VIII, s. 611996, c. 21, s. 241999, c. 22, s. 452001, c. 17, s. 1112005, c. 30, s. 92006, c. 4, s. 72
(a)the corporation’s aggregate investment income for the year (within the meaning assigned by subsection 129(4)), and(b)the amount, if any, by which its taxable income for the year exceeds the least of the amounts determined in respect of it for the year under paragraphs 125(1)(a) to (c).
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1996, c. 21, s. 252016, c. 11, s. 6
123.4(1)The definitions in this subsection apply in this section.CCPC rate reduction percentageCCPC rate reduction percentage[Repealed, 2003, c. 15, s. 78(1)]full rate taxable incomefull rate taxable incomeof a corporation for a taxation year is(a)if the corporation is not a corporation described in paragraph (b) or (c) for the year, the amount by which that portion of the corporation’s taxable income for the year (or, for greater certainty, if the corporation is non-resident, that portion of its taxable income earned in Canada for the year) that is subject to tax under subsection 123(1) exceeds the total of(i)if an amount is deducted under subsection 125.1(1) from the corporation’s tax otherwise payable under this Part for the year, the amount obtained by dividing the amount so deducted by the corporation’s general rate reduction percentage for the taxation year,(ii)if an amount is deducted under subsection 125.1(2) from the corporation’s tax otherwise payable under this Part for the year, the amount determined, in respect of the deduction, by the formula in that subsection,(iii)the corporation’s income for the year from a personal services business, and(iv)if the corporation is a credit union throughout the year and the corporation deducted an amount for the year under subsection 125(1) (because of the application of subsections 137(3) and (4)), the amount, if any, that is the product of the amount, if any, determined for B in subsection 137(3) multiplied by the amount determined for C in subsection 137(3) in respect of the corporation for the year;(b)if the corporation is a Canadian-controlled private corporation throughout the year, the amount by which that portion of the corporation’s taxable income for the year that is subject to tax under subsection 123(1) exceeds the total of(i)the amounts that would, if paragraph (a) applied to the corporation, be determined under subparagraphs (a)(i) to (iv) in respect of the corporation for the year,(ii)the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year, and(iii)except for a corporation that is, throughout the year, a cooperative corporation (within the meaning assigned by subsection 136(2)) or a credit union, the corporation’s aggregate investment income for the year, within the meaning assigned by subsection 129(4); and(iv)[Repealed, 2003, c. 15, s. 78(2)](c)if the corporation is throughout the year an investment corporation, a mortgage investment corporation or a mutual fund corporation, nil. (revenu imposable au taux complet)general rate reduction percentagegeneral rate reduction percentageof a corporation for a taxation year is the total of(a)that proportion of 7% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year,(b)that proportion of 8.5% that the number of days in the taxation year that are in 2008 is of the number of days in the taxation year,(c)that proportion of 9% that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year,(d)that proportion of 10% that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year,(e)that proportion of 11.5% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and(f)that proportion of 13% that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year. (pourcentage de réduction du taux général)Marginal note:General deduction from tax(2)There may be deducted from a corporation’s tax otherwise payable under this Part for a taxation year the product obtained by multiplying the corporation’s general rate reduction percentage for the year by the corporation’s full rate taxable income for the year.(3)[Repealed, 2003, c. 15, s. 78(5)]
(a)if the corporation is not a corporation described in paragraph (b) or (c) for the year, the amount by which that portion of the corporation’s taxable income for the year (or, for greater certainty, if the corporation is non-resident, that portion of its taxable income earned in Canada for the year) that is subject to tax under subsection 123(1) exceeds the total of(i)if an amount is deducted under subsection 125.1(1) from the corporation’s tax otherwise payable under this Part for the year, the amount obtained by dividing the amount so deducted by the corporation’s general rate reduction percentage for the taxation year,(ii)if an amount is deducted under subsection 125.1(2) from the corporation’s tax otherwise payable under this Part for the year, the amount determined, in respect of the deduction, by the formula in that subsection,(iii)the corporation’s income for the year from a personal services business, and(iv)if the corporation is a credit union throughout the year and the corporation deducted an amount for the year under subsection 125(1) (because of the application of subsections 137(3) and (4)), the amount, if any, that is the product of the amount, if any, determined for B in subsection 137(3) multiplied by the amount determined for C in subsection 137(3) in respect of the corporation for the year;(b)if the corporation is a Canadian-controlled private corporation throughout the year, the amount by which that portion of the corporation’s taxable income for the year that is subject to tax under subsection 123(1) exceeds the total of(i)the amounts that would, if paragraph (a) applied to the corporation, be determined under subparagraphs (a)(i) to (iv) in respect of the corporation for the year,(ii)the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year, and(iii)except for a corporation that is, throughout the year, a cooperative corporation (within the meaning assigned by subsection 136(2)) or a credit union, the corporation’s aggregate investment income for the year, within the meaning assigned by subsection 129(4); and(iv)[Repealed, 2003, c. 15, s. 78(2)](c)if the corporation is throughout the year an investment corporation, a mortgage investment corporation or a mutual fund corporation, nil. (revenu imposable au taux complet)
(i)if an amount is deducted under subsection 125.1(1) from the corporation’s tax otherwise payable under this Part for the year, the amount obtained by dividing the amount so deducted by the corporation’s general rate reduction percentage for the taxation year,(ii)if an amount is deducted under subsection 125.1(2) from the corporation’s tax otherwise payable under this Part for the year, the amount determined, in respect of the deduction, by the formula in that subsection,(iii)the corporation’s income for the year from a personal services business, and(iv)if the corporation is a credit union throughout the year and the corporation deducted an amount for the year under subsection 125(1) (because of the application of subsections 137(3) and (4)), the amount, if any, that is the product of the amount, if any, determined for B in subsection 137(3) multiplied by the amount determined for C in subsection 137(3) in respect of the corporation for the year;
(i)the amounts that would, if paragraph (a) applied to the corporation, be determined under subparagraphs (a)(i) to (iv) in respect of the corporation for the year,(ii)the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year, and(iii)except for a corporation that is, throughout the year, a cooperative corporation (within the meaning assigned by subsection 136(2)) or a credit union, the corporation’s aggregate investment income for the year, within the meaning assigned by subsection 129(4); and(iv)[Repealed, 2003, c. 15, s. 78(2)]
(a)that proportion of 7% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year,(b)that proportion of 8.5% that the number of days in the taxation year that are in 2008 is of the number of days in the taxation year,(c)that proportion of 9% that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year,(d)that proportion of 10% that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year,(e)that proportion of 11.5% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and(f)that proportion of 13% that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year. (pourcentage de réduction du taux général)
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2001, c. 17, s. 1122003, c. 15, s. 78, c. 28, s. 122006, c. 4, s. 732007, c. 2, s. 32, c. 29, s. 14, c. 35, s. 1812013, c. 33, s. 12, c. 34, s. 261, c. 40, s. 54
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2016, c. 7, s. 62
123.6(1)The following definition applies in this section.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:Additional tax payable(2)There shall be added to the tax otherwise payable under this Part for a taxation year, by a corporation that is a bank or life insurer group member at any time during the taxation year, an amount determined by the formula0.015 (A − B)whereAis the corporation’s taxable income for the taxation year (or the corporation’s taxable income earned in Canada if the corporation is non-resident in the taxation year); andBis(a)if the corporation is not related to another bank or life insurer group member at the end of the taxation year of the corporation,(i)where the corporation’s taxation year is not less than 51 weeks, $100 million, and(ii)in any other case, the amount determined by the formula$100 million × (C ÷ 365)whereCis the number of days in the taxation year, and(b)in any other case, subject to subsection (5), nil.Marginal note:Related group(3)For the purposes of this section, 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 taxation year and that was related to another 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 the “related group”) may file with the Minister, with the corporation’s return of income, an agreement in prescribed form on behalf of the related group under which an amount that does not exceed $100 million is allocated among the related group for all taxation years of members of the related group ending in the same calendar year.Marginal note:Allocation by Minister(4)The Minister may request a corporation that is a member of a related group at any time during a taxation year to file with the Minister an agreement referred to in subsection (3) 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 (3) among the related group for the taxation years of the bank or life insurer group members ending in the same calendar year.Marginal note:Allocation(5)For the purposes of this section, the least amount allocated for a taxation year to each bank or life insurer group member under an agreement described in subsection (3) or by the Minister under subsection (4) 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 or life insurer group member for that year is nil.Marginal note:Anti-avoidance(6)If an amount has been deducted in computing the income of a corporation, the amount is deemed not to have been deducted in computing the corporation’s taxable income, or taxable income earned in Canada, as the case may be, for the purpose of computing the tax payable by the corporation under subsection (2), if(a)the deduction is in respect of an amount that can reasonably be considered to have been paid or payable (in this subsection referred to as “the payment”), directly or indirectly, to a person or partnership that was not dealing at arm’s length with the corporation;(b)the person or partnership was not a bank or life insurer group member; and(c)it can reasonably be considered that one of the purposes of the payment was to reduce the tax payable by the corporation under subsection (2).
(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)if the corporation is not related to another bank or life insurer group member at the end of the taxation year of the corporation,(i)where the corporation’s taxation year is not less than 51 weeks, $100 million, and(ii)in any other case, the amount determined by the formula$100 million × (C ÷ 365)whereCis the number of days in the taxation year, and(b)in any other case, subject to subsection (5), nil.
(i)where the corporation’s taxation year is not less than 51 weeks, $100 million, and(ii)in any other case, the amount determined by the formula$100 million × (C ÷ 365)whereCis the number of days in the taxation year, and
(a)the deduction is in respect of an amount that can reasonably be considered to have been paid or payable (in this subsection referred to as “the payment”), directly or indirectly, to a person or partnership that was not dealing at arm’s length with the corporation;(b)the person or partnership was not a bank or life insurer group member; and(c)it can reasonably be considered that one of the purposes of the payment was to reduce the tax payable by the corporation under subsection (2).
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2022, c. 19, s. 20
124(1)There may be deducted from the tax otherwise payable by a corporation under this Part for a taxation year an amount equal to 10% of the corporation’s taxable income earned in the year in a province.Marginal note:Crown agents(3)Notwithstanding subsection 124(1), no deduction may be made under this section from the tax otherwise payable under this Part for a taxation year by a corporation in respect of any taxable income of the corporation for the year that is not, because of an Act of Parliament, subject to tax under this Part or by a prescribed federal Crown corporation that is an agent of Her Majesty.Marginal note:Definitions(4)In this section,provinceprovinceincludes the Newfoundland offshore area and the Nova Scotia offshore area; (province)taxable income earned in the year in a provincetaxable income earned in the year in a provincemeans the amount determined under rules prescribed for the purpose by regulations made on the recommendation of the Minister of Finance. (revenu imposable gagné au cours de l’année dans une province)
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1241994, c. 7, Sch