PART I — Income Tax · DIVISION I — Returns, Assessments, Payment and Appeals · Payment of Tax

Definitions

Not yet annotated · Text current to 2026-06-21 · section last amended 2022-12-15

Current text

The following definitions apply in this section.

gross entitlements of a person at any time, in respect of a planning activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. (droits à paiement)

person includes a partnership. (personne)

planning activity has the same meaning as in subsection 163.2(1). (activité de planification)

section 160 avoidance planning by a person, means planning activity in respect of a transaction or series of transactions that

(a)

is, or is part of, a section 160 avoidance transaction; and

(b)

one of the purposes of the transaction or series of transactions is to

(i)

reduce a transferee’s joint and several, or solidary, liability for tax owing under this Act by the transferor (or that would be owing by the transferor if not for a tax attribute transaction), or

(ii)

reduce the person’s or another person’s ability to pay any amount owing, or that may become owing, under this Act. (planification d’évitement en vertu de l’article 160)

section 160 avoidance transaction means a transaction or series of transactions in respect of which

(a)

the conditions set out in paragraph 160(5)(a) or (b) are met; or

(b)

if subsection 160(5) applied to the transaction or series of transactions, the amount determined under subparagraph 160(5)(c)(ii) would exceed the amount determined under subparagraph 160(5)(c)(i). (opération d’évitement en vertu de l’article 160)

tax attribute means a balance, pool or other amount determined under this Act that is or may be relevant in computing income or in determining a taxpayer’s liability for tax under this Act in any taxation year and includes

(a)

a capital loss, non-capital loss, restricted farm loss, farm loss and limited partnership loss;

(b)

an amount that is deductible in computing a person’s income;

(c)

any balance of undeducted outlays, expenses or other amounts;

(d)

paid-up capital in respect of a share of any class of the capital stock of a corporation;

(e)

cost or capital cost of a property;

(f)

an amount deductible from an amount otherwise payable under this Act; and

(g)

an amount that is deemed to have been remitted as an amount payable under this Act. (attribut fiscal)

tax attribute transaction means a transaction or series of transactions in which a tax attribute – of a person that dealt at arm’s length with a transferor or transferee immediately before the transaction or series of transactions – is used, directly or indirectly, to provide a tax benefit for the transferor or transferee (or, if either the transferor or transferee is amalgamated with another corporation, the new corporation within the meaning assigned by subsection 87(1)). (opération d’attribut fiscal)

tax benefit has the same meaning as in subsection 163.2(1). (avantage fiscal)

transferee has the meaning assigned by subsections 160(1) and (5). (bénéficiaire du transfert)

transferor has the meaning assigned by subsections 160(1) and (5). (auteur du transfert)

Penalty

(2)

Every person that engages in, participates in, assents to or acquiesces in planning activity that they know is section 160 avoidance planning, or would reasonably be expected to know is section 160 avoidance planning, but for circumstances amounting to gross negligence is liable to a penalty that is the lesser of

(a)

50% of the amount payable under this Act (determined without reference to this subsection), the joint and several, or solidary, liability for which was sought to be avoided through the planning, and

(b)

the total of $100,000 and the person’s gross entitlements at the time at which the notice of assessment of the penalty is sent to the person in respect of the planning.

Clerical or secretarial services

(3)

Subsection (2) does not apply to a person solely because the person provided clerical services or secretarial services with respect to the planning.

Source: Justice Laws Website. Not an official version.

Historic text

This section has not been amended since it was enacted (2022, c. 19, s. 39), so there is no earlier version.

Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 160.01 links to the one before it.

Enacting and amending legislation

2022, c. 19, s. 39

Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.

Cross-references

This section refers to

s. 87 s. 160 s. 163.2

Referred to in

s. 160

References are generated from the statutory text and list other sections of the Act only.

Citation

Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 160.01.