagère) multi-employer plan in a calendar year means a pension plan in respect of which it is reasonable to expect, at the beginning of the year (or at the time in the year when the plan is established, if later), that at no time in the year will more than 95 per cent of the active members of the plan be employed by a single participating employer or by a related group of participating employers, other than a plan where it is reasonable to consider that one of the main reasons there is more than one employer participating in the plan is to obtain the benefit of any of the provisions of the Act or these Regulations that are applicable only in respect of multi-employer plans, or a pension plan that is, in the year, a specified multi-employer plan, and, for the purposes of this definition, 2 corporations that are related to each other solely by reason that they are both controlled by Her Majesty in right of Canada or a province shall be deemed not to be related persons; (régime interentreprises) pensionable service of a member of a pension plan under a defined benefit provision of the plan means the periods in respect of which lifetime retirement benefits are provided to the member under the provision; (services validables) period of disability of an individual means a period throughout which the individual is disabled; (période d’invalidité) predecessor employer means, in relation to a particular employer, an employer (in this definition referred to as the “vendor”) who has sold, assigned or otherwise disposed of all or part of the vendor’s business or undertaking or all or part of the assets of the vendor’s business or undertaking to the particular employer or to another employer who, at any time after the sale, assignment or other disposition, becomes a predecessor employer in relation to the particular employer, if all or a significant number of employees of the vendor have, in conjunction with the sale, assignment or disposition, become employees of the employer acquiring the business, undertaking or assets; (employeur remplacé) public pension benefits means amounts that are payable on a periodic basis under the Canada Pension Plan, a provincial pension plan as defined in section 3 of the Canada Pension Plan, or Part I of the Old Age Security Act, but does not include disability, death or survivor benefits provided under those Acts; (prestation de pension de l’État) public safety occupation means the occupation of firefighter, police officer, corrections officer, air traffic controller, commercial airline pilot, or paramedic; (profession liée à la sécurité publique) retirement benefits provided to an individual under a benefit provision of a pension plan means benefits provided to the individual under the provision that are payable on a periodic basis; (prestation de retraite) surplus under a money purchase provision of a pension plan at any time means such portion, if any, of the amount held at that time in respect of the provision as has not been allocated to members and is not reasonably attributable to contributions made under the provision by an employer that will be allocated to members as part of the regular allocation of such contributions, or earnings of the plan (other than earnings that are reasonably attributable to the surplus under the provision before that time) that will be allocated to members as part of the regular allocation of such earnings; (surplus) totally and permanently disabled means, in relation to an individual, suffering from a physical or mental impairment that prevents the individual from engaging in any employment for which the individual is reasonably suited by virtue of the individual’s education, training or experience and that can reasonably be expected to last for the remainder of the individual’s lifetime; (invalidité totale et permanente) Year’s Additional Maximum Pensionable Earnings for a calendar year has the meaning assigned by section 18.1 of the Canada Pension Plan; (maximum supplémentaire des gains annuels ouvrant droit à pension) Year’s Maximum Pensionable Earnings for a calendar year has the meaning assigned by section 18 of the Canada Pension Plan. (maximum des gains annuels ouvrant droit à pension) The definition surplus in subsection (1) applies for the purpose of subsection 147.3(7.1) of the Act. The definition predecessor employer in subsection (1) applies for the purpose of subsection 147.2(8) of the Act. For the purpose of determining under subsection 8507(3) whether a period in a calendar year is a qualifying period of an individual in the year with respect to an employer, the definition eligible period of reduced pay in subsection (1) is, in respect of the individual and the employer for the calendar year 2020 or 2021, modified as follows: it is to be read without reference to its paragraph (a); and its paragraph (c) is to be read as follows: throughout which the remuneration received by the employee from the employer is less than the remuneration so received before the period; (période admissible de salaire réduit) All words and expressions used in this Part that are defined in subsection 147.1(1) of the Act or in Part LXXXIII have the meanings assigned in those provisions. For the purposes of this Part, a person is connected with an employer at any time where, at that time, the person owns, directly or indirectly, not less than 10 per cent of the issued shares of any class of the capital stock of the employer or of any other corporation that is related to the employer, does not deal at arm’s length with the employer, or is a specified shareholder of the employer by reason of paragraph (d) of the definition specified shareholder in subsection 248(1) of the Act, and, for the purposes of this subsection, a person shall be deemed to own, at any time, each share of the capital stock of a corporation owned, at that time, by a person with whom the person does not deal at arm’s length, where shares of the capital stock of a corporation are owned at any time by a trust, if the share of any beneficiary in the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, any discretionary power, each beneficiary of the trust shall be deemed to own, at that time, all the shares owned by the trust, and in any other case, each beneficiary of a trust shall be deemed to own, at that time, that proportion of the shares owned by the trust that the fair market value at that time of the beneficiary’s beneficial interest in the trust is of the fair market value at that time of all beneficial interests in the trust, each member of a partnership shall be deemed to own, at any time, that proportion of all shares of the capital stock of a corporation that are property of the partnership at that time that the fair market value at that time of the member’s interest in the partnership is of the fair market value at that time of the interests of all members in the partnership, and a person who, at any time, has a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to, or to acquire, shares of the capital stock of a corporation shall be deemed to own, at that time, those shares if one of the main reasons for the existence of the right may reasonably be considered to be that the person not be connected with an employer. For the purpose of this Part, spouse and former spouse of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual. Where this Part provides that an amount is to be determined by aggregating the durations of periods that satisfy specified conditions, a period shall be included in determining the aggregate only if it is not part of a longer period that satisfies the conditions. For the purposes of the definition active member in subsection (1), subparagraph 8503(3)(a)(v) and paragraphs 8504(7)(d), 8506(2)(c.1) and 8507(3)(a), the portion of an amount allocated to an individual at any time under a money purchase provision of a registered pension plan that is attributable to property transferred to the provision in respect of the surplus under another money purchase provision of the plan or under a money purchase provision of another registered pension plan shall be deemed to be a contribution made under the provision on behalf of the individual at that time. Where an individual who is entitled to receive benefits (in this subsection referred to as “member benefits”) under a pension plan because of the individual’s membership in the plan is also entitled to receive other benefits (in this subsection referred to as “non-member benefits”) under the plan or under any other pension plan solely because of the participation of another individual in the plan or in the other plan, the following rules apply: for the purpose of determining whether the member benefits are permissible under this Part, the non-member benefits shall be disregarded; for the purpose of determining whether the non-member benefits are permissible under this Part, the member benefits shall be disregarded; and for the purpose of determining a pension adjustment, pension adjustment reversal or provisional past service pension adjustment of the individual under Part LXXXIII, the non-member benefits shall be disregarded. For the purposes of paragraph 147.3(6)(b) of the Act and subparagraphs 8502(d)(iv) and 8503(2)(h)(iii), if an amount is transferred in accordance with subsection 147.3(3) of the Act to a defined benefit provision (referred to in this subsection as the “current provision”) of a registered pension plan from a defined benefit provision (referred to in this subsection as the “former provision”) of another registered pension plan on behalf of all or a significant number of members whose benefits under the former provision are replaced by benefits under the current provision, each current service contribution made at a particular time under the former provision by a member whose benefits are so replaced is deemed to be a current service contribution made at that particular time under the current provision by the member. For the purposes of section 147.1 of the Act, and subject to sections 8509 and 8510, the prescribed conditions for the registration of a pension plan are the conditions set out in paragraphs 8502(a), (c), (e), (f) and (l), if the plan contains a defined benefit provision, the conditions set out in paragraphs 8503(4)(a) and (c), and if the plan contains a money purchase provision, the conditions set out in paragraphs 8506(2)(a) and (d), and the following conditions: there is no reason to expect, on the basis of the documents that constitute the plan and establish the funding arrangements, that the plan may become a revocable plan pursuant to subsection (2), or the conditions in subsection 147.1(10) of the Act may not be complied with, and there is no reason to expect that the plan may become a revocable plan under subsection 147.1(8) or (9) of the Act or subsections 8503(15) or (26) or 8506(4). For the purposes of paragraph 147.1(11)(c) of the Act, and subject to sections 8509 and 8510, a registered pension plan becomes a revocable plan at any time that it fails to comply with a condition set out in any of paragraphs 8502(b), (d), (g) to (k) and (m); where the plan contains a defined benefit provision, a condition set out in paragraph 8503(3)(a), (b), (d), (j), (k) or (l) or (4)(b), (d), (e) or (f); or where the plan contains a money purchase provision, a condition set out in any of paragraphs 8506(2)(b) to (c.1) and (e) to (i). The conditions in this Part do not apply in respect of a pension plan to the extent that they are inconsistent with the provisions of subsections 8503(6) and (8) and 8505(3) and (4). the benefits provided under a pension plan (in this subsection referred to as the “supplemental plan”) that contains one defined benefit provision and no money purchase provisions may reasonably be considered to be supplemental to the benefits provided under a defined benefit provision (in this subsection referred to as the “base provision”) of another pension plan, the supplemental plan does not otherwise comply with the condition set out in paragraph 8502(a) or the condition set out in paragraph 8502(c), and the Minister has approved the application of this subsection, which approval has not been withdrawn, for the purpose of determining whether the supplemental plan complies with the conditions in paragraphs 8502(a) and (c), the benefits provided under the base provision shall be considered to be provided under the supplemental plan. an individual who is a spouse or common-law partner or former spouse or common-law partner of a member of a registered pension plan is entitled to receive all or a portion of the benefits that would otherwise be payable under the plan to the member, and the entitlement was created by assignment of benefits by the member, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership, or by a provision of the law of Canada or a province applicable in respect of the division of property between the member and the individual, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership, except where paragraph (d) applies, the benefits to which the individual is entitled are, for the purposes of this Part, deemed to be benefits provided and payable to the member, and the benefits to which the individual is entitled are, for the purposes of this Part, deemed to be benefits provided and payable to the individual and not provided or payable to the member where the entitlement of the individual was created by a provision of the law of Canada or a province described in subparagraph (b)(ii), and that provision requires that benefits commence to be paid to the individual at a time that may be different from the time benefits commence to be paid to the member, or gives the individual any rights in respect of the benefits to which the individual is entitled in addition to the rights that the individual would have as a consequence of an assignment by the member, in whole or in part, of the member’s right to benefits under the plan. Where an employer or individual makes payments to a trade union or an association of employers (in this subsection referred to as the “contributing entity”) to enable the contributing entity to make contributions to a pension plan, such portion of a contribution made by the contributing entity to the plan as is reasonably attributable to a payment made to the contributing entity by an employer or individual shall, for the purposes of the conditions in this Part, be considered to be a contribution made by the employer or individual, as the case may be, and not by the contributing entity. For the purposes of the conditions in this Part (other than subparagraph 8510(9)(b)(i)), a contribution made by a member of a pension plan in respect of a defined benefit provision of the plan is deemed to be a current service contribution made by the member in respect of the member’s benefits under the provision if the contribution cannot, but for this subsection, reasonably be considered to be made in respect of the member’s benefits under the provision; the contribution is determined by reference to the actuarial liabilities under the provision in respect of periods before the time of the contribution; and the contribution is made pursuant to an arrangement under which all, or a significant number, of the active members of the plan are required to make similar contributions, the main purpose of which is to ensure that the plan has sufficient assets to pay benefits under the provision, and that is approved by the Minister. For the purpose of paragraph 147.2(4)(a) of the Act, a contribution described in subsection (6.1) is a prescribed eligible contribution. a single amount is paid in full or partial satisfaction of an individual’s entitlement to retirement benefits (in this subsection referred to as the “commuted benefits”) under a defined benefit provision of a registered pension plan, other benefits are subsequently provided to the individual under the provision as a consequence of an allocation, on full or partial wind-up of the plan, of an actuarial surplus under the provision, the other benefits include benefits (in this subsection referred to as “ancillary benefits”) that, but for this subsection, would not be permissible under this Part, if the individual had previously terminated from the provision and the conditions in subsection 8304.1(14) were satisfied with respect to the termination, it is reasonable to consider that all of the ancillary benefits are in respect of periods before 1990, and the Minister has approved the application of this subsection in respect of the ancillary benefits, for the purpose of determining whether the ancillary benefits are permissible under this Part, the individual is considered to have an entitlement under the provision to the commuted benefits. For the purposes of section 8501, the following conditions are applicable in respect of a pension plan: the primary purpose of the plan is to provide periodic payments to individuals after retirement and until death in respect of their service as employees; each contribution that is made to the plan after 1990 is an amount that is paid by a member of the plan in accordance with the plan as registered, where the amount is credited to the member’s account under a money purchase provision of the plan or is paid in respect of the member’s benefits under a defined benefit provision of the plan, is paid in accordance with a money purchase provision of the plan as registered, by an employer with respect to the employer’s employees or former employees, is an eligible contribution that is paid in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees, is transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (8) and 147.5(21) of the Act, is acceptable to the Minister and that is transferred to the plan from a pension plan that is maintained primarily for the benefit of non-residents in respect of services rendered outside Canada, or is paid by the trustee of a trust described in paragraph 6802(h) or (i), where the amount would have been an eligible contribution if the amount had been paid in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees, an eligible contribution is a contribution that is paid by an employer in respect of a defined benefit provision of a pension plan where it is an eligible contribution under subsection 147.2(2) of the Act or, in the case of a plan in which Her Majesty in right of Canada or a province is a participating employer, would be an eligible contribution under subsection 147.2(2) of the Act if all amounts held to the credit of the plan in the accounts of Canada or the province were excluded from the assets of the plan, and the portion of each contribution that is made by Her Majesty in right of Canada or of a province, or by a person described in paragraph 4802(1)(d), in respect of a defined benefit provision of the plan and that can reasonably be considered to be made with respect to one or more employees or former employees of another person is deemed to be a contribution made by that other person; the plan does not provide for, and its terms are such that it will not under any circumstances provide for, any benefits other than benefits that are provided under one or more defined benefit provisions and are in accordance with subsection 8503(2), paragraphs 8503(3)(c) and (e) to (i) and section 8504, that are provided under one or more money purchase provisions and are in accordance with subsection 8506(1), that the plan is required to provide by reason of a designated provision of the law of Canada or a province, or that the plan would be required to provide if each such provision were applicable to the plan with respect to all its members, or that the plan is required to provide to an individual who is a spouse or common-law partner or former spouse or common-law partner of a member of the plan by reason of a provision of the law of Canada or a province applicable in respect of the division of property between the member and the individual, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership; each distribution that is made from the plan is a payment of benefits in accordance with the plan as registered, a transfer of property held in connection with the plan where the transfer is made in accordance with subsection 147.3(3), (4.1), (7.1) or (8) of the Act, a return of all or a portion of the contributions made by a member of the plan or an employer who participates in the plan, where the payment is made to avoid the revocation of the registration of the plan, a return of all or a portion of the contributions made by a member of the plan under a defined benefit provision of the plan, where the return of contributions is pursuant to an amendment to the plan that also reduces the future contributions that would otherwise be required to be made under the provision by members, a payment of interest (computed at a rate not exceeding a reasonable rate) in respect of contributions that are returned as described in subparagraph (iii) or (iv), a payment in full or partial satisfaction of the interests of a person in an actuarial surplus that relates to a defined benefit provision of the plan, a payment to an employer of property held in connection with a money purchase provision of the plan, where the Minister has, under subsection 8506(2.1), waived the application of the condition in paragraph 8506(2)(b.1) in respect of a money purchase provision of the plan, a payment under the provision of an amount acceptable to the Minister, a payment, other than a payment described in subparagraph (i), with respect to a member of a single amount that the plan is required to make because of the Pension Benefits Standards Act, 1985 or a similar law of a province, where the single amount is not transferred directly to another registered pension plan, a registered retirement savings plan or a registered retirement income fund, or the portion of the IPP minimum amount for an individual that is not described in subparagraph (i). the plan requires that the retirement benefits of a member under each benefit provision of the plan begin to be paid not later than the end of the calendar year in which the member attains 71 years of age except that, in the case of benefits provided under a defined benefit provision, the benefits may begin to be paid at any later time that is acceptable to the Minister, if the amount of benefits (expressed on an annualized basis) payable does not exceed the amount of benefits that would be payable if payment of the benefits began at the end of the calendar year in which the member attains 71 years of age, in the case of benefits provided under a money purchase provision in accordance with paragraph 8506(1)(e.1), the benefits may begin to be paid not later than the end of the calendar year in which the member attains 72 years of age, and in the case of benefits provided under a money purchase provision in accordance with paragraph 8506(1)(e.2), the benefits may begin to be paid not later than the later of the end of the calendar year in which the member attains 71 years of age, and the end of the calendar year in which a transfer was made from the member’s account to acquire rights under the VPLA fund, and provides that retirement benefits under each benefit provision are payable not less frequently than annually; the plan includes a stipulation that no right of a person under the plan is capable of being assigned, charged, anticipated, given as security or surrendered, and, for the purposes of this condition, assignment does not include assignment pursuant to a decree, order or judgment of a competent tribunal or a written agreement in settlement of rights arising out of a marriage or common-law partnership between an individual and the individual’s spouse or common-law partner or former spouse or common-law partner, on or after the breakdown of their marriage or common-law partnership, or assignment by the legal representative of a deceased individual on the distribution of the individual’s estate, and surrender does not include a reduction in benefits to avoid the revocation of the registration of the plan, or a surrender of retirement benefits payable to a beneficiary of a member after the member’s death, to the extent permitted under the Pension Benefits Standards Act, 1985 or a similar law of a province; the arrangement under which property is held in connection with the plan is acceptable to the Minister; the property that is held in connection with the plan does not include a prohibited investment under subsection 8514(1), at any time that the plan is subject to the Pension Benefits Standards Act, 1985 or a similar law of a province, an investment that is not permitted at that time under such laws as apply to the plan, or at any time other than a time referred to in subparagraph (ii), an investment that would not be permitted were the plan subject to the Pension Benefits Standards Act, 1985; subject to paragraph (i.2), a trustee or other person who holds property in connection with the plan does not borrow money for the purposes of the plan, except where the borrowing is for a term not exceeding 90 days, the borrowing is not part of a series of loans or other transactions and repayments, and none of the property that is held in connection with the plan is used as security for the borrowed money (except where the borrowing is necessary to provide funds for the current payment of benefits or the purchase of annuities under the plan without resort to a distressed sale of the property that is held in connection with the plan), or where the money is borrowed for the purpose of acquiring real property that may reasonably be considered to be acquired for the purpose of producing income from property, the aggregate of all amounts borrowed for the purpose of acquiring the property and any indebtedness incurred as a consequence of the acquisition of the property does not exceed the cost to the person of the property, and none of the property that is held in connection with the plan, other than the real property, is used as security for the borrowed money; in their application to loans that are entered into after April 2020 and before February 2022, subparagraphs (i)(i) and (ii) are to be read as follows: the loan or, if the loan is part of a series of loans or repayments, the series of loans and repayments is repaid no later than April 30, 2022, and in the case of a defined benefit provision of the plan (other than an individual pension plan), a trustee or other person who holds property in connection with the provision does not borrow money for the purposes of the provision, except in the circumstances described in paragraph (i) or if, at the time an amount is borrowed the difference between A and B in subparagraph (ii) does not exceed 125% of the actuarial liabilities (determined on the effective date of the plan’s most recent actuarial report) in respect of the provision, and the total of the borrowed amount and the amount of any other outstanding borrowings in respect of the provision (other than an amount described in paragraph (i)) does not exceed the amount determined by the formula is the value of the plan assets in respect of the provision on the first day of the fiscal period of the plan in which the amount is borrowed, and is the amount of outstanding borrowings in respect of the provision, determined on the first day of the fiscal period in which the amount is borrowed; except as otherwise provided in this Part, each amount that is determined in connection with the plan is determined, where the amount is based on assumptions, using such reasonable assumptions as are acceptable to the Minister, and, where actuarial principles are applicable to the determination, in accordance with generally accepted actuarial principles; property that is held in connection with a benefit provision of the plan is not made available to pay benefits under another benefit provision of the plan (including another benefit provision that replaces the first benefit provision), except where the transaction by which the property is made so available is such that if the benefit provisions were in separate registered pension plans, the transaction would constitute a transfer of property from one plan to the other in accordance with any of subsections 147.3(1) to (4.1), (6), (7.1) and (8) of the Act; the plan terms are not such that an amount that is determined under Part LXXXIII in respect of the plan would be inappropriate having regard to the provisions of that Part read as a whole and the purposes for which the amount is determined; and no individual who, at any time after 1993, is entitled, either absolutely or contingently, to benefits under the plan because of employment with an employer with whom the individual is connected is entitled at that time, either absolutely or contingently, to benefits under a government-sponsored retirement arrangement (as defined in subsection 8308.4(1)). In this section and subsection 8517(2), the net contribution account of a member of a pension plan in relation to a defined benefit provision of the plan is an account that is credited with the amount of each contribution that is made by the member to the plan in respect of the provision, each amount that is transferred on behalf of the member to the plan in respect of the provision in accordance with any of subsections 146(16), 147(19) and 147.3(2) and (5) to (7) of the Act, such portion of each amount that is transferred to the plan in respect of the provision in accordance with subsection 147.3(3) of the Act as may reasonably be considered to derive from contributions that are made by the member to a registered pension plan or interest (computed at a reasonable rate) in respect of those contributions, the amount of any property that was held in connection with another benefit provision of the plan and that has been made available to provide benefits under the provision, to the extent that if the provisions were in separate registered pension plans, the amount would be included in the member’s net contribution account by reason of subparagraph (ii) or (iii), and interest (computed at a reasonable rate determined by the plan administrator) in respect of each period throughout which the account has a positive balance; and charged with each amount that is paid under the provision with respect to the member, otherwise than in respect of an actuarial surplus under the provision, the amount of any property that is held in connection with the provision (other than property that is in respect of an actuarial surplus under the provision) and that is made available to provide benefits with respect to the member under another benefit provision of the plan, and interest (computed at a reasonable rate determined by the plan administrator) in respect of each period throughout which the account has a negative balance. For the purposes of paragraph 8502(c), the following benefits may, subject to the conditions set out in respect of each benefit, be provided under a defined benefit provision of a pension plan:

lifetime retirement benefits provided to a member where the benefits are payable in equal periodic amounts, or are not so payable only by reason that the benefits payable to a member after the death of the member’s spouse or common-law partner are less than the benefits that would be payable to the member were the member’s spouse or common-law partner alive, the plan provides for periodic cost-of-living adjustments to be made to the benefits, where the adjustments are determined in such a manner that they do not exceed cost-of-living adjustments warranted by increases in the Consumer Price Index after the benefits commence to be paid, consist of periodic increases at a rate not exceeding 4 per cent per annum after the time the benefits commence to be paid, are based on the rates of return on a specified pool of assets after the benefits commence to be paid, or consist of any combination of adjustments described in clauses (A) to (C), and, in the case of adjustments described in clauses (C) and (D), the present value (at the time the member’s benefits commence to be paid) of additional benefits that can reasonably be expected to be paid as a consequence of the adjustments does not exceed the greater of the present value (at the time the member’s benefits commence to be paid) of additional benefits that could reasonably be expected to be paid as a consequence of adjustments warranted by increases in the Consumer Price Index after the member’s benefits commence to be paid, and the present value (at the time the member’s benefits commence to be paid) of additional benefits that would be paid as a consequence of adjustments at a fixed rate of 4 per cent per annum after the time the member’s benefits commence to be paid, where the plan does not provide for periodic cost-of-living adjustments to be made to the benefits, or provides only for such adjustments as are described in clause (ii)(A) or (B), the plan provides for cost-of-living adjustments to be made to the benefits from time to time at the discretion of any person, where the adjustments, together with periodic cost-of-living adjustments, if any, are warranted by increases in the Consumer Price Index after the benefits commence to be paid, the amount of the benefits is increased as a consequence of additional lifetime retirement benefits becoming provided to the member under the provision; the amount of the benefits is determined with a reduction computed by reference to the member’s age, duration of service, or both (or with any other similar reduction), and the amount is subsequently adjusted to reduce or eliminate the portion, if any, of the reduction that is not required for the benefits to comply with the conditions in paragraph (3)(c), the amount of the benefits is determined with a reduction computed by reference to the following benefits and the amount is subsequently adjusted to reduce or eliminate the reduction: disability benefits to which the member is entitled under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, benefits to which the member is entitled under an employees’ or workers’ compensation law of Canada or a province in respect of an injury or disability, or benefits to which the member is entitled pursuant to a sickness or accident insurance plan or a disability insurance plan, the amount of the benefits is determined with a reduction computed by reference to other benefits provided under the provision in respect of the member that are permissible under paragraph (c), (d), (k) or (n), and the amount is subsequently adjusted to reduce or eliminate the reduction, the amount of the benefits is reduced as a consequence of benefits that are permissible under paragraph (c), (d), (k) or (n) becoming provided under the provision in respect of the member, the amount of the benefits payable to the member while the member is in receipt of remuneration from a participating employer is less than the amount of the benefits that would otherwise be payable to the member if the member were not in receipt of the remuneration, the amount of the benefits is adjusted in accordance with plan terms that were submitted to the Minister before April 19, 2000, where the benefits have commenced to be paid before 2003 and the adjustment is approved by the Minister, or the amount of the benefits is reduced as permitted under the Pension Benefits Standards Act, 1985 or a similar law of a province; bridging benefits provided to a member where the bridging benefits are payable for a period beginning no earlier than the time lifetime retirement benefits commence to be paid under the provision to the member and ending no later than the end of the month immediately following the month in which the member attains 65 years of age, and the amount of the bridging benefits payable for a particular month does not exceed the amount that is determined for that month by the formula is the amount (or a reasonable estimate thereof) of public pension benefits that would be payable to the member for the month in which the bridging benefits commence to be paid to the member if (A)the member were 65 years of age throughout that month, the member were 65 years of age throughout that month, (B)that month were the first month for which public pension benefits were payable to the member, that month were the first month for which public pension benefits were payable to the member, (C)the member were entitled to the maximum amount of benefits payable under the Old Age Security Act, and the member were entitled to the maximum amount of benefits payable under the Old Age Security Act, and (D)the member were entitled to the total of(I)that proportion, not exceeding one, of the maximum benefits that an individual could receive under paragraphs 46(1)(a) and (b) of the Canada Pension Plan (or a similar provision of a provincial pension plan as defined in that Act) that the total of the member’s remuneration for the three calendar years in which the remuneration is the highest is of the total of the Year’s Maximum Pensionable Earnings for those three years (or such other proportion of remuneration to Year’s Maximum Pensionable Earnings as is acceptable to the Minister),(II)that proportion, not exceeding one, of the maximum benefits that an individual could receive under paragraph 46(1)(c) of the Canada Pension Plan (or a similar provision of a provincial pension plan as defined in that Act) that the total of the member’s remuneration in excess of the Year’s Maximum Pensionable Earnings for the three calendar years in which the remuneration is the highest is of the total of the Year’s Additional Maximum Pensionable Earnings in excess of the Year’s Maximum Pensionable Earnings for those three years (or such other proportion as is acceptable to the Minister), the member were entitled to the total of (I)that proportion, not exceeding one, of the maximum benefits that an individual could receive under paragraphs 46(1)(a) and (b) of the Canada Pension Plan (or a similar provision of a provincial pension plan as defined in that Act) that the total of the member’s remuneration for the three calendar years in which the remuneration is the highest is of the total of the Year’s Maximum Pensionable Earnings for those three years (or such other proportion of remuneration to Year’s Maximum Pensionable Earnings as is acceptable to the Minister), that proportion, not exceeding one, of the maximum benefits that an individual could receive under paragraphs 46(1)(a) and (b) of the Canada Pension Plan (or a similar provision of a provincial pension plan as defined in that Act) that the total of the member’s remuneration for the three calendar years in which the remuneration is the highest is of the total of the Year’s Maximum Pensionable Earnings for those three years (or such other proportion of remuneration to Year’s Maximum Pensionable Earnings as is acceptable to the Minister), (II)that proportion, not exceeding one, of the maximum benefits that an individual could receive under paragraph 46(1)(c) of the Canada Pension Plan (or a similar provision of a provincial pension plan as defined in that Act) that the total of the member’s remuneration in excess of the Year’s Maximum Pensionable Earnings for the three calendar years in which the remuneration is the highest is of the total of the Year’s Additional Maximum Pensionable Earnings in excess of the Year’s Maximum Pensionable Earnings for those three years (or such other proportion as is acceptable to the Minister), that proportion, not exceeding one, of the maximum benefits that an individual could receive under paragraph 46(1)(c) of the Canada Pension Plan (or a similar provision of a provincial pension plan as defined in that Act) that the total of the member’s remuneration in excess of the Year’s Maximum Pensionable Earnings for the three calendar years in which the remuneration is the highest is of the total of the Year’s Additional Maximum Pensionable Earnings in excess of the Year’s Maximum Pensionable Earnings for those three years (or such other proportion as is acceptable to the Minister), (A)except where clause (B) is applicable, the number of months, if any, from the date on which the bridging benefits commence to be paid to the member to the date on which the member attains 60 years of age, and except where clause (B) is applicable, the number of months, if any, from the date on which the bridging benefits commence to be paid to the member to the date on which the member attains 60 years of age, and (B)where the member is totally and permanently disabled at the time the bridging benefits commence to be paid to the member and the member was not, at any time after 1990, connected with an employer who has participated in the plan, nil, where the member is totally and permanently disabled at the time the bridging benefits commence to be paid to the member and the member was not, at any time after 1990, connected with an employer who has participated in the plan, nil, is the greatest of all amounts each of which is the ratio of the Consumer Price Index for a month not before the month in which the bridging benefits commence to be paid to the member and not after the particular month, to the Consumer Price Index for the month in which the bridging benefits commence to be paid to the member, and (A)except where clause (B) is applicable, the lesser of 10 and(I)where the member was not, at any time after 1990, connected with an employer who has participated in the plan, the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision, and(II)in any other case, the aggregate that would be determined under subclause (I) if the duration of each period were multiplied by a fraction (not greater than 1) that measures the services rendered by the member throughout the period to employers who participate in the plan as a proportion of the services that would have been rendered by the member throughout the period to such employers had the member rendered services on a full-time basis, and except where clause (B) is applicable, the lesser of 10 and (I)where the member was not, at any time after 1990, connected with an employer who has participated in the plan, the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision, and where the member was not, at any time after 1990, connected with an employer who has participated in the plan, the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision, and (II)in any other case, the aggregate that would be determined under subclause (I) if the duration of each period were multiplied by a fraction (not greater than 1) that measures the services rendered by the member throughout the period to employers who participate in the plan as a proportion of the services that would have been rendered by the member throughout the period to such employers had the member rendered services on a full-time basis, and in any other case, the aggregate that would be determined under subclause (I) if the duration of each period were multiplied by a fraction (not greater than 1) that measures the services rendered by the member throughout the period to employers who participate in the plan as a proportion of the services that would have been rendered by the member throughout the period to such employers had the member rendered services on a full-time basis, and (B)where the member is totally and permanently disabled at the time the bridging benefits commence to be paid to the member and the member was not, at any time after 1990, connected with an employer who has participated in the plan, 10; where the member is totally and permanently disabled at the time the bridging benefits commence to be paid to the member and the member was not, at any time after 1990, connected with an employer who has participated in the plan, 10; retirement benefits (in this paragraph referred to as “continued retirement benefits”) provided to one or more beneficiaries of a member who dies after retirement benefits under the provision commence to be paid to the member where the continued retirement benefits are payable for a period beginning after the death of the member and ending if retirement benefits permissible under paragraph (d) are provided under the provision to a spouse or common-law partner or former spouse or common-law partner of the member, no later than five years, and in any other case, no later than 15 years after the day on which retirement benefits commence to be paid under the provision to the member, and the aggregate amount of continued retirement benefits payable under the provision for each month does not exceed the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive; retirement benefits (in this paragraph referred to as “survivor retirement benefits”) provided to one or more beneficiaries of a member who dies after retirement benefits under the provision commence to be paid to the member where each beneficiary is, at the time of the member’s death, a spouse, a common-law partner, a former spouse, a former common-law partner or a dependant, of the member, the survivor retirement benefits provided to a spouse or common-law partner or former spouse or common-law partner are payable for a period beginning after the death of the member and ending with the death of the spouse or common-law partner or former spouse or common-law partner, the survivor retirement benefits provided to a dependant are payable for a period beginning after the death of the member and ending no later than at the end of the dependant’s eligible survivor benefit period, the amount of survivor retirement benefits payable for each month to a beneficiary does not exceed 66 2/3 per cent of the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive, and the aggregate amount of survivor retirement benefits and other retirement benefits payable under the provision for each month to beneficiaries of the member does not exceed the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive; retirement benefits (in this paragraph referred to as “survivor retirement benefits”) provided to one or more beneficiaries of a member who dies before retirement benefits under the provision commence to be paid to the member where no other benefits (other than benefits permissible under paragraph (g), (j), (l.1) or (n)) are payable as a consequence of the member’s death, the amount of survivor retirement benefits payable for a month to a beneficiary does not exceed 66 2/3 per cent of the amount that is determined in respect of the month by the formula set out in subparagraph (vi), and the aggregate amount of survivor retirement benefits payable under the provision for a particular month to beneficiaries of the member does not exceed the amount that is determined for the particular month by the formula is the amount (expressed on an annualized basis) of lifetime retirement benefits that accrued under the provision to the member as of the member’s day of death, determined without any reduction computed by reference to the member’s age, duration of service, or both, and without any other similar reduction, is, in the case of a member who attains 65 years of age before the member’s death or who was, at any time after 1990, connected with an employer who has participated in the plan, nil, and, otherwise, the amount, if any, by which the lesser of (A)the amount (expressed on an annualized basis) of lifetime retirement benefits that could reasonably be expected to have accrued to the member to the day on which the member would have attained 65 years of age if the member had survived to that day and continued in employment and if the member’s rate of remuneration had not increased after the member’s day of death, and the amount (expressed on an annualized basis) of lifetime retirement benefits that could reasonably be expected to have accrued to the member to the day on which the member would have attained 65 years of age if the member had survived to that day and continued in employment and if the member’s rate of remuneration had not increased after the member’s day of death, and (B)the amount, if any, by which 3/2 of the Year’s Maximum Pensionable Earnings for the calendar year in which the member dies exceeds such amount as is required by the Minister to be determined in respect of benefits provided, as a consequence of the death of the member, under other benefit provisions of the plan and under benefit provisions of other registered pension plans the amount, if any, by which 3/2 of the Year’s Maximum Pensionable Earnings for the calendar year in which the member dies exceeds such amount as is required by the Minister to be determined in respect of benefits provided, as a consequence of the death of the member, under other benefit provisions of the plan and under benefit provisions of other registered pension plans exceeds the amount determined for A, and is the greatest of all amounts each of which is the ratio of the Consumer Price Index for a month not before the month in which the member dies and not after the particular month, to the Consumer Price Index for the month in which the member dies; retirement benefits (in this paragraph referred to as “survivor benefits”) provided to a beneficiary of a member who dies before retirement benefits under the defined benefit provision commence to be paid to the member where the beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member, the survivor benefits are payable for a period beginning not later than the later of the day that is one year after the day of death of the member, and the end of the calendar year in which the beneficiary attains 71 years of age, and ending with the death of the beneficiary, the survivor benefits would be in accordance with paragraph (a) if the beneficiary were a member of the plan, and the present value (at the time of the member’s death) of all benefits provided as a consequence of the member’s death does not exceed the present value (immediately before the member’s death) of all benefits that have accrued under the provision with respect to the member to the day of the member’s death; retirement benefits provided to one or more individuals as a consequence of the death of a person who is a beneficiary of a member who died before retirement benefits under the provision commenced to be paid to the member, was, at the time of the member’s death, a spouse or common-law partner or former spouse or common-law partner of the member, and dies after the member’s death, where the benefits would be in accordance with paragraph (c) if the person were a member of the plan; the payment, with respect to a member in connection with the member’s termination from the plan (otherwise than by reason of death), of one or more single amounts where the payments are the last payments to be made under the provision with respect to the member, if subparagraph (iii) is not applicable, each single amount does not exceed the balance in the member’s net contribution account immediately before the time of payment of the single amount, and the Minister has, pursuant to subsection (5), waived the application of the conditions in paragraph (4)(a) in respect of the provision, or the member’s contributions under the provision for each calendar year after 1990 would have been in accordance with paragraph (4)(a) if the reference in clause (i)(B) thereof to “70 per cent” were read as a reference to “50 per cent”, each single amount does not exceed the amount that would be the balance in the member’s net contribution account immediately before the time of the payment of the single amount if, for each current service contribution made by the member under the provision, the account were credited at the time of the contribution with an additional amount equal to the amount of the contribution (other than the portion of the contribution, if any, paid in respect of one or more periods that were not periods of regular employment and that would not have been required to be paid by the member if the periods were periods of regular employment); the payment of one or more single amounts to one or more beneficiaries of a member who dies before retirement benefits under the provision commence to be paid to the member where no retirement benefits are payable as a consequence of the member’s death, and the aggregate of all amounts, each of which is such a single amount (other than the portion thereof, if any, that can reasonably be considered to be interest, computed at a rate not exceeding a reasonable rate, in respect of the period from the day of death of the member to the day the single amount is paid), does not exceed the present value, immediately before the death of the member or at any other time allowed under the Pension Benefits Standards Act, 1985 or similar law of a province, of all benefits that have accrued under the provision with respect to the member to the day of the member’s death; the payment of one or more single amounts after the death of a member where if the member dies before retirement benefits under the provision commence to be paid to the member and no retirement benefits are payable as a consequence of the member’s death, the aggregate amount to be paid at any time complies with whichever of the conditions in subparagraphs (h)(ii) and (iii) would be applicable if the single amounts were paid in connection with the member’s termination from the plan otherwise than by reason of death, and if subparagraph (ii) is not applicable, the aggregate amount to be paid at any time does not exceed the balance, immediately before that time, in the member’s net contribution account in relation to the provision; retirement benefits (in this paragraph referred to as “additional death benefits”) payable after the death of a member who dies after retirement benefits under the provision commence to be paid to the member where the additional death benefits are retirement benefits provided to a spouse or common-law partner or former spouse or common-law partner of the member that are in excess of the benefits that are permissible under paragraph (d), but that would be permissible under that paragraph if the reference in subparagraph (d)(iv) to “66 2/3 per cent” were read as a reference to “100 per cent”, retirement benefits provided to one or more beneficiaries of the member that are in excess of the benefits that are permissible under paragraph (c), but that would be permissible under that paragraph if it were read without reference to clause (i)(A) thereof, or a combination of retirement benefits described in subparagraphs (i) and (ii), the additional death benefits are provided in lieu of a proportion of the lifetime retirement benefits that would otherwise be payable under the provision to the member, and the present value of all benefits provided under the provision with respect to the member does not exceed the present value of the benefits that would be provided if the amount of the member’s lifetime retirement benefits were determined without any reduction dependent on the benefits payable after the death of the member or on circumstances that are relevant in determining such death benefits, the maximum amount of retirement benefits that are permissible under paragraph (d) were payable to the member’s spouse or common-law partner or former spouse or common-law partner after the death of the member, and those present values were determined as of except where subclause (II) applies, the particular time at which retirement benefits under the provision commence to be paid to the member, and where the additional death benefits become provided after the particular time, the time at which the additional death benefits become provided; bridging benefits in excess of bridging benefits that are permissible under paragraph (b) (referred to in this paragraph as “additional bridging benefits”) provided to a member where the additional bridging benefits would be permissible under paragraph (b) if the formula in subparagraph (b)(ii) were replaced by the formula “A/12 x C”, and the description of A in subparagraph (b)(ii) were read as follows: is 40% of the Year’s Maximum Pensionable Earnings for the year in which the bridging benefits commence to be paid to the member,” the additional bridging benefits are provided in lieu of all or a proportion of the benefits that would otherwise be payable under the provision with respect to the member, and the present value (at the time retirement benefits under the provision commence to be paid to the member) of all benefits provided under the provision with respect to the member does not exceed the present value (at that time) of the benefits that would be so provided if the additional bridging benefits were not provided; retirement benefits (in this paragraph referred to as “survivor bridging benefits”) provided to a beneficiary of a member after the death of the member where the survivor bridging benefits are payable at the election of the beneficiary, and the survivor bridging benefits would be in accordance with paragraph (l) if the beneficiary were a member of the plan; the payment with respect to a member of a single amount in full or partial satisfaction of the member’s entitlement to other benefits under the provision, where the single amount does not exceed the total of the present value (at the particular time determined in accordance with subsection (2.1)) of the other benefits that, as a consequence of the payment, cease to be provided, and benefits, other than benefits referred to in clause (A), that it is reasonable to consider would cease to be provided as a consequence of the payment if where retirement benefits have not commenced to be paid under the provision to the member at the particular time, the plan provided for the retirement benefits that accrued to the member under the provision to be adjusted to reflect the increase in a general measure of wages and salaries from the particular time to the day on which the benefits commence to be paid, and the plan provided for periodic cost-of-living adjustments to be made to the retirement benefits payable under the provision to the member to reflect increases in the Consumer Price Index after the retirement benefits commence to be paid (other than increases before the particular time), and interest (computed at a reasonable rate) from the particular time to the time the single amount is paid; the payment, with respect to an individual after the death of a member, of a single amount in full or partial satisfaction of the individual’s entitlement to other benefits under the provision, where the individual is a beneficiary of the member, the single amount does not exceed the total of the present value (at the particular time determined in accordance with subsection (2.1)) of the other benefits that, as a consequence of the payment, cease to be provided, and interest (computed at a reasonable rate) from the particular time to the time the single amount is paid, and if the other benefits in respect of which the single amount is paid include benefits described in paragraph (e) and the beneficiary was a spouse or common-law partner or former spouse or common-law partner of the member at the time of the member’s death, the single amount is not transferred from the plan directly to another registered pension plan, a registered retirement savings plan or a registered retirement income fund except with the approval of the Minister; and retirement benefits provided to a member or a beneficiary of the member after the death of the member, if the beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member, as permitted by the Pension Benefits Standards Act, 1985 or a similar law of a province where the life expectancy of the individual is significantly shorter than normal and has been so certified by a medical doctor or nurse practitioner licensed under the laws of a province or of the place where the individual resides, the retirement benefits replace all or a portion of retirement benefits (referred to in subparagraph (iii) as the “former benefits”) that would otherwise be payable under the provision with respect to the individual, and at the time the retirement benefits replace the former benefits, the present value of the benefits does not exceed the present value of the former benefits. For the purpose of determining the limit on a single amount that can be paid with respect to an individual under paragraph (2)(m) or (n), the particular time referred to in that paragraph is except where paragraph (b) applies, the time the single amount is paid; and an earlier time than the time the single amount is paid, where the amount is based on a determination of the actuarial value (at the earlier time) of the individual’s benefits, the use of the earlier time in determining the actuarial value is required by the Pension Benefits Standards Act, 1985 or a similar law of a province, or is reasonable having regard to accepted actuarial practice and the circumstances in which the individual acquires the right to the payment, and except where clause (ii)(A) applies, the earlier time is no more than two years before the time the single amount is paid. For the purposes of subsection 8501(2) and subparagraph 8502(c)(i), the following conditions are applicable in respect of the benefits provided under each defined benefit provision of a pension plan: the only lifetime retirement benefits provided under the provision to a member (other than additional lifetime retirement benefits provided to a member because the member is totally and permanently disabled at the time the member’s retirement benefits commence to be paid) are lifetime retirement benefits provided in respect of one or more of the following periods (other than the portion of a period that is after the calendar year in which the member attains 71 years of age), namely, a period throughout which the member is employed in Canada by, and receives remuneration from, an employer who participates in the plan, a period throughout which the member was employed in Canada by, and received remuneration from, a predecessor employer to an employer who participates in the plan, an eligible period of temporary absence of the member with respect to an employer who participates in the plan or a predecessor employer to such an employer, a period of disability of the member subsequent to a period described in subparagraph (i) where, throughout such part of the period of disability as is after 1990, the member is not connected with an employer who participates in the plan, a period in respect of which unless the provision is a provision of an individual pension plan, subparagraph (v.1) does not apply, and benefits that are attributable to employment of the member with a former employer accrued to the member under a defined benefit provision of another registered pension plan, or contributions were made by or on behalf of the member under a money purchase provision of another registered pension plan, where the member has ceased to be a member of that other plan, unless the provision is a provision of an individual pension plan, a portion — determined by reference to the proportion of property that has been transferred, as described in clause (B) — of a period in respect of which benefits that are attributable to employment of the member with a former employer accrued to the member under a defined benefit provision of another registered pension plan, and pursuant to the Pension Benefits Standards Act, 1985 or a similar law of a province, a portion of property held in connection with the benefits described in clause (A) has been transferred to the provision and the balance of property is required to be transferred to the provision at a later date, unless the provision is a provision of an individual pension plan, a period throughout which the member was employed in Canada by a former employer where the period was an eligibility period for the participation of the member in another registered pension plan, and a period acceptable to the Minister throughout which the member is employed outside Canada; benefits are not provided under the provision (in this paragraph referred to as the “particular provision”) to a member in respect of a period that is after the day on which retirement benefits (other than retirement benefits payable as a consequence of the death of another person) commence to be paid to the member under a defined benefit provision of the plan, or any other registered pension plan if an employer who participated under the particular provision for the benefit of the member, or an employer who does not deal at arm’s length with an employer referred to in clause (A) has participated under the defined benefit provision of the other plan for the benefit of the member; where lifetime retirement benefits commence to be paid under the provision to a member at any time before in the case of a member whose benefits are provided in respect of employment in a public safety occupation, the earliest of the day on which the member attains 55 years of age, the day on which the member has 25 years of early retirement eligibility service in relation to the provision, the day on which the aggregate of the member’s age (measured in years, including any fraction of a year) and years of early retirement eligibility service in relation to the provision is equal to 75, and if the member was not, at any time after 1990, connected with any employer who has participated in the plan, the day on which the member becomes totally and permanently disabled, and in any other case, the earliest of the day on which the member attains 60 years of age, the day on which the member has 30 years of early retirement eligibility service in relation to the provision, the day on which the aggregate of the member’s age (measured in years, including any fraction of a year) and years of early retirement eligibility service in relation to the provision is equal to 80, and if the member was not, at any time after 1990, connected with any employer who has participated in the plan, the day on which the member becomes totally and permanently disabled, the amount (expressed on an annualized basis) of lifetime retirement benefits payable to the member for each calendar year does not exceed the amount that is determined for the year by the formula is the amount (expressed on an annualized basis) of lifetime retirement benefits that would be payable to the member for the year if the benefits were determined without a reduction computed by reference to the member’s age, duration of service, or both, and without any other similar reduction, and is the number of months in the period from the day on which lifetime retirement benefits commence to be paid to the member to the earliest of the days that would be determined under clauses (i)(A) to (C) or (ii)(A) to (C), as the case may be, if the member continued in employment with an employer who participates in the plan, early retirement eligibility service of a member in relation to a defined benefit provision of a pension plan means one or more periods each of which is a period that is pensionable service of the member under the provision, or a period throughout which the member was employed by an employer who has participated in the plan or by a predecessor employer to such an employer, and years of early retirement eligibility service of a member in relation to a defined benefit provision of a pension plan means the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is early retirement eligibility service of the member in relation to the provision; where the amount of lifetime retirement benefits provided under the provision to a member depends on whether the member is physically or mentally impaired at the time (in this paragraph referred to as the “time of commencement”) at which retirement benefits under the provision commence to be paid to the member, the amount of lifetime retirement benefits payable if the member is not totally and permanently disabled at the time of commencement, or is totally and permanently disabled at the time of commencement and was, at any time after 1990, connected with an employer who has participated in the plan satisfies the limit that would be determined by the formula set out in paragraph (c) if the member were not impaired at the time of commencement, and the amount of lifetime retirement benefits payable for a particular month to the member if subparagraph (i) is not applicable does not exceed the amount that is determined for the particular month by the formula is the amount (expressed on an annualized basis) of lifetime retirement benefits that have accrued under the provision to the member to the time of commencement, determined as if the member were not impaired at the time of commencement and without any reduction computed by reference to the member’s age, duration of service, or both, and without any other similar reduction, is, in the case of a member who attains 65 years of age before the time of commencement, nil, and, otherwise, the amount, if any, by which the lesser of (A)the amount (expressed on an annualized basis) of lifetime retirement benefits that could reasonably be expected to have accrued to the member to the day on which the member would have attained 65 years of age if the member had survived to that day and continued in employment and if the member’s rate of remuneration had not increased after the time of commencement, and the amount (expressed on an annualized basis) of lifetime retirement benefits that could reasonably be expected to have accrued to the member to the day on which the member would have attained 65 years of age if the member had survived to that day and continued in employment and if the member’s rate of remuneration had not increased after the time of commencement, and (B)the amount, if any, by which the Year’s Maximum Pensionable Earnings for the calendar year that includes the time of commencement exceeds such amount as is required by the Minister to be determined in respect of benefits provided to the member under other benefit provisions of the plan and under benefit provisions of other registered pension plans the amount, if any, by which the Year’s Maximum Pensionable Earnings for the calendar year that includes the time of commencement exceeds such amount as is required by the Minister to be determined in respect of benefits provided to the member under other benefit provisions of the plan and under benefit provisions of other registered pension plans is the greatest of all amounts each of which is the ratio of the Consumer Price Index for a month not before the month that includes the time of commencement and not after the particular month to the Consumer Price Index for the month that includes the time of commencement; all benefits provided under the provision in respect of periods before 1991 are acceptable to the Minister and, for the purposes of this condition, any benefits in respect of periods before 1991 that become provided after 1988 with respect to a member who is connected with an employer who participates in the plan or was so connected at any time before the benefits become provided shall, unless the Minister is notified in writing that the benefits are provided with respect to the member, be deemed to be unacceptable to the Minister; the amount of retirement benefits provided under the provision to a member is determined in such a manner that the member’s pension credit (as determined under Part LXXXIII) under the provision for a calendar year with respect to an employer is determinable at the end of the year; if the amount of lifetime retirement benefits provided under the provision to a member is determined, in part, by multiplying the member’s remuneration (or a function of the member’s remuneration) by an annual benefit accrual rate, or in a manner that is equivalent to that calculation, the annual benefit accrual rate or the quivalent annual benefit accrual rate does not exceed in the case of a member whose benefits are provided in respect of employment in a public safety occupation and for whom the formula for determining the amount of the lifetime retirement benefits can reasonably be considered to take into account public pension benefits, 2.33 per cent, and in any other case, 2 per cent; where the amount of lifetime retirement benefits provided to a member in respect of a calendar year depends on the member’s remuneration in subsequent years, or the average wage (or other general measure of wages and salaries) for subsequent years, and this condition has not been waived by the Minister, the formula for determining the amount of lifetime retirement benefits is such that the percentage increase from year to year in the amount of lifetime retirement benefits that accrued to the member in respect of the year can reasonably be expected to approximate or be less than the percentage increase from year to year in the member’s remuneration or in the average wage (or other general measure of wages and salaries), as the case may be, or the condition in subparagraph (iii) is not satisfied only by reason that the formula can reasonably be considered to have been designed taking into account the public pension benefits payable to members, and, for the purposes of this condition, where in determining the amount of lifetime retirement benefits provided under the provision to a member there is deducted an amount described in subparagraph (j)(i), it shall be assumed that the amount so deducted is nil; where the amount of lifetime retirement benefits provided to a member in respect of a calendar year depends on the member’s remuneration in other years, the formula for determining the amount of the lifetime retirement benefits is such that any increase in the amount of lifetime retirement benefits that accrued to the member in respect of the year that is attributable to increased remuneration is primarily attributable to an increase in the rate of the member’s remuneration; in determining the amount of lifetime retirement benefits provided under the provision to a member there is deducted the amount of lifetime retirement benefits provided to the member under a benefit provision of a registered pension plan, or the amount of a lifetime annuity that is provided to the member under a deferred profit sharing plan, and a single amount is paid in full or partial satisfaction of the member’s entitlement to benefits under the benefit provision referred to in clause (i)(A) or the deferred profit sharing plan referred to in clause (i)(B), the amount that is so deducted in determining the amount of the member’s lifetime retirement benefits under the defined benefit provision includes the amount of lifetime retirement benefits or lifetime annuity that may reasonably be considered to have been foregone as a consequence of the payment of the single amount; bridging benefits are not paid under the provision to a member who receives bridging benefits under another defined benefit provision of the plan (in this paragraph referred to as the “particular plan”) or under a defined benefit provision of another registered pension plan, except that this condition is not applicable where it is waived by the Minister or where bridging benefits are paid to the member under only one defined benefit provision of the particular plan, the decision to provide bridging benefits under the particular plan to the member was not made by the member, by persons with whom the member does not deal at arm’s length or by the member and such persons, and each employer who has participated in any registered pension plan (other than the particular plan) under a defined benefit provision of which the member receives bridging benefits has not participated in the particular plan, and has always dealt at arm’s length with each employer who has participated in the particular plan, and, for the purposes of this paragraph, bridging benefits provided under a defined benefit provision of a registered pension plan to the member do not include benefits that are provided on a basis no more favourable than an actuarially equivalent basis in lieu of all or a proportion of the benefits that would otherwise be payable under the provision with respect to the member; and if, by reason of a provision of a law described in subparagraph 8501(5)(b)(ii), an individual who is a spouse or common-law partner or former spouse or common-law partner of a member becomes entitled to receive all or a portion of the benefits that would otherwise be payable under the defined benefit provision to the member, and paragraph 8501(5)(d) applies with respect to the benefits, the present value of benefits provided under the provision with respect to the member (including, for greater certainty, benefits provided with respect to the individual) is not increased as a consequence of the individual becoming so entitled to benefits, and the benefits provided under the provision to the member are not, at any time, adjusted to replace, in whole or in part, the portion of the member’s benefits to which the individual has become entitled. For the purposes of section 8501, the following conditions are applicable in respect of each defined benefit provision of a pension plan:

where members are required or permitted to make contributions under the provision, the aggregate amount of current service contributions to be made by a member in respect of a calendar year after 1990, no part of which is a period of disability or an eligible period of reduced pay or temporary absence of the member, does not exceed the lesser of 9 per cent of the aggregate of all amounts each of which is the member’s compensation for the year from an employer who participates in the plan in the year for the benefit of the member, and the aggregate of $1,000 and 70 per cent of the aggregate of all amounts each of which is the amount that would be the member’s pension credit (as determined under Part LXXXIII) for the year under the provision with respect to an employer if section 8302 were read without reference to paragraphs (2)(b) and (3)(g) thereof, the method for determining current service contributions to be made by a member in respect of a calendar year that includes a period of disability or an eligible period of reduced pay or temporary absence of the member (referred to in this subparagraph as a “period of reduced services”) is consistent with that used for determining contributions in respect of years described in subparagraph (i), except that the member may be permitted or required to make, in respect of a period of reduced services, current service contributions not exceeding the amount reasonably necessary to fund the member’s benefits in respect of the period of reduced services, and the aggregate amount of contributions to be made by a member in connection with benefits that, as a consequence of a transaction, event or circumstance occurring at a particular time, become provided under the provision in respect of periods before that time does not exceed the amount reasonably necessary to fund such benefits; the contributions that are made under the provision by a member in respect of a calendar year are not paid before the year; where the plan is not established by an enactment of Canada or a province, it includes a stipulation that permits, for the purpose of avoiding revocation of the registration of the plan, the plan to be amended at any time to reduce the benefits provided under the provision with respect to a member, and a contribution that is made under the provision by a member or an employer to be returned to the person who made the contribution, which stipulation may provide that an amendment to the plan, or a return of contributions, is subject to the approval of the authority administering the Pension Benefits Standards Act, 1985 or a similar law of a province; each single amount that is payable after the death of a member is paid as soon as is practicable after the member’s death (or, in the case of a single amount permitted by reason of paragraph (2)(j), after all other benefits have been paid); where additional lifetime retirement benefits are provided under the provision to a member because the member is totally and permanently disabled, the additional benefits are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the member is totally and permanently disabled; and where lifetime retirement benefits are provided under the provision to a member in respect of a period of disability of the member, the benefits, to the extent that they would not be in accordance with paragraph (3)(a) if that paragraph were read without reference to subparagraph (iv) thereof, are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the period is a period of disability. The Minister may waive the conditions in paragraph (4)(a) where member contributions under a defined benefit provision of a pension plan are determined in a manner acceptable to the Minister and it is reasonable to expect that, on a long-term basis, the aggregate of the regular current service contributions made under the provision by all members will not exceed 1/2 of the amount that is required to fund the aggregate benefits in respect of which those contributions are made. A pension plan may provide, in the case of a member who dies before retirement benefits under a defined benefit provision of the plan commence to be paid to the member but after becoming eligible to have retirement benefits commence to be paid, benefits under the provision to the beneficiaries of the member where the benefits would be in accordance with subsection (2) if retirement benefits under the provision had commenced to be paid to the member immediately before the member’s death. Where a pension plan permits a member to receive a single amount in full or partial satisfaction of the member’s entitlement to lifetime retirement benefits under a defined benefit provision of the plan, the following rules apply: the condition in subparagraph (2)(b)(i) that the payment of bridging benefits under the provision not commence before lifetime retirement benefits commence to be paid under the provision to the member is not applicable where, before the member’s lifetime retirement benefits commence to be paid, a single amount is paid in full satisfaction of the member’s entitlement to the lifetime retirement benefits; and such part of the member’s lifetime retirement benefits as remains payable after a single amount is paid in full satisfaction of the member’s entitlement to lifetime retirement benefits that would otherwise be payable after the member attains a particular age shall be deemed, for the purposes of the conditions in this section, to be lifetime retirement benefits and not to be bridging benefits. Where a pension plan permits a member, or a spouse or common-law partner or former spouse or common-law partner of the member, to elect to receive benefits described in any of paragraphs (2)(b), (l) or (l.1) under a defined benefit provision of the plan on a basis no more favourable than an actuarially equivalent basis in lieu of all or a proportion of the benefits that would otherwise be payable under the provision with respect to the member, the following rules apply: the condition in subparagraph (2)(b)(i) that the payment of bridging benefits under the provision not commence before lifetime retirement benefits commence to be paid under the provision to the member does not apply if, as a consequence of the election, no lifetime retirement benefits remain payable under the provision to the member; and for the purpose of determining whether retirement benefits provided under the provision to beneficiaries of the member are in accordance with paragraphs (2)(c), (d) and (k), the election may be disregarded. A pension plan may provide for the suspension of payment of a member’s retirement benefits under a defined benefit provision of the plan where the retirement benefits payable to the member after the suspension are not altered by reason of the suspension, or subsection (9) is applicable in respect of the member’s retirement benefits; and the cessation of payment of any additional benefits that are payable to a member under a defined benefit provision of the plan because of a physical or mental impairment of the member or the termination of the member’s employment under a downsizing program (within the meaning assigned by subsection 8505(1)). Subject to subsection (10), where a pension plan provides, in the case of a member who becomes an employee of a participating employer after the member’s retirement benefits under a defined benefit provision of the plan have commenced to be paid, that payment of the member’s retirement benefits under the provision is suspended while the member is employed by a participating employer, and the amount of retirement benefits payable to the member after the suspension is redetermined to include benefits in respect of all or a part of the period throughout which payment of the member’s benefits was suspended, where the retirement benefits payable under the provision to the member after the suspension are not adjusted by any cost-of-living or similar adjustments in respect of the period throughout which payment of the member’s benefits was suspended, to take into account the member’s remuneration from the employer for the period throughout which payment of the benefits was suspended, where the member was totally and permanently disabled at the time the member’s retirement benefits commenced to be paid, to include benefits in respect of all or a part of the period of disability of the member, where the amount of the member’s retirement benefits was previously determined with a reduction computed by reference to the member’s age, duration of service, or both, or with any other similar reduction, by redetermining the amount of the reduction, or where payment of the member’s retirement benefits resumes after the member attains 65 years of age, by applying an adjustment for the purpose of compensating, in whole or in part, for the payments foregone by the member after attaining 65 years of age, the condition in paragraph (3)(b) is not applicable in respect of benefits provided under the provision to the member in respect of a period throughout which payment of the member’s benefits is suspended, where the member was totally and permanently disabled at the time the member’s retirement benefits commenced to be paid, the condition in paragraph (3)(b) is not applicable in respect of benefits provided under the provision to the member in respect of a period of disability of the member, the conditions in paragraphs (2)(b) and (3)(c) and (d) and section 8504 are applicable in respect of benefits payable under the provision to the member after a suspension of the member’s retirement benefits as if the member’s retirement benefits had not previously commenced to be paid, for the purpose of paragraph 8502(c) as it applies in respect of benefits provided under the provision on the death of the member during or after a period throughout which payment of the member’s benefits is suspended, subsections (2) and (6) are applicable as if the member’s retirement benefits had not commenced to be paid before the period, and the provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring in the period in which the member’s benefits are suspended as if the member’s benefits had not previously commenced to be paid. Subsection (9) does not apply in respect of benefits provided under a defined benefit provision of a pension plan to a member unless the terms of the plan that provide for the redetermination of the amount of the member’s retirement benefits do not apply where retirement benefits have, at any time, been paid under the provision to the member while the member was an employee of a participating employer. Where a member of a registered pension plan has become an employee of a participating employer after the member’s retirement benefits under a defined benefit provision of the plan have commenced to be paid and it is reasonable to consider that one of the main reasons for the employment of the member is to enable the member to benefit from terms of the plan that provide for a redetermination of the amount of the member’s retirement benefits provided in respect of a period before the benefits commenced to be paid, the plan becomes a revocable plan at the time the payment of the member’s benefits resumes. a member of a registered pension plan attained 69 years of age in 2005 or 2006, the member’s retirement benefits under a defined benefit provision of the plan commenced to be paid to the member in the year in which the member attained 69 years of age, the member’s retirement benefits are suspended as of any particular time in 2007, and the member was employed with a participating employer from the time the member’s retirement benefits commenced to be paid to the particular time, subsections (9) and (11) shall apply with respect to the member as though the member became an employee of the participating employer at the particular time, and for the purpose of subsection (10), retirement benefits paid under the provision to the member before the particular time shall be disregarded. Benefits provided under a defined benefit provision of a pension plan that are benefits to which a condition in any of subparagraphs (2)(b)(ii) and (e)(v) and (vi) and (3)(d)(ii) is applicable shall be deemed to comply with the condition where they would so comply if the Consumer Price Index ratio computed as part of the formula that applies for the purpose of the condition were replaced by a substantially similar measure of the change in the Consumer Price Index. Notwithstanding subsection (3), for the purposes of the condition in paragraph (3)(b) as it applies in respect of benefits provided under the pension plan established by the Public Service Superannuation Act, the reference to “any other registered pension plan” in subparagraph (3)(b)(ii) does not include the pension plans established by the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act; the condition in paragraph (3)(c) does not apply in respect of benefits provided under the pension plan established by the Canadian Forces Superannuation Act; and the conditions in section 8303, paragraph (3)(c) and section 8504 do not apply in respect of benefits provided to a member under the pension plan established by the Public Service Superannuation Act if the benefits arise as a result of a waiver granted by the Treasury Board, before 2028, of any early retirement reductions in respect of the member that would otherwise apply under that Act or under the Retirement Compensation Arrangements Regulations, No. 1. the amount of lifetime retirement benefits provided under a defined benefit provision of a registered pension plan to a member depends on the member’s remuneration, remuneration (in this subsection referred to as “excluded remuneration”) of certain types is disregarded for the purpose of determining the amount of the member’s lifetime retirement benefits, and it can reasonably be considered that one of the main reasons that remuneration in the form of excluded remuneration was paid to the member by an employer at any time was to artificially reduce a pension credit of the member under the provision with respect to the employer, the following rules apply for the purposes of the conditions in subsection 8504(1): the member shall be deemed to have been connected with the employer while the member was employed by the employer, and the member shall be deemed not to have received such remuneration as is excluded remuneration. a contribution that is made by an employer to a registered pension plan is made, in whole or in part, in respect of benefits (in this subsection referred to as “past service benefits”) provided under the plan to a member in respect of a period before 1990 and before the calendar year in which the contribution is made, the contribution is made after December 10, 1989, or before December 11, 1989 where the contribution has not, before that date, been approved by the Minister under paragraph 20(1)(s) of the Act, and it is reasonable to consider that all or substantially all of such portion of the contribution as is in respect of past service benefits was paid by the employer, with the consent of the member, in lieu of a payment or other benefit to which the member would otherwise be entitled, the plan becomes, for the purposes of paragraph 147.1(11)(c) of the Act, a revocable plan on the later of December 11, 1989 and the day immediately before the day on which the contribution is made. The following definitions apply in this subsection and in subsections (17) to (23). qualifying period of a member under a defined benefit provision of a pension plan means a period throughout which the member is employed by an employer who participates in the plan but does not include any period that is before the day that is the first day, on or after the later of the following days, in respect of which retirement benefits are provided under the provision to the member: the day on which retirement benefits first commenced to be paid to the member under the provision; and the member’s specified eligibility day under the provision. (période admissible) specified eligibility day of a member under a defined benefit provision of a pension plan means the earlier of the later of the day on which the member attains 55 years of age, and the day on which the member attains the earliest age at which payment of the member’s lifetime retirement benefits may commence under the terms of the provision without a reduction computed by reference to the member’s age, duration of service, or both (and without any other similar reduction), otherwise than because of the member being totally and permanently disabled; and the day on which the member attains 60 years of age. (date d’admissibilité) The condition in subparagraph (2)(b)(i) that bridging benefits be payable to a member under a defined benefit provision of a pension plan for a period beginning no earlier than the time lifetime retirement benefits commence to be paid under the provision to the member does not apply where the following conditions are satisfied: the bridging benefits do not commence to be paid before the member’s specified eligibility day under the provision; the plan provides that bridging benefits are payable under the provision to the member only for calendar months at any time in which the member is employed by an employer who participates in the plan, or that begin on or after the time the member’s lifetime retirement benefits under the provision commence to be paid; the member was not, at any time before the time at which the bridging benefits commence to be paid, connected with an employer who participates in the plan; and the plan is not a designated plan. Where bridging benefits under a defined benefit provision of a pension plan commence to be paid to a member in circumstances to which subsection (17) applies, the following rules apply: if the member dies before lifetime retirement benefits under the provision commence to be paid to the member, subsections (2) and (6) apply in respect of benefits provided under the provision on the death of the member as if the bridging benefits had not commenced to be paid before the member’s death; and the provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring before lifetime retirement benefits under the provision commence to be paid to the member as if the bridging benefits had not commenced to be paid. Paragraph (3)(b) does not apply to retirement benefits (in this subsection and in subsections (20) and (21) referred to as “additional benefits”) provided under a defined benefit provision of a pension plan to a member of the plan if the following conditions are satisfied: the additional benefits are provided in respect of all or part of a qualifying period of the member under the provision; the amount of retirement benefits payable to the member under the provision for each whole calendar month in the qualifying period does not exceed 5% of the amount (expressed on an annualized basis) of retirement benefits that have accrued under the provision to the member to the beginning of the month, determined without a reduction computed by reference to the member’s age, duration of service, or both, and without any other similar reduction (except that, if the plan limits the amount of pensionable service of a member or prohibits the provision of benefits in respect of periods after a member attains a specific age or combination of age and pensionable service, this condition does not apply to any calendar month in respect of which no benefits can be provided to the member because of the limit or prohibition, as the case may be); no part of the additional benefits are provided as a consequence of a past service event, unless the benefits are provided in circumstances to which subsection 8306(1) would apply if no qualifying transfers were made in connection with the past service event; the member was not, at any time before the additional benefits become provided, connected with an employer who participates in the plan; and Where the amount of retirement benefits payable under a defined benefit provision of a pension plan to a member is redetermined to include additional benefits provided to the member in respect of a qualifying period of the member under the provision, the conditions in paragraph (2)(b) and section 8504 apply in respect of benefits payable under the provision to the member after the redetermination as if the member’s retirement benefits had first commenced to be paid at the time of the redetermination. Where additional benefits are provided under a defined benefit provision of a pension plan to a member in respect of a qualifying period of the member under the provision, the following rules apply: if the qualifying period ends as a consequence of the member’s death, subsections (2) and (6) apply in respect of benefits provided under the provision on the death of the member as if the member’s retirement benefits had not commenced to be paid before the member’s death; and the provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring in the qualifying period as if the member’s retirement benefits had not commenced to be paid. Subsections (20) and (21) do not apply where it is reasonable to consider that one of the main reasons for the provision of additional benefits to the member is to obtain the benefit of any of those subsections. Where a member is provided with benefits under two or more associated defined benefit provisions, the determination of whether the conditions in subsections (17) and (19) are satisfied in respect of benefits payable or provided to the member under a particular associated provision shall be made on the basis of the following assumptions: benefits payable to the member under each of the other associated provisions were payable under the particular associated provision; if, before the member’s specified eligi-bility day (determined without reference to this paragraph) under the particular associated provision, the member had commenced to receive retirement benefits under another associated provision on or after the member’s specified eligibility day under that provision, the member’s specified eligibility day under the particular associated provision were the member’s specified eligibility day under that other associated provision; and if one or more of the other associated provisions is in a designated plan, the plan that includes the particular provision were also a designated plan. For the purpose of subsection (23), a defined benefit provision is associated with another defined benefit provision (other than a provision that is not in a registered pension plan) if the provisions are in the same pension plan; or the provisions are in separate pension plans and there is an employer who participates in both plans, or an employer who participates in one of the plans does not deal at arm’s length with an employer who participates in the other plan. A particular defined benefit provision of a pension plan is not associated with a defined benefit provision of another pension plan if it is unreasonable to expect the benefits under the particular provision to be coordinated with the benefits under the other provision and the Minister has agreed not to treat the particular provision as being associated with the other provision. An individual pension plan becomes a revocable plan at the end of a year if a person who is a member or a beneficiary, in respect of the plan, who was, at the time of the member’s death, a spouse or common-law partner of the member, is in receipt of retirement benefits under the terms of the plan; the person has attained 71 years of age before the year; and the plan has not paid in the year an amount to the person equal to the greater of the retirement benefits payable to the person for the year, and the IPP minimum amount for the person for the year, and the actuarial surplus under the plan at the beginning of the year. For the purposes of subparagraph 8502(c)(i), the following conditions are applicable in respect of the lifetime retirement benefits provided to a member under a defined benefit provision of a pension plan: the amount (expressed on an annualized basis) of lifetime retirement benefits payable to the member for the calendar year (in this paragraph referred to as the “year of commencement”) in which the lifetime retirement benefits commence to be paid does not exceed the aggregate of the aggregate of all amounts each of which is, in respect of a calendar year after 1990 (in this paragraph referred to as a “specified year”) in which the member was, at any time, connected with an employer who participated in the plan in the year for the benefit of the member, the lesser of is the aggregate of all amounts each of which is the member’s compensation for the specified year from an employer who participated under the provision in the year for the benefit of the member, is the greatest of all amounts each of which is the average wage for a calendar year not before the specified year and not after the year of commencement, and is the average wage for the specified year, and is the defined benefit limit for the year of commencement, and is the fraction of the specified year that is pensionable service of the member under the provision, and (A)2 per cent of the member’s highest average compensation (computed under subsection (2)) for the purpose of the provision, indexed to the year of commencement, and 2 per cent of the member’s highest average compensation (computed under subsection (2)) for the purpose of the provision, indexed to the year of commencement, and (B)the defined benefit limit for the year of commencement, and the defined benefit limit for the year of commencement, and is the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision and no part of which is in a specified year; and the amount of lifetime retirement benefits payable to the member for a particular calendar year after the year in which the lifetime retirement benefits commence to be paid does not exceed the product of the aggregate of the amounts determined under subparagraphs (a)(i) and (ii), and the greatest of all amounts each of which is the ratio of the average Consumer Price Index for a calendar year not earlier than the calendar year in which the lifetime retirement benefits commence to be paid and not later than the particular year to the average Consumer Price Index for the calendar year in which the lifetime retirement benefits commence to be paid. For the purposes of subsection (1) and paragraph 8505(3)(d), the highest average compensation of a member of a pension plan for the purpose of a defined benefit provision of the plan, indexed to the calendar year (in this subsection referred to as the “year of commencement”) in which the member’s lifetime retirement benefits under the provision commence to be paid, is, in the case of a member who has been employed for 3 non-overlapping periods of 12 consecutive months each by employers who participated under the provision for the benefit of the member, 1/3 of the greatest of all amounts each of which is the aggregate of the member’s total indexed compensation for the purpose of the provision for each of the 36 months in 3 such periods throughout which the member was so employed, and is the aggregate of all amounts each of which is the member’s total indexed compensation for the purpose of the provision for a month throughout which the member was employed by an employer who participated under the provision for the benefit of the member, and is the number of months for which total indexed compensation is included in the amount determined for H, and, for the purposes of this subsection, the member’s total indexed compensation for a month for the purpose of the provision is the amount determined by the formula is the aggregate of all amounts each of which is such portion of the member’s compensation for the calendar year (in this subsection referred to as the “compensation year”) that includes the month from an employer who participated under the provision for the benefit of the member as may reasonably be considered to have been received in the month or to otherwise relate to the month, is the greatest of all amounts each of which is the average wage for a calendar year not before the later of the compensation year and 1986 and not after the year of commencement, and is the average wage for the later of the compensation year and 1986. For the purposes of subsection (2), if the pensionable service of the member under the provision includes a period throughout which the member was employed by a predecessor employer to an employer who participates in the plan, the predecessor employer is deemed to have participated under the provision for the benefit of the member. Lifetime retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the conditions in subsection (1) where they would so comply if either or both of the following rules were applicable: determine, for the purpose of subsection (2), the member’s compensation from an employer for a calendar year by adding to the compensation otherwise determined such portion of the amount of each bonus and retroactive increase in remuneration paid by the employer to the member after the year as may reasonably be considered to be in respect of the year and by deducting therefrom such portion of the amount of each bonus and retroactive increase in remuneration paid by the employer to the member in the year as may reasonably be considered to be in respect of a preceding year; and determine, for the purpose of computing the amount J in subsection (2), the portion of the member’s compensation from an employer for a calendar year that may reasonably be considered to relate to a month in the year by apportioning the compensation uniformly over the period in the year in respect of which it was paid. Where the pensionable service of a member under a defined benefit provision of a pension plan includes a period throughout which the member rendered services on a part-time basis to an employer who participates in the plan, the lifetime retirement benefits provided under the provision to the member shall be deemed to comply with the conditions in subsection (1) where they would so comply or be deemed by subsection (3) to so comply if for the purpose of determining the amount J in subsection (2), the member’s compensation from an employer for a calendar year in which the member rendered services on a part-time basis to the employer were the amount that it is reasonable to expect would have been the member’s compensation for the year from the employer if the member had rendered services to the employer on a full-time basis throughout the period or periods in the year throughout which the member rendered services to the employer, and in determining the amount G in subparagraph (1)(a)(ii), the duration of each period were multiplied by a fraction (not greater than one) that measures the services rendered by the member throughout the period to employers who participate in the plan as a proportion of the services that would have been rendered by the member throughout the period to such employers had the member rendered services on a full-time basis, where a member of a pension plan has rendered services throughout a period to 2 or more employers who participate in the plan, the employers shall be deemed to be, throughout the period, the same employer, and where a period is an eligible period of reduced pay or temporary absence of a member of a pension plan with respect to an employer, or a period of disability of the member, the member shall be deemed to have rendered services throughout the period on a regular basis (having regard to the services rendered by the employee before the period) to the employer or employers by whom the member was employed before the period, and received remuneration throughout the period at a rate commensurate with the member’s rate of remuneration before the period. For the purposes of subparagraph 8502(c)(i), the following conditions are applicable in respect of retirement benefits (other than retirement benefits payable as the result of the death of another member) payable under a defined benefit provision of a pension plan to a member of the plan for the period (in this subsection referred to as the “bridging period”) from the time the benefits commence to be paid to the time the member attains 65 years of age: the amount (expressed on an annualized basis) of retirement benefits payable to the member for that part of the bridging period that is in the calendar year in which the benefits commence to be paid does not exceed the amount determined by the formula is the defined benefit limit for the calendar year in which the benefits commence to be paid, is the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision, is the average of the Year’s Maximum Pensionable Earnings for the year in which the benefits commence to be paid and for each of the 2 immediately preceding years, is the amount by which the lesser of 35 and the amount determined for B exceeds the amount determined for F, (i)for years after 2027, the average of the Year’s Additional Maximum Pensionable Earnings for the calendar year in which the benefits commence to be paid and for each of the four immediately preceding years, and for years after 2027, the average of the Year’s Additional Maximum Pensionable Earnings for the calendar year in which the benefits commence to be paid and for each of the four immediately preceding years, and (ii)for years prior to 2028, the average of the Year’s Additional Maximum Pensionable Earnings for the year in which the benefits commence to be paid and for each of the immediately preceding years after 2023, and for years prior to 2028, the average of the Year’s Additional Maximum Pensionable Earnings for the year in which the benefits commence to be paid and for each of the immediately preceding years after 2023, and is the lesser of 35 and the amount determined for B for years after 2023; and the amount of retirement benefits (expressed on an annualized basis) payable to the member for that part of the bridging period that is in a particular calendar year after the year in which the retirement benefits commence to be paid does not exceed the product of the amount determined by the formula set out in paragraph (a), and the average Consumer Price Index for a calendar year not earlier than the calendar year in which the retirement benefits commence to be paid and not later than the particular year the average Consumer Price Index for the calendar year in which the retirement benefits commence to be paid. For the purposes of subparagraph 8502(c)(i), and subject to subsection (7), the lifetime retirement benefits provided under a defined benefit provision of a pension plan to a member of the plan in respect of pensionable service in a particular calendar year before 1990 (in this subsection referred to as the “benefit year”) are subject to the condition that the amount (expressed on an annualized basis) of such lifetime retirement benefits payable to the member for a particular calendar year (in this subsection referred to as the “payment year”) is the greater of $1,725 and the defined benefit limit for the year in which the benefits commence to be paid, is the aggregate of all amounts each of which is the duration (measured as a fraction of a year) of a period in the benefit year that is pensionable service of the member under the provision, and is the greatest of all amounts each of which is the ratio of (i)the average Consumer Price Index for a calendar year not earlier than the calendar year in which the lifetime retirement benefits commence to be paid and not later than the payment year the average Consumer Price Index for a calendar year not earlier than the calendar year in which the lifetime retirement benefits commence to be paid and not later than the payment year (ii)the average Consumer Price Index for the calendar year in which the lifetime retirement benefits commence to be paid. The condition in subsection (6) is not applicable in respect of lifetime retirement benefits provided to an individual in respect of periods of pensionable service in a particular calendar year if at any time before June 8, 1990, a period in the particular year was pensionable service of the individual under a defined benefit provision of a registered pension plan; on June 7, 1990, the individual was entitled, pursuant to an arrangement in writing, to be provided with lifetime retirement benefits under a defined benefit provision of a registered pension plan in respect of a period in the particular year, whether or not the individual’s entitlement was conditional on the individual making contributions under the provision; at the beginning of the particular year, a period in a preceding year was pensionable service of the individual under a defined benefit provision of a registered pension plan, and the individual did not, by reason of disability or leave of absence, render services in the particular year to an employer who participated in the plan with respect to the individual; contributions were made before June 8, 1990 by or on behalf of the individual under a money purchase provision of a registered pension plan in respect of the year; or contributions were made in the year by or on behalf of the individual to a deferred profit sharing plan. Where an individual is provided with benefits under more than one defined benefit provision, the determination of whether the benefits provided to the individual under a particular defined benefit provision comply with the conditions in subsections (5) and (6) shall be made on the assumption that benefits provided to the individual under each other defined benefit provision (other than a provision that is not included in a registered pension plan) associated with the particular provision were provided under the particular provision. For the purposes of subsection (8), a defined benefit provision is associated with a particular defined benefit provision if the provisions are in the same pension plan, or there is an employer who participates in both plans, an employer who participates in one of the plans does not deal at arm’s length with an employer who participates in the other plan, or there is an individual who is provided with benefits under both provisions and the individual, or a person with whom the individual does not deal at arm’s length, has the power to determine the benefits that are provided under the particular provision, unless it is unreasonable to expect the benefits under the particular provision to be coordinated with the benefits under the other provision and the Minister has agreed not to treat the other provision as being associated with the particular provision. For the purpose of determining whether lifetime retirement benefits provided under a defined benefit provision of a pension plan comply with the conditions in subsection (1), the following benefits shall be disregarded: additional lifetime retirement benefits payable to a member because the member is totally and permanently disabled at the time the member’s retirement benefits commence to be paid; and additional lifetime retirement benefits payable to a member whose retirement benefits commence to be paid after the member attains 65 years of age, where the additional benefits result from an adjustment that is made to offset, in whole or in part, the decrease in the value of lifetime retirement benefits that would otherwise result by reason of the deferral of such benefits after the member attains 65 years of age and the adjustment is not more favourable than such an adjustment made on an actuarially equivalent basis. For the purpose of determining whether retirement benefits provided under a defined benefit provision of a pension plan comply with the conditions in subsection (5), the following benefits shall be disregarded: additional lifetime retirement benefits that are described in paragraph (10)(a); and bridging benefits payable at the election of a member, where the benefits are provided on a basis that is not more favourable than an actuarially equivalent basis in lieu of all or a proportion of the benefits that would otherwise be payable under the provision with respect to the member. For the purpose of determining whether lifetime retirement benefits provided under a defined benefit provision of a pension plan comply with the condition in subsection (6), additional lifetime retirement benefits that are described in paragraph (10)(b) shall be disregarded. The lifetime retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in paragraph (1)(b) where they would so comply, or would be deemed by subsection (3) or (4) to so comply, if the ratio that is determined under subparagraph (1)(b)(ii) were replaced by a substantially similar measure of the change in the Consumer Price Index. The retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in paragraph (5)(b) where they would so comply if the ratio that is determined under subparagraph (5)(b)(ii) were replaced by a substantially similar measure of the change in the Consumer Price Index. The lifetime retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in subsection (6) where they would so comply if the amount C in the formula set out in paragraph (6)(b) were replaced by a substantially similar measure of the change in the Consumer Price Index. For the purposes of this section, downsizing program means the actions that are taken by an employer to bring about a reduction in the employer’s workforce, including the termination of the employment of employees; and the payment of amounts and the provision of special benefits to employees who elect to or are required to terminate their employment. a downsizing program is an approved downsizing program if the Minister has approved in writing the application of this section in respect of the program; subject to subsection (2.1), an individual is a qualifying individual in relation to an approved downsizing program if the employment of the individual is terminated while the downsizing program is in effect, the individual was not, at any time before the termination of employment, connected with the employer from whom the individual terminated employment, and the Minister has approved in writing the application of this section to the individual; and the specified day is, in respect of an approved downsizing program, the day that is designated by the Minister in writing for the purpose of subparagraph (3)(c)(ii), and if no such day has been designated, the day that is 2 years after the day on which the Minister approves the application of this section in respect of the downsizing program. An individual whose employment is terminated under an approved downsizing program is not a qualifying individual in relation to the program if, at the time the individual’s employment is terminated, it is reasonable to expect that the individual will become employed by, or provide services to, a person or body of persons from whom the individual terminated employment under the downsizing program, or a person or body of persons that does not deal at arm’s length with a person or body of persons referred to in subparagraph (i), or a corporation with which the individual is connected will provide services to a person or body of persons referred to in paragraph (a) and the individual will be directly involved in the provision of the services, except that this subsection does not apply with respect to an individual where it is reasonable to expect that the individual will not be employed or provide services, or if paragraph (b) is applicable, the corporation will not provide services, for a period exceeding 12 months, and the Minister has waived the application of this subsection with respect to the individual. Lifetime retirement benefits (in this section referred to as “special retirement benefits”) that do not comply with the condition in paragraph 8503(3)(a) may be provided under a defined benefit provision of a pension plan to a member of the plan who terminates employment after attaining 55 years of age where the following conditions are satisfied: the special retirement benefits are provided pursuant to an approved downsizing program; the member is a qualifying individual in relation to the downsizing program; under the terms of the provision, retirement benefits will not commence to be paid to the member until the member ceases to be employed by all employers who participate in the plan, and retirement benefits will commence to be paid to the member no later than on the specified day; the amount (expressed on an annualized basis) of special retirement benefits payable to the member for a particular calendar year does not exceed the amount that is determined by the formula (i)2 per cent of the member’s highest average compensation (computed under subsection 8504(2)) for the purpose of the provision, indexed to the calendar year (in this paragraph referred to as the “year of commencement”) in which retirement benefits commence to be paid under the provision to the member, and 2 per cent of the member’s highest average compensation (computed under subsection 8504(2)) for the purpose of the provision, indexed to the calendar year (in this paragraph referred to as the “year of commencement”) in which retirement benefits commence to be paid under the provision to the member, and (ii)the defined benefit limit for the year of commencement, the defined benefit limit for the year of commencement, is the lesser of 7 and the amount, if any, by which 65 exceeds the member’s age (expressed in years, including any fraction of a year) at termination of employment, and (i)the average Consumer Price Index for a calendar year not earlier than the year of commencement and not later than the particular year the average Consumer Price Index for a calendar year not earlier than the year of commencement and not later than the particular year (ii)the average Consumer Price Index for the year of commencement; the average Consumer Price Index for the year of commencement;

[Repealed, SOR/95-64, s. 12] does not permit the commutation of retirement benefits payable to the member, or permits the commutation of retirement benefits payable to the member only if the life expectancy of the member is significantly shorter than normal; and lifetime retirement benefits that are permissible only by reason of this subsection are not provided to the member under any other defined benefit provision, unless this condition has been waived by the Minister. a member of a pension plan becomes an employee of a participating employer after lifetime retirement benefits that are permissible only by reason of subsection (3) have commenced to be paid under a defined benefit provision of the plan to the member, and payment of the member’s retirement benefits under the provision is suspended while the member is so employed, the condition in paragraph (3)(d) is applicable in respect of benefits payable under the provision to the member after the suspension as if the member had not become so employed, and payment of the member’s retirement benefits had not been suspended. Where a member of a pension plan is a qualifying individual in relation to an approved downsizing program, the terms of a defined benefit provision of the plan that determine the amount by which the member’s lifetime retirement benefits under the provision are reduced because of the early commencement of the benefits may, under the downsizing program, be modified in such a way that the benefits do not comply with the condition in paragraph 8503(3)(c) but would so comply if the member’s benefits were provided in respect of employment in a public safety occupation. Subsection (4) does not apply with respect to benefits that are provided to an individual in respect of a period that is after the day on which the individual’s employment was terminated under an approved downsizing program. Special retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in paragraph (3)(d) where they would so comply if the amount C in that paragraph were replaced by a substantially similar measure of the change in the Consumer Price Index. For the purpose of determining whether retirement benefits provided under a defined benefit provision of a pension plan comply with the conditions in subsections 8504(1) and (5), lifetime retirement benefits that are permissible only by reason of subsection (3) shall be disregarded. Subsection 8503(15) does not apply in respect of a contribution that is made in respect of benefits provided to a qualifying individual pursuant to an approved downsizing program. For the purposes of paragraph 8502(c), the following benefits may, subject to the conditions specified in respect of each benefit, be provided under a money purchase provision of a pension plan: lifetime retirement benefits provided to a member where the benefits are payable in equal periodic amounts or are not so payable only by reason that the benefits payable to a member after the death of the member’s spouse or common-law partner are less than the benefits that would be payable to the member were the member’s spouse or common-law partner alive, or the benefits are adjusted, after they commence to be paid, where those adjustments would be in accordance with any of subparagraphs 146(3)(b)(iii) to (v) of the Act if the annuity by means of which the lifetime retirement benefits are provided were an annuity under a retirement savings plan; bridging benefits provided to a member where the bridging benefits are payable for a period ending no later than the end of the month following the month in which the member attains 65 years of age; the continued retirement benefits are payable for a period beginning after the death of the member and ending no later than 15 years after the day on which retirement benefits commence to be paid under the provision to the member, and the total amount of continued retirement benefits payable under the provision for each month does not exceed the amount of retirement benefits (other than benefits permissible under paragraph (e.1)) that would have been payable under the provision for the month to the member if the member were alive; retirement benefits (in this paragraph referred to as “survivor retirement benefits”) provided to a beneficiary of a member who dies after retirement benefits under the provision commence to be paid to the member where the beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member at the time the member’s retirement benefits commence to be paid, the survivor retirement benefits are payable for a period beginning after the death of the member and ending with the death of the beneficiary, and the total amount of survivor retirement benefits and other retirement benefits (other than benefits permissible under paragraph (e.1)) payable under the provision for each month to beneficiaries of the member does not exceed the amount of retirement benefits (other than benefits permissible under paragraph (e.1)) that would have been payable under the provision for the month to the member if the member were alive; retirement benefits provided to a beneficiary of a member who dies before retirement benefits under the provision commence to be paid to the member, and benefits provided to other individuals after the death of the beneficiary, where the beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member at the time of the member’s death, the benefits would be permissible under paragraphs (a) to (c) if the beneficiary were a member of the plan, and the retirement benefits are payable to the beneficiary beginning no later than on the later of one year after the day of death of the member and the end of the calendar year in which the beneficiary attains 71 years of age; retirement benefits (in this paragraph referred to as “variable benefits”), other than benefits permissible under any of paragraphs (a) to (e) and (e.2), provided to a member and, after the death of the member, to one or more beneficiaries of the member if the variable benefits are paid from the member’s account, the variable benefits provided to the member or a beneficiary (other than a beneficiary who is the specified beneficiary of the member in relation to the provision) are payable for a period ending no later than the end of the calendar year following the calendar year in which the member dies, the variable benefits provided to a beneficiary who is the specified beneficiary of the member in relation to the provision are payable for a period ending no later than the end of the calendar year in which the specified beneficiary dies, and the amount of variable benefits payable to the member and beneficiaries of the member for each calendar year is not less than the minimum amount for the member’s account under the provision for the calendar year; retirement benefits (referred to in this paragraph as “VPLA benefits”), other than benefits permissible under any of paragraphs (a) to (e.1), provided to a member and, after the death of the member, to one or more beneficiaries of the member if the VPLA benefits are paid from a VPLA fund, the VPLA benefits are provided to the member (or, after the death of the member, to one or more beneficiaries of the member) because of a transfer of one or more amounts from the member’s account to the VPLA fund, each VPLA benefit is any of the following: a benefit described in any of paragraphs (b) to (e) and (i), in the case of the wind-up of the VPLA fund, a payment described in paragraph (h), a retirement benefit that would be described in paragraph (a) if its subparagraph (ii) read as follows: the benefits are adjusted annually, after they commence to be paid, in whole or in part to reflect increases at a rate specified under the terms of the plan not exceeding 2% per annum; the payment of one or more single amounts to a beneficiary after the death of a member, as permitted by the Pension Benefits Standards Act, 1985 or similar law of a province, and the VPLA benefits are increased or decreased to the extent that the following differ from the actuarial assumptions used to determine the VPLA benefits: the amount or rate of return earned by the VPLA fund, or the rate of mortality of the members and beneficiaries of one or more VPLA funds under the pension plan, or the mortality-related actuarial assumptions are changed; the payment with respect to a member of a single amount from the member’s account under the provision; the payment, with respect to one or more beneficiaries of a member, of one or more single amounts from the member’s account under the provision; the payment with respect to a member of a single amount in full or partial satisfaction of the member’s entitlement to other benefits under the provision, where the single amount does not exceed the present value (at the time the single amount is paid) of the other benefits that, as a consequence of the payment, cease to be provided; and the payment, with respect to an individual after the death of a member, of a single amount in full or partial satisfaction of the individual’s entitlement to other benefits under the provision, where the individual is a beneficiary of the member and the single amount does not exceed the present value (at the time the single amount is paid) of the other benefits that, as a consequence of the payment, cease to be provided. For the purposes of section 8501, the following conditions are applicable in respect of each money purchase provision of a pension plan: the amount of contributions that are to be made under the provision by each employer who participates in the plan is determined in a manner acceptable to the Minister; each contribution that is made under the provision by an employer consists only of amounts each of which is an amount that is paid by the employer with respect to a particular member; each contribution that is made under the provision by an employer is allocated to the member with respect to whom it is made; contributions are not made under the provision by an employer, and property is not transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan, at a time when there is a surplus under the provision, or at a time after 1991 when an amount that became a forfeited amount under the provision before 1990, or any earnings of the plan that are reasonably attributable to that amount, is being held in respect of the provision and has not been reallocated to members of the plan; no contribution is made under the provision with respect to a member, and no amount is transferred for the benefit of a member to the provision from another benefit provision of the plan, at any time after the calendar year in which the member attains 71 years of age, other than an amount that is transferred for the benefit of the member to the provision in accordance with subsection 146.3(14.1) or 147.3(1) or (4) of the Act, or from another benefit provision of the plan, where the amount so transferred would, if the benefit provisions were in separate registered pension plans, be in accordance with subsection 147.3(1) or (4) of the Act; where the plan is not established by an enactment of Canada or a province, it includes a stipulation that permits, for the purpose of avoiding revocation of the registration of the plan, a contribution made under the provision by a member or by an employer to be returned to the person who made the contribution, which stipulation may provide that a return of contributions is subject to the approval of the authority administering the Pension Benefits Standards Act, 1985 or a similar law of a province; the earnings of the plan, to the extent that they relate to the provision and are not reasonably attributable to forfeited amounts or a surplus under the provision, are allocated to plan members on a reasonable basis and no less frequently than annually; each forfeited amount under the provision (other than an amount forfeited before 1990) and all earnings of the plan that are reasonably attributable to the forfeited amount are paid to participating employers, reallocated to members of the plan, or paid as or on account of administrative, investment or similar expenses incurred in connection with the plan on or before December 31 of the year immediately following the calendar year in which the amount is forfeited, or such later time as is permitted by the Minister under subsection (3); retirement benefits (other than benefits permissible under paragraph (1)(e.1) or (e.2)) under the provision are provided by means of annuities that are purchased from a licensed annuities provider; each single amount that is payable after the death of a member (other than a single amount that is payable after the death of the specified beneficiary of the member in relation to the provision) is paid as soon as is practicable after the member’s death; and each single amount that is payable after the death of the specified beneficiary of a member in relation to the provision is paid as soon as is practicable after the specified beneficiary’s death. The Minister may, on the written application of the administrator of a pension plan, waive the application of the condition in paragraph (2)(b.1) in respect of a money purchase provision of the plan where contributions made under the provision by an employer are allocated to members of the plan in a manner acceptable to the Minister. The Minister may, on the written application of the administrator of a registered pension plan, extend the time for satisfying the requirements of paragraph (2)(f) where the aggregate of the forfeited amounts that arise in a calendar year is greater than normal because of unusual circumstances; and the forfeited amounts are to be reallocated on a reasonable basis to a majority of plan members or paid as or on account of administrative, investment or similar expenses incurred in connection with the plan. A registered pension plan that contains a money purchase provision becomes, for the purposes of paragraph 147.1(11)(c) of the Act, a revocable plan at the beginning of a calendar year if the total amount of retirement benefits (other than retirement benefits permissible under any of paragraphs (1)(a) to (e)) paid from the plan in the calendar year in respect of a member’s account under the provision is less than the minimum amount for the account for the calendar year. For the purposes of paragraph (1)(e.1) and subsection (4), but subject to subsection (7), the minimum amount for a member’s account under a money purchase provision of a registered pension plan for a calendar year is the amount determined by the formula is the balance in the account at the beginning of the year; and (a)if there is a specified beneficiary of the member for the year in relation to the provision, the factor designated under subsection 7308(4) for the year in respect of the specified beneficiary, if there is a specified beneficiary of the member for the year in relation to the provision, the factor designated under subsection 7308(4) for the year in respect of the specified beneficiary, (b)if paragraph (a) does not apply for the year, the factor designated under subsection 7308(4) for the year in respect of an individual where(i)the individual was, at the time the designation referred to in subparagraph (ii) was made, the member’s spouse or common-law partner,(ii)the member had, before the beginning of the year, provided the administrator of the plan with a written designation of the individual for the purpose of this paragraph in relation to the provision, and(iii)the member had not, before the beginning of the year, revoked the designation, and if paragraph (a) does not apply for the year, the factor designated under subsection 7308(4) for the year in respect of an individual where (i)the individual was, at the time the designation referred to in subparagraph (ii) was made, the member’s spouse or common-law partner, the individual was, at the time the designation referred to in subparagraph (ii) was made, the member’s spouse or common-law partner, (ii)the member had, before the beginning of the year, provided the administrator of the plan with a written designation of the individual for the purpose of this paragraph in relation to the provision, and the member had, before the beginning of the year, provided the administrator of the plan with a written designation of the individual for the purpose of this paragraph in relation to the provision, and (iii)the member had not, before the beginning of the year, revoked the designation, and the member had not, before the beginning of the year, revoked the designation, and (c)in any other case, the factor designated under subsection 7308(4) for the year in respect of the member. in any other case, the factor designated under subsection 7308(4) for the year in respect of the member. For the purpose of the description of A in subsection (5), the balance in a member’s account at the beginning of a calendar year (in this subsection referred to as the “current year”) is to be determined in accordance with the following rules: the determination is to be made in a manner that reasonably reflects the fair market value of the property held in connection with the account at the beginning of the current year, including an estimate of the portion of any unallocated earnings of the plan that arose in the preceding calendar year and that can reasonably be expected to be allocated to the account in the current year; and if retirement benefits (other than benefits permissible under paragraph (1)(e.1)) provided under the provision with respect to the member had commenced to be paid before the current year and continue to be payable in the current year, the determination is to be made without regard to the value of any property held in connection with those benefits. The minimum amount for a member’s account under a money purchase provision of a registered pension plan for a calendar year is nil, if an individual who is either the member or the specified beneficiary of the member for the year in relation to the provision is alive at the beginning of the year, and had not attained 71 years of age at the end of the preceding calendar year; and if paragraph (a) does not apply and the year is 2008, 75 per cent of the amount that would, in the absence of this subsection, be the minimum amount for the account for the year. The minimum amount for a member’s account under a money purchase provision of a registered pension plan for 2020 is 75% of the amount that would, in the absence of this subsection, be the minimum amount for the account for the year. In this section, an individual is the specified beneficiary of a member for a calendar year in relation to a money purchase provision of a registered pension plan if the member died before the beginning of the year; the individual is a beneficiary of the member and was, immediately before the member’s death, the member’s spouse or common-law partner; and the member or the member’s legal representative had, before the beginning of the year, provided the administrator of the plan with a written designation of the individual (and of no other individual) as the specified beneficiary of the member for the calendar year in relation to the provision. If a contribution made by a member of a registered pension plan and credited to the member’s account under a money purchase provision of the plan complies with the conditions in subsection (10), the contribution is deemed to have been made in accord- ance with the plan as registered; is to be disregarded for the purposes of paragraph (2)(c.1); and is deemed to be an excluded contribution for the purposes of paragraph 8301(4)(a). The conditions referred to in subsection (9) are as follows: the contribution is made in 2008; the contribution is designated for the purposes of this subsection in a manner acceptable to the Minister; and the amount of the contribution does not exceed the amount determined by the formula (i)the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2008 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, and the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2008 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, and (ii)the amount that would, in the absence of paragraph (7)(b), be the minimum amount for the account for 2008, the amount that would, in the absence of paragraph (7)(b), be the minimum amount for the account for 2008, is the minimum amount for the account for 2008, and is the total of all other contributions made by the member under the money purchase provision at or before the time of the contribution and designated for the purposes of this subsection. If a contribution made by a member of a registered pension plan and credited to the member’s account under a money purchase provision of the plan complies with the conditions in subsection (12), the contribution is deemed to have been made in accordance with the plan as registered; The conditions referred to in subsection (11) are as follows: the contribution is made after December 31, 2014 and before March 1, 2016; (i)the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2015 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, and the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2015 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, and (ii)the amount that would be the minimum amount for the account for 2015 if it were determined using the factor designated under subsection 7308(4) as it read on December 31, 2014, the amount that would be the minimum amount for the account for 2015 if it were determined using the factor designated under subsection 7308(4) as it read on December 31, 2014, is the minimum amount for the account for 2015, and For the purposes of paragraph (1)(e.2) and clause 8502(e)(i)(C), a VPLA fund under a money purchase provision of a pension plan is an arrangement that meets the following conditions: no amounts are contributed to the arrangement other than amounts that are transferred from accounts of the members under one or more plans of the participating employer or a related group of participating employers, or transferred from another VPLA fund under the plan, to the extent that an increase or decrease in VPLA benefits takes into account rates of mortality of the members and beneficiaries of that other VPLA fund; the arrangement has at least 10 members at the time it is established and, at all times after it is established, it is reasonable to expect that the arrangement will have at least 10 members on an ongoing basis; and no benefit may be paid from the arrangement other than retirement benefits described in subparagraph (1)(e.2)(iii). For the purposes of paragraph (b) of the definition compensation in subsection 147.1(1) of the Act, there is prescribed for inclusion in the compensation of an individual from an employer for a calendar year after 1990 where the individual has a qualifying period in the year with respect to the employer, the amount that is determined under subsection (2) in respect of the period; and where the individual has a period of disability in the year, the amount that would be determined under paragraph (2)(a) in respect of the period if the period were a qualifying period of the individual with respect to the employer. For the purposes of paragraph (1)(a) and subsection (5), the amount that is determined in respect of a period in a calendar year that is a qualifying period of an individual with respect to an employer is the lesser of the amount that it is reasonable to consider would have been the remuneration of the individual for the period from the employer if the individual had rendered services to the employer throughout the period on a regular basis (having regard to the services rendered by the individual to the employer before the complete period of reduced pay of which the period is a part) and the individual’s rate of remuneration had been commensurate with the individual’s rate of remuneration before the beginning of the complete period of reduced pay the remuneration of the individual for the period from the employer, and is the lesser of 3 and the amount that would be the cumulative additional compensation fraction of the individual with respect to the employer, determined to the time that is immediately before the end of the period, if the individual’s only qualifying periods had been periods that are also periods of parenting, (i)if no part of the period is a period of parenting, nil, and if no part of the period is a period of parenting, nil, and (ii)otherwise, the lesser of(A)the amount, if any, by which 3 exceeds the amount determined for A, and(B)the ratio of(I)the amount that would be determined under paragraph (a) if the remuneration referred to in subparagraphs (a)(i) and (ii) were the remuneration for such part of the period as is a period of parentingto(II)the amount determined for D, otherwise, the lesser of (A)the amount, if any, by which 3 exceeds the amount determined for A, and the amount, if any, by which 3 exceeds the amount determined for A, and (B)the ratio of(I)the amount that would be determined under paragraph (a) if the remuneration referred to in subparagraphs (a)(i) and (ii) were the remuneration for such part of the period as is a period of parentingto(II)the amount determined for D, the ratio of (I)the amount that would be determined under paragraph (a) if the remuneration referred to in subparagraphs (a)(i) and (ii) were the remuneration for such part of the period as is a period of parenting the amount that would be determined under paragraph (a) if the remuneration referred to in subparagraphs (a)(i) and (ii) were the remuneration for such part of the period as is a period of parenting (II)the amount determined for D, the amount determined for D, is the cumulative additional compensation fraction of the individual with respect to the employer, determined to the time that is immediately before the end of the period, and is the amount that it is reasonable to consider would have been the individual’s remuneration for the year from the employer if the individual had rendered services to the employer on a full-time basis throughout the year and the individual’s rate of remuneration had been commensurate with the individual’s rate of remuneration before the beginning of the complete period of reduced pay of which the period is a part. a period in a calendar year is a qualifying period of an individual in the year with respect to an employer if the period is an eligible period of reduced pay or an eligible period of temporary absence of the individual in the year with respect to the employer, lifetime retirement benefits are provided to the individual under a defined benefit provision of a registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) in respect of the period, or contributions are made by or on behalf of the individual under a money purchase provision of a registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) in respect of the period, pursuant to terms of the plan that apply in respect of periods that are not regular periods of employment, the lifetime retirement benefits or the contributions, as the case may be, exceed the benefits that would otherwise be provided or the contributions that would otherwise be made if the benefits or contributions were based on the services actually rendered by the individual and the remuneration actually received by the individual, the individual’s pension adjustment for the year with respect to the employer includes an amount in respect of the lifetime retirement benefits or the contributions, as the case may be, no benefits are provided in respect of the period to the individual under a defined benefit provision of any registered pension plan in which the employer does not participate, no contributions are made by or on behalf of the individual in respect of the period under a money purchase provision of a registered pension plan or a deferred profit sharing plan in which the employer does not participate, and no part of the period is after the earlier of the time at which bridging benefits commence to be paid to the individual in circumstances to which subsection 8503(17) applied, and the earliest day in respect of which benefits have been provided to the individual in circumstances to which subsection 8503(19) applied; and a period of parenting of an individual is all or a part of a period that begins at the time of the birth of a child of whom the individual is a natural parent, or at the time the individual adopts a child, and ends 18 months after that time. For the purposes of this section, the cumulative additional compensation fraction of an individual with respect to an employer, determined to any time, is the aggregate of all amounts each of which is the additional compensation fraction that is associated with a period that ends at or before that time and that is a qualifying period of the individual in a calendar year after 1990 with respect to the employer; any other employer who does not deal at arm’s length with the employer; or any other employer who participates in a registered pension plan in which the employer participates for the benefit of the individual. For the purposes of subsection (4), the additional compensation fraction associated with a qualifying period of an individual in a calendar year with respect to a particular employer is the amount determined by the formula is the amount that is determined for D under paragraph (2)(b) in respect of the qualifying period, and (a)if(i)all or a part of the qualifying period is a period throughout which the individual renders services to another employer pursuant to an arrangement in respect of which subsection 8308(7) is applicable,(ii)the particular employer is a lending employer for the purposes of subsection 8308(7) as it applies in respect of the arrangement, and(iii)the particular employer and the other employer deal with each other at arm’s length,the amount that would be determined under subsection (2) in respect of the qualifying period if, in the determination of the amount under paragraph (2)(a), no remuneration were included in respect of the portion of the qualifying period referred to in subparagraph (a)(i), and (i)all or a part of the qualifying period is a period throughout which the individual renders services to another employer pursuant to an arrangement in respect of which subsection 8308(7) is applicable, all or a part of the qualifying period is a period throughout which the individual renders services to another employer pursuant to an arrangement in respect of which subsection 8308(7) is applicable, (ii)the particular employer is a lending employer for the purposes of subsection 8308(7) as it applies in respect of the arrangement, and the particular employer is a lending employer for the purposes of subsection 8308(7) as it applies in respect of the arrangement, and (iii)the particular employer and the other employer deal with each other at arm’s length, the particular employer and the other employer deal with each other at arm’s length, the amount that would be determined under subsection (2) in respect of the qualifying period if, in the determination of the amount under paragraph (2)(a), no remuneration were included in respect of the portion of the qualifying period referred to in subparagraph (a)(i), and (b)otherwise, the amount that is determined under subsection (2) in respect of the qualifying period. otherwise, the amount that is determined under subsection (2) in respect of the qualifying period. A reference in this section to a qualifying period of an individual in a calendar year with respect to an employer or to a period of disability of an individual in a calendar year does not include a period that is part of a longer such period. In subsection (2), complete period of reduced pay of an individual with respect to an employer means a period that consists of one or more periods each of which is a period of disability of the individual, or an eligible period of reduced pay or an eligible period of temporary absence of the individual with respect to the employer, and that is not part of a longer such period. Where an employee and an employer enter into an arrangement in writing described in paragraph 6801(a) or (b), the period throughout which the employee defers salary or wages pursuant to the arrangement shall be deemed to be an eligible period of reduced pay of the employee with respect to the employer; and for the purposes of section 8507, the amount that it is reasonable to consider would have been the remuneration of the employee for any period from the employer shall be determined on the basis that the employee’s rate of remuneration was the amount that it is reasonable to consider would, but for the arrangement, have been the employee’s rate of remuneration. The prescribed conditions for the registration of a grandfathered plan are, before 1992, the condition set out in paragraph 8502(a), the condition set out in paragraph 8502(c), but only in respect of benefits provided under a money purchase provision of the plan, and if the plan contains a money purchase provision, the condition set out in paragraph 8506(2)(a), the benefits provided under each defined benefit provision of the plan are acceptable to the Minister and, for the purposes of this condition, any benefits in respect of periods before 1991 that become provided after 1988 with respect to a member who is connected with an employer who participates in the plan, or was so connected at any time before the benefits become provided, shall, unless the Minister is notified in writing that the benefits are provided with respect to the member, be deemed to be unacceptable to the Minister, and the plan contains such terms as may be required by the Minister. For the purpose of the condition in paragraph 8502(c) as it applies after 1991 in respect of a grandfathered plan, the condition in subparagraph 8503(2)(b)(ii) is replaced by the condition that the amount of bridging benefits payable to a member for a particular month does not exceed the amount that is determined in respect of the month by the formula is the amount determined for A under subparagraph 8503(2)(b)(ii) with respect to the member for the month, is the amount determined for C under subparagraph 8503(2)(b)(ii) with respect to the member for the month, is the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period ending before 1992 that is pensionable service of the member under the provision, is the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision, and is the amount determined with respect to the member for the month by the formula set out in subparagraph 8503(2)(b)(ii); the conditions in paragraphs 8503(3)(c), (h) and (i) and 8504(1)(a) and (b) apply only in respect of lifetime retirement benefits provided in respect of periods after 1991; and for the purposes of the conditions in paragraphs 8504(1)(a) and (b), the aggregate that is determined under subparagraph 8504(1)(a)(i) does not include an amount in respect of 1991, and the amount that is determined for G under subparagraph 8504(1)(a)(ii) is based only on periods of pensionable service after 1991. The prescribed conditions for the registration of a grandfathered plan include, after 1991, the condition that all benefits provided under each defined benefit provision of the plan in respect of periods before 1992 are acceptable to the Minister. The Minister may, after 1991, exempt from the condition in paragraph 8502(c) the following benefits provided under a defined benefit provision of a grandfathered plan: benefits that are payable after the death of a member, to the extent that the benefits can reasonably be considered to relate to lifetime retirement benefits provided to the member in respect of periods before 1992; and bridging benefits in excess of bridging benefits that are permissible under paragraph 8503(2)(b), to the extent that the excess bridging benefits are vested in a member on December 31, 1991. Where benefits are provided under a defined benefit provision of a grandfathered plan to a member of the plan as a consequence of the member having become, before 1992, physically or mentally impaired, the following rules apply: the conditions in this Part (other than the condition in paragraph (b)) do not apply in respect of the benefits; the prescribed conditions for the registration of the plan include the condition that the benefits are acceptable to the Minister; and subsections 147.1(8) and (9) of the Act do not apply to render the plan a revocable plan where those subsections would not so apply if the member’s pension credits under the provision were determined without regard to the benefits. Where a pension plan is a grandfathered plan, the conditions referred to in paragraph 8501(2)(b) do not apply before 1992 in respect of the plan; the condition in paragraph 8502(d) does not apply in respect of distributions that are made before 1992 under a defined benefit provision of the plan; and the conditions in paragraphs 8503(3)(a) and (b) do not apply in respect of benefits provided under a defined benefit provision of the plan in respect of periods before 1992. Subsections 147.1(8) and (9) of the Act do not apply in respect of a grandfathered plan for a calendar year before 1992 if the plan does not contain a money purchase provision in that year; or no contributions are made in respect of that year under the money purchase provisions of the plan. Where a pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “June 7, 1990” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “June 8, 1990”, the conditions in paragraphs 8504(5)(a) and (b) apply only in respect of retirement benefits provided in respect of periods after 1991; and the amounts that are determined for B and D under paragraph 8504(5)(a) are based only on periods of pensionable service after 1991. Where a pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “July 31, 1991” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “August 1, 1991”, the condition in paragraph 8503(3)(g) applies only in respect of lifetime retirement benefits provided under a defined benefit provision of the plan in respect of periods after 1994; and subparagraph 8503(3)(h)(iv) is not applicable in respect of lifetime retirement benefits provided under a defined benefit provision of the plan to a member unless the formula for determining the amount of the member’s lifetime retirement benefits complies with the condition in paragraph 8503(3)(g) as that condition would, but for this subsection, apply. The following rules apply in respect of the benefits provided under a defined benefit provision of a pension plan that is not a grandfathered plan: the condition in paragraph 8502(c) does not apply in respect of benefits provided with respect to an individual to whom retirement benefits have commenced to be paid under the provision before 1992, or who has died before 1992; and the prescribed conditions for the registration of the plan include the condition that all benefits referred to in paragraph (a) are acceptable to the Minister. The Minister may exempt from the condition in paragraph 8502(c) all or a portion of the benefits provided under a money purchase provision of a pension plan with respect to a member that may reasonably be considered to derive from contributions made before 1992 under a money purchase provision of a registered pension plan. The conditions in paragraphs 8503(4)(c) and 8506(2)(d) do not apply in respect of a pension plan that was a registered pension plan on December 31, 1991, in respect of which an application for registration was made to the Minister before 1992, or that was established to provide benefits to one or more individuals in lieu of benefits to which the individuals were entitled under another pension plan that is a plan described in paragraph (a) or (b) or this paragraph, whether or not benefits are also provided to other individuals. For greater certainty, where benefits under a defined benefit provision of a pension plan are, by reason of paragraph 8503(3)(e) or subsection (3), subject to the condition that they be acceptable to the Minister, the provisions of this section shall not be considered to limit in any way the requirements that may be imposed by the Minister in respect of the benefits. Neither subsection 147.1(8) nor (9) of the Act applies to render a registered pension plan a revocable plan at the end of any calendar year after 1995 and before 2003 solely because a pension adjustment, a total of pension adjustments or a total of pension credits of an individual for the year (each of which is, in this subsection, referred to as a “test amount”) is excessive where the subsection would not apply to render the plan a revocable plan at the end of the year if each test amount were decreased by the lesser of a pension credit under a defined benefit provision of a registered pension plan that is included in determining the test amount, or a pension credit under a money purchase provision of a registered pension plan or under a deferred profit sharing plan that is included in determining the test amount and that is taken into account, under paragraph 8302(2)(c), in determining a pension credit referred to in clause (A), and $15,500 exceeds the money purchase limit for the year, and the total of all amounts each of which is a pension credit referred to in clause (a)(i)(A). a pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “March 5, 1996” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “March 6, 1996”, under the terms of the plan as they read immediately before March 6, 1996, the plan provided for benefits that are benefits to which a condition in any of subsections 8504(1), (5) and (6) and paragraph 8505(3)(d) applies and, at that time, the benefits complied with the condition, and as a consequence of the change in the defined benefit limit effective March 6, 1996, the benefits would, if this Part were read without reference to this subsection, cease to comply with the condition, for the purpose of determining at any time after March 5, 1996 and before 1998 whether the benefits comply with the condition, the defined benefit limit for each year after 1995 is deemed to be the amount that it would be if the definition money purchase limit in subsection 147.1(1) of the Act were applied as it read on December 31, 1995, and for the purpose of determining at any time after 1997 whether the benefits comply with the condition, the defined benefit limit for 1996 and 1997 is deemed to be the amount that it would be if it were determined in accordance with paragraph (d). The definition multi-employer plan in subsection 8500(1) is applicable for the purposes of subsection 147.1(1) of the Act. For the purposes of this Part and subsection 147.1(1) of the Act, specified multi-employer plan in a calendar year means a pension plan in respect of which the conditions in subsection (3) are satisfied at the beginning of the year (or at the time in the year when the plan is established, if later), that has, on application by the plan administrator, been designated in writing by the Minister to be a specified multi-employer plan in the year, or that was, by reason of paragraph (a), a specified multi-employer plan in the immediately preceding calendar year (where that year is after 1989), but does not include a pension plan where the Minister has, before the beginning of the year, given notice by registered mail to the plan administrator that the plan is not a specified multi-employer plan. The conditions referred to in paragraph (2)(a) are the following: it is reasonable to expect that at no time in the year will more than 95 per cent of the active members of the plan be employed by a single participating employer or by a related group of participating employers; where the year is 1991 or a subsequent year, it is reasonable to expect that at least 15 employers will contribute to the plan in respect of the year, or at least 10 per cent of the active members of the plan will be employed in the year by more than one participating employer, and, for the purposes of this condition, all employers who are related to each other shall be deemed to be a single employer; each employer participates in the plan pursuant to one or more collective bargaining agreements or participation agreements whose contribution rates and benefits are substantially the same as under the collective bargaining agreements related to the plan; all or substantially all of the employers who participate in the plan are persons, each of whom is not exempt from tax under Part I of the Act, or exempt from tax under Part I of the Act pursuant to paragraph 149(1)(f) or (l) of the Act and, collectively with its related persons, employs fewer than 100 full-time employees at the time the employer or its predecessor employer became a participating employer; contributions are made by employers in accordance with a negotiated contribution formula that does not provide for any variation in contributions determined by reference to the financial experience of the plan; the contributions that are to be made by each employer in the year are determined, in whole or in part, by reference to the number of hours worked by individual employees of the employer or some other measure that is specific to each employee in respect of whom contributions are made to the plan; the administrator is a board of trustees or similar body that is not controlled by representatives of employers; and the administrator has the power to determine the benefits to be provided under the plan, whether or not that power is subject to the terms of a collective bargaining agreement.

For the purpose of subsection (2), the Minister may give notice that a plan is not a specified multi-employer plan only if the Minister is satisfied that participating employers will be able to comply with all reporting obligations imposed by Part LXXXIV in respect of the plan if it is not a specified multi-employer plan, and the notice is given at or after a time when the conditions in subsection (3) are not satisfied in respect of the plan; or the plan administrator has applied to the Minister for the notice. Where a pension plan is a multi-employer plan in a calendar year, each member of the plan who is connected at any time in the year with an employer who participates in the plan shall be deemed, for the purposes of applying the conditions in sections 8503 and 8504 in respect of the plan in the year and in each subsequent year, not to be so connected in the year; paragraph 8503(3)(b) shall, in its application in respect of benefits provided under a defined benefit provision of the plan in respect of a period in the year, be read without reference to subparagraph (ii) thereof; and the condition in paragraph 8503(3)(k) and the rule in subsection 8504(8) shall apply in the year in respect of the plan without regard to benefits provided under any other pension plan. Where a pension plan is a specified multi-employer plan in a calendar year, a contribution that is made in the year in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees in accordance with the plan as registered shall be deemed, for the purpose of paragraph 8502(b), to be an eligible contribution; subparagraph 8502(c)(i) shall, in its application in the year in respect of the plan, be read as follows: benefits that are in accordance with subsection 8503(2), paragraphs 8503(3)(c), (e) and (g) and subsections 8504(5) and (6)” the conditions in paragraphs 8503(3)(j) and (4)(a) do not apply in the year in respect of the plan; and a payment made in the year under a defined benefit provision of the plan with respect to a member is deemed to comply with the conditions in paragraph 8503(2)(h) (in the case of a payment made in connection with the member’s termination from the plan otherwise than by reason of death) or (j) (in the case of a payment made after the death of the member) where it would comply if paragraph 8503(2)(h) were read as follows: the payments are the last payments to be made under the provision with respect to the member, and each single amount does not exceed the amount that would be the balance in the member’s net contribution account immediately before the time of payment of the single amount if, for each contribution that is a specified contribution, the account were credited at the time of the specified contribution with an additional amount equal to the amount of the specified contribution and, for this purpose, a specified contribution is a contribution included in determining a pension credit of the member under the provision because of paragraph 8301(5)(b), or a contribution made before 1990 in respect of the provision by a participating employer, to the extent that the contribution can reasonably be considered to have been determined by reference to the number of hours worked by the member or some other measure specific to the member; Where a pension plan is a specified multi-employer plan in a calendar year, the prescribed conditions for the registration of the plan include, in that year, the following conditions: when employer and member contribution rates under the plan were last established, it was reasonable to expect that, for each calendar year beginning with the year in which the contribution rates were last established, the aggregate of all amounts each of which is the pension credit of an individual for the year with respect to an employer under a benefit provision of the plan would not exceed 18 per cent of the aggregate of all amounts each of which is, for an individual and an employer where the pension credit of the individual for the year with respect to the employer under a benefit provision of the plan is greater than nil, the compensation of the individual from the employer for the year, except that this condition does not apply for years before 1992 in the case of a pension plan that is a grandfathered plan; where the plan contains a money purchase provision, the plan terms are such that, if subsection 147.1(9) of the Act were applicable in respect of the plan, the plan would not under any circumstances become a revocable plan at the end of the year pursuant to that subsection, or if the plan terms do not comply with the condition in subparagraph (i), the only circumstances that would result in the plan becoming a revocable plan at the end of the year pursuant to subsection 147.1(9) of the Act, if that subsection were applicable in respect of the plan, are circumstances acceptable to the Minister; and no contributions are made to the plan with respect to a member at any time after the end of the calendar year in which the member attains 71 years of age, or to a defined benefit provision of the plan with respect to a member during a period (other than a qualifying period, as defined in subsection 8503(16)) in which the member is in receipt of retirement benefits from a defined benefit provision of the plan. Where, in the case of a pension plan that is a specified multi-employer plan in a calendar year, the amount of lifetime retirement benefits provided under a defined benefit provision of the plan to each member is determined by reference to the hours of employment of the member with participating employers, the plan permits a member whose actual hours of employment in a period are fewer than a specified number of hours for the period to make contributions to the plan in order to increase, to an amount not exceeding the specified number of hours for the period, the number of hours that are treated under the provision as hours of employment of the member in the period, and the specified number of hours for a period does not exceed a reasonable measure of the actual hours of employment of members who render services throughout the period on a full-time basis, the condition in paragraph 8503(3)(a) does not apply in respect of such portion of the lifetime retirement benefits provided under the provision to a member as is determined by reference to hours acquired by the member as a consequence of contributions made to the plan in the year by the member, as described in paragraph (b). Where a pension plan (other than a specified multi-employer plan) is a member-funded pension plan for the purposes of Division IX of the Regulation respecting the exemption of certain categories of pension plans from the provisions of the Supplemental Pension Plans Act of Quebec (R.Q., c. R.-15.1, r. 2), as amended from time to time, paragraph 8502(c) shall in its application in respect of the plan be read without reference to subparagraph (iii); the prescribed conditions for the registration of the plan include the following conditions: the plan terms are such that each contribution to be made by a member under a defined benefit provision of the plan would be an eligible contribution under subsection 147.2(2) of the Act if the contribution were made by an employer who participates in the plan for the benefit of the member, and this subsection were read without reference to paragraph (c), unless this condition is waived by the Minister, the plan is maintained pursuant to a collective bargaining agreement, the plan is not, and it is reasonable to expect that the plan will not become, a designated plan, and the amount of benefits provided to members, the amount of contributions required to be made by members and the entitlement of members’ to benefit from actuarial surplus are determined in a manner that is clearly established in the plan terms, and not more advantageous for members who, at any time after the plan is established, are specified individuals (within the meaning assigned by subsection 8515(4)) under the plan than for members who are not specified individuals; and a contribution made by an employer to the plan is a prescribed contribution for the purposes of subsection 147.2(2) of the Act if the contribution is a current service contribution that would be an eligible contribution under subsection 147.2(2) of the Act if no contributions were prescribed for the purposes of that subsection and if that subsection were read without reference to its subparagraph (d)(ii), and the recommendation pursuant to which the contribution is made is such that the current service contributions to be made by the employer do not exceed, where the amount of actuarial surplus in respect of the employer is greater than the amount determined under subparagraph 147.2(2)(d)(ii) of the Act, 50% of the current service contribution that would be required to be made by the employer if there were no actuarial surplus under the provisions, and in any other case, the current service contributions that would be required to be made by the employer if there were no actuarial surplus under the provisions. For the purposes of paragraph 147.1(4)(c) of the Act, the following conditions are prescribed in respect of an amendment to a registered pension plan: where the amendment increases the accrued lifetime retirement benefits provided to a member under a defined benefit provision of the plan, the increase is not, in the opinion of the Minister, inconsistent with the conditions in paragraphs 8503(3)(h) and (i); and where the plan is a grandfathered plan and the amendment increases the bridging benefits provided to a member under a defined benefit provision of the plan, the member’s bridging benefits, as amended, comply with the condition in subparagraph 8503(2)(b)(ii) that would apply if the plan were not a grandfathered plan. Where an amendment to a registered pension plan provides for the return to a member of all or a part of the contributions made by the member under a defined benefit provision of the plan, the plan becomes a revocable plan at any time that an amount (other than an amount that may be transferred from the plan in accordance with subsection 147.3(6) of the Act) that is payable to the member as a consequence of the amendment is not paid to the member as soon after the amendment as is practicable. For the purpose of subsection 147.1(2) of the Act, an application for registration of a pension plan shall be made by sending the following documents by registered mail to the Commissioner of Revenue at Ottawa: an application in prescribed form containing prescribed information; certified copies of the plan text and any other documents that contain terms of the plan; certified copies of all trust deeds, insurance contracts and other documents that relate to the funding of benefits under the plan; certified copies of all agreements that relate to the plan; and certified copies of all resolutions and by-laws that relate to the documents referred to in paragraphs (b) to (d). Where an amendment is made to a registered pension plan, to the arrangement for funding benefits under the plan or to a document that has been filed with the Minister in respect of the plan, within 60 days after the day on which the amendment is made, the plan administrator shall send to the Commissioner of Revenue at Ottawa a prescribed form containing prescribed information; and certified copies of all documents that relate to the amendment. For the purpose of subsection 147.1(4) of the Act, an application for the acceptance of an amendment to a registered pension plan is made in prescribed manner if the documents that are required by subsection (2) are sent by registered mail to the Commissioner of Revenue at Ottawa. For the purposes of paragraph 8302(3)(m), subparagraph 8502(c)(iii) and paragraph 8517(5)(f), designated provision of the law of Canada or a province means section 21 of the Pension Benefits Standards Act, 1985 and any provision of a law of a province that is similar to that section. For the purposes of subparagraph 8502(h)(i) and subject to subsections (2), (2.1) and (3), a prohibited investment in respect of a registered pension plan is a share of the capital stock of, an interest in, or a debt of an employer who participates in the plan, a person who is connected with an employer who participates in the plan, a member of the plan, a person or partnership that controls, directly or indirectly, in any manner whatever, a person or partnership referred to in paragraph (a) or (b), or a person or partnership that does not deal at arm’s length with a person or partnership referred to in paragraph (a), (b), (c) or (d), or an interest in, or a right to acquire, such a share, interest or debt. A prohibited investment does not include a debt obligation described in paragraph (a) of the definition fully exempt interest in subsection 212(3) of the Act; a share listed on a designated stock exchange; a bond, debenture, note or similar obligation of a corporation any shares of which are listed on a designated stock exchange; an interest in, or a right to acquire, property referred to in paragraph (b) or (c); a mortgage in respect of real property situated in Canada that where this condition has not been waived by the Minister and the amount paid for the mortgage, together with the amount of any indebtedness outstanding at the time the mortgage was acquired under any mortgage or hypothec that ranks equally with or superior to the mortgage, exceeds 75 per cent of the fair market value, at that time, of the real property that is subject to the mortgage, is insured under the National Housing Act or by a corporation that offers its services to the public in Canada as an insurer of mortgages, where the registered pension plan in connection with which the mortgage is held would be a designated plan for the purposes of subsection 8515(5) if subsection 8515(4) were read without reference to paragraph (b) thereof, is administered by an approved lender under the National Housing Act, and bears a rate of interest that would be reasonable in the circumstances if the mortgagor dealt with the mortgagee at arm’s length; or except in the case of an individual pension plan, a share of the capital stock of, an interest in, or a debt of a person or partnership that does not deal at arm’s length with a participating employer, if the participating employer’s principal activity is to manage the investments of or provide investment advice to His Majesty in right of Canada or a province, or an entity described in paragraph 149(1)(c) to (d.4) of the Act. Where a share of the capital stock of, an interest in or a debt of, a person who is connected with a particular employer who participates in a registered pension plan that is a multi-employer plan would, but for this subsection, be a prohibited investment in respect of the plan, the property is not a prohibited investment in respect of the plan if the plan contains no money purchase provision other than a money purchase provision under which each member account is credited, on a reasonable basis and no less frequently than annually, an amount based on the income earned, losses incurred and capital gains and capital losses realized, on all of the property held by the plan; at the time the property is acquired by the plan, there are at least 15 employers who participate in the plan and, for this purpose, all employers who are related to each other are deemed to be a single employer, and all the structural units of a trade union, including each local, branch, national and international unit, are deemed to be a single employer; at the time the property is acquired by the plan, no more than 10% of the active members of the plan are employed by the particular employer or by any person related to the particular employer; the property would not be a prohibited investment in respect of the plan if subsection (1) were read without reference to paragraph (1)(b); and immediately after the time the property is acquired by the plan, the total of all amounts each of which is the cost amount to a person of a property held in connection with the plan that would, but for this subsection, be a prohibited investment in respect of the plan does not exceed 10% of the total of all amounts each of which is the cost amount to a person of a property held in connection with the plan. For the purposes of the conditions set out in paragraphs (2.1)(b) and (c), two corporations that are related to each other solely because they are both controlled by Her Majesty in right of Canada or a province are deemed not to be related to each other. A prohibited investment in respect of a registered pension plan does not include an investment that was acquired by the plan before March 28, 1988. For the purposes of subsection (3), where at any time after March 27, 1988, the principal amount of a bond, debenture, note, mortgage or similar obligation increases as a consequence of the advancement or lending of additional amounts, or the maturity date of such an obligation is extended, the obligation shall, after that time, be deemed to have been issued at that time. For the purposes of subsections (5) and (9), and subject to subsection (3), a registered pension plan that contains a defined benefit provision is a designated plan throughout a calendar year if the plan is not maintained pursuant to a collective bargaining agreement and the aggregate of all amounts each of which is a pension credit (as determined under Part LXXXIII) for the year of a specified individual under a defined benefit provision of the plan 50 per cent of the aggregate of all amounts each of which is a pension credit (as determined under Part LXXXIII) for the year of an individual under a defined benefit provision of the plan. For the purposes of subsections (5) and (9), a registered pension plan is a designated plan throughout a particular calendar year after 1990 if the plan was a designated plan at any time in the immediately preceding year, except where the Minister has waived in writing the application of this subsection in respect of the plan. A registered pension plan is not a designated plan in a calendar year pursuant to subsection (1) if the plan would not be a designated plan in the year pursuant to that subsection if the reference in paragraph (1)(b) to “50 per cent” were read as a reference to “60 per cent”; the plan was established before the year; and the amount determined under paragraph (1)(a) in respect of the plan for the immediately preceding year did not exceed the amount determined under paragraph (1)(b). [Repealed, SOR/2011-188, s. 27] If a designated plan has more than nine active members, the Minister may waive the application of any provision of this Part or Part LXXXIII that would otherwise apply to the designated plan because of its status as a designated plan. An individual is a specified individual for the purposes of paragraph (1)(a) in respect of a pension plan and a particular calendar year if the individual was connected at any time in the year with an employer who participates in the plan; or the aggregate of all amounts each of which is the remuneration of the individual for the year from an employer who participates in the plan, or from an employer who does not deal at arm’s length with a participating employer, exceeds 2 1/2 times the Year’s Maximum Pensionable Earnings for the year. For the purpose of determining whether a contribution that is made by an employer to a registered pension plan at a time when the plan is a designated plan is an eligible contribution under subsection 147.2(2) of the Act, a prescribed condition is that the contribution satisfies the condition in subsection (6); or the contribution would satisfy the condition in subsection (6) if paragraph (6)(b) and subparagraph (7)(e)(i) were applicable only in respect of retirement benefits that became provided under the plan after 1990, paragraph (6)(c) were applicable only in respect of those benefits payable after the death of a member that relate to retirement benefits that became provided under the plan to the member after 1990, and the assumption as to the time retirement benefits (other than retirement benefits that became provided after 1990) will commence to be paid is the same for the purposes of the maximum funding valuation as for the purposes of the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act pursuant to which the contribution is made. The condition referred to in subsection (5) is that the contribution would be required to be made for the plan to have sufficient assets to pay benefits under the defined benefit provisions of the plan, as registered, with respect to the employees and former employees of the employer if required contributions were determined on the basis of a maximum funding valuation prepared as of the same effective date as the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act pursuant to which the contribution is made; each defined benefit provision of the plan provided that, with respect to restricted-funding members, retirement benefits are payable monthly in advance; each defined benefit provision of the plan provided that, after retirement benefits commence to be paid with respect to a restricted-funding member, the benefits are adjusted annually by a percentage increase for each year that is one percentage point less than the percentage increase in the Consumer Price Index for the year, in lieu of any cost-of-living adjustments actually provided; each defined benefit provision of the plan provided the following benefits after the death of a restricted-funding member who dies after retirement benefits under the provision have commenced to be paid to the member, in lieu of the benefits actually provided: where the member dies within 5 years after retirement benefits commence to be paid under the provision, the continuation of the retirement benefits for the remainder of the 5 years as if the member were alive, and where an individual who is a spouse or common-law partner of the member when retirement benefits commence to be paid under the provision to the member is alive on the later of the day of death of the member and the day that is 5 years after the day on which the member’s retirement benefits commence to be paid, retirement benefits payable to the individual for the duration of the individual’s life, with the amount of the benefits payable for each month equal to 66 2/3 per cent of the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive; where more than one employer participates in the plan, assets and actuarial liabilities were apportioned in a reasonable manner among participating employers with respect to their employees and former employees; and the rule in paragraph 147.2(2)(d) of the Act that provides for the disregard of a portion of the assets of the plan apportioned to the employer with respect to the employer’s employees and former employees were applicable for the purpose of determining required contributions pursuant to this subsection. For the purposes of subsection (6), a maximum funding valuation is a valuation prepared by an actuary in accordance with the following rules: the projected accrued benefit method is used for the purpose of determining actuarial liabilities and current service costs; the valuation rate of interest is 7.5 per cent per annum; it is assumed that the rate of increase in general wages and salaries and in each member’s rate of remuneration will be 5.5 per cent per annum, and the rate of increase in the Consumer Price Index will be 4 per cent per annum; each assumption made in respect of economic factors other than those referred to in paragraph (c) is consistent with the assumptions in that paragraph; in the case of a restricted-funding member, it is assumed that retirement benefits will commence to be paid to the member no earlier than the day on which the member attains 65 years of age, the member will survive to the time the member’s retirement benefits commence to be paid, where the member is employed by a participating employer as of the effective date of the valuation, the member will continue in employment until the time the member’s retirement benefits commence to be paid, and when the member’s retirement benefits commence to be paid, the member will be married to a person who is the same age as the member; the rate of mortality at each age is equal to in the case of a restricted-funding member, 80 per cent of the average of the rates at that age for males and females in the 1983 Group Annuity Mortality Table, as published in Volume XXXV of the Transactions of the Society of Actuaries, and in the case of any other member, 80 per cent of the rate at that age in the mortality table referred to in subparagraph (i) for individuals of the same sex as the member; it is assumed that where a member has a choice between receiving retirement benefits or a lump sum payment, retirement benefits will be paid to the member; and the plan’s assets are valued at an amount equal to their fair market value as of the effective date of the valuation. For the purposes of subsections (6) and (7) as they apply in respect of a contribution made to a registered pension plan, a member of the plan is a restricted-funding member if, at the time the maximum funding valuation is prepared, the member has a right, whether absolute or contingent, to receive retirement benefits under a defined benefit provision of the plan and the benefits have not commenced to be paid; or the payment of retirement benefits under a defined benefit provision of the plan to the member has been suspended. a member of a registered pension plan makes a contribution to the plan to fund benefits that have become provided at a particular time under a defined benefit provision of the plan in respect of periods before that time, the contribution is made at a time when the plan is a designated plan, and the contribution would not be an eligible contribution under subsection 147.2(2) of the Act if it were made by an employer who participates in the plan on behalf of the member, the plan becomes, for the purposes of paragraph 147.1(11)(c) of the Act, a revocable plan immediately before the time the contribution is made. For the purposes of subsection 147.2(2) of the Act, a contribution described in subsection (2) or (3) is a prescribed contribution. A contribution that is made by an employer to a registered pension plan is described in this subsection if the contribution is made pursuant to a recommendation by an actuary in whose opinion the contribution is required to be made so that, if the plan is terminated immediately after the contribution is made, it will have sufficient assets to pay benefits accrued under the defined benefit provisions of the plan, as registered, to the time the contribution is made; the recommendation is based on an actuarial valuation that complies with the following conditions: the effective date of the valuation is not more than four years before the day on which the contribution is made, all assumptions made for the purposes of the valuation are reasonable at the time the valuation is prepared and at the time the contribution is made, the valuation is prepared in accordance with generally accepted actuarial principles applicable with respect to a valuation prepared on the basis that a plan will be terminated, and where more than one employer participates in the plan, assets and actuarial liabilities are apportioned in a reasonable manner among participating employers; the recommendation is approved by the Minister; and at the time the contribution is made, the plan is not a designated plan. the contribution is required to be made to comply with the Pension Benefits Standards Act, 1985 or a similar law of a province, is made in respect of benefits under the defined benefit provisions of the plan as registered, and is made pursuant to a recommendation by an actuary; all assumptions made for the purposes of the valuation are reasonable at the time the valuation is prepared and at the time the contribution is made, and [Repealed, 2010, c. 12, s. 25] Subject to subsections (2) to (3.1), for the purpose of applying paragraph 147.3(4)(c) of the Act to the transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan, the prescribed amount is the amount that is determined by the formula is the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), and (a)the present value factor that corresponds to the age attained by the individual at the time of the transfer, determined pursuant to the table to this subsection, or the present value factor that corresponds to the age attained by the individual at the time of the transfer, determined pursuant to the table to this subsection, or (b)where the present value factor referred to in paragraph (a) is less than the present value factor that corresponds to the next higher age, the present value factor determined by interpolation between those two factors on the basis of the age (expressed in years, including any fraction of a year) of the individual.TABLEAttained AgePresent Value FactorUnder 509.0509.4519.6529.85310.05410.25510.45610.65710.85811.05911.36011.56111.76212.06312.26412.46512.46612.06711.76811.36911.07010.67110.37210.1739.8749.4759.1768.7778.4788.0797.7807.3817.0826.7836.4846.1855.8865.5875.2884.9894.7904.4914.2923.9933.7943.5953.296 or over3.0 where the present value factor referred to in paragraph (a) is less than the present value factor that corresponds to the next higher age, the present value factor determined by interpolation between those two factors on the basis of the age (expressed in years, including any fraction of a year) of the individual. Where an amount is transferred in full satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan, the prescribed amount for the purposes of paragraph 147.3(4)(c) of the Act in respect of the transfer is the greater of the amount that would, but for this subsection, be the prescribed amount, and the balance, at the time of the transfer, in the individual’s net contribution account (within the meaning assigned by subsection 8503(1)) in relation to the provision. Subsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan if the individual is an employee or a former employee of an employer (or a predecessor employer of the employer); the employer was a participating employer under the provision, is the subject of proceedings commenced under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act, and has ceased making regular contributions under the provision; after the commencement of the proceedings, lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered; the plan is not a designated plan; and the Minister has approved the application of subsection (3.01) in respect of the transfer. the individual is an employee or a former employee of an employer (or a predecessor employer of the employer) that was a participating employer under the provision; lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered; the Minister has approved the application of subsection (3.01) in respect of the transfer; and the plan is not an individual pension plan and the reduction in the lifetime retirement benefits paid or payable to the individual has been approved under the Pension Benefits Standards Act, 1985 or a similar law of a province, or the plan is an individual pension plan, the amount transferred from the plan on behalf of the individual is the last payment from the plan to the individual and all the property held in connection with the plan is distributed from the plan on behalf of plan members within 90 days of the transfer. If this subsection applies, the description of A in subsection (1) is to be read as follows in respect of the transfer: is the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), but without reference to the benefit reduction referred to in paragraph (3)(c) or (3.001)(b), as the case may be; and If a particular amount is transferred in full or partial satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan and subsection (3.01) had applied in respect of a transfer (in this subsection referred to as the “initial transfer”) of an amount on behalf of the individual under the provision, for the purpose of paragraph 147.3(4)(c) of the Act the prescribed amount in respect of the transfer of the particular amount is the lesser of the particular amount, and the amount, if any, by which the prescribed amount in respect of the initial transfer exceeds the total of all amounts each of which is the amount of a previous transfer to which this subsection or subsection (3.01) applied in respect of the individual’s entitlement to benefits under the provision. Where an amount is transferred in full or partial satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan and the benefits include benefits (in this subsection referred to as “ancillary benefits”) that are permissible solely because of subsection 8501(7), the prescribed amount for the purpose of paragraph 147.3(4)(c) of the Act in respect of the transfer is the total of the amount that would, but for this subsection, be the prescribed amount, and an amount approved by the Minister not exceeding the lesser of the present value (at the time of the transfer) of the ancillary benefits that, as a consequence of the transfer, cease to be provided, and the total of all amounts each of which is, in respect of a previous transfer from the provision to a money purchase provision of a registered pension plan, a registered retirement savings plan or a registered retirement income fund in full or partial satisfaction of the individual’s entitlement to other benefits under the defined benefit provision, the amount, if any, by which the prescribed amount for the purpose of paragraph 147.3(4)(c) of the Act in respect of the previous transfer the amount of the previous transfer. For the purposes of subsection (1), and subject to subsection (7), the amount of an individual’s lifetime retirement benefits under a defined benefit provision of a registered pension plan commuted in connection with the transfer of an amount on behalf of the individual in full or partial satisfaction of the individual’s entitlement to benefits under the provision is the aggregate of where retirement benefits have commenced to be paid under the provision to the individual, the amount (expressed on an annualized basis) by which the individual’s lifetime retirement benefits under the provision are reduced as a result of the transfer, where retirement benefits have not commenced to be paid under the provision to the individual, the amount (expressed on an annualized basis) by which the individual’s normalized pension (computed in accordance with subsection (5)) under the provision at the time of the transfer is reduced as a result of the transfer, and where, in conjunction with the transfer, any other payment (other than an amount that is transferred in accordance with subsection 147.3(5) of the Act or that is transferred after 1991 in accordance with subsection 147.3(3) of the Act) is made from the plan in partial satisfaction of the individual’s entitlement to benefits under the provision, the amount (expressed on an annualized basis) by which if paragraph (a) is applicable, the individual’s lifetime retirement benefits under the provision are reduced, and if paragraph (b) is applicable, the individual’s normalized pension (computed in accordance with subsection (5)) under the provision at the time of the payment is reduced, as a result of the payment, except to the extent that such reduction is included in determining, for the purposes of subsection (1), the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer of another amount on behalf of the individual. For the purposes of subsection (4), the normalized pension of an individual under a defined benefit provision of a registered pension plan at a particular time is the amount (expressed on an annualized basis) of lifetime retirement benefits that would be payable under the provision at the particular time if lifetime retirement benefits commenced to be paid to the individual at the particular time; where the individual has not attained 65 years of age before the particular time, the individual attained that age at the particular time; where the amount of the individual’s lifetime retirement benefits would otherwise be determined with a reduction computed by reference to the individual’s age, duration of service, or both, or with any other similar reduction, no such reduction were applied; where the amount of the individual’s lifetime retirement benefits depends on the amount of benefits provided under another benefit provision of the plan or under another plan or arrangement, a reasonable estimate were made of those other benefits; where the individual’s lifetime retirement benefits would otherwise include benefits that the plan is required to provide by reason of a designated provision of the law of Canada or a province, or that the plan would be required to provide if each such provision were applicable to the plan with respect to all its members, such benefits were not included; and except as otherwise provided by subsection (6), where the amount of the individual’s lifetime retirement benefits depends on the form of benefits and the circumstances were such as to maximize the amount of the individual’s lifetime retirement benefits on commencement of payment. the terms of a defined benefit provision of a registered pension plan permit an individual to elect to receive additional lifetime retirement benefits in lieu of benefits that would, in the absence of the election, be payable after the death of the individual if the individual dies after retirement benefits under the provision commence to be paid to the individual, and the elections available to the individual include an election to receive additional lifetime retirement benefits, not exceeding additional benefits determined on an actuarially equivalent basis, in lieu of all or a portion of a guarantee that retirement benefits will be paid for a minimum period of 10 years or less, or to receive additional lifetime retirement benefits in lieu of retirement benefits that would otherwise be payable to a person who is a spouse or common-law partner or former spouse or common-law partner of the individual for a period beginning after the death of the individual and ending with the death of the person, where the election may be made only if the life expectancy of the person is significantly shorter than normal and has been so certified in writing by a medical doctor or a nurse practitioner licensed to practise under the laws of a province or of the place where the person resides, and the additional benefits do not exceed additional benefits determined on an actuarially equivalent basis and on the assumption that the person has a normal life expectancy, paragraph (5)(g) applies as if the election described in subparagraph (b)(i) were not available to the individual, and where the particular time the normalized pension of the individual is determined under subsection (5) is after 1991, the election described in subparagraph (b)(ii) were not available to the individual. an amount is transferred on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision (in this subsection referred to as the “particular provision”) of a registered pension plan, in conjunction with the transfer, benefits become provided to the individual under another defined benefit provision of the plan or under a defined benefit provision of another registered pension plan, and an employer who participated under the particular provision for the benefit of the individual also participates under the other provision for the individual’s benefit, the amount of the individual’s lifetime retirement benefits under the particular provision commuted in connection with the transfer is the amount that would be determined under subsection (4) if the benefits provided under the other provision were provided under the particular provision. For the purposes of this section, if subsection 147.4(5) of the Act deems an amount to be transferred under a defined benefit provision (as defined in subsection 147.1(1) of the Act) of a registered pension plan, the benefits payable under the annuity contract are deemed to be benefits payable under the provision. [Repealed, SOR/2005-264, s. 30] Where, for the purposes of Part LXXXIII or this Part or subsection 147.1(10) of the Act, it is necessary to associate benefits provided under a defined benefit provision of a pension plan with periods of time, the association shall be made in a manner acceptable to the Minister. For the purposes of this Part, a waiver, extension of time or other modification of the requirements of this Part granted by the Minister or an approval by the Minister in respect of any matter is not effective unless it is in writing and expressly refers to the requirement that is modified or the matter in respect of which the approval is given. For the purposes of this Part and Part I.3 of the Act, attributed surplus of a non-resident insurer for a taxation year has the meaning assigned by subsection 2400(1); (surplus attribué) Canadian assets of a corporation that is a financial institution (as defined in subsection 181(1) of the Act) at any time in a taxation year means, in respect of the year, the amount, if any, by which the total of all amounts each of which is the amount at which an asset of the corporation (which asset is required, or, if the corporation were a bank to which the Bank Act applied, would be required, to be reflected in a return under subsection 223(1) of the Bank Act, as that Act read on May 31, 1992, if that return were prepared on a non-consolidated basis) would be shown on the corporation’s balance sheet at the end of the year if its balance sheet were prepared on a non-consolidated basis the investment allowance of the corporation for the year determined under subsection 181.3(4) of the Act; (actif canadien) [Repealed, 2013, c. 33, s. 38] Canadian premiums for a taxation year, in respect of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on a life insurance business, means the total of the insurance corporation’s net premiums for the year in respect of insurance on property situated in Canada, and in respect of insurance, other than on property, from contracts with persons resident in Canada, and, for the purposes of this definition, net premiums has the same meaning as in subsection 403(2), and subsection 403(3) applies as if the references therein to “province” were read as references to “country”; (primes canadiennes) Canadian reserve liabilities of an insurer as at the end of a taxation year has the meaning assigned by subsection 2400(1); ((passif de réserve canadienne)) contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12) of the Act; (marge sur services contractuels) group of insurance contracts of an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de contrats d’assurance) group of reinsurance contracts held by an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de contrats de réassurance) group of segregated fund policies of an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de polices à fonds réservé) permanent establishment has the same meaning as in subsection 400(2); (établissement stable) policyholders’ liabilities of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act; (obligation envers les titulaires de polices) reinsurance contract held amount for a group of reinsurance contracts held by an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act; (montant au titre des contrats de réassurance détenus) total assets of a corporation that is a financial institution (as defined in subsection 181(1) of the Act) at any time in a taxation year means, in respect of that year, the amount, if any, by which the total of all amounts each of which is the amount at which an asset of the corporation would be shown on the corporation’s balance sheet at the end of the year if its balance sheet were prepared on a non-consolidated basis the investment allowance of the corporation for the year determined under subsection 181.3(4) of the Act; (actif total) total premiums for a taxation year, in respect of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on a life insurance business, means the total of the corporation’s net premiums for the year (as defined in subsection 403(2)) that are included in computing its income under Part I of the Act; (total des primes) total reserve liabilities of an insurer as at the end of a taxation year means the amount determined by the formula is the total of the insurer’s liabilities and reserves including liabilities for segregated fund guarantees (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year in respect of insurance policies, as determined for the purposes of the Superintendent of Financial Institutions, if the insurer is required by law to report to the Superintendent of Financial Institutions, or, in any other case, the superintendent of insurance or other similar officer or authority of the province under the laws of which the insurer is incorporated; is the total of all amounts each of which is the amount of an item reported by the insurer as an insurance contract asset as at the end of the year; is the total of all amounts each of which is an amount of funds withheld as at the end of the year by the insurer in respect of the reinsurance of a risk under an insurance policy; is the total of all amounts each which is an amount recoverable as at the end of the year by the insurer under a funds withheld arrangement in respect of the reinsurance of a risk by the insurer under an insurance policy;

is the total of all amounts each of which is the contractual service margin for a group of insurance contracts (other than a group of segregated fund policies) of the insurer at the end of the year; (a)the reinsurance contract held amount for the group, if there is no reinsurance contract held amount for the group that is in respect of the reinsurance of an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and the reinsurance contract held amount for the group, if there is no reinsurance contract held amount for the group that is in respect of the reinsurance of an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (b)in any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined excluding any portion that is in respect of the reinsurance of an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply; and in any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined excluding any portion that is in respect of the reinsurance of an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply; and (a)if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, and (b)in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy. (passif total de réserve) in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy. (passif total de réserve) For the purpose of determining the taxable capital employed in Canada of a corporation for a taxation year under subsection 181.2(1) of the Act, the prescribed proportion of the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year is the amount determined by the formula is the taxable capital (as determined under Part I.3 of the Act) of the corporation for the year, is the total of all amounts each of which is the amount, determined in accordance with Part IV (or, in the case of an airline corporation, that would be so determined if the corporation had a permanent establishment in every province and if paragraphs 407(1)(a) and (b) were read without reference to the words “in Canada”), of the corporation’s taxable income earned in the year in a particular province or the amount of its taxable income that would, pursuant to that Part, be earned in the year in a province if all permanent establishments of the corporation in Canada were in a province, and is the corporation’s taxable income for the year, except that, where the corporation’s taxable income for the year is nil, the corporation shall, for the purposes of this section, be deemed to have a taxable income for the year of $1,000. For the purposes of paragraph (b) of the definition Canadian surtax payable in subsection 125.3(4) of the Act, the prescribed proportion of the amount determined under section 123.2 of the Act in respect of a corporation for a taxation year is the amount determined by the formula is the amount determined under section 123.2 of the Act in respect of the corporation for the year; (a)where the corporation carried on a life insurance business at any time in the year, the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year, and where the corporation carried on a life insurance business at any time in the year, the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year, and (b)in any other case, the corporation’s taxable capital employed in Canada (as would be determined under Part I.3 of the Act if that Part were read without reference to paragraphs 181.3(1)(a) and (b) thereof) for the year; and in any other case, the corporation’s taxable capital employed in Canada (as would be determined under Part I.3 of the Act if that Part were read without reference to paragraphs 181.3(1)(a) and (b) thereof) for the year; and is the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year. For the purposes of Part VI of the Act, Canadian assets of a corporation that is a financial institution (as defined in subsection 190(1) of the Act) at any time in a taxation year means, in respect of that year, the amount that would be determined under the definition Canadian assets in section 8600 in respect of the corporation for the year if the reference in that definition to “subsection 181(1)” were read as a reference to “subsection 190(1)” and paragraph (b) of that definition were read as follows: the total determined under section 190.14 of the Act in respect of the corporation’s investments for the year in financial institutions related to it;”; total assets of a corporation that is a financial institution (as defined in subsection 190(1) of the Act) at any time in a taxation year means, in respect of that year, the amount that would be determined under the definition total assets in section 8600 in respect of the corporation for the year if the reference in that definition to “subsection 181(1)” were read as a reference to “subsection 190(1)” and paragraph (b) of that definition were read as follows: the total determined under section 190.14 of the Act in respect of the corporation’s investments for the year in financial institutions related to it;” attributed surplus, Canadian reserve liabilities and total reserve liabilities have the same respective meanings as in section 8600. [Repealed, 2013, c. 34, s. 411] For the purposes of subclause 181.3(1)(c)(ii)(A)(II) and clause 190.11(b)(i)(B) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time is the total of all amounts each of which is the amount determined in respect of a corporation that is, at the particular time, a foreign insurance subsidiary of the particular corporation, determined by the formula is the amount of the subsidiary’s long-term debt at the end of the subsidiary’s last taxation year ending at or before the particular time (in this subsection referred to as the “last taxation year”), is the total amount at the end of the subsidiary’s last taxation year of the subsidiary’s (a)capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions), capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions), (b)retained earnings, retained earnings, (c)accumulated other comprehensive income, accumulated other comprehensive income, (d)policyholders’ liabilities, policyholders’ liabilities, (e)contributed surplus, and contributed surplus, and (f)any other surpluses, any other surpluses, is total of all amounts each of which is the contractual service margin for a group of insurance contracts of the subsidiary at the end of the subsidiary’s last taxation year other than a group of segregated fund policies, is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the subsidiary at the end of the subsidiary’s last taxation year, that is (b)in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy, and in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy, and is the amount of any deficit deducted in computing the subsidiary’s shareholders’ equity at the end of the subsidiary’s last taxation year; and is the total of all amounts each of which is the carrying value to its owner at the particular time for the taxation year that includes the particular time of a share of the subsidiary’s capital stock or its long-term debt that is owned at the particular time by (a)the particular corporation, the particular corporation, (b)a subsidiary of the particular corporation, a subsidiary of the particular corporation, (c)a corporation(i)that is resident in Canada,(ii)that carried on a life insurance business in Canada at any time in its taxation year ending at or before the particular time, and(iii)that is(A)a corporation of which the particular corporation is a subsidiary, or(B)a subsidiary of a corporation described in clause (A), or a corporation (i)that is resident in Canada, that is resident in Canada, (ii)that carried on a life insurance business in Canada at any time in its taxation year ending at or before the particular time, and that carried on a life insurance business in Canada at any time in its taxation year ending at or before the particular time, and (iii)that is(A)a corporation of which the particular corporation is a subsidiary, or(B)a subsidiary of a corporation described in clause (A), or (A)a corporation of which the particular corporation is a subsidiary, or a corporation of which the particular corporation is a subsidiary, or (B)a subsidiary of a corporation described in clause (A), or a subsidiary of a corporation described in clause (A), or (d)a subsidiary of a corporation described in paragraph (c), and a subsidiary of a corporation described in paragraph (c), and is the total of all amounts each of which is an amount included under the description of A in respect of any surplus of the subsidiary contributed by a corporation described in paragraphs (a) to (d) of the description of H, other than an amount included under the description of H. For the purposes of subclause 181.3(1)(c)(ii)(A)(III) and clause 190.11(b)(i)(C) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time is the total of all amounts each of which is the amount determined in respect of a corporation that is, at the particular time, a foreign insurance subsidiary of the particular corporation, determined by the formula is the amount determined for B in subsection (1) in respect of the subsidiary, and is the amount determined for A in subsection (1) in respect of the subsidiary. For the purposes of subclause 181.3(1)(c)(ii)(A)(V) and clause 190.11(b)(i)(E) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time means the total of all amounts each of which would be the total reserve liabilities of a foreign insurance subsidiary of the particular corporation as at the end of the subsidiary’s last taxation year ending at or before the particular time if the subsidiary were required by law to report to the Superintendent of Financial Institutions for that year. foreign insurance subsidiary of a particular corporation at any time means a non-resident corporation that carried on a life insurance business throughout its last taxation year ending at or before that time, did not carry on a life insurance business in Canada at any time in its last taxation year ending at or before that time, and is at that time a subsidiary of the particular corporation, and not a subsidiary of any corporation that is resident in Canada, carried on a life insurance business in Canada at any time in its last taxation year ending at or before that time, and is a subsidiary of the particular corporation. (filiale d’assurance étrangère) subsidiary of a corporation (in this definition referred to as the parent corporation) means a corporation controlled by the parent corporation where shares of each class of the capital stock of the corporation having a fair market value of not less than 75% of the fair market value of all of the issued and outstanding shares of that class belong to the parent corporation, a corporation that is a subsidiary of the parent corporation, or any combination of corporations each of which is a corporation referred to in paragraph (a) or described in paragraph (b). (filiale) For the purposes of paragraph 149.1(6.4)(d) of the Act, the following conditions are prescribed for a national arts service organization: the organization is an organization that is, because of paragraph 149(1)(l) of the Act, exempt from tax under Part I of the Act, that represents, in an official language of Canada, a community of artists from one or more of the following sectors of activity in the arts community, that is, theatre, opera, music, dance, painting, sculpture, drawing, crafts, design, photography, the literary arts, film, sound recording and other audio-visual arts, no part of the income of which may be payable to, or otherwise available for the personal benefit of, any proprietor, member, shareholder, trustee, or settlor of the organization, except where the payment is for services rendered or is an amount to which paragraph 56(1)(n) of the Act applies in respect of the recipient, all of the resources of which are devoted to the activities and objects described in its application for its last designation by the Minister of Canadian Heritage pursuant to paragraph 149.1(6.4)(a) of the Act, more than 50 per cent of the directors, trustees, officers or other officials of which deal with each other at arm’s length, and no more than 50% of the property of which at any time has been contributed or otherwise paid into the organization by one person or members of a group of persons who do not deal with each other at arm’s length and, for the purpose of this subparagraph, a reference to any person or to members of a group does not include a reference to Her Majesty in Right of Canada or a province, a municipality, a registered charity that is not a private foundation or any club, society or association described in paragraph 149(1)(l) of the Act; and the activities of the organization (which may include collective bargaining on behalf of its sector of activity under the Status of the Artist Act, provided it is not the organization’s primary activity) are confined to one or more of promoting one or more art forms, conducting research into one or more art forms, sponsoring arts exhibitions or performances, representing interests of the arts community or a sector thereof (but not of individuals) before governmental, judicial, quasi-judicial or other public bodies, conducting workshops, seminars, training programs and similar development programs relating to the arts for members of the organization, in respect of which the value of benefits received or enjoyed by members of the organization is required by paragraph 56(1)(aa) of the Act to be included in computing the incomes of those members, educating the public about the arts community or the sector represented by the organization, organizing and sponsoring conventions, conferences, competitions and special events relating to the arts community or the sector represented by the organization, conducting arts studies and surveys of interest to members of the organization relating to the arts community or the sector represented by the organization, acting as an information centre by maintaining resource libraries and data bases relating to the arts community or the sector represented by the organization, disseminating information relating to the arts community or the sector represented by the organization, and paying amounts to which paragraph 56(1)(n) of the Act applies in respect of the recipient and which relate to the arts community or the sector represented by the organization. The renovations and alterations that are prescribed for the purposes of paragraph 20(1)(qq) of the Act are the installation of an interior or exterior ramp, or a hand-activated electric door opener; and a modification to a bathroom, elevator or doorway to accommodate its use by a person in a wheelchair. The devices and equipment that are prescribed for the purposes of paragraph 20(1)(rr) of the Act are an elevator car position indicator, such as a braille panel or an audio signal, for individuals having a sight impairment; a visual fire alarm indicator, a listening device for group meetings or a telephone device, for individuals having a hearing impairment; and a disability-specific computer software or hardware attachment. For the purposes of subparagraph 110(1)(f)(iii) and paragraph 126(3)(a) of the Act, the following international organizations are prescribed: the United Nations; and each international organization that is a specialized agency brought into relationship with the United Nations in accordance with Article 63 of the Charter of the United Nations. For the purpose of subparagraph 110(1)(f)(iv) of the Act, the following international non-governmental organizations are prescribed: the International Air Transport Association; the Société internationale de télécommunications aéronautiques; and the World Anti-Doping Agency. [Repealed, 2013, c. 34, s. 412] For the purposes of paragraph (f) of the definition eligible entity in subsection 125.7(1) of the Act, the following entities are prescribed: a corporation that meets the following conditions: it is described in paragraph 149(1)(d.5) of the Act, not less than 90% of the shares, or the capital, of the corporation are owned by one or more Aboriginal governments (as defined in subsection 241(10) of the Act) — or similar Indigenous governing bodies — described in paragraph 149(1)(c) of the Act, and it carries on a business; it is described in paragraph 149(1)(d.6) of the Act, all of the shares (except directors’ qualifying shares), or the capital, of the corporation are owned by one or more of an Aboriginal government (as defined in subsection 241(10) of the Act) — or a similar Indigenous governing body — described in paragraph 149(1)(c) of the Act, or a corporation described in this paragraph or paragraph (a), and a partnership, each member of which is an eligible entity, or an Aboriginal government (as defined in subsection 241(10) of the Act) — or a similar Indigenous governing body — described in paragraph 149(1)(c) of the Act; a partnership, in respect of a qualifying period, if throughout the qualifying period it is the case that is the total of all amounts, each of which is the fair market value of an interest in the partnership held — directly or indirectly, through one or more partnerships — by a person or partnership other than an eligible entity, and is the total fair market value of all interests in the partnership; a person described in paragraph 149(1)(g) or (h) of the Act; and a person or partnership that operates a private school or private college. For the purposes of subsection 125.7(1) of the Act, qualifying tourism or hospitality entity, for a qualifying period, means an eligible entity that meets the following conditions: the entity has a prior year revenue decline greater than or equal to 40%; and the total of all amounts, each of which is the eligible entity’s qualifying revenue for the prior reference period for any of the first qualifying period to the thirteenth qualifying period (but including only one of the tenth qualifying period or the eleventh qualifying period), was earned primarily from carrying on one or more of the following activities: operating or managing a facility providing short-term lodging, such as a hotel, a motel, a cottage, a bed and breakfast or a youth hostel, preparing and serving meals, snacks and beverages made to order for immediate consumption on or off the premises, such as a restaurant, a food truck, a cafeteria, a caterer, a coffee shop, a food concession, a bar, a pub or a nightclub, and for greater certainty, not including the operation of a facility primarily engaged in retailing food or beverage products, such as a supermarket or a convenience store, operating a travel agency or as a tour operator, including: acting as an agent for tour operators, transportation companies and short-term lodging establishments in selling travel, tour and accommodation services, or arranging, assembling and marketing tours, organizing, promoting, hosting, supporting or participating in events that meet the artistic or cultural interests of their patrons, including live performances or exhibits intended for public viewing, preserving and exhibiting objects, sites and natural wonders of historical, cultural or educational value, such as the operation of a museum, a historic and heritage site, a zoo, a botanical garden or a nature park, organizing, promoting or supporting scenic and sightseeing tours, such as sightseeing or dinner cruises, steam train excursions, horse-drawn sightseeing rides, air-boat rides, hot-air balloon rides or charter fishing services, providing charter bus services, if the buses do not operate on fixed routes and schedules, and the entire vehicle is rented, rather than individual seats, operating or managing an amusement or theme park, which includes operating a variety of attractions, such as mechanical rides, water rides, games, shows or theme exhibits, and leasing space on a concession basis for these operations, operating or managing a facility or providing a service that enables patrons to participate in recreational activities, including fitness and recreational sports centres, downhill and cross-country ski/snowboard areas, and equipment such as ski lifts and tows (including revenues from equipment rental services and ski/snowboard instruction services provided at the area), the operation of docking and storage facilities for pleasure-craft owners, with or without related activities, such as retailing fuel and marine supplies, boat repair and maintenance and rental services, the operation of recreation and amusement facilities and services including establishments primarily engaged in maintaining non-gambling coin-operated amusement devices, in businesses operated by others, and other amusement activities, such as amateur sports clubs, teams or leagues, archery or shooting, ballroom dancing, river rafting, curling clubs, mini golf and bowling, and excluding golf, golf instruction and the ownership or operation of a facility that is a golf course, a golf driving range, or a golf clubhouse, country clubs, and professional sports clubs, teams or leagues or facilities used primarily by such organizations, operating or managing serviced or unserviced sites to accommodate campers and their equipment for tents, tent trailers, travel trailers and recreational vehicles, excluding mobile home sites, operating or managing an overnight recreational camp, such as a children’s camp, a family vacation camp or an outdoor adventure retreat, operating or managing a hunting camp or a fishing camp, operating or managing a duty-free retail store at a land border crossing where the only exit route is to the United States, operating or managing a facility that is primarily engaged in exhibiting motion pictures, such as a cinema or a drive-in theatre, operating or managing an amusement arcade, such as a family fun centre, an indoor play area, a pinball arcade or a video game arcade, operating a facility allowing passengers to board and leave a cruise ship, operating or managing an airport, including renting hangar space and providing baggage handling, cargo handling and aircraft parking services, operating or managing a casino, promoting a destination or region in Canada for the purpose of attracting tourism, organizing, planning, promoting, hosting or supporting: conventions, trade shows or festivals, or weddings, parties or similar events, and promoting the interests of the members of an industry organization or association, if the members are primarily engaged in activities described in any of subparagraphs (i) to (xx). partial public health restriction means a public health restriction as defined in subsection 125.7(1) of the Act if paragraphs (f) to (h) of that definition were replaced by the following: as a result of the order or decision, some or all of the activities of the eligible entity — or the specified tenant — at, or in connection with, the qualifying property (that it is reasonable to expect the eligible entity — or the specified tenant — would, absent the order or decision, otherwise have engaged in) are required to be reduced by means of capacity or similar restrictions by not less than 50% (referred to in this subsection as the “limited activities”); and the limited activities are required to be reduced for a period of at least one week. (restrictions sanitaires partielles) qualifying partial public health restriction, of an eligible entity for a qualifying period, means that one or more qualifying properties of the eligible entity — or of one or more specified tenants (within the meaning of the definition public health restriction) of the eligible entity — is subject to a partial public health restriction for at least seven days in the qualifying period; and it is reasonable to conclude that at least approximately 50% of the qualifying revenues of the eligible entity — together with the qualifying revenues of any specified tenants of the eligible entity — for the prior reference period were derived from the limited activities. (restrictions sanitaires partielles admissibles) The amount determined by regulation in respect of a qualifying entity for the purposes of clause (b)(iv)(B) of the description of A in subsection 125.7(2) of the Act for a week in a qualifying period is for the seventh qualifying period and the eighth qualifying period, the greater of the amount determined for the week under subparagraph (a)(i) of the description of A in subsection 125.7(2) of the Act, and the amount determined for the week under subparagraph (a)(ii) of the description of A in subsection 125.7(2) of the Act; for the ninth qualifying period and the tenth qualifying period, the greater of $500, and 55% of baseline remuneration (as defined in subsection 125.7(1) of the Act) in respect of the eligible employee determined for that week, and $573; for any of the eleventh qualifying period to the nineteenth qualifying period, the greater of $595; and for the twentieth qualifying period and any subsequent qualifying period, nil. Base percentage The percentage determined for the purposes of the definition base percentage in subsection 125.7(1) of the Act, in respect of an eligible entity, is, for the twenty-fourth qualifying period to the twenty-sixth qualifying period, the greater of the percentage determined for the eligible entity for the qualifying period under paragraph (l) of the definition base percentage in subsection 125.7(1) of the Act if it were read without the application of this subsection, and the lesser of 75% and the eligible entity’s revenue reduction percentage for the qualifying period, if, for the qualifying period, the eligible entity’s revenue reduction percentage is greater than or equal to 25%, and one of the following conditions is met: the eligible entity is subject to a qualifying public health restriction, or the eligible entity is subject to a qualifying partial public health restriction. [Repealed, 2021, c. 26, s. 3] [Repealed, 2021, c. 26, s. 4] For the purposes of paragraph (e) of the definition financial institution in subsection 142.2(1) of the Act, the following are prescribed persons: the Business Development Bank of Canada; Farm Credit Canada; BDC Capital Inc.; and a trust, at any particular time, if at that particular time the trust is a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a) of the Act), the trust is deemed, under paragraph 138.1(1)(a) of the Act, to have been created at a time that is not more than two years before that particular time, and the cost of the trustee’s interest (as determined by paragraph 138.1(1)(c) and (d) of the Act) in the trust does not exceed $5,000,000. In this section, qualified small business corporation, at any time, means a corporation in respect of which the following conditions are satisfied at that time: the corporation is a Canadian-controlled private corporation; the corporation either is an eligible corporation (as defined in subsection 5100(1)) or would be an eligible corporation if the definition eligible corporation in subsection 5100(1) were read without reference to its paragraph (e); the carrying value of the total assets of the corporation and all corporations related to it (determined in accordance with generally accepted accounting principles on a consolidated or combined basis, where applicable) does not exceed $50,000,000; and the number of employees of the corporation and all corporations related to it does not exceed 500. For the purpose of paragraph (e) of the definition excluded property in subsection 142.2(1) of the Act, a share of the capital stock of a corporation is a prescribed property of a taxpayer if immediately after the time at which the taxpayer acquired the share, the corporation was a qualified small business corporation, and the corporation continued to be a qualified small business corporation for one year after that time, or the taxpayer could not reasonably expect at that time that the corporation would cease to be a qualified small business corporation within one year after that time; or the share was issued to the taxpayer in exchange for one or more shares of the capital stock of the corporation that were, at the time of the exchange, prescribed property of the taxpayer under this subsection. For the purposes of paragraph (e) of the definition excluded property in subsection 142.2(1) of the Act, and of subparagraph 142.6(4)(a)(ii) of the Act, a debt obligation held by a bank is a prescribed property of the bank if the obligation is an exposure to a designated country (within the meaning assigned by section 8006); a United Mexican States Collateralized Par Bond due 2019; or a United Mexican States Collateralized Discount Bond due 2019. For the purpose of paragraph (e) of the definition excluded property in subsection 142.2(1) of the Act, a share is a prescribed property of a taxpayer for a taxation year if the share is a lending asset of the taxpayer in the year; or the share was, immediately after its issuance, a share described in paragraph (e) of the definition term preferred share in subsection 248(1) of the Act, and the share would, at any time in the year, be a term preferred share if that definition were read without ref- erence to the portion following paragraph (b), and where the share was issued or acquired on or before June 28, 1982, it were issued or acquired after that day. For the purpose of paragraph (e) of the definition excluded property in subsection 142.2(1) of the Act, a share of the capital stock of a corporation that is held by a credit union is a prescribed property of the credit union for a taxation year if, throughout the period (referred to in this subsection as the “holding period”) in that taxation year during which the credit union holds the share the corporation is a credit union; or the following conditions are satisfied: credit unions hold shares of the corporation that give those credit unions at least 50% of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation, and have a fair market value of at least 50% of the fair market value of all the issued shares of the corporation, the corporation is not controlled, directly or indirectly in any manner whatever, by any person that is not a credit union, and the corporation would not be controlled by a person that is not a credit union if each share of the corporation that is not owned at any time in the holding period by a credit union were owned, at that time, by the person. For the purpose of subsection (3), if a partnership, at a particular time, owns or holds shares of a corporation (or is deemed under this subsection to own or hold shares of a corporation) that have a fair market value of at least 50% of all the issued shares of the corporation, the partnership is deemed not to exist at that time; and each member of the partnership is deemed to own or hold at that time that proportion of shares of any class of the capital stock of the corporation that are property of the partnership at that time, that the fair market value of the member’s interest in the partnership is of the fair market value of all interests in the partnership at that time. For the purpose of paragraph (3)(b), a subsidiary wholly-owned corporation of a credit union is deemed to be a credit union. For the purpose of paragraph (b) of the definition excluded property in subsection 142.2(1) of the Act, a prescribed payment card corporation share of a taxpayer at any time means a share of the capital stock of a particular corporation if, at that time, the particular corporation is any one of the following MasterCard International Incorporated, MasterCard Incorporated, Visa Inc., or Interac Corp.; and the share is of a class of shares that is not listed on a stock exchange, is not convertible into or exchangeable for a share of the class of the capital stock of a corporation that is listed on a stock exchange, and was issued by the particular corporation to the taxpayer or to a person related to the taxpayer. [Repealed, 2009, c. 2, s. 118] For the purpose of paragraph 142.2(3)(c) of the Act, a share described in paragraph 9002(2)(b) is prescribed in respect of all taxpayers. For the purpose of paragraph (c) of the definition specified debt obligation in subsection 142.2(1) of the Act, a property is a prescribed property throughout a taxation year if the property is a direct financing lease, or any other financing arrangement, of a taxpayer that is reported as a loan in the taxpayer’s financial statements for the year prepared in accordance with generally accepted accounting principles; and in computing the taxpayer’s income for the year, an amount is deductible under paragraph 20(1)(a) of the Act in respect of the property that is the subject of the arrangement. For the purposes of the definition non-reporting financial institution in subsection 270(1) of the Act, the following entities are prescribed: a labour-sponsored venture capital corporation as prescribed in section 6701; a registered retirement savings plan; a registered retirement income fund; a deferred profit sharing plan; a registered disability savings plan; a registered education savings plan; a registered pension plan; a trust governed by a registered pension plan; a trust described in paragraph 149(1)(o.4) of the Act, if all of the interests in the trust as a beneficiary are held by one or more registered pension plans; a corporation described in clause 149(1)(o.1)(i)(A) or subparagraph 149(1)(o.1)(ii) or (o.2)(i) of the Act; a corporation described in any of subparagraphs 149(1)(o.2)(ii) to (iii) of the Act, if all of the shares of the corporation are held by one or more registered pension plans or trusts governed by registered pension plans, one or more trusts described in paragraph (j), or one or more corporations described in this paragraph or paragraph (k); a trust, if all of the interests in the trust as a beneficiary are held by one or more plans, trusts or corporations described in paragraph (i), (k) or (l); a central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act and whose accounts are maintained for member financial institutions; a TFSA; and a FHSA. For the purposes of the definition excluded account in subsection 270(1) of the Act, the following accounts are prescribed: a pooled registered pension plans; a net income stabilization account, including a NISA Fund No. 2; an eligible funeral arrangement; a dormant account if the balance or value of the account does not exceed 1,000 USD; fixed payment obligation, of a taxpayer, means a specified debt obligation under which the amount and timing of each payment (other than a fee or similar payment or an amount payable because of a default by the debtor) to be made by the debtor were fixed when the taxpayer acquired the obligation and have not been changed; and all payments are to be made in the same currency. (titre à paiements fixes) primary currency, of a specified debt obligation, means the currency with which the obligation is primarily connected; and if there is no such currency, Canadian currency. (monnaie principale) tax basis, of a specified debt obligation at any time to a taxpayer, has the meaning assigned by subsection 142.4(1) of the Act. (montant de base) total return, of a taxpayer from a fixed payment obligation, means the amount, measured in the primary currency of the obligation, by which the total of all amounts each of which is the amount of a payment (other than a fee or similar payment) required to be made by the debtor under the obligation after its acquisition by the taxpayer the cost to the taxpayer of the obligation. (rendement total) Inclusion For the purpose of paragraph 142.3(1)(a) of the Act, where a taxpayer holds a specified debt obligation at any time in a taxation year, the amount prescribed in respect of the obligation for the year is the total of the taxpayer’s accrued return from the obligation for the year, if the taxpayer’s accrual adjustment determined under section 9102 in respect of the obligation for the year is greater than nil, the amount of the adjustment, and if a foreign exchange adjustment is determined under section 9104 in respect of the obligation for the year and is greater than nil, the amount of the adjustment. Deduction For the purpose of paragraph 142.3(1)(b) of the Act, where a taxpayer holds a specified debt obligation at any time in a taxation year, the amount prescribed in respect of the obligation is the total of if the taxpayer’s accrual adjustment determined under section 9102 in respect of the obligation for the year is less than nil, the absolute value of the amount of the adjustment, and if a foreign exchange adjustment is determined under section 9104 in respect of the obligation for the year and is less than nil, the absolute value of the amount of the adjustment. Fixed payment obligation not in default For the purpose of paragraph 9101(1)(a), a taxpayer’s accrued return for a taxation year from a fixed payment obligation, under which each payment required to be made before the end of the year was made by the debtor when it was required to be made, shall be determined in accordance with the following rules: determine, in the primary currency of the obligation, the portion of the taxpayer’s total return from the obligation that is allocated to each day in the year using the level-yield method described in subsection (2), or any other reasonable method that is substantially similar to the level-yield method; if the primary currency of the obligation is not Canadian currency, translate to Canadian currency the amount allocated to each day in the year, using a reasonable method of translation; and determine the total of all amounts each of which is the Canadian currency amount allocated to a day, in the year, at the beginning of which the taxpayer holds the obligation. Level-yield method For the purpose of subsection (1), the level-yield method for allocating a taxpayer’s total return from a fixed payment obligation is the method that allocates, to each particular day in the period that begins on the day following the day on which the taxpayer acquired the obligation and that ends on the day on which the obligation matures, the amount determined by the formula is the cost of the obligation to the taxpayer (expressed in the primary currency of the obligation); is the total of all amounts each of which is the portion of the taxpayer’s total return from the obligation that is allocated to a day before the particular day; is the total of all payments required to be made under the obligation after it was acquired by the taxpayer and before the particular day; and is the rate of interest per day that, if used in computing the present value (as of the end of the day on which the taxpayer acquired the obligation and based on daily compounding) of all payments to be made under the obligation after it was acquired by the taxpayer, produces a present value equal to the cost to the taxpayer of the obligation (expressed in the primary currency of the obligation). Other specified debt obligations For the purpose of paragraph 9101(1)(a), a taxpayer’s accrued return for a taxation year from a specified debt obligation, other than an obligation to which subsection (1) applies, shall be determined using a reasonable method that, taking into account the extent to which the obligation differs from fixed payment obligations, is consistent with the principles implicit in the methods that can be used under subsection (1) for fixed payment obligations, and is in accordance with generally accepted accounting practice for the measurement of profit from debt obligations; and on the basis of reasonable assumptions with respect to the timing and amount of any payments to be made by the debtor under the obligation that are not fixed in their timing or amount (expressed in the primary currency of the obligation). Accrual adjustment nil For the purposes of paragraphs 9101(1)(b) and (2)(a), if subsection 142.3(1) of the Act applies to a taxpayer for a particular taxation year in respect of a specified debt obligation and either the subsection did not apply in respect of the obligation for the taxpayer’s immediately preceding taxation year or the taxpayer did not own the obligation at the end of that immediately preceding taxation year, the taxpayer’s accrual adjustment in respect of the obligation for the particular taxation year is nil. Accrual adjustment For the purposes of paragraphs 9101(1)(b) and (2)(a), if subsection (4) does not apply to determine a taxpayer’s accrual adjustment in respect of a specified debt obligation for a particular taxation year, the taxpayer’s accrual adjustment is the positive or negative amount determined by the formula is the total of all amounts each of which is the amount that would be the taxpayer’s accrued return from the obligation for a taxation year, before the particular taxation year, for which subsection 142.3(1) of the Act applied to the taxpayer in respect of the obligation if the accrued return were redetermined on the basis of (a)the information available at the end of the particular taxation year, and the information available at the end of the particular taxation year, and (b)the assumptions, if any, with respect to the timing and amount of payments to be made under the obligation after the particular taxation year that were used for the purpose of determining the taxpayer’s accrued return from the obligation for the particular taxation year; and the assumptions, if any, with respect to the timing and amount of payments to be made under the obligation after the particular taxation year that were used for the purpose of determining the taxpayer’s accrued return from the obligation for the particular taxation year; and (a)the amount included under paragraph 9101(1)(a) as the taxpayer’s accrued return from the obligation for the taxation year immediately preceding the particular taxation year, and the amount included under paragraph 9101(1)(a) as the taxpayer’s accrued return from the obligation for the taxation year immediately preceding the particular taxation year, and (b)if the taxpayer’s accrual adjustment in respect of the obligation for that immediately preceding taxation year was determined under this subsection, the value of A for the purpose of determining that accrual adjustment. if the taxpayer’s accrual adjustment in respect of the obligation for that immediately preceding taxation year was determined under this subsection, the value of A for the purpose of determining that accrual adjustment. Special cases and transition The rules in this section for determining accrued returns and accrual adjustments are subject to section 9103. Convertible obligation For the purposes of section 9102, if the terms of a specified debt obligation of a taxpayer give the taxpayer the right to exchange the obligation for shares of the debtor or of a corporation related to the debtor subject to paragraph (b), the right shall be disregarded (whether it has been exercised or not); and if 5% or more of the cost of the obligation to the taxpayer is attributable to the right, the cost is deemed to equal the amount by which the cost exceeds the portion of the cost attributable to the right. [Repealed, SOR/2009-222, s. 7] Amendment of obligation If the terms of a specified debt obligation of a taxpayer are amended at any time in a taxation year of the taxpayer to change the timing or amount of any payment to be made, at or after that time, under the obligation, the taxpayer’s accrued returns for the taxation year and for each subsequent taxation year are to be redetermined under section 9102 using a reasonable method that fully gives effect, in those accrued returns, to the alteration to the payments under the obligation. Obligations acquired before financial institution rules apply If a taxpayer held a specified debt obligation at the beginning of the taxpayer’s first taxation year (in this subsection referred to as the “initial year”) for which subsection 142.3(1) of the Act applied to the taxpayer in respect of the obligation, the following rules apply: the taxpayer’s accrued return from the obligation for the initial year or a subsequent taxation year shall not include an amount to the extent that the amount was included in computing the taxpayer’s income for a taxation year preceding the initial year; and if interest on the obligation in respect of a period before the initial year becomes receivable or is received by the taxpayer in a particular taxation year that is the initial year or a subsequent taxation year, and all or part of the interest would not, but for this paragraph, be included in computing the taxpayer’s income for any taxation year, there shall be included in determining the taxpayer’s accrued return from the obligation for the particular taxation year the amount, if any, by which the portion of the interest that would not otherwise be included in computing the taxpayer’s income for any taxation year the portion of the cost of the obligation to the taxpayer that is reasonably attributable to that portion of the interest. Prepaid interest — transition rule If, before November 1994 and in a taxation year that ended after February 22, 1994, a taxpayer received an amount under a specified debt obligation in satisfaction, in whole or in part, of the debtor’s obligation to pay interest in respect of a period after the taxation year, the amount may, at the election of the taxpayer, be included in determining the taxpayer’s accrued return for the taxation year from the obligation; and if the amount is so included, the taxpayer’s accrued returns for subsequent taxation years from the obligation shall not include any amount in respect of interest that, because of the payment of the amount, the debtor is no longer required to pay.

Obligations held at end of taxation year For the purposes of paragraphs 9101(1)(c) and (2)(b), if, at the end of a taxation year, a taxpayer holds a specified debt obligation the primary currency of which is not Canadian currency, the taxpayer’s foreign exchange adjustment in respect of the obligation for the taxation year is the positive or negative amount determined by the formula is the amount that would be the tax basis of the obligation to the taxpayer at the end of the year if (a)the tax basis were determined using the primary currency of the obligation as the currency in which all amounts are expressed, the tax basis were determined using the primary currency of the obligation as the currency in which all amounts are expressed, (b)the definition tax basis in subsection 142.4(1) of the Act were read without reference to paragraphs (f), (h), (o) and (q), and the definition tax basis in subsection 142.4(1) of the Act were read without reference to paragraphs (f), (h), (o) and (q), and (c)the taxpayer’s foreign exchange adjustment in respect of the obligation for each year were nil; the taxpayer’s foreign exchange adjustment in respect of the obligation for each year were nil; is the rate of exchange at the end of the year of the primary currency of the obligation into Canadian currency; and (a)the definition tax basis in subsection 142.4(1) of the Act were read without reference to paragraphs (h) and (q), and the definition tax basis in subsection 142.4(1) of the Act were read without reference to paragraphs (h) and (q), and (b)the taxpayer’s foreign exchange adjustment in respect of the obligation for the year were nil. the taxpayer’s foreign exchange adjustment in respect of the obligation for the year were nil. Disposition of obligation If a taxpayer disposes of a specified debt obligation the primary currency of which is not Canadian currency, the taxpayer’s foreign exchange adjustment in respect of the obligation for the taxation year in which the disposition occurs is the amount that would be the foreign exchange adjustment if the taxation year had ended immediately before the disposition. Disposition of obligation before 1996 At the election of a taxpayer, subsection (2) does not apply to specified debt obligations disposed of by the taxpayer before 1996. gain, of a taxpayer from the disposition of a specified debt obligation, means the gain from the disposition determined under paragraph 142.4(6)(a) of the Act. (gain) loss, of a taxpayer from the disposition of a specified debt obligation, means the loss from the disposition determined under paragraph 142.4(6)(b) of the Act. (perte) residual portion, of a taxpayer’s gain or loss from the disposition of a specified debt obligation, means the amount determined under subsection 142.4(8) of the Act in respect of the disposition. (partie résiduelle) Amortization date For the purposes of this Part, the amortization date for a specified debt obligation disposed of by a taxpayer is the day determined as follows: subject to paragraphs (b) to (d), the amortization date is the later of the day of disposition and the day on which the debtor is required to make the final payment under the obligation, determined without regard to any option respecting the timing of payments under the obligation (other than an option that was exercised before the disposition); subject to paragraphs (c) and (d), the amortization date is the day of disposition if the day on which the debtor is required to make the final payment under the obligation is not determinable for the purpose of paragraph (a); subject to paragraph (d), the amortization date is the first day, if any, after the disposition on which the interest rate could change, if the obligation is one in respect of which the following conditions are satisfied: the obligation provides for stipulated interest payments, the rate of interest for one or more periods after the issuance of the obligation was not fixed on the day of issue, and when the obligation was issued, it was reasonable to expect that the interest rate for each period would equal or approximate a reasonable market rate of interest for that period; and if, for purposes of its financial statements, the taxpayer had a gain or loss from the disposition that is being amortized to profit, the amortization date is the last day of the amortization period. Transition amount For the purpose of subsection 142.4(1) of the Act, transition amount, of a taxpayer in respect of the disposition of a specified debt obligation, means, if neither paragraph (b) nor (c) applies, nil; the taxpayer acquired the obligation before its taxation year that includes February 23, 1994, neither paragraph 7000(2)(a) nor (b) has applied to the obligation, and the principal amount of the obligation exceeds the cost of the obligation to the taxpayer (which excess is referred to in this paragraph as the “discount”), is the total of all amounts each of which is the amount included in respect of the discount in computing the taxpayer’s profit for a taxation year that ended before February 23, 1994, and is the total of all amounts each of which is the amount included in respect of the discount in computing the taxpayer’s income for a taxation year that ended before February 23, 1994; and the conditions in subparagraphs (b)(i) and (ii) are satisfied, and the cost of the obligation to the taxpayer exceeds the principal amount of the obligation (which excess is referred to in this paragraph as the “premium”), the negative of the amount determined by the formula is the total of all amounts each of which is the amount deducted in respect of the premium in computing the taxpayer’s profit for a taxation year that ended before February 23, 1994, and is the total of all amounts each of which is the amount deducted in respect of the premium in computing the taxpayer’s income for a taxation year that ended before February 23, 1994. Application of related election The following rules apply with respect to an election made under subsection (3) or (4) by a taxpayer: the election applies only if it is in writing, it specifies the first taxation year (in this subsection referred to as the “initial year”) of the taxpayer to which it is to apply, and either it is received by the Minister within six months after the end of the initial year, or the Minister has expressly accepted the later filing of the election; subject to paragraph (c), the election applies to dispositions of specified debt obligations in the initial year and subsequent taxation years; and if the Minister has approved, on written application by the taxpayer, the revocation of the election, the election does not apply to dispositions of specified debt obligations in the taxation year specified in the application and in subsequent taxation years. Prescribed specified debt obligation For the purpose of subparagraph 142.4(5)(a)(ii) of the Act, a specified debt obligation disposed of by a taxpayer in a taxation year is prescribed in respect of the taxpayer if the amortization date for the obligation is not more than two years after the end of the taxation year. Prescribed specified debt obligation — exception Subsection (2) does not apply in respect of a taxpayer for a taxation year if generally accepted accounting principles require that the taxpayer’s gains and losses arising on the disposition of a class of debt obligations be amortized to profit for the purpose of the taxpayer’s financial statements; the taxpayer has elected not to have subsection (2) apply; and the election applies to dispositions in the year. For the purpose of subparagraph 142.4(5)(a)(ii) of the Act, a specified debt obligation disposed of by a taxpayer in a taxation year is prescribed in respect of the taxpayer if the taxpayer has elected to have this subsection apply; the election applies to dispositions in the year; and the absolute value of the positive or negative amount determined by the formula (A - B) does not exceed the lesser of $5,000 and the amount, if any, specified in the election, where is the total of all amounts each of which is the residual portion of the taxpayer’s gain from the disposition of the obligation or any other specified debt obligation disposed of in the same transaction, and is the total of all amounts each of which is the residual portion of the taxpayer’s loss from the disposition of the obligation or any other specified debt obligation disposed of in the same transaction. the disposition resulted in an extinguishment of the obligation, other than an extinguishment that occurred because of a purchase of the obligation by the debtor in the open market; the taxpayer had the right to require the obligation to be settled at any time; or the debtor had the right to settle the obligation at any time. Allocation of residual portion Subject to section 9204, if subsection 142.4(4) of the Act applies to the disposition of a specified debt obligation by a taxpayer, the amount allocated to each taxation year in respect of the residual portion of the gain or loss from the disposition shall be determined, for the purpose of that subsection, by a method that complies with, or is substantially similar to a method that complies with, subsection (2); or if gains and losses from the disposition of debt obligations are amortized to profit for the purpose of the taxpayer’s financial statements, by the method used for the purpose of the taxpayer’s financial statements. Proration method For the purpose of subsection (1), a method for allocating to taxation years the residual portion of a taxpayer’s gain or loss from the disposition of a specified debt obligation complies with this subsection if the amount allocated to each taxation year is determined by the formula is the residual portion of the taxpayer’s gain or loss; is the number of days in the taxation year that are in the period referred to in the description of C; and is the number of days in the period that, (a)where subsection (3) applies in respect of the obligation, is determined under that subsection, and where subsection (3) applies in respect of the obligation, is determined under that subsection, and (b)in any other case,(i)begins on the day on which the taxpayer disposed of the obligation, and(ii)ends on the earlier of(A)the amortization date for the obligation, and(B)the day that is 20 years after the day on which the taxpayer disposed of the obligation. in any other case, (i)begins on the day on which the taxpayer disposed of the obligation, and begins on the day on which the taxpayer disposed of the obligation, and (ii)ends on the earlier of(A)the amortization date for the obligation, and(B)the day that is 20 years after the day on which the taxpayer disposed of the obligation. ends on the earlier of (A)the amortization date for the obligation, and the amortization date for the obligation, and (B)the day that is 20 years after the day on which the taxpayer disposed of the obligation. the day that is 20 years after the day on which the taxpayer disposed of the obligation. Single proration period This subsection applies in respect of specified debt obligations disposed of by a taxpayer in a transaction in a taxation year, and the period determined under this subsection in respect of the obligations is the period that begins on the day of disposition and ends on the weighted average amortization date for those obligations so disposed of to which subsection 142.4(4) of the Act applies, if the taxpayer has elected in its return of income for the taxation year to have this subsection apply in respect of the obligations so disposed of; all the obligations so disposed of were disposed of at the same time; and the number of the obligations so disposed of to which subsection 142.4(4) of the Act applies is at least 50. Weighted average amortization date For the purpose of subsection (3), the weighted average amortization date for a group of specified debt obligations disposed of on the same day by a taxpayer is, if paragraph (b) does not apply, the day that is the number of days after the day of disposition equal to the total of the number of days determined in respect of each obligation by the formula is the number of days from the day of disposition to the amortization date for the obligation, is the residual portion of the gain or loss from the disposition of the obligation, and is the total of all amounts each of which is the residual portion of the gain or loss from the disposition of an obligation in the group; and the day that the taxpayer determines using a reasonable method for estimating the day determined under paragraph (a). Application This section applies for the purposes of subparagraphs 142.4(4)(c)(ii) and (d)(ii) of the Act. Winding-up If subsection 88(1) of the Act has applied to the winding-up of a taxpayer (in this subsection referred to as the “subsidiary”), the following rules apply in respect of the residual portion of a gain or loss of the subsidiary from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies: the amount of that residual portion allocated to the taxation year of the subsidiary in which its assets were distributed to its parent on the winding-up shall be determined on the assumption that the taxation year ended when the assets were distributed to its parent; no amount shall be allocated in respect of that residual portion to any taxation year of the subsidiary after its taxation year in which its assets were distributed to its parent; and the amount of that residual portion allocated to the taxation year of the parent in which the subsidiary’s assets were distributed to it shall be determined on the assumption that the taxation year began when the assets were distributed to it. [Repealed, SOR/2009-302, s. 12] Transfer of an insurance business No amount in respect of the residual portion of a gain or loss of an insurer from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies shall be allocated to any taxation year of the insurer that ends after the insurer ceased to carry on all or substantially all of an insurance business, if subsection 138(11.5) or (11.94) of the Act has applied to the transfer of that business; and the person to whom that business was transferred is considered, because of paragraph 138(11.5)(k) of the Act, to be the same person as the insurer in respect of that residual portion. Transfer to new partnership If subsection 98(6) of the Act deems a partnership (in this subsection referred to as the “new partnership”) to be a continuation of another partnership (in this subsection referred to as the “predecessor partnership”), the following rules apply in respect of the residual portion of a gain or loss of the predecessor partnership from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies: the amount of that residual portion allocated to the taxation year of the predecessor partnership in which its property was transferred to the new partnership shall be determined on the assumption that the taxation year ended when the property was transferred; no amount shall be allocated in respect of that residual portion to any taxation year of the predecessor partnership after its taxation year in which its property was transferred to the new partnership; and the amount of that residual portion allocated to the taxation year of the new partnership in which the predecessor partnership’s property was transferred to it shall be determined on the assumption that the taxation year began when the property was transferred to it. Ceasing to carry on business There shall be allocated to a particular taxation year of a taxpayer the part, if any, of the residual portion of the taxpayer’s gain or loss that is from a disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies and that was not allocated to a preceding taxation year, if at any time in the particular taxation year the taxpayer ceases to carry on all or substantially all of a business, otherwise than as a result of a merger to which subsection 87(2) of the Act applies, a winding-up to which subsection 88(1) of the Act applies or a transfer of the business to which subsection 98(6) or 138(11.5) or (11.94) of the Act applies; the disposition occurred before that time; and the specified debt obligation was property used in the business. Non-resident taxpayer For the purpose of subsection (5), a non-resident taxpayer is considered to cease to carry on all or substantially all of a business if the taxpayer ceases to carry on, or ceases to carry on in Canada, all or substantially all of the part of the business that was carried on in Canada. Ceasing to be a financial institution the particular taxation year ends immediately before the time at which the taxpayer ceases to be a financial institution, otherwise than because it has ceased to carry on a business; and the disposition occurred before that time. Subject to subsection (2), for the purpose of section 125.5 of the Act, accredited production means a film or video production in respect of which the aggregate expenditures, included in the cost of the production, in the period that ends 24 months after the time that the principal filming or taping of the production began, exceeds $1,000,000; and a film or video production that is part of a series of television productions that has two or more episodes, or is a pilot programme for such a series of episodes, in respect of which the aggregate expenditures included in the cost of each episode in the period that ends 24 months after the time that the principal filming or taping of the production began exceeds in the case of an episode whose running time is less than 30 minutes, $100,000, and in any other case, $200,000. The references to “24 months” in paragraphs 9300(1)(a) and (b) are to be read as references to “36 months” in respect of film or video productions for which the Canadian labour expenditure of the corporation in respect of the production for the taxation years ending in 2020 or 2021 was greater than nil. An accredited production does not include a production that is any of the following: news, current events or public affairs programming, or a programme that includes weather or market reports; a talk show; a production in respect of a game, questionnaire or contest; a sports event or activity; a gala presentation or awards show; a production that solicits funds; reality television; pornography; advertising; and a production produced primarily for industrial, corporate or institutional purposes. [Repealed, 2016, c. 7, s. 59] Prescribed rights For the purpose of subparagraph 144.1(2)(g)(iii) of the Act, prescribed payments are payments to General Motors of Canada Limited or Chrysler Canada Inc. by the employee life and health trust established for the benefit of retired automobile industry workers by the Canadian Auto Workers’ Union that are reasonable in the circumstances; are made as consideration for administrative services provided to or on behalf of the trust or its beneficiaries, or as reimbursement for employee benefit payments made on behalf of, or in contemplation of the establishment of, the trust; and the recipient acknowledges in writing shall be included in computing the recipient’s income in the year that they are receivable, to the extent that the recipient deducts in the year, or deducted in a prior year, in computing its income amounts in respect of the services or benefit payments described in paragraph (b). Prescribed durable goods For the purpose of the definition teaching supplies in subsection 122.9(1) of the Act, the following are prescribed durable goods: books; games and puzzles; containers (such as plastic boxes or banker boxes); educational support software; calculators (including graphing calculators); external data storage devices; web cams, microphones and headphones; multimedia projectors; wireless pointer devices; electronic educational toys; digital timers; speakers; video streaming devices; printers; and laptop, desktop and tablet computers, provided that none of these items are made available to the eligible educator by their employer for use outside of the classroom. Tax credit — air quality improvement HEPA filter means a high-efficiency particulate air filter that has been tested to ensure efficiency equal to or exceeding 99.97% for removal of airborne particles having a mean aerodynamic diameter of 0.3 µm (micrometres) from the air. (filtre HEPA) HVAC system means a mechanical heating, ventilating and air conditioning system that is installed in a building, and includes all of its equipment and components. (système CVCA) MERV means the minimum efficiency reporting value parameters specified in ANSI/ASHRAE Standard 52.2-2017, Method of Testing General Ventilation Air-Cleaning Devices for Removal Efficiency by Particle Size, Section 12, Minimum Efficiency Reporting Value (MERV) for Air Cleaners, Table 12-1, Minimum Efficiency Reporting Value (MERV) Parameters. (MERV) Subject to subsection (3), for the purposes of the definition qualifying expenditure in subsection 127.43(1) of the Act, the following outlays and expenses are prescribed to the extent that they are reasonable and intended primarily to increase outdoor air intake or to improve air cleaning: outlays and expenses that are directly attributable to the purchase, installation, conversion or upgrade of a new or retrofitted HVAC system placed in service at a qualifying location that meets either of the following conditions: the system is designed to filter air at a rate in excess of MERV 8 or an equivalent level of filtration, or the system is designed to filter air at a rate equal to MERV 8 or an equivalent level of filtration and the following conditions are met: the system is designed to achieve an outdoor air supply rate in excess of what is required for the space by applicable building codes, and in the case of an upgrade or conversion of an existing system, prior to the upgrade or conversion, the system was designed to filter air at a rate equal to MERV 8; and outlays and expenses that are directly attributable to the purchase of a device that is placed in service at a qualifying location and designed to filter air using a HEPA filter. The outlays and expenses in subsection (2) do not include an outlay or expense of an eligible entity made or incurred under the terms of an agreement entered into before the start of the qualifying period; that is the cost of recurring or routine repair or maintenance; that can reasonably be expected to be paid or returned, directly or indirectly, in any manner whatever, to the eligible entity, a person or partnership not dealing at arm’s length with the eligible entity, or another person or partnership at the direction of the eligible entity; that is paid to a party with which the eligible entity does not deal at arm’s length; that is salary or wages paid to an employee of the eligible entity; or for financing costs. For the purposes of paragraph 102(1)(c), the ranges of remuneration for each pay period in a taxation year shall be determined as follows: in respect of a daily pay period, the ranges of remuneration shall commence at $44 and increase in increments of $2 for each range up to and including $151.99; in respect of a weekly pay period, the ranges of remuneration shall commence at $202 and increase in increments of $2 for each range up to and including $309.99, $4 for each range from $310 to $529.99, $8 for each range from $530 to $969.99, $12 for each range from $970 to $1,629.99, $16 for each range from $1,630 to $2,509.99, $20 for each range from $2,510 to $3,609.99; in respect of a bi-weekly pay period, the ranges of remuneration shall commence at $403 and increase in increments of $4 for each range up to and including $618.99, $8 for each range from $619 to $1,058.99, $16 for each range from $1,059 to $1,938.99, $24 for each range from $1,939 to $3,258.99, $32 for each range from $3,259 to $5,018.99, $40 for each range from $5,019 to $7,218.99; in respect of a semi-monthly pay period, the ranges of remuneration shall commence at $437 and increase in increments of $4 for each range up to and including $652.99, $8 for each range from $653 to $1,092.99, $18 for each range from $1,093 to $2,082.99, $26 for each range from $2,083 to $3,512.99, $34 for each range from $3,513 to $5,382.99, $44 for each range from $5,383 to $7,802.99; in respect of 12 monthly pay periods, the ranges of remuneration shall commence at $873 and increase in increments of $8 for each range up to and including $1,304.99, $18 for each range from $1,305 to $2,294.99, $34 for each range from $2,295 to $4,164.99, $52 for each range from $4,165 to $7,024.99, $70 for each range from $7,025 to $10,874.99, $86 for each range from $10,875 to $15,604.99; in respect of 10 monthly pay periods, the ranges of remuneration shall commence at $1,048 and increase in increments of $10 for each range up to and including $1,587.99, $20 for each range from $1,588 to $2,687.99, $42 for each range from $2,688 to $4,997.99, $62 for each range from $4,998 to $8,407.99, $84 for each range from $8,408 to $13,027.99, $104 for each range from $13,028 to $18,747.99; in respect of four-week pay periods, the ranges of remuneration shall commence at $806 and increase in increments of $8 for each range up to and including $1,237.99, $16 for each range from $1,238 to $2,117.99, $32 for each range from $2,118 to $3,877.99, $48 for each range from $3,878 to $6,517.99, $64 for each range from $6,518 to $10,037.99, $80 for each range from $10,038 to $14,437.99; in respect of 22 pay periods per annum, the ranges of remuneration shall commence at $477 and increase in increments of $6 for each range up to and including $800.99, $10 for each range from $801 to $1,350.99, $18 for each range from $1,351 to $2,340.99, $28 for each range from $2,341 to $3,880.99, $38 for each range from $3,881 to $5,970.99, $48 for each range from $5,971 to $8,610.99. For the purposes of paragraph 102(1)(d), the mid-point of the range of amount of personal credits for a taxation year shall be as follows: from $0 to $8,929, $8,929; from $8,929.01 to $10,817, $9,873.00; from $10,817.01 to $12,705, $11,761.00; from $12,705.01 to $14,593, $13,649.00; from $14,593.01 to $16,481, $15,537.00; from $16,481.01 to $18,369, $17,425.00; from $18,369.01 to $20,257, $19,313.00; from $20,257.01 to $22,145, $21,201.00; from $22,145.01 to $24,033, $23,089.00; from $24,033.01 to $25,921, $24,977.00; for amounts in excess of $25,921, the amount of the personal credits. Property not included in any other class that is a bridge; a canal; a culvert; a dam; a jetty acquired before May 26, 1976; a mole acquired before May 26, 1976; a road, sidewalk, airplane runway, parking area, storage area or similar surface construction, acquired before May 26, 1976; railway track and grading, including components such as rails, ballast, ties and other track material, that is not part of a railway system, or that was acquired after May 25, 1976; railway traffic control or signalling equipment, acquired after May 25, 1976, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor; a subway or tunnel, acquired after May 25, 1976; electrical generating equipment (except as specified elsewhere in this Schedule); a pipeline, other than a pipeline that is gas or oil well equipment, and a pipeline that is for oil or natural gas if the Minister, in consultation with the Minister of Natural Resources, is or has been satisfied that the main source of supply for the pipeline is or was likely to be exhausted within 15 years after the date on which the operation of the pipeline commenced; the generating or distributing equipment and plant (including structures) of a producer or distributor of electrical energy; manufacturing and distributing equipment and plant (including structures) acquired primarily for the production or distribution of gas, except a property acquired for the purpose of producing or distributing gas that is normally distributed in portable containers, a property acquired for the purpose of processing natural gas, before the delivery of such gas to a distribution system, or a property acquired for the purpose of producing oxygen or nitrogen; the distributing equipment and plant (including structures) of a distributor of water; the production and distributing equipment and plant (including structures) of a distributor of heat; or a building or other structure, or a part of it, including any component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators (except property described in any of paragraphs (k) and (m) to (p) of this Class or in any of paragraphs (a) to (e) of Class 8). Property that is electrical generating equipment (except as specified elsewhere in this Schedule), a pipeline, other than gas or oil well equipment, unless, in the case of a pipeline for oil or natural gas, the Minister in consultation with the Minister of Energy, Mines and Resources, is or has been satisfied that the main source of supply for the pipeline is or was likely to be exhausted within 15 years from the date on which operation of the pipeline commenced, the generating or distributing equipment and plant (including structures) of a producer or distributor of electrical energy, except a property included in Class 10, 13, 14, 26 or 28, a property included in Class 10, 13 or 14, a property acquired for the purpose of processing natural gas, before delivery of such gas to a distribution system, or a property acquired for the purpose of producing oxygen or nitrogen, the distributing equipment and plant (including structures) of a distributor of water, except a property included in Class 10, 13 or 14, the production and distributing equipment and plant (including structures) of a distributor of heat, except a property included in Class 10, 13 or 14, acquired by the taxpayer that is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987. a building or other structure, or part thereof, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, acquired by the taxpayer that is a component part of a building that was under construction by or on behalf of the taxpayer on June 18, 1987; a breakwater; a dock; a trestle; a windmill; a wharf; an addition or alteration, made during the period that is after March 31, 1967 and before 1988, to a building that would have been included in this class during that period but for the fact that it was included in Class 20; a jetty acquired after May 25, 1976; a mole acquired after May 25, 1976; telephone, telegraph or data communication equipment, acquired after May 25, 1976, that is a wire or cable; an addition or alteration, other than an addition or alteration described in paragraph (k) of Class 6, made after 1987, to a building included, in whole or in part, in this class, in Class 6 by virtue of subparagraph (a)(viii) thereof, or in Class 20, to the extent that the aggregate cost of all such additions or alterations to the building does not exceed the lesser of $500,000, and 25 per cent of the aggregate of the amounts that would, but for this paragraph, be the capital cost of the building and any additions or alterations thereto included in this class or Class 6 or 20; or ancillary to a wire or cable referred to in paragraph (j) or Class 42 and that is supporting equipment such as a pole, mast, tower, conduit, brace, crossarm, guy or insulator. Property that would otherwise be included in another class in this Schedule that is a railway system or a part thereof, except automotive equipment not designed to run on rails or tracks, that was acquired after the end of the taxpayer’s 1958 taxation year and before May 26, 1976; or a tramway or trolley bus system or a part thereof, except property included in Class 10, 13 or 14. a chemical pulp mill or ground wood pulp mill, including buildings, machinery and equipment, but not including hydro-electric power plants and their equipment, or an integrated mill producing chemical pulp or ground wood pulp and manufacturing therefrom paper, paper board or pulp board, including buildings, machinery and equipment, but not including hydro-electric power plants and their equipment, but not including any property that was acquired after the end of the taxpayer’s 1962 taxation year. a building of corrugated metal construction, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, if the building is used by the taxpayer for the purpose of gaining or producing income from farming or fishing, has no footings or any other base support below ground level, was acquired by the taxpayer before 1979 and is not a building described in subparagraph (vi) or (vii), was acquired by the taxpayer after 1978 under circumstances such that he was obligated to acquire the building under the terms of an agreement in writing entered into before 1979, and the installation of footings or any other base support of the building was commenced before 1979, or he commenced construction of the building before 1979, or the construction of the building was commenced under the terms of an agreement in writing entered into by him before 1979, and the installation of footings or any other base support of the building was commenced before 1979; a wooden breakwater; a fence; a greenhouse; a railway tank car acquired before May 26, 1976; a wooden wharf; an airplane hangar acquired after the end of the taxpayer’s 1958 taxation year; an addition or alteration, made during the period that is after March 31, 1967 and before 1979, or after 1978 if the taxpayer was obligated to have it made under the terms of an agreement in writing entered into before 1979, to a building that would have been included in this class during that period but for the fact that it was included in Class 20; a railway locomotive that is acquired after May 25, 1976 and before February 26, 2008 and that is not an automotive railway car; an addition or alteration, made after 1978 to a building included in this class by virtue of subparagraph (a)(viii), to the extent that the aggregate cost of all such additions and alterations to the building does not exceed $100,000. a canoe or rowboat; a scow; a vessel, but not including a vessel of a separate class prescribed by subsection 1101(2a), or included in Class 41; furniture, fittings or equipment attached to a property included in this class, but not including radiocommunication equipment; a spare engine for a property included in this class; a marine railway; a vessel under construction, other than a vessel included in Class 41; subject to an election made under subsection 1103(2i), property acquired after February 27, 2000 that is a rail suspension device designed to carry trailers that are designed to be hauled on both highways and railway tracks, or a railway car; property that is acquired after February 27, 2000 (other than property included in paragraph (y) of Class 10), that is a railway locomotive and that is not an automotive railway car; pumping or compression equipment, including equipment ancillary to pumping and compression equipment, acquired after February 22, 2005 if the equipment pumps or compresses petroleum, natural gas or a related hydrocarbon for the purpose of moving it through a transmission pipeline, from a transmission pipeline to a storage facility, or to a transmission pipeline from a storage facility; or pumping or compression equipment that is acquired after February 25, 2008, including equipment ancillary to pumping and compression equipment, that is on a pipeline and that pumps or compresses carbon dioxide for the purpose of moving it through the pipeline. Property not included in Class 1, 2, 7, 9, 11, 17, 30, 57 or 58 that is a structure that is manufacturing or processing machinery or equipment; tangible property attached to a building and acquired solely for the purpose of servicing, supporting or providing access to or egress from, machinery or equipment, manufacturing or processing, or any combination of the functions described in subparagraphs (i) and (ii); a building that is a kiln, tank or vat, acquired for the purpose of manufacturing or processing; a building or other structure, acquired after February 19, 1973, that is designed for the purpose of preserving ensilage on a farm; a building or other structure, acquired after February 19, 1973, that is designed to store fresh fruits or fresh vegetables at a controlled level of temperature and humidity, and to be used principally for the purpose of storing fresh fruits or fresh vegetables by or for the person or persons by whom they were grown; electrical generating equipment acquired after May 25, 1976, if the taxpayer is not a person whose business is the production for the use of or distribution to others of electrical energy, the equipment is auxiliary to the taxpayer’s main power supply, and the equipment is not used regularly as a source of supply; electrical generating equipment, acquired after May 25, 1976, that has a maximum load capacity of not more than 15 kilowatts; portable electrical generating equipment acquired after May 25, 1976; a tangible capital property that is not included in another class in this Schedule except land or any part thereof or any interest therein, an animal, a tree, shrub, herb or similar growing thing, an oil or gas well, a mine, a specified temporary access road of the taxpayer, radium, a right of way, a timber limit, a tramway track, or property of a separate class prescribed by subsection 1101(2a); property not included in any other class that is radiocommunication equipment acquired after May 25, 1976; a rapid transit car that is used for the purpose of public transportation within a metropolitan area and is not part of a railway system; an outdoor advertising poster panel or bulletin board; or a greenhouse constructed of a rigid frame and a replaceable, flexible plastic cover. Property acquired before May 26, 1976, other than property included in Class 30, that is electrical generating equipment, if the equipment is not used regularly as a source of supply, radar equipment, radio transmission equipment, radio receiving equipment, electrical generating equipment that has a maximum load capacity of not more than 15 kilowatts, or portable electrical generating equipment, and property acquired after May 25, 1976 that is an aircraft; furniture, fittings or equipment attached to an aircraft; or a spare part for an aircraft, or for furniture, fittings or equipment attached to an aircraft. automotive equipment, including a trolley bus, but not including an automotive railway car acquired after May 25, 1976, a railway locomotive, or a tramcar, a portable tool acquired after May 25, 1976 for the purpose of earning rental income for short terms, such as hourly, daily, weekly or monthly, except a property described in Class 12, harness or stable equipment, a sleigh or wagon, a trailer, including a trailer designed to be hauled on both highways and railway tracks, general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, acquired after May 25, 1976 and before March 23, 2004 (or after March 22, 2004 and before 2005 if an election in respect of the property is made under subsection 1101(5q)), but not including property that is principally or is used principally as electronic process control or monitor equipment, electronic communications control equipment, systems software for a property referred to in subparagraph (i) or (ii), or data handling equipment unless it is ancillary to general-purpose electronic data processing equipment, a designated underground storage cost, or an unmanned telecommunication spacecraft designed to orbit above the earth, and property (other than property included in Class 41, 41.1 or 41.2 or property included in Class 43 that is described in paragraph (b) of that Class) that would otherwise be included in another Class in this Schedule, that is a building or other structure (other than property described in paragraph (l) or (m) that would otherwise be included in Class 1, 3 or 6 and that was acquired for the purpose of gaining or producing income from a mine, except a property included in Class 28, a property acquired principally for the purpose of gaining or producing income from the processing of ore from a mineral resource that is not owned by the taxpayer, an office building not situated on the mine property, or a refinery that was acquired by the taxpayer before November 8, 1969, or after November 7, 1969 and that had been used before November 8, 1969 by any person with whom the taxpayer was not dealing at arm’s length; [Repealed, SOR/80-99, s. 1] contractor’s movable equipment, including portable camp buildings, acquired for use in a construction business or for lease to another taxpayer for use in that other taxpayer’s construction business, except a property included in this Class by virtue of paragraph (t), a separate class prescribed by subsection 1101(2b), or Class 22 or 38; a floor of a roller skating rink; gas or oil well equipment; property (other than property included in class 28 or property described in paragraph (l) or (m)) that was acquired for the purpose of gaining or producing income from a mine and that is a structure that would otherwise be included in Class 8, or machinery or equipment, except a property acquired before May 9, 1972 for the purpose of gaining or producing income from the processing of ore after extraction from a mineral resource that is not owned by the taxpayer; property acquired after the 1971 taxation year for the purpose of gaining or producing income from a mine and providing services to the mine or to a community where a substantial proportion of the persons who ordinarily work at the mine reside, if such property is an airport, dam, dock, fire hall, hospital, house, natural gas pipeline, power line, recreational facility, school, sewage disposal plant, sewer, street lighting system, town hall, water pipeline, water pumping station, water system, wharf or similar property, a road, sidewalk, airplane runway, parking area, storage area or similar surface construction, or machinery or equipment ancillary to any of the property described in subparagraph (i) or (ii), a property included in Class 28, or a railway not situated on the mine property; property acquired after March 31, 1977, principally for the purpose of gaining or producing income from a mine, if such property is railway track and grading including components such as rails, ballast, ties and other track material, property ancillary to the track referred to in subparagraph (i) that is railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, or a bridge, culvert, subway, trestle or tunnel, machinery or equipment ancillary to any of the property referred to in subparagraph (i) or (ii), or conveying, loading, unloading or storing machinery or equipment, including a structure, acquired for the purpose of shipping output from the mine by means of the track referred to in subparagraph (i), property included in Class 28, or for greater certainty, rolling stock; property that was acquired for the purpose of cutting and removing merchantable timber from a timber limit and that will be of no further use to the taxpayer after all merchantable timber that the taxpayer is entitled to cut and remove from the limit has been cut and removed, unless the taxpayer has elected to include another property of this kind in another class in this Schedule; mechanical equipment acquired for logging operations, except a property included in Class 7; an access road or trail for the protection of standing timber against fire, insects or disease; property acquired for a motion picture drive-in theatre; property included in this class by virtue of subsection 1102(8) or (9), except a property included in Class 28; a motion picture film or video tape acquired after May 25, 1976, except a property included in paragraph (w) or (x) or in Class 12; a property acquired after May 22, 1979 that is designed principally for the purpose of determining the existence, location, extent or quality of accumulations of petroleum or natural gas, drilling oil or gas wells, or determining the existence, location, extent or quality of mineral resources, except a property included in a separate class prescribed by subsection 1101(2b); property acquired after 1980 to be used primarily in the processing in Canada of heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent that is property that would otherwise be included in Class 8 except railway rolling stock or a property described in paragraph (j) of Class 8, an oil or water storage tank, a powered industrial lift truck that would otherwise be included in paragraph (a), or property that would otherwise be included in paragraph (f); property acquired after August 31, 1984 (other than property that is included in Class 30) that is equipment used for the purpose of effecting an interface between a cable distribution system and electronic products used by consumers of that system and that is designed primarily to augment the channel capacity of a television receiver or radio, to decode pay television or other signals provided on a discretionary basis, or to achieve any combination of functions described in subparagraphs (i) and (ii); a certified production acquired after 1987 and before March 1996; a Canadian film or video production; or a railway locomotive that is not an automotive railway car and that was not used or acquired for use for any purpose by any taxpayer before February 26, 2008. Property that would otherwise be included in Class 10 that is a passenger vehicle, the cost of which to the taxpayer exceeds $20,000 or such other amount as may be prescribed for the purposes of subsection 13(2) of the Act. Property not included in any other class that is used to earn rental income and that is an electrical advertising sign owned by the manufacturer thereof, acquired before May 26, 1976; or an outdoor advertising poster panel or bulletin board acquired by the taxpayer pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, or that was under construction by or on behalf of the taxpayer on June 18, 1987. a book that is part of a lending library; chinaware, cutlery or other tableware; a kitchen utensil costing less than $100, if acquired before May 26, 1976, $200, if acquired after May 25, 1976, and before May 2, 2006, or $500, if acquired after May 1, 2006; a die, jig, pattern, mould or last; a medical or dental instrument costing less than a mine shaft, main haulage way or similar underground work designed for continuing use, or any extension thereof, sunk or constructed after the mine came into production, to the extent that the property was acquired before 1988; linen;

a tool (other than an electronic communication device or electronic data processing equipment that is acquired after May 1, 2006 and that can be used for a purpose other than any of measuring, locating and calculating) costing less than a uniform; the cutting or shaping part in a machine; apparel or costume, including accessories used therewith, used for the purpose of earning rental income; a video tape acquired before May 26, 1976; a motion picture film or video tape that is a television commercial message; a certified feature film or certified production; computer software acquired after May 25, 1976, but not including systems software and property that is described in paragraph (s); a metric scale or a scale designed for ready conversion to metric weighing, acquired after March 31, 1977 and before 1984 for use in a retail business and having a maximum weighing capacity of 100 kilograms; a designated overburden removal cost; or a video-cassette, a video-laser disk or a digital video disk, that is acquired for the purpose of renting and that is not expected to be rented to any one person for more than 7 days in any 30- day period; and property that would otherwise be included in another class in this Schedule that is acquired by the taxpayer after August 8, 1989 and before 1993, for use in a business of selling goods or providing services to consumers that is carried on in Canada, or for lease to another taxpayer for use by that other taxpayer in such a business, and that is electronic bar code scanning equipment designed to read bar codes applied to goods held for sale in the ordinary course of the business, a cash register or similar sales recording device designed with the capability of calculating and recording sales tax imposed by more than one jurisdiction in respect of the same sale, equipment or computer software that is designed to convert a cash register or similar sales recording device to one having the capability of calculating and recording sales tax imposed by more than one jurisdiction in respect of the same sale, or electronic equipment or computer software that is ancillary to property described in subparagraph (i), (ii) or (iii) and all or substantially all the use of which is in conjunction with that property. Property that is a leasehold interest and property acquired by a taxpayer that would, if that property had been acquired by a person with whom the taxpayer was not dealing at arm’s length at the time the property was acquired by the taxpayer, be a leasehold interest of that person, except an interest in minerals, petroleum, natural gas, other related hydrocarbons or timber and property relating thereto or in respect of a right to explore for, drill for, take or remove minerals, petroleum, natural gas, other related hydrocarbons or timber; that part of the leasehold interest that is included in another class in this Schedule by reason of subsection 1102(5) or (5.1); or a property included in Class 23. Property that is a patent, franchise, concession or licence for a limited period in respect of property, except a franchise, concession or licence in respect of minerals, petroleum, natural gas, other related hydrocarbons or timber and property relating thereto (except a franchise for distributing gas to consumers or a licence to export gas from Canada or from a province) or in respect of a right to explore for, drill for, take or remove minerals, petroleum, natural gas, other related hydrocarbons or timber; a leasehold interest; a property included in Class 23; a licence to use computer software; or a property that is included in Class 44. Property of a taxpayer that, in respect of a business of the taxpayer, is goodwill; was eligible capital property of the taxpayer immediately before January 1, 2017 and is owned by the taxpayer at the beginning of that day; or is acquired after 2016, other than property that is tangible or, for civil law, corporeal property, property that is not acquired for the purpose of gaining or producing income from business, property in respect of which any amount is deductible (otherwise than as a result of being included in this class) in computing the taxpayer’s income from the business, property in respect of which any amount is not deductible in computing the taxpayer’s income from the business because of any provision of the Act (other than paragraph 18(1)(b)) or these Regulations, an interest in a trust, an interest in a partnership, a share, bond, debenture, mortgage, hypothecary claim, note, bill or other similar property, or property that is an interest in, or for civil law a right in, or a right to acquire, a property described in any of subparagraphs (i) to (vii). Property that would otherwise be included in another class in this Schedule and that was acquired for the purpose of cutting and removing merchantable timber from a timber limit, and will be of no further use to the taxpayer after all merchantable timber that the taxpayer is entitled to cut and remove from the limit has been cut and removed, property that the taxpayer has, in the taxation year or a preceding taxation year, elected not to include in this class, or a timber resource property. Property acquired before May 26, 1976 that is an aircraft, furniture, fittings or equipment attached to an aircraft, or a spare part for a property included in this class, property acquired after May 25, 1976 that is a taxicab, property acquired after November 12, 1981 that is a motor vehicle that would be an automobile as that term is defined in subsection 248(1) of the Act, if that definition were read without reference to paragraph (d) thereof, was acquired for the purpose of renting or leasing, and is not expected to be rented or leased to any person for more than 30 days in any 12 month period, property acquired after February 15, 1984 that is a coin-operated video game or pinball machine, and property acquired after December 6, 1991 that is a truck or tractor designed for hauling freight, and that is primarily so used by the taxpayer or a person with whom the taxpayer does not deal at arm’s length in a business that includes hauling freight, and that has a “gross vehicle weight rating” (as that term is defined in subsection 2(1) of the Motor Vehicle Safety Regulations) in excess of 11,788 kg. Property that would otherwise be included in another class in this Schedule (other than property included in Class 57 or 58) that is a telephone system, telegraph system, or a part thereof, acquired before May 26, 1976, except radiocommunication equipment, or a property included in Class 10, 13, 14 or 28, or property (other than a building or other structure) acquired after February 27, 2000 that has not been used for any purpose before February 28, 2000 and is electrical generating equipment (other than electrical generating equipment described in Class 43.1, 43.2 or 48 or in Class 8 because of paragraph (f), (g) or (h) of that Class), or production and distribution equipment of a distributor of water or steam (other than such property described in Class 43.1 or 43.2) used for heating or cooling (including, for this purpose, pipe used to collect or distribute an energy transfer medium but not including equipment or pipe used to distribute water that is for consumption, disposal or treatment), and property not included in any other class, acquired after May 25, 1976, that is telephone, telegraph or data communication switching equipment, except equipment installed on customers’ premises, or property that is principally electronic equipment or systems software therefor; or a road (other than a specified temporary access road of the taxpayer), sidewalk, airplane runway, parking area, storage area or similar surface construction. Property that is a motion picture film acquired before May 26, 1976, except a television commercial message; or a certified feature film. Property acquired by the taxpayer after June 13, 1963 and before January 1, 1967 that would otherwise be included in Class 8 if, in the taxation year in which the property was acquired, the taxpayer was an individual who was resident in Canada for not less than 183 days, or the taxpayer was a corporation that had a degree of Canadian ownership; the property was acquired for use in Canada in a business carried on by the taxpayer that, for the fiscal period in which the business first commenced selling goods in reasonable commercial quantities, whichever was later, was a business in which the aggregate of its net sales, as they would be determined under paragraphs 71A(2)(d) and (f) of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), from the sale of goods processed or manufactured in Canada by the business, an amount equal to that part of its gross revenue that is rent from goods processed or manufactured in Canada in the course of the business, and its gross revenue from advertisements in a newspaper or magazine produced by the business, was not less than 2/3 of the amount by which the gross revenue from the business for the period exceeded the aggregate of each amount paid or credited in the period to a customer of the business as a bonus, rebate or discount or for returned or damaged goods, and was not a business that was principally operating a gas or oil well, logging, mining, construction, or a combination of two or more of the activities referred to in subparagraphs (vi) to (ix); and the property had not been used for any purpose whatever before it was acquired by the taxpayer. Property that would otherwise be included in Class 3 or 6 that was acquired after December 5, 1963 and before April 1, 1967 that is a building, an extension to a building, outside the previously existing walls or roof of the building, if the aggregate cost of the extensions added in the aforementioned period exceeded the lesser of $100,000, and 25 per cent of the capital cost to the taxpayer of the building on December 5, 1963, or an addition or alteration to a property described in subparagraph (i) or (ii), and that has been certified by the Minister of Industry, upon application by the taxpayer in such form as may be prescribed by the Minister of Industry, to be situated in an area that was a designated area, as determined for the purposes of section 71A of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), at the time the property was acquired, in a case where the property was built by the taxpayer, at the time construction was commenced, or in a case where the property was built for the taxpayer pursuant to a contract entered into by the taxpayer, at the time the contract was entered into, and to have not been used for any purpose whatever before it was acquired by the taxpayer; or the capital cost of which was included in the approved capital costs as defined in the Area Development Incentives Act upon which approved capital cost the Minister of Industry has based the amount of a development grant authorized under that Act. Property that would otherwise be included in Class 8 or 19 that was acquired after December 5, 1963 and before April 1, 1967 and that was acquired for use in a business carried on by the taxpayer that has been certified by the Minister of Industry, for the purposes of section 71A of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), to be a new manufacturing or processing business in a designated area for the fiscal period in which the property was acquired or for a subsequent fiscal period, and had not been used for any purpose whatever before it was acquired by the taxpayer; or Property acquired by the taxpayer after March 16, 1964 and that was under construction by or on behalf of the taxpayer on June 18, 1987 that is power-operated movable equipment designed for the purpose of excavating, moving, placing or compacting earth, rock, concrete or asphalt, except a property included in Class 7. a leasehold interest or a concession in respect of land granted under or pursuant to an agreement in writing with the Canadian Corporation for the 1967 World Exhibition where such leasehold interest or concession is to expire not later than June 15, 1968; a building or other structure, including component parts, erected on land that is the subject matter of a leasehold interest or concession described in paragraph (a) where such building or other structure, including component parts, is of a temporary nature and is required by the agreement to be removed not later than June 15, 1968; a leasehold interest or licence in respect of land granted under or pursuant to an agreement in writing with the Expo 86 Corporation where such leasehold interest or licence is to expire not later than January 31, 1987; or a building or other structure, including component parts, erected on land that is the subject matter of a leasehold interest or licence described in paragraph (c) where such building or other structure, including component parts, is of a temporary nature and is required by the agreement to be removed not later than January 31, 1987. Property acquired after April 26, 1965 and before 1971 that would otherwise be included in Class 2, 3, 6 or 8 and that was acquired primarily for the purpose of preventing, reducing or eliminating pollution of any of the inland, coastal or boundary waters of Canada, or any lake, river, stream, watercourse, pond, swamp or well in Canada, by industrial waste, refuse or sewage created by operations in the course of carrying on a business by the taxpayer or that would be created by such operations if the property had not been acquired and used, and had not been used for any purpose whatever before it was acquired by the taxpayer, but not including property acquired for use in the production of by-products or the recovery of materials unless the by-products are produced from, or the materials are recovered from, materials that after April 26, 1965, were being discarded as waste by the taxpayer, or were commonly being discarded as waste by other taxpayers who carried on operations of a type similar to the operations carried on by the taxpayer, and property acquired before 1999 that would otherwise be included in another class in this Schedule that has not been included by the taxpayer in any other class, that had not been used for any purpose whatever before it was acquired by the taxpayer, that was acquired by the taxpayer after 1970 primarily for the purpose of preventing, reducing or eliminating pollution of that is caused, or that, if the property had not been acquired and used, would be caused by operations carried on by the taxpayer at a site in Canada at which operations have been carried on by him from a time that is before 1974, the operation in Canada of a building or plant by the taxpayer, the construction of which was either commenced before 1974 or commenced under an agreement in writing entered into by him before 1974, or the operation of transportation or other movable equipment that has been operated by the taxpayer in Canada (including any of the inland, coastal or boundary waters of Canada) from a time that is before 1974, or that was acquired by him after May 8, 1972, that would otherwise have been property referred to in this subparagraph except that it was acquired for the purpose of gaining or producing income from a business by a taxpayer whose business includes the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph that is caused or that otherwise would be caused primarily by operations referred to in clause (C), (D) or (E) carried on by other taxpayers (not including persons referred to in section 149 of the Act), and to be used in a business referred to in subclause (I) in the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph, or for the purpose of gaining or producing income from a property by a corporation whose principal business is the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, the lending of money, or the leasing of property, or any combination thereof, and to be leased to a taxpayer (other than a person referred to in section 149 of the Act) to be used by him, in an operation referred to in clause (C), (D), (E) or (F), in the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph, and that has, upon application by the taxpayer to the Minister of the Environment, been accepted by that Minister as property the primary use of which is to be the preventing, reducing or eliminating of pollution of a kind referred to in subparagraph (iii), and for the purposes of paragraphs (a) and (b) where a corporation (in this paragraph referred to as the “predecessor corporation”) has, as a result of an amalgamation within the meaning assigned by subsection 87(1) of the Act, merged at any time after 1973 with one or more other corporations to form one corporate entity (in this paragraph referred to as the “new corporation”), the new corporation shall be deemed to be the same corporation as, and a continuation of, the predecessor corporation; where a corporation (in this paragraph referred to as the “subsidiary”) has been wound up at any time after 1973 in circumstances to which subsection 88(1) of the Act applies, the parent (within the meaning assigned by that subsection) shall be deemed to be the same corporation as, and a continuation of, the subsidiary; and this class shall be read without reference to subparagraph (b)(i) where paragraph (c) or (d) applies to the taxpayer and the property was acquired before 1992. Property that would otherwise be included in another class in this Schedule that is property acquired by the taxpayer before October 23, 1968, or after October 22, 1968 and before 1974, where the acquisition of the property may reasonably be regarded as having been in fulfilment of an obligation undertaken in an agreement made in writing before October 23, 1968 and ratified, confirmed or adopted by the legislature of a province by a statute that came into force before that date, if the taxpayer was, on October 22, 1968, a corporation, commission or association to which, on the assumption that October 22, 1968 was in its 1969 taxation year, paragraph 62(1)(c) of the former Act (within the meaning assigned by paragraph 8 (b) of the Income Tax Application Rules), would not apply; and would have applied but for subparagraph (i) or (ii) of that paragraph. a catalyst; or deuterium enriched water (commonly known as “heavy water”) acquired after May 22, 1979. Property acquired before 1999 that would otherwise be included in another Class in this Schedule that has not been included by the taxpayer in any other class; that had not been used for any purpose whatever before it was acquired by the taxpayer; that was acquired by the taxpayer after March 12, 1970 primarily for the purpose of preventing, reducing or eliminating air pollution by removing particulate, toxic or injurious materials from smoke or gas, or preventing the discharge of part or all of the smoke, gas or other air pollutant, that is discharged or that, if the property had not been acquired and used, would be discharged into the atmosphere as a result of or that was acquired by him after May 8, 1972, that would otherwise have been property referred to in this paragraph except that for the purpose of gaining or producing income from a business by a taxpayer whose business includes the preventing, reducing or eliminating of air pollution that is caused or that otherwise would be caused primarily by operations referred to in subparagraph (iii), (iv) or (v) carried on by other taxpayers (not including persons referred to in section 149 of the Act), and to be used in a business referred to in clause (A) in the preventing, reducing or eliminating of air pollution in a manner referred to in this paragraph, or to be leased to a taxpayer (other than a person referred to in section 149 of the Act) to be used by him, in an operation referred to in subparagraph (iii), (iv), (v) or (vi), in the preventing, reducing or eliminating of air pollution in a manner referred to in this paragraph; and that has, upon application by the taxpayer to the Minister of the Environment, been accepted by that Minister as property the primary use of which is to be the preventing, reducing or eliminating of air pollution in a manner referred to in paragraph (c), and for the purposes of paragraphs (a) to (d), this class shall be read without reference to paragraph (a) where paragraph (e) or (f) applies to the taxpayer and the property was acquired before 1992. Property situated in Canada that would otherwise be included in another class in this Schedule that was acquired by the taxpayer that is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987, and that was acquired by the taxpayer principally for the purpose of gaining or producing income from one or more mines operated by the taxpayer and situated in Canada and each of which came into production in reasonable commercial quantities after November 7, 1969, or was the subject of a major expansion after November 7, 1969 whereby the greatest designed capacity, measured in weight of input of ore, of the mill that processed the ore from the mine was not less than 25% greater in the year following the expansion than it was in the year preceding the expansion, or where in the one year period preceding the expansion the Minister, in consultation with the Minister of Natural Resources, determines that the greatest designed capacity of the mine, measured in weight of output of ore, immediately after the expansion was not less than 25% greater than the greatest designed capacity of the mine immediately before the expansion, and no mill processed the ore from the mine at any time, or the mill that processed the ore from the mine processed other ore, after November 7, 1969, before the coming into production of the mine or the completion of the expansion of the mine referred to in subparagraph (b)(i) or (ii), as the case may be, and in the case of a mine that was the subject of a major expansion described in subparagraph (b)(ii), in the course of and principally for the purposes of the expansion, had not, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length, and is any of the following, namely, property that was acquired before the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (g), (k), (l) or (r) of that class or would have been so included in that class if it had been acquired after the 1971 taxation year, property that was acquired before the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (m) of that class, or property that was acquired after the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (g), (k), (l) or (r) of that class, or that would be described in paragraphs (b) to (e) if in those paragraphs each reference to a “mine” were read as a reference to a “mine that is a location in a bituminous sands deposit, oil sands deposit or oil shale deposit from which material is extracted”, and each reference to “after November 7, 1969” were read as “before November 8, 1969”. Property (other than property included in Class 41 solely because of paragraph (c) or (d) of that Class or property included in Class 47 because of paragraph (b) of that Class) that would otherwise be included in another class in this Schedule that is property manufactured by the taxpayer, the manufacture of which was completed by him after May 8, 1972, or other property acquired by the taxpayer after May 8, 1972, to be used directly or indirectly by him in Canada primarily in the manufacturing or processing of goods for sale or lease, or to be leased, in the ordinary course of carrying on a business in Canada of the taxpayer, to a lessee who can reasonably be expected to use, directly or indirectly, the property in Canada primarily in Canadian field processing carried on by the lessee or in the manufacturing or processing by the lessee of goods for sale or lease, if the taxpayer is a corporation whose principal business is leasing property, manufacturing property that it sells or leases, the lending of money, the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, or selling or servicing a type of property that it also leases, or any combination thereof, unless use of the property by the lessee commenced before May 9, 1972; property that, but for this class, would be included in Class 8, except railway rolling stock or a property described in paragraph (j) of Class 8, a powered industrial lift truck, electrical generating equipment described in Class 9, property that is described in paragraph (b) or (f) of Class 10, or property that would be described in paragraph (f) of Class 10 if the portion of that paragraph before subparagraph (i) read as follows: general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, acquired after March 18, 2007 and before January 28, 2009, but not including property that is principally or is used principally as”; and that is property acquired by the taxpayer before 1988, after March 18, 2007 and before 2016 if the property is machinery, or equipment, that would be described in paragraph (a) if subparagraph (a)(ii) were read without reference to “in Canadian field processing carried on by the lessee or,”, and that is described in any of subparagraphs (b)(i) to (iii) and (vi). Property of a taxpayer that is an unmanned telecommunication spacecraft that was designed to orbit above the earth and that was acquired by the taxpayer that was under construction by or on behalf of the taxpayer on June 18, 1987; or equipment used for the purpose of effecting an interface between a cable or satellite distribution system (other than a satellite radio distribution system) and electronic products used by consumers of that system if the equipment is designed primarily to augment the channel capacity of a television receiver, or to decode pay television or other signals provided on a discretionary basis, is acquired by the taxpayer after March 4, 2010, and has not been used or acquired for use for any purpose by any taxpayer before March 5, 2010. Property that is a multiple-unit residential building in Canada that would otherwise be included in Class 3 or Class 6 and in respect of which a certificate has been issued by Canada Mortgage and Housing Corporation certifying in respect of a building that would otherwise be included in Class 3, that the installation of footings or any other base support of the building was commenced after November 18, 1974 and before 1980, or after October 28, 1980 and before 1982, as the case may be, and in respect of a building that would otherwise be included in Class 6, that the installation of footings or any other base support of the building was commenced after December 31, 1977 and before 1979, and that, according to plans and specifications for the building, not less than 80 per cent of the floor space will be used in providing self-contained domestic establishments and related parking, recreation, service and storage areas, not more than 20 per cent of the floor space is used for any purpose other than the purposes referred to in paragraph (a), the certificate referred to in paragraph (a) was issued on or before the later of December 31, 1981, and the day that is 18 months after the day on which the installation of footings or other base support of the building was commenced, and the construction of the building proceeds, after 1982, without undue delay, taking into consideration acts of God, labour disputes, fire, accidents or unusual delay by common carriers or suppliers of materials or equipment, and that was acquired by the taxpayer before June 18, 1987, or after June 17, 1987 pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, or the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice required to be filed with a public authority in Canada and filed before June 18, 1987 with that public authority. Property that is a multiple-unit residential building in Canada that would otherwise be included in Class 6 if the reference to “1979” in subparagraph (a)(viii) of that Class were read as a reference to “1980”, and in respect of which a certificate has been issued by Central Mortgage and Housing Corporation certifying that the installation of footings or any other base support of the building was commenced after November 18, 1974 and before 1978, and that, according to plans and specifications for the building, not less than 80 per cent of the floor space will be used in providing self-contained domestic establishments and related parking, recreation, service and storage areas; and not more than 20 per cent of the floor space is used for any purpose other than the purposes referred to in subparagraph (a)(ii). Property that is a timber resource property. Property that would otherwise be included in Class 1, 2 or 8 electrical generating equipment, production equipment and pipelines of a distributor of heat, steam generating equipment that was acquired by the taxpayer primarily for the purpose of producing steam to operate property described in subparagraph (i), or an addition to a property described in subparagraph (i), (ii) or (iii), but not including buildings or other structures, that was acquired by the taxpayer after May 25, 1976, was acquired by the taxpayer for use by him in a business carried on in Canada, or is to be leased by the taxpayer to a lessee for use by the lessee in Canada, and that is property in respect of which a certificate has been issued before December 11, 1979 by the Minister of Industry, Trade and Commerce certifying that the property is part of a plan designed to produce heat derived primarily from the consumption of wood wastes or municipal wastes, produce electrical energy by the utilization of fuel that is petroleum, natural gas or related hydrocarbons, coal, coal gas, coke, lignite or peat (in this clause referred to as “fossil fuel”), wood wastes or municipal wastes, or any combination thereof, if the consumption of fossil fuel (expressed as the high heat value of the fossil fuel), if any, chargeable to electrical energy on an annual basis in respect of the property is no greater than 7,000 British Thermal Units per kilowatt-hour of electrical energy produced, or recover heat that is a by-product of an industrial process, or after December 10, 1979, by the Minister of Energy, Mines and Resources certifying that the property is part of a plan designed to produce heat derived primarily from the consumption of natural gas, coal, coal gas, lignite, peat, wood wastes or municipal wastes, or any combination thereof, recover heat that is a by-product of an industrial process, and property that was acquired by the taxpayer after December 10, 1979 (other than property described in paragraph (a)) and would otherwise be included in another Class in this Schedule active solar heating equipment including solar collectors, solar energy conversion equipment, storage equipment, control equipment, equipment designed to interface solar heating equipment with other heating equipment, and solar water heaters, used to heat a liquid or air to be used directly in the course of manufacturing or processing, provide space heating when installed in a new building or other new structure at the time of its original construction where that construction commenced after December 10, 1979, or heat water for a use other than a use described in clause (A) or (B), a hydro electric installation of a producer of hydro electric energy with a planned maximum generating capacity not exceeding 15 megawatts upon completion of site development that is the generating equipment and plant (including structures) of that producer including a canal, a dam, a dyke, an overflow spillway, a penstock, a powerhouse complete with generating equipment and other equipment ancillary thereto, control equipment, fishways or fish bypasses and transmission equipment, except distribution equipment and a property included in Class 10 or 17, heat recovery equipment that is designed to conserve energy or reduce the requirement to acquire energy by extracting and reusing heat from thermal waste including condensers, heat exchange equipment, steam compressors used to upgrade low pressure steam, waste heat boilers and ancilliary equipment such as control panels, fans, instruments or pumps, an addition or alteration to a hydro electric installation described in subparagraph (ii) that results in a change in generating capacity if the new maximum generating capacity at the hydro electric installation does not exceed 15 megawatts, or a fixed location device acquired after February 25, 1986, that is a wind energy conversion system designed to produce electrical energy, consisting of a wind-driven turbine, generating equipment and related equipment, including control and conditioning equipment, support structures, a powerhouse complete with equipment ancillary thereto, and transmission equipment, but not including distribution equipment, equipment designed to store electrical energy or property included in Class 10 or 17, was acquired by the taxpayer for use by him for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, or that is property in respect of which a certificate has been issued by the Minister of Energy, Mines and Resources, but not including property in respect of which a certificate issued under paragraph (d) or (g) has been revoked pursuant to subsection 1104(11); property that had been used before it was acquired by the taxpayer unless the property had previously been included in Class 34 for the purpose of computing the income of the person from whom it was acquired; property acquired by the taxpayer after February 21, 1994 other than property acquired by the taxpayer pursuant to an agreement of purchase and sale in writing entered into by the taxpayer before February 22, 1994, in order to satisfy a legally binding obligation entered into by the taxpayer in writing before February 22, 1994 to sell electricity to a public power utility in Canada, that was under construction by or on behalf of the taxpayer on February 22, 1994, or that is machinery or equipment that is a fixed and integral part of a building, structure or other property that was under construction by or on behalf of the taxpayer on February 22, 1994, and property acquired by the taxpayer before 1996 pursuant to an agreement of purchase and sale in writing entered into before 1995 to acquire the property from a person or partnership in circumstances where the property was part of a project that was under construction by the person or partnership on February 22, 1994, and it is reasonable to conclude, having regard to all of the circumstances, that the person or partnership constructed the project with the intention of transferring all or part of the project to another taxpayer after completion, or pursuant to an agreement in writing entered into before 1995 by the taxpayer with a person or partnership where the taxpayer agrees to assume a legally binding obligation entered into by the person or partnership before February 22, 1994 to sell electricity to a public power utility in Canada, or property in respect of which a certificate has not been issued under paragraph (d) or (g) before the time that is the later of the end of 1995, and 2 years after the property is acquired by the taxpayer or, where the property is property acquired in circumstances to which paragraph (j) applies, 2 years after substantial completion of the property. a railway car acquired after May 25, 1976; or a rail suspension device designed to carry trailers that are designed to be hauled on both highways and railway tracks. Property acquired after December 11, 1979 that is deemed to be depreciable property by virtue of paragraph 13(5.2)(c) of the Act. Property that would otherwise be included in another class in this schedule that is property used in connection with an amusement park, including land improvements (other than landscaping) for or in support of park activities, including roads, sidewalks, parking areas, storage areas, or similar surface constructions, and canals, buildings (other than warehouses, administration buildings, hotels or motels), structures and equipment (other than automotive equipment), including rides, attractions and appurtenances associated with a ride or attraction, ticket booths and facades, equipment, furniture and fixtures, in or attached to a building included in this class, bridges, and fences or similar perimeter structures, and automotive equipment (other than automotive equipment designed for use on highways or streets), and property not included in another class in this schedule that is a waterway or a land improvement (other than landscaping, clearing or levelling land) used in connection with an amusement park. Property not included in Class 22 but that would otherwise be included in that class if that class were read without reference to paragraphs (a) and (b) thereof. Property acquired after 1987 and before February 26, 1992 that is not included in Class 29, but that would otherwise be included in that Class if that Class were read without reference to subparagraphs (b)(iii) and (v) and paragraph (c) thereof. Property acquired after 1987 and before 1990 that is a powered industrial lift truck or property described in paragraph (b) or (f) of Class 10 and that is property not included in Class 29 but that would otherwise be included in that class if that class were read without reference to paragraph (c) thereof. Property (other than property included in Class 41.1, 41.2, 57 or 58) not included in Class 28 that would otherwise be included in that Class if that Class were read without reference to paragraph (a) of that Class, and if subparagraphs (e)(i) to (iii) of that Class were read as follows: property that was acquired before the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (g), (k), (l) or (r) of that Class or would have been so included in that Class if it had been acquired after the 1971 taxation year, and property that would, but for this Class, be included in Class 41 because of subsection 1102(8) or (9), property that was acquired before the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (m) of that Class, or property that was acquired after the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (g), (k), (l) or (r) of that Class, and property that would, but for this Class, be included in Class 41 because of subsection 1102(8) or (9);” that is the portion, expressed as a percentage determined by reference to capital cost, of property that would, but for this Class, be included in Class 10 because of paragraph (g), (k) or (l) of that Class, or that is included in this Class because of subsection 1102(8) or (9), is not described in paragraph (a) or (a.2), was acquired by the taxpayer principally for the purpose of gaining or producing income from one or more mines that are operated by the taxpayer and situated in Canada, and that became available for use for the purpose of subsection 13(26) of the Act in a taxation year, and had not, before it was acquired by the taxpayer, been used for any purpose by any person or partnership with whom the taxpayer was not dealing at arm’s length, where that percentage is determined by the formula is the total of all amounts each of which is the capital cost of a property of the taxpayer that became available for use for the purpose of subsection 13(26) of the Act in the year and that is described in subparagraphs (i) to (iv) in respect of the mine or mines, as the case may be, is 5% of the taxpayer’s gross revenue from the mine or mines, as the case may be, for the year, and is the number of days in the year; is property that would, but for this Class, be included in Class 10 because of paragraph (g), (k) or (l) of that Class or that is included in this Class because of subsection 1102(8) or (9), was acquired by the taxpayer in a taxation year principally for the purpose of gaining or producing income from one or more mines each of which is one or more wells operated by the taxpayer for the extraction of material from a deposit of bituminous sands or oil shales, operated by the taxpayer and situated in Canada, was the subject of a major expansion after March 6, 1996, and is a mine in respect of which the Minister, in consultation with the Minister of Natural Resources, determines that the greatest designed capacity of the mine, measured in volume of oil that is not beyond the crude oil stage or its equivalent, immediately after the expansion was not less than 25% greater than the greatest designed capacity of the mine immediately before the expansion, after March 6, 1996, before the completion of the expansion, and in the course of and principally for the purposes of the expansion, and had not, before it was acquired by the taxpayer, been used for any purpose by any person or partnership with whom the taxpayer was not dealing at arm’s length; that is property included in this Class because of subsection 1102(8) or (9), other than property described in paragraph (a) or (a.2) or the portion of property described in paragraph (a.1); that is property, other than property described in subsection 1101(2c), described in paragraph (f.1), (g), (j), (k), (l), (m), (r), (t) or (u) of Class 10 that would be included in that Class if this Schedule were read without reference to this paragraph, or that is a vessel, including the furniture, fittings, radio communication equipment and other equipment attached thereto, that is designed principally for the purpose of determining the existence, location, extent or quality of accumulations of petroleum, natural gas or mineral resources, or drilling oil or gas wells, and that was acquired by the taxpayer after 1987 other than property that was acquired before 1990 that is machinery and equipment that is a fixed and integral part of property that was under construction by or on behalf of the taxpayer on June 18, 1987; acquired by the taxpayer after May 8, 1972, to be used directly or indirectly by the taxpayer in Canada primarily in Canadian field processing, where the property would be included in Class 29 if Class 29 were read without reference to the words “property included in Class 41 solely because of paragraph (c) or (d) of that Class or”, its subparagraphs (b)(iii) and (v), and its paragraph (c), subsection 1104(9) were read without reference to paragraph (k) of that subsection, and this Schedule were read without reference to this Class, Class 39 and Class 43; or acquired by the taxpayer after December 5, 1996 (otherwise than pursuant to an agreement in writing made before December 6, 1996) to be leased, in the ordinary course of carrying on a business in Canada of the taxpayer, to a lessee who can reasonably be expected to use, directly or indirectly, the property in Canada primarily in Canadian field processing carried on by the lessee, where the property would be included in Class 29 if its paragraph (c), and this Schedule were read without reference to this Class, Class 39 and Class 43. Oil sands property (other than specified oil sands property or property included in Class 57 or 58) that is acquired by a taxpayer after March 18, 2007 and before 2016 and that if acquired before March 19, 2007, would be included in paragraphs (a), (a.1) or (a.2) of Class 41, or is acquired by a taxpayer after 2015 and that if acquired before March 19, 2007 would be included in Class 41. Property, other than specified oil sands property, eligible mine development property or property included in Class 57 or 58, that is acquired by a taxpayer after March 20, 2013 and before 2021 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41; or that is acquired by a taxpayer after 2020 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41. fibre-optic cable; or telephone, telegraph or data communication equipment that is a wire or cable (other than a cable included in this class because of paragraph (a)), acquired after February 22, 2005, and that has not been used, or acquired for use, for any purpose before February 23, 2005. Property acquired after February 25, 1992 (other than property included in Class 57 or 58) that is not included in Class 29 or 53, but that would otherwise be included in Class 29 if that Class were read without reference to its subparagraphs (b)(iii) and (v) and paragraph (c); or is property that is described in paragraph (k) of Class 10 and that would be included in that Class if this Schedule were read without reference to this paragraph and paragraph (b) of Class 41, and that, at the time of its acquisition, can reasonably be expected to be used entirely in Canada and primarily for the purpose of processing ore extracted from a mineral resource located in a country other than Canada.

Property, other than reconditioned or remanufactured equipment, that would otherwise be included in Class 1, 2, 8 or 48 or in Class 17 because of paragraph (a.1) of that Class electrical generating equipment, including any heat generating equipment used primarily for the purpose of producing heat energy to operate the electrical generating equipment, equipment that generates both electrical and heat energy other than, for greater certainty, fuel cell equipment, fixed location fuel cell equipment that uses hydrogen generated only from internal, or ancillary, fuel reformation equipment, heat recovery equipment used prima- rily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated by equipment referred to in subparagraph (i) or (ii), district energy equipment that is part of a district energy system that uses thermal energy that is primarily supplied by electrical cogeneration equipment that would be property described in paragraphs (a) to (c) if read without reference to this subparagraph, control, feedwater and condensate systems and other equipment, if that property is ancillary to equipment described in any of subparagraphs (i) to (iii), or an addition to a property described in any of subparagraphs (i) to (iv), other than buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), transmission equipment, distribution equipment, fuel handling equipment that is not used to upgrade the combustible portion of the fuel, pollution abatement equipment and fuel storage facilities, is situated in Canada, acquired by the taxpayer for use by the taxpayer for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, or leased by the taxpayer to a lessee for the use by the lessee for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, and has not been used for any purpose before it was acquired by the taxpayer unless the property was depreciable property that was included in Class 34, 43.1 or 43.2 of the person from whom it was acquired, or would have been included in Class 34, 43.1 or 43.2 of the person from whom it was acquired had the person made a valid election to include the property in Class 43.1 or 43.2, as the case may be, under paragraph 1102(8)(d) or 1102(9)(d), and the property was acquired by the taxpayer not more than five years after the time it is considered to have become available for use, for the purpose of subsection 13(26) of the Act, by the person from whom it was acquired and remains at the same site in Canada as that at which that person used the property, and part of a system that is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy, or both electrical and heat energy, using only fuel that is eligible waste fuel, fossil fuel, producer gas, spent pulping liquor or any combination of those fuels, if the system is rated to generate more than three megawatts of electrical energy, meets the following condition on an annual basis: is 11,000 BTU per kilowatt-hour, is the energy content of fossil fuel other than solution gas (expressed as the higher heating value of the fuel) consumed by the system in BTU, is the energy content of the eligible waste fuel, producer gas and spent pulping liquor (expressed as the higher heating value of the fuel) consumed by the system in BTU, is the gross electrical energy produced by the system in kilowatt-hours, and is the net useful energy in the form of heat exported from the system to a thermal host in BTU, and uses fuel of which no more than 25% of the energy content (expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis, or [Repealed, 2022, c. 10, s. 44] equipment that is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy in a process all or substantially all of the energy input of which is thermal waste, other than equipment that uses heat produced by a gas turbine that is part of the first stage of a combined cycle system, and equipment that, on the date of its acquisition, uses chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs), within the meaning assigned by the Ozone-Depleting Substances Regulations, 1998, and property, other than reconditioned or remanufactured equipment, that would otherwise be included in another Class in this Schedule property that meets the following conditions : it is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of heating an actively circulated liquid or gas and is active solar heating equipment, including such equipment that consists of above ground solar collectors, solar energy conversion equipment, solar water heaters, thermal energy storage equipment, control equipment and equipment designed to interface solar heating equipment with other heating equipment, equipment that is part of a ground source heat pump system that transfers heat to or from the ground or groundwater (but not to or from surface water such as a river, a lake or an ocean) and that, at the time of installation, meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), energy conversion equipment, thermal energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating or cooling equipment, or equipment that is part of an air-source heat pump system that transfers heat from the outside air, including refrigerant piping, energy conversion equipment, thermal energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating and cooling equipment, and it is not a building, part of a building (other than a solar collector that is not a window and that is integrated into a building), energy equipment that backs up equipment described in subclause (A)(I), (II) or (III) nor equipment that distributes heated or cooled air or water in a building, a hydro-electric installation of a producer of hydro-electric energy, where that installation has, if acquired after February 21, 1994 and before December 11, 2001, an annual average generating capacity not exceeding 15 megawatts upon completion of the site development, or, if acquired after December 10, 2001, a rated capacity at the hydro-electric installation site that does not exceed 50 megawatts, and is the electrical generating equipment and plant (including structures) of that producer including a canal, a dam, a dyke, an overflow spillway, a penstock, a powerhouse (complete with electrical generating equipment and other ancillary equipment), control equipment, fishways or fish bypasses, and eligible transmission equipment, other than distribution equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i), an addition or alteration, which is acquired after February 21, 1994 and before December 11, 2001, to a hydro-electric installation that is described in subparagraph (ii) or that would be so described if that installation were acquired by the taxpayer after February 21, 1994, and which results in an increase in generating capacity, if the resulting annual average generating capacity of the hydro-electric installation does not exceed 15 megawatts, an addition or alteration, which is acquired after December 10, 2001, to a hydro-electric installation that is described in subparagraph (ii) or that would be so described if that installation were acquired by the taxpayer after February 21, 1994, and which results in an increase in generating capacity, if the resulting rated capacity at the hydro-electric installation site does not exceed 50 megawatts, heat recovery equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of conserving energy, reducing the requirement to acquire energy or extracting heat for sale, by extracting for reuse thermal waste that is generated directly in an industrial process (other than an industrial process that generates or processes electrical energy), including such equipment that consists of heat exchange equipment, compressors used to upgrade low pressure steam, vapour or gas, waste heat boilers and other ancillary equipment such as control panels, fans, instruments or pumps, but not including property that is employed in re-using the recovered heat (such as property that is part of the internal heating or cooling system of a building or electrical generating equipment), is pollution abatement equipment, or is a building, a fixed location device that is a wind energy conversion system that is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy, and consists of a wind-driven turbine, electrical generating equipment and related equipment, including control and conditioning equipment, support structures, a powerhouse complete with other ancillary equipment, and eligible transmission equipment, other than distribution equipment, auxiliary electrical generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i), fixed location photovoltaic equipment that is used by the taxpayer, or a lessee of the taxpayer, primarily for the purpose of generating electrical energy from solar energy if the equipment consists of solar cells or modules and related equipment including inverters, control and conditioning equipment, support structures and eligible transmission equipment, but not including a building or a part of a building (other than a solar cell or module that is integrated into a building), auxiliary electrical generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i), and distribution equipment, equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy or heat energy, or both electrical and heat energy, solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of completing a well (including the wellhead and production string), or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment, eligible transmission equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, distribution equipment, equipment described in subclause (i)(A)(II), property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its paragraph (a.1), equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of collecting landfill gas or digester gas, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), fans, compressors, storage tanks, heat exchangers and related equipment used to collect gas, to remove non-combustibles and contaminants from the gas or to store the gas, but not including pollution abatement equipment and property otherwise included in Class 10 or 17, equipment that is used by the taxpayer, or by a lessee of the taxpayer, for the sole purpose of generating heat energy, not using any fuel other than eligible waste fuel, fossil fuel, producer gas or a combination of those fuels, uses fuel of which no more than 25% of the energy content (expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis, may include fuel handling equipment used to upgrade the combustible portion of the fuel, control, feedwater and condensate systems, and other ancillary equipment, and does not include equipment used for the purpose of producing heat energy to operate electrical generating equipment, buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), fuel storage facilities, other fuel handling equipment, property otherwise included in Class 10 or 17, and pollution abatement equipment, an expansion engine with one or more turbines, or cylinders, that convert the compression energy in pressurized natural gas into shaft power that generates electricity, including the related electrical generating equipment and ancillary controls, where the expansion engine is part of a system that is installed on a distribution line of a distributor of natural gas, or on a branch distribution line of a taxpayer primarily engaged in the manufacturing or processing of goods for sale or lease if the branch line is used to deliver natural gas directly to the taxpayer’s manufacturing or processing facility, and is used instead of a pressure reducing valve, equipment all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to produce liquid biofuel, including storage, materials handling and ash-handling equipment and equipment used to remove non-combustibles and contaminants from the fuels produced, but not including equipment used to produce spent pulping liquor, equipment used for the collection or transportation of specified waste material or carbon dioxide, equipment used for the transmission or distribution of liquid biofuel, property that would otherwise be included in Class 17, automotive vehicles, buildings or other structures, and fixed location fuel cell equipment used by the taxpayer, or by a lessee of the taxpayer, that uses hydrogen generated only from ancillary electrolysis equipment (or, if the fuel cell is reversible, the fuel cell itself) using electricity all or substantially all of which is generated by using kinetic energy of flowing water or wave or tidal energy or by geothermal, photovoltaic, wind energy conversion, or hydro-electric equipment, of the taxpayer or the lessee, and equipment ancillary to the fuel cell equipment other than buildings or other structures, transmission equipment, distribution equipment, auxiliary electrical generating equipment and property otherwise included in Class 10 or 17, property that is part of a system that is used by the taxpayer, or by a lessee of the taxpayer, primarily to produce and store biogas, including equipment that is an anaerobic digester reactor, a buffer tank, a pre-treatment tank, biogas piping, a fan, a compressor, a heat exchanger, a biogas storage tank and equipment used to remove non-combustibles and contaminants from the gas, but not including property (other than a buffer tank) that is used to collect, move or store organic waste, equipment used to process the residue after digestion or to treat recovered liquids, fixed location property that is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electricity using kinetic energy of flowing water or wave or tidal energy, including support structures, control and conditioning equipment, submerged cables and eligible transmission equipment, but not including buildings, distribution equipment, auxiliary electricity generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that class were read without reference to its subparagraph (a.1)(i), district energy equipment that is used by the taxpayer or by a lessee of the taxpayer, is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraphs (i), (iv), (vii) or (ix) or would be described in those subparagraphs if owned by the taxpayer, and is not a building, is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating producer gas (other than producer gas that is to be converted into liquid fuels or chemicals), uses feedstock of which no more than 25% of the energy content (expressed as the higher heating value of the feedstock) is from fossil fuel, as determined on an annual basis, related piping (including fans and compressors), air separation equipment, storage equipment, equipment used for drying or shredding feedstock, ash-handling equipment, equipment used to upgrade the producer gas into biomethane, and equipment used to remove non-combustibles and contaminants from the producer gas, and equipment used to convert producer gas into liquid fuels or chemicals, equipment used by the taxpayer, or by a lessee of the taxpayer, for the purpose of charging electric vehicles, including charging stations, transformers, distribution and control panels, circuit breakers, conduits and related wiring, if the equipment is situated on the load side of an electricity meter used for billing purposes by a power utility, or on the generator side of an electricity meter used to measure electricity generated by the taxpayer or the lessee, as the case may be, more than 75 per cent of the electrical equipment capacity is dedicated to charging electric vehicles, and the equipment is an electric vehicle charging station (other than a building) that supplies more than 10 kilowatts of continuous power, or used primarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power, fixed location energy storage property that is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of storing and discharging electrical energy including batteries, compressed air energy storage, flywheels, ancillary equipment (including control and conditioning equipment) and related structures, and not including buildings, pumped hydroelectric storage, hydro electric dams and reservoirs, property used solely for backup electrical energy, batteries used in vehicles or other automotive equipment, property used to charge vehicles or other automotive equipment, fuel cell systems where the hydrogen is produced via steam reformation of methane and property otherwise included in Class 10 or 17, and the electrical energy to be stored and discharged is generated from other property that is described in paragraph (c) or in any other subparagraph of this paragraph, or meets the condition that the efficiency of the electrical energy storage system that includes the property – computed by reference to the quantity of electrical energy supplied to and discharged from the electrical energy storage system – is greater than 50%, and a pumped hydroelectric energy storage installation all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to store and discharge electrical energy including reversing turbines, eligible transmission equipment, dams, reservoirs and related structures, and that meets the condition in either subclause (d)(xviii)(B)(I) or (II) in this Class, but not including property used solely for backup electrical energy, and buildings, equipment all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to produce solid biofuel, including storage, materials handling and ash-handling equipment, but not including equipment used to make wood chips, hog fuel or black liquor, buildings and other structures, and equipment used by the taxpayer, or by a lessee of the taxpayer, to dispense hydrogen for use in automotive equipment powered by hydrogen, including vaporization, compression, cooling and storage equipment, but not including equipment used for the production or transmission of hydrogen, equipment used for the transmission or distribution of electricity, auxiliary electrical generating equipment, and buildings and other structures, or equipment all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to produce hydrogen through electrolysis of water, including electrolysers, rectifiers and other ancillary electrical equipment, water treatment and conditioning equipment and equipment used for hydrogen compression and storage, but not including equipment used for the transmission or distribution of hydrogen, is situated in Canada, including property described in subparagraph (d)(v) or (xiv) that is installed in the exclusive economic zone of Canada, the property was acquired by the taxpayer not more than five years after the time it is considered to have become available for use, for the purpose of subsection 13(26) of the Act, by the person from whom it was acquired and remains at the same site in Canada as that at which that person used the property. Property that is acquired after February 22, 2005 and before 2025 (other than property that was included, before it was acquired, in another class in this Schedule by any taxpayer) and that is property that would otherwise be included in Class 43.1 otherwise than because of paragraph (d) of that Class; or because of paragraph (d) of that Class, if [Repealed, 2022, c. 10, s. 45] subclauses (d)(xvii)(C)(I) and (II) of that Class were read as follows: an electric vehicle charging station (other than a building) that supplies at least 90 kilowatts of continuous power, or used primarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power, and in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies at least 90 kilowatts of continuous power, or clause (d)(xviii)(B) of that Class were read without reference to its subclause (II). Property that is a patent, or a right to use patented information for a limited or unlimited period. Property acquired after March 22, 2004 and before March 19, 2007 (other than property acquired before 2005 in respect of which an election is made under subsection 1101(5q)) that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is principally or is used principally as electronic process control or monitor equipment; electronic communications control equipment; systems software for equipment referred to in paragraph (a) or (b); or data handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment). Property acquired after March 22, 2004 that is data network infrastructure equipment, and systems software for that equipment, that would, but for this Class, be included in Class 8 because of paragraph (i) of that Class. transmission or distribution equipment (which may include for this purpose a structure) acquired after February 22, 2005 and that is used for the transmission or distribution of electrical energy, other than property that is a building, and property that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005; or equipment acquired after March 18, 2007 that is part of a liquefied natural gas facility that liquefies or regasifies natural gas, including controls, cooling equipment, compressors, pumps, storage tanks, vaporizers and ancillary equipment, loading and unloading pipelines on the facility site used to transport liquefied natural gas between a ship and the facility, and related structures, other than property that is acquired for the purpose of producing oxygen or nitrogen, a breakwater, a dock, a jetty, a wharf, or a similar structure, or a building. Property acquired after February 22, 2005 that is a combustion turbine (including associated burners and compressors) that generates electrical energy, other than electrical generating equipment described in any of paragraphs (f) to (h) of Class 8; property acquired before 2006 in respect of which an election is made under subsection 1101(5t); and property that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005. Property (other than property included in Class 57 or 58) that is a pipeline, including control and monitoring devices, valves and other equipment ancillary to the pipeline, that is acquired after February 22, 2005, is used for the transmission (but not the distribution) of petroleum, natural gas or related hydrocarbons, and is not a pipeline described in subparagraph (l)(ii) of Class 1, property that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005, equipment included in Class 7 because of paragraph (j) of that Class, or a building or other structure; or is acquired after February 25, 2008, is used for the transmission of carbon dioxide, and is not equipment included in Class 7 because of paragraph (k) of that Class, or a building or other structure. Property acquired after March 18, 2007 that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is included in Class 52 or that is principally or is used principally as Property acquired after March 18, 2007 that is a pipeline, including control and monitoring devices, valves and other equipment ancillary to the pipeline, used for the distribution (but not the transmission) of natural gas, other than a pipeline described in subparagraph (l)(ii) of Class 1 or in Class 49; property that has been used or acquired for use for any purpose by a taxpayer before March 19, 2007; and Property acquired by a taxpayer after January 27, 2009 and before February 2011 that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is principally or is used principally as systems software for equipment referred to in paragraph (i) or (ii), or data handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment); is situated in Canada; has not been used, or acquired for use, for any purpose whatever before it is acquired by the taxpayer; and is acquired by the taxpayer for use in a business carried on by the taxpayer in Canada or for the purpose of earning income from property situated in Canada, or for lease by the taxpayer to a lessee for use by the lessee in a business carried on by the lessee in Canada or for the purpose of earning income from property situated in Canada. Property acquired after 2015 and before 2026 (other than property included in Class 57 or 58) that is not included in Class 29, but that would otherwise be included in that class if subparagraph (a)(ii) of that Class were read without reference to “in Canadian field processing carried on by the lessee or”; and that Class were read without reference to its subparagraphs (b)(iv) to (vi) and paragraph (c). Property that is a zero-emission vehicle that is not included in Class 16 or 55. Property that is a zero-emission vehicle that would otherwise be included in Class 16. Property that is acquired, and becomes available for use, by a taxpayer after March 1, 2020 and before 2034, if the property is either automotive equipment (other than a motor vehicle) that is fully electric or powered by hydrogen, or an addition or alteration made by the taxpayer to automotive equipment (other than a motor vehicle) to the extent it causes the automotive equipment to become fully electric or powered by hydrogen; and would be accelerated investment incentive property or reaccelerated investment incentive property of the taxpayer if subsections 1104(4) and (4.01) were read without their exclusions for property included in Class 56. Property that is part of a CCUS project of a taxpayer and that is equipment, other than excluded CCUS equipment, that is to be used solely for capturing carbon dioxide that would otherwise be released into the atmosphere, or directly from the ambient air, prepares or compresses captured carbon for transportation, generates or distributes electrical energy, heat energy or a combination of electrical and heat energy, that directly and solely supports a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, and, for greater certainty, not including equipment that supports the qualified CCUS project indirectly by way of an electrical utility grid, or expands the capacity of existing equipment that supports the qualified CCUS project and that distributes electrical energy, heat energy or a combination of electrical and heat energy, is equipment that solely supports a qualified CCUS project and transmits electrical energy from electrical generation equipment described in subparagraph (iii) to the qualified CCUS project, or delivers, collects, recovers, treats or recirculates water, or a combination of any of those activities, that solely supports a qualified CCUS project; equipment that is to be used solely for transportation of captured carbon, including equipment used for the transportation system safety and integrity; equipment that is to be used solely for storage of captured carbon in a geological formation, including equipment used for the storage system safety and integrity, but not including equipment used for enhanced oil recovery; property that is physically and functionally integrated with the equipment described in any of paragraphs (a) to (c) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in any of paragraphs (a) to (c) within a CCUS process as part of an electrical system, a fuel supply system, a liquid delivery and distribution system, a cooling system, a process material storage and handling and distribution system, a process venting system, a process waste management system, or a utility air or nitrogen distribution system; equipment used for system safety and integrity or as part of a control or monitoring system solely to support the equipment described in any of paragraphs (a) to (d); or a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in any of paragraphs (a) to (e); or incorporated into another property that would not otherwise be described in any of paragraphs (a) to (f) if the incorporation causes the other property to satisfy the description in any of paragraphs (a) to (f), or used solely to refurbish property described in any of paragraphs (a) to (f) that is part of a CCUS project of the taxpayer. Property that is part of a CCUS project of a taxpayer, and that is equipment to be used solely for using captured carbon in industrial production (including for enhanced oil recovery); property that is physically and functionally integrated with the equipment described in paragraph (a) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in paragraph (a) within a CCUS process as part of equipment used as part of a control, monitoring or safety system solely to support the equipment described in paragraph (a) or (b); a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in any of paragraphs (a) to (c); or incorporated into another property that would not otherwise be described in any of paragraphs (a) to (d) if the incorporation causes the other property to satisfy the description in any of paragraphs (a) to (d), or used solely to refurbish property described in any of paragraphs (a) to (d) that is part of a CCUS project of the taxpayer. Intangible property (including property deemed to have been acquired under subsection 13(7.6) of the Act) that is not included in any other class and that is acquired for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery) in Canada, including property acquired as a result of undertaking environmental studies or community consultations (including studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery)); and not acquired for the purpose of drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well. Intangible property (including property deemed to have been acquired under subsection 13(7.6) of the Act) not included in any other class that is acquired for the purposes of drilling or converting a well in Canada for the permanent storage of captured carbon (other than for enhanced oil recovery), drilling or completing a well for the permanent storage of captured carbon (other than for enhanced oil recovery) in Canada, building a temporary access road to the well or preparing a site in respect of the well, or drilling or converting a well in Canada for the purposes of monitoring pressure changes or other phenomena in a geological formation in which captured carbon is permanently stored (other than for enhanced oil recovery); or a right, licence or privilege for the purposes of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery), or to permanently store captured carbon in dedicated geological storage. For the purposes of paragraph 1100(1)(b), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of the capital cost of property of Class 13 in Schedule II is the lesser of the aggregate of each amount determined in accordance with section 2 of this Schedule that is a prorated portion of the part of the capital cost to him, incurred in a particular taxation year, of a particular leasehold interest; and the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100) of property of the class. Subject to section 3 of this Schedule, the prorated portion for the year of the part of the capital cost, incurred in a particular taxation year, of a particular leasehold interest is the lesser of 1/5 of that part of the capital cost; and the amount determined by dividing that part of the capital cost by the number of 12-month periods (not exceeding 40 such periods) falling within the period commencing with the beginning of the particular taxation year in which the capital cost was incurred and ending with the day the lease is to terminate. For the purpose of determining, under section 2 of this Schedule, the prorated portion for the year of the part of the capital cost, incurred in a particular taxation year, of a particular leasehold interest, the following rules apply: where an item of the capital cost of a leasehold interest was incurred before the taxation year in which the interest was acquired, it shall be deemed to have been incurred in the taxation year in which the interest was acquired; where, under a lease, a tenant has a right to renew the lease for an additional term, or for more than one additional term, after the term that includes the end of the particular taxation year in which the capital cost was incurred, the lease shall be deemed to terminate on the day on which the term next succeeding the term in which the capital cost was incurred is to terminate; the prorated portion for the year of the part of the capital cost, incurred in a particular taxation year, of a particular leasehold interest shall not exceed the amount, if any, remaining after deducting from that part of the capital cost the aggregate of the amounts claimed and deductible in previous years in respect thereof; where, at the end of a taxation year, the aggregate of the amounts claimed and deductible in previous taxation years in respect of a particular leasehold interest, and the proceeds of disposition, if any, of part or all of that interest equals or exceeds the capital cost as of that time of the interest, the prorated portion of any part of that capital cost shall, for all subsequent years, be deemed to be nil; and where, at the end of a taxation year, the undepreciated capital cost to the taxpayer of property of Class 13 in Schedule II is nil, the prorated portion of any part of the capital cost as of that time shall, for all subsequent years, be deemed to be nil. Where a taxpayer has acquired a property that would, if the property had been acquired by a person with whom the taxpayer was not dealing at arm’s length at the time the property was acquired, be a leasehold interest of that person, a reference in this Schedule to a leasehold interest shall, in respect of the taxpayer, include a reference to that property, and the terms and conditions of the leasehold interest of that property in respect of the taxpayer shall be deemed to be the same as those that would have applied in respect of that person had that person acquired the property. For the purposes of paragraph 1100(1)(f), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of property described in Class 15 in Schedule II is the lesser of if the property is an accelerated investment incentive property acquired in the year, if the property is acquired before 2024, 1.5 times an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, and if the property is acquired after 2023, 1.25 times an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, if the property is a reaccelerated investment incentive property acquired in the year, if the property is acquired before 2030, 1.5 times an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, and if the property is acquired after 2029, 1.25 times an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, and in any other case, an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, and the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100 for the taxation year) of property of that class. Where all the property of the class is used in connection with one timber limit or section thereof, the rate per cord, board foot or cubic metre is the amount determined by dividing the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100 for the taxation year and computed as if subparagraph 1(a)(i) did not apply) of the property the number of cords, board feet or cubic metres of timber in the limit or section thereof as of the commencement of the taxation year, obtained by deducting the quantity cut up to that time from the amount shown by the latest cruise. Where a part of the property of the class is used in connection with one timber limit or a section thereof and a part is used in connection with another limit or section thereof, a separate rate shall be computed for each part of the property, in the manner provided in section 2 of this Schedule, as though each part of the property were the taxpayer’s only property of that class. For the purposes of paragraph 1100(1)(g), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of a property described in that paragraph that is an industrial mineral mine or a right to remove industrial minerals from an industrial mineral mine is the lesser of an amount computed on the basis of a rate (computed under section 2 or 3 of this Schedule, as the case may be) per unit of mineral mined in the taxation year; and the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100) of the mine or right. If the taxpayer has not been granted an allowance in respect of the mine or right for a previous taxation year, the rate for a taxation year is determined by the formula (a)1.5, if the property is an accelerated investment incentive property acquired before 2024 or a reaccelerated investment incentive property acquired before 2030, 1.5, if the property is an accelerated investment incentive property acquired before 2024 or a reaccelerated investment incentive property acquired before 2030, (b)1.25, if the property is an accelerated investment incentive property acquired after 2023 or a reaccelerated investment incentive property acquired after 2029, and 1.25, if the property is an accelerated investment incentive property acquired after 2023 or a reaccelerated investment incentive property acquired after 2029, and (c)1, in any other case; 1, in any other case; is the capital cost of the mine or right to the taxpayer; is the residual value, if any, of the mine or right; and (a)if the taxpayer has acquired a right to remove only a specified number of units, the specified number of units of material that the taxpayer acquired a right to remove, and if the taxpayer has acquired a right to remove only a specified number of units, the specified number of units of material that the taxpayer acquired a right to remove, and (b)in any other case, the number of units of commercially mineable material estimated as being in the mine when the mine or right was acquired. in any other case, the number of units of commercially mineable material estimated as being in the mine when the mine or right was acquired. Where the taxpayer has been granted an allowance in respect of the mine or right in a previous taxation year, the rate for the taxation year is if paragraph (b) does not apply, if section 2 applied in the previous year to determine the rate employed to determine the allowance for the year, the rate that would have been determined under section 2 if paragraph (c) of the description of A in that section applied, and in any other case, the rate employed to determine the allowance for the most recent year for which an allowance was granted; and where it has been established that the number of units of material remaining to be mined in the previous taxation year was in fact different from the quantity that was employed in determining the rate for the previous year referred to in paragraph (a), or where it has been established that the capital cost of the mine or right is substantially different from the amount that was employed in determining the rate for that previous year, a rate determined by dividing the amount that would be the undepreciated capital cost to the taxpayer of the mine or right as of the commencement of the year if paragraph (c) of the description of A in section 2 had applied in respect of each previous taxation year minus the residual value, if any, by in any case where the taxpayer has acquired a right to remove only a specified number of units, the number of units of commercially mineable material that, at the commencement of the year, he had a right to remove, and in any other case, the number of units of commercially mineable material estimated as remaining in the mine at the commencement of the year. In lieu of the aggregate of deductions otherwise allowable under this Schedule, a taxpayer may elect that the deduction for the taxation year be the lesser of $100; and the amount received by him in the taxation year from the sale of mineral. In this Schedule, residual value means the estimated value of the property if all commercially mineable material were removed. For the purposes of paragraph 1100(1)(e), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of the capital cost to him of a property, other than a timber resource property, that is a timber limit or a right to cut timber from a limit is the lesser of an amount computed on the basis of a rate (determined under section 2 or 3 of this Schedule) per cord, board foot or cubic metre cut in the year, and 1/10 of the amount expended by the taxpayer after the commencement of his 1949 taxation year that is included in the capital cost to him of the timber limit or right, for surveys, cruises or preparation of prints, maps or plans for the purpose of obtaining a licence or right to cut timber, and the amount expended as described in clause (A) minus the aggregate of amounts deducted under this subparagraph in computing the income of the taxpayer in previous years; and the undepreciated capital cost to the taxpayer as of the end of the year (before making any deduction under section 1100 for the year) of the timber limit or right. If the taxpayer has not been granted an allowance in respect of the limit or right for a previous taxation year, the rate for a taxation year is an amount determined by the formula is the residual value of the timber limit; is the total of all amounts expended by the taxpayer after the commencement of the taxpayer’s 1949 taxation year that are included in the capital cost to the taxpayer of the timber limit or right, for surveys, cruises or preparation of prints, maps or plans for the purpose of obtaining a licence or right to cut timber; and is the quantity of timber in the limit or the quantity of timber the taxpayer has obtained a right to cut, as the case may be, (expressed in cords, board feet or cubic metres) as shown by a cruise. If the taxpayer has been granted an allowance in respect of the limit or right in a previous taxation year, the rate for a taxation year is where it has been established that the quantity of timber that was in the limit or that the taxpayer had a right to cut was in fact substantially different from the quantity that was employed in determining the rate for the previous year referred to in paragraph (a), or where it has been established that the capital cost of the limit or right is substantially different from the amount that was employed in determining the rate for that previous year, a rate determined by dividing the amount that would be the undepreciated capital cost to the taxpayer of the limit or right as of the commencement of the year if paragraph (c) of the description of A in section 2 had applied in respect of each previous taxation year, minus the residual value, the estimated remaining quantity of timber that is in the limit or that the taxpayer has a right to cut, as the case may be, (expressed in cords, board feet or cubic metres) at the commencement of the year. In lieu of the deduction otherwise determined under this Schedule, a taxpayer may elect that the deduction for a taxation year be the lesser of the amount received by him in the taxation year from the sale of timber. In this Schedule, residual value means the estimated value of the property if the merchantable timber were removed. A-1 Steel & Iron Foundry (Vancouver) Ltd. Cl A. Cl B. Aabro Mining & Oils Ltd. Com. Abbey Life Insurance Company of Canada Abcourt Metals Inc. Aberdeen Minerals Ltd.

Abeta Mining Corp. Ltd. Abex Mines Ltd. Abino Gold Mines Ltd. Abitibi Asbestos Mining Co. Ltd. Abitibi Copper Mines Ltd. Abitibi Paper Co. Ltd. 7½ pc cu A pr. Abstainers Insurance Co. Acadia Uranium Mines Ltd. Accra Explorations Limited Accurate Calculations Ltd. Acheron Mines Ltd. Acklands Limited 6 pc cu pr. 6 pc cu cv 2nd pr. Acme Gas & Oil Co. Ltd. Aconic Acres Limited $7.20 pc A pr. Wt. Acroll Oil & Gas Ltd. Adanac Mining & Exploration Ltd. Adera Mining Limited Admiral Corporation Admiral Mines Limited Advance Red Lake Gold Mines Ltd. Advocate Mines Ltd. Aetna Investment Ltd. Afton Mines Limited A.G.F. Management Ltd. Cl B pr. AGF Special Fund Ltd. Agressive Mining Limited Agnico Mines Ltd. Agra Industries Ltd. AGT Data Systems Ltd. AHED Music Corp. Ltd. Aiken Russet Red Lake Mines Ltd. Aimco Industries Ltd. A.I.S. Resources Ltd. Ajax Mercury Mines Ltd. Ajax Minerals Limited Akaitcho Yellowknife Gold Mines Ltd. Alakon Metals Limited Albany Oil and Gas Ltd. Albarmont Mines Corporation Albatros Gold Mines Ltd. Alberta Copper Resources Ltd. Alberta Eastern Gas Ltd. Alberta Gas Trunk Line Co. Ltd. 4¾ pc cu C pr. 53/8 pc cu cvD pr. Alberta Gypsum Ltd. Alberta Natural Gas Co. Ltd. Alcan Aluminium Ltd. 4 1/4 pc cu cv pr. Alchib Development Ltd. Alcor Minerals Limited Alexander Red Lake Mines Ltd. Algoma Central Railway Co. Algoma Steel Corp. Ltd. The Algonquin Building Credits Ltd. Alice Arm Mining Ltd. Alice Lake Mines Limited Alina Mines & Oils Ltd. Aljo Mines Ltd. Allarco Developments Inc. All Canadian-American Investments Limited All-Can Holdings Ltd. Allcop Mines Ltd. Alliance Building Corp. Ltd. 7 pc cu cv A pr. Allied Mining Corp. Allied Roxana Minerals Limited Allied Telemedia Ltd. Alminex Ltd. Alscope Consolidated Ltd. Altair Mining Corp. Limited Aluminum Co. of Canada Ltd. 4 pc cu 1st pr. 4½ pc cu 2nd pr. Alvija Mines Ltd. Alwin Mining Co. Ltd. Amalgamated Beau Belle Mines Ltd. Amalgamated Kirkland Mines Ltd. Amalgamated Larder Mines Ltd. Amalgamated Properties Ltd. Amalgamated Rare Earth Mines Ltd. Amalgamated Resources Ltd. Amalta Oils & Minerals Ltd. Ambassador Development Corp. of Canada Ltd. Ambassador Mines Ltd. Amber Resources Ltd. Ameranium Mines Ltd. Americ Mines Ltd. American Chibougamau Mines Ltd. American Copper & Smelting Ltd. American Eagle Petroleums Ltd. American Leduc Petroleums Ltd. American Metropolitan Enterprises Ltd. American Quasar Petroleum Co. American Uranium Limited Amigo Mines Ltd. Anaconda Petroleum Limited Anchor Mines Limited Anchor Petroleums Ltd. Andacollo Mining Co. Ltd. Andex Mines Ltd. Angelus Petroleums 1965 Ltd. Anglo American Nickel Mining Corp. Ltd. Anglo-Bomarc Mines Limited Anglo-Canadian Pulp & Paper Mills Ltd. 4 1/2 pc cu cv pr. Anglo-Canadian Telephone Co. 4 1/2 pc cu pr. $2.65 cu pr. $2.90 cu pr. $3.15 cu pr. Anglo-Permanent Corporate Holdings Limited Anglo-Rouyn Mines Ltd. Anglo United Development Corp. Ltd. Anglo Western Minerals Ltd. Angot Group Limited, The Annmar Mining Limited Ansil Mines Ltd. Anthes Imperial Limited 5 1/2 pc cu A 1st pr. 5 1/2 pc cu B 1st pr. 5 1/4 pc cu C 1st pr. Anthonian Mining Corp. Ltd. Anthony Gas & Oil Explorations Ltd. Antoine Silver Mines Ltd. Anuk River Mines Ltd. Anuwon Uranium Mines Ltd. Aquablast Incorporated Aquacare International Ltd. Aquitaine Co. of Canada Ltd. Arcadia Explorations Ltd. Arctic Gold & Silver Mines Ltd. Arctic Yellowknife Mines Ltd. Ardel Explorations Limited Ardo Mines Ltd. B wt. Argosy Mining Corp. Ltd. Argus Corporation Limited $2.50 cu A pr. $2.60 cu A pr. $2.70 cu B pr. C pr. Arjon Gold Mines Ltd. Arlington Silver Mines Ltd. Armore Mines Ltd. Arno Mines Ltd. Arrowhead Gold Mines Ltd. Asamera Oil Corporation Ltd. Asbestos Corporation Ltd. Ascopex Explorations Ltd. Aselo Industries Ltd. Ashland Oil Canada Ltd. 6 pc cu cv pr. Ashland Oil Inc. Aspen Grove Mines Ltd. Associated Porcupine Mines Ltd. Astonish Lake Uranium Mining Corp. Ltd. Astrabrun Mines Ltd. Astral Communications Ltd. Atco Industries Ltd. Athabasca Columbia Resources Ltd. Athena Mines Limited Atlanta Mines Ltd. Atlantic Coast Copper Corp. Ltd. Atlantic Nickel Mines Ltd. Atlantic Richfield Co. Atlantic Sugar Refineries Co. Limited A cu pr. 5 pc cu pr. Altantic Sugar Refineries Co. Limited Atlantic Trust Company Atlantic Tungsten Corp. Ltd. Atlas Explorations Limited Atlas Yellowknife Mines Ltd. Attila Resources Ltd. Augdome Corp. Ltd. Augmitto Explorations Ltd. August Porcupine Gold Mines Ltd. Aunor Gold Mines Ltd. Auscan Mining and Oil Corporation Limited Austin Investment Corp. Ltd. Auto Electric Services Co. Ltd. Auto Marine Electric Ltd. Pr. Automotive Hardware Limited Autotelic Industries Ltd. Ava Gold Mining Co. Ltd. Avco Corporation Avilla International Explorations Ltd. Avino Mines & Resources Limited Avoca Mines Canada Ltd. Babine International Resources Ltd. Bahamas-Caribbean Development Corporation Limited Baker Talc Ltd. Balco Forest Products Ltd. Bald Mountain Oil Co. Baldwin Consolidated Mines Ltd. Ballinderry Explorations Limited Bamboo Creek Gold Mines Ltd. Banco Finance Limited Bancroft Uranium Mines Ltd. Band-Ore Gold Mines Ltd. Bankeno Mines Ltd. Bankfield Consolidated Mines Ltd. Bank of British Columbia Bank of Montreal Bank of Nova Scotia Banner Porcupine Mines Ltd. Banque Canadienne Nationale La Banque Provinciale du Canada Bantam Mining Ltd. Barber-Ellis of Canada Ltd. Barber Oil Corporation Barbi Lake Copper Mines Ltd. Barcelona Traction Light & Power Co. Barclay Resources Ltd. Barex-Trust, The Barima Minerals Ltd. Barons Oil Limited Barrington Exploration Corp. Ltd. Bartaco Industries Limited Barvallee Mines Ltd. Barymin Explorations Ltd. Base Metals Mining Corp. Ltd. Bashaw Leduc Oil & Gas Limited Basic Resources International Limited Baslen Petroleums Ltd. Bateman Bay Mining Co. Bathurst Norsemines Ltd. A wt. Bathurst Paper Ltd. 5 1/4 pc cu 1963 pr. Baton Broadcasting Ltd. Bay Mills Ltd. 6 pc cu A 1st pr. B.C. Turf Limited Beacon Mining Co. Ltd. Bear International Industries Ltd. Beattie-Duquesne Mines Ltd. Beauce Placer Mining Co. Ltd. Beaumont Resources Limited Beauport Holdings Ltd. Beaver Engineering Ltd. Beaver Lumber Co. Ltd. $1.40 cu pr. Becker Milk Co. Ltd. Bel-Air Mining Ltd. Belcarra Explorations Ltd. Belding-Corticelli Limited 7 pc cu pr. Belgium Standard Ltd. Bell Canada $3.20 cu cv pr. $3.34 cu cv cl B pr. Bellechasse Mining Corp Ltd. Belleterre Quebec Mines Ltd. Bellex Mines Ltd. Bell Knit Industries Ltd. Bell Molybdenum Mines Ltd. Belore Mines Ltd. Belra Explorations Ltd. Benson Mines Limited Berkley Hotel Berncam International Industries Ltd. Bethlehem Copper Corporation Ltd. Betrust Investment Corporation Ltd. 5 3/4 pc cu A pr. Big I Mines Ltd., The Big Jackpot Mines Ltd. Big Long Lac Gold Mining Co. Ltd. Big Nama Creek Mines Ltd. Big Town Copper Mines Ltd. Bilmac Gold Mines Ltd. Biltmore Hats Limited Cl A cu pr. Bio-Millet Laboratories Bird Construction Co. Ltd. Bird River Mines Co. Ltd. Biroco Kirkland Mines Ltd. Biron Bay Gold Mines Ltd. Bison Petroleum & Minerals Ltd. Black Bay Uranium Ltd. Black Cricket Mines Ltd. Black Giant Mines Ltd. Black Hawk Mining Ltd. Black Photo Corporation Ltd. Blackwater Mines Ltd. Block Bros. Industries Ltd. Blue Bonnets Raceway Inc. Blue Grass Uranium Mines Ltd. Blue Gulch Explorations Limited Blue Star Mines Limited Bluewater Oil & Gas Ltd. Bochawna Copper Mines Ltd. Bock & Frère Ltée 6 3/4 pc cu pr. Boise Yellowknife Mines Ltd. Bombardier Limited Bonanza Explorations Ltd. Bonnet Plume River Mines Ltd. Bon-Val Mines Ltd. Boraway Mines Ltd. Border Chemical Company Limited Bordun Mining (Quebec) Limited Borealis Exploration Ltd. Boswell River Mines Ltd. Boundary Exploration Ltd. Bounty Exploration Ltd. Bourbeau Lake Mines Ltd. Bourlamaque Central Mines 1945 Ltd. Bovis Corporation Ltd. Bowater Paper Corporation Ltd. Bowaters Mersey Paper Company Ltd. 5 1/2 pc cu pr. Bowes Co. Ltd. Bow Valley Industries Ltd. 5 1/2 pc cu A pr. BP Canada Ltd. 5 pc pr. BP Oil & Gas Limited Bracemac Mines Ltd. Bralorne Can-Fer Resources Ltd. Bralorne Oil & Gas Ltd. Bralsaman Petroleums Ltd. Bramalea Consolidated Development Ltd. Brameda Resources Limited Braminco Mines Ltd. Brandy Brook Mines Ltd. Brascan Limited Brenda Mines Limited Brenmac Mines Limited Brettland Mining Ltd. Brett Oils Limited Brewster Lake Mines Limited Briarcourt Mines Ltd. Bridge Hill Mines Limited Bridge & Tank Co. of Canada Ltd. Bright & Co. Ltd. T.G. Bright Red Lake Mines Ltd. Bright Star Trio Mining Ltd. Brilund Mines Ltd. Brinco Ltd. British American Bank Note Co. Ltd. British Columbia Forest Products Ltd. British Columbia Oil Lands Limited British Columbia Packers Ltd. British Columbia Sugar Refinery Ltd. British Columbia Telephone Co. 4 3/8 pc cu pr. 4 3/4 pc C pr. 4 3/4 pc 1956 cu D pr. 4.84 pc cu pr. 5.15 pc cu pr. 5 3/4 pc cu pr. 6 pc cu 2nd pr. 6.80 pc cu pr. British Controlled Oilfields Ltd. British International Finance Canada Ltd. British Matachewan Gold Mines Ltd. Broken Hill Explorations Ltd. Brooke Bond Foods Ltd. 4.16 pc cu pr. Brosnan Canadian Mines Ltd. Broulan Reef Mines Ltd. Brown-McDade Mines Ltd. Bruck Mills Ltd. Bruneau Mining Corporation 1970 Brunswick Mining & Smelting Corp. Ltd. Brycon Industries Ltd. Buchanan Mines Limited Buckeye Explorations Ltd. Budd Automotive Co. of Canada Ltd. Buffalo Gas & Oil Corporation Limited Buffalo Lake Mines Ltd. Bullion Mountain Mining Ltd. Bunker Hill Extension Mines Ltd. Burlington Mines & Enterprises Ltd. Burns Foods Limited Com Burnt Hill Tungsten & Metallurgical Ltd. Burrard Dry Dock Co. Ltd. Burrard Mortgage Investments Ltd. Burrex Mines Limited Bushnell Communications Limited Buval Executive Mining Industries Ltd. Cable Copper Mines Limited Cabot Corporation Cadillac Development Corp. Ltd. 6 1/2 pc cu B pr. Cadillac Explorations Ltd. CAE Industries Ltd. Calcorp Resources Ltd. Caledon Mountain Estates Ltd. Calgary Power Ltd. 4 pc cu pr. $5.00 cu pr. $5.40 cu cv pr. Calico Silver Mines Ltd. Caliper Developments Limited Calix Mines Ltd. Calmark Industries Ltd. Calmor Iron Bay Mines Ltd. Calta Mines Limited Calvert-Dale Estates Ltd. Calvert Gas & Oils Ltd. Cambridge Leaseholds Limited Cambridge Mines Limited Cambridge Mining Corp. Ltd. Camdeck Mines Ltd. Camflo Mines Limited Camindex Mines Ltd. Camlaren Mines Ltd. Cam Mines Ltd. Campbell Chibougamau Mines Ltd. Campbell Red Lake Mines Ltd. Campeau Corporation Ltd. Canada & Dominion Sugar Co. Ltd. Canada Cement Lafarge Ltd. 6 1/2 pc cu pr. Canada Forgings Ltd. Canada Geothermal Oil Ltd. Canada Machinery Corporation Ltd. Canada Malting Co. Limited B pr. Canada Northwest Land Limited Canada Packers Ltd. Canada Permanent Mortgage Corporation Canada Safeway Limited $4.40 cu pr. Canada Southern Petroleum Ltd. Canada Steamship Lines Ltd. Canada Tungsten Mining Corp. Ltd. Canada Western Cordage Company Ltd. Canadex Mining Corp. Ltd. Canadian Allied Property Investments Limited Canadian All-Metal Explorations Ltd. Canadian Arena Co. Canadian Arrow Mines Limited Canadian Barranca Corp. Ltd. Canadian Bonanza Petroleums Ltd. Canadian Breweries Limited $2.20 cu A pr. $2.65 cu B pr. Canadian Cablesystems Ltd. Canadian Canners Ltd. CI A. Canadian Converters Co. Ltd. CI B. Canadian Corporate Management Company Limited Canadian Curtiss-Wright Ltd. Canadian Delhi Oil Limited Canadian Equity & Development Company Limited Canadian Export Gas & Oil Ltd. Canadian Food Products Ltd. 6 pc cu 1st pr. 6 pc cv 2nd pr. Canadian & Foreign Securities Co. Ltd. Canadian Fortune Oil Limited Canadian Foundation Co. Ltd. 6 pc cu A pr. Canadian Gas & Energy Fund Ltd. Canadian General Electric Company Ltd. Cu cv pr. Canadian General Investments Ltd. Canadian General Securities Limited Canadian Goldale Corp. Ltd. Canadian Hidrogas Resources Ltd. Canadian Homestead Oils Limited Canadian Hydrocarbons Ltd. Canadian Imperial Bank of Commerce Canadian Industrial Gas & Oil Ltd. 5 1/2 pc cu cv pr. Canadian Industries Ltd. 7 1/2 pc cu pr. Canadian International Investment Trust Ltd. Canadian International Power Company Ltd. 5.20 pc 1965 cu pr. Canadian Interurban Properties Limited Canadian Jamieson Mines Ltd. Canadian Javelin Limited Canadian Keeley Mines Ltd. Canadian Leisure Industries Ltd. Canadian Lencourt Mines Ltd. Canadian Long Island Petroleums Ltd. Canadian Magnesite Mines Ltd. Canadian Malartic Gold Mines Ltd. Canadian Manoir Industries Limited Canadian Marconi Company Canadian Merrill Ltd. Canadian Nistro Mines Ltd. Canadian Occidental Petroleum Ltd. Canadian Pacific Investments Limited 4 3/4 pc cv A pr. Canadian Pacific Limited Ordinary 4 pc pr Canadian unit 4 pc pr United Kingdom unit 7 1/4 pc A pr. Canadian Provident, The Canadian Refractories Ltd. Canadian Reserve Oil & Gas Ltd. Canadian Reynolds Metals Co. Limited Canadian Salt Co. Ltd. Canadian Scenic Oils Ltd. Canadian Security Management Ltd. Canadian Southern Cross Mines (No Liability) Canadian Superior Oil Ltd. Canadian Tire Corp. Ltd. Canadian Tricentrol Oils Ltd. Canadian Union Insurance Company Canadian Utilities Limited 4 1/4 pc cu pr. Canadian Vickers Ltd. Canadian Wallpaper Manufacturers Ltd. Canadian Western Natural Gas Company Limited Canadore Mining & Development Corp. Can-American Natural Resources Ltd. Can-American Petroleums Ltd. Canarctic Resources Ltd. Can-Base Industries Ltd. Canbridge Oil Explorations Ltd. Can-Con Enterprises & Explorations Ltd. Candida Holdings Naamloze Vennootschap Candore Explorations Ltd. Candy Mines & Investments Ltd. Caneonti Mines Ltd. Cannon Mines Limited Canol Metal Mines Ltd. Canol Mines Limited Canron Ltd. Canterra Development Corp. Ltd. Cantol Ltd. Cantrend Industries Ltd. Canuc Mines Limited Canyon City Explorations Ltd. C-A Petroleums Ltd. Capital Diversified Industries Ltd. Capital Dynamics Ltd. Capital Estates Inc. Capri Mining Corporation Ltd. Caprive Industries & Resources Limited Captain International Industries Limited Captain Mines Limited Cara Operations Ltd. Caravelle Mines Ltd. Card Lake Copper Mines Ltd. Cardwell Resources Limited Cariboo Bell Copper Mines Limited Cariboo Gold Quartz Mining Co. Ltd. Carling Copper Mines Ltd. Carlson Mines Ltd. Carlton Cleaning Carousels Ltd. Carndesson Mines Ltd. Carnegie New Mining Corp Ltd. Carolin Mines Limited Carrier Shoe Co. Ltd. J. D. Carroll & Reed Ltd. Carter J. B. Ltd. Cartier Quebec Explorations Ltd. Casavant Brothers Limited Cascade Molybdenum Mines Ltd. Casino Silver Mines Ltd. Cassiar Asbestos Corporation Limited Cassiar Consolidated Mines Ltd. Cassidy’s Ltd. 6 1/4 pc cu cv A 1st pr. Castlebar Silver & Cobalt Mines Ltd. Castle Oil and Gas Limited C & C Yachts Ltd. CDP Computer Data Processors Ltd. CDRH Limited Cedarvale Mines Ltd. Celtic Minerals Ltd. Centex Mines Ltd. Central Dynamics Limited Central Fund of Canada Ltd. Central Ontario Savings & Loan Corp. Central Patricia Gold Mines Ltd. Central Trust Company of Canada, The Centura Mining Ltd. Cessland Corp. Ltd. CFTO-TV Limited CGC Mines Ltd. Chance Mining & Exploration Co. Ltd. Chapparal Mines Limited Charter Industries Ltd. Charter Oil Company Ltd. Chataway Exploration Co. Ltd. Chateau-Gai Wines Ltd. Chemalloy Mineral Ltd. Chemcell Ltd. $1.00 cu pr. $1.75 cu pt pr. Chesbar Iron Powder Limited Chesterville Mines Limited Chibex Mining Corp. Chib-Kayrand Copper Mines Ltd. Chibougamau Mining & Smelting Co. Inc. Chiboug Copper Corp Ltd. Chieftain Development Company Ltd. Chimo Gold Mines Ltd. Chinook Shopping Centre Limited Chipman Mining & Energy Corp. Ltd. Choiceland Iron Mines Ltd. Chromex Nickel Mines Ltd. Chromium Mining & Smelting Corporation Limited Chrysler Corporation Chukuni Gold Mines Ltd. CHUM Limited Churchill Copper Corporation Ltd. Cicada Mines Ltd. Cimco Limited Cincinnati-Porcupine Mines Ltd. Cinola Mines Ltd. Citadel Mines Ltd. Citex Mines Ltd. Cities Service Company City Associated Enterprises Ltd. Clairtone Sound Corporation Limited Clarepine Development Ltd. Clark Canadian Exploration Co. Clavos Porcupine Mines Ltd. Claw Lake Molybdenum Mines Ltd. Clearwater Mines Ltd. Clero Mines Ltd. Cleveland Mining & Smelting Co. Clicker Red Lake Mines Ltd. Clinger Gold Mines Ltd. Coast Copper Company Limited Coast Interior Ventures Coast Silver Mines Ltd. Cochenour Willans Gold Mines Ltd. Cochrane-Dunlop Hardware Ltd. Cockfield Brown & Company Limited Codville Distributors Ltd. Coin Canyon Mines Ltd. Coin Lake Gold Mines Ltd. Coleman Collieries Ltd. 6 pc 1st cv pr. Colleen Copper Mines Ltd. College Plumbing Supplies Ltd. Collingwood Terminals Ltd. Colonial Oil and Gas Ltd. Columbia Cellulose Company Limited $1.20 cu cv pr. Columbia Gas System Inc. Columbia Metals Corporation Ltd. Columbia Placers Ltd. Columbia River Mines Limited Columbiere Mines Ltd. Comaplex Resources International Ltd. Combined Engineered Products Limited $1.10 cu cv pr. Combined Insurance Co. of America Combined Larder Mines Ltd. Combined Metal Mines Ltd. Comet Industries Ltd. Cominco Ltd. Cominga Compagnie Minière de l’Ungava Commerce Nickel Mines Ltd. Commercial Finance Corporation Limited Commercial Holdings & Metals Corp. Commercial Life Assurance Co. of Canada Commercial Oil & Gas Limited Commodore Business Machines (Canada) Limited Commonwealth Holiday Inns of Canada Ltd. Compton Exploration Ltd. Computel Systems Ltd. Computrex Centres Ltd. Comstock Keno Mines Ltd. Comtech Group International Limited Concorde Explorations Ltd. Concourse Building Ltd. Condor Mines Limited Conduits National Co. Ltd. Congress Mining Corporation Limited Coniagas Mines Ltd. Conigo Mines Ltd. Conoco Silver Mines Ltd. Con Quest Exploration Ltd. Consolidated Ad Astra Minerals Ltd. Consolidated Bathurst Limited 1968 Wt. Consolidated Bellekemo Mines Ltd. Consolidated Brewis Minerals Ltd. Consolidated Buffalo Red Lake Mines Ltd. Consolidated Building Corp. Ltd. Consolidated Callinan Flin-Flon Mines Limited Consolidated Canadian Faraday Ltd. Consolidated Canorama Exploration Ltd. Consolidated Daering Mining Inc. Consolidated Developments Ltd. Consolidated Diversified Standard Securities Ltd. $2.50 1st pr. Consolidated Dolsam Mines Ltd. Consolidated Durham Mines & Resources Ltd. Consolidated East Crest Oil Company Limited Consolidated Fenimore Iron Mines Ltd. Consolidated Gem Exploration Ltd. Consolidated Harpers Malartic Gold Mines Ltd. Consolidated Imperial Minerals Ltd. Consolidated Manitoba Mines Ltd. Consolidated Marbenor Mines Ltd. Consolidated Marcus Gold Mines Ltd. Consolidated Mogador Mines Ltd. Consolidated Monpas Mines Ltd. Consolidated Montclerg Mines Ltd. Consolidated Morrison Explorations Ltd. Consolidated Negus Mines Ltd. Consolidated Nicholson Mines Ltd. Consolidated Northern Exploration Ltd. Consolidated Novell Mines Ltd. Consolidated Oil & Gas Inc. Consolidated Panther Mines Ltd. Consolidated Pershcourt Mining Ltd. Consolidated Professor Mines Ltd. Consolidated Proprietary Mines Holdings Ltd. Consolidated Prudential Mines Ltd. Consolidated Rambler Mines Ltd. Consolidated Rexspar Minerals & Chemicals Limited Consolidated Ribago Mines Ltd. Consolidated Shunsby Mines Ltd. Consolidated Standard Mines Ltd. Consolidated Textile Mills Ltd. Consolidated Theatres Ltd. Consolidated Vigor Mines Ltd. Consolidated Virginia Mining Corp. Consolidated West Petroleum Limited Consumers Distributing Company Limited Consumers Gas Company 5 1/2 pc cu B pr. Consumers Glass Co. Ltd. Contact Ventures Ltd. Continental Can Company Inc. Continental Cinch Mines Ltd. Continental Copper Mines Ltd. Continental McKinney Mines Ltd. Continental Potash Corporation Ltd. Continental Research & Development Ltd. Controlled Foods International Ltd. Conuco Limited Conwest Exploration Co. Ltd. Cooper of Canada Ltd. Copconda Mines Ltd. Copeland Process Ltd. Cop-Mac Mines Ltd. Copp-Clark Publishing Co. Ltd. Coppercorp Limited Copper Corp of America Copperfields Mining Corp. Ltd. Copper Giant Mining Corporation Ltd. Copper Horn Mining Ltd. Copper Lake Explorations Ltd. Copperline Mines Limited Copper-Lode Mines Ltd. Copper-Man Mines Ltd. Copper Pass Mines Ltd. Copper Queen Explorations Limited Copper Ridge Mines Ltd. Copperstream-Frontenac Mines Ltd. Copperville Mining Corp. Ltd. Corby Distilleries Limited Corgemines Limited Cornat Industries Limited Coronation Allied Industries Ltd. Coronation Credit Corp Ltd. Coronation Credit Corp. Ltd. 6 pc cu cv A pr. Wt. series 2. Coronet Mines Limited Corporate Foods Ltd. $2.75 A cu pr. Corporate Properties Ltd. Corporation d’expansion financière Coseka Resources Limited Cosmic Nickel Mines Limited Cosmos Imperial Mills Limited Costain Richard Canada Ltd. Coulee Lead & Zinc Mines Ltd. Courier Explorations Ltd. Courvan Mining Co. Ltd. Cove Uranium Mines Ltd. Cowl Limited Crackingstone Mines Ltd. Craibbe Fletcher Gold Mines Ltd. Craig Bit Co. Ltd., The Craigmont Mines Ltd. Crain Limited, R. L. Crawford Allied Industries Ltd. Cream Silver Mines Limited Creative Patents & Products Limited Credit Foncier Franco-Canadien Credo Mining Limited Cree Lake Mining Crestbrook Forest Industries Ltd. Crestland Mines Ltd. Crest Ventures Ltd. Crestwood Kitchens Ltd. Cresus Mining Limited Creswell Mines Ltd. Cross Co. Ltd., W. B. Crowbank Mines Ltd. Crownbridge Copper Mines Ltd. Crown Cork & Seal Co. Ltd. Crown Life Insurance Company Crown Trust Company Crown Zellerbach Canada Ltd. Crows Nest Industries Ltd. Croydon Mines Ltd. Croydon Rouyn Mines Ltd. Crusade Petroleum Corp. Ltd. Crush International Ltd. Cultus Exploration Ltd. Cumex Mines Ltd. Cummings Properties Limited Cumont Mines Ltd. Cunningham Drug Stores Limited Cuvier Mines Ltd. Cygnus Corporation Ltd. Dairy Barn Stores of Canada Limited Dale-Ross Holdings Ltd. Dalex Co. Limited Dalex Mines Limited Dalfen’s Ltd. Dalhousie Oil Co. Ltd. Daniel Diversified Ltd. Dankoe Mines D’Aragon Mines Ltd. Darkhawk Mines Limited Darsi Mines Limited Dasson Copper Corp. Ltd. Dataline Systems Ltd. Datapro Ltd. Datateck Systems Ltd. Dauphin Iron Mines Ltd. David Minerals Limited Davis Distributing & Vending Ltd. Davis-Keays Mining Co. Ltd. Dawson Developments Ltd. Debenture & Securities Corp. of Canada Debhold (Canada) Limited 6 1/4 pc cu B pr. Decca Resources Limited Deerhorn Mines Ltd. Dejour Mines Ltd. Delahey Consolidated Nickel Mines Limited D’Eldona Gold Mines Ltd. Delhi Pacific Mines Ltd. Delkirk Mining Ltd. Delmico Mines Ltd. Delta-Benco Delta Hotels Ltd. 6 pc cl A pr. Rt. Delta Minerals Corp. Deltan Corp. Ltd. Delta Petroleum Corporation Ltd. Deltec Panamerica (Sociedad Anonima) Demsey Mines Ltd. Denison Mines Ltd. Derby Mines Ltd. Derlak Red Lake Gold Mines Ltd. Deseret Peak Mines Ltd. Desjardins Mines Ltd. Despina Gold Mines Ltd. Destorbelle Mines Ltd. Devil’s Elbow Mines Ltd. Dickenson Mines Ltd. Dictator Mines Ltd. Discovery Mines Ltd. Dison International Ltd. Distillers Corporation-Seagrams Ltd. District Trust Co. Diversified Credit Corp. Ltd. Dixie-Carolina Mining Corp. Ltd. DLP Diversified Ltd. Dog’n Suds Food Services Ltd. Dolly Varden Mines Ltd. Doman Industries Ltd. 6 1/2 pc cu cv A pr. Domco Industries Limited Dome Mines Ltd. Dome Petroleum Ltd. Dominion & Anglo Investment Corporation Ltd. Dominion Bridge Co. Ltd. Dominion Citrus & Drugs Ltd. Dominion Coal Co. Ltd. Dominion Corset Co. Ltd. Dominion Dairies Ltd. Dominion Explorers Ltd. Dominion Fabrics Limited Cl. A cu pt pr. Dominion Foundries & Steel Ltd. 4 3/4 pc cu A pr. Dominion Glass Company Limited 7 pc cu cv pr. Dominion Jubilee Corp. Ltd. Dominion Leaseholds Ltd. Dominion Life Assurance Co. Dominion Lime Limited Dominion Magnesium Ltd. Dominion of Canada General Insurance Co. Dominion-Scottish Investments Ltd. Dominion Stores Ltd. Dominion Textile Limited Domtar Limited Donalda Mines Ltd. Donlee Manufacturing Industries Limited Donna Mines Limited Donohue Company Limited 6 1/4 pc cu pr. Donrand Mines Ltd. Don-X Mines Ltd. Doral Mining Exploration Ltd. Dorion Red Lake Mines Ltd. Dorita Silver Mines Ltd. Douglas Leaseholds Limited Dove Lake Mines Inc. Dover Industries Ltd. DRG Limited Drummond Die & Stamping Co. Ltd. Drummond Welding & Steel Works Ltd. Dubuisson Goldfields Ltd. Ducros Mines Ltd. Duke Mining Company Limited Dumagami Mines Limited Dumont Nickel Corporation Duncan Range Iron Mines Ltd. Dundee Mines Ltd. Dunraine Mines Ltd. Dunterra Mines Ltd. Dunvegan Mines Ltd. Dupont of Canada Ltd. Duport Mining Co. Ltd. Dupuis Frères Limited Dustbane Enterprises Ltd. Dusty Mac Mines Limited Duvan Copper Co. Ltd. Duvex Oils & Mines Ltd. Dylex Diversified Limited Cl A pt pr. Dynacore Enterprises Ltd. Dynaco Resources Ltd. Dynalta Oil & Gas Co. Ltd. Dynamic Mining Exploration Ltd. Dynamic Petroleum Products Ltd. Dynamo Mines Limited Dynasty Exploration Ltd. Eagle Gold Mines Ltd. Eagle Industries Limited Eagle River Mines Limited Earlcrest Resources Ltd. Early Bird Mines Ltd. East Amphi Gold Mines Ltd. East Bay Gold Ltd. Eastern Bakeries Ltd. Eastern Canada Savings & Loan Company Eastern Utilities Limited 5 1/2 pc cu. pr. Eastgate East Lun Gold Mines Ltd. East Malartic Mines Ltd. Eastmont Larder Lake Gold Mines Ltd. Eastmont Silver Mines Ltd. Eastrock Explorations Ltd. East Sullivan Mines Ltd. East Ventures Ltd. Eastview Mines Ltd. Eaton Corporation Echo Bay Mining Ltd. Economic Investment Trust Ltd. 5 pc cu A pr. Eddy Match Co. Ltd. Edmonton Concrete Block Co. Ltd. Edmonton International Speedway Ltd. EDP Industries Limited 5 pc cu cv A pr. Ego Mines Ltd. El Bonanza Mining Corp Ltd. El Coco Explorations Ltd. Electrohome Limited Electro-Knit Fabrics (Canada) Ltd. Electronic Associates of Canada Limited E-L Financial Corporation Limited A cv pr. Elk Creek Waterworks Co. Ltd. Elmac Malartic Mines Ltd. El Paso Natural Gas Company Embassy Petroleums Ltd. Emco Limited Emperor Mines Ltd. Empire Life Insurance Co., The Empire Metals Corporation Ltd. Empire Minerals Inc. Enamel & Heating Products Limited Cl. B. Enex Mines Ltd. Entarea Management Ltd. Equatorial Resources Limited Ericksen-Ashby Mines Ltd. Erie Diversified Industries Ltd. Cl. A. ERI Explorations Inc. Eskimo Copper Mines Ltd. Essex Packers Limited 5 pc cu 1st pr. Ethel Copper Mines Ltd. Evangeline Savings & Mortgage Co. Evenlode Mines Ltd. Excellence Life Insurance Co. (The) Excelsior Life Insurance Co. Exeter Mines Ltd. Expo Iron Limited Expo Ungava Mines Limited Exquisite Form Brassiere (Canada) Limited Extendicare (Canada) Ltd. Fab Metal Mines Ltd. Fairborn Mines Ltd. Fairway Explorations Ltd. Falaise Lake Mines Ltd. Falconbridge Nickel Mines Ltd. Falcon Explorations Ltd. Fallinger Mining Corporation Family Life Assurance Co. 50 pc paid Fannex Resources Ltd. Fanny Farmer Candy Shops Inc. Far East Minerals Ltd. Farmers & Merchants Trust Co. Ltd. Farwest Mining Ltd. Fathom Oceanology Ltd. Fawn Bay Development Ltd. Federal Diversiplex Ltd. Federal Grain Limited Federated Mining Corp. Ltd. Federated Mining Corp Ltd. Fidelity Mining Investments Ltd. Fidelity Mortgage & Savings Corporation Fidelity Trust Co., The Fields Stores Limited Financial Collection Agencies Ltd. Financial Life Assurance Co. Finlayson Enterprises Ltd. Finning Tractor & Equipment Company Limited First City Financial Corp. Ltd. First Maritime Mining Corp Ltd. First National City Corp. First National Uranium Mines Limited First Orenda Mines Ltd. Fiscal Investments Ltd. Fittings Ltd. Five Star Petroleum and Mines Ltd. Flagstone Mines Limited Fleet Manufacturing Ltd. Fleetwood Corporation Flemdon Ltd. Fleming Mines Ltd. Flin Flon Mines Ltd. Flint Rock Mines Ltd. Foley Silver Mines Ltd. Fontana Mines 1945 Ltd. Ford Motor Company Ford Motor Co. of Canada Ltd. Forest Kerr Mines Ltd. Fort Norman Explorations Inc. Fort Reliance Minerals Ltd. Fort St. John Petroleums Ltd. Fortune Channel Mines Ltd. Fosco Mining Ltd. Founders Group Fourbar Mines Limited 4-F Foods Limited Four Seasons Hotels Ltd. Four Seasons Mining & Resources Ltd. Fox Lake Mines Ltd. FPE Pioneer Electric Ltd. 5 1/2 pc cu cv A pr. Francana Oil & Gas Ltd. Fraser Companies Limited Frebert Mines Ltd. Freehold Gas & Oil Limited Freiman Ltd., A. J. Frobex Limited Frontier Explorations Limited Fruehauf Trailer Company of Canada Limited Fulcrum Investments Co. Ltd. Fundy Chemical Corporation Ltd. Fundy Exploration Ltd. Futurity Oils Limited Galex Mines Limited Galt Malleable Iron Limited Gan Copper Mines Ltd. Ganda Silver Mines Ltd. Garrison Creek Consolidated Mines Ltd. Gary Mines Ltd. Gaspé Copper Mines Ltd. Gaspé Park Mines Ltd. Gaspé Quebec Mines Ltd. Gaspesie Mining Co. Limited Gaspex Mines Ltd. Gateford Mines Ltd. Gateway Uranium Mines Ltd. Gaz Métropolitain Inc. 5.40 pc cu pr. 1963 wt. 1966 wt. G & B Automated Equipment Limited General Bakeries Ltd. General Developments Corporation General Distributors of Canada Ltd. General Dynamics Corporation General Investment Corporation of Quebec General Motors Corporation General Products Mfg. Corporation Limited General Resources Ltd. General Trust of Canada Genesco Inc. Genstar Limited Geoquest Resources Ltd. Georgia Lake Mines Ltd. Gesco Distributing Limited Getty Oil Company Giant Explorations Ltd. Giant Mascot Mines Ltd. Giant Metallics Mines Ltd. Giant Reef Petroleums Limited Giant Yellowknife Mines Ltd. Gibbex Mines Ltd. Gibraltar Mines Ltd. Gibson Mines Ltd. Glenburk Mines Ltd. Glen Copper Mines Ltd. Glendale Mobile Homes Ltd. Glengair Group Limited 6 pc cv B pr. Cl A wt. Cl B wt. Unit Glenlyon Mines Limited Goderich Elevator & Transit Co. Ltd. Gogama Minerals Ltd. Golconda Mining Exploration Goldcrest Products Ltd. Golden Age Mines Ltd. Golden Gate Explorations Ltd. Golden Harker Explorations Ltd. Golden Shaft Mines Ltd. Golden Spike Western Petroleums Limited Golden West Resources Limited Goldex Mines Ltd. Gold Hawk Exploration Ltd. Gold Hawk Mines Ltd. Goldray Mines Ltd. Goldrim Mining Company Ltd. Gold River Mines Ltd. Goldstar Explorations & Investments Limited Golsil Mines Ltd. Goodyear Tire & Rubber Co. of Canada Ltd. Gordon-Lebel Mines Ltd. Gordon Mackay & Stores Ltd. Governor Gold Mines Ltd. Gowganda Silver Mines Gradore Mines Ltd. Grafton Fraser Limited Grafton Group Ltd. Gramara Mercantile Corp. Ltd. Grand Bahama Developments Co. Ltd. Grandex Exploration and Investment Co. Ltd. Grandroy Mines Ltd. Granduc Mines Ltd. Grandview Mines Ltd. Granisle Copper Limited Granite Club Ltd. Granite Mountain Mines Ltd. Grasset Lake Mines Ltd. Gray Industries Inc. Great Bear Silver Mines Ltd. Great Britain & Canada Investments Ltd. 5 1/4 pc cu pr. Great Canadian Oil Sands Limited Great Eagle Explorations & Holdings Ltd. Great Eastern Resources Canada Ltd. Great Lakes Nickel Ltd. Great Lakes Paper Company Limited Great Lakes Power Corporation Ltd. Great Lakes Silver Mines Ltd. Great National Land & Investment Corp. Ltd. Great Northern Capital Corp. Ltd. Great Northern Gas Utilities Ltd. Great Northern Petroleums & Mines Ltd. Great Pacific Industries Ltd. Great Plains Development Co. of Canada Ltd. Great Slave Mines Ltd. Great West International Equities Ltd. Great West Life Assurance Co. Great West Mining & Smelting Corp. Ltd. Great West Steel Industries Ltd. Greb Industries Limited Green Coast Resources Limited Green Eagle Mines Ltd. Greenfields Development Corporation Ltd. Green Point Mines Ltd. Grenache Inc. Greyhound Computer of Canada Ltd. Greyhound Lines of Canada Ltd. Grissol Foods Ltd. Grouse Mountain Resorts Ltd. 6 pc cv pr. Growers Wine Co. Ltd. GSW Limited Guarantee Co. of North America, The Guaranty Trust Company of Canada Guardian Growth Fund Ltd. Guardian Management Corporation Ltd. Gubby Mines Ltd. Guichon Mine Ltd. Gui-Por Uranium Mines & Metals Ltd. Gulch Mines Ltd. Gulf Lead Mines Ltd. Gulf Oil Canada Limited Gulf Oil Corporation Gulf Titanium Ltd. Gunn Mines Ltd. Hahn Brass Limited 5 pc 1st pr. Halifax Developments Limited Hallnor Mines Ltd. Halren Mines Ltd. Hambro Corp. of Canada Ltd. Hamilton Group Limited, The Hamilton Harvey Ltd. Hamilton Trust & Savings Corp. Voting trust com. 7 pc cu A Pr. Hammond Investment Corporation Hand Chemical Industries Limited Pt pr. Handy Andy Company Hanna Gold Mines Ltd. Hansa Explorations Ltd. Hanson Mines Ltd. Hardee Farms International Ltd. 6 1/2 pc A pr. Harding Carpets Ltd. Hardwicke Investment Corporation Ltd. Harlequin Enterprises Ltd. Harris & Sons Ltd., J. Hart River Mines Ltd. Harvest Petroleums Ltd. Harvey’s Foods Ltd. Harvey Woods Ltd. Hawker Industries Ltd. Hawker Siddeley Canada Ltd. 5 3/4 pc cu cv pr. Hayes-Dana Limited Headvue Mines Ltd. Headway Corporation Limited Headway Red Lake Gold Mines Ltd. Hearne Coppermine Explorations Ltd. Heath Gold Mines Ltd. Hedman Mines Ltd. Hertz Industries Ltd. Hewbet Mines Ltd. Hibernia Mining Co. Ltd. Highland-Bell Limited Highland Chief Mines Ltd. Highland Lodge Mines Ltd. Highland Mercury Mines Ltd. Highland Queen Mines Ltd. Highland Queen Sportswear Ltd. Highland Valley Mines Limited Highmont Mining Corporation Ltd. Highpoint Mines Limited Hi-Lite Uranium Explorations Ltd. Hinde & Dauch Ltd. H & M Tax Savers Ltd. Hobrough Ltd. Hogan Mines Ltd. Holberg Mines Limited Hollinger Mines Ltd. Hollingsworth Mines Ltd. Home Oil Co. Ltd. Home Smith International Ltd. Home Supermarket Ltd. Honda Mining Co. Ltd. Horne Fault Mines Ltd. Horne & Pitfield Foods Ltd. Hotstone Minerals Ltd. House of Braemore Furniture Ltd. Houston Oils Limited Howard Smith Paper Mills Ltd. $2.00 cu pr. Howden & Company Limited, D.H. Hubbard Dyers Limited Hubert Lake Ungava Nickel Mines Ltd. Hub Mining Exploration Ltd. Hucamp Mines Ltd. Huclif Porcupine Mines Ltd. Hudson Bay Mines Ltd. Hudson Bay Mining & Smelting Co. Ltd. Hudson Bay Mountain Silver Mines Ltd. Hudson’s Bay Company Hudson’s Bay Oil & Gas Co. Ltd. Hughes-Owens Co. Ltd. 6.40 pc cu pr. Hugh-Pam Porcupine Mines Ltd. Humlin Red Lake Mines Ltd. Hummingbird Mines Ltd. Hunch Mines Ltd. Hunter Basin Mines Ltd. Hunter Douglas Limited Huron Bruce Mines Limited Huron & Erie Mortgage Corporation, The Husky Oil Ltd. 6 pc cu B pr. D wt. E wt. Hydra Explorations Ltd. Hy’s of Canada Limited Hytec Electronics Ltd. I.A.C. Limited Ibes International Ltd. Ibsen Cobalt Silver Mines Ltd. Ice Station Resources Ltd. Ideal Bay Explorations Ltd. Imasco Limited Imperial General Properties Limited Imperial Life Assurance Co. of Canada Imperial Marine Industries Ltd. Imperial Metals and Power Ltd. Imperial Oil Limited Income Disability & Reinsurance Co. of Canada Indal Canada Limited Independent Mining Corp. Ltd. Index Mines Limited Indian Mountain Metal Mines Ltd. Indusmin Limited Industrial Adhesives Limited Industrial Growth Management Limited Industrial Life Insurance Company, The Ingersoll Machine & Tool Company Limited Inglis Co. Ltd., John Initiative New Exploration Ltd. Inland Chemicals Canada Ltd. Inland Copper Ltd. Inland Natural Gas Co. Ltd. Inland Natural Cas Co. Ltd. In-Place Electronics Limited 7 pc cv pr. Inqua Resources Ltd. Integrated Wood Products Ltd. Inter-City Gas Limited 6 1/2 pc cu A 2nd pr. B 2nd pr. 1971 wt. Inter-City Manufacturing Ltd. Interior Breweries Limited Intermetco Ltd. International Altas Development & Exploration Ltd. International Bibis Tin Mines Ltd. International Bond and Equity Corporation Ltd. International Bornite Mines Ltd. International Business Machines Corp. International Copper Corp Ltd. International Halliwell Mines Ltd. International Hydrodynamics Company Ltd. B Wt. International Hydrodynamics Company Ltd International Kenville Gold Mines Ltd. International Land Corporation Ltd. International Mariner Resources Ltd. C wt. International Minerals & Chemical Corp. (Canada) Ltd. International Mogul Mines Ltd. International Nickel Co. of Canada Ltd. International Norvalie Mines Ltd. International Obaska Mines Ltd. International Paper Co. International Space Modules Ltd. Cl B International Systcoms Ltd. International Utilities Corporation Cl A cv. $1.32 cu cv pr. International Visual Systems Ltd. Interplex S.P.A. Industries Ltd. Interpool International Ltd. Interprovincial Allied Properties Ltd. Inter-Provincial Diversified Holdings Limited Interprovincial Pipeline Co. Interprovincial Steel & Pipe Corp Ltd. Inter-Rock Oil Co. of Canada Limited Inter-Tech Development & Resources Ltd. Investment Foundation Ltd. Investors Group, The 5 pc cu cv pr. Invicta Explorations, Ltd. Ionarc Smelters Limited I.O.S. Limited Irish Copper Mines Ltd. Iron Bay Trust Iron City Mines Ltd. Iron Cliff Mines Ltd. Ironco Mining & Smelting Ltd. Iroquois Petroleum Co. Ltd. Irwin Toy Ltd. Isec Canada Ltd. Iskut Silver Mines Ltd. Island Telephone Co. Ltd. ISO Mines Ltd. Israel Continental Oil Co. Ltd. I.T.L. Industries Limited 6 1/2 pc cu cv pr. Ivaco Industries Limited IWC Industries Limited Jackpot Copper Mines Limited Jack Waite Mining Co. Jacobus Mining Corp. Ltd. Jacola Mines Ltd. Jagor Resources Limited Jahalla Lake Mines Ltd. Jamaican Mining Ltd. Jamaica Public Service Co. Ltd. Jameland Mines Ltd. James Bay Mining Corp. Jamex Explorations Limited Janus Explorations Ltd. Jason Explorers Ltd. Jaye Explorations Ltd. J B Automatik Ltd. Jean Lake Lithium Mines Ltd. Jelex Mines Ltd. Jenkins Bros. Ltd. Jericho Mines Ltd. Jersey Consolidated Mines Ltd. Jespersen-Kay Systems Ltd. Joburke Gold Mines Ltd. Jockey Club Ltd., The 5.60 pc cu 2nd pr. Johnson & Johnson Joliet-Quebec Mines Ltd. Jolly Jumper Products of America Ltd. Jonsmith Mines Ltd. Jorex Limited Joutel Copper Mines Ltd. Jowsey Denton Gold Mines Ltd. Joy Mining Ltd. Juma Mining & Exploration Ltd. Juniper Mines Ltd. Kaiser Resources Ltd. Kalco Valley Mines Ltd. Kallio Iron Mines Ltd. Kal Resources Ltd. Kamad Silver Company Ltd. Kamco Developments Ltd. Kam-Kotia Mines Ltd. Kamloops Copper Consolidated Ltd. Kappa Explorations Ltd. Kaps Transport Limited Kardar Canadian Oils Ltd. KB Mining Co. Ltd. Keeprite Products Ltd. C1 A. Kelglen Mines Ltd. Kellcam Explorations Ltd. Kelly-Desmond Mining Corp. Ltd. Kelly-Deyong Sound Corporation Ltd. Kelly Douglas & Co. Ltd. C1 A cu pr. Kelsey-Hayes Canada Ltd. Keltic Mining Corp. Ltd. Kelver Mines Limited Kelvinator of Canada Limited Kendon Copper Mines Ltd. Kenogamisis Gold Mines Ltd. Kenting Limited Kenwest Mines Ltd. Kerr Addison Mines Ltd. Kewagama Gold Mines Que. Ltd. Key-Anacon Mines Ltd. Key Industries Limited Keystone Business Forms Limited Key-Way Mining Co. Ltd. Kidd Copper Mines Ltd. Kiena Gold Mines Ltd. Kilarney Gas & Oil Development Co. Ltd. Kilembe Copper Cobalt Ltd. Kimberlite Mining Corp. Ltd. King Island Mines Ltd. King Kirkland Gold Mines Ltd. Kingswood Explorations Ltd. Kirkland Gateway Gold Mines Ltd. Kirkland Minerals Corp. Ltd. Kismet Mining Corporation Ltd. Knobby Lake Mines Limited Knogo Corp. Ltd. Koffler Stores Ltd. 7pc A 1st pr. Komo Explorations Ltd. Kontiki Lead & Zinc Mines Ltd. Kopan Developments Ltd. KSF Chemical Processes Ltd. 1968 wt. K. T. Mining Ltd. Kukatush Mining Corp. (1960) Ltd. Kupfer Mines Ltd. Labatt Limited, John Cv A pr. Labrador Mining & Exploration Co. Ltd. Lacanex Mining Company Limited Laddie Gold Mines Ltd. Laduboro Oil Ltd. Laidlaw Motorways Ltd. Laiteries Leclerc Inc., Les Lake Beaverhouse Mines Limited Lake Dufault Mines Ltd. Lake Erie Gas Ltd. Lake Expanse Gold Mines Ltd. Lakehead Mines Ltd. Lake Kozak Mines Ltd. Lakeland Natural Gas Ltd. Lakelyn Mines Ltd. Lake Ontario Cement Ltd. Lake-Osu Mines Ltd. Lake Shore Mines Ltd. Lakeside Oil & Gas Ltd. La Luz Mines Ltd. Lambert Inc., Alfred Lambton Loan & Investment Co. Lancer of Canada Limited Langis Silver & Cobalt Mining Co. Ltd. Larandona Mines Ltd. Larchmont Mines Ltd. Largo Mines Ltd. Laroma Midlothian Mines Ltd. Laronge Mining Ltd. Larum Mines Ltd. Lassie Red Lake Gold Mines Ltd. Lassiter Petroleums Ltd. Laura Mines Limited Laura Secord Candy Shops Ltd. Laurentide Financial Corp. Ltd. $1.25 cu pr. $2.00 cu cv 2nd pr. La Verendrye Management Corp. Lawson & Jones Ltd. Leamoor Minerals Ltd. Lederic Mines Ltd. Leeds Metals Co. Ltd. Leemac Mines Ltd. Leigh Instruments Limited $2.60 cu cv A pr. Leisure World Nursing Homes Ltd. Leitch Mines Ltd. Lemtex Developments Limited Lennie Red Lake Gold Mines Ltd. Leon’s Furniture Ltd. Lequer Mines & Investments Ltd. Levack Mines Ltd. Levy Industries Ltd. Lewes River Mines Ltd. Lewis Red Lake Mines Ltd. Lexington Mines Limited Liberian Iron Ore Limited Life Investors Ltd. Lincoln Trust & Saving Company Lingside Copper Mining Co. Limited Linland Equipment Sales Ltd. Lion Mines Ltd. Lion Nickel Mines of Canada Ltd. Lithium Corporation of Canada Ltd. Little Hatchet Minerals Ltd. Little Long Lac Mines Limited Livingston Industries Ltd. Lobell Mines Ltd. Loblaw Companies Limited $2.40 cu pr. Loblaw Groceterias Co. Limited $1.50 cu A pr. $1.60 cu B pr. $6.60 2nd pt pr. Loblaw Inc. Locana Corporation Ltd. Lochaber Oil Corp. Ltd. Lochiel Explorations Ltd. Lodestar Mines Ltd. Loeb Ltd., M. Logistec Corp. Loisan Red Lake Gold Mines Ltd. London Life Insurance Co. London Pride Silver Mines Ltd. Lone Creek Mines Ltd. Lord Simcoe Hotel Ltd. Lori Explorations Ltd. Lornex Mining Corporation Ltd. Lost River Mining Corp. Ltd. Louanna Gold Mines Ltd. Louisbourg Mines Ltd. Louisiana Land & Exploration Co. Louvicourt Goldfield Corp. Lower Valley Mines Ltd. Lucky Strike Mines Limited Lundor Mines Ltd. Luxor Red Lake Mines Ltd. Lynbar Mining Corp. Ltd. Lyndhurst Mining Co. Ltd. Lynx-Canada Explorations Limited Lynx Yellowknife Gold Mines Ltd. Lytton Mineral Limited Macandrews Red Lake Gold Mines Ltd. Macdonald Mines Ltd. Maclan Exploration Limited Maclaren Power & Paper Co. 1 pc pr. Maclean-Hunter Cable TV Limited 7 pc cu A pr. Maclean-Hunter Limited Macmillan Bloedel Limited 3 pc pr. Madeleine Mines Ltd. Madill Ltd., S. Madison Oils Ltd. Madsen Red Lake Gold Mines Ltd. Magadyne Industries Limited Magna Electronics Corp. Ltd. Magnasonic Canada Ltd. Magnetics International Ltd. Magnum Fund Ltd. Magoma Mines Ltd. Maher Shoes Limited Main Oka Mining Corp. Majestic Explorations Ltd. Major Holdings & Development Ltd. Malartic Goldfields Quebec Ltd. Malartic Hygrade Gold Mines Ltd. Mandarin Mines Ltd. M and M Porcupine Gold Mines Ltd. Maneast Uranium Corp. Ltd. Manhattan Continental Development Corporation Manitou-Barvue Mines Ltd. Manix Mining Co. Ltd. Manoka Mining & Smelting Co. Ltd. Manor Mines Ltd. Manterre Gold Mines Ltd. Maple Leaf Gardens Ltd. Maple Leaf Mills Limited 5 1/2 pc cl B pr. Maple Leaf Mines Ltd. Maracambeau Mines Ltd. Mara Lake Mines Ltd. Marchant Mining Co. Ltd. Marche Union Inc. Mareast Explorations Ltd. Margaret Red Lake Mines 1940 Ltd. Maria Mining Corp. Ltd. Marigot Investments Ltd. Mariner Mines Limited Maritime Electric Co. Ltd. Maritime Telegraph & Telephone Co. Ltd. Markborough Properties Ltd. Marlex Enviro-Systems & Resources Ltd. Marshall Boston Iron Mines Ltd. Marshall Creek Copper Co. Ltd. Martin-Bird Gold Mines Ltd. Martin-McNeely Mines Ltd. Marval Mines Ltd. Marvens Ltd. Massey-Ferguson Limited Massval Mines Limited Master Metal Corp. Mining Ltd. Mastermet Cobalt Mines Ltd. Matachewan Consolidated Mines Ltd. Mate Yellowknife Gold Mines Limited Matrix Exploration Limited Mattagami Lake Mines Ltd. Matt Berry Mines Ltd. Maverick Mines & Oils Limited Maverick Mountain Resources Ltd. Maybrun Mines Ltd. Maycor Mines Ltd. Mayfair Molly Mines Ltd. Mayfield Explorations Ltd. Maylac Gold Mines Ltd. McAdam Mining Corp. Ltd. McCarthy Milling Co. Ltd. McCoy Lake Mines Limited McCuaig Red Lake Gold Mines Ltd. McFinley Red Lake Gold Mines Ltd. McIntyre-Porcupine Mines Ltd. McLaughlin Associates Ltd., S.B. McManus Red Lake Gold Mines Ltd. McMarmac Red Lake Gold Mines Ltd. McVittie Graham Mining Co. Ltd. Medipack Corp. Ltd. Melchers Distilleries Limited Melton Real Estate Ltd. Menorah Mines Ltd. Mentor Exploration & Development Co. Ltd. MEPC Canadian Properties Ltd. Mercuria Industries Limited Mercury Explorations Limited Merged Mining Enterprises Ltd. Meridian Mining & Exploration Co. Ltd. Merland Explorations Limited Meta Uranium Mines Ltd. Meteor Mining Company Limited Metropolitan Stores of Canada Ltd. 6 1/2 pc cu 1961 pr. $1.30 cu 1967 pr. Metropolitan Trust Company, The Mexican Light & Power Co. Limited Mextor Minerals Ltd. MGF Management Ltd. Mica Company of Canada Ltd. Microsystems International Ltd. Midcon Oil & Gas Limited Middle Bay Mines Ltd. Midepsa Industries Ltd. Mid Industries & Explorations Ltd. Midland Nickel Corp. Ltd. Midland Petroleums Limited Mid Patepedia Mines Ltd. Midrim Mining Co. Ltd. Mid-West Mines Ltd. Mija Mines Limited Miles Red Lake Mines Ltd. Milestone Exploration Ltd. Mill City Petroleums Ltd. Millerfields Silver Corp. Ltd. Milton Brick Company Ltd. Mindustrial Corporation Ltd. Minedel Mines Ltd. Mineral Exploration Corp. Ltd. Mineral Mountain Mining Co. Ltd. Mineral Resources International Ltd. Mines Iberville Ltée Minex Development Ltd. Min-Ore Mines Ltd. Mirado Nickel Mines Ltd. Miro Mines Ltd. Miron Company Ltd. Mistango River Mines Ltd. Mistassini Uranium Mines Ltd. Mitchell Co. Ltd., Robert M L W Worthington Limited Mobilex Development Corporation Limited Mobil Oil Corporation Mogar Mines Ltd. Mohawk Industries Ltd. Mohawk Mines Ltd. Mollie Mac Mines Ltd. Molson Industries Ltd. Cl C. Molybdenite Corp of Canada Limited Molymine Exploration Ltd. Moly-Ore Mines Ltd. Monarch Gold Mines Ltd. Monarch Investments Ltd. Monarch Life Assurance Monarch Metal Mines Ltd. Monenco Ltd. Moneta Porcupine Mines Ltd. Monpre Iron Mines Ltd. Monteagle Minerals Ltd. Monterey Petroleum Corporation Mont Laurier Uranium Mines Ltd. Montreal City & District Savings Bank Montreal Refrigerating & Storage Ltd. Montreal Trust Co. Moore Corp. Ltd. Mooshla Gold Mines Co. Ltd. More Mines Limited Moresby Mines Ltd. Morocco Mines Ltd. Morono Copper Mines Ltd. Morse Corporation Ltd., Robt. 5 1/2 pc cu cv B pr. Motorcade Stores Limited Mount Jamie Mines Quebec Limited Mount Keno Mines Ltd. Mount Pleasant Mines Ltd. Mount Royal Rice Mills Ltd. 5.80 pc cu pr. Mount Washington Copper Co. Ltd. Mount Wright Iron Mines Ltd. MPG Investment Corporation Limited $1.30 cu pr. MSN Industries Ltd. Mt Hyland Mines Ltd. MTS International Services Inc. Multi-Minerals Ltd. Multiple Access General Computer Corporation Limited Murgor Explorations Ltd. Murky Fault Metal Mines Ltd. Murmac Lake Athabasca Mines Ltd. Murphy Oil Co. Ltd. 5 3/4 pc cu cv A pr. Murrit Photofax Ltd. Muscocho Exploration Ltd. Mustang Mines Ltd. Mymar Mining & Reduction Ltd. My-Pitt Red Lake Gold Mines Ltd. Myteque Mines Limited Mytolon Chemical Inc. Nabors Drilling Limited Na-Churs International Limited Nadina Explorations Ltd. Naganta Mining & Development Co. Ltd. Nahanni Mines Ltd. Nasco Cobalt Silver Mines Ltd. National Drug & Chemical Co. of Canada Ltd. National Grocers Company Limited $1.50 cu pr. National Hees Enterprises Ltd. National Hees Industries Ltd. 6 pc cv 1st pr. National Nickel Limited National Nursing Homes Ltd. National Petroleum Corporation National Sea Products Ltd. National Trust Co. Ltd. Nation Lake Mines Ltd. Native Minerals Ltd. Native Mines Ltd. Navco Food Services Limited Negor Mines Ltd. Nello Mining Ltd. Nelson’s Laundries Co. Ltd. Nemrod Mining Co. Ltd. Neonex International Limited Nesbitt Mining & Exploration Ltd. New Arntfield Mines Ltd. New Associated Developments Ltd. New Athona Mines Ltd. Newbaska Gold & Copper Mines Ltd. New Bedford Explorations Ltd. New Bidlamaque Gold Mines Ltd. New Brunswick Telephone Co. Ltd. New Brunswick Uranium Metals & Mining Ltd. New Calumet Mines Ltd. New Campbell Island Mines Ltd. New Cinch Uranium Ltd. Newconex Holdings Ltd. New Continental Oil Company of Canada Limited New Cronin Babine Mines Ltd. New Davies Petroleums Ltd. New Digby Dome Mines Ltd. New Dimension Resources Ltd. New Dominion Nickel Mines Ltd. New Far North Exploration Ltd. New Formaque Mines Ltd. New Forty Four Mines Ltd. Newfoundland Light & Power Co. Ltd. New Gateway Oils & Minerals Ltd. New Glacier Explorers Ltd. New Gold Star Mines Limited New Goldvue Mines Ltd. New Harricana Mines Ltd. New Hope Porcupine Gold Mines Ltd. New Hosco Mines Ltd. New Indian Mines Ltd. New Insco Mines Ltd. New Jason Mines Ltd. New Kelore Mines Ltd. New Lorie Mines Ltd. Newlund Mines Ltd. New Mallen Red Lake Mines Ltd. New Marvel Oils Ltd. New Metalore Mining Co. Ltd.

New Miller Pipe Lines & Mining Exploration Ltd. New Mount Costigan Mines Ltd. Newnorth Gold Mines Ltd. New Pascalis Mines Ltd. New Picton Uranium Mines Ltd. New Potterdoal Mines Ltd. New Privateer Mines Limited New Providence Development Co. New Quebec Raglan Mines Limited New Redwood Gold Mines Ltd. Newrich Explorations Ltd. New Senator Rouyn Ltd. New Taku Mines Limited New Territorial Uranium Mines Ltd. New Unisphere Resources Limited Newvan Resources Ltd. New Walcord Mines Ltd. New Wellington Mines Ltd. New York Oils Limited Niagara Structural Steel Co. Ltd. Niagara Wire Weaving Company Limited, The Nickel Hill Mines Limited Nickel Lake Mines Ltd. Nickel Offsets Ltd. Nickel Rim Mines Limited Nicoba Mines Ltd. Nicohal Mines Ltd. Nisson Mining & Development Limited Nith River Petroleums Ltd. Nitracell Canada Ltd. Noble Mines & Oils Ltd. Nocana Mines Ltd. Noctin Investment Corporation Ltd. Noland Mines Ltd. Nor-Acme Gold Mines Ltd. Noradco Mines Ltd. Noranda Mines Ltd. Norbaska Mines Ltd. Norcan Mines Limited Norco Oil Corp. Nordev Mines Ltd. Nordex Explosives Ltd. Nordic Industries Ltd. Norex Resources Limited Norgold Mines Limited Norlex Mines Ltd. Normont Copper Ltd. Norque Copper Mines Ltd. Norseman Mines Limited Northair Mines Ltd. North American Asbestos Co. Ltd. North American Land & Leisure Ltd. North American Rare Metals Ltd. North American Rockwell Corp. Northcal Mines Ltd. North Canadian Oils Ltd. North Coldstream Mines Ltd. North Continental Oil & Gas Corporation Ltd. North D’Arcy Explorations Ltd. Northern Canada Mines Ltd. Northern & Central Gas Corporation Ltd. $1.06 cu cv pr. $1.50 cu cv pr. $2.60 cu 1st pr. $2.70 cu pr. Northern Coal Mines Ltd. Northern Gem Mining Corp. Ltd. Northern Homestake Mines Ltd. Northern Metals Limited Northern Nuclear Mines Ltd. Northern Quebec Explorers Ltd. Northern Tar, Chemical & Wood Ltd. Cu A pr. Northern Telephone Ltd. 5 1/2 pc cu C 1st pr. North Expo Mines Ltd. Northgate Exploration Ltd. North Island Mines Limited Northland Oils Ltd. Northland Trust Co. Northlode Explorations Ltd. North Pacific Mines Ltd. North Rock Explorations Ltd. Northville Explorations Ltd. Northwest Canalask Nickel Mines Ltd. North Western Utilities Ltd. Northwest Sports Enterprises Ltd. Northwest Trust Co. Northwest Ventures Limited North Whitney Mines Ltd. Nor-West Kim Resources Ltd. Nouvelle Mining Exploration Ltd. Nova Beaucage Mines Ltd. Nova Scotia Light & Power Co. Ltd. Nova Scotia Savings and Loan Co. NQN Mines Ltd. NSI Marketing Ltd. Nudulama Mines Ltd. Numac Oil & Gas Ltd. Nu-West Development Corp. Ltd. NWL Financial Corporation Ltd. NWP Developments Ltd. NWT Copper Mines Ltd. Oakville Wood Specialties Limited Oakwood Petroleums Limited O’Brien Gold Mines Limited Occidental Petroleum Corporation Ocean Cement & Supplies Ltd. Oceanic Iron Ore of Canada Ltd. Ogilvie Flour Mills Co. Ltd. Oil Patch Equipment Sales & Rentals Ltd. Okanagan Helicopters Ltd. Okanagan Holdings Ltd. Okanagan Telephone Company $0.40 cu pr. Old Canada Investment Corporation Ltd. 6 pc A 1st pr. Olivet Gold Mines Ltd. Omega Hydrocarbons Ltd. Omega Mines Ltd. Onaco Petroleums Ltd. Onapping Mines Ltd. Ontex Mining Ltd. Opemiska Copper Mines Quebec Ltd. Open End Mines Limited Orangeroof Canada Ltd. Orchan Mines Ltd. Ordala Mines Ltd. Orlando Realty Corporation Ltd. Orofino Mines Ltd. Oro Mines Ltd. Ortega Minerals Ltd. Orvalley Gold Mines Ltd. OSF Industries Limited Oshawa Group Ltd. Osisko Lake Mines Ltd. Ourgold Mining Co. Ltd. Overland Express Ltd., The $0.60 cu cv pr. 2nd pt pr. Pace Industries Ltd. Pacific Asbestos Ltd. Pacific Atlantic Canadian Investment Co. Ltd. Pacific Copper Mines Ltd. Pacific Enterprises Ltd. Pacific Gas Transmission Co. Pacific Nickel Mines Ltd. Pacific Northern Gas Ltd. Pacific Northern Oils Ltd. Pacific Petroleums Limited Pacific Silver Mines & Oils Ltd. Pacific Sulphur Ltd. Pacific Western Airlines Ltd. Packard Pershing Mines Ltd. Paco Corporation of Canada Ltd. Page Petroleum Ltd. Palco Explorations Ltd. Palliser Petroleums Ltd. Palmer McLellan (United) Ltd. Palomino Explorations Ltd. Pamike Mines Ltd. Pamour Porcupine Mines Ltd. Panacan Resources Ltd. Panacea Mining & Exploration Ltd. Pan American Mines Ltd. Pan Canadian Petroleums Limited Pancana Industries Ltd. Pan Eastern Corporation Ltd. Pango Gold Mines Ltd. Pan Ocean Oil Corporation Panther Mines Ltd. Paragon Properties Limited Paramaque Mines Ltd. Paramount Mining Ltd. Parkland Beef Industries Ltd. Park Lawn Cemetery Company Parr Mines Ltd. Partridge River Mines Ltd. Pathfinder Resources Ltd. Patino Naamloze Vennootschap Pato Consolidated Gold Dredging Ltd. Patricia Silver Mines Ltd. Paulpic Gold Mines Ltd. Pax International Mines Ltd. Payco Mines Ltd. Payette River Mines Limited Payfair Industries Ltd. PCE Explorations Limited Peace River Mining & Smelting Ltd. Peace River Petroleums Ltd. Peel-Elder Limited Peel Resources Ltd. Pelangio Larder Mines Ltd. Pembina Pipe Line Ltd. 6 pc cu A 2nd pr. Pembroke Electric Light Co. Ltd. Pend Oreille Mines & Metals Co. Pennbec Mining Corp. Pennington’s Stores Limited Peoples Credit Jewellers Ltd. Peoples Department Stores Limited P.E.P. Professional & Engineered Patents Ltd. Pere Marquette Petroleums Ltd. Permo Gas & Oil Limited Pershing Manitou Gold Mines Ltd. Pershon Gold Mines Ltd. Peruvian Oils & Minerals Ltd. Peso Silver Mines Ltd. Peterson Red Lake Mines Ltd. Petrofina Canada Ltd. Petrol Oil & Gas Company Ltd., The Petromines Ltd. Petroquest Ltd. Peyto Oils Limited Pharaoh Mines Ltd. Phillips Cables Limited Phillips Petroleum Co. Phoenix Canada Oil Company Ltd. Photo Engravers & Electrotypers Ltd. Pickel Crow Explorations Limited Pickering Metal Mines Ltd. Pick Mines Ltd. Picton Mines Pine Bell Mines Ltd. Pine Lake Mining Co. Ltd. Pine Pacific Mines Ltd. Pine Point Mines Ltd. Pine Ridge Exploration Co. Ltd. Pine Tree Explorations Ltd. Pinex Mines Ltd. Pinnacle Mines Ltd. Pinnacle Petroleums Ltd. Pitchvein Mines Ltd. Pitt Gold Mining Co. Ltd. Pitts Engineering Construction Limited, C.A. Pizza Pan International Corp. Place Gas & Oil Company Limited Placer Development Ltd. Plains Petroleum Ltd. Plateau Metals Limited Pleno Mines Ltd. Polaris Mines Ltd. Polcon Corp. Polypump Ltd. Ponderay Exploration Co. Ltd. Ponder Oils Ltd. Popular Industries Ltd. Port Arthur Iron Ore Corp. Portcomm Communications Corp. Ltd. A. wt. Port Dover Gas & Oil Ltd. Portfield Petroleums Limited Portland Yellowknife Gold Mines Limited Potter Distilleries Ltd. Power Corp. of Canada Ltd. 4 3/4 pc 1st pr. 5 pc cv A 2nd pr. 6 pc 2nd pr. Prado Explorations Ltd. Prairie Oil Royalties Company Ltd. Prairie Royalty Prefac Concrete Co. Ltd. Premier Cablevision Limited Premier Trust Co., The Fully paid Premium Iron Ores Limited Preston Mines Limited Price Company Limited, The Prime Potash Corporation of Canada Ltd. Primer Group Minerals Ltd. Probe Mines Limited Proflex Limited Pronghorn Petroleum Corp. Ltd. Proto Explorations Ltd. Provident Assurance Company (The) Provigo Inc. Provinces & Explorations Ltd. Puma Petroleums Ltd. Purdex Minerals Ltd. Pure Silver Mines Ltd. Pyramid Mining Co. Ltd. Q Broadcasting Ltd. Q.S.P. Ltd. Quadrate Explorations Ltd. Quatsino Copper-Gold Mines Ltd. Quebec Antimony Mines Ltd. Quebec Cobalt & Exploration Ltd. Quebec Explorers Corp. Ltd. Quebec Gold Belt Mines Ltd. Quebec Industrial Minerals Corp. Quebec Manitou Mines Ltd. Quebec Mattagami Minerals Ltd. Quebec Sturgeon River Mines Ltd. Quebec Telephone 6 1/5 pc cu cv A pr. 5 pc cu pr 1951 series 5 pc cu pr 1955 series 5 pc cu pr 1956 series 4 3/4 pc cu pr 1965 series Quebec Uranium Mining Corp. Queenston Gold Mines Ltd. Quejo Mines Ltd. Quest Yellowknife Mines Limited Quilchena Mining & Development Co. Ltd. Quinte-Canlin Limited Rackla River Mines Ltd. Radex Minerals Ltd. Radiation Development Co. Ltd. Radio Hill Mines Co. Ltd. Radiore Uranium Mines Ltd. Ragged Chute Silver Mines Ltd. Ramada Resources Ltd. Rambler Exploration Co. Ltd. Ramid International Ltd. Ram Petroleums Ltd. Rancheria Mining Co. Ltd. Ranchmen’s Resources Ltd. Rand Malartic Mines Ltd. Rand Resources Limited Ranger Oil Canada Limited Rank Organization Ltd. Ranney Gold Mines Ltd. Rapid Data Systems & Equipment Ltd. Rapid Grip & Batten Limited Rapid River Resources Ltd. Rawhide U Mines Ltd. Rayfield Mining Co. Raylloyd Mines & Explorations Ltd. Raymond Tiblemont Gold Mines Ltd. Rayore Mines Ltd. Rayrock Mines Limited Reactor Uranium Mines Ltd. Reader’s Digest Association (Canada) Ltd. Readyfoods Ltd. Realm Mining Corporation Limited Realty Capital Corporation Ltd. Reco Silver Mines Ltd. Redaurum Red Lake Gold Mines Ltd. Redcoat Mines Ltd. Redcon Gold Mines Ltd. Redhill Investment Corp. Ltd. Red Metal Mines Ltd. Redruth Gold Mines Ltd. Redstone Mines Ltd. Reed Shaw Osler Limited Reeves Macdonald Mines Ltd. Regentbranch Holdings Limited Reichhold Chemicals (Canada) Ltd. Reid Lithographing Co. Ltd. 6 1/4 pc cu A pr. Reitman’s Canada Ltd. Renold Chains Canada Ltd. Cl A. cu pr. Renzy Mines Ltd. Reprox Corp. Ltd. Republic Resources Ltd. Revelstoke Building Materials Ltd. Revenue Properties Co. Ltd. Rexdale Mines Ltd. Reynolds Aluminum Co. of Canada Ltd. 4 3/4 pc cu 1st pr. R.H.P. Canada Ltd. Cu pt cl A. Rhyolite-Rouyn Mines Ltd. Richan Explorations Limited Richelieu Vaudreuil Farms Ltd. Richfault Explorations Ltd. Rich Group Yellowknife Mines Ltd. Richore Gold Mines Ltd. Richwood Industries Ltd. Ridgefield Explorations Ltd. Riley’s Datashare International Ltd. Rimrock Mining Corporation Ltd. Rio-Algom Mines Ltd. $5.80 cu A 1st pr. Rio Plata Silver Mines Ltd. Rio Rupununi Mines Ltd. Ripley International Ltd. Riverside Yarns Ltd. Cl A cu cv pr. Riviera Industries & Resources Ltd. Robb Montbray Mines Ltd. Robert Mines Ltd. Robin Red Lake Mines Ltd. Robinson, Little & Co. Ltd. Rocket Mines Limited Rockland Mining Ltd. Rodstrom Yellowknife Mines Ltd. Rokon Mines Ltd. Rolland Paper Co. Limited Rolling Hills Copper Mines Ltd. Roman Corporation Ltd. Romfield Building Corp. Ltd. Ronalds-Federated Ltd. Ronnoco Gold Mines Ltd. Ron Roy Uranium Mines Limited Rose Gold Mining Co. Ltd. Rose Pass Mines Ltd. Rothmans of Pall Mall Canada Ltd. 6.85 pc cu 1st pr. 65/8 pc cv 2nd pr. Rouyn Exploration Ltd. Rowan Consolidated Mines Ltd. Roxmark Mines Ltd. Royal Agassiz Mines Ltd. Royal Bank of Canada, The Royal Canadian Ventures Ltd. Royal Oak Dairy Ltd. Royal Trust Company, The Royal Trust Co. Mortgage Corp., The R R D Limited R S L Limited Rugged Red Lake Mines Ltd. Russel Holdings Ltd. Russell Foods Russel Ltd., Hugh 6 1/2 pc cv A 1st pr. Ruttan Lake Explorations Ltd. Ryanor Mining Co. Ltd. Sabina Industries Ltd. Safari Explorations Limited St. Anthony Mines Ltd. Saint Fabien Copper Mines Ltd. St. James Resources Ltd. Saint Lawrence Cement Co. Ltd. Saint Lawrence Columbium & Metals Corp. Saint Lawrence Corp. Ltd. Saint Lawrence Diversified Co. Saint Luci Exploration Co. Ltd. St. Mary’s Explorations Ltd. Saint Maurice Capital Corp. Ltd. Samson Mines Ltd. Sandwell & Company Limited Sanelli Pools Limited Sangamo Co. Ltd. San Jacinto Explorations Ltd. San Judas Molybdenum Corp. Ltd. Santack Mines Ltd. Santa Helena Mining Ltd. Santa Maria Mines Ltd. Santa’s Village Ltd. Santiago Mining & Exploration Ltd. Sapawe Gold Mines Ltd. Saratoga Processing Co. Ltd. Sarimco Mines Ltd. Sarnoil Ltd. Saskatchewan Trust & Loan Co. Saskoba Mines Inc. Sastex Petro-Minerals Ltd. Satellite Metal Mines Ltd. Savanna Creek Gas & Oil Ltd. Sayvette Limited Scandia Mining & Exploration Ltd. Schneider Limited, J. M. B cu cv pr. C cu cv pr. Schott Industries Inc. Sciminex Limited Scintrex Limited Scope Resources Ltd. Scott Chibougamau Mines Ltd. Scottish & York Holdings Ltd. Scott-Lasalle Limited Scott Misener Steamships Ltd. Scott Paper Limited Scott’s Restaurant Ltd. SCU Industries Ltd. Scurry-Rainbow Oil Limited Scythes and Company Limited Seaboard Life Insurance Co. Seaway Copper Mines Limited Seaway Multi-Corp. Ltd. Cu cv A pr. Seco-Cemp. Ltd. 7 1/4 pc. Secondo Mining Ltd. Security Capital Corp. Ltd. C1 B. Seemar Mines Ltd. Seldore Mining Company Limited Select Properties Ltd. Selkirk Holdings Ltd. Senior Gas & Oil Ltd. September Mt Copper Mines Ltd. Seton Lake Mines Ltd. Share Mines & Oils Ltd. Shasta Mines & Oils Ltd. Shaw Limited, L. E. Shawmin Explorations Ltd. Shawnee Petroleums Ltd. Shawnex Mines Limited Shaw Pipe Industries Ltd. Sheba Copper Mines Ltd. Sheba Mines Ltd. Sheldon-Larder Mines Ltd. Shell Canada Limited Shell Investments Ltd. Shell Oil Company Shelter Bay Mining Corp. Shepherd Casters Canada Ltd. Sheritt-Lee Mines Ltd. Sherritt Gordon Mines Ltd. Sherwin-Williams Co. of Canada Ltd. Shewan Copper Mining Corp. Ltd. Shield Development Co. Ltd., The Shore to Shore Corporation Limited Shully’s Industries Limited Siebens Oil & Gas Ltd. Sierra Empire Mines Ltd. Sifton Properties Ltd. Sigma Mines Quebec Ltd. Silbak Premier Mines Ltd. Sileurian Chieftain Mining Co. Ltd. Silknit Limited Silmonac Mines Ltd. Silver Butte Mines Ltd. Silver Chief Minerals Ltd. Silver Christal Natural Gas & Minerals Ltd. Silver City Mines Ltd. Silver-Cup Mines Ltd. Silver Eureka Corp. Silver Key Mines Ltd. Silverknife Mines Ltd. Silver Lake Mines Ltd. Silvermaque Mining Ltd. Silver-Men Mines Ltd. Silver-Miller Mines Ltd. Silver Monarch Mines Ltd. Silver Pack Mines Ltd. Silverquick Development Co. BC Ltd. Silver Ridge Mining Co. Ltd. Silver Shield Mines Inc. Silversides Mines Ltd. Silver Spring Mines Ltd. Silverstack Mines Ltd. Silver Standard Mines Ltd. Silver Star Mines Ltd. Silver Summit Mines Ltd. Silverwood Industries Ltd. Simpsons Limited Simpsons-Sears Limited Sintra Limited Sirmac Mines Ltd. Skelly Oil Company Sklar Manufacturing Ltd. Skyline Hotels Limited Sladen Quebec Ltd. Slate Bay Gold Mines Ltd. Slater Steel Industries Limited 5 1/2 pc cu 1st pr. 5 1/2 pc 2nd pr. $1.20 cu pr. Slater Walker of Canada Ltd. Slater Walker Securities Ltd. Slave Point Mines Ltd. S L Diversified Corp. Ltd. Slocan Ottawa Mines Ltd. S.M.A. Inc. S M Industries Ltd. Snowdrift Base Metal Mines Ltd. Sobeys Stores Limited Soca Ltée. Sogena Inc. Sogepet Ltd. Solar Explorations Ltd. Solidarité Compagnie d’Assurance sur la Vie Solomon Development Ltd. Solomons Pillars Mines Ltd. Somerville Industries Ltd. $2.80 cu pr. Somex Ltée Southam Press Limited South Dufault Mines Ltd. Southern Pacific Petroleum Ltd. Southern Union Oils Ltd. South Pacific Mines Ltd. South Seas Mining Ltd. South Winnipeg Limited Spacemaster Minerals Ltd. Spa Mines Ltd. Spanish River Mines Ltd. Spar Aerospace Products Ltd. Sparling Ltd., George Spartan Air Services Ltd. Spartan Explorations Ltd. Spartex Oil & Gas Ltd. Spectroair Explorations Ltd. Speculators Fund Ltd. Spenho Mines Ltd. Spina Porcupine Mines Ltd. Spirit Lake Mines Ltd. Spooner Mines & Oils Limited Stability Life Insurance Co. Stafford Foods Ltd. Stairs Exploration & Mining Co. Ltd. Stall Lake Mines Ltd. Stampede International Resources Ltd. Standard Broadcasting Corp. Ltd. Standard Fuel Co. Ltd. Standard Gold Mines Ltd. Standard Nickel Mines Limited Standard Paving & Materials Ltd. Stanfield’s Ltd. Stanford Mines Ltd. Stannex Minerals Ltd. Stanrock Uranium Mines Ltd. Star Lake Gold Mines Ltd. Steel Co. of Canada Ltd., The Steeltree Group Inc. Steep Rock Iron Mines Ltd. Steetley Industries Ltd. Steinberg’s Limited 5 1/4 pc cu A pr. Steintron International Electronics Ltd. Stellako Mining Company Ltd. Sterisystems Ltd. Sterling Trust Corporation Stewart Lake Iron Mines of Ontario Ltd. Stormy Mines Ltd. Stuart House International Ltd. Stuart Oil Company Ltd., D. A. Studer Mines Limited Stump Mines Ltd. Sturdy Mines Ltd. Sturgeon Petroleums Ltd. Sturgex Mines Ltd. Subeo Limited Sudbury Contact Mines Ltd. Sullivan Mining Group Ltd. Summit Explorations & Holdings Ltd. Sun Bear Mines Ltd. Sunburst Explorations Ltd. Sunlite Oil Company Ltd. Sunningdale Oils Ltd. Sun Publishing Co. Limited Sunrise Silver Mines Ltd. Sunset Yellowknife Mines Ltd. Superior Acid & Iron Ltd. Superior Electronics Industries Ltd. Supermarché à Domicile Ltée Superpack Corporation Ltd. Supersol Ltd. Supertest Petroleum Corporation Limited Surluga Gold Mines Ltd. Surpass Chemicals Limited Swim Lake Mines Ltd. Swiss Oils of Canada 1959 Ltd. Systems Air Corp. Ltd. Systems Dimensions Ltd. Tache Lake Mines Ltd. Tagami Mines Limited Takla Silver Mines Ltd. Talisman Mines Limited Taman Uranium Mines Ltd. Tamblyn Limited, G Tancord Industries Limited A pr. Taneloy Mines Ltd. Tanzilla Explorations Ltd. Tara Exploration & Development Company Limited Target Mines Ltd. Tartan Explorations Ltd. Taseko Mines Ltd. Tashota-Nipigon Mines Ltd. Tasmaque Gold Mines Ltd. Taylor Windfall Gold Mining Co. Ltd. Tay River Mines Ltd. Teck Corporation Ltd. Teckora Mines Limited Teknol Mining Co. Ltd. Teledyne Canada Ltd. Tenneco Inc. Terra Developers Ltd. Terra Mining & Exploration Ltd. Terrasol Terrex Mining Co. Ltd. Texacal Resources Ltd. Texaco Canada Limited Texal Development Ltd. Texas East Transmission Texas Gulf Sulphur Co. Inc. Texmont Mines Ltd. Texore Mines Ltd. Tex-Sol Explorations Ltd. Thermatron Corporation Ltd. Third Canadian General Investment Trust Ltd. Thomas Nationwide Transport Limited Thompson Lundmark Gold Mines Ltd. Thompson Paper Box Co. Limited Thomson Drilling Company Ltd. Thomson Newspapers Limited Thor Explorations Ltd. Thorncrest Explorations Ltd. Timken Co. Timrod Mining Co. Ltd. Tinex Development Exploration Ltd. Tobe Mines Ltd. Tokar Limited Tombill Mines Ltd. Tomrose Mines Ltd. Tonecraft Limited Tontine Mining Limited Tooke Bros. Ltd. Topley Criss Mines Limited Torcan Explorations Ltd. Tormex Mining Developers Ltd. Toromont Industrial Holdings Ltd. Toronado Mines Ltd. Toronto-Dominion Bank Toronto Iron Works Ltd. (The) Toronto & London Investment Co. Ltd. Toronto Star Limited Torwest Resources 1962 Ltd. Total Petroleum (North America) Ltd. 3 1/2 pc cv A pr. Tower Resources Ltd. Towmart Holdings Limited Traders Building Association Ltd. Traders Group Limited $2.16 cu pr. 1965 wt. 1969 wt. Transair Limited Trans-American Mining Corp. Ltd. Trans Canada Glass Ltd. Trans-Canada Pipe Lines Limited $2.75 cu cv pr. Trans-Canada Resources Ltd. Trans Columbia Exploration Ltd. Transcontinental Resources Ltd. Trans Eastern Oil & Gas Ltd. Trans Global Financial Services Ltd. Trans-Mountain Oil Pipeline Company Transocean Oil Incorporated Trans-Prairie Pipelines Ltd. Transterre Exploration Ltd. Trans Yukon Exploration Ltd. Tresdor Larder Mines Ltd. Tribag Mining Co. Ltd. Tri-Bridge Mines Limited Trimac Ltd. Trinity Chibougamau Mines Ltd. Triphope Resources Ltd. Triton Explorations Limited Trizec Corporation Limited Troilus Mines Ltd. Trojan Consolidated Mines Ltd. Tromac Mines Ltd. Troy Silver Mines Ltd. Tru-Wall Concrete Forming Ltd. Tundra Gold Mines Ltd. Turbo Resources Limited Turismo Industries Ltd. Turner Valley Oil Company Limited Twentieth Century Explorations Limited Twin Peak Mines Ltd. Twin Richfield Oils Ltd. Tyee Lake Resources Limited U.A.P. Inc. Ulster Petroleums Ltd. Ultramar Company Limited Unas Investments Ltd. Ungava Copper Corp. Ltd. Unican Security Systems Ltd. Unigesco Inc. Union Acceptance Corporation Ltd. 6 pc cu C Ist pr. 6 1/4 pc cu A 1st pr. 6 1/4 pc cu B 1st pr. Union Carbide Canada Limited Union Gas Company of Canada Limited Union Mining Corporation Union Oil Company of Canada Ltd. United Asbestos Corp. Ltd. United Canadian Shares Ltd. United Canso Oil & Gas Ltd. United Cobalt Mines Ltd. United Comstock Lode Mines Ltd. United Copper Corporation Ltd. United Corporations Ltd. 5 pc cu 1963 pr. United Equities Limited United Funds Management Ltd. United Grain Growers Limited United Investment Life Assurance Co. United Keno Hill Mines Ltd. United Macfie Mines Ltd. United Mindamar Metals Ltd. United New Fortune Mines Ltd. United Provincial Investment Ltd. United Reef Petroleums Ltd. United Siscoe Mines Ltd. United Westburne Industries Ltd. Universal Factors Corp. Universal Gas Co. Ltd. Universal Minerals Corporation Universal Patent & Development Ltd. Universal Sections Ltd. Univex Mining Corporation Ltd. Upper Canada Mines Ltd. Uranium Ridge Mines Ltd. Uranium Valley Mines Ltd. Urban Quebec Mines Ltd. US-CA-MEX Explorations Ltd. Utilities & Funding Corp. Ltd. Valdex Mines Inc. Valley Copper Mines Ltd. Val Mar Swimming Pools Ltd. Val Nor Exploration Ltd. Vananda Exploration Ltd. Van Der Holt Associates Limited Vandoo Consolidated Explorations Ltd. Van Ness Industries Ltd. Vargas Mines Limited Vastlode Mining Company Ltd. Velcro Industries Limited Vencap Investments Ltd. Venpower Limited Ventures Mining Limited Vermont Mines Ltd. Versafood Services Ltd. Versatile Manufacturing Ltd. Vespar Mines Ltd. Vestor Explorations Ltd. Viau Limited Victoria Algoma Mineral Co. Ltd. Victoria & Grey Trust Co. 5.35 pc cu A pr. Victoria Wood Development Corp. Ltd. 7 1/2 pc cu A pr. Victor Mining Corp. Ltd. Viking Mines Ltd. Villacentres Ltd. Vimy Explorations Ltd. Visa Bella Inc. Volcanic Mines Ltd. Voyager Explorations Ltd. Voyager Petroleums Ltd. Vulcan Industrial Packaging Limited Wabasso Limited Waco Petroleums Ltd. Wadge Mines Ltd. Waferboard Corp. Ltd. Wainoco Oil & Chemicals Ltd. Waite Dufault Mines Ltd. Wajax Limited Walker-Gooderham & Worts Limited (Hiram) Wall & Redekop Corporation Ltd. Wardair Canada Ltd. Warner Investments Ltd., E.C. Warner West Warnock Hersey International Limited Warrington Products Ltd. Watson Lake Mines Ltd. Wavecom Development Ltd. W. C. P. Explorations Ltd. Webb & Knapp Canada Limited Webbwood Exploration Co. Ltd. Webbwood Mobile Home Estates Ltd. Wee-Gee Uranium Mines Ltd. Weldwood of Canada Limited Welland Consolidated Mining Ltd. Wellington Bank Wentworth Investment Corporation Ltd. Werner Lake Nickel Mines Ltd. Wescorp Industries Ltd. Wesley Mines Ltd. Westairs Mines Ltd. Westates Petroleum Company Westburne International Industries Ltd. 8 pc cu cv pr. West Canadian Mineral Holdings Ltd. Westcoast Petroleum Ltd. West Coast Resources Ltd. Westcoast Transmission Co. Ltd. Westeel-Rosco Limited Western Allenbee Oil & Gas Company Ltd. Western Broadcasting Co. Ltd. Western-Buff Mines & Oils Ltd. Western Canadian Seed Processors Ltd. Western Decalta Petroleum Ltd. Western Exploration Company Ltd. Western Mines Ltd. Western Quebec Mines Co. Ltd. Western Realty Projects Limited Western Standard Silver Mines Ltd. Western Supplies Ltd. Cl A cu cv. Western & Texas Oil Co. Ltd. Western Tin Mines Ltd. Western Warner Oils Limited Westfair Foods Ltd. Westfield Minerals Ltd. West Hill Enterprises & Mining Ltd. West Indies Plantation Ltd. Westinghouse Canada Limited Westland Mines Ltd. Weston Limited, George West Red Lake Gold Mines Ltd. Westview Investment Corporation Ltd. Westville Mines Ltd. West Wasa Mines Ltd. Whim Creek Consolidated No Liability Whipsaw Mines Limited Whistler Petroleums Ltd. Whitehorse Copper Mines Ltd. White Pass & Yukon Corp. Ltd. 6 3/4 pc cu A pr. White River Mines Ltd. Whiterock Estates Development Corporation Limited Whitesail Mines Ltd. White Star Copper Mines Ltd. Whitey Wilson Oil & Gas Ltd. Whonnock Industries Limited CI B Wilco Mining Co. Ltd. Wildor Mines Wiley Oilfield Hauling Ltd. Williams Creek Gold Quartze Mining Co. Ltd. Willow Lake Mines Ltd. Willroy Mines Ltd. Wilshire Oil Company of Texas Wilson Red Lake Gold Mines Ltd. Winco Steak & Burger Restaurants Limited Windermere Exploration Limited Windfall Oils & Mines Ltd. Win-Eldrich Mines Ltd. Winnipeg Supply and Fuel Co. Ltd. Win West Oil & Mining Ltd. Wisconsin Mining Company Ltd. Wolf Creek Mines Ltd. Wood, Alexander Ltd. Wood-Croesus Gold Mines Ltd. Woodford Investment Ltd. Woodward Stores Limited Worldwide Energy Company Ltd. Wosk’s Ltd. Wrightbar Mines Limited Wright-Hargreaves Mines Ltd. Xoma Ltd. Yankee Canuck Oil and Mining Corp. Ltd. Yarandry Silver Mines Ltd. Yellorex Mines Ltd. Yellowknife Base Metals Ltd. Yellowknife Bear Mines Ltd. Yorbeau Mines Inc. York Lambton Corporation Limited Young-Davidson Mines Ltd. Young, H. G. Mines Ltd. Young-Shannon Gold Mines Ltd. Yreka Mines Ltd. Y & R Properties Ltd. Yukon Consolidated Gold Corp. Ltd. Yukon Properties Limited Yukon Revenue Mines Limited Zahamy Mines Ltd. Zeller’s Ltd. Zenith Electric Supply Ltd. Zenith Mining Corporation Ltd. Zenmac Metal Mines Limited Zinat Mines Limited Zodiac Ltd. Zodiac Mines Ltd. Zulapa Mining Corporation Ltd. Subparagraph (j.1)(i) of the definition remuneration in subsection 100(1) of the Income Tax Regulations is replaced by the following: the particular payment is in respect of the minimum amount (determined in accordance with subsection 146.3(1), (1.6) or (1.7) of the Act, as the case may be) under the fund for a year, or Paragraph 103(6)(d.1) of the Regulations is replaced by the following: a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146.3(1) of the Act under a registered retirement income fund of that annuitant, other than a payment to the extent that it is in respect of the minimum amount (determined in accordance with subsection 146.3(1), (1.6) or (1.7) of the Act, as the case may be) under the fund for a year,