Income Tax Act
Sections and provisions with full text and the judgments that cite each one.
Section 244.4 — Single transaction
For the purposes of this Part, two or more electronic funds transfers of less than $10,000 each that are made within 24 consecutive hours and that total $10,000 or more are considered to be made in…
Section 244.5 — Foreign currency
If an electronic funds transfer is carried out by a reporting entity in a foreign currency, the amount of the transfer is to be converted into Canadian dollars using the official conversion rate of…
Section 244.6 — Filing of return
An information return in respect of an electronic funds transfer that is required to be filed by a reporting entity under this Part shall be filed not later than five working days after the day of…
Section 244.7 — Record keeping
Every reporting entity that is required to file an information return under this Part shall keep such records as will enable the Minister to determine whether the entity has complied with its duties…
Section 245 — Preamble
This section of the Act contains the general anti-avoidance rule, which applies to deny the tax benefit of avoidance transactions that result directly or indirectly either in a misuse of provisions…
Section 246 — Benefit conferred on a person
Where at any time a person confers a benefit, either directly or indirectly, by any means whatever, on a taxpayer, the amount of the benefit shall, to the extent that it is not otherwise included in…
Section 247 — Definitions
The definitions in this subsection apply in this section. actual conditions , in respect of a transaction or series of transactions, means the conditions that actually apply between any of the…
Section 248 — Definitions
In this Act, absorbed capacity has the same meaning as in subsection 18.2(1); ( capacité absorbée ) active business , in relation to any business carried on by a taxpayer resident in Canada, means…
Section 249 — Definition of taxation year
In this Act, except as expressly otherwise provided, a taxation year is in the case of a corporation or Canadian resident partnership, a fiscal period; in the case of a graduated rate estate, the…
Section 249.1 — Definition of fiscal period
For the purposes of this Act, a fiscal period of a business or a property of a person or partnership means the period for which the person’s or partnership’s accounts in respect of the business or…
Section 250 — Person deemed resident
For the purposes of this Act, a person shall, subject to subsection 250(2), be deemed to have been resident in Canada throughout a taxation year if the person sojourned in Canada in the year for a…
Section 250.1 — Non-resident person’s taxation year and income
For greater certainty, unless the context requires otherwise a taxation year of a non-resident person shall be determined, except as otherwise permitted by the Minister, in the same manner as the…
Section 251 — Arm’s length
For the purposes of this Act, related persons shall be deemed not to deal with each other at arm’s length; a taxpayer and a personal trust (other than a trust described in any of paragraphs (a) to…
Section 251.1 — Definition of affiliated persons
For the purposes of this Act, affiliated persons , or persons affiliated with each other, are an individual and a spouse or common-law partner of the individual; a corporation and a person by whom…
Section 251.2 — Definitions
The following definitions apply in this section. beneficiary has the same meaning as in subsection 251.1(3). ( bénéficiaire ) equity has the same meaning as in subsection 122.1(1) read without…
Section 252 — Extended meaning of child
In this Act, words referring to a child of a taxpayer include a person of whom the taxpayer is the legal parent; a person who is wholly dependent on the taxpayer for support and of whom the taxpayer…
Section 252.1 — Union employer
All the structural units of a trade union, including each local, branch, national and international unit, shall be deemed to be a single employer and a single entity for the purposes of the…
Section 253 — Extended meaning of carrying on business
For the purposes of this Act, where in a taxation year a person who is a non-resident person or a trust to which Part XII.2 applies produces, grows, mines, creates, manufactures, fabricates,…
Section 253.1 — Investments in limited partnerships
For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 146.1(2.1)(c), subsection 146.2(6), paragraph 146.4(5)(b), subsections 146.6(3) and 147.5(8),…
Section 254 — Contract under pension plan
Where a document has been issued or a contract has been entered into before July 31, 1997 purporting to create, to establish, to extinguish or to be in substitution for, a taxpayer’s right to an…
Section 255 — Canada
For the purposes of this Act, Canada is hereby declared to include and to have always included the sea bed and subsoil of the submarine areas adjacent to the coasts of Canada in respect of which the…
Section 256 — Associated corporations
For the purposes of this Act, one corporation is associated with another in a taxation year if, at any time in the year, one of the corporations controlled, directly or indirectly in any manner…
Section 256.1 — Definitions
The following definitions apply in this section. attribute trading restriction means a restriction on the use of a tax attribute arising on the application, either alone or in combination with other…
Section 257 — Negative amounts
Except as specifically otherwise provided, where an amount or a number is required under this Act to be determined or calculated by or in accordance with an algebraic formula, if the amount or number…
Section 258 — Deemed dividend on term preferred share
Notwithstanding subsection 15(3), an amount paid or payable after 1978 as interest on or as an amount in lieu of interest in respect of any interest or dividend payable after November 16, 1978 on an…
Section 259 — Proportional holdings in trust property
For the purposes of designated provisions, if at any time a specified taxpayer acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that…
Section 260 — Definitions
In this section dealer compensation payment means an amount received by a taxpayer as compensation, for an underlying payment, from a registered securities dealer resident in Canada who paid the…
Section 261 — Definitions
The following definitions apply in this section. Canadian currency year of a taxpayer means a taxation year that precedes the first functional currency year of the taxpayer. ( année de déclaration en…
Section 262 — Authority to designate stock exchange
The Minister of Finance may designate a stock exchange, or a part of a stock exchange, for the purposes of this Act. The Minister of Finance may revoke the designation of a stock exchange, or a part…
Section 263 — Definitions
The following definitions apply in this Part. agreement has the same meaning as in section 2 of the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act . ( accord )…
Section 264 — Designation of account
Subject to subsection (2), a reporting Canadian financial institution may designate a financial account to not be a U.S. reportable account for a calendar year if the account is a preexisting…
Section 265 — Identification obligation — financial accounts
Every reporting Canadian financial institution shall establish, maintain and document the due diligence procedures set out in subsections (2) and (3). Every reporting Canadian financial institution…
Section 266 — Reporting — U.S. reportable accounts
Every reporting Canadian financial institution shall file with the Minister, before May 2 of each calendar year, an information return in prescribed form relating to each U.S. reportable account…
Section 267 — Record keeping
Every reporting Canadian financial institution shall keep, at the institution’s place of business or at such other place as may be designated by the Minister, records that the institution obtains or…
Section 268 — Anti-avoidance
If a person enters into an arrangement or engages in a practice, the primary purpose of which can reasonably be considered to be to avoid an obligation under this Part, the person is subject to the…
Section 269 — Deemed-compliant FFI
If a Canadian financial institution makes a reasonable determination that it is to be treated as a deemed-compliant FFI under Annex II to the agreement, this Part applies to the institution, with…
Section 270 — Definitions
The following definitions apply in this Part. account holder means the person listed or identified as the holder of a financial account by the financial institution that maintains the account, other…
Section 271 — General reporting requirements
Subject to subsections (3) and (4), each reporting financial institution must report the following information to the Minister with respect to each of its reportable accounts: the name, address,…
Section 272 — General due diligence rules
An account is treated as a reportable account as of the date it is identified as a reportable account under the due diligence procedures set out in this section and in sections 273 to 277. The…
Section 273 — Due diligence for preexisting individual accounts
A preexisting individual account that is a cash value insurance contract or an annuity contract is not required to be reviewed, identified or reported, if the reporting financial institution is…
Section 274 — Due diligence – new individual accounts
Upon opening a new individual account, the reporting financial institution must obtain a self-certification (which may be a part of the account opening documentation) that allows the reporting…
Section 275 — Due diligence – preexisting entity accounts
Unless the reporting financial institution elects otherwise — either with respect to all preexisting entity accounts or, separately, with respect to any clearly identified group of those accounts — a…
Section 276 — Due diligence for new entity accounts
For new entity accounts, a reporting financial institution must apply the following review procedures to determine whether the account is held by one or more reportable persons or by passive NFEs…
Section 277 — Special due diligence rules
A reporting financial institution may not rely on a self-certification or documentary evidence if the reporting financial institution knows or has reason to know that the self-certification or…
Section 278 — Reporting
Every reporting financial institution shall file with the Minister, before May 2 of each calendar year, an information return in prescribed form relating to each reportable account maintained by the…
Section 279 — Record keeping
Every reporting financial institution shall keep, at the institution’s place of business or at such other place as may be designated by the Minister, records that the institution obtains or creates…
Section 280 — Anti-avoidance
If a person enters into an arrangement or engages in a practice, the primary purpose of which can reasonably be considered to be to avoid an obligation under this Part, the person is subject to the…
Section 281 — Production of TIN
Every reportable person shall provide their TIN at the request of a reporting financial institution that is required under this Part to make an information return requiring the TIN. A person required…
Section 282 — Definitions
The following definitions apply in this Part. active seller means a seller that either provides relevant services or sells goods during the reportable period or is paid or credited consideration in…
Section 283 — Excluded seller
For the purpose of determining whether a seller is an excluded seller under paragraph (a) or (d) of that definition in subsection 282(1), a reporting platform operator may rely on its available…