CANADA : FOREIGN INVESTMENT REGULATIONS : INDIGENOUS SOVEREIGNTY COMPARISONS : MUTUAL INTERESTS EXPLORATORY ANALYSIS : SUMMARY

FOREIGN INVESTMENT ON CANADA'S FIRST NATIONS RESERVES - UPDATED ANALYSIS
APR 5TH     SINCE TIME BEGAN : salus populi suprema est lex - the right of the people is the supreme law : IN TRUTH WE TRUST     2018 ADE
CANADA FOREIGN INVESTMENT REGULATIONS : TRENDS : REAL ESTATE PORTFOLIOS : STATISTICS CANADA SURVEYS : ECONOMICS REPORT 2017 DEC  : 2018 JANUARY SUMMARES
FOREIGN INVESTMENT POLICY CANADA : NON-RESIDENT REAL ESTATE BUYERS

Innovation, Science and Economic Development Canada works closely with Global Affairs Canada to encourage foreign companies to invest in Canada and to promote an open, rules-based global investment regime. Canada's foreign investment policy framework provides a welcoming environment that seeks to maximize the benefits of foreign direct investment for Canadians, while preserving other public policy interests. Foreign investment rules provide for the review of significant investments in Canada by non-Canadians in a fast-changing global investment landscape.
The Investment Canada Act and Regulations prescribe the legal responsibilities of non-Canadians investing in Canada and the information which they are required to submit. 
Purpose of Act
2 Recognizing that increased capital and technology benefits Canada, and recognizing the importance of protecting national security, the purposes of this Act are to provide for the review of significant investments in Canada by non-Canadians in a manner that encourages investment, economic growth and employment opportunities in Canada and to provide for the review of investments in Canada by non-Canadians that could be injurious to national security.
Exemptions
Marginal note:Exempt transactions
  • 10 (1) This Act, other than Part IV.1, does not apply in respect of
    • (a) the acquisition of voting shares or other voting interests by any person in the ordinary course of that person’s business as a trader or dealer in securities;
    • (b) the acquisition of voting interests by any person in the ordinary course of a business carried on by that person that consists of providing, in Canada, venture capital on terms and conditions not inconsistent with such terms and conditions as may be fixed by the Minister;
    • (c) the acquisition of control of a Canadian business in connection with the realization of security granted for a loan or other financial assistance and not for any purpose related to the provisions of this Act, if the acquisition is subject to approval under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act;
    • (d) the acquisition of control of a Canadian business for the purpose of facilitating its financing and not for any purpose related to the provisions of this Act on the condition that the acquirer divest himself of control within two years after it is acquired or within such longer period as is approved by the Minister;
    • (e) the acquisition of control of a Canadian business by reason of an amalgamation, a merger, a consolidation or a corporate reorganization following which the ultimate direct or indirect control in fact of the Canadian business, through the ownership of voting interests, remains unchanged;
    • (f) the acquisition of control of a Canadian business carried on by an agent of Her Majesty in right of Canada or a province or by a Crown corporation within the meaning of the Financial Administration Act;
    • (g) the acquisition of control of a Canadian business carried on by a corporation the taxable income of which is exempt from tax under Part I of the Income Tax Act by virtue of paragraph 149(1)(d) of that Act;
    • (h) any transaction to which Part XII.01 of the Bank Act applies;
    • (i) the involuntary acquisition of control of a Canadian business on the devolution of an estate or by operation of law;
    • (j) the acquisition of control of a Canadian business by
      • (i) an insurance company incorporated in Canada that is a company or a provincial company to which the Insurance Companies Act applies, on the condition that the gross investment revenue of the company from the Canadian business is included in computing the income of the company under subsection 138(9) of the Income Tax Act,
      • (ii) a foreign entity that has been approved by order of the Superintendent of Financial Institutions under Part XIII of the Insurance Companies Act to insure in Canada risks, on the condition that the gross investment revenue of the company from the Canadian business is included in computing the income of the company under subsection 138(9) of the Income Tax Act and the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under that Part, or
      • (iii) a corporation incorporated in Canada, all the issued voting shares of which, other than the qualifying voting shares of directors, are owned by an insurance company described in subparagraph (i), a foreign entity described in subparagraph (ii) or by a corporation controlled directly or indirectly through the ownership of voting shares by such an insurance company or foreign entity, on the condition that, in the case of a foreign entity described in subparagraph (ii), the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under Part XIII of the Insurance Companies Act; and
    • (k) the acquisition of control of a Canadian business the revenue of which is generated from farming carried out on the real property acquired in the same transaction.
  • Marginal note:Exempt transactions — Part IV
    (1.1) Part IV does not apply in respect of the acquisition of control of a Canadian business in connection with the realization of security granted for a loan or other financial assistance and not for any purpose related to the provisions of this Act, if the acquisition is not subject to approval under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act.
  • Marginal note:Exempt transactions — Part IV.1
    (2) Part IV.1 does not apply in respect of
    • (a) the acquisition of control of a Canadian business in connection with the realization of security granted for a loan or other financial assistance and not for any purpose related to the provisions of this Act, if the acquisition is subject to approval under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act;
    • (b) the acquisition of control of a Canadian business by reason of an amalgamation, a merger, a consolidation or a corporate reorganization following which the ultimate direct or indirect control in fact of the Canadian business, through the ownership of voting interests, remains unchanged, if the acquisition is subject to approval under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act;
    • (c) the acquisition of control of a Canadian business carried on by an agent of Her Majesty in right of Canada or a province or by a Crown corporation within the meaning of the Financial Administration Act;
    • (d) any transaction to which Part XII.01 of the Bank Act applies; or
    • (e) the acquisition of control of a Canadian business by any of the following entities, if the acquisition is subject to approval under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act:
      • (i) an insurance company incorporated in Canada that is a company or a provincial company to which the Insurance Companies Act applies, on the condition that the gross investment revenue of the company from the Canadian business is included in computing the income of the company under subsection 138(9) of the Income Tax Act,
      • (ii) a foreign entity that has been approved by order of the Superintendent of Financial Institutions under Part XIII of the Insurance Companies Act to insure in Canada risks, on the condition that the gross investment revenue of the company from the Canadian business is included in computing the income of the company under subsection 138(9) of the Income Tax Act and the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under that Part, or
      • (iii) a corporation incorporated in Canada, all the issued voting shares of which, other than the qualifying voting shares of directors, are owned by an insurance company described in subparagraph (i), by a foreign entity described in subparagraph (ii) or by a corporation controlled directly or indirectly through the ownership of voting shares by such an insurance company or foreign entity, on the condition that, in the case of a foreign entity described in subparagraph (ii), the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under Part XIII of the Insurance Companies Act.
  • Marginal note:
    If condition not complied with
    (3) If any condition referred to in paragraph (1)(d) or (j) or (2)(e) is not complied with, the exemption under that paragraph does not apply and the transaction referred to in that paragraph is subject to this Act as if it had never been exempt.
  • R.S., 1985, c. 28 (1st Supp.), s. 10;
  •  1991, c. 46, s. 600, c. 47, s. 735;
  •  2001, c. 9, s. 589;
  •  2007, c. 6, s. 439;
  •  2009, c. 2, s. 447;
  •  2014, c. 39, s. 186.
Further information
For further information, see:
Foreign investment policy is the responsibility of the Investment, Insolvency, Competition and Corporate Policy Directorate, which is part of the Marketplace Framework Policy Branch.
The manner of calculating the value of the Canadian business that is the subject of the investment is prescribed in Section 3.1 of the Investment Canada Regulations and is based on the Canadian business' asset value as shown on the balance sheet of the Canadian business at the end of the last completed fiscal year before its proposed acquisition. Indirect acquisitions involving a WTO investor, including a state-owned enterprise, are not reviewable, but are nonetheless subject to notification. However, this exception does not apply to cultural businesses.
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