Versions of s. 212(3.2)

I-3.3 — Income Tax Act · 3 versions · View current text

Historical text comes from the Justice Laws point-in-time corpus and is unofficial — not the official version.

2017-12-14 to present available View Source

If this subsection applies at any time in respect of a taxpayer, then for the purposes of paragraph (1)(b), the taxpayer is deemed, at that time, to pay interest to each ultimate funder, the amount of which is determined for each particular ultimate funder by the formula(A – B) × C/D × (E – F)/E where A is the particular amount referred to in paragraph (3.1)(a); B is the portion, if any, of the particular amount deemed by subsection 214(16) to have been paid by the taxpayer as a dividend; C is the average of all amounts each of which is, at a particular time in the relevant period, the amount determined by the formula G – H where G is the lesser of the following amounts: the amount of the particular debt or other obligation referred to in paragraph (3.1)(a) outstanding at the particular time, and the total of all amounts each of which is at that particular time an amount outstanding as or on account of a debt or other obligation that is owed to the particular ultimate funder under a relevant funding arrangement, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of which the particular ultimate funder has granted a specified right under a relevant funding arrangement, or if neither subparagraph (i) nor (ii) applies at that particular time, nil, and H is the total of all amounts each of which is, at the particular time, the amount that is an amount outstanding as or on account of a debt or other obligation that is owed by the particular ultimate funder under a relevant funding arrangement, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of which the particular ultimate funder has a specified right under a relevant funding arrangement, or if neither paragraph (a) nor (b) applies at that particular time, nil; D is the average of all amounts each of which is the amount of the particular debt or other obligation outstanding at a time in the relevant period; E is the rate of tax (determined without reference to subsection 214(16)) that would be imposed under this Part on the particular amount if the particular amount were paid by the taxpayer to the particular ultimate funder at that time; and F is the rate of tax (determined without reference to subsection 214(16)) imposed under this Part on the immediate funder in respect of all or the portion of the particular amount paid or credited to the immediate funder.

Full text

If this subsection applies at any time in respect of a taxpayer, then for the purposes of paragraph (1)(b), the taxpayer is deemed, at that time, to pay interest to each ultimate funder, the amount of which is determined for each particular ultimate funder by the formula(A – B) × C/D × (E – F)/E where A is the particular amount referred to in paragraph (3.1)(a); B is the portion, if any, of the particular amount deemed by subsection 214(16) to have been paid by the taxpayer as a dividend; C is the average of all amounts each of which is, at a particular time in the relevant period, the amount determined by the formula G – H where G is the lesser of the following amounts: the amount of the particular debt or other obligation referred to in paragraph (3.1)(a) outstanding at the particular time, and the total of all amounts each of which is at that particular time an amount outstanding as or on account of a debt or other obligation that is owed to the particular ultimate funder under a relevant funding arrangement, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of which the particular ultimate funder has granted a specified right under a relevant funding arrangement, or if neither subparagraph (i) nor (ii) applies at that particular time, nil, and H is the total of all amounts each of which is, at the particular time, the amount that is an amount outstanding as or on account of a debt or other obligation that is owed by the particular ultimate funder under a relevant funding arrangement, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of which the particular ultimate funder has a specified right under a relevant funding arrangement, or if neither paragraph (a) nor (b) applies at that particular time, nil; D is the average of all amounts each of which is the amount of the particular debt or other obligation outstanding at a time in the relevant period; E is the rate of tax (determined without reference to subsection 214(16)) that would be imposed under this Part on the particular amount if the particular amount were paid by the taxpayer to the particular ultimate funder at that time; and F is the rate of tax (determined without reference to subsection 214(16)) imposed under this Part on the immediate funder in respect of all or the portion of the particular amount paid or credited to the immediate funder.
2017-01-01 to 2017-12-14 View Source

If this subsection applies at any time in respect of a taxpayer, then for the purposes of paragraph (1)(b), the taxpayer is deemed, at that time, to pay interest to aeach ~~non-resident~~ultimate ~~person referred to in subparagraph (3.1)(c)(i) or (ii),~~funder, the amount of which is determined for each particular ultimate funder by the ~~formula[(A~~formula(A – B) × ~~B/C) – D]~~C/D × (E – F)/E where A is the particular amount referred to in paragraph (3.1)(a); B is the portion, if any, of the particular amount deemed by subsection 214(16) to have been paid by the taxpayer as a dividend; C is the average of all amounts each of which is, at a particular time in the relevant period, the amount determined by the formula G – H where G is the lesser of the following amounts: the amount of the particular debt or other obligation referred to in paragraph (3.1)(a) outstanding at athe particular ~~time in the relevant period;~~time, and the total of all amounts each of which is at that particular time an amount outstanding as or on account of ~~an intermediary debt, in respect of the particular~~a debt or other ~~obligation,~~obligation that is owed to the ~~non-resident~~particular ~~person,~~ultimate funder under a relevant funding arrangement, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of which the particular ultimate funder has granted a specified right under a relevant funding arrangement, or if neither subparagraph (i) nor (ii) applies at that particular time, nil, and H is the total of all amounts each of which is, at the particular time, the amount that is an amount outstanding as or on account of a debt or other ~~obligation,~~obligation that is owed by the particular ultimate funder under a relevant funding arrangement, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of which the particular ultimate funder has a specified right under a relevant funding arrangement, or if neither ~~clause~~paragraph ~~(A)~~(a) nor ~~(B)~~(b) applies at that particular time, nil; CD is the average of all amounts each of which is the amount of the particular debt or other obligation outstanding at a time in the relevant period; ~~D is the portion, if any, of the particular amount deemed by subsection 214(16) to have been paid by the taxpayer as a dividend;~~ E is the rate of tax (determined without reference to subsection 214(16)) that would be imposed under this Part on the particular amount if the particular amount were paid by the taxpayer to the ~~non-resident~~particular ~~person~~ultimate funder at that time; and F is the rate of tax (determined without reference to subsection 214(16)) imposed under this Part on the ~~intermediary~~immediate funder in respect of all or the portion of the particular amount paid or credited to the ~~intermediary.~~immediate funder.

Full text

If this subsection applies at any time in respect of a taxpayer, then for the purposes of paragraph (1)(b), the taxpayer is deemed, at that time, to pay interest to each ultimate funder, the amount of which is determined for each particular ultimate funder by the formula(A – B) × C/D × (E – F)/E where A is the particular amount referred to in paragraph (3.1)(a); B is the portion, if any, of the particular amount deemed by subsection 214(16) to have been paid by the taxpayer as a dividend; C is the average of all amounts each of which is, at a particular time in the relevant period, the amount determined by the formula G – H where G is the lesser of the following amounts: the amount of the particular debt or other obligation referred to in paragraph (3.1)(a) outstanding at the particular time, and the total of all amounts each of which is at that particular time an amount outstanding as or on account of a debt or other obligation that is owed to the particular ultimate funder under a relevant funding arrangement, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of which the particular ultimate funder has granted a specified right under a relevant funding arrangement, or if neither subparagraph (i) nor (ii) applies at that particular time, nil, and H is the total of all amounts each of which is, at the particular time, the amount that is an amount outstanding as or on account of a debt or other obligation that is owed by the particular ultimate funder under a relevant funding arrangement, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of which the particular ultimate funder has a specified right under a relevant funding arrangement, or if neither paragraph (a) nor (b) applies at that particular time, nil; D is the average of all amounts each of which is the amount of the particular debt or other obligation outstanding at a time in the relevant period; E is the rate of tax (determined without reference to subsection 214(16)) that would be imposed under this Part on the particular amount if the particular amount were paid by the taxpayer to the particular ultimate funder at that time; and F is the rate of tax (determined without reference to subsection 214(16)) imposed under this Part on the immediate funder in respect of all or the portion of the particular amount paid or credited to the immediate funder.
2014-12-16 to 2017-01-01 View Source

If this subsection applies at any time in respect of a taxpayer, then for the purposes of paragraph (1)(b), the taxpayer is deemed, at that time, to pay interest to a non-resident person referred to in subparagraph (3.1)(c)(i) or (ii), the amount of which is determined by the formula[(A × B/C) – D] × (E – F)/E where A is the particular amount referred to in paragraph (3.1)(a); B is the average of all amounts each of which is the lesser of the amount of the particular debt or other obligation referred to in paragraph (3.1)(a) outstanding at a particular time in the relevant period; and the total of all amounts each of which is at that particular time an amount outstanding as or on account of an intermediary debt, in respect of the particular debt or other obligation, that is owed to the non-resident person, the fair market value of a particular property referred to in subparagraph (3.1)(c)(ii) in respect of the particular debt or other obligation, or if neither clause (A) nor (B) applies at that particular time, nil; C is the average of all amounts each of which is the amount of the particular debt or other obligation outstanding at a time in the relevant period; D is the portion, if any, of the particular amount deemed by subsection 214(16) to have been paid by the taxpayer as a dividend; E is the rate of tax (determined without reference to subsection 214(16)) that would be imposed under this Part on the particular amount if the particular amount were paid by the taxpayer to the non-resident person at that time; and F is the rate of tax (determined without reference to subsection 214(16)) imposed under this Part on the intermediary in respect of all or the portion of the particular amount paid or credited to the intermediary.