``specified
foreign
property''
« bien
étranger
déterminé »
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``specified foreign property'' of a person or
partnership means any property of the
person or the partnership that is
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(a) funds or intangible property which
are situated, deposited or held outside
Canada,
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(b) tangible property situated outside
Canada,
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(c) a share of the capital stock of a
non-resident corporation,
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(d) an interest in a non-resident trust or a
trust that, but for section 94, would be a
non-resident trust for the purpose of this
section,
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(e) an interest in a partnership that owns
or holds specified foreign property,
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(f) an interest in, or right with respect to,
an entity that is non-resident,
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(g) indebtedness owed by a non-resident
person,
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(h) an interest in or right, under a
contract, in equity or otherwise, either
immediately or in the future and either
absolutely or contingently, to any
property (other than any property owned
by a corporation or trust that is not the
person) that is specified foreign property,
and
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(i) property that, under the terms or
conditions thereof or any agreement
relating thereto, is convertible into, is
exchangeable for or confers a right to
acquire, property that is specified foreign
property,
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(j) property that is used or held
exclusively in the course of carrying on
an active business of the person or
partnership (determined as if the person
or partnership were a corporation
resident in Canada),
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(k) a share of the capital stock or
indebtedness of a non-resident
corporation that is a foreign affiliate of
the person or partnership for the purpose
of section 233.4,
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(l) an interest in, or indebtedness of, a
non-resident trust that is a foreign
affiliate of the person or partnership for
the purpose of section 233.4,
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(m) an interest in a non-resident trust that
was not acquired for consideration by
either the person or partnership or a
person related to the person or
partnership,
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(n) an interest in a trust described in
paragraph (a) or (b) of the definition
``exempt trust'' in subsection 233.2(1),
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(o) an interest in a partnership that is a
specified Canadian entity,
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(p) personal-use property of the person or
partnership, and
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(q) an interest in or right to acquire a
property that is described in any of
paragraphs (j) to (p).
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| Application to
members of
partnerships
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(2) For the purpose of this section, a person
who is a member of a partnership that is a
member of another partnership
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(a) is deemed to be a member of the other
partnership; and
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(b) the person's share of the income or
loss of the other partnership is deemed to
be equal to the amount of that income or
loss to which the person is directly or
indirectly entitled.
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| Returns
respecting
foreign
property
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(3) A reporting entity for a taxation year or
fiscal period shall file with the Minister for the
year or period a return in prescribed form on
or before the day that is
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(a) where the entity is a partnership, the day
on or before which a return is required by
section 229 of the Income Tax Regulations
to be filed in respect of the fiscal period of
the partnership or would be required to be
so filed if that section applied to the
partnership; and
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(b) where the entity is not a partnership, the
entity's filing-due date for the year.
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| Reporting
entity
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233.4 (1) For the purpose of this section,
``reporting entity'' for a taxation year or fiscal
period means
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(a) a taxpayer resident in Canada (other
than a taxpayer all of whose taxable income
for the year is exempt from tax under Part
I) of which a non-resident corporation is a
foreign affiliate at any time in the year;
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(b) a taxpayer resident in Canada (other
than a taxpayer all of whose taxable income
for the year is exempt from tax under Part
I) of which a non-resident trust is a foreign
affiliate at any time in the year; and
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(i) where the total of all amounts, each of
which is a share of the partnership's
income or loss for the period of a
non-resident member, is less than 90% of
the income or loss of the partnership for
the period, and, where the income and
loss of the partnership are nil for the
period, the income of the partnership for
the period is deemed to be $1,000,000 for
the purpose of determining a member's
share of the partnership's income for the
purpose of this subparagraph, and
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(ii) of which a non-resident corporation
or trust is a foreign affiliate of which at
any time in the fiscal period.
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| Rules of
application
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(2) For the purpose of this section, in
determining whether a non-resident
corporation or trust is a foreign affiliate or a
controlled foreign affiliate of a taxpayer
resident in Canada or of a partnership
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(a) paragraph (b) of the definition ``equity
percentage'' in subsection 95(4) shall be
read as if the reference to ``any
corporation'' were a reference to ``any
corporation other than a corporation
resident in Canada'';
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(b) the definitions ``direct equity
percentage'' and ``equity percentage'' in
subsection 95(4) shall be read as if a
partnership were a person; and
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(c) the definitions ``controlled foreign
affiliate'' and ``foreign affiliate'' in
subsection 95(1) shall be read as if a
partnership were a taxpayer resident in
Canada.
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| Application to
members of
partnerships
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(3) For the purpose of this section, a person
who is a member of a partnership that is a
member of another partnership
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(a) is deemed to be a member of the other
partnership; and
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(b) the person's share of the income or loss
of the other partnership is deemed to be
equal to the amount of that income or loss
to which the person is directly or indirectly
entitled.
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| Returns
respecting
foreign
affiliates
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(4) A reporting entity for a taxation year or
fiscal period shall file with the Minister for the
year or period a return in prescribed form in
respect of each foreign affiliate of the entity in
the year or period within 15 months after the
end of the year or period.
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| Due diligence
exception
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233.5 The information required in a return
filed under section 233.2 or 233.4 does not
include information that is not available, on
the day on which the return is filed, to the
person or partnership required to file the
return where
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(a) there is a reasonable disclosure in the
return of the unavailability of the
information;
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(b) before that day, the person or partnership
exercised due diligence in attempting to
obtain the information;
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(i) the return is required to be filed under
section 233.2, or
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(ii) the return is required to be filed under
section 233.4 by a person or partnership
in respect of a corporation that is a
controlled foreign affiliate, for the
purpose of that section, of the person or
partnership,
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it was reasonable to expect, at the time of
each transaction, if any, entered into by the
person or partnership after March 5, 1996
that gives rise to the requirement to file the
return or that affects the information to be
reported in the return, that sufficient
information would be available to the
person or partnership to comply with that
section; and
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(d) if the information subsequently
becomes available to the person or
partnership, it is filed with the Minister not
more than 90 days after it becomes so
available.
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| Returns
respecting
distributions
from
non-resident
trusts
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233.6 (1) Where a specified Canadian
entity (as defined by subsection 233.3(1)) for
a taxation year or fiscal period receives a
distribution of property from, or is indebted to,
a non-resident trust (other than a trust that was
an excluded trust in respect of the year or
period of the entity or an estate that arose on
and as a consequence of the death of an
individual) in the year or period and the entity
is beneficially interested in the trust at any
time in the year or period, the entity shall file
with the Minister for the year or period a return
in prescribed form on or before the day that is
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(a) where the entity is a partnership, the day
on or before which a return is required by
section 229 of the Income Tax Regulations
to be filed in respect of the fiscal period of
the partnership or would be required to be
so filed if that section applied to the
partnership; and
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(b) where the entity is not a partnership, the
entity's filing-due date for the year.
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| Excluded trust
defined
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(2) For the purpose of subsection (1), an
excluded trust in respect of the taxation year
or fiscal period of an entity means
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(a) a trust described in paragraph (a) or (b)
of the definition ``exempt trust'' in
subsection 233.2(1) throughout the portion
of the year or period during which the trust
was extant;
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(b) a trust in respect of which the entity is
required by section 233.2 to file a return in
respect of each taxation year of the trust that
ends in the entity's year;
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(c) a trust an interest in which is at any time
in the year or period specified foreign
property (as defined by subsection
233.3(1)) of the entity, where the entity is a
reporting entity (as defined by subsection
233.3(1)) for the year or period; and
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(d) a trust in respect of which the entity is
required by section 233.4 to file a return for
the year or period.
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| Exception for
first-year
residents
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233.7 Notwithstanding sections 233.2,
233.3, 233.4 and 233.6, a person who, but for
this section, would be required under any of
those sections to file an information return for
a taxation year, is not required to file the return
if the person is an individual (other than a
trust) who first became resident in Canada in
the year.
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(2) Section 233.2 of the Act, as enacted by
subsection (1), applies to returns in respect
of trusts' taxation years that begin after
1995, except that such a return in respect of
a taxation year that ends in 1996, 1997 or
1998 is required to be filed on or before the
later of
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(b) the day on or before which the return
is otherwise required to be filed.
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(3) Sections 233.3 and 233.6 of the Act, as
enacted by subsection (1), apply to returns
for taxation years and fiscal periods that
begin after 1995, except that such a return
for a taxation year or fiscal period that ends
in 1996, 1997 or 1998 is required to be filed
on or before the later of
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(b) the day on or before which the return
is otherwise required to be filed.
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(4) Section 233.4 of the Act, as enacted by
subsection (1), applies to returns for
taxation years and fiscal periods that begin
after 1995, except that such a return for a
taxation year or fiscal period that ends in
1996, 1997 or 1998 is required to be filed on
or before the later of
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(b) the day on or before which the return
is otherwise required to be filed.
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(5) Sections 233.5 and 233.7 of the Act, as
enacted by subsection (1), apply to returns
required to be filed on or before a day that
is after April 29, 1998.
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70. Subparagraph 241(4)(d)(vi.1) of the
Act is replaced by the following:
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(vi.1) to an official of the Department of
Natural Resources solely for the purpose
of determining whether property is
prescribed energy conservation property
or whether an outlay or expense is a
Canadian renewable and conservation
expense,
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71. (1) The definitions ``balance-due
day'', ``exempt income'', ``oil or gas well''
and ``tar sands'' in subsection 248(1) of the
Act are replaced by the following:
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``balance-
due day''
« date
d'exigibilité
du solde »
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``balance-due day'' of a taxpayer for a
taxation year means,
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(a) where the taxpayer is a trust, the day
that is 90 days after the end of the year,
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(b) where the taxpayer is an individual
who died after October in the year and
before May in the following taxation
year, the day that is 6 months after the day
of death,
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(c) in any other case where the taxpayer
is an individual, April 30 in the following
taxation year, and
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(d) where the taxpayer is a corporation,
the day on or before which the
corporation is required under section 157
to pay the remainder of its tax payable
under Part I for the year or would be so
required if such a remainder were
payable;
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``exempt
income''
« revenu
exonéré »
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``exempt income'' means property received or
acquired by a person in such circumstances
that it is, because of any provision of Part I,
not included in computing the person's
income, but does not include a dividend on
a share or a support amount (as defined in
subsection 56.1(4));
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``oil or gas
well''
« puits de
pétrole ou de
gaz »
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``oil or gas well'' means any well (other than
an exploratory probe or a well drilled from
below the surface of the earth) drilled for
the purpose of producing petroleum or
natural gas or of determining the existence,
location, extent or quality of a natural
accumulation of petroleum or natural gas,
but, for the purpose of applying sections 13
and 20 and any regulations made for the
purpose of paragraph 20(1)(a) in respect of
property acquired after March 6, 1996, does
not include a well for the extraction of
material from a deposit of bituminous sands
or oil shales;
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``tar sands''
« sables
asphalti-
ques »
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``tar sands'' means bituminous sands or oil
shales extracted, otherwise than by a well,
from a mineral resource, but, for the
purpose of applying sections 13 and 20 and
any regulations made for the purpose of
paragraph 20(1)(a) in respect of property
acquired after March 6, 1996, includes
material extracted by a well from a deposit
of bituminous sands or oil shales;
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(2) Paragraph (c) of the definition
``mineral resource'' in subsection 248(1) of
the Act is replaced by the following:
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(c) a bituminous sands deposit or oil shale
deposit, or
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(3) Subsection 248(1) of the Act is
amended by adding the following in
alphabetical order:
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``bituminous
sands''
« sables
bitumineux »
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``bituminous sands'' means sands or other
rock materials containing naturally
occurring hydrocarbons (other than coal)
which hydrocarbons have
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(a) a viscosity, determined in a
prescribed manner, equal to or greater
than 10,000 centipoise, or
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(b) a density, determined in a prescribed
manner, equal to or less than 12 degrees
API;
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``business
limit''
« plafond des
affaires »
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``business limit'' of a corporation for a
taxation year means the amount determined
under section 125 to be its business limit for
the year;
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``Canadian
field
processing''
« traitement
préliminaire
au Canada »
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``Canadian field processing'' means, except as
otherwise prescribed,
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(a) the processing in Canada of raw
natural gas at a field separation and
dehydration facility,
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(b) the processing in Canada of raw
natural gas at a natural gas processing
plant to any stage that is not beyond the
stage of natural gas that is acceptable to
a common carrier of natural gas,
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(c) the processing in Canada of hydrogen
sulphide derived from raw natural gas to
any stage that is not beyond the
marketable sulphur stage,
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(d) the processing in Canada of natural
gas liquids, at a natural gas processing
plant where the input is raw natural gas
derived from a natural accumulation of
natural gas, to any stage that is not
beyond the marketable liquefied
petroleum stage or its equivalent,
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