An entity would be a controlled foreign affiliate of a Canadian taxpayer if it is a foreign affiliate of the taxpayer that would, at that time, be controlled by the taxpayer if the taxpayer owned all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm's length with the taxpayer.

Question

Quizplus · Accepted Answer

This is the definition of a controlled foreign affiliate as outlined in the Canadian Income Tax Act.

An Entity Would Be a Controlled Foreign Affiliate of a Canadian