Eastern Daylight Saving Time, June 18, 1987 to the particular time and the predecessor corporations were related to each other throughout that period, or
(ii)each of the predecessor corporations and the new corporation is a corporation described in any of paragraphs (a) to (d) of the definitionrestricted financial institutionin subsection 248(1),
a taxable RFI share acquired by the new corporation from a predecessor corporation on the amalgamation shall be deemed to have been acquired by the new corporation at the time it was acquired by the predecessor corporation.
Marginal note:Partnerships
187.4For the purposes of this Part,
(a)all amounts received in a fiscal period by a partnership as, on account or in lieu of payment of, or in satisfaction of, dividends shall be deemed to have been received by each member of the partnership in the member’s fiscal period or taxation year in which the partnership’s fiscal period ends, to the extent of that member’s share thereof;
(b)each member of a partnership shall be deemed to own at any time that proportion of the number of the shares of each class of the capital stock of a corporation that are property of the partnership at that time that the member’s share of all dividends received on those shares by the partnership in its fiscal period that includes that time is of the total of all those dividends; and
(c)a reference to a person includes a partnership.
Marginal note:Information return
187.5Every corporation 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 by section 150 to file its return of income for the year under Part I, a return for the year under this Part in prescribed form containing an estimate of the taxes payable by it under sections 187.2 and 187.3 for the year.
Marginal note:Provisions applicable to Part
187.6Sections 152, 158 and 159, subsections 161(1), 161(2) 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.
Marginal note:Provisions applicable — Crown corporations
187.61Section 27 applies to this Part with any modifications that the circumstances require.
Marginal note:Application of s. 149.1(1)
187.7The definitions in subsection 149.1(1) apply to this Part.
Marginal note:Deemed year-end on notice of revocation
188(1)If on a particular day the Minister issues a notice of intention to revoke the registration of a taxpayer as a registered charity under any of subsections 149.1(2) to (4.1) and 168(1), it becomes a listed terrorist entity or it is determined, under subsection 7(1) of theCharities Registration (Security Information) Act, that a certificate served in respect of the charity under subsection 5(1) of that Act is reasonable on the basis of information and evidence available,
(a)the taxation year of the charity that would otherwise have included that day is deemed to end at the end of that day;
(b)a new taxation year of the charity is deemed to begin immediately after that day; and
(c)for the purpose of determining the charity’s fiscal period after that day, the charity is deemed not to have established a fiscal period before that day.
Marginal note:Revocation tax
(1.1)A charity referred to in subsection (1) is liable to a tax, for its taxation year that is deemed to have ended, equal to the amount determined by the formula
A - B
where
(a)the fair market value of a property of the charity at the end of that taxation year,
(b)the amount of an appropriation (within the meaning assigned by subsection (2)) in respect of a property transferred to another person in the 120-day period that ended at the end of that taxation year, or
(c)the income of the charity for its winding-up period, including gifts received by the charity in that period from any source and any income that would be computed under section 3 as if that period were a taxation year; and
(a)a debt of the charity that is outstanding at the end of that taxation year,
(b)an expenditure made by the charity during the winding-up period on charitable activities carried on by it, or
(c)an amount in respect of a property transferred by the charity during the winding-up period and not later than the latter of one year from the end of the taxation year and the day, if any, referred to in paragraph (1.2)(c), to a person that was at the time of the transfer an eligible donee in respect of the charity, equal to the amount, if any, by which the fair market value of the property, when transferred, exceeds the consideration given by the person for the transfer.
Marginal note:Winding-up period
(1.2)In this Part, the winding-up period of a charity is the period
(a)that begins immediately after the earliest of the days on which
(i)the Minister issues a notice of intention to revoke the registration of the charity under any of subsections 149.1(2) to (4.1) and 168(1),
(ii)the charity becomes a listed terrorist entity, and
(iii)it is determined, under subsection 7(1) of theCharities Registration (Security Information) Act, that a certificate served in respect of the charity under subsection 5(1) of that Act is reasonable on the basis of information and evidence available, and
(b)that ends on the day that is the latest of
(i)the day, if any, on which the charity files a return under subsection 189(6.1) for the taxation year deemed by subsection (1) to have ended, but not later than the day on which the charity is required to file that return,
(ii)the day on which the Minister last issues a notice of assessment of tax payable under subsection (1.1) for that taxation year by the charity, and
(iii)if the charity has filed a notice of objection or appeal in respect of that assessment, the day on which the Minister may take a collection action under section 225.1 in respect of that tax payable.
Marginal note:Eligible donee
(1.3)In this Part, an eligible donee in respect of a particular charity is
(a)a registered charity
(i)of which more than 50% of the members of the board of directors or trustees of the registered charity deal at arm’s length with each member of the board of directors or trustees of the particular charity,
(ii)that is not the subject of a suspension under subsection 188.2(1),
(iii)that has no unpaid liabilities under this Act or under theExcise Tax Act,
(iv)that has filed all information returns required by subsection 149.1(14), and
(v)that is not the subject of a certificate under subsection 5(1) of theCharities Registration (Security Information) Actor, if it is the subject of such a certificate, the certificate has been determined under subsection 7(1) of that Act not to be reasonable; or
(b)a municipality in Canada that is approved by the Minister in respect of a transfer of property from the particular charity.
Marginal note:Eligible donee
(1.4)In this Part, an eligible donee in respect of a particular Canadian amateur athletic association is a registered Canadian amateur athletic association
(a)of which more than 50% of the members of the board of directors or trustees of the registered Canadian amateur athletic association deal at arm’s length with each member of the board of directors or trustees of the particular Canadian amateur athletic association;
(b)that is not the subject of a suspension under subsection 188.2(1);
(c)that has no unpaid liabilities under this Act or under theExcise Tax Act; and
(d)that has filed all information returns required by subsection 149.1(14).
Marginal note:Shared liability — revocation tax
(2)A person who, after the time that is 120 days before the end of the taxation year of a charity that is deemed by subsection (1) to have ended, receives property from the charity, is jointly and severally, or solidarily, liable with the charity for the tax payable under subsection (1.1) by the charity for that taxation year for an amount not exceeding the total of all appropriations, each of which is the amount by which the fair market value of such a property at the time it was so received by the person exceeds the consideration given by the person in respect of the property.
Marginal note:Non-application of revocation tax
(2.1)Subsections (1) and (1.1) do not apply to a charity in respect of a notice of intention to revoke given under any of subsections 149.1(2) to (4.1) and 168(1) if the Minister abandons the intention and so notifies the charity or if
(a)within the one-year period that begins immediately after the taxation year of the charity otherwise deemed by subsection (1) to have ended, the Minister has registered the charity as a charitable organization, private foundation or public foundation; and
(b)the charity has, before the time that the Minister has so registered the charity,
(i)paid all amounts, each of which is an amount for which the charity is liable under this Act (other than subsection (1.1)) or theExcise Tax Actin respect of taxes, penalties and interest, and
(ii)filed all information returns required by or under this Act to be filed on or before that time.
Marginal note:Transfer of property tax
(3)Where, as a result of a transaction or series of transactions, property owned by a registered charity that is a charitable foundation and having a net value greater than 50% of the net asset amount of the charitable foundation immediately before the transaction or series of transactions, as the case may be, is transferred before the end of a taxation year, directly or indirectly, to one or more charitable organizations and it may reasonably be considered that the main purpose of the transfer is to effect a reduction in the disbursement quota of the foundation, the foundation shall pay a tax under this Part for the year equal to the amount by which 25% of the net value of that property determined as of the day of its transfer exceeds the total of all amounts each of which is its tax payable under this subsection for a preceding taxation year in respect of the transaction or series of transactions.
Marginal note:Non-application of subsection (3)
(3.1)Subsection (3) does not apply to a transfer that is a gift to which subsection 188.1(11) or (12) applies.
Marginal note:Joint and several, or solidary, liability — tax transfer
(4)If property has been transferred to a charitable organization in circumstances described in subsection (3) and it may reasonably be considered that the organization acted in concert with a charitable foundation for the purpose of reducing the disbursement quota of the foundation, the organization is jointly and severally, or solidarily, liable with the foundation for the tax imposed on the foundation by that subsection in an amount not exceeding the net value of the property.
Marginal note:Definitions
(5)In this section,
net asset amountof a charitable foundation at any time means the amount determined by the formula
A - B
where
net valueof property owned by a charitable foundation, as of the day of its transfer, means the amount determined by the formula
A - B
where
Marginal note:Penalty — carrying on business
188.1(1)Subject to subsection (2), a person is liable to a penalty under this Part equal to 5% of its gross revenue for a taxation year from any business that it carries on in the taxation year, if
(a)the person is a registered charity that is a private foundation;
(b)the person is a registered charity that is not a private foundation and the business is not a related business in relation to the charity; or
(c)the person is a registered Canadian amateur athletic association and the business is not a related business in relation to the association.
Marginal note:Increased penalty for subsequent assessment
(2)A person that, less than five years before a particular time, was assessed a liability under subsection (1) or this subsection, for a taxation year, is liable to a penalty under this Part equal to its gross revenue for a subsequent taxation year from any business that, after that assessment and in the subsequent taxation year, it carries on at the particular time if
(a)the person is a registered charity that is a private foundation;
(b)the person is a registered charity that is not a private foundation and the business is not a related business in relation to the charity; or
(c)the person is a registered Canadian amateur athletic association and the business is not a related business in relation to the association.
Marginal note:Control of corporation by a charitable foundation
(3)If at a particular time a charitable foundation has acquired control (within the meaning of subsection 149.1(12)) of a particular corporation, the foundation is liable to a penalty under this Part for a taxation year equal to
(a)5% of the total of all amounts, each of which is a dividend received by the foundation from the particular corporation in the taxation year and at a time when the foundation so controlled the particular corporation, except if the foundation is liable under paragraph (b) for a penalty in respect of the dividend; or
(b)if the Minister has, less than five years before the particular time, assessed a liability under paragraph (a) or this paragraph for a preceding taxation year of the foundation in respect of a dividend received from any corporation, the total of all amounts, each of which is a dividend received, after the particular time, by the foundation, from the particular corporation, in the taxation year and at a time when the foundation so controlled the particular corporation.
Marginal note:Penalty for excess corporate holdings
(3.1)A private foundation is liable to a penalty under this Part for a taxation year, in respect of a class of shares of the capital stock of a corporation, equal to
(a)5% of the amount, if any, determined by multiplying the divestment obligation percentage of the private foundation for the taxation year in respect of the class by the total fair market value of all of the issued and outstanding shares of the class, except if the private foundation is liable for the taxation year under paragraph (b) for a penalty in respect of the class; or
(b)10% of the amount, if any, determined by multiplying the divestment obligation percentage of the private foundation for the taxation year in respect of the class by the total fair market value of all of the issued and outstanding shares of the class, if
(i)the private foundation has failed to disclose, in its return required under subsection 149.1(14) for the taxation year,
(A)a material transaction, in the taxation year, of the private foundation in respect of the class,
(B)a material interest held at the end of the taxation year by a relevant person in respect of the private foundation, or
(C)the total corporate holdings percent-age of the private foundation in respect of the class at the end of the taxation year, unless at no time in the taxation year the private foundation held greater than an insignificant interest in respect of the class, or
(ii)the Minister has, less than five years before the end of the taxation year, assessed a liability under paragraph (a) or this paragraph for a preceding taxation year of the private foundation in respect of any divestment obligation percentage.
Marginal note:Avoidance of divestiture
(3.2)If, at the end of a taxation year, a private foundation would — but for a transaction or series of transactions entered into by the private foundation or a relevant person in respect of the private foundation (in this subsection referred to as the “holder”) a result of which is that the holder holds, directly or indirectly, an interest (or for civil law, a right), in a corporation other than shares — have a divestment obligation percentage for that taxation year in respect of the private foundation’s holdings of a class of shares of the capital stock of the corporation, and it can reasonably be considered that a purpose of the transaction or series is to avoid that divestment obligation percentage by substituting shares of the class for that interest or right, for the purposes of applying this section, subsection 149.1(1) and section 149.2,
(a)each of those interests or rights is deemed to have been converted, immediately after the time it was first held, directly or indirectly by the holder, into that number of shares of that class that would, if those shares were shares of the class that were issued by the corporation, have a fair market value equal to the fair market value of the interest or right at that time;
(b)each such share is deemed to be a share that is issued by the corporation and outstanding and to continue to be held by the holder until such time as the holder no longer holds the interest or right; and
(c)each of those shares is deemed to have a fair market value, at the particular time, equal to the fair market value, at the particular time, of a share of the class issued by the corporation, determined without reference to this subsection.
Marginal note:Where subsection (3.5) applies
(3.3)Subsection (3.5) applies to a private foundation at a particular time in a taxation year if
(a)at the particular time, a person (in this subsection and subsection (3.5) referred to as an “insider” of the private foundation) that is the private foundation, or is a relevant person in respect of the private foundation, is a beneficiary under a trust;
(b)at or before the particular time
(i)the insider acquired an interest in or under the trust, or
(ii)the trust acquired a property;
(c)it may reasonably be considered that a purpose of the acquisition described in paragraph (b) was to hold, directly or indirectly, shares of a class of the capital stock of a corporation (referred to in subsection (3.5) as the “subject corporation”);
(d)the shares described in paragraph (c) would, if they were held by the insider, cause the private foundation to have a divestment obligation percentage for the taxation year; and
(e)at the particular time, the insider holds the interest described in subparagraph (b)(i), or the trust holds the property described in subparagraph (b)(ii), as the case may be.
Marginal note:Rules applicable
(3.4)For the purpose of subsections (3.3) and (3.5),
(a)interests (or, for civil law, rights), other than shares, of a trust in a corporation that entitle the trust to a right described in paragraph 251(5)(b) in respect of a class of the capital stock of the corporation, are deemed to be converted into shares of that class in the manner described by paragraph (3.2)(a); and
(b)if the amount of income or capital of the trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be.
Marginal note:Avoidance of divestiture
(3.5)If this subsection applies to a private foundation at a particular time in respect of an interest of an insider of the private foundation in a trust, for the purposes of applying this section, subsection 149.1(1) and section 149.2,
(a)the insider is deemed to hold at the particular time, in addition to any shares of the capital stock of the subject corporation that it holds otherwise than because of this subsection, the number of shares, of the class of shares referred to in paragraph (3.3)(c), determined by the formula
A × B/C
where
(b)each of those shares is deemed to be a share that is issued by the subject corporation and outstanding and to continue to be held by the holder until such time as the holder no longer holds the interest or right; and
(c)each of those shares is deemed to have a fair market value, at the particular time, equal to the fair market value, at the particular time, of a share of the class issued by the subject corporation, determined without reference to this subsection.
Marginal note:Undue benefits
(4)A registered charity or registered Canadian amateur athletic association that, at a particular time in a taxation year, confers on a person an undue benefit is liable to a penalty under this Part for the taxation year equal to
(a)105% of the amount of the benefit, except if the charity or association is liable under paragraph (b) for a penalty in respect of the benefit; or
(b)if the Minister has, less than five years before the particular time, assessed a liability under paragraph (a) or this paragraph for a preceding taxation year of the charity or association and the undue benefit was conferred after that assessment, 110% of the amount of the benefit.
Marginal note:Meaning of undue benefits
(5)For the purposes of this Part, an undue benefit conferred on a person (referred to in this Part as the “beneficiary”) by a registered charity or registered Canadian amateur athletic association includes a disbursement by way of a gift or the amount of any part of the income, rights, property or resources of the charity or association that is paid, payable, assigned or otherwise made available for the personal benefit of any person who is a proprietor, member, shareholder, trustee or settlor of the charity or association, who has contributed or otherwise paid into the charity or association more than 50% of the capital of the charity or association, or who deals not at arm’s length with such a person or with the charity or association, as well as any benefit conferred on a beneficiary by another person, at the direction or with the consent of the charity or association, that would, if it were not conferred on the beneficiary, be an amount in respect of which the charity or association would have a right, but does not include a disbursement or benefit to the extent that it is
(a)an amount that is reasonable consideration or remuneration for property acquired by or services rendered to the charity or association;
(b)a gift made, or a benefit conferred,
(i)in the case of a registered charity, in the course of a charitable act in the ordinary course of the charitable activities carried on by the charity, unless it can reasonably be considered that the eligibility of the beneficiary for the benefit relates solely to the relationship of the beneficiary to the charity, and
(ii)in the case of a registered Canadian amateur athletic association, in the ordinary course of promoting amateur athletics in Canada on a nationwide basis; or
(c)a qualifying disbursement.
Marginal note:Failure to file information returns
(6)Every registered charity, registered Canadian amateur athletic association and registered journalism organization that fails to file a return for a taxation year as and when required by subsection 149.1(14) or (14.1) is liable to a penalty equal to $500.
Marginal note:Incorrect information
(7)Except where subsection (8) or (9) applies, every registered charity, registered Canadian amateur athletic association and registered journalism organization that issues, in a taxation year, a receipt for a gift otherwise than in accordance with this Act and the regulations is liable for the taxation year to a penalty equal to 5% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).
Marginal note:Increased penalty for subsequent assessment
(8)Except where subsection (9) applies, if the Minister has, less than five years before a particular time, assessed a penalty under subsection (7) or this subsection for a taxation year of a registered charity, registered Canadian amateur athletic association or registered journalism organization and, after that assessment and in a subsequent taxation year, it issues, at the particular time, a receipt for a gift otherwise than in accordance with this Act and the regulations, it is liable for the subsequent taxation year to a penalty equal to 10% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).
Marginal note:False information
(9)If at any time a person makes or furnishes, participates in the making of or causes another person to make or furnish a statement that the person knows, or would reasonably be expected to know but for circumstances amounting toculpable conduct(as defined in subsection 163.2(1)), is afalse statement(as defined in subsection 163.2(1)) on a receipt issued by, on behalf of or in the name of another person for the purposes of subsection 110.1(2) or 118.1(2), the person (or, where the person is an officer, employee, official or agent of a registered charity, registered Canadian amateur athletic association or registered journalism organization, the charity, association or organization) is liable for their taxation year that includes that time to a penalty equal to 125% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).
Marginal note:Maximum amount
(10)A person who is liable at any time to penalties under both section 163.2 and subsection (9) in respect of the same false statement is liable to pay only the greater of those penalties.
Marginal note:Delay of expenditure
(11)If, in a taxation year, a registered charity has entered into a transaction (including a gift to another registered charity) and it may reasonably be considered that a purpose of the transaction was to avoid or unduly delay the expenditure of amounts on charitable activities, the registered charity is liable to a penalty under this Act for its taxation year equal to 110% of the amount of expenditure avoided or delayed, and in the case of a gift to another registered charity, both charities are jointly and severally, or solidarily, liable to the penalty.
Marginal note:Gifts not at arm’s length
(12)If a registered charity has in a taxation year received a gift of property (other than a designated gift) from another registered charity with which it does not deal at arm’s length and it has expended, before the end of the next taxation year — in addition to its disbursement quota for each of those taxation years — an amount that is less than the fair market value of the property on charitable activities carried on by it or by way of gifts made by it that are qualifying disbursements to qualified donees or grantee organizations, with which it deals at arm’s length, the registered charity is liable to a penalty under this Act for that subsequent taxation year equal to 110% of the difference between the fair market value of the property and the additional amount expended.
Marginal note:Notice of suspension with assessment
188.2(1)The Minister shall, with an assessment referred to in this subsection, give notice by registered mail to a registered charity, registered Canadian amateur athletic association or registered journalism organization that its authority to issue an official receipt referred to in Part XXXV of theIncome Tax Regulationsis suspended for one year from the day that is seven days after the day on which the notice is mailed, if the Minister has assessed the charity, association or organization for a taxation year for
(a)a penalty under subsection 188.1(2);
(b)a penalty under paragraph 188.1(4)(b) in respect of an undue benefit, other than an undue benefit conferred by the charity or association by way of a gift; or
(c)a penalty under subsection 188.1(9) if the total of all such penalties for the taxation year exceeds $25,000.
Marginal note:Notice of suspension — general
(2)The Minister may give notice by registered mail to a person referred to in any of paragraphs (a) to (c) of the definitionqualified doneein subsection 149.1(1) that the authority of the person to issue an official receipt referred to in Part XXXV of theIncome Tax Regulationsis suspended for one year from the day that is seven days after the day on which the notice is mailed
(a)if the person contravenes any of sections 230 to 231.5;
(b)if it may reasonably be considered that the person has acted, in concert with another person that is the subject of a suspension under this section, to accept a gift or transfer of property on behalf of that other person;
(c)in the case of a person referred to in paragraph (a) of the definitionqualified doneein subsection 149.1(1), if the person has issued a receipt for a gift otherwise than in accordance with this Act and the regulations;
(d)in the case of a person that is a registered charity or registered Canadian amateur athletic association, if an ineligible individual is a director, trustee, officer or like official of the person, or controls or manages the person, directly or indirectly, in any manner whatever;
(e)in the case of a person that is a registered charity or registered Canadian amateur athletic association, if the person devotes any part of its resources to the direct or indirect support of, or opposition to, any political party or candidate for public office; or
(f)in the case of a person that is a registered charity, if afalse statement(as defined in subsection 163.2(1)) was made in circumstances amounting toculpable conduct(as defined in subsection 163.2(1)) in the furnishing of information for the purpose of maintaining its registration.
(g)[Repealed, 2018, c. 27, s. 20]
Marginal note:Suspension – failure to report
(2.1)If a registered charity, a registered Canadian amateur athletic association or a registered journalism organization fails to report information that is required to be included in a return filed under subsection 149.1(14) or (14.1), the Minister may give notice by registered mail to the charity, association or organization that its authority to issue an official receipt referred to in Part XXXV of theIncome Tax Regulationsis suspended from the day that is seven days after the day on which the notice is mailed until such time as the Minister notifies the charity, association or organization that the Minister has received the required information in prescribed form.
Marginal note:Effect of suspension
(3)If the Minister has issued a notice to a qualified donee under any of subsections (1) to (2.1), subject to subsection (4),
(a)the qualified donee is deemed, in respect of gifts made and property transferred to the qualified donee within the one-year period that begins on the day that is seven days after the day on which the notice is mailed, not to be a qualified donee for the purposes of subsections 110.1(1) and 118.1(1) and Part XXXV of theIncome Tax Regulations; and
(b)if the qualified donee is, during that period, offered a gift from any person, the qualified donee shall, before accepting the gift, inform that person that
(i)it has received the notice,
(ii)no deduction under subsection 110.1(1) or credit under subsection 118.1(3) may be claimed in respect of a gift made to it in the period, and
(iii)a gift made to it in the period is not a gift to a qualified donee.
Marginal note:Application for postponement
(4)If a notice of objection to a suspension under any of subsections (1) to (2.1) has been filed by a qualified donee, the qualified donee may file an application to the Tax Court of Canada for a postponement of that portion of the period of suspension that has not elapsed until the time determined by the Court.
Marginal note:Grounds for postponement
(5)The Tax Court of Canada may grant an application for postponement only if it would be just and equitable to do so.
Marginal note:Tax regarding non-qualified investment
189(1)Where at any particular time in a taxation year a debt (other than a debt in respect of which subsection 80.4(1) applies or would apply but for subsection 80.4(3)) is owing by a taxpayer to a registered charity that is a private foundation and at that time the debt was a non-qualified investment of the foundation, the taxpayer shall pay a tax under this Part for the year equal to the amount, if any, by which
(a)the amount that would be payable as interest on that debt for the period in the year during which it was outstanding and was a non-qualified investment of the foundation if the interest were payable at such prescribed rates as are in effect from time to time during the period
exceeds
(b)the amount of interest for the year paid on that debt by the taxpayer not later than 30 days after the end of the year.
Marginal note:Computation of interest on debt
(2)For the purpose of paragraph 189(1)(a), where a debt in respect of which subsection 189(1) applies (other than a share or right that is deemed by subsection 189(3) to be a debt) is owing by a taxpayer to a private foundation, interest on that debt for the period referred to in that paragraph shall be computed at the least of
(a)such prescribed rates as are in effect from time to time during the period,
(b)the rate per annum of interest on that debt that, having regard to all the circumstances (including the terms and conditions of the debt), would have been agreed on, at the time the debt was incurred, had the taxpayer and the foundation been dealing with each other at arm’s length and had the ordinary business of the foundation been the lending of money, and
(c)where that debt was incurred before April 22, 1982, a rate per annum equal to 6% plus 2% for each calendar year after 1982 and before the taxation year referred to in subsection 189(1).
Marginal note:Share deemed to be debt
(3)For the purpose of subsection 189(1), where a share, or a right to acquire a share, of the capital stock of a corporation held by a private foundation at any particular time during the corporation’s taxation year was at that time a non-qualified investment of the foundation, the share or right shall be deemed to be a debt owing at that time by the corporation to the foundation
(a)the amount of which was equal to,
(i)in the case of a share or right last acquired before April 22, 1982, the greater of its fair market value on April 21, 1982 and its cost amount to the foundation at the particular time, or
(ii)in any other case, its cost amount to the foundation at the particular time,
(b)that was outstanding throughout the period for which the share or right was held by the foundation during the year, and
(c)in respect of which the amount of interest paid in the year is equal to the total of all amounts each of which is the amount of a dividend received on the share by the foundation in the year,
and the reference in paragraph 189(1)(a) to “such prescribed rates as are in effect from time to time during the period” shall be read as a reference to “2/3 of such prescribed rates as are in effect from time to time during the period”.
Marginal note:Computation of interest with respect to a share
(4)For the purposes of subsection 189(3), where a share or right in respect of which that subsection applies was last acquired before April 22, 1982, the reference therein to “2/3 of such prescribed rates as are in effect from time to time during the period” shall be read as a reference to “the lesser of
(a)a rate per annum equal to 4% plus 1% for each 5 calendar years contained in the period commencing after 1982 and ending before the particular time, and
(b)a rate per annum equal to 2/3 of such prescribed rates as are in effect from time to time during the year”.
Marginal note:Share substitution
(5)For the purpose of subsection 189(3), where a share or right is acquired by a charity in exchange for another share or right in a transaction after April 21, 1982 to which section 51, 85, 85.1, 86 or 87 applies, it shall be deemed to be the same share or right as the one for which it was substituted.
Marginal note:Taxpayer to file return and pay tax
(6)Every taxpayer who is liable to pay tax under this Part (except a charity that is liable to pay tax under section 188(1)) for a taxation year shall, on or before the day on or before which the taxpayer is, or would be if tax were payable by the taxpayer under Part I for the year, required to file a return of income or an information return under Part I for the year,
(a)file with the Minister a return for the year in prescribed form and containing prescribed information, without notice or demand therefor;
(b)estimate in the return the amount of tax payable by the taxpayer under this Part for the year; and
(c)pay to the Receiver General the amount of tax payable by the taxpayer under this Part for the year.
Marginal note:Revoked charity to file returns
(6.1)Every taxpayer who is liable to pay tax under subsection 188(1.1) for a taxation year shall, on or before the day that is one year from the end of the taxation year, and without notice or demand,
(a)file with the Minister
(i)a return for the taxation year, in prescribed form and containing prescribed information, and
(ii)both an information return and a public information return for the taxation year, each in the form prescribed for the purpose of subsection 149.1(14); and
(b)estimate in the return referred to in subparagraph (a)(i) the amount of tax payable by the taxpayer under subsection 188(1.1) for the taxation year; and
(c)pay to the Receiver General the amount of tax payable by the taxpayer under subsection 188(1.1) for the taxation year.
Marginal note:Reduction of revocation tax liability
(6.2)If the Minister has, during the one-year period beginning immediately after the end of a taxation year of a person, assessed the person in respect of the person’s liability for tax under subsection 188(1.1) for that taxation year, has not after that period reassessed the tax liability of the person, and that liability exceeds $1,000, that liability is, at any particular time, reduced by the total of
(a)the amount, if any, by which
(i)the total of all amounts, each of which is an expenditure made by the charity, on charitable activities carried on by it, before the particular time and during the period (referred to in this subsection as the “post-assessment period”) that begins immediately after a notice of the latest such assessment was sent and ends at the end of the one-year period
exceeds
(ii)the income of the charity for the post-assessment period, including gifts received by the charity in that period from any source and any income that would be computed under section 3 if that period were a taxation year, and
(b)all amounts, each of which is an amount, in respect of a property transferred by the charity before the particular time and during the post-assessment period to a person that was at the time of the transfer an eligible donee in respect of the charity, equal to the amount, if any, by which the fair market value of the property, when transferred, exceeds the consideration given by the person for the transfer.
Marginal note:Reduction of liability for penalties
(6.3)If the Minister has assessed a particular person in respect of the particular person’s liability for penalties under section 188.1 for a taxation year, and that liability exceeds $1,000, that liability is, at any particular time, reduced by the total of all amounts, each of which is an amount, in respect of a property transferred by the particular person after the day on which the Minister first assessed that liability and before the particular time to another person that was at the time of the transfer an eligible donee described in paragraph 188(1.3)(a) in respect of the particular person, equal to the amount, if any, by which the fair market value of the property, when transferred, exceeds the total of
(a)the consideration given by the other person for the transfer, and
(b)the part of the amount in respect of the transfer that has resulted in a reduction of an amount otherwise payable under subsection 188(1.1).
Marginal note:Minister may assess
(7)Without limiting the authority of the Minister to revoke the registration of a registered charity or registered Canadian amateur athletic association, the Minister may also at any time assess a taxpayer in respect of any amount that a taxpayer is liable to pay under this Part.
Marginal note:Provisions applicable to Part
(8)Subsections 150(2) and (3), sections 152 and 158, subsection 161(11), sections 162 to 167 and Division J of Part I apply in respect of an amount assessed under this Part and of a notice of suspension under subsection 188.2(1) or (2) as if the notice were a notice of assessment made under section 152, with any modifications that the circumstances require including, for greater certainty, that a notice of suspension that is reconsidered or reassessed may be confirmed or vacated, but not varied, except that
(a)section 162 does not apply in respect of a return required to be filed under paragraph (6.1)(a); and
(b)the reference in each of subsections 165(2) and 166.1(3) to the expression “Chief of Appeals in a District Office or a Taxation Centre” is to be read as a reference to the expression “Assistant Commissioner, Appeals Branch”.
Marginal note:Clarification re objections under subsection 168(4)
(8.1)For greater certainty, in applying the provisions referred to in subsection (8), with any modifications that the circumstances require,
(a)a notice of objection referred to in subsection 168(4) does not constitute a notice of objection to a tax assessed under subsection 188(1.1); and
(b)an issue that could have been the subject of a notice of objection referred to in subsection 168(4) may not be appealed to the Tax Court of Canada under subsection 169(1).
Marginal note:Interest
(9)Subsection 161(11) does not apply to a liability of a taxpayer for a taxation year
(a)under subsection 188(1.1) to the extent that the liability is reduced by subsection (6.2), or paid, before the end of the one-year period that begins immediately after the end of the taxation year deemed to have ended by paragraph 188(1)(a); or
(b)under section 188.1 to the extent that the liability is reduced by subsection (6.3), or paid, before the end of the one-year period that begins immediately after the liability was first assessed.
Marginal note:Definitions
190(1)For the purposes of this Part,
contractual service marginfor a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12); (marge sur services contractuels)
financial institutionmeans a corporation that
(a)is a bank,
(b)is authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public,
(c)is authorized under the laws of Canada or a province to accept deposits from the public and carries on the business of lending money on the security of real property or immovables or investing in indebtedness on the security of mortgages on real property or of hypothecs on immovables,
(d)is a life insurance corporation that carries on business in Canada, or
(e)is a corporation all or substantially all of the assets of which are shares or indebtedness of corporations described in any of paragraphs (a) to (d) or this paragraph to which the corporation is related; (institution financière)
group of insurance contractsof an insurer has the same meaning as in subsection 138(12); (groupe de contrats d’assurance)
group of reinsurance contractsheld by an insurer has the same meaning as in subsection 138(12); (groupe de contrats de réassurance)
group of segregated fund policiesof an insurer has the same meaning as in subsection 138(12); (groupe de polices à fonds réservé)
long-term debtmeans
(a)in the case of a bank, its subordinated indebtedness (within the meaning assigned by section 2 of theBank Act) evidenced by obligations issued for a term of not less than 5 years,
(b)in the case of an insurance corporation, its subordinated indebtedness (within the meaning assigned by section 2 of theInsurance Companies Act) evidenced by obligations issued for a term of not less than 5 years, and
(c)in the case of any other corporation, its subordinated indebtedness (within the meaning that would be assigned by section 2 of theBank Actif the definition of that expression in that section were applied with such modifications as the circumstances require) evidenced by obligations issued for a term of not less than 5 years; (passif à long terme)
policyholders’ liabilitiesof an insurer at the end of a taxation year has the same meaning as in subsection 138(12); (obligation envers les titulaires de polices)
reserves, in respect of a financial institution for a taxation year, means the amount at the end of the year of all of the institution’s reserves, provisions and allowances (other than allowances in respect of depreciation or depletion) and, for greater certainty, includes any provision in respect of deferred taxes. (réserves)
Marginal note:Prescribed meanings
(1.1)For the purposes of this Part, the expressionsattributed surplus,Canadian assets,Canadian reserve liabilities,total assetsandtotal reserve liabilitieshave the meanings that are prescribed.
Marginal note:Application of ss. 181(3) and (4)
(2)Subsections 181(3) and 181(4) apply to this Part with such modifications as the circumstances require.
Marginal note:Tax payable
190.1(1)Every corporation that is a financial institution at any time during a taxation year shall pay a tax under this Part for the year equal to 1.25% of the amount, if any, by which its taxable capital employed in Canada for the year exceeds its capital deduction for the year.
(1.1)and (1.2)[Repealed, 2007, c. 2, s. 40]
Marginal note:Short taxation years
(2)Where a taxation year of a corporation is less than 51 weeks, the amount determined under subsection 190.1(1) for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of 365.
Marginal note:Deduction
(3)There may be deducted in computing a corporation’s tax payable under this Part for a taxation year an amount equal to the total of
(a)the corporation’s tax payable under Parts I and VI.2 (determined in accordance with subsection 191.5(9)) for the year; and
(b)such part as the corporation claims of its unused Part I tax credits and unused surtax credits for its 7 taxation years immediately before and its 3 taxation years immediately after the year.
(c)and (d)[Repealed, 2007, c. 2, s. 40]
Marginal note:Idem
(4)For the purposes of this subsection and subsections 190.1(3), 190.1(5) and 190.1(6),
(a)an amount may not be claimed under subsection 190.1(3) in computing a corporation’s tax payable under this Part for a particular taxation year
(i)in respect of its unused Part I tax credit for another taxation year, until its unused Part I tax credits for taxation years preceding the other year that may be claimed under this Part for the particular year have been claimed, and
(ii)in respect of its unused surtax credit for another taxation year, until its unused surtax credits for taxation years preceding the other year that may be claimed under Part I.3 or this Part for the particular year have been claimed;
(b)an amount may be claimed under subsection 190.1(3) in computing a corporation’s tax payable under this Part for a particular taxation year
(i)in respect of its unused Part I tax credit for another taxation year, only to the extent that it exceeds the total of all amounts each of which is the amount claimed in respect of that unused Part I tax credit in computing its tax payable under this Part for a taxation year preceding the particular year, and
(ii)in respect of its unused surtax credit for another taxation year, only to the extent that it exceeds the total of all amounts each of which is the amount claimed in respect of the unused surtax credit
(A)in computing its tax payable under this Part for a taxation year preceding the particular year, or
(B)in computing its tax payable under Part I.3 for the particular year or a taxation year preceding the particular year; and
(c)an amount may be claimed under paragraph (3)(b) in computing a corporation’s tax payable under this Part for a taxation year that ends before July 1, 2006 in respect of its unused Part I tax credit for a taxation year that ends after July 1, 2006 (referred to in this paragraph as the “credit taxation year”) only to the extent that the unused Part I tax credit exceeds the amount, if any, by which
(i)the amount that would, if this Part were read as it applied to the 2005 taxation year, be the corporation’s tax payable under this Part for the credit taxation year
exceeds
(ii)the corporation’s tax payable under this Part for the credit taxation year.
Marginal note:Definitions
(5)For the purposes of subsections 190.1(3), 190.1(4) and 190.1(6),
unused Part I tax credit, of a corporation for a taxation year, means the amount, if any, by which
(a)the corporation’s tax payable under Part I for the year
exceeds
(b)the amount that would, but for subsection (3), be its tax payable under this Part for the year; (crédit d’impôt de la partie I inutilisé)
unused surtax creditof a corporation for a taxation year has the meaning assigned by subsection 181.1(6). (crédit de surtaxe inutilisé)
Marginal note:Acquisition of control
(6)Where at any time control of a corporation was acquired by a person or group of persons, no amount in respect of its unused Part I tax credit or unused surtax credit for a taxation year ending before that time is deductible by the corporation for a taxation year ending after the time and no amount in respect of its unused Part I tax credit or unused surtax credit for a taxation year ending after that time is deductible by the corporation for a taxation year ending before that time, except that
(a)the corporation’s unused Part I tax credit and unused surtax credit for a particular taxation year that ended before that time is deductible by the corporation for a taxation year that ends after that time (in this paragraph referred to as the “subsequent year”) to the extent of that proportion of the corporation’s tax payable under Part I for the particular year that
(i)the amount, if any, by which
(A)the total of all amounts each of which is
(I)its income under Part I for the particular year from a business that was carried on by the corporation for profit or with a reasonable expectation of profit throughout the subsequent year, or
(II)where properties were sold, leased, rented or developed or services were rendered in the course of carrying on that business before that time, its income under Part I for the particular year from any other business all or substantially all of the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services
exceeds
(B)the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or 111(1)(d) in computing its taxable income for the particular year in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of any business referred to in clause 190.1(6)(a)(i)(A)
is of the greater of
(ii)the amount determined under subparagraph 190.1(6)(a)(i), and
(iii)the corporation’s taxable income for the particular year; and
(b)the corporation’s unused Part I tax credit and unused surtax credit for a particular taxation year that ends after that time is deductible by the corporation for a taxation year (in this paragraph referred to as the“preceding year”) that ended before that time to the extent of that proportion of the corporation’s tax payable under Part I for the particular year that
(i)the amount, if any, by which
(A)the total of all amounts each of which is
(I)its income under Part I for the particular year from a business that was carried on by the corporation in the preceding year and throughout the particular year for profit or with a reasonable expectation of profit, or
(II)where properties were sold, leased, rented or developed or services were rendered in the course of carrying on that business before that time, its income under Part I for the particular year from any other business all or substantially all of the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services
exceeds
(B)the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or 111(1)(d) in computing its taxable income for the particular year in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of any business referred to in clause 190.1(6)(b)(i)(A)
is of the greater of
(ii)the amount determined under subparagraph 190.1(6)(b)(i), and
(iii)the corporation’s taxable income for the particular year.
Marginal note:Taxable capital employed in Canada
190.11For the purposes of this Part, the taxable capital employed in Canada of a financial institution for a taxation year is,
(a)in the case of a financial institution other than a life insurance corporation, that proportion of its taxable capital for the year that its Canadian assets at the end of the year is of its total assets at the end of the year;
(b)in the case of a life insurance corporation that was resident in Canada at any time in the year, the total of
(i)that proportion of the amount, if any, by which the total of
(A)its taxable capital for the year, and
(B)the amount prescribed for the year in respect of the corporation
exceeds
(C)the amount prescribed for the year in respect of the corporation
that its Canadian reserve liabilities as at the end of the year is of the total of
(D)its total reserve liabilities as at the end of the year, and
(E)the amount prescribed for the year in respect of the corporation; and
(ii)[Repealed, 2009, c. 2, s. 63]
(c)in the case of a life insurance corporation that was non-resident throughout the year, its taxable capital for the year.
Marginal note:Taxable capital
190.12For the purposes of this Part, the taxable capital of a corporation for a taxation year is the amount, if any, by which its capital for the year exceeds the total determined under section 190.14 in respect of its investments for the year in financial institutions related to it.
Marginal note:Capital
190.13For the purposes of this Part, the capital of a financial institution for a taxation year is,
(a)in the case of a financial institution, other than an authorized foreign bank or a life insurance corporation, the amount, if any, by which the total at the end of the year of
(i)the amount of its long-term debt,
(ii)the amount of its capital stock (or, in the case of an institution incorporated without share capital, the amount of its members’ contributions), retained earnings, contributed surplus and any other surpluses, and
(iii)the amount of its reserves, except to the extent that they were deducted in computing its income under Part I for the year,
exceeds the total at the end of the year of
(iv)the amount of its deferred tax debit balance, and
(v)the amount of any deficit deducted in computing its shareholders’ equity (including, for this purpose, the amount of any provision for the redemption of preferred shares);
(b)in the case of a life insurance corporation that was resident in Canada at any time in the year, the amount determined by the formula
A + B + (0.9 × C) − (0.9 × D) − E
where
(i)capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions),
(ii)retained earnings,
(iii)accumulated other comprehensive income,
(iv)policyholders’ liabilities,
(v)contributed surplus, and
(vi)any other surpluses,
(i)if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, and
(ii)in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of risk under a segregated fund policy, and
(c)in the case of a life insurance corporation that was non-resident throughout the year, the total at the end of the year of
(i)the amount that is the greater of
(A)the amount, if any, by which
(I)its surplus funds derived from operations (as defined in subsection 138(12)) as of the end of the year, computed as if no tax were payable under Part I.3 or this Part for the year
exceeds the total of all amounts each of which is
(II)an amount on which it was required to pay, or would but for subsection 219(5.2) have been required to pay, tax under Part XIV for a preceding taxation year, except the portion, if any, of the amount on which tax was payable, or would have been payable, because of subparagraph 219(4)(a)(i.1), and
(III)an amount on which it was required to pay, or would but for subsection 219(5.2) have been required to pay, tax under subsection 219(5.1) for the year because of the transfer of an insurance business to which subsection 138(11.5) or 138(11.92) has applied, and
(B)its attributed surplus for the year,
(ii)any other surpluses relating to its insurance businesses carried on in Canada,
(iii)the amount of its long-term debt that can reasonably be regarded as relating to its insurance businesses carried on in Canada; and
(iv)[Repealed, 2009, c. 2, s. 64]
(d)in the case of an authorized foreign bank, the total of
(i)10% of the total of all amounts, each of which is the risk-weighted amount at the end of the year of an on-balance sheet asset or an off-balance sheet exposure of the bank in respect of its Canadian banking business that the bank would be required to report under the OSFI risk-weighting guidelines if those guidelines applied and required a report at that time, and
(ii)the total of all amounts, each of which is an amount at the end of the year in respect of the bank’s Canadian banking business that
(A)if the bank were a bank listed in Schedule II to theBank Act, would be required under the risk-based capital adequacy guidelines issued by the Superintendent of Financial Institutions and applicable at that time to be deducted from the bank’s capital in determining the amount of capital available to satisfy the Superintendent’s requirement that capital equal a particular proportion of risk-weighted assets and exposures, and
(B)is not an amount in respect of a loss protection facility required to be deducted from capital under the Superintendent’s guidelines respecting asset securitization applicable at that time.
Marginal note:Investment in related institutions
190.14(1)A corporation’s investment for a taxation year in a financial institution related to it is
(a)in the case of a corporation that was resident in Canada at any time in the year, the total of all amounts each of which is the carrying value (or in the case of contributed surplus, the amount) at the end of the year of an eligible investment of the corporation in the financial institution;
(b)in the case of a life insurance corporation that was non-resident throughout the year, the total of all amounts each of which is the carrying value (or is, in the case of contributed surplus, the amount) at the end of the year of an eligible investment of the corporation in the financial institution that was used or held by the corporation in the year in the course of carrying on an insurance business in Canada (or that, in the case of contributed surplus, was contributed by the corporation in the course of carrying on that business); and
(c)in the case of a corporation that is an authorized foreign bank, the total of all amounts each of which is the amount at the end of the year, before the application of risk weights, that would be required to be reported under the OSFI risk-weighting guidelines if those guidelines applied and required a report at that time, of an eligible investment of the corporation in the financial institution that was used or held by the corporation in the year in the course of carrying on its Canadian banking business or, in the case of an eligible investment that is contributed surplus of the financial institution at the end of the year, the amount of the surplus contributed by the corporation in the course of carrying on that business.
Marginal note:Interpretation
(2)For the purpose of subsection (1), an eligible investment of a corporation in a financial institution is a share of the capital stock or long-term debt (and, where the corporation is an insurance corporation, is non-segregated property within the meaning assigned by subsection 138(12)) of the financial institution or any surplus of the financial institution contributed by the corporation (other than an amount otherwise included as a share or debt) if the financial institution at the end of the year is
(a)related to the corporation; and
(b)resident in Canada or can reasonably be regarded as using the surplus or the proceeds of the share or debt in a business carried on by the financial institution through a permanent establishment (as defined by regulation) in Canada.
Marginal note:Capital deduction
190.15(1)For the purposes of this Part, the capital deduction of a corporation for a taxation year during which it was at any time a financial institution is $1 billion unless the corporation was related to another financial institution at the end of the year, in which case, subject to subsection (4), its capital deduction for the year is nil.
Marginal note:Related financial institution
(2)A corporation that is a financial institution at any time during a taxation year and that was related to another financial institution at the end of the year may file with the Minister an agreement in prescribed form on behalf of the related group of which the corporation is a member 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
(3)The Minister may request a corporation that is a financial institution at any time during a taxation year and that was related to any other financial institution at the end of the year to file with the Minister an agreement referred to in subsection (2) and, if the corporation does not file such an agreement within 30 days after receiving the request, the Minister may allocate an amount among the members of the related group of which the corporation is a member for the year not exceeding $1 billion.
Marginal note:Idem
(4)For the purposes of this Part, the least amount allocated for a taxation year to each member of a related group under an agreement described in subsection 190.15(2) or by the Minister pursuant to subsection 190.15(3) is the capital deduction for the taxation year of that member, but, if no such allocation is made, the capital deduction of each member of the related group for that year is nil.
Marginal note:Idem
(5)Where a corporation (in this subsection referred to as the “first corporation”) has more than one taxation year ending in the same calendar year and is related in 2 or more of those taxation years to another corporation that has a taxation year ending in that calendar year, the capital deduction of the first corporation for each such taxation year at the end of which it is related to the other corporation is, for the purposes of this Part, an amount equal to its capital deduction for the first such taxation year.
Marginal note:Idem
(6)Two corporations that would, but for this subsection, be related to each other solely because of
(a)the control of any corporation by Her Majesty in right of Canada or a province, or
(b)a right referred to in paragraph 251(5)(b),
are, for the purposes of this section and section 190.14, deemed not to be related to each other except that, where at any time a taxpayer has a right referred to in paragraph 251(5)(b) with respect to shares and it can reasonably be considered that one of the main purposes for the acquisition of the right was to avoid any limitation on the amount of a corporation’s capital deduction for a taxation year, for the purpose of determining whether a corporation is related to any other corporation, the corporations are, for the purpose of this section, deemed to be in the same position in relation to each other as if the right were immediate and absolute and as if the taxpayer had exercised the right at that time.
190.16[Repealed, 2013, c. 34, s. 331]
190.17[Repealed, 2007, c. 2, s. 42]
Marginal note:Return
190.2A corporation that is or would, but for subsection 190.1(3), be 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 the corporation is required by section 150 to file its return of income for the year under Part I, a return of capital for the year in prescribed form containing an estimate of the tax payable under this Part by it for the year.
Marginal note:Provisions applicable to Part
190.21Sections 152, 158 and 159, subsection 161(11), sections 162 to 167 and Division J of Part I apply to this Part with such modifications as the circumstances require and, for the purpose of this section, paragraph 152(6)(a) shall be read as follows:
“(a)a deduction under subsection 190.1(3) in respect of any unused surtax credit or unused Part I tax credit (within the meanings assigned by subsection 190.1(5)) for a subsequent taxation year,”
Marginal note:Provisions applicable -- Crown corporations
190.211Section 27 applies to this Part with any modifications that the circumstances require.
190.22[Repealed, 1994, c. 7, s. 114(1)]
190.23[Repealed, 1994, c. 7, Sch