Section 126 — Excise Tax Act: Arm’s length

For the purposes of this Part, related persons shall be deemed not to deal with each other at arm’s length and it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length. Persons are related to each other for the purposes of this Part if, by reason of subsections 251(2) to (6) of the Income Tax Act , they are related to each other for the purposes of that Act. For the purposes of this Part, a member of a partnership shall be deemed to be related to the partnership.