Marginal note:Application of this Part

• 3. (1) Subject to subsection (2), this Part applies to every corporation that carries on business in Canada or that is incorporated under a law of Canada or a province

  • (a) for any reporting period of the corporation in respect of which

    • (i) the gross revenue of the corporation for that reporting period from business carried on by it in Canada, determined in the prescribed manner, exceeded fifteen million dollars or such greater amount as may be prescribed, or

    • (ii) the assets of the corporation as of the last day of that reporting period, determined in the prescribed manner, exceeded ten million dollars or such greater amount as may be prescribed; or

  • (b) for the purposes of section 4, for any reporting period of the corporation in respect of which the value of

    • (i) equity in the corporation held directly or indirectly by persons not resident in Canada,

    • (ii) debt obligations with an original term to maturity of one year or more owing directly or indirectly to persons not resident in Canada, or

    • (iii) debt obligations owing directly or indirectly to affiliates, shareholders or directors of the corporation not resident in Canada

    exceeds a book value of two hundred thousand dollars or such greater amount as may be prescribed.

• Marginal note:Exception

  (2) This Part does not apply to

  • (a) a corporation to which Part II applies;

  • (b) a corporation that is exempted by regulation, to the extent that it is so exempted;

  • (c) a municipality in Canada or a municipal or other public body performing a function of government in Canada;

  • (d) a corporation having as its primary object the furtherance of any religious or other charitable purpose, no part of the income of which is payable to or otherwise available for the personal gain or benefit of any proprietor, member or shareholder thereof; or

  • (e) a corporation, without share capital, having as its primary object the furtherance of any national, patriotic, philanthropic, medical, educational, scientific, artistic, social, fraternal, sporting or athletic purpose, no part of the income of which is payable to or otherwise available for the personal gain or benefit of any proprietor or member thereof.

• Marginal note:Calculation of gross revenue and assets

  (3) For the purposes of subsection (1), the gross revenue and assets of a corporation include the gross revenue and assets of all its affiliates that carry on business in Canada.

• Marginal note:Affiliated corporations

  (4) For the purposes of this section,

  • (a) one corporation is affiliated with another corporation if one of them is the subsidiary of the other or both are subsidiaries of the same corporation or each of them is controlled by the same person or the same related group; and

  • (b) if two corporations are affiliated with the same corporation they are affiliated with each other.