8604 [Repealed, 2013, c. 34, s. 411]

• 8605 (1) 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, equal to the amount, if any, by which

  • (a) the amount by which the total, at the end of the subsidiary’s last taxation year ending at or before the particular time, of

    • (i) the amount of the subsidiary’s long-term debt, and

    • (ii) the amount of the subsidiary’s capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its member’s contributions), retained earnings, contributed surplus and any other surpluses

    exceeds the total of

    • (iii) the amount of the subsidiary’s deferred tax debit balance at the end of the year, and

    • (iv) the amount of any deficit deducted in computing the subsidiary’s shareholders’ equity at the end of the year

  exceeds the total of all amounts each of which is

  • (b) 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

    • (i) the particular corporation,

    • (ii) a subsidiary of the particular corporation,

    • (iii) a corporation

      • (A) that is resident in Canada,

      • (B) that carried on a life insurance business in Canada at any time in its taxation year ending at or before the particular time, and

      • (C) that is

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

        • (II) a subsidiary of a corporation described in subclause (I), or

    • (iv) a subsidiary of a corporation described in subparagraph (iii), or

  • (c) an amount included under paragraph (a) in respect of any surplus of the subsidiary contributed by a corporation described in any of subparagraphs (b)(i) to (iv), other than an amount included under paragraph (b).

  • (d) [Repealed, SOR/98-571, s. 2]

• (2) 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, equal to the amount, if any, by which

  • (a) the total of the amounts determined under paragraphs (1)(b) and (c) in respect of the subsidiary for the year

  exceeds

  • (b) the amount determined under paragraph (1)(a) in respect of the subsidiary for the year.

• (3) 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.

• (4) The definitions in this subsection apply in this section.

  foreign insurance subsidiary

  foreign insurance subsidiary of a particular corporation at any time means a non-resident corporation that

  • (a) carried on a life insurance business throughout its last taxation year ending at or before that time,

  • (b) 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

  • (c) is at that time

    • (i) a subsidiary of the particular corporation, and

    • (ii) not a subsidiary of any corporation that

      • (A) is resident in Canada,

      • (B) carried on a life insurance business in Canada at any time in its last taxation year ending at or before that time, and

      • (C) is a subsidiary of the particular corporation. (filiale d’assurance étrangère)

  subsidiary

  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

  • (a) the parent corporation,

  • (b) a corporation that is a subsidiary of the parent corporation, or

  • (c) any combination of corporations each of which is a corporation referred to in paragraph (a) or described in paragraph (b). (filiale)

PART LXXXVIINational Arts Service Organizations

8700 For the purposes of paragraph 149.1(6.4)(d) of the Act, the following conditions are prescribed for a national arts service organization:

• (a) the organization is an organization

  • (i) that is, because of paragraph 149(1)(l) of the Act, exempt from tax under Part I of the Act,

  • (ii) 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,

  • (iii) 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,

  • (iv) 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,

  • (v) more than 50 per cent of the directors, trustees, officers or other officials of which deal with each other at arm’s length, and

  • (vi) 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

• (b) 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

  • (i) promoting one or more art forms,

  • (ii) conducting research into one or more art forms,

  • (iii) sponsoring arts exhibitions or performances,

  • (iv) representing interests of the arts community or a sector thereof (but not of individuals) before governmental, judicial, quasi-judicial or other public bodies,

  • (v) 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,

  • (vi) educating the public about the arts community or the sector represented by the organization,

  • (vii) organizing and sponsoring conventions, conferences, competitions and special events relating to the arts community or the sector represented by the organization,

  • (viii) conducting arts studies and surveys of interest to members of the organization relating to the arts community or the sector represented by the organization,

  • (ix) acting as an information centre by maintaining resource libraries and data bases relating to the arts community or the sector represented by the organization,

  • (x) disseminating information relating to the arts community or the sector represented by the organization, and

  • (xi) 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.