VIII, s. 1161998, c. 19, s. 208
191.5(1)The following definition applies in this Part.bank or life insurer group memberbank or life insurer group membermeans a corporation that is(a)a bank;(b)a life insurance corporation that carries on business in Canada; or(c)afinancial institution(as defined in subsection 190(1)) that is related to any corporation described in paragraph (a) or (b). (membre d’un groupe de banques ou d’assureurs-vie)Marginal note:Tax payable(2)Every corporation that is a bank or life insurer group member at any time during a 2021 taxation year shall pay a tax under this Part for its 2022 taxation year equal to the amount determined by the formula0.15 [(A ÷ 2) − B]whereAis the corporation’s total taxable income (or taxable income earned in Canada if the corporation is non-resident) for(a)2020 taxation years of the corporation, determined under Part I, without regard to paragraphs 111(1)(a) and (b), and(b)2021 taxation years of the corporation, determined under Part I, without regard to paragraphs 111(1)(a) and (b); andBis(a)if the corporation is not related to another bank or life insurer group member at the end of each 2021 taxation year of the corporation, $1 billion, and(b)in any other case, the amount determined under subsection (7).Marginal note:Multiple 2022 taxation years(3)If a corporation has more than one 2022 taxation year, the latest 2022 taxation year is the 2022 taxation year for the purposes of subsection (2).Marginal note:Multiple 2020 and 2021 taxation years(4)For the purposes of subsection (2),(a)if a corporation has more than one 2020 taxation year and the aggregate number of days in all its 2020 taxation years is greater than 365 days, the amount determined for the corporation under paragraph (a) of the description of A in subsection (2) shall be reduced to that proportion of that amount that 365 is of the aggregate number of days in all 2020 taxation years; and(b)if a corporation has more than one 2021 taxation year and the aggregate number of days in all its 2021 taxation years is greater than 365 days, the amount determined for the corporation under paragraph (b) of the description of A in subsection (2) shall be reduced to that proportion of that amount that 365 is of the aggregate number of days in all 2021 taxation years.Marginal note:Related group(5)A corporation that is described in paragraph (a) or (b) of the definitionbank or life insurer group memberin subsection (1) at any time during a 2021 taxation year and that was related to any other bank or life insurer group member at the end of the year (in this section, the corporation and each such bank or life insurer group member are referred to together as a “related group”) may file with the Minister an agreement in prescribed form, with the prescribed form referred to in subsection (8), on behalf of the related group under which an amount that does not exceed $1 billion is allocated among the members of the related group for the taxation year.Marginal note:Allocation by Minister(6)The Minister may request a corporation that is member of a related group at any time during the 2021 taxation year to file with the Minister an agreement referred to in subsection (5) and, if the corporation does not file the agreement within 30 days after receiving the request, the Minister may allocate the amount referred to in subsection (5) among the members of the related group for the taxation year.Marginal note:Allocation(7)For the purposes of this Part, the least amount allocated for the taxation year to each bank or life insurer group member under an agreement described in subsection (5) or by the Minister under subsection (6) is the amount determined for B in subsection (2) for the taxation year of that member, but, if no such allocation is made, the amount determined for B in subsection (2) of each bank and life insurer group member for the year is nil.Marginal note:Return(8)A corporation that is a bank or life insurer group member shall file with the Minister, no later than the day on or before which the corporation is required by section 150 to file its return of income for the 2022 taxation year under Part I, a prescribed form containing prescribed information.Marginal note:Instalments(9)A corporation liable to pay tax for the 2022 taxation year under this Part shall pay 1/5 of the tax to the Receiver General on or before its balance-due day for the 2022 and each of the four subsequent taxation years.
(a)a bank;(b)a life insurance corporation that carries on business in Canada; or(c)afinancial institution(as defined in subsection 190(1)) that is related to any corporation described in paragraph (a) or (b). (membre d’un groupe de banques ou d’assureurs-vie)
(a)2020 taxation years of the corporation, determined under Part I, without regard to paragraphs 111(1)(a) and (b), and(b)2021 taxation years of the corporation, determined under Part I, without regard to paragraphs 111(1)(a) and (b); and
(a)if the corporation is not related to another bank or life insurer group member at the end of each 2021 taxation year of the corporation, $1 billion, and(b)in any other case, the amount determined under subsection (7).
(a)if a corporation has more than one 2020 taxation year and the aggregate number of days in all its 2020 taxation years is greater than 365 days, the amount determined for the corporation under paragraph (a) of the description of A in subsection (2) shall be reduced to that proportion of that amount that 365 is of the aggregate number of days in all 2020 taxation years; and(b)if a corporation has more than one 2021 taxation year and the aggregate number of days in all its 2021 taxation years is greater than 365 days, the amount determined for the corporation under paragraph (b) of the description of A in subsection (2) shall be reduced to that proportion of that amount that 365 is of the aggregate number of days in all 2021 taxation years.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2022, c. 19, s. 48
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2022, c. 19, s. 48
192(1)Every corporation shall pay a tax under this Part for a taxation year equal to the total of all amounts each of which is an amount designated under subsection 192(4) in respect of a share issued by it in the year.Definition ofPart VII refund(2)In this Part, thePart VII refundof a corporation for a taxation year means an amount equal to the lesser of(a)the total of(i)the amount, if any, by which the share-purchase tax credit of the corporation for the year exceeds the amount, if any, deducted in respect thereof by it for the year under subsection 127.2(1) from its tax otherwise payable under Part I for the year or the amount deemed by subsection 127.2(2) to have been paid on account of its tax payable under Part I for the year, as the case may be, and(ii)such amount as the corporation may claim, not exceeding the amount that would, if paragraph (i) of the definitioninvestment tax creditin subsection 127(9) were read without reference to the words “the year or”, be its investment tax credit at the end of the year in respect of property acquired, or an expenditure made, after April 19, 1983 and on or before the last day of the year, and(b)the refundable Part VII tax on hand of the corporation at the end of the year.Definition ofrefundable Part VII tax on hand(3)In this Part,refundable Part VII tax on handof a corporation at the end of a taxation year means the amount, if any, by which(a)the total of the taxes payable by it under this Part for the year and all preceding taxation yearsexceeds the total of(b)the total of its Part VII refunds for all preceding taxation years, and(c)the total of all amounts each of which is an amount of tax included in the total described in paragraph 192(3)(a) in respect of a share that was issued by the corporation and that, at the time it was issued, was not a qualifying share.Marginal note:Corporation may designate amount(4)Every taxable Canadian corporation may, by filing a prescribed form with the Minister at any time on or before the last day of the month immediately following the month in which it issued a qualifying share of its capital stock (other than a share issued before July, 1983 or after 1986, or a share in respect of which the corporation has, on or before that day, designated an amount under subsection 194(4)), designate, for the purposes of this Part and Part I, an amount in respect of that share not exceeding 25% of the amount by which(a)the amount of the consideration for which the share was issuedexceeds(b)the amount of any assistance (other than an amount included in computing the share-purchase tax credit of a taxpayer in respect of that share) provided or to be provided by a government, municipality or any other public authority in respect of, or for the acquisition of, the share.Marginal note:Computing paid-up capital after designation(4.1)Where a corporation has designated an amount under subsection 192(4) in respect of shares issued at any time after May 23, 1985, in computing, at any particular time after that time, the paid-up capital in respect of the class of shares of the capital stock of the corporation that includes those shares(a)there shall be deducted the amount, if any, by which(i)the increase as a result of the issue of those shares in the paid-up capital in respect of all shares of that class, determined without reference to this subsection as it applies to those shares,exceeds(ii)the amount, if any, by which the total amount of consideration for which those shares were issued exceeds the total amount designated by the corporation under subsection 192(4) in respect of those shares; and(b)there shall be added an amount equal to the lesser of(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause 192(4.1)(b)(i)(A) if this Act were read without reference to paragraph 192(4.1)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 192(4.1)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 23, 1985 and before the particular time.Marginal note:Presumption(5)For the purposes of this Act, the Part VII refund of a corporation for a taxation year shall be deemed to be an amount paid on account of its tax under this Part for the year on the last day of the second month following the end of the year.Definition ofqualifying share(6)In this Part,qualifying share, at any time, means a prescribed share of the capital stock of a taxable Canadian corporation issued after May 22, 1985 and before 1987.Marginal note:Effect of obligation to acquire shares(7)When determining under section 251 whether a corporation and any other person do not deal with each other at arm’s length for the purposes of any regulations made for the purposes of subsection 192(6), a person who has an obligation in equity, under a contract or otherwise, either immediately or in the future and either absolutely or contingently, to acquire shares in a corporation, shall be deemed to be in the same position in relation to the control of the corporation as if that person owned the shares.Marginal note:Late designation(8)Where a taxable Canadian corporation that issued a share does not designate an amount under subsection 192(4) in respect of the share on or before the day on or before which the designation was required by that subsection, the corporation shall be deemed to have made the designation on that day if(a)the corporation has filed with the Minister a prescribed information return relating to the share-purchase tax credit in respect of the share within the time that it would have been so required to file the return had the designation been made on that day, and(b)within 3 years after that day, the corporation has(i)designated an amount in respect of the share by filing a prescribed form with the Minister, and(ii)paid to the Receiver General, at the time the prescribed form referred to in subparagraph 192(8)(b)(i) is filed, an amount that is a reasonable estimate of the penalty payable by the corporation for the late designation in respect of the share,except that, where the Minister has mailed a notice to the corporation that a designation has not been made in respect of the share under subsection 192(4), the designation and payment described in paragraph 192(8)(b) must be made by the corporation on or before the day that is 90 days after the day of the mailing.Marginal note:Penalty for late designation(9)Where, pursuant to subsection 192(8), a corporation made a late designation in respect of a share issued in a month, the corporation shall pay, for each month or part of a month that elapsed during the period beginning on the last day on or before which an amount could have been designated by the corporation under subsection 192(4) in respect of the share and ending on the day that the late designation is made, a penalty for the late designation in respect of the share in an amount equal to 1% of the amount designated in respect of the share, except that the maximum penalty payable under this subsection by the corporation for a month shall not exceed $500.Marginal note:Deemed deduction(10)For the purposes of this Act, other than the definitioninvestment tax creditin subsection 127(9), the amount, if any, claimed under subparagraph 192(2)(a)(ii) by a taxpayer for a taxation year shall be deemed to have been deducted by the taxpayer under subsection 127(5) for the year.Marginal note:Restriction(11)Where at any time a corporation has designated an amount under subsection 192(4) in respect of a share, no amount may be designated by the corporation at any subsequent time in respect of that share.
(a)the total of(i)the amount, if any, by which the share-purchase tax credit of the corporation for the year exceeds the amount, if any, deducted in respect thereof by it for the year under subsection 127.2(1) from its tax otherwise payable under Part I for the year or the amount deemed by subsection 127.2(2) to have been paid on account of its tax payable under Part I for the year, as the case may be, and(ii)such amount as the corporation may claim, not exceeding the amount that would, if paragraph (i) of the definitioninvestment tax creditin subsection 127(9) were read without reference to the words “the year or”, be its investment tax credit at the end of the year in respect of property acquired, or an expenditure made, after April 19, 1983 and on or before the last day of the year, and(b)the refundable Part VII tax on hand of the corporation at the end of the year.
(i)the amount, if any, by which the share-purchase tax credit of the corporation for the year exceeds the amount, if any, deducted in respect thereof by it for the year under subsection 127.2(1) from its tax otherwise payable under Part I for the year or the amount deemed by subsection 127.2(2) to have been paid on account of its tax payable under Part I for the year, as the case may be, and(ii)such amount as the corporation may claim, not exceeding the amount that would, if paragraph (i) of the definitioninvestment tax creditin subsection 127(9) were read without reference to the words “the year or”, be its investment tax credit at the end of the year in respect of property acquired, or an expenditure made, after April 19, 1983 and on or before the last day of the year, and
(a)the total of the taxes payable by it under this Part for the year and all preceding taxation years
(b)the total of its Part VII refunds for all preceding taxation years, and(c)the total of all amounts each of which is an amount of tax included in the total described in paragraph 192(3)(a) in respect of a share that was issued by the corporation and that, at the time it was issued, was not a qualifying share.
(a)the amount of the consideration for which the share was issued
(b)the amount of any assistance (other than an amount included in computing the share-purchase tax credit of a taxpayer in respect of that share) provided or to be provided by a government, municipality or any other public authority in respect of, or for the acquisition of, the share.
(a)there shall be deducted the amount, if any, by which(i)the increase as a result of the issue of those shares in the paid-up capital in respect of all shares of that class, determined without reference to this subsection as it applies to those shares,exceeds(ii)the amount, if any, by which the total amount of consideration for which those shares were issued exceeds the total amount designated by the corporation under subsection 192(4) in respect of those shares; and(b)there shall be added an amount equal to the lesser of(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause 192(4.1)(b)(i)(A) if this Act were read without reference to paragraph 192(4.1)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 192(4.1)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 23, 1985 and before the particular time.
(i)the increase as a result of the issue of those shares in the paid-up capital in respect of all shares of that class, determined without reference to this subsection as it applies to those shares,
(ii)the amount, if any, by which the total amount of consideration for which those shares were issued exceeds the total amount designated by the corporation under subsection 192(4) in respect of those shares; and
(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause 192(4.1)(b)(i)(A) if this Act were read without reference to paragraph 192(4.1)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 192(4.1)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 23, 1985 and before the particular time.
(A)the total of all amounts each of which is an amount deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular time
(B)the total that would be determined under clause 192(4.1)(b)(i)(A) if this Act were read without reference to paragraph 192(4.1)(a), and
(a)the corporation has filed with the Minister a prescribed information return relating to the share-purchase tax credit in respect of the share within the time that it would have been so required to file the return had the designation been made on that day, and(b)within 3 years after that day, the corporation has(i)designated an amount in respect of the share by filing a prescribed form with the Minister, and(ii)paid to the Receiver General, at the time the prescribed form referred to in subparagraph 192(8)(b)(i) is filed, an amount that is a reasonable estimate of the penalty payable by the corporation for the late designation in respect of the share,
(i)designated an amount in respect of the share by filing a prescribed form with the Minister, and(ii)paid to the Receiver General, at the time the prescribed form referred to in subparagraph 192(8)(b)(i) is filed, an amount that is a reasonable estimate of the penalty payable by the corporation for the late designation in respect of the share,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1 “192”1973-74, c. 14, s. 62(F)1974-75-76, c. 26, s. 1111976-77, c. 4, s. 661977-78, c. 1, s. 881984, c. 1, s. 95, c. 45, s. 801985, c. 45, s. 1031986, c. 6, s. 101
193(1)Every corporation that is liable to pay tax under this Part for a taxation year shall, on or before the day on or before which it is required to file its return of income under Part I for the year, file with the Minister a return for the year under this Part in prescribed form.Marginal note:Corporation to make payment on account of tax(2)Where, in a particular month in a taxation year, a corporation issues a share in respect of which it designates an amount under section 192, the corporation shall, on or before the last day of the month following the particular month, pay to the Receiver General on account of its tax payable under this Part for the year an amount equal to the total of all amounts so designated.Marginal note:Interest(3)Where a corporation is liable to pay tax under this Part and has failed to pay all or any part or instalment thereof on or before the day on or before which the tax or instalment, as the case may be, was required to be paid, it shall pay to the Receiver General interest at the prescribed rate on the amount that it failed to pay computed from the day on or before which the amount was required to be paid to the day of payment.Marginal note:Idem(4)For the purposes of computing interest payable by a corporation under subsection 193(3) for any month or months in the period commencing on the first day of a taxation year and ending two months after the last day of the year in which period the corporation has designated an amount under section 192 in respect of a share issued by it in a particular month in the year, the corporation shall be deemed to have been liable to pay, on or before the last day of the month immediately following the particular month, a part or an instalment of tax for the year equal to that proportion of the amount, if any, by which its tax payable under this Part for the year exceeds its Part VII refund for the year that(a)the total of all amounts so designated by it under section 192 in respect of shares issued by it in the particular monthis of(b)the total of all amounts so designated by it under section 192 in respect of shares issued by it in the year.Marginal note:Evasion of tax(5)Where a corporation that is liable to pay tax under this Part in respect of a share issued by it wilfully, in any manner whatever, evades or attempts to evade payment of the tax and a purchaser of the share or, where the purchaser is a partnership, a member of the partnership knew or ought to have known, at the time the share was acquired, that the corporation would wilfully evade or attempt to evade the tax, for the purposes of section 127.2, the share shall be deemed not to have been acquired.Marginal note:Undue deferral(6)Where, in a transaction or as part of a series of transactions, a taxpayer acquires a share of a corporation that the taxpayer controls (within the meaning assigned by subsection 186(2)) and it may reasonably be considered that one of the main purposes of the acquisition was to reduce for a period interest on the taxpayer’s liability for tax under this Part, the share shall, for the purposes of section 127.2 and this Part (other than this subsection), be deemed not to have been acquired by the taxpayer and not to have been issued by the corporation until the end of that period.Marginal note:Avoidance of tax(7)Where, as part of a series of transactions or events one of the main purposes of which may reasonably be considered to be the avoidance of tax that might otherwise have been or become payable under Part II by any corporation, a particular corporation has issued a share in a taxation year in respect of which it has designated an amount under subsection 192(4), the particular corporation shall, on or before the last day of the second month after the end of the year, pay a tax under this Part for the year equal to 125% of the amount of tax under Part II that is or may be avoided by reason of the series of transactions or events.Marginal note:Tax on excess(7.1)Where a corporation has in a taxation year made an election under subsection 127.2(10) in respect of any share that was part of a distribution of shares referred to in that subsection and, at the end of that year or any subsequent taxation year,(a)the total of the amounts designated under subsection 192(4) in respect of those shares as evidenced by the prescribed information returns required by regulation to be filed with the Minister by a taxpayer other than the corporationexceeds(b)the total of the amounts designated under subsection 192(4) in respect of those shares acquired by the taxpayer and in respect of which another taxpayer was required by regulation to provide the taxpayer with a prescribed information return relating to the designation under that subsection,the taxpayer is liable to pay a tax under this Part for the taxation year at the end of which there is such an excess equal to the amount of the excess, which tax is to be paid to the Receiver General within 60 days after the end of the taxation year, and the excess shall be included in determining the total under paragraph 193(7.1)(b) for any taxation year of the taxpayer subsequent to that year.Marginal note:Provisions applicable to Part(8)Sections 151, 152, 158 and 159, subsection 161(11), sections 162 to 167 and Division J of Part I are applicable to this Part with such modifications as the circumstances require.
(a)the total of all amounts so designated by it under section 192 in respect of shares issued by it in the particular month
(b)the total of all amounts so designated by it under section 192 in respect of shares issued by it in the year.
(a)the total of the amounts designated under subsection 192(4) in respect of those shares as evidenced by the prescribed information returns required by regulation to be filed with the Minister by a taxpayer other than the corporation
(b)the total of the amounts designated under subsection 192(4) in respect of those shares acquired by the taxpayer and in respect of which another taxpayer was required by regulation to provide the taxpayer with a prescribed information return relating to the designation under that subsection,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1 “193”1977-78, c. 1, s. 881984, c. 1, s. 95, c. 45, s. 811985, c. 45, ss. 104, 126(F)1986, c. 6, s. 102
194(1)Every corporation shall pay a tax under this Part for a taxation year equal to 50% of the total of all amounts each of which is an amount designated under subsection 194(4) in respect of a share or debt obligation issued by it in the year or a right granted by it in the year.Definition ofPart VIII refund(2)In this Part, thePart VIII refundof a corporation for a taxation year means an amount equal to the lesser of(a)the total of(i)the amount, if any, by which the scientific research and experimental development tax credit of the corporation for the year exceeds the amount, if any, deducted by it under subsection 127.3(1) from its tax otherwise payable under Part I for the year, and(ii)such amount as the corporation may claim, not exceeding 50% of the amount, if any, by which(A)the total of all expenditures made by it after April 19, 1983 and in the year or the immediately preceding taxation year each of which is an expenditure (other than an expenditure prescribed for the purposes of the definitionqualified expenditurein subsection 127(9)) claimed under paragraph 37(1)(a) or 37(1)(b) to the extent that the expenditure is specified by the corporation in its return of income under Part I for the yearexceeds the total of(B)the total of all expenditures each of which is an expenditure made by it in the immediately preceding taxation year, to the extent that the expenditure was included in determining the total under clause 194(2)(a)(ii)(A) and resulted in(I)a refund to it under this Part for the immediately preceding taxation year,(II)a deduction by it under subsection 37(1) for the immediately preceding taxation year, or(III)a deduction by it under subsection 127(5) for any taxation year, and(C)twice the portion of the total of amounts each of which is an amount deducted by it in computing its income for the year or the immediately preceding taxation year under section 37.1 that can reasonably be considered to relate to expenditures that were included in determining the total under clause 194(2)(a)(ii)(A), and(b)the refundable Part VIII tax on hand of the corporation at the end of the year.Marginal note:Definitions(3)In this Part,debt obligationdebt obligationhas the meaning assigned by paragraph (d) of the description of A in the formula found in the definitionscientific research and experimental development tax creditin subsection 127.3(2); (créance)refundable Part VIII tax on handrefundable Part VIII tax on handof a corporation at the end of a taxation year means the amount, if any, by which(a)the total of the taxes payable by it under this Part for the year and all preceding taxation yearsexceeds(b)the total of its Part VIII refunds for all preceding taxation years. (impôt de la partie VIII en main remboursable)Marginal note:Corporation may designate amount(4)Every taxable Canadian corporation may, by filing a prescribed form with the Minister at any time on or before the last day of the month immediately following a month in which it issued a share or debt obligation or granted a right under a scientific research and experimental development financing contract (other than a share or debt obligation issued or a right granted before October, 1983, or a share in respect of which the corporation has, on or before that day, designated an amount under subsection 192(4)) designate, for the purposes of this Part and Part I, an amount in respect of that share, debt obligation or right not exceeding the amount by which(a)the amount of the consideration for which it was issued or granted, as the case may be,exceeds(b)in the case of a share, the amount of any assistance (other than an amount included in computing the scientific research and experimental development tax credit of a taxpayer in respect of that share) provided, or to be provided by a government, municipality or any other public authority in respect of, or for the acquisition of, that share.Marginal note:Computing paid-up capital after designation(4.1)Where a corporation has designated an amount under subsection 194(4) in respect of shares issued at any time after May 23, 1985, in computing, at any particular time after that time, the paid-up capital in respect of the class of shares of the capital stock of the corporation that includes those shares(a)there shall be deducted the amount, if any, by which(i)the increase as a result of the issue of those shares in the paid-up capital in respect of all shares of that class, determined without reference to this subsection as it applies to those shares,exceeds(ii)the amount, if any, by which the total amount of consideration for which those shares were issued exceeds 50% of the amount designated by the corporation under subsection 194(4) in respect of those shares; and(b)there shall be added an amount equal to the lesser of(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause 194(4.1)(b)(i)(A) if this Act were read without reference to paragraph 194(4.1)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 194(4.1)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 23, 1985 and before the particular time.Marginal note:Where amount may not be designated(4.2)Notwithstanding subsection 194(4), no amount may be designated by a corporation in respect of(a)a share issued by the corporation after October 10, 1984, other than(i)a qualifying share issued before May 23, 1985, or(ii)a qualifying share issued after May 22, 1985 and before 1986(A)under the terms of an agreement in writing entered into by the corporation before May 23, 1985, other than pursuant to an option to acquire the share if the option was not exercised before May 23, 1985, or(B)as part of a lawful distribution to the public in accordance with a prospectus, preliminary prospectus or registration statement filed before May 24, 1985 with a public authority in Canada pursuant to and in accordance with the securities legislation of Canada or of any province and, where required by law, accepted for filing by that public authority;(b)a share or debt obligation issued or a right granted by the corporation after October 10, 1984, other than a share or debt obligation issued or a right granted before 1986(i)under the terms of an agreement in writing entered into by the corporation before October 11, 1984, other than pursuant to an option to acquire the share, debt obligation or right if the option was not exercised before October 11, 1984, or(ii)where arrangements, evidenced in writing, for the issue of the share or debt obligation or the granting of the right were substantially advanced before October 10, 1984; or(c)a share or debt obligation issued, or a right granted, at any time after June 15, 1984, by a corporation that was an excluded corporation (within the meaning assigned by subsection 127.1(2)) at that time.Marginal note:Presumption(5)For the purposes of this Act, the Part VIII refund of a corporation for a taxation year shall be deemed to be an amount paid on account of its tax under this Part for the year on the last day of the second month following the end of the year.Definition ofscientific research and experimental development financing contract(6)In this Part,scientific research and experimental development financing contractmeans a contract in writing pursuant to which an amount is paid by a person to a corporation as consideration for the granting by the corporation to that person of any right, either absolute or contingent, to receive income, other than interest or dividends.Marginal note:Late designation(7)Where a taxable Canadian corporation that issued a share or debt obligation or granted a right under a scientific research and experimental development financing contract does not designate an amount under subsection 194(4) in respect of the share, debt obligation or right on or before the day on or before which the designation was required by that subsection, the corporation shall be deemed to have made the designation on that day if(a)the corporation has filed with the Minister a prescribed information return relating to the scientific research and experimental development tax credit in respect of the share, debt obligation or right within the time that it would have been so required to file the return had the designation been filed on that day, and(b)within 3 years after that day, the corporation has(i)designated an amount in respect of the share, debt obligation or right by filing a prescribed form with the Minister, and(ii)paid to the Receiver General, at the time the prescribed form referred to in subparagraph 194(7)(b)(i) is filed, an amount that is a reasonable estimate of the penalty payable by the corporation for the late designation in respect of the share, debt obligation or right,except that, where the Minister has mailed a notice to the corporation that a designation has not been made in respect of the share, debt obligation or right under subsection 194(4), the designation and payment described in paragraph 194(7)(b) must be made by the corporation on or before the day that is 90 days after the day of the mailing.Marginal note:Penalty for late designation(8)Where, pursuant to subsection 194(7), a corporation made a late designation in respect of a share or debt obligation issued, or a right granted, in a month, the corporation shall pay, for each month or part of a month that elapsed during the period beginning on the last day on or before which an amount could have been designated by the corporation under subsection 194(4) in respect of the share, debt obligation or right and ending on the day that the late designation is made, a penalty for the late designation in respect of the share, debt obligation or right in an amount equal to 1% of the amount designated in respect of the share, debt obligation or right, except that the maximum penalty payable under this subsection by the corporation for a month shall not exceed $500.Marginal note:Restriction(9)Where at any time a corporation has designated an amount under subsection 194(4) in respect of a share, debt obligation or right, no amount may be designated by the corporation at any subsequent time in respect of that share, debt obligation or right.
(a)the total of(i)the amount, if any, by which the scientific research and experimental development tax credit of the corporation for the year exceeds the amount, if any, deducted by it under subsection 127.3(1) from its tax otherwise payable under Part I for the year, and(ii)such amount as the corporation may claim, not exceeding 50% of the amount, if any, by which(A)the total of all expenditures made by it after April 19, 1983 and in the year or the immediately preceding taxation year each of which is an expenditure (other than an expenditure prescribed for the purposes of the definitionqualified expenditurein subsection 127(9)) claimed under paragraph 37(1)(a) or 37(1)(b) to the extent that the expenditure is specified by the corporation in its return of income under Part I for the yearexceeds the total of(B)the total of all expenditures each of which is an expenditure made by it in the immediately preceding taxation year, to the extent that the expenditure was included in determining the total under clause 194(2)(a)(ii)(A) and resulted in(I)a refund to it under this Part for the immediately preceding taxation year,(II)a deduction by it under subsection 37(1) for the immediately preceding taxation year, or(III)a deduction by it under subsection 127(5) for any taxation year, and(C)twice the portion of the total of amounts each of which is an amount deducted by it in computing its income for the year or the immediately preceding taxation year under section 37.1 that can reasonably be considered to relate to expenditures that were included in determining the total under clause 194(2)(a)(ii)(A), and(b)the refundable Part VIII tax on hand of the corporation at the end of the year.
(i)the amount, if any, by which the scientific research and experimental development tax credit of the corporation for the year exceeds the amount, if any, deducted by it under subsection 127.3(1) from its tax otherwise payable under Part I for the year, and(ii)such amount as the corporation may claim, not exceeding 50% of the amount, if any, by which(A)the total of all expenditures made by it after April 19, 1983 and in the year or the immediately preceding taxation year each of which is an expenditure (other than an expenditure prescribed for the purposes of the definitionqualified expenditurein subsection 127(9)) claimed under paragraph 37(1)(a) or 37(1)(b) to the extent that the expenditure is specified by the corporation in its return of income under Part I for the yearexceeds the total of(B)the total of all expenditures each of which is an expenditure made by it in the immediately preceding taxation year, to the extent that the expenditure was included in determining the total under clause 194(2)(a)(ii)(A) and resulted in(I)a refund to it under this Part for the immediately preceding taxation year,(II)a deduction by it under subsection 37(1) for the immediately preceding taxation year, or(III)a deduction by it under subsection 127(5) for any taxation year, and(C)twice the portion of the total of amounts each of which is an amount deducted by it in computing its income for the year or the immediately preceding taxation year under section 37.1 that can reasonably be considered to relate to expenditures that were included in determining the total under clause 194(2)(a)(ii)(A), and
(A)the total of all expenditures made by it after April 19, 1983 and in the year or the immediately preceding taxation year each of which is an expenditure (other than an expenditure prescribed for the purposes of the definitionqualified expenditurein subsection 127(9)) claimed under paragraph 37(1)(a) or 37(1)(b) to the extent that the expenditure is specified by the corporation in its return of income under Part I for the year
(B)the total of all expenditures each of which is an expenditure made by it in the immediately preceding taxation year, to the extent that the expenditure was included in determining the total under clause 194(2)(a)(ii)(A) and resulted in(I)a refund to it under this Part for the immediately preceding taxation year,(II)a deduction by it under subsection 37(1) for the immediately preceding taxation year, or(III)a deduction by it under subsection 127(5) for any taxation year, and(C)twice the portion of the total of amounts each of which is an amount deducted by it in computing its income for the year or the immediately preceding taxation year under section 37.1 that can reasonably be considered to relate to expenditures that were included in determining the total under clause 194(2)(a)(ii)(A), and
(I)a refund to it under this Part for the immediately preceding taxation year,(II)a deduction by it under subsection 37(1) for the immediately preceding taxation year, or(III)a deduction by it under subsection 127(5) for any taxation year, and
(a)the total of the taxes payable by it under this Part for the year and all preceding taxation years
(b)the total of its Part VIII refunds for all preceding taxation years. (impôt de la partie VIII en main remboursable)
(a)the amount of the consideration for which it was issued or granted, as the case may be,
(b)in the case of a share, the amount of any assistance (other than an amount included in computing the scientific research and experimental development tax credit of a taxpayer in respect of that share) provided, or to be provided by a government, municipality or any other public authority in respect of, or for the acquisition of, that share.
(a)there shall be deducted the amount, if any, by which(i)the increase as a result of the issue of those shares in the paid-up capital in respect of all shares of that class, determined without reference to this subsection as it applies to those shares,exceeds(ii)the amount, if any, by which the total amount of consideration for which those shares were issued exceeds 50% of the amount designated by the corporation under subsection 194(4) in respect of those shares; and(b)there shall be added an amount equal to the lesser of(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause 194(4.1)(b)(i)(A) if this Act were read without reference to paragraph 194(4.1)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 194(4.1)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 23, 1985 and before the particular time.
(i)the increase as a result of the issue of those shares in the paid-up capital in respect of all shares of that class, determined without reference to this subsection as it applies to those shares,
(ii)the amount, if any, by which the total amount of consideration for which those shares were issued exceeds 50% of the amount designated by the corporation under subsection 194(4) in respect of those shares; and
(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause 194(4.1)(b)(i)(A) if this Act were read without reference to paragraph 194(4.1)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 194(4.1)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 23, 1985 and before the particular time.
(A)the total of all amounts each of which is an amount deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular time
(B)the total that would be determined under clause 194(4.1)(b)(i)(A) if this Act were read without reference to paragraph 194(4.1)(a), and
(a)a share issued by the corporation after October 10, 1984, other than(i)a qualifying share issued before May 23, 1985, or(ii)a qualifying share issued after May 22, 1985 and before 1986(A)under the terms of an agreement in writing entered into by the corporation before May 23, 1985, other than pursuant to an option to acquire the share if the option was not exercised before May 23, 1985, or(B)as part of a lawful distribution to the public in accordance with a prospectus, preliminary prospectus or registration statement filed before May 24, 1985 with a public authority in Canada pursuant to and in accordance with the securities legislation of Canada or of any province and, where required by law, accepted for filing by that public authority;(b)a share or debt obligation issued or a right granted by the corporation after October 10, 1984, other than a share or debt obligation issued or a right granted before 1986(i)under the terms of an agreement in writing entered into by the corporation before October 11, 1984, other than pursuant to an option to acquire the share, debt obligation or right if the option was not exercised before October 11, 1984, or(ii)where arrangements, evidenced in writing, for the issue of the share or debt obligation or the granting of the right were substantially advanced before October 10, 1984; or(c)a share or debt obligation issued, or a right granted, at any time after June 15, 1984, by a corporation that was an excluded corporation (within the meaning assigned by subsection 127.1(2)) at that time.
(i)a qualifying share issued before May 23, 1985, or(ii)a qualifying share issued after May 22, 1985 and before 1986(A)under the terms of an agreement in writing entered into by the corporation before May 23, 1985, other than pursuant to an option to acquire the share if the option was not exercised before May 23, 1985, or(B)as part of a lawful distribution to the public in accordance with a prospectus, preliminary prospectus or registration statement filed before May 24, 1985 with a public authority in Canada pursuant to and in accordance with the securities legislation of Canada or of any province and, where required by law, accepted for filing by that public authority;
(A)under the terms of an agreement in writing entered into by the corporation before May 23, 1985, other than pursuant to an option to acquire the share if the option was not exercised before May 23, 1985, or(B)as part of a lawful distribution to the public in accordance with a prospectus, preliminary prospectus or registration statement filed before May 24, 1985 with a public authority in Canada pursuant to and in accordance with the securities legislation of Canada or of any province and, where required by law, accepted for filing by that public authority;
(i)under the terms of an agreement in writing entered into by the corporation before October 11, 1984, other than pursuant to an option to acquire the share, debt obligation or right if the option was not exercised before October 11, 1984, or(ii)where arrangements, evidenced in writing, for the issue of the share or debt obligation or the granting of the right were substantially advanced before October 10, 1984; or
(a)the corporation has filed with the Minister a prescribed information return relating to the scientific research and experimental development tax credit in respect of the share, debt obligation or right within the time that it would have been so required to file the return had the designation been filed on that day, and(b)within 3 years after that day, the corporation has(i)designated an amount in respect of the share, debt obligation or right by filing a prescribed form with the Minister, and(ii)paid to the Receiver General, at the time the prescribed form referred to in subparagraph 194(7)(b)(i) is filed, an amount that is a reasonable estimate of the penalty payable by the corporation for the late designation in respect of the share, debt obligation or right,
(i)designated an amount in respect of the share, debt obligation or right by filing a prescribed form with the Minister, and(ii)paid to the Receiver General, at the time the prescribed form referred to in subparagraph 194(7)(b)(i) is filed, an amount that is a reasonable estimate of the penalty payable by the corporation for the late designation in respect of the share, debt obligation or right,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1“194”1977-78, c. 1, s. 881984, c. 1, ss. 73, 95, c. 45, s. 821985, c. 45, s. 1051986, c. 6, ss. 15, 103
195(1)Every corporation that is liable to pay tax under this Part for a taxation year shall, on or before the day on or before which it is required to file its return of income under Part I for the year, file with the Minister a return for the year under this Part in prescribed form.Marginal note:Corporation to make payment on account of tax(2)Where, in a particular month in a taxation year, a corporation issues a share or debt obligation, or grants a right, in respect of which it designates an amount under section 194, the corporation shall, on or before the last day of the month following the particular month, pay to the Receiver General on account of its tax payable under this Part for the year an amount equal to 50% of the total of all amounts so designated.Marginal note:Interest(3)Where a corporation is liable to pay tax under this Part and has failed to pay all or any part or instalment thereof on or before the day on or before which the tax or instalment, as the case may be, was required to be paid, it shall pay to the Receiver General interest at the prescribed rate on the amount that it failed to pay computed from the day on or before which the amount was required to be paid to the day of payment.Marginal note:Idem(4)For the purposes of computing interest payable by a corporation under subsection 195(3) for any month or months in the period commencing on the first day of a taxation year and ending two months after the last day of the year in which period the corporation has designated an amount under section 194 in respect of a share or debt obligation issued, or right granted, by it in a particular month in the year, the corporation shall be deemed to have been liable to pay, on or before the last day of the month immediately following the particular month, a part or an instalment of tax for the year equal to that proportion of the amount, if any, by which its tax payable under this Part for the year exceeds its Part VIII refund for the year that(a)the total of all amounts so designated by it under section 194 in respect of shares or debt obligations issued, or rights granted, by it in the particular monthis of(b)the total of all amounts so designated by it under section 194 in respect of shares or debt obligations issued, or rights granted, by it in the year.Marginal note:Evasion of tax(5)Where a corporation that is liable to pay tax under this Part in respect of a share or debt obligation issued or a right granted by it wilfully, in any manner whatever, evades or attempts to evade payment of the tax and a purchaser of the share, debt obligation or right or, where the purchaser is a partnership, a member of the partnership knew or ought to have known, at the time the share, debt obligation or right was acquired, that the corporation would wilfully evade or attempt to evade the tax, for the purposes of section 127.3, the share, debt obligation or right shall be deemed not to have been acquired.Marginal note:Undue deferral(6)Where, in a transaction or as part of a series of transactions, a taxpayer acquires a share or debt obligation of a corporation or a right granted by a corporation and the corporation is controlled (within the meaning assigned by subsection 186(2)) by the taxpayer and it may reasonably be considered that one of the main purposes of the acquisition was to reduce for a period interest on the taxpayer’s liability for tax under this Part, the share, debt obligation or right shall, for the purposes of this Part (other than this subsection) and section 127.3, be deemed not to have been acquired by the taxpayer and not to have been issued or granted, as the case may be, by the corporation until the end of that period.Marginal note:Avoidance of tax(7)Where, as part of a series of transactions or events one of the main purposes of which may reasonably be considered to be the avoidance of tax that might otherwise have been or become payable under Part II of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, by any corporation, a particular corporation has issued a share or debt obligation or granted a right in a taxation year in respect of which it has designated an amount under subsection 194(4), the particular corporation shall, on or before the last day of the second month after the end of the year, pay a tax under this Part for the year equal to 125% of the amount of tax under Part II of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, that is or may be avoided by reason of the series of transactions or events.Marginal note:Tax on excess(7.1)Where a corporation has in a taxation year made an election under subsection 127.3(9) in respect of any share or debt obligation that was part of a distribution of shares or debt obligations referred to in that subsection and, at the end of that year or any subsequent taxation year,(a)the total of the amounts designated under subsection 194(4) in respect of those shares or debt obligations as evidenced by the prescribed information returns required by regulation to be filed with the Minister by a taxpayer other than the corporationexceeds(b)the total of the amounts designated under subsection 194(4) in respect of those shares or debt obligations acquired by the taxpayer and in respect of which another taxpayer was required by regulation to provide the taxpayer with a prescribed information return relating to the designation under that subsection,the taxpayer is liable to pay a tax under this Part, for the taxation year at the end of which there is such an excess, equal to 50% of the excess, which tax is to be paid to the Receiver General within 60 days after the end of the taxation year, and the excess shall be included in determining the total under paragraph 195(7.1)(b) for any taxation year of the taxpayer subsequent to that year.Marginal note:Provisions applicable to Part(8)Sections 151, 152, 158 and 159, subsection 161(11), sections 162 to 167 (except subsections 164(1.1) to 164(1.3)) and Division J of Part I are applicable to this Part with such modifications as the circumstances require and, for greater certainty, the Minister may assess, before the end of a taxation year, an amount payable under this Part for the year.
(a)the total of all amounts so designated by it under section 194 in respect of shares or debt obligations issued, or rights granted, by it in the particular month
(b)the total of all amounts so designated by it under section 194 in respect of shares or debt obligations issued, or rights granted, by it in the year.
(a)the total of the amounts designated under subsection 194(4) in respect of those shares or debt obligations as evidenced by the prescribed information returns required by regulation to be filed with the Minister by a taxpayer other than the corporation
(b)the total of the amounts designated under subsection 194(4) in respect of those shares or debt obligations acquired by the taxpayer and in respect of which another taxpayer was required by regulation to provide the taxpayer with a prescribed information return relating to the designation under that subsection,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1“195”1977-78, c. 1, s. 881984, c. 1, s. 95, c. 45, s. 831985, c. 45, s. 1061986, c. 6, s. 104, c. 24, s. 1
196(1)Every corporation shall pay a tax under this Part for each taxation year equal to 30% of the amount deducted under subsection 66.5(1) in computing its income for the year.Marginal note:Return(2)Every corporation that is liable to pay tax under this Part for a taxation year shall file with the Minister, not later than the day on or before which it is required under section 150 to file a return of its income for the year under Part I, a return for the year under this Part in prescribed form containing an estimate of the amount of tax payable by it under this Part for the year.Marginal note:Instalments(3)Where a corporation is liable to pay tax for a taxation year under this Part, the corporation shall pay in respect of the year, to the Receiver General(a)on or before the last day of each month in the year, an amount equal to 1/12 of the amount of tax payable by it under this Part for the year; and(b)the remainder, if any, of the tax payable by it under this Part for the year, on or before its balance-due day for the year.Marginal note:Provisions applicable to Part(4)Sections 152, 158 and 159, subsections 161(1) and 161(2), sections 162 to 167 and Division J of Part I are applicable to this Part, with such modifications as the circumstances require.
(a)on or before the last day of each month in the year, an amount equal to 1/12 of the amount of tax payable by it under this Part for the year; and(b)the remainder, if any, of the tax payable by it under this Part for the year, on or before its balance-due day for the year.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1962003, c. 15, s. 123
197(1)The following definitions apply in this Part and in section 96.non-portfolio earningsnon-portfolio earnings, of a SIFT partnership for a taxation year, means the total of(a)the amount, if any, by which(i)the total of all amounts each of which is the SIFT partnership’s income for the taxation year from a business carried on by it in Canada or from a non-portfolio property, other than income that is a taxable dividend received by the SIFT partnership,exceeds(ii)the total of all amounts each of which is the SIFT partnership’s loss for the taxation year from a business carried on by it in Canada or from a non-portfolio property, and(b)the amount, if any, by which all taxable capital gains of the SIFT partnership from dispositions of non-portfolio properties during the taxation year exceeds the total of the allowable capital losses of the SIFT partnership for the taxation year from dispositions of non-portfolio properties during the taxation year. (gains hors portefeuille)SIFT partnershipSIFT partnership, being a specified investment flow-through partnership, for any taxation year, means a partnership other than an excluded subsidiary entity (as defined in subsection 122.1(1)) for the taxation year that meets the following conditions at any time during the taxation year:(a)the partnership is a Canadian resident partnership;(b)investments (as defined in subsection 122.1(1)) in the partnership are listed or traded on a stock exchange or other public market; and(c)the partnership holds one or more non-portfolio properties. (société de personnes intermédiaire de placement déterminée)taxable non-portfolio earningstaxable non-portfolio earningsof a SIFT partnership, for a taxation year, means the lesser of(a)the amount that would, if the SIFT partnership were a taxpayer for the purposes of Part I and if subsection 96(1) were read without reference to its paragraph (d), be its income for the taxation year as determined under section 3; and(b)its non-portfolio earnings for the taxation year. (gains hors portefeuille imposables)Marginal note:Tax on partnership income(2)Every partnership that is a SIFT partnership for a taxation year is liable to a tax under this Part equal to the amount determined by the formulaA × (B + C)whereAis the taxable non-portfolio earnings of the SIFT partnership for the taxation year;Bis the net corporate income tax rate in respect of the SIFT partnership for the taxation year; andCis the provincial SIFT tax rate of the SIFT partnership for the taxation year.Marginal note:Ordering(3)This Part and section 122.1 are to be applied as if this Act were read without reference to subsection 96(1.11).Marginal note:Partnership to file return(4)Every member of a partnership that is liable to pay tax under this Part for a taxation year shall — on or before the day on or before which the partnership return is required to be filed for the year under section 229 of theIncome Tax Regulations— file with the Minister a return for the taxation year under this Part in prescribed form containing an estimate of the tax payable by the partnership under this Part for the taxation year.Marginal note:Authority to file return(5)For the purposes of subsection (4), if, in respect of a taxation year of a partnership, a particular member of the partnership has authority to act for the partnership,(a)if the particular member has filed a return as required by this Part for a taxation year, each other person who was a member of the partnership during the taxation year is deemed to have filed the return; and(b)a return that has been filed by any other member of the partnership for the taxation year is not valid and is deemed not to have been filed by any member of the partnership.Marginal note:Provisions applicable to Part(6)Subsection 150(2), section 152, subsections 157(1), (2.1) and (4), sections 158, 159 and 161 to 167 and Division J of Part I apply to this Part, with any modifications that the circumstances require, and for greater certainty,(a)a notice of assessment referred to in subsection 152(2) in respect of tax payable under this Part is valid notwithstanding that a partnership is not a person; and(b)notwithstanding subsection 152(4), the Minister may at any time make an assessment or reassessment of tax payable under this Part or Part I to give effect to a determination made by the Minister under subsection 152(1.4), including the assessment or reassessment of Part I tax payable in respect of the disposition of an interest in a SIFT partnership by a member of the partnership.Marginal note:Payment(7)Every SIFT partnership shall pay to the Receiver General, on or before its SIFT partnership balance-due day for each taxation year, its tax payable under this Part for the taxation year.Application of definitionSIFT partnership(8)The definitionSIFT partnershipapplies to a partnership for a taxation year of the partnership that ends after 2006, except that if the partnership would have been a SIFT partnership on October 31, 2006 had that definition been in force and applied to the partnership as of that date, that definition does not apply to the partnership for a taxation year of the partnership that ends before the earlier of(a)2011, and(b)the first day after December 15, 2006 on which the partnership exceeds normal growth as determined by reference to the normal growth guidelines issued by the Department of Finance on December 15, 2006, as amended from time to time, unless that excess arose as a result of a prescribed transaction.
(a)the amount, if any, by which(i)the total of all amounts each of which is the SIFT partnership’s income for the taxation year from a business carried on by it in Canada or from a non-portfolio property, other than income that is a taxable dividend received by the SIFT partnership,exceeds(ii)the total of all amounts each of which is the SIFT partnership’s loss for the taxation year from a business carried on by it in Canada or from a non-portfolio property, and(b)the amount, if any, by which all taxable capital gains of the SIFT partnership from dispositions of non-portfolio properties during the taxation year exceeds the total of the allowable capital losses of the SIFT partnership for the taxation year from dispositions of non-portfolio properties during the taxation year. (gains hors portefeuille)
(i)the total of all amounts each of which is the SIFT partnership’s income for the taxation year from a business carried on by it in Canada or from a non-portfolio property, other than income that is a taxable dividend received by the SIFT partnership,
(ii)the total of all amounts each of which is the SIFT partnership’s loss for the taxation year from a business carried on by it in Canada or from a non-portfolio property, and
(a)the partnership is a Canadian resident partnership;(b)investments (as defined in subsection 122.1(1)) in the partnership are listed or traded on a stock exchange or other public market; and(c)the partnership holds one or more non-portfolio properties. (société de personnes intermédiaire de placement déterminée)
(a)the amount that would, if the SIFT partnership were a taxpayer for the purposes of Part I and if subsection 96(1) were read without reference to its paragraph (d), be its income for the taxation year as determined under section 3; and(b)its non-portfolio earnings for the taxation year. (gains hors portefeuille imposables)
(a)if the particular member has filed a return as required by this Part for a taxation year, each other person who was a member of the partnership during the taxation year is deemed to have filed the return; and(b)a return that has been filed by any other member of the partnership for the taxation year is not valid and is deemed not to have been filed by any member of the partnership.
(a)a notice of assessment referred to in subsection 152(2) in respect of tax payable under this Part is valid notwithstanding that a partnership is not a person; and(b)notwithstanding subsection 152(4), the Minister may at any time make an assessment or reassessment of tax payable under this Part or Part I to give effect to a determination made by the Minister under subsection 152(1.4), including the assessment or reassessment of Part I tax payable in respect of the disposition of an interest in a SIFT partnership by a member of the partnership.
(a)2011, and(b)the first day after December 15, 2006 on which the partnership exceeds normal growth as determined by reference to the normal growth guidelines issued by the Department of Finance on December 15, 2006, as amended from time to time, unless that excess arose as a result of a prescribed transaction.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2007, c. 29, s. 242008, c. 28, s. 302009, c. 2, s. 652013, c. 40, s. 72
198(1)Every trust governed by a deferred profit sharing plan or revoked plan that(a)acquires a non-qualified investment, or(b)uses or permits to be used any property of the trust as security for a loan,shall pay a tax equal to the fair market value of(c)the non-qualified investment at the time it was acquired by the trust, or(d)the property used as security at the time it commenced to be so used.Marginal note:Payment of tax(2)A trustee of a trust liable to pay tax under subsection 198(1) shall remit the amount of the tax to the Receiver General within 10 days of the day on which the non-qualified investment is acquired or the property is used as security for a loan, as the case may be.Marginal note:Trustee liable for tax(3)Where a trustee of a trust liable to pay tax under subsection 198(1) does not remit to the Receiver General the amount of the tax within the time specified in subsection 198(2), the trustee is personally liable to pay on behalf of the trust the full amount of the tax and is entitled to recover from the trust any amount paid by the trustee as tax under this section.Marginal note:Refund of tax on disposition of non-qualified investment(4)Where a trust disposes of a property that, when acquired, was a non-qualified investment, the trust is, on application in accordance with section 202, entitled to a refund of an amount equal to the lesser of(a)the amount of the tax imposed under this section as a result of the acquisition of the property, and(b)the proceeds of disposition of the property.Marginal note:Refund of tax on recovery of property given as security(5)Where a loan, for which a trust has used or permitted to be used trust property as security, ceases to be extant, the trust is, on application in accordance with section 202, entitled to a refund of an amount equal to the amount remaining, if any, when(a)the net loss (exclusive of payments by the trust as or on account of interest) sustained by the trust in consequence of its using or permitting to be used the property as security for the loan and not as a result of a change in the fair market value of the propertyis deducted from(b)the tax imposed under this section in consequence of the trust’s using or permitting to be used the property as security for the loan.Marginal note:Special rules relating to life insurance policies(6)For the purposes of this section,(a)the acquisition of an interest in or the payment of an amount under a life insurance policy shall be deemed not to be the acquisition of a non-qualified investment, and(b)the disposition of an interest in a life insurance policy shall be deemed not to be the disposition of a non-qualified investment,except that where a trust governed by a deferred profit sharing plan or revoked plan makes a payment under or to acquire an interest in a life insurance policy, other than a life insurance policy under which(c)the trust is, or by virtue of the payment about to become, the only person entitled to any rights or benefits under the policy (other than the rights or benefits of the insurer),(d)the cash surrender value of the policy (exclusive of accumulated dividends) is or will be, at or before the end of the year in which the insured person attains 71 years of age, if all premiums under the policy are paid, not less than the maximum total amount (exclusive of accumulated dividends) payable by the insurer under the policy, and(e)the total of the premiums payable in any year under the policy is not greater than the total of the amounts that, if the annual premiums had been payable in monthly instalments, would have been payable as such instalments in the 12 months commencing with the date the policy was issued,the making of the payment shall be deemed to be the acquisition of a non-qualified investment at a cost equal to the amount of the payment.Marginal note:Idem(6.1)A life insurance policy giving an option to the policyholder to receive annuity payments that otherwise complies with paragraph 198(6)(d) shall be deemed,(a)where the option has not been exercised, to comply with that paragraph; and(b)where at a particular time the option is exercised, to have been disposed of at that time for an amount equal to the cash surrender value of the policy immediately before that time, and an annuity contract shall be deemed to have been acquired at that time at a cost equal to that amount.Marginal note:Idem(7)Notwithstanding subsection 198(6), where the total of all payments made in a year by a trust governed by a deferred profit sharing plan or revoked plan under or to acquire interests in life insurance policies in respect of which the trust is the only person entitled to any rights or benefits (other than the rights or benefits of the insurer) does not exceed an amount equal to 25% of the total of all amounts paid by employers to the trust in the year under the plan for the benefit of beneficiaries thereunder, the making of the payments under or to acquire interests in such policies shall be deemed, for the purposes of this section, not to be the acquisition of non-qualified investments.Marginal note:Idem(8)Where a trust surrenders, cancels, assigns or otherwise disposes of its interest in a life insurance policy,(a)the trust shall be deemed, for the purposes of subsection 198(4), to have disposed of each non-qualified investment that, by virtue of payments under the policy, it was deemed by subsection 198(6) to have acquired; and(b)the proceeds of the disposition shall be deemed to be the amount, if any, by which(i)the amount received by the trust in consequence of the surrender, cancellation, assignment or other disposition of its interest in the policyexceeds the total of(ii)each amount paid by the trust under or to acquire an interest in the policy, the payment of which is deemed by this section not to be the acquisition of a non-qualified investment, and(iii)the cash surrender value on December 21, 1966 of the interest of the trust in the policy on that date.
(a)acquires a non-qualified investment, or(b)uses or permits to be used any property of the trust as security for a loan,
(c)the non-qualified investment at the time it was acquired by the trust, or(d)the property used as security at the time it commenced to be so used.
(a)the amount of the tax imposed under this section as a result of the acquisition of the property, and(b)the proceeds of disposition of the property.
(a)the net loss (exclusive of payments by the trust as or on account of interest) sustained by the trust in consequence of its using or permitting to be used the property as security for the loan and not as a result of a change in the fair market value of the property
(b)the tax imposed under this section in consequence of the trust’s using or permitting to be used the property as security for the loan.
(a)the acquisition of an interest in or the payment of an amount under a life insurance policy shall be deemed not to be the acquisition of a non-qualified investment, and(b)the disposition of an interest in a life insurance policy shall be deemed not to be the disposition of a non-qualified investment,
(c)the trust is, or by virtue of the payment about to become, the only person entitled to any rights or benefits under the policy (other than the rights or benefits of the insurer),(d)the cash surrender value of the policy (exclusive of accumulated dividends) is or will be, at or before the end of the year in which the insured person attains 71 years of age, if all premiums under the policy are paid, not less than the maximum total amount (exclusive of accumulated dividends) payable by the insurer under the policy, and(e)the total of the premiums payable in any year under the policy is not greater than the total of the amounts that, if the annual premiums had been payable in monthly instalments, would have been payable as such instalments in the 12 months commencing with the date the policy was issued,
(a)where the option has not been exercised, to comply with that paragraph; and(b)where at a particular time the option is exercised, to have been disposed of at that time for an amount equal to the cash surrender value of the policy immediately before that time, and an annuity contract shall be deemed to have been acquired at that time at a cost equal to that amount.
(a)the trust shall be deemed, for the purposes of subsection 198(4), to have disposed of each non-qualified investment that, by virtue of payments under the policy, it was deemed by subsection 198(6) to have acquired; and(b)the proceeds of the disposition shall be deemed to be the amount, if any, by which(i)the amount received by the trust in consequence of the surrender, cancellation, assignment or other disposition of its interest in the policyexceeds the total of(ii)each amount paid by the trust under or to acquire an interest in the policy, the payment of which is deemed by this section not to be the acquisition of a non-qualified investment, and(iii)the cash surrender value on December 21, 1966 of the interest of the trust in the policy on that date.
(i)the amount received by the trust in consequence of the surrender, cancellation, assignment or other disposition of its interest in the policy
(ii)each amount paid by the trust under or to acquire an interest in the policy, the payment of which is deemed by this section not to be the acquisition of a non-qualified investment, and(iii)the cash surrender value on December 21, 1966 of the interest of the trust in the policy on that date.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1981997, c. 25, s. 542007, c. 29, s. 25
199(1)Every trust governed by a deferred profit sharing plan or revoked plan shall pay a tax(a)for 1967, equal to the amount, if any, by which 20% of the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1968;(b)for 1968, equal to the amount, if any, by which 40% of the initial base of the trust exceeds the total of(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1969, and(ii)the tax payable by the trust determined under paragraph 199(1)(a);(c)for 1969, equal to the amount, if any, by which 60% of the initial base of the trust exceeds the total of(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1970, and(ii)the tax payable by the trust determined under paragraphs 199(1)(a) and 199(1)(b); and(d)for 1970, equal to the amount, if any, by which 100% of the initial base of the trust exceeds the total of(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1971, and(ii)the tax payable by the trust determined under paragraphs 199(1)(a), 199(1)(b) and 199(1)(c).Marginal note:Refund(2)Where at the end of a year,(a)the total of all taxes paid by a trust under subsection 199(1)exceeds(b)the total of(i)all refunds made to the trust under this subsection, and(ii)the amount, if any, by which the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before the end of the year,the trust is, on application in accordance with section 202, entitled to a refund equal to the amount by which the total described in paragraph 199(2)(a) exceeds the total described in paragraph 199(2)(b).
(a)for 1967, equal to the amount, if any, by which 20% of the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1968;(b)for 1968, equal to the amount, if any, by which 40% of the initial base of the trust exceeds the total of(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1969, and(ii)the tax payable by the trust determined under paragraph 199(1)(a);(c)for 1969, equal to the amount, if any, by which 60% of the initial base of the trust exceeds the total of(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1970, and(ii)the tax payable by the trust determined under paragraphs 199(1)(a) and 199(1)(b); and(d)for 1970, equal to the amount, if any, by which 100% of the initial base of the trust exceeds the total of(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1971, and(ii)the tax payable by the trust determined under paragraphs 199(1)(a), 199(1)(b) and 199(1)(c).
(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1969, and(ii)the tax payable by the trust determined under paragraph 199(1)(a);
(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1970, and(ii)the tax payable by the trust determined under paragraphs 199(1)(a) and 199(1)(b); and
(i)the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1971, and(ii)the tax payable by the trust determined under paragraphs 199(1)(a), 199(1)(b) and 199(1)(c).
(a)the total of all taxes paid by a trust under subsection 199(1)
(b)the total of(i)all refunds made to the trust under this subsection, and(ii)the amount, if any, by which the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before the end of the year,
(i)all refunds made to the trust under this subsection, and(ii)the amount, if any, by which the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before the end of the year,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1“199”
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 2002013, c. 34, s. 334(F)
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1“201”1976-77, c. 4, s. 681990, c. 35, s. 20
202(1)Within 90 days from the end of each year after 1965, a trustee of every trust governed by a deferred profit sharing plan or revoked plan shall(a)file with the Minister a return for the year under this Part in prescribed form and containing prescribed information, without notice or demand therefor;(b)estimate in the return the amount of tax payable by the trust under this Part for the year;(c)estimate in the return the amount of any refund to which the trust is entitled under this Part for the year; and(d)pay to the Receiver General the unpaid balance of the trust’s tax for the year minus any refund to which it is entitled under this Part, or apply in the return for any amount owing to it.Marginal note:Consideration of application for refund(2)Where a trustee of a trust has made application for an amount owing to it pursuant to subsection 202(1), the Minister shall(a)consider the application;(b)determine the amount of any refund; and(c)send to the trustee a notice of refund and any amount owing to the trust, or a notice that no refund is payable.Marginal note:Provisions applicable to Part(3)Subsection 150(2), sections 152 and 158, subsections 161(1) and 161(11), sections 162 to 167 and Division J of Part I are applicable to this Part with such modifications as the circumstances require and, for the purposes of the application of those provisions to this Part, a notice of refund under this section shall be deemed to be a notice of assessment.Marginal note:Provisions applicable to refunds(4)Subsections 164(3) to 164(4) are applicable, with such modifications as the circumstances require, to refunds of tax under subsection 198(4) or 198(5) or 199(2).Marginal note:Interest(5)In addition to the interest payable under subsection 161(1), where a taxpayer is required by section 198 to pay a tax and has failed to pay all or any part thereof on or before the day on or before which the tax was required to be paid, the taxpayer shall pay to the Receiver General interest at the prescribed rate on the amount that the taxpayer failed to pay computed from the day on or before which the amount was required to be paid to the day of payment or to the beginning of the period in respect of which the taxpayer is required by subsection 161(1) to pay interest thereon, whichever is earlier.Marginal note:Deemed payment of tax(6)For the purposes of subsections 161(1) and 202(5), where a trust is liable to pay tax under this Part on the acquisition by it of a non-qualified investment or on the use of its property as security for a loan, it shall, except to the extent that the tax has previously been paid, be deemed to have paid tax on the date on which the property is disposed ofor on which the loan ceases to be extant, as the case may be, in an amount equal to the refund referred to in subsection 198(4) in respect of that property or subsection 198(5) in respect of the loan, as the case may be.
(a)file with the Minister a return for the year under this Part in prescribed form and containing prescribed information, without notice or demand therefor;(b)estimate in the return the amount of tax payable by the trust under this Part for the year;(c)estimate in the return the amount of any refund to which the trust is entitled under this Part for the year; and(d)pay to the Receiver General the unpaid balance of the trust’s tax for the year minus any refund to which it is entitled under this Part, or apply in the return for any amount owing to it.
(a)consider the application;(b)determine the amount of any refund; and(c)send to the trustee a notice of refund and any amount owing to the trust, or a notice that no refund is payable.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1 “202”1977-78, c. 32, s. 441980-81-82-83, c. 48, s. 1151984, c. 1, s. 961985, c. 45, ss. 107, 126(F)1986, c. 6, s. 1051990, c. 35, s. 30
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1“203”
(a)a share, other than an excluded share or a non-participating share, the owner of which has, as owner thereof, a right(i)to a dividend, and(ii)to a part of the surplus of the corporation after repayment of capital and payment of dividend arrears on the redemption of the share, a reduction of the capital of the corporation or the winding-up of the corporation,at least as great, in any event, as the right of the owner of any other share, other than a non-participating share, of the corporation, when the magnitude of the right in each case is expressed as a rate based on the paid-up capital value of the share to which the right relates, or(b)a share, other than an excluded share or a non-participating share, the owner of which has, as owner thereof, a right(i)to a dividend, after a dividend at a rate not in excess of 12% per annum of the paid-up capital value of each share has been paid to the owners of shares of a class other than the class to which that share belongs, and(ii)to a part of the surplus of the corporation after repayment of capital and payment of dividend arrears on the redemption of the share, a reduction of the capital of the corporation or the winding-up of the corporation, after a payment of a part of the surplus at a rate not in excess of 10% of the paid-up capital value of each share has been made to the owners of shares of a class other than the class to which that share belongs,at least as great, in any event, as the right of the owner of any other share, other than a non-participating share, of the corporation, when the magnitude of the right in each case is expressed as a rate based on the paid-up capital value of the share to which the right relates; (action à revenu variable)
(i)to a dividend, and(ii)to a part of the surplus of the corporation after repayment of capital and payment of dividend arrears on the redemption of the share, a reduction of the capital of the corporation or the winding-up of the corporation,
(i)to a dividend, after a dividend at a rate not in excess of 12% per annum of the paid-up capital value of each share has been paid to the owners of shares of a class other than the class to which that share belongs, and(ii)to a part of the surplus of the corporation after repayment of capital and payment of dividend arrears on the redemption of the share, a reduction of the capital of the corporation or the winding-up of the corporation, after a payment of a part of the surplus at a rate not in excess of 10% of the paid-up capital value of each share has been made to the owners of shares of a class other than the class to which that share belongs,
(a)an employer by whom payments are made in trust to a trustee under the plan for the benefit of beneficiaries under the plan, or(b)a corporation with whom that employer does not deal at arm’s length; (bien exclu)
(a)the paid-up capital of the corporation that is represented by all its issued and outstanding shares that would, but for this definition, be equity shares is less than 50% of the paid-up capital of the corporation that is represented by all its issued and outstanding shares other than non-participating shares, or(b)a non-participating share of the corporation is issued and outstanding and the owner of which has, as owner thereof, a right to a dividend(i)at a fixed annual rate in excess of 12%, or(ii)at an annual rate not in excess of a fixed maximum annual rate, if the fixed maximum annual rate is in excess of 12%,when the right to the dividend is expressed as a rate based on the paid-up capital value of the share to which the right relates; (action exclue)
(i)at a fixed annual rate in excess of 12%, or(ii)at an annual rate not in excess of a fixed maximum annual rate, if the fixed maximum annual rate is in excess of 12%,
(a)its cost to the trust, and(b)its fair market value on December 21, 1966; (base initiale)
(a)any interest in a life insurance policy, or(b)an equity share that would be a qualified investment if the date of acquisition of the share were December 21, 1966; (placement initial non admissible)
(a)in the case of a private corporation, a share the owner of which is not entitled to receive, as owner thereof, any dividend, other than a dividend, whether cumulative or not,(i)at a fixed annual rate or amount, or(ii)at an annual rate or amount not in excess of a fixed annual rate or amount, and(b)in the case of a corporation other than a private corporation, any share other than a common share; (action non participante)
(i)at a fixed annual rate or amount, or(ii)at an annual rate or amount not in excess of a fixed annual rate or amount, and
(a)money (other than money the fair market value of which exceeds its stated value as legal tender in the country of issuance or money that is held for its numismatic value) and deposits (within the meaning assigned by theCanada Deposit Insurance Corporation Actor with a branch in Canada of a bank) of such money standing to the credit of the trust,(b)debt obligations described in paragraph (a) of the definitionfully exempt interestin subsection 212(3),(c)debt obligations issued by(i)a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a designated stock exchange in Canada,(ii)a corporation the shares of which are listed on a designated stock exchange outside Canada, or(iii)an authorized foreign bank and payable at a branch in Canada of the bank,(c.1)debt obligations that meet the following criteria, namely,(i)any of(A)the debt obligations had, at the time of acquisition by the trust, an investment grade rating with a prescribed credit rating agency,(B)the debt obligations have an investment grade rating with a prescribed credit rating agency, or(C)the debt obligations were acquired by the trust in exchange for debt obligations that satisfied the condition in clause (A) and as part of a proposal to, or an arrangement with, the creditors of the issuer of the debt obligations that has been approved by a court under theBankruptcy and Insolvency Actor theCompanies’ Creditors Arrangement Act, and(ii)either(A)the debt obligations were issued as part of a single issue of debt of at least $25 million, or(B)in the case of debt obligations that are issued on a continuous basis under a debt issuance program, the issuer of the debt obligations had issued and outstanding debt under the program of at least $25 million,(d)securities (other than futures contracts or other derivative instruments in respect of which the holder’s risk of loss may exceed the holder’s cost) that are listed on a designated stock exchange,(e)equity shares of a corporation by which, before the date of acquisition by the trust of the shares, payments have been made in trust to a trustee under the plan for the benefit of beneficiaries thereunder, if the shares are of a class in respect of which(i)there is no restriction on their transferability, and(ii)in each of 4 taxation years of the corporation in the period of the corporation’s 5 consecutive taxation years that ended less than 12 months before the date of acquisition of the shares by the trust, and in the corporation’s last taxation year in that period, the corporation(A)paid a dividend on each share of the class of an amount not less than 4% of the cost per share of the shares to the trust, or(B)had earnings attributable to the shares of the class of an amount not less than the amount obtained when 4% of the cost per share to the trust of the shares is multiplied by the total number of shares of the class that were outstanding immediately after the acquisition,(f)guaranteed investment certificates issued by a trust company incorporated under the laws of Canada or of a province,(g)investment contracts described in subparagraph (b)(ii) of the definitionretirement savings planin subsection 146(1) and issued by a corporation approved by the Governor in Council for the purposes of that subparagraph, and(h)prescribed investments;(i)[Repealed, 2007, c. 29, s. 26](placement admissible)
(i)a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a designated stock exchange in Canada,(ii)a corporation the shares of which are listed on a designated stock exchange outside Canada, or(iii)an authorized foreign bank and payable at a branch in Canada of the bank,
(i)any of(A)the debt obligations had, at the time of acquisition by the trust, an investment grade rating with a prescribed credit rating agency,(B)the debt obligations have an investment grade rating with a prescribed credit rating agency, or(C)the debt obligations were acquired by the trust in exchange for debt obligations that satisfied the condition in clause (A) and as part of a proposal to, or an arrangement with, the creditors of the issuer of the debt obligations that has been approved by a court under theBankruptcy and Insolvency Actor theCompanies’ Creditors Arrangement Act, and(ii)either(A)the debt obligations were issued as part of a single issue of debt of at least $25 million, or(B)in the case of debt obligations that are issued on a continuous basis under a debt issuance program, the issuer of the debt obligations had issued and outstanding debt under the program of at least $25 million,
(A)the debt obligations had, at the time of acquisition by the trust, an investment grade rating with a prescribed credit rating agency,(B)the debt obligations have an investment grade rating with a prescribed credit rating agency, or(C)the debt obligations were acquired by the trust in exchange for debt obligations that satisfied the condition in clause (A) and as part of a proposal to, or an arrangement with, the creditors of the issuer of the debt obligations that has been approved by a court under theBankruptcy and Insolvency Actor theCompanies’ Creditors Arrangement Act, and
(A)the debt obligations were issued as part of a single issue of debt of at least $25 million, or(B)in the case of debt obligations that are issued on a continuous basis under a debt issuance program, the issuer of the debt obligations had issued and outstanding debt under the program of at least $25 million,
(i)there is no restriction on their transferability, and(ii)in each of 4 taxation years of the corporation in the period of the corporation’s 5 consecutive taxation years that ended less than 12 months before the date of acquisition of the shares by the trust, and in the corporation’s last taxation year in that period, the corporation(A)paid a dividend on each share of the class of an amount not less than 4% of the cost per share of the shares to the trust, or(B)had earnings attributable to the shares of the class of an amount not less than the amount obtained when 4% of the cost per share to the trust of the shares is multiplied by the total number of shares of the class that were outstanding immediately after the acquisition,
(A)paid a dividend on each share of the class of an amount not less than 4% of the cost per share of the shares to the trust, or(B)had earnings attributable to the shares of the class of an amount not less than the amount obtained when 4% of the cost per share to the trust of the shares is multiplied by the total number of shares of the class that were outstanding immediately after the acquisition,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 2041994, c. 7, Sch