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Income Tax Regulations (C.R.C., c. 945)

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Regulations are current to 2019-08-28 and last amended on 2019-06-25. Previous Versions

PART XCFinancial Institutions — Prescribed Entities and Properties (continued)

Prescribed Payment Card Corporation Share not Mark-to-Market Property

 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,

  • (a) the particular corporation is any one of the following

    • (i) MasterCard International Incorporated,

    • (ii) MasterCard Incorporated, or

    • (iii) Visa Inc.; and

  • (b) the share

    • (i) is of a class of shares that is not listed on a stock exchange,

    • (ii) 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

    • (iii) was issued by the particular corporation to the taxpayer or to a person related to the taxpayer.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2009, c. 2, s. 118

 [Repealed, 2009, c. 2, s. 118]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2009, c. 2, s. 118

Significant Interest in a Corporation

 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2009, c. 2, s. 118

Financing Arrangement not a Specified Debt Obligation

 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

  • (a) 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

  • (b) 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/99-91, s. 8
  • 2009, c. 2, s. 118

Prescribed Non-reporting Financial Institution

 For the purposes of the definition non-reporting financial institution in subsection 270(1) of the Act, the following entities are prescribed:

  • (a) a labour-sponsored venture capital corporation as prescribed in section 6701;

  • (b) a registered retirement savings plan;

  • (c) a registered retirement income fund;

  • (d) a pooled registered pension plan;

  • (e) a deferred profit sharing plan;

  • (f) a registered disability savings plan;

  • (g) a registered education savings plan;

  • (h) a registered pension plan;

  • (i) a trust governed by a registered pension plan;

  • (j) 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;

  • (k) 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;

  • (l) 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

    • (i) one or more registered pension plans or trusts governed by registered pension plans,

    • (ii) one or more trusts described in paragraph (j), or

    • (iii) one or more corporations described in this paragraph or paragraph (k);

  • (m) 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);

  • (n) 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; and

  • (o) a TFSA.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2016, c. 12, s. 83

Prescribed Excluded Accounts

 For the purposes of the definition excluded account in subsection 270(1) of the Act, the following accounts are prescribed:

  • (a) a registered retirement savings plan;

  • (b) a registered retirement income fund;

  • (c) a pooled registered pension plans;

  • (d) a registered pension plan;

  • (e) a registered disability savings plan;

  • (f) a registered education savings plan;

  • (g) a deferred profit sharing plan;

  • (h) a net income stabilization account, including a NISA Fund No. 2;

  • (i) an eligible funeral arrangement;

  • (j) a dormant account if the balance or value of the account does not exceed 1,000 USD; and

  • (k) a TFSA.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2016, c. 12, s. 83

PART XCIFinancial Institutions — Income from Specified Debt Obligations

Interpretation

Marginal note:Definitions

 The following definitions apply in this Part.

fixed payment obligation

fixed payment obligation, of a taxpayer, means a specified debt obligation under which

  • (a) 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

  • (b) all payments are to be made in the same currency. (titre à paiements fixes)

primary currency

primary currency, of a specified debt obligation, means

  • (a) the currency with which the obligation is primarily connected; and

  • (b) if there is no such currency, Canadian currency. (monnaie principale)

tax basis

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

total return, of a taxpayer from a fixed payment obligation, means the amount, measured in the primary currency of the obligation, by which

  • (a) 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

exceeds

  • (b) the cost to the taxpayer of the obligation. (rendement total)

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/2009-222, s. 7

Prescribed Inclusions and Deductions

Marginal note:Inclusion

  •  (1) 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

    • (a) the taxpayer’s accrued return from the obligation for the year,

    • (b) 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

    • (c) 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.

  • Marginal note:Deduction

    (2) 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

    • (a) 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

    • (b) 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/2009-222, s. 7
 
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