VIII, s. 491995, c. 21, s. 361997, c. 26, s. 841999, c. 22, s. 282000, c. 19, s. 192001, c. 17, s. 872002, c. 9, s. 342005, c. 19, s. 202006, c. 4, s. 572009, c. 2, s. 302010, c. 25, s. 212013, c. 34, s. 241, c. 40, s. 472016, c. 12, s. 402017, c. 20, s. 10, c. 33, s. 402021, c. 23, s. 16
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 111.12000, c. 19, s. 20
112(1)Where a corporation in a taxation year has received a taxable dividend from(a)a taxable Canadian corporation, or(b)a corporation resident in Canada (other than a non-resident-owned investment corporation or a corporation exempt from tax under this Part) and controlled by it,an amount equal to the dividend may be deducted from the income of the receiving corporation for the year for the purpose of computing its taxable income.Marginal note:Dividends received from non-resident corporation(2)Where a taxpayer that is a corporation has, in a taxation year, received a dividend from a corporation (other than a foreign affiliate of the taxpayer) that was taxable under subsection 2(3) for the year and that has, throughout the period from June 18, 1971 to the time when the dividend was received, carried on a business in Canada through a permanent establishment as defined by regulation, an amount equal to that proportion of the dividend that the paying corporation’s taxable income earned in Canada for the immediately preceding year is of the whole of the amount that its taxable income for that year would have been if it had been resident in Canada throughout that year, may be deducted from the income of the receiving corporation for the taxation year for the purpose of computing its taxable income.Marginal note:No deduction permitted(2.1)No deduction may be made under subsection (1) or (2) in computing the taxable income of a specified financial institution in respect of a dividend received by it on a share that was, at the time the dividend was received, a term preferred share, other than a dividend on a share of the capital stock of a corporation that was not acquired in the ordinary course of the business carried on by the institution, and for the purposes of this subsection, if a restricted financial institution received the dividend on a share of the capital stock of a mutual fund corporation or an investment corporation at any time after the mutual fund or investment corporation has elected under subsection 131(10) not to be a restricted financial institution, the share is deemed to be a term preferred share acquired in the ordinary course of business.Marginal note:Guaranteed shares(2.2)No deduction may be made under subsection (1), (2) or 138(6) in computing the taxable income of a particular corporation in respect of a dividend received on a share of the capital stock of a corporation that was issued after 8:00 p.m