Excise Tax Act (R.S.C., 1985, c. E-15)

Act current to 2013-05-26 and last amended on 2013-04-01. Previous Versions

Marginal note:Associated persons

  • 127. (1) A particular corporation is associated with another corporation for the purposes of this Part if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.

  • Marginal note:Idem

    (2) A person other than a corporation is associated with a particular corporation for the purposes of this Part if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.

  • Marginal note:Idem

    (3) For the purposes of this Part, a person is associated with

    • (a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and

    • (b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

  • Marginal note:Idem

    (4) For the purposes of this Part, a person is associated with another person if each of them is associated with the same third person.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12.
Marginal note:Closely related corporation

  • 128. (1) For the purposes of this Part, a particular corporation and another corporation are closely related to each other at any time if at that time

    • (a) not less than 90% of the value and number of the issued and outstanding shares of the capital stock of the other corporation, having full voting rights under all circumstances, are owned by

      • (i) the particular corporation,

      • (ii) a qualifying subsidiary of the particular corporation,

      • (iii) a corporation of which the particular corporation is a qualifying subsidiary,

      • (iv) a qualifying subsidiary of a corporation of which the particular corporation is a qualifying subsidiary, or

      • (v) any combination of the corporations or subsidiaries referred to in subparagraphs (i) to (iv),

      • (vi) [Repealed, 1993, c. 27, s. 12]

    • (b) the other corporation is a prescribed corporation in relation to the particular corporation.

  • Marginal note:Corporations closely related to the same corporation

    (2) If under subsection (1) two corporations are closely related to the same corporation, they are closely related to each other for the purposes of this Part.

  • Marginal note:Investment funds

    (3) For the purposes of this section, an investment fund that is a member of a mutual insurance group is deemed to be a corporation.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 12;
  • 2007, c. 18, s. 3.
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