A-19.
Marginal note:Exception
(1.1)Where at a particular time
(a)a corporation, commission or association (in this subsection referred to as “the entity”) would, but for this subsection, be described in any of paragraphs (1)(d) to (d.6),
(b)one or more other persons (other than Her Majesty in right of Canada or a province, a municipality in Canada or a person which, at the particular time, is a person described in any of subparagraphs (1)(d) to (d.6)) have at the particular time one or more rights in equity or otherwise, either immediately or in the future and either absolutely or contingently to, or to acquire, shares or capital of the entity, and
(c)the exercise of the rights referred to in paragraph (b) would result in the entity not being a person described in any of paragraphs (1)(d.1) to (d.6) at the particular time,
the entity is deemed not to be, at the particular time, a person described in any of paragraphs (1)(d) to (d.6).
Marginal note:Election
(1.11)Subsection (1) does not apply in respect of a person’s taxable income for a particular taxation year that begins after 1998 where
(a)paragraph (1)(d) did not apply in respect of the person’s taxable income for the person’s last taxation year that began before 1999;
(b)paragraph (1)(d.2), (d.3) or (d.4) would, but for this subsection, have applied in respect of the person’s taxable income for the person’s first taxation year that began after 1998;
(c)there has been no change in the direct or indirect control of the person during the period that
(i)began at the beginning of the person’s first taxation year that began after 1998, and
(ii)ends at the end of the particular year;
(d)the person elects in writing before 2002 that this subsection apply; and
(e)the person has not notified the Minister in writing before the particular year that the election has been revoked.
Marginal note:Deemed election
(1.12)If at any time there is an amalgamation (within the meaning assigned by subsection 87(1)) of a corporation (in this subsection referred to as the “parent”) and one or more other corporations (each of which in this subsection is referred to as the “subsidiary”) each of which is a subsidiary wholly-owned corporation of the parent, and immediately before that time the parent is a person to which subsection (1) does not apply by reason of the application of subsection (1.11), the new corporation is deemed, for the purposes of subsection (1.11), to be the same corporation as, and a continuation of, the parent.
Marginal note:Income test
(1.2)For the purposes of paragraphs (1)(d.5) and (d.6), income of a corporation, a commission or an association from activities carried on outside the geographical boundaries of a municipality or of a municipal or public body does not include income from activities carried on
(a)under an agreement in writing between
(i)the corporation, commission or association, and
(ii)a person who is Her Majesty in right of Canada or of a province, a municipality, a municipal or public body or a corporation to which any of paragraphs (1)(d) to (d.6) applies and that is controlled by Her Majesty in right of Canada or of a province, by a municipality in Canada or by a municipal or public body in Canada
within the geographical boundaries of,
(iii)if the person is Her Majesty in right of Canada or a corporation controlled by Her Majesty in right of Canada, Canada,
(iv)if the person is Her Majesty in right of a province or a corporation controlled by Her Majesty in right of a province, the province,
(v)if the person is a municipality in Canada or a corporation controlled by a municipality in Canada, the municipality, and
(vi)if the person is a municipal or public body performing a function of government in Canada or a corporation controlled by such a body, the area described in subsection (11) in respect of the person; or
(b)in a province as
(i)a producer of electrical energy or natural gas, or
(ii)a distributor of electrical energy, heat, natural gas or water,
where the activities are regulated under the laws of the province.
Marginal note:Votes orde factocontrol
(1.3)Paragraphs (1)(d) to (d.6) do not apply in respect of a person’s taxable income for a period in a taxation year if at any time during the period
(a)the person is a corporation shares of the capital stock of which are owned by one or more other persons that, in total, give them more than 10% of the votes that could be cast at a meeting of shareholders of the corporation, other than shares that are owned by one or more persons each of which is
(i)Her Majesty in right of Canada or of a province,
(ii)a municipality in Canada,
(iii)a municipal or public body performing a function of government in Canada, or
(iv)a corporation, a commission or an association, to which any of paragraphs (1)(d) to (d.6) apply; or
(b)the person is, or would be if the person were a corporation, controlled, directly or indirectly in any manner whatever, by a person, or by a group of persons that includes a person, who is not
(i)Her Majesty in right of Canada or of a province,
(ii)a municipality in Canada,
(iii)a municipal or public body performing a function of government in Canada, or
(iv)a corporation, a commission or an association, to which any of paragraphs (1)(d) to (d.6) apply.
Marginal note:Determination of income
(2)For the purposes of paragraphs 149(1)(e), 149(1)(i), 149(1)(j) and 149(1)(l), in computing the part, if any, of any income that was payable to or otherwise available for the personal benefit of any person or the total of any amounts that is not less than a percentage specified in any of those paragraphs of any income for a period, the amount of such income shall be deemed to be the amount thereof determined on the assumption that the amount of any taxable capital gain or allowable capital loss is nil.
Marginal note:Application of s. (1)
(3)Subsection 149(1) does not apply in respect of the taxable income of a benevolent or fraternal society or order from carrying on a life insurance business or, for greater certainty, from the sale of property used by it in the year in, or held by it in the year in the course of, carrying on a life insurance business.
Marginal note:Idem
(4)For the purposes of subsection 149(3), the taxable income of a benevolent or fraternal benefit society or order from carrying on a life insurance business shall be computed on the assumption that it had no income or loss from any other sources.
(4.1) to (4.3)[Repealed, 2017, c. 20, s. 24]
Marginal note:Exception — investment income of certain clubs
(5)Notwithstanding subsections (1) and (2), where a club, society or association was for any period, a club, society or association described in paragraph (1)(l) the main purpose of which was to provide dining, recreational or sporting facilities for its members (in this subsection referred to as the “club”), a trust is deemed to have been created on the later of the commencement of the period and the end of 1971 and to have continued in existence throughout the period, and, throughout that period, the following rules apply:
(a)the property of the club shall be deemed to be the property of the trust;
(b)where the club is a corporation, the corporation shall be deemed to be the trustee having control of the trust property;
(c)where the club is not a corporation, the officers of the club shall be deemed to be the trustees having control of the trust property;
(d)tax under this Part is payable by the trust on its taxable income for each taxation year;
(e)the income and taxable income of the trust for each taxation year shall be computed on the assumption that it had no incomes or losses other than
(i)incomes and losses from property, and
(ii)taxable capital gains and allowable capital losses from dispositions of property, other than property used exclusively for and directly in the course of providing the dining, recreational or sporting facilities provided by it for its members;
(f)in computing the taxable income of the trust for each taxation year
(i)there may be deducted, in addition to any other deductions permitted by this Part, $2,000, and
(ii)no deduction shall be made under section 112 or 113; and
(g)the provisions of Subdivision K of Division B (except subsections 104(1) and 104(2)) do not apply in respect of the trust.
Marginal note:Apportionment rule
(6)Where it is necessary for the purpose of this section to ascertain the taxable income of a taxpayer for a period that is a part of a taxation year, the taxable income for the period shall be deemed to be the proportion of the taxable income for the taxation year that the number of days in the period is of the number of days in the taxation year.
Marginal note:Time for filing
(7)A corporation the taxable income of which for a taxation year is exempt from tax under this Part because of paragraph 149(1)(j) shall file with the Minister a prescribed form containing prescribed information on or before its filing-due date for the year.
Marginal note:Penalty for failure to file on time
(7.1)Where a corporation fails to file the prescribed form as required by subsection 149(7) for a taxation year, it is liable to a penalty equal to the amount determined by the formula
A × B
where
(a)$500, and
(b)2% of its taxable income for the year; and
(a)12, and
(b)the number of months in whole or in part that are in the period that begins on the day on or before which the prescribed form is required to be filed and ends on the day it is filed.
Marginal note:Interpretation of para. (1)(j)
(8)For the purpose of paragraph 149(1)(j),
(a)a corporation is controlled by another corporation if more than 50% of its issued share capital (having full voting rights under all circumstances) belongs to
(i)the other corporation, or
(ii)the other corporation and persons with whom the other corporation does not deal at arm’s length,
but a corporation shall be deemed not to have acquired control of a corporation if it has not purchased (or otherwise acquired for a consideration) any of the shares in the capital stock of that corporation; and
(b)there shall be included in computing a corporation’s income and in determining its gross revenue the amount of all gifts received by the corporation and all amounts contributed to the corporation to be used for scientific research and experimental development.
Marginal note:Rules for determining gross revenue
(9)In determining the gross revenue of a corporation for the purpose of determining whether it is described by paragraph 149(1)(j) for a taxation year,
(a)there may be deducted an amount not exceeding its gross revenue for the year computed without including or deducting any amount under this subsection; and
(b)there shall be included any amount that has been deducted under this subsection for the preceding taxation year.
Marginal note:Becoming or ceasing to be exempt
(10)If at any time (in this subsection referred to asthat time), a person — that is a corporation or, if that time is after September 12, 2013, a trust — becomes or ceases to be exempt from tax under this Part on its taxable income, the following rules apply:
(a)the taxation year of the person that would, but for this paragraph, have included that time is deemed to end immediately before that time, a new taxation year of the person is deemed to begin at that time and, for the purpose of determining the person’s fiscal period after that time, the person is deemed not to have established a fiscal period before that time;
(a.1)for the purpose of computing the person’s income for its first taxation year that ends after that time, the person is deemed to have deducted under sections 20, 138 and 140 in computing the person’s income for its taxation year that ended immediately before that time, the greatest amount that could have been claimed or deducted by the person for that year as a reserve under those sections;
(b)the person is deemed to have disposed, at the time (in this subsection referred to as the “disposition time”) that is immediately before the time that is immediately before that time, of each property held by the person immediately before that time for an amount equal to its fair market value at that time and to have reacquired the property at that time at a cost equal to that fair market value; and
(c)for the purposes of applying sections 37, 65 to 66.4, 66.7, 111 and 126, subsections 127(5) to (36) and section 127.3 to the person, the person is deemed to be a new corporation or trust, as the case may be, the first taxation year of which began at that time.
(d)[Repealed, 2016, c. 12, s. 54]
Marginal note:Geographical boundaries — body performing government functions
(11)For the purpose of this section, the geographical boundaries of a municipal or public body performing a function of government are
(a)the geographical boundaries that encompass the area in respect of which an Act of Parliament or an agreement given effect by an Act of Parliament recognizes or grants to the body a power to impose taxes; or
(b)if paragraph (a) does not apply, the geographical boundaries within which that body has been authorized by the laws of Canada or of a province to exercise that function.
Marginal note:Information returns
(12)Every person who, because of paragraph 149(1)(e) or 149(1)(l), is exempt from tax under this Part on all or part of the person’s taxable income shall, within 6 months after the end of each fiscal period of the person and without notice or demand therefor, file with the Minister an information return for the period in prescribed form and containing prescribed information, if
(a)the total of all amounts each of which is a taxable dividend or an amount received or receivable by the person as, on account of, in lieu of or in satisfaction of, interest, rentals or royalties in the period exceeds $10,000;
(b)at the end of the person’s preceding fiscal period the total assets of the person (determined in accordance with generally accepted accounting principles) exceeded $200,000; or
(c)an information return was required to be filed under this subsection by the person for a preceding fiscal period.
149.01[Repealed, 2017, c. 12, s. 12]
Marginal note:Definitions
149.1(1)In this section and section 149.2,
Canadian amateur athletic associationmeans an association that
(a)was created under any law in force in Canada,
(b)is resident in Canada,
(c)has no part of its income payable to, or otherwise available for the personal benefit of, any proprietor, member or shareholder of the association unless the proprietor, member or shareholder was a club, society or association the primary purpose and primary function of which was the promotion of amateur athletics in Canada,
(d)has the promotion of amateur athletics in Canada on a nationwide basis as its exclusive purpose and exclusive function, and
(e)devotes all its resources to that purpose and function; (association canadienne de sport amateur)
capital gains pool[Repealed, 2010, c. 25, s. 37]
charitable activitiesincludes public policy dialogue and development activities carried on in furtherance of a charitable purpose; (activités de bienfaisance)
charitable foundationmeans a corporation or trust that is constituted and operated exclusively for charitable purposes, no part of the income of which is payable to, or is otherwise available for, the personal benefit of any proprietor, member, shareholder, trustee or settlor thereof, and that is not a charitable organization; (fondation de bienfaisance)
charitable organization, at any particular time, means an organization, whether or not incorporated,
(a)constituted and operated exclusively for charitable purposes,
(a.1)all the resources of which are devoted to charitable activities carried on by the organization itself or to making qualifying disbursements,
(b)no part of the income of which is payable to, or is otherwise available for, the personal benefit of any proprietor, member, shareholder, trustee or settlor thereof,
(c)more than 50% of the directors, trustees, officers or like officials of which deal at arm’s length with each other and with
(i)each of the other directors, trustees, officers and like officials of the organization,
(ii)each person described by subparagraph (d)(i) or (ii), and
(iii)each member of a group of persons (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)) who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described by subparagraph (d)(i), and
(d)that is not, at the particular time, and would not at the particular time be, if the organization were a corporation, controlled directly or indirectly in any manner whatever
(i)by a person (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)),
(A)who immediately after the particular time, has contributed to the organization amounts that are, in total, greater than 50% of the capital of the organization immediately after the particular time, and
(B)who immediately after the person’s last contribution at or before the particular time, had contributed to the organization amounts that were, in total, greater than 50% of the capital of the organization immediately after the making of that last contribution, or
(ii)by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph (i); (oeuvre de bienfaisance)
charitable purposesincludes making qualifying disbursements; (fins de bienfaisance)
charitymeans a charitable organization or charitable foundation; (organisme de bienfaisance)
designated giftmeans that portion of a gift of property made in a taxation year by a particular registered charity, to another registered charity with which it does not deal at arm’s length, that is designated by the particular registered charity in its information return for the taxation year; (don déterminé)
disbursement quota, for a taxation year of a registered charity, means the amount determined by the formula
A ÷ 365 × B
where
(a)3.5% of the prescribed amount for the year, in respect of all or a portion of a property owned by the charity at any time in the 24 months immediately preceding the taxation year that was not used directly in charitable activities or administration, if the prescribed amount is equal to or less than $1 million but greater than
(i)if the registered charity is a charitable organization, $100,000, and
(ii)in any other case, $25,000,
(b)if the prescribed amount for the year in respect of all or a portion of a property owned by the charity at any time in the 24 months immediately preceding the taxation year that was not used directly in charitable activities or administration is greater than $1 million, $35,000 plus 5% of the amount by which the prescribed amount exceeds $1 million, and
(c)in any other case, nil; (contingent des versements)
divestment obligation percentageof a private foundation for a particular taxation year, in respect of a class of shares of the capital stock of a corporation, is the percentage, if any, that is the lesser of
(a)the excess, if any, at the end of the taxation year, of the percentage of issued and outstanding shares of that class that are held by the private foundation over the exempt shares percentage of the private foundation, and
(b)the percentage determined by the formula
A + B – C
where
enduring property[Repealed, 2010, c. 25, s. 37]
entrusted shares percentage[Repealed, 2009, c. 2, s. 55]
equity percentageof a person in a corporation has, subject to subsection 149.2(2.1), the same meaning as defined in subsection 95(4); (pourcentage d’intérêt)
excess corporate holdings percentageof a private foundation, in respect of a class of shares of the capital stock of a corporation, at any time means
(a)if the private foundation is not, at that time, a registered charity, 0%,
(b)if the private foundation holds, at that time, an insignificant interest in respect of the class, 0%, and
(c)in any other case, the number of percentage points, if any, by which the total corporate holdings percentage of the private foundation in respect of the class, at that time, exceeds the greater of 20% and the exempt shares percentage, at that time, of the private foundation in respect of the class; (pourcentage de participation excédentaire)
exempt sharesheld by a private foundation at any particular time means shares, of a class of the capital stock of a corporation,
(a)that were acquired by the private foundation by way of a gift that was subject to a trust or direction that the shares are to be held by the private foundation for a period ending not earlier than the particular time, if the gift was made
(i)before March 19, 2007,
(ii)on or after March 19, 2007 and before March 19, 2012
(A)under the terms of a will that was executed by a taxpayer before March 19, 2007 and not amended, by codicil or otherwise, on or after March 19, 2007, and
(B)in circumstances where no other will of the taxpayer was executed or amended on or after March 19, 2007, or
(iii)on or after March 19, 2007, under the terms of a trust created before March 19, 2007, and not amended on or after March 19, 2007,
(b)that were last acquired by the private foundation before March 19, 2007, other than shares that, at the particular time,
(i)are described in paragraph (a),
(ii)are listed on a designated stock exchange, or
(iii)are shares of the capital stock of a particular corporation, which particular corporation has an equity percentage greater than 0% in a public corporation, a class of the shares of the capital stock of which is listed on a designated stock exchange, if
(A)a corporation (in this subparagraph referred to as a “controlled corporation” and which may, for greater certainty, be the particular corporation)
(I)owns one or more shares of a class of the capital stock of the public corporation, and
(II)is controlled, directly or indirectly in any manner whatever, by one or more relevant persons in respect of the private foundation, or by the private foundation alone or together with one or more such relevant persons,
(B)the private foundation, if it held directly the shares described in subclause (A)(I), would have an excess corporate holdings percentage (determined without reference to subsection 149.2(8)) in respect of that class of shares that is greater than 0%, and
(C)the private foundation, alone or together with all controlled corporations, holds more than an insignificant interest in respect of the class of shares described in subclause (A)(I), or
(c)that are substituted shares held by the private foundation; (actions exonérées)
exempt shares percentageof a private foundation at any time, in respect of a class of shares of the capital stock of a corporation, is the total of all amounts, each of which is the percentage of the issued and outstanding shares of that class that are exempt shares held by the private foundation at that time; (pourcentage d’actions exonérées)
grantee organizationincludes a person, club, society, association or organization or prescribed entity, but does not include a qualified donee; (organisation donataire)
ineligible individual, at any time, means an individual who has been
(a)convicted of a relevant criminal offence unless it is a conviction for which
(i)a pardon has been granted and the pardon has not been revoked or ceased to have effect, or
(ii)a record suspension has been ordered under theCriminal Records Actand the record suspension has not been revoked or ceased to have effect,
(b)convicted of a relevant offence in the five-year period preceding that time,
(c)a director, trustee, officer or like official of a registered charity or a registered Canadian amateur athletic association during a period in which the charity or association engaged in conduct that can reasonably be considered to have constituted a serious breach of the requirements for registration under this Act and for which the registration of the charity or association was revoked in the five-year period preceding that time,
(d)an individual who controlled or managed, directly or indirectly, in any manner whatever, a registered charity or a registered Canadian amateur athletic association during a period in which the charity or association engaged in conduct that can reasonably be considered to have constituted a serious breach of the requirements for registration under this Act and for which its registration was revoked in the five-year period preceding that time,
(e)a promoter in respect of a tax shelter that involved a registered charity or a registered Canadian amateur athletic association, the registration of which was revoked in the five-year period preceding that time for reasons that included or were related to participation in the tax shelter,
(f)a listed terrorist entity, or a member of a listed terrorist entity,
(g)a director, trustee, officer or like official of a listed terrorist entity during a period in which that entity supported or engaged in terrorist activities, including a period prior to the date on which the entity became a listed terrorist entity, or
(h)an individual who controlled or managed, directly or indirectly, in any manner whatever, a listed terrorist entity during a period in which that entity supported or engaged in terrorist activities, including a period prior to the date on which the entity became a listed terrorist entity; (particulier non admissable)
listed terrorist entity, at any time, means a person, partnership, group, fund, unincorporated association or organization that is at that time alisted entity, as defined in subsection 83.01(1) of theCriminal Code; (entité terroriste inscrite)
material transactionof a private foundation, in respect of a class of shares of the capital stock of a corporation, means a transaction or a series of transactions or events in shares of the class, in respect of which the total fair market value of the shares of the class that are acquired or disposed of by the private foundation or any relevant person in respect of the private foundation as part of the transaction or series (determined at the time of the transaction, or at the end of the series, as the case may be) exceeds the lesser of
(a)$100,000, and
(b)0.5% of the total fair market value of all of the issued and outstanding shares of the class; (opération importante)
non-qualified investmentof a private foundation means
(a)a debt (other than a pledge or undertaking to make a gift) owing to the foundation by
(i)a person (other than an excluded corporation)
(A)who is a member, shareholder, trustee, settlor, officer, official or director of the foundation,
(B)who has, or is a member of a group of persons who do not deal with each other at arm’s length who have, contributed more than 50% of the capital of the foundation, or
(C)who does not deal at arm’s length with any person described in clause (A) or (B), or
(ii)a corporation (other than an excluded corporation) controlled by the foundation, by any person or group of persons referred to in subparagraph (i), by the foundation and any other private foundation with which it does not deal at arm’s length or by any combination thereof,
(b)a share of a class of the capital stock of a corporation (other than an excluded corporation) referred to in paragraph (a) held by the foundation (other than a share listed on a designated stock exchange or a share that would be a qualifying share within the meaning assigned by subsection 192(6) if that subsection were read without reference to the expression “issued after May 22, 1985 and before 1987”), and
(c)a right held by the foundation to acquire a share referred to in paragraph (b),
and, for the purpose of this definition, anexcluded corporationis
(d)a limited-dividend housing company to which paragraph 149(1)(n) applies,
(e)a corporation all of the property of which is used by a registered charity in its administration or in carrying on its charitable activities, or
(f)a corporation all of the issued shares of which are held by the foundation; (placement non admissible)
original corporate holdings percentageof a private foundation, in respect of a class of shares of the capital stock of a corporation, means the total corporate holdings percentage of the private foundation, in respect of that class, held on March 18, 2007; (pourcentage de participation initiale)
political activity[Repealed, 2018, c. 27, s. 17]
private foundationmeans a charitable foundation that is not a public foundation; (fondation privée)
promoterhas the meaning assigned by section 237.1; (promoteur)
public foundation, at a particular time, means a charitable foundation
(a)more than 50% of the directors, trustees, officers or like officials of which deal at arm’s length with each other and with
(i)each of the other directors, trustees, officers and like officials of the foundation,
(ii)each person described by subparagraph (b)(i) or (ii), and
(iii)each member of a group of persons (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)) who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described by subparagraph (b)(i), and
(b)that is not, at the particular time, and would not at the particular time be, if the foundation were a corporation, controlled directly or indirectly in any manner whatever
(i)by a person (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)),
(A)who immediately after the particular time, has contributed to the foundation amounts that are, in total, greater than 50% of the capital of the foundation immediately after the particular time, and
(B)who immediately after the person’s last contribution at or before the particular time, had contributed to the foundation amounts that were, in total, greater than 50% of the capital of the foundation immediately after the making of that last contribution, or
(ii)by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph (i); (fondation publique)
qualified donee, at any time, means a person that is
(a)registered by the Minister and that is
(i)a housing corporation resident in Canada and exempt from tax under this Part because of paragraph 149(1)(i) that has applied for registration,
(ii)a municipality in Canada,
(iii)a municipal or public body performing a function of government in Canada that has applied for registration,
(iv)a university outside Canada, the student body of which ordinarily includes students from Canada, that has applied for registration, or
(v)a foreign charity that has applied to the Minister for registration under subsection (26),
(b)a registered charity,
(b.1)a registered journalism organization,
(c)a registered Canadian amateur athletic association, or
(d)Her Majesty in right of Canada or a province, the United Nations or an agency of the United Nations; (donataire reconnu)
qualifying disbursementmeans a disbursement by a charity, by way of a gift or by otherwise making resources available,
(a)subject to subsection (6.001), to a qualified donee, or
(b)to a grantee organization, if
(i)the disbursement is in furtherance of a charitable purpose (determined without reference to the definitioncharitable purposesin this subsection) of the charity,
(ii)the charity ensures that the disbursement is exclusively applied to charitable activities in furtherance of a charitable purpose of the charity, and
(iii)the charity maintains documentation sufficient to demonstrate
(A)the purpose for which the disbursement is made, and
(B)that the disbursement is exclusively applied by the grantee organization to charitable activities in furtherance of a charitable purpose of the charity; (versement admissible)
qualifying journalism organizationmeans a corporation or trust that meets the following conditions:
(a)it is a qualified Canadian journalism organization,
(b)it is constituted and operated for purposes exclusively related to journalism,
(c)any business activities it carries on are related to its purposes,
(d)it has trustees or a board of directors, each of whom deals at arm’s length with each other,
(e)it is not controlled, directly or indirectly in any manner whatever, by a person or by a group of persons that do not deal with each other at arm’s length,
(f)it may not, in a taxation year, receive gifts from any one source that represent more than 20% of its total revenues (including donations) for the taxation year, other than a gift
(i)made by way of bequest,
(ii)made within 12 months after the time the organization is first registered, or
(iii)approved, on a case-by-case basis, by the Minister,
(g)no part of its income is payable to, or otherwise available for the personal benefit of, any proprietor, member, shareholder, director, trustee, settlor or like individual, and
(h)it is primarily engaged in the production of original news content; (organisation journalistique admissible)
related business, in relation to a charity or Canadian amateur athletic association, includes a business that is unrelated to the purposes of the charity or association if substantially all persons employed by the charity or association in the carrying on of that business are not remunerated for that employment; (activité commerciale complémentaire)
relevant criminal offencemeans a criminal offence under the laws of Canada, and an offence that would be a criminal offence if it were committed in Canada, that
(a)relates to financial dishonesty, including tax evasion, theft and fraud, or
(b)in respect of a charity or Canadian amateur athletic association, is relevant to the operation of the charity or association; (infraction criminelle pertinente)
relevant offencemeans an offence, other than a relevant criminal offence, under the laws of Canada or a province, and an offence that would be such an offence if it took place in Canada, that
(a)relates to financial dishonesty, including an offence under charitable fundraising legislation, consumer protection legislation and securities legislation, or
(b)in respect of a charity or Canadian amateur athletic association, is relevant to the operation of the charity or association; (infraction pertinente)
relevant personin respect of a private foundation means a person who, at any time in respect of which the expression is relevant, deals not at arm’s length with the private foundation (determined as if subsection 251(2) were applied as if the private foundation were a corporation), but does not include
(a)a person who at that time is considered to deal not at arm’s length with the private foundation solely because of a right referred to in paragraph 251(5)(b), or
(b)an individual
(i)who at that time has attained the age of 18 years and lives separate and apart from any other individual (referred to in this definition as a “controlling individual”) who would, if the private foundation were a corporation, control, or be a member of a related group that controls, the private foundation, and
(ii)in respect of whom the Minister is satisfied, upon review of an application by the private foundation, that the individual would, if subsection 251(1) were read without reference to its paragraphs (a) and (b), at that time, deal at arm’s length with all controlling individuals; (personne intéressée)
specified gift[Repealed, 2010, c. 25, s. 37]
substituted sharesheld by a private foundation means shares acquired by the private foundation, in exchange for exempt shares held by the private foundation, in the course of a transaction to which section 51, subsection 85.1(1) or section 86 or 87 applies; (actions de remplacement)
taxation yearmeans, in the case of a registered charity or registered Canadian amateur athletic association, a fiscal period; (année d’imposition)
total corporate holdings percentageof a private foundation, in respect of a class of shares of the capital stock of a corporation, at any particular time means the percentage of the issued and outstanding shares of that class that are held at that time by the private foundation, or by a relevant person in respect of the private foundation who holds a material interest in respect of that class; (pourcentage de participation totale)
Marginal note:Deeming rule —Safe Streets and Communities Act
(1.01)In this section, a reference to a record suspension is deemed also to be a reference to a pardon that is granted or issued under theCriminal Records Act.
Marginal note:Deeming rule — listed terrorist entity
(1.02)If, but for this subsection, a person, partnership, group, fund, unincorporated association or organization becomes a listed terrorist entity at a particular time and ceases to be a listed terrorist entity at a later time further to an application made under subsection 83.05(2) of theCriminal Codeor as a result of paragraph 83.05(6)(d) of that Act, then the entity is deemed not to have become a listed terrorist entity and to not have been a listed terrorist entity throughout that period.
Marginal note:Exclusions
(1.1)For the purposes of paragraphs (2)(b), (3)(b) and (4)(b) and subsection (21), the following shall be deemed to be neither an amount expended in a taxation year on charitable activities nor a gift made to a qualified donee:
(a)a designated gift;
(b)[Repealed, 2018, c. 27, s. 17]
(c)a transfer that has, because of paragraph (c) of the description of B in subsection 188(1.1), paragraph 189(6.2)(b) or subsection 189(6.3), reduced the amount of a liability under Part V; and
(d)expenditures on administration and management of the charity.
Marginal note:Authority of Minister
(1.2)For the purposes of the determination of B in the definitiondisbursement quotain subsection 149.1(1), the Minister may
(a)authorize a change in the number of periods chosen by a registered charity in determining the prescribed amount; and
(b)accept any method for the determination of the fair market value of property or a portion thereof that may be required in determining the prescribed amount.
Marginal note:Revocation of registration of charitable organization
(2)The Minister may, in the manner described in section 168, revoke the registration of a charitable organization for any reason described in subsection 168(1) or where the organization
(a)carries on a business that is not a related business of that charity;
(b)fails to expend in any taxation year, on charitable activities carried on by it and by way of gifts made by it that are qualifying disbursements, amounts the total of which is at least equal to the organization’s disbursement quota for that year; or
(c)makes a disbursement, other than
(i)a disbursement made in the course of charitable activities carried on by it, or
(ii)a qualifying disbursement.
Marginal note:Revocation of registration of public foundation
(3)The Minister may, in the manner described in section 168, revoke the registration of a public foundation for any reason described in subsection 168(1) or where the foundation
(a)carries on a business that is not a related business of that charity;
(b)fails to expend in any taxation year, on charitable activities carried on by it and by way of gifts made by it that are qualifying disbursements, amounts the total of which is at least equal to the foundation’s disbursement quota for that year;
(b.1)makes a disbursement, other than
(i)a disbursement made in the course of charitable activities carried on by it, or
(ii)a qualifying disbursement;
(c)since June 1, 1950, acquired control of any corporation;
(d)since June 1, 1950, incurred debts, other than debts for current operating expenses, debts incurred in connection with the purchase and sale of investments and debts incurred in the course of administering charitable activities; or
(e)at any time within the 24 month period preceding the day on which notice is given to the foundation by the Minister pursuant to subsection 168(1) and at a time when the foundation was a private foundation, took any action or failed to expend amounts such that the Minister was entitled, pursuant to subsection 149.1(4), to revoke its registration as a private foundation.
Marginal note:Revocation of registration of private foundation
(4)The Minister may, in the manner described in section 168, revoke the registration of a private foundation for any reason described in subsection 168(1) or where the foundation
(a)carries on any business;
(b)fails to expend in any taxation year, on charitable activities carried on by it and by way of gifts made by it that are qualifying disbursements, amounts the total of which is at least equal to the foundation’s disbursement quota for that year;
(b.1)makes a disbursement, other than
(i)a disbursement made in the course of charitable activities carried on by it, or
(ii)a qualifying disbursement;
(c)has, in respect of a class of shares of the capital stock of a corporation, a divestment obligation percentage at the end of any taxation year;
(d)since June 1, 1950, incurred debts, other than debts for current operating expenses, debts incurred in connection with the purchase and sale of investments and debts incurred in the course of administering charitable activities.
Marginal note:Revocation of registration of registered charity
(4.1)The Minister may, in the manner described in section 168, revoke the registration
(a)of a registered charity, if it 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;
(b)of a registered charity, if it may reasonably be considered that a purpose of entering into a transaction (including the acceptance of a gift) with another registered charity to which paragraph (a) applies was to assist the other registered charity in avoiding or unduly delaying the expenditure of amounts on charitable activities;
(c)of 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 obtaining or maintaining its registration;
(d)of a registered charity, if it 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 that are qualifying disbursements to qualified donees or grantee organizations, with which it deals at arm’s length;
(e)of a registered charity, if an ineligible individual is a director, trustee, officer or like official of the charity, or controls or manages the charity, directly or indirectly, in any manner whatever; and
(f)of a registered charity, if it accepts a gift from a foreign state, as defined in section 2 of theState Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.
Marginal note:Revocation of registration of Canadian amateur athletic association
(4.2)The Minister may, in the manner described in section 168, revoke the registration of a registered Canadian amateur athletic association
(a)for any reason described in subsection 168(1);
(b)if the association carries on a business that is not a related business of that association;
(c)if an ineligible individual is a director, trustee, officer or like official of the association, or controls or manages the association, directly or indirectly, in any manner whatever; or
(d)if the association accepts a gift from a foreign state, as defined in section 2 of theState Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.
Marginal note:Revocation of a qualified donee
(4.3)The Minister may, in the manner described in section 168, revoke the registration of a qualified donee referred to in paragraph (a) or (b.1) of the definitionqualified doneein subsection (1) for any reason described in subsection 168(1).
Marginal note:Reduction
(5)The Minister may, on application made to the Minister in prescribed form by a registered charity, specify an amount in respect of the charity for a taxation year and the registered charity’s disbursement quota shall be deemed to be reduced by that amount.
Marginal note:Devotion of resources — charitable activity
(6)A charitable organization shall be considered to be devoting its resources to charitable activities carried on by it to the extent that it uses those resources in carrying on a related business.
Marginal note:Qualifying disbursement limit — charitable organizations
(6.001)In any taxation year, disbursements of income of a charitable organization by way of gifts to a qualified donee (other than disbursements of income to a registered charity that the Minister has designated in writing as a charity associated with the charitable organization) in excess of 50% of the charitable organization’s income for that year are not qualifying disbursements.
Marginal note:Devoting resources to purpose and function
(6.01)A Canadian amateur athletic association is considered to devote its resources to its exclusive purpose and exclusive function to the extent that it carries on
(a)a related business; or
(b)activities involving the participation of professional athletes, if those activities are ancillary and incidental to its exclusive purpose and exclusive function.
Marginal note:Charitable purposes
(6.1)For the purposes of the definitioncharitable foundationin subsection (1), a corporation or trust that devotes any part of its resources to the direct or indirect support of, or opposition to, any political party or candidate for public office shall not be considered to be constituted and operated exclusively for charitable purposes.
Marginal note:Charitable purposes
(6.2)For the purposes of the definitioncharitable organizationin subsection (1), an organization that devotes any part of its resources to the direct or indirect support of, or opposition to, any political party or candidate for public office shall not be considered to be constituted and operated exclusively for charitable purposes.
Marginal note:Activities of Canadian amateur athletic associations
(6.201)For the purposes of the definitionCanadian amateur athletic associationin subsection (1), an association that devotes any part of its resources to the direct or indirect support of, or opposition to, any political party or candidate for public office shall not be considered to devote that part of its resources to its exclusive purpose and exclusive function.
Marginal note:Marriage for civil purposes
(6.21)For greater certainty, subject to subsections (6.1) and (6.2), a registered charity with stated purposes that include the advancement of religion shall not have its registration revoked or be subject to any other penalty under Part V solely because it or any of its members, officials, supporters or adherents exercises, in relation to marriage between persons of the same sex, the freedom of conscience and religion guaranteed under theCanadian Charter of Rights and Freedoms.
Marginal note:Designation as public foundation, etc.
(6.3)The Minister may, by notice sent by registered mail to a registered charity, on the Minister’s own initiative or on application made to the Minister in prescribed form, designate the charity to be a charitable organization, private foundation or public foundation and the charity shall be deemed to be registered as a charitable organization, private foundation or public foundation, as the case may be, for taxation years commencing after the day of mailing of the notice unless and until it is otherwise designated under this subsection or its registration is revoked under subsection 149.1(2), 149.1(3), 149.1(4), 149.1(4.1) or 168(2).
Marginal note:National arts service organizations
(6.4)Where an organization that
(a)has, on written application to the Minister of Communications describing all of its objects and activities, been designated by that Minister on approval of those objects and activities to be a national arts service organization,
(b)has, as its exclusive purpose and its exclusive function, the promotion of arts in Canada on a nation-wide basis,
(c)is resident in Canada and was formed or created in Canada, and
(d)complies with prescribed conditions
applies in prescribed form to the Minister of National Revenue for registration, that Minister may register the organization for the purposes of this Act and, where the organization so applies or is so registered, this section, paragraph 38(a.1), sections 110.1, 118.1, 168, 172, 180 and 230, subsection 241(3.2) and Part V apply, with such modifications as the circumstances require, to the organization as if it were an applicant for registration as a charitable organization or as if it were a registered charity that is designated as a charitable organization, as the case may be.
Marginal note:Revocation of designation
(6.5)The Minister of Communications may, at any time, revoke the designation of an organization made for the purpose of subsection 149.1(6.4) where
(a)an incorrect statement was made in the furnishing of information for the purpose of obtaining the designation, or
(b)the organization has amended its objects after its last designation was made,
and, where the designation is so revoked, the organization shall be deemed for the purpose of section 168 to have ceased to comply with the requirements of this Act for its registration under this Act.
Marginal note:Designation of associated charities
(7)On application made to the Minister in prescribed form, the Minister may, in writing, designate a registered charity as a charity associated with one or more specified registered charities where the Minister is satisfied that the charitable aim or activity of each of the registered charities is substantially the same, and on and after a date specified in such a designation, the charities to which it relates shall, until such time, if any, as the Minister revokes the designation, be deemed to be associated.
(8)[Repealed, 2022, c. 19, s. 34]
(9)[Repealed, 2010, c. 25, s. 37]
(10)[Repealed, 2022, c. 10, s. 16]
Marginal note:Public policy activities
(10.1)Subject to subsections (6.1) and (6.2), public policy dialogue and development activities carried on by an organization, corporation or trust in support of its stated purposes shall be considered to be carried on in furtherance of those purposes and not for any other purpose.
Marginal note:Partnership look-through rule
(11)For the purposes of this section and sections 149.2 and 188.1, each member of a partnership at any time is deemed at that time to own the portion of each property of the partnership equal to the proportion that the fair market value of the member’s interest in the partnership at that time is of the fair market value of all interests in the partnership at that time.
Marginal note:Rules
(12)For the purposes of this section,
(a)a corporation is controlled by a charitable foundation if more than 50% of the corporation’s issued share capital, having full voting rights under all circumstances, belongs to
(i)the foundation, or
(ii)the foundation and persons with whom the foundation does not deal at arm’s length,
but, for the purpose of paragraph (3)(c), a charitable foundation is deemed not to have acquired control of a corporation if it has not purchased or otherwise acquired for consideration more than 5% of the issued shares of any class of the capital stock of that corporation;
(b)there shall be included in computing the income of a charity for a taxation year all gifts received by it in the year including gifts from any other charity but not including
(i)a designated gift,
(ii)any gift or portion of a gift in respect of which it is established that the donor is not a charity and
(A)has not been allowed a deduction under paragraph 110.1(1)(a) in computing the donor’s taxable income or under subsection 118.1(3) in computing the donor’s tax payable under this Part, or
(B)was not taxable under section 2 for the taxation year in which the gift was made, or
(iii)any gift or portion of a gift in respect of which it is established that the donor is a charity and that the gift was not made out of the income of the donor; and
(c)subsections 104(6) and 104(12) are not applicable in computing the income of a charitable foundation that is a trust.
Marginal note:Designation of private foundation as public
(13)On application made to the Minister by a private foundation, the Minister may, on such terms and conditions as the Minister considers appropriate, designate the foundation to be a public foundation, and on and after the date specified in such a designation, the foundation to which it relates shall, until such time, if any, as the Minister revokes the designation, be deemed to be a public foundation.
Marginal note:Information returns
(14)Every registered charity and registered Canadian amateur athletic association shall, within six months from the end of each taxation year of the charity or association and without notice or demand, file with the Minister both an information return and a public information return for the year in prescribed form and containing prescribed information.
Marginal note:Information returns
(14.1)Every registered journalism organization shall, within six months from the end of each taxation year of the organization without notice or demand, file with the Minister both an information return and a public information return for the year in prescribed form and containing prescribed information including, for the public information return, for each donor whose total gifts to the organization in the year exceed $5,000, the name of the donor and the total amount donated.
Marginal note:Information may be communicated
(15)Notwithstanding section 241,
(a)the information contained in a public information return referred to in subsection 149.1(14) or (14.1) shall be communicated or otherwise made available to the public by the Minister in such manner as the Minister deems appropriate;
(b)the Minister may make available to the public in any manner that the Minister considers appropriate, in respect of each registered, or previously registered, charity, Canadian amateur athletic association, journalism organization and qualified donee referred to in paragraph (a) of the definitionqualified doneein subsection (1),
(i)its name, address and date of registration,
(ii)in the case of a registered, or previously registered, charity, Canadian amateur athletic association or journalism organization, its registration number, and
(iii)the effective date of any revocation, annulment or termination of registration; and
(c)if, at any time during a taxation year of a private foundation that is a registered charity, the private foundation holds more than an insignificant interest in respect of a class of shares of the capital stock of a corporation, the Minister shall make available to the public in such manner as the Minister deems appropriate,
(i)the name of the corporation, and
(ii)in respect of each class of shares of the corporation, that portion of the total corporate holdings percentage of the private foundation in respect of the class that is attributable to
(A)holdings of shares of that class by the private foundation, and
(B)the total of all holdings of shares of that class by relevant persons in respect of the private foundation.
(d)[Repealed, 2017, c. 20, s. 25]
Marginal note:Rule regarding disbursement excess
(20)Where a registered charity has expended a disbursement excess for a taxation year, the charity may, for the purpose of determining whether it complies with the requirements of paragraph (2)(b), (3)(b) or (4)(b), as the case may be, for the immediately preceding taxation year of the charity and five or less of its immediately subsequent taxation years, include in the computation of the amounts expended on charitable activities carried on by it and by way of gifts made by it that are qualifying disbursements, such portion of that disbursement excess as was not so included under this subsection for any preceding taxation year.
Marginal note:Definition ofdisbursement excess
(21)For the purpose of subsection (20),disbursement excess, for a taxation year of a charity, means the amount, if any, by which the total of amounts expended in the year by the charity on charitable activities carried on by it and by way of gifts made by it that are qualifying disbursements exceeds its disbursement quota for the year.
Marginal note:Refusal to register
(22)The Minister may, by registered mail, give notice to a person that the application of the person for registration as a registered charity, registered Canadian amateur athletic association, registered journalism organization or qualified donee referred to in subparagraph (a)(i) or (iii) of the definitionqualified doneein subsection (1) is refused.
Marginal note:Annulment of registration
(23)The Minister may, by registered mail, give notice to a person that the registration of the person as a registered charity is annulled and deemed not to have been so registered, if the person was so registered by the Minister in error or the person has, solely as a result of a change in law, ceased to be a charity.
Marginal note:Receipts issued before annulment
(24)An official receipt referred to in Part XXXV of theIncome Tax Regulationsissued, by a person whose registration has been annulled under subsection (23), before that annulment is, if the receipt would have been valid were the person a registered charity at the time the receipt was issued, deemed to be a valid receipt under that Part.
Marginal note:Refusal to register
(25)The Minister may refuse to register a charity or Canadian amateur athletic association that has applied for registration as a registered charity or registered Canadian amateur athletic association if
(a)the application for registration is made on its behalf by an ineligible individual;
(b)an ineligible individual is a director, trustee, officer or like official of the charity or association, or controls or manages the charity or association, directly or indirectly, in any manner whatever; or
(c)the charity or association has accepted a gift from a foreign state, as defined in section 2 of theState Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.
Marginal note:Foreign charities
(26)For the purposes of subparagraph (a)(v) of the definitionqualified doneein subsection (1), the Minister may register, in consultation with the Minister of Finance, a foreign charity for a 24-month period that includes the time at which Her Majesty in right of Canada has made a gift to the foreign charity, if
(a)the foreign charity is not resident in Canada; and
(b)the Minister is satisfied that the foreign charity is
(i)carrying on relief activities in response to a disaster,
(ii)providing urgent humanitarian aid, or
(iii)carrying on activities in the national interest of Canada.
Marginal note:Material and insignificant interests
149.2(1)In this section and section 149.1,
(a)a person has, at any time, a material interest in respect of a class of shares of the capital stock of a corporation if, at that time,
(i)the percentage of the shares of that class held by the person exceeds 0.5% of all the issued and outstanding shares of that class, or
(ii)the fair market value of the shares so held exceeds $100,000; and
(b)a private foundation has, at any time, an insignificant interest in respect of a class of shares of the capital stock of a corporation if, at that time, the percentage of shares of that class held by the private foundation does not exceed 2% of all the issued and outstanding shares of that class.
Marginal note:Material transaction — anti-avoidance
(2)If a private foundation or a relevant person in respect of the private foundation has engaged in one or more transactions or series of transactions or events, a purpose of which may reasonably be considered to be to avoid the application of the definitionmaterial transaction, each of those transactions or series of transactions or events is deemed to be a material transaction.
Marginal note:Ownership
(2.1)For the purposes of the definitionequity percentage, and subparagraph (b)(iii) of the definitionexempt shares, in subsection 149.1(1), a person who, if paragraph 251(5)(b) applied would be deemed by that paragraph to have the same position in relation to the control of a corporation as if the person owned a share, is deemed to own the share.
Marginal note:Net increase in excess corporate holdings percentage
(3)The net increase in the excess corporate holdings percentage of a private foundation for a taxation year, in respect of a class of shares of the capital stock of a corporation, is the number of percentage points, if any, determined by the formula
A - B
where
(a)0%, if
(i)at the beginning of the taxation year the private foundation was not both a private foundation and a registered charity, or
(ii)the private foundation was both a registered charity and a private foundation on March 18, 2007 and the taxation year is the first taxation year of the private foundation that begins after that date; and
(b)in any other case, the excess corporate holdings percentage of the private foundation in respect of the class at the end of its preceding taxation year.
Marginal note:Net decrease in excess corporate holdings percentage
(4)The net decrease in the excess corporate holdings percentage of a private foundation for a taxation year, in respect of a class of shares of the capital stock of a corporation, is the number of percentage points, if any, by which the percentage determined for B in the formula in subsection (3) for the taxation year exceeds the percentage determined for A in that formula for the taxation year.
Marginal note:Allocation of net increase in excess corporate holdings percentage
(5)For the purpose of the description of B in the definitiondivestment obligation percent-agein subsection 149.1(1), the net increase in the excess corporate holdings percentage of a private foundation in respect of a class of shares of the capital stock of a corporation, for a taxation year (in this subsection referred to as the “current year”) is to be allocated in the following order:
(a)first to the divestment obligation percent-age of the private foundation in respect of that class for the current year, to the extent that the private foundation has in the current year acquired for consideration shares of that class;
(b)then to the divestment obligation percent-age of the private foundation in respect of that class for its fifth subsequent taxation year, to the extent of the lesser of
(i)that portion of the net increase in the excess corporate holdings percentage of the private foundation in respect of that class for the current year that is not allocated under paragraph (a), and
(ii)the percentage of the issued and outstanding shares of that class that were acquired by the private foundation in the current year by way of bequest;
(c)then to the divestment obligation percent-age of the private foundation in respect of that class for its second subsequent taxation year, to the extent of the lesser of
(i)that portion of the net increase in the excess corporate holdings percentage of the private foundation in respect of that class for the current year that is not allocated under paragraph (a) or (b), and
(ii)the total of
(A)the percentage of the issued and outstanding shares of that class that were acquired by the private foundation in the current year by way of gift, other than from a relevant person or by way of bequest, and
(B)the portion of the net increase in the excess corporate holdings percentage of the private foundation that is attributable to the redemption, acquisition or cancellation of any of the issued and outstanding shares of that class in the current year by the corporation; and
(d)then to the divestment obligation percent-age of the private foundation in respect of that class for its subsequent taxation year, to the extent of that portion of the net increase in the excess corporate holdings percentage of the private foundation in respect of that class for the current year that is not allocated under paragraph (a), (b) or (c).
Marginal note:Minister’s discretion
(6)Notwithstanding subsection (5), on application by a private foundation, the Minister may, if the Minister believes it would be just and equitable to do so, reallocate any portion of the net increase in the excess corporate holdings percentage of the private foundation in respect of a class of shares of the capital stock of a corporation for a taxation year, that would otherwise be allocated under subsection (5) to the private foundation’s divestment obligation percentage in respect of that class for a particular taxation year, to the private foundation’s divestment obligation percentage in respect of that class for any of the ten taxation years subsequent to the particular taxation year.
Marginal note:Allocation of net decrease in excess corporate holdings percentage
(7)For the purpose of the description of C in the definitiondivestment obligation percent-agein subsection 149.1(1), the net decrease in the excess corporate holdings percentage of a private foundation in respect of a class of shares of the capital stock of a corporation for a taxation year (in this subsection referred to as the “current year”) is to be allocated in the following order:
(a)first, to the divestment obligation percentage of the private foundation in respect of that class for the current year, to the extent of that divestment obligation percentage; and
(b)then to the divestment obligation percent-age of the private foundation in respect of that class for a subsequent taxation year of the private foundation (referred to in this paragraph as the “subject year”), to the extent of the lesser of
(i)that portion of the net decrease in the excess corporate holdings percentage of the private foundation in respect of that class for the current year that is not allocated under paragraph (a), or under this paragraph, to the divestment obligation percentage of the private foundation in respect of that class for a taxation year of the private foundation that precedes the subject year, and
(ii)the amount of the divestment obligation percentage of the private foundation in respect of that class for the subject year, calculated as at the end of the current year and without reference to this subsection.
Marginal note:Transitional rule
(8)If the original corporate holdings percent-age of a private foundation in respect of a class of shares of the capital stock of a corporation exceeds 20%, for the purpose of applying the definition “excess corporate holdings percent-age” in subsection 149.1(1) to
(a)the first taxation year of the private foundation that begins after March 18, 2007, the reference to 20% in that definition in respect of that class is to be read as the original corporate holdings percentage of the private foundation in respect of that class;
(b)taxation years of the private foundation that are after the taxation year referred to in paragraph (a) and that begin before March 19, 2012, the reference to 20% in that definition in respect of that class is to be read as the greater of
(i)20%, and
(ii)the lesser of
(A)the total corporate holdings percent-age of the private foundation in respect of the class at the end of the immediately preceding taxation year, and
(B)the original corporate holdings percentage in respect of that class;
(c)taxation years of the private foundation that begin after March 18, 2012 and before March 19, 2017, the reference to 20% in that definition in respect of that class is to be read as the greater of
(i)20%, and
(ii)the lesser of
(A)the total corporate holdings percentage of the private foundation in respect of the class at the end of the preceding taxation year, and
(B)the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 20%;
(d)taxation years of the private foundation that begin after March 18, 2017 and before March 19, 2022, the reference to 20% in that definition in respect of that class is to be read as the greater of
(i)20%, and
(ii)the lesser of
(A)the total corporate holdings percent-age of the private foundation in respect of the class at the end of the preceding taxation year, and
(B)the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 40%; and
(e)taxation years of the private foundation that begin after March 18, 2022 and before March 19, 2027, the reference to 20% in that definition in respect of that class is to be read as the greater of
(i)20%, and
(ii)the lesser of
(A)the total corporate holdings percentage of the private foundation in respect of the class at the end of the preceding taxation year, and
(B)the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 60%.
Marginal note:Where subsection (10) applies
(9)Subsection (10) applies for the purposes of applying section 149.1 and subsections (8) and 188.1(3.1) to a private foundation at a particular time if, both on March 18, 2007 and at the particular time,
(a)the private foundation was the sole trustee of a trust, or was a majority interest beneficiary (within the meaning assigned by section 251.1) of a trust more than 50% of the trustees of which were the private foundation and one or more relevant persons in respect of the private foundation; and
(b)the trust held one or more shares of a class of the capital stock of a corporation.
Marginal note:Shares held through a trust on March 18, 2007
(10)If this subsection applies at a particular time to a private foundation in respect of shares of a class of the capital stock of a corporation held by a trust, the private foundation is deemed to hold at the particular time that number of those shares as is determined by the formula
A × B/C
where
Marginal note:Discretionary trusts
(11)For the purpose of subsection (10), if the amount of income or capital of a 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:Filing returns of income — general rule
150(1)Subject to subsection (1.1), a return of income that is in prescribed form and that contains prescribed information shall be filed with the Minister, without notice or demand for the return, for each taxation year of a taxpayer,
Marginal note:Corporations
(a)in the case of a corporation, by or on behalf of the corporation within six months after the end of the year if
(i)at any time in the year the corporation
(A)is resident in Canada,
(B)carries on business in Canada, unless the corporation’s only revenue from carrying on business in Canada in the year consists of amounts in respect of which tax was payable by the corporation under subsection 212(5.1),
(C)has a taxable capital gain (otherwise than from an excluded disposition), or
(D)disposes of a taxable Canadian property (otherwise than in an excluded disposition), or
(ii)tax under this Part
(A)is payable by the corporation for the year, or
(B)would be, but for a tax treaty, payable by the corporation for the year (otherwise than in respect of a disposition of taxable Canadian property that is treaty-protected property of the corporation);
Marginal note:Deceased individuals
(b)in the case of an individual who dies after October of the year and on or before the day that would be the individual’s filing due date for the year if the individual had not died, by the individual’s legal representatives on or before the day that is the later of the day on or before which the return would otherwise be required to be filed and the day that is 6 months after the day of death;
Marginal note:Trusts or estates
(c)in the case of an estate or trust, within 90 days from the end of the year;
Marginal note:Individuals
(d)in the case of any other person, on or before
(i)the following April 30 by that person or, if the person is unable for any reason to file the return, by the person’s guardian, committee or other legal representative (in this paragraph referred to as the person’s “guardian”),
(ii)the following June 15 by that person or, if the person is unable for any reason to file the return, by the person’s guardian where the person is
(A)an individual who carried on a business in the year, unless the expenditures made in the course of carrying on the business were primarily the cost or capital cost of tax shelter investments (as defined in subsection 143.2(1)), or
(B)at any time in the year a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) of an individual to whom clause 150(1)(d)(ii)(A) applies, or
(iii)where at any time in the year the person is a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) of an individual to whom paragraph 150(1)(b) applies for the year, on or before the day that is the later of the day on or before which the person’s return would otherwise be required to be filed and the day that is 6 months after the day of the individual’s death; or
Marginal note:Designated persons
(e)in a case where no person described by paragraph 150(1)(a), 150(1)(b) or 150(1)(d) has filed the return, by such person as is required by notice in writing from the Minister to file the return, within such reasonable time as the notice specifies.
Marginal note:Exception
(1.1)Subsection (1) does not apply to a taxation year of a taxpayer if
(a)the taxpayer is a corporation that was a registered charity throughout the year; or
(b)the taxpayer is an individual unless
(i)tax is payable under this Part by the individual for the year,
(ii)where the individual is resident in Canada at any time in the year, the individual has a taxable capital gain or disposes of capital property in the year,
(iii)where the individual is non-resident throughout the year, the individual has a taxable capital gain (otherwise than from an excluded disposition) or disposes of a taxable Canadian property (otherwise than in an excluded disposition) in the year, or
(iv)at the end of the year the individual’s HBP balance or LLP balance (as defined in subsection 146.01(1) or 146.02(1)) is a positive amount.
Marginal note:Demands for returns
(2)Every person, whether or not the person is liable to pay tax under this Part for a taxation year and whether or not a return has been filed under subsection (1) or (3), shall, on demand sent by the Minister, file, within such reasonable time stipulated in the demand, with the Minister in prescribed form and containing prescribed information a return of the income for the taxation year designated in the demand.
Marginal note:Trustees, etc.
(3)Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding up, controlling or otherwise dealing with the property, business, estate or income of a person who has not filed a return for a taxation year as required by this section shall file a return in prescribed form of that person’s income for that year.
Marginal note:Death of partner or proprietor
(4)Where
(a)subsection 34.1(9) or 34.2(8) applies in computing an individual’s income for a taxation year from a business, or
(b)an individual who carries on a business in a taxation year dies in the year and after the end of a fiscal period of the business that ends in the year, another fiscal period of the business (in this subsection referred to as the “short period”) ends in the year because of the individual’s death, and the individual’s legal representative elects that this subsection apply,
the individual’s income from businesses for short periods, if any, shall not be included in computing the individual’s income for the year and the individual’s legal representative shall file an additional return of income for the year in respect of the individual as if the return were filed in respect of another person and shall pay the tax payable under this Part by that other person for the year computed as if
(c)the other person’s only income for the year were the amount determined by the formula
A + B - C
where
(d)subject to sections 114.2 and 118.93, that other person were entitled to the deductions to which the individual is entitled under sections 110, 118 to 118.7 and 118.9 for the year in computing the individual’s taxable income or tax payable under this Part, as the case may be, for the year.
Marginal note:Excluded disposition
(5)For the purposes of this section, a disposition of a property by a taxpayer at any time in a taxation year is an excluded disposition if
(a)the taxpayer is non-resident at that time;
(b)no tax is payable under this Part by the taxpayer for the taxation year;
(c)the taxpayer is, at that time, not liable to pay any amount under this Act in respect of any previous taxation year (other than an amount for which the Minister has accepted, and holds, adequate security under section 116 or 220); and
(d)each taxable Canadian property disposed of by the taxpayer in the taxation year is
(i)excluded property within the meaning assigned by subsection 116(6), or
(ii)a property in respect of the disposition of which the Minister has issued to the taxpayer a certificate under subsection 116(2), (4) or (5.2).
Definition ofelectronic filing
150.1(1)For the purposes of this section,electronic filingmeans using electronic media in a manner specified in writing by the Minister.
Marginal note:Filing of return by electronic transmission
(2)A person who meets the criteria specified in writing by the Minister may file a return of income for a taxation year by way of electronic filing.
Marginal note:Mandatory filing of return by electronic transmission
(2.1)If a corporation is, in respect of a taxation year, a prescribed corporation, the corporation shall file its return of income for the taxation year by way of electronic filing.
Definition oftax preparer
(2.2)In this section and subsection 162(7.3),tax preparer, for a calendar year, means a person or partnership who, in the year, accepts consideration to prepare more than 10 returns of income of corporations or more than 10 returns of income of individuals (other than trusts), but does not include an employee who prepares returns of income in the course of performing their duties of employment.
Marginal note:Electronic filing — tax preparer
(2.3)A tax preparer shall file any return of income prepared by the tax preparer for consideration by way of electronic filing, except that 10 of the returns of corporations and 10 of the returns of individuals may be filed other than by way of electronic filing.
Marginal note:Exceptions
(2.4)Subsection (2.3) does not apply to a tax preparer for a calendar year in respect of a return of income
(a)of a type for which the tax preparer has applied to the Minister for authority to file by way of electronic filing for the year and for which that authority has not been granted because the tax preparer does not meet the criteria referred to in subsection (2);
(b)of a corporation described in any of paragraphs 205.1(2)(a) to (c) of theIncome Tax Regulations; or
(c)of a type that the Minister does not accept by way of electronic filing.
Marginal note:Deemed date of filing
(3)For the purposes of section 150, where a return of income of a taxpayer for a taxation year is filed by way of electronic filing, it shall be deemed to be a return of income filed with the Minister in prescribed form on the day the Minister acknowledges acceptance of it.
Marginal note:Declaration
(4)Where a return of income of a taxpayer for a taxation year is filed by way of electronic filing by a particular person (in this subsection referred to as the “filer”) other than the person who is required to file the return, the person who is required to file the return shall make an information return in prescribed form containing prescribed information, sign it, retain a copy of it and provide the filer with the information return, and that return and the copy shall be deemed to be a record referred to in section 230 in respect of the filer and the other person.
Marginal note:Application to other Parts
(5)This section also applies to Parts I.2 to XIII, with such modifications as the circumstances require.
Marginal note:Estimate of tax
151Every person required by section 150 to file a return of income shall in the return estimate the amount of tax payable.
Marginal note:Assessment
152(1)The Minister shall, with all due dispatch, examine a taxpayer’s return of income for a taxation year, assess the tax for the year, the interest and penalties, if any, payable and determine
(a)the amount of refund, if any, to which the taxpayer may be entitled by virtue of section 129, 131, 132 or 133 for the year; or
(b)the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3), (3.001) or (3.002), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
Marginal note:Determination of disability tax credit eligibility
(1.01)The Minister shall, if an individual requests by prescribed form, determine with all due dispatch whether an amount is deductible, or would if this Act were read without reference to paragraph 118.3(1)(c) be deductible, under section 118.3 in computing the individual’s tax payable under this Part for a taxation year and send a notice of the determination to the individual.
Marginal note:Determination of losses
(1.1)Where the Minister ascertains the amount of a taxpayer’s non-capital loss, net capital loss, restricted farm loss, farm loss or limited partnership loss for a taxation year and the taxpayer has not reported that amount as such a loss in the taxpayer’s return of income for that year, the Minister shall, at the request of the taxpayer, determine, with all due dispatch, the amount of the loss and shall send a notice of determination to the person by whom the return was filed.
Marginal note:Determination under subsection 245(2)
(1.11)If at any time the Minister ascertains the tax consequences to a taxpayer because of subsection 245(2) with respect to a transaction, the Minister
(a)shall, in the case of a determination under subsection 245(8), determine any amount that is, or could at a subsequent time be, relevant for the purposes of computing the income, taxable income or taxable income earned in Canada of, tax or other amount payable by, or amount refundable to, the taxpayer under this Act;
(b)may, in any case not described in paragraph (a), determine any amount referred to in paragraph (a); and
(c)shall, if a determination is made under this subsection, send to the taxpayer, with all due dispatch, a notice of determination stating the amount so determined.
Marginal note:Application of s. 245(1)
(1.111)The definitions in subsection 245(1) apply to subsection 152(1.11).
Marginal note:When determination not to be made
(1.12)A determination of an amount shall not be made with respect to a taxpayer under subsection 152(1.11) at a time where that amount is relevant only for the purposes of computing the income, taxable income or taxable income earned in Canada of, tax or other amount payable by, or amount refundable to, the taxpayer under this Act for a taxation year ending before that time.
Marginal note:Provisions applicable
(1.2)Paragraphs 56(1)(l) and 60(o), this Division and Division J, as they relate to an assessment or a reassessment and to assessing or reassessing tax, apply, with any modifications that the circumstances require, to a determination or redetermination under subsection (1.01) and to a determination or redetermination of an amount under this Division or an amount deemed under section 122.61 to be an overpayment on account of a taxpayer’s liability under this Part, except that
(a)subsections (1) and (2) do not apply to determinations made under subsections (1.01), (1.1) and (1.11);
(b)an original determination of a taxpayer’s non-capital loss, net capital loss, restricted farm loss, farm loss or limited partnership loss for a taxation year may be made by the Minister only at the request of the taxpayer;
(c)subsection 164(4.1) does not apply to a determination made under subsection 152(1.4); and
(d)the Minister determines the amount deemed by subsection 122.5(3), (3.001) or (3.002) or 122.8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.
Marginal note:Determination binding
(1.3)For greater certainty, where the Minister makes a determination of the amount of a taxpayer’s non-capital loss, net capital loss, restricted farm loss, farm loss or limited partnership loss for a taxation year or makes a determination under subsection 152(1.11) with respect to a taxpayer, the determination is (subject to the taxpayer’s rights of objection and appeal in respect of the determination and to any redetermination by the Minister) binding on both the Minister and the taxpayer for the purpose of calculating the income, taxable income or taxable income earned in Canada of, tax or other amount payable by, or amount refundable to, the taxpayer, as the case may be, for any taxation year.
Marginal note:Determination in respect of a partnership
(1.4)The Minister may, within 3 years after the day that is the later of
(a)the day on or before which a member of a partnership is, or but for subsection 220(2.1) would be, required under section 229 of theIncome Tax Regulationsto make an information return for a fiscal period of the partnership, and
(b)the day the return is filed,
determine any income or loss of the partnership for the fiscal period and any deduction or other amount, or any other matter, in respect of the partnership for the fiscal period that is relevant in determining the income, taxable income or taxable income earned in Canada of, tax or other amount payable by, or any amount refundable to or deemed to have been paid or to have been an overpayment by, any member of the partnership for any taxation year under this Part.
Marginal note:Notice of determination
(1.5)Where a determination is made under subsection 152(1.4) in respect of a partnership for a fiscal period, the Minister shall send a notice of the determination to the partnership and to each person who was a member of the partnership during the fiscal period.
Marginal note:Absence of notification
(1.6)No determination made under subsection 152(1.4) in respect of a partnership for a fiscal period is invalid solely because one or more persons who were members of the partnership during the period did not receive a notice of the determination.
Marginal note:Binding effect of determination
(1.7)Where the Minister makes a determination under subsection 152(1.4) or a redetermination in respect of a partnership,
(a)subject to the rights of objection and appeal of the member of the partnership referred to in subsection 165(1.15) in respect of the determination or redetermination, the determination or redetermination is binding on the Minister and each member of the partnership for the purposes of calculating the income, taxable income or taxable income earned in Canada of, tax or other amount payable by, or any amount refundable to or deemed to have been paid or to have been an overpayment by, the members for any taxation year under this Part; and
(b)notwithstanding subsections 152(4), 152(4.01), 152(4.1) and 152(5), the Minister may, before the end of the day that is one year after the day on which all rights of objection and appeal expire or are determined in respect of the determination or redetermination, assess the tax, interest, penalties or other amounts payable and determine an amount deemed to have been paid or to have been an overpayment under this Part in respect of any member of the partnership and any other taxpayer for any taxation year as may be necessary to give effect to the determination or redetermination or a decision of the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada.
Marginal note:Time to assess
(1.8)Where, as a result of representations made to the Minister that a person was a member of a partnership in respect of a fiscal period, a determination is made under subsection 152(1.4) for the period and the Minister, the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada concludes at a subsequent time that the partnership did not exist for the period or that, throughout the period, the person was not a member of the partnership, the Minister may, notwithstanding subsections 152(4), 152(4.1) and 152(5), within one year after that subsequent time, assess the tax, interest, penalties or other amounts payable, or determine an amount deemed to have been paid or to have been an overpayment under this Part, by any taxpayer for any taxation year, but only to the extent that the assessment or determination can reasonably be regarded
(a)as relating to any matter that was relevant in the making of the determination made under subsection 152(1.4);
(b)as resulting from the conclusion that the partnership did not exist for the period; or
(c)as resulting from the conclusion that the person was, throughout the period, not a member of the partnership.
Marginal note:Waiver of determination limitation period
(1.9)A waiver in respect of the period during which the Minister may make a determination under subsection (1.4) in respect of a partnership for a fiscal period may be made by one member of the partnership if that member is
(a)designated for that purpose in the information return made under section 229 of theIncome Tax Regulationsfor the fiscal period; or
(b)otherwise expressly authorized by the partnership to so act.
Marginal note:Notice of assessment
(2)After examination of a return, the Minister shall send a notice of assessment to the person by whom the return was filed.
Marginal note:Liability not dependent on assessment
(3)Liability for the tax under this Part is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.
Definition ofnormal reassessment period
(3.1)For the purposes of subsections (4), (4.01), (4.2), (4.3), (5) and (9), the normal reassessment period for a taxpayer in respect of a taxation year is
(a)if at the end of the year the taxpayer is a mutual fund trust or a corporation other than a Canadian-controlled private corporation, the period that ends four years after the earlier of the day of sending of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of sending of an original notification that no tax is payable by the taxpayer for the year; and
(b)in any other case, the period that ends three years after the earlier of the day of sending of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of sending of an original notification that no tax is payable by the taxpayer for the year.
Marginal note:Determination of deemed overpayment
(3.2)A taxpayer may, during any month, request in writing that the Minister determine the amount deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for a taxation year that arose during the month or any of the 11 preceding months.
Marginal note:Notice of determination
(3.3)On receipt of the request referred to in subsection 152(3.2), the Minister shall, with all due dispatch, determine the amounts deemed by subsection 122.61(1) to be overpayments on account of the taxpayer’s liability under this Part that arose during the months in respect of which the request was made or determine that there is no such amount, and shall send a notice of the determination to the taxpayer.
Marginal note:COVID-19 — notice of determination
(3.4)The Minister may at any time determine the amount deemed by any of subsections 125.7(2) to (2.2) to be an overpayment on account of a taxpayer’s liability under this Part that arose during aqualifying period(as defined in subsection 125.7(1)), or determine that there is no such amount, and send a notice of the determination to the taxpayer.
(3.5)[Repealed, 2013, c. 34, s. 309]
Marginal note:Assessment and reassessment
(4)The Minister may at any time make an assessment, reassessment or additional assessment of tax for a taxation year, interest or penalties, if any, payable under this Part by a taxpayer or notify in writing any person by whom a return of income for a taxation year has been filed that no tax is payable for the year, except that an assessment, reassessment or additional assessment may be made after the taxpayer’s normal reassessment period in respect of the year only if
(a)the taxpayer or person filing the return
(i)has made any misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in filing the return or in supplying any information under this Act, or
(ii)has filed with the Minister a waiver in prescribed form within the normal reassessment period for the taxpayer in respect of the year;
(b)the assessment, reassessment or additional assessment is made before the day that is 3 years after the end of the normal reassessment period for the taxpayer in respect of the year and
(i)is required under subsection (6) or (6.1), or would be so required if the taxpayer had claimed an amount by filing the prescribed form referred to in the subsection on or before the day referred to in the subsection,
(ii)is made as a consequence of the assessment or reassessment pursuant to this paragraph or subsection 152(6) of tax payable by another taxpayer,
(iii)is made
(A)as a consequence of atransaction(as defined in subsection 247(1)) involving the taxpayer and a non-resident person with whom the taxpayer was not dealing at arm’s length, or
(B)in respect of any income, loss or other amount in relation to a foreign affiliate of the taxpayer,
(iii.1)is made, if the taxpayer is non-resident and carries on a business in Canada, as a consequence of
(A)an allocation by the taxpayer of revenues or expenses as amounts in respect of the Canadian business (other than revenues and expenses that relate solely to the Canadian business, that are recorded in the books of account of the Canadian business, and the documentation in support of which is kept in Canada), or
(B)a notional transaction between the taxpayer and its Canadian business, where the transaction is recognized for the purposes of the computation of an amount under this Act or an applicable tax treaty.
(iv)is made as a consequence of a payment or reimbursement of any income or profits tax to or by the government of a country other than Canada or a government of a state, province or other political subdivision of any such country,
(v)is made as a consequence of a reduction under subsection 66(12.73) of an amount purported to be renounced under section 66,
(v.1)is made in respect of an amount deducted under subsection 127(5) in respect of aflow-through critical mineral mining expenditureas defined in subsection 127(9),
(vi)is made in order to give effect to the application of subsection 118.1(15) or 118.1(16), or
(vii)is made to give effect to the application of any of sections 94, 94.1 and 94.2;
(b.1)an information return described in subsection 237.1(7) or 237.3(2) that is required to be filed in respect of a deduction or claim made by the taxpayer in relation to a tax shelter, or in respect of a tax benefit (as defined in subsection 245(1)) to the taxpayer from an avoidance transaction (as defined in subsection 245(3)), is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is three years after the day on which the information return is filed;
(b.2)the assessment, reassessment or additional assessment is made before the day that is three years after the end of the normal reassessment period for the taxpayer in respect of the year and if
(i)the taxpayer, or a partnership of which the taxpayer is a member, has failed to file for the year a prescribed form as and when required under subsection 233.3(3) or to report on the prescribed form the information required in respect of a specified foreign property (as defined in subsection 233.3(1)) held by the taxpayer at any time during the year, and
(ii)the taxpayer has failed to report, in the return of income for the year, an amount in respect of a specified foreign property that is required to be included in computing the taxpayer’s income for the year;
(b.3)the following conditions apply:
(i)the taxpayer, or a partnership of which the taxpayer is a member (directly or indirectly through one or more partnerships), disposes in the year of real or immovable property,
(ii)the taxpayer is not areal estate investment trust(as defined in subsection 122.1(1)) for the year,
(iii)if the disposition is by a corporation or partnership, the property is capital property of the corporation or partnership, as the case may be,
(iv)the disposition is not reported in
(A)if the disposition is by the taxpayer, the return of income of the taxpayer under this Part for the year, or
(B)if the disposition is by a partnership, the partnership’s return required to be filed for the year under section 229 of theIncome Tax Regulations, and
(v)in the case that the disposition is not reported in the return described in clause (iv)(A) or (B) and the taxpayer subsequently reports the disposition by filing a prescribed form amending the taxpayer’s return of income under this Part for the year, the assessment, reassessment or additional assessment is made before the day that is three years after the day on which the prescribed form amending the return is filed;
(b.4)the assessment, reassessment or additional assessment is made before the day that is six years after the end of the normal reassessment period for the taxpayer in respect of the year if
(i)a reassessment of tax for the year was required under subsection (6), or would have been so required if the taxpayer had claimed an amount by filing the prescribed form referred to in that subsection on or before the day referred to in that subsection, in order to take into account a deduction claimed under section 111 in respect of a loss for a subsequent taxation year,
(ii)an assessment, reassessment, additional assessment of tax or notification that no tax is payable for the subsequent taxation year referred to in subparagraph (i) was made or issued after the normal reassessment period in respect of the subsequent taxation year as a consequence of a transaction involving the taxpayer and a non-resident person with whom the taxpayer was not dealing at arm’s length, and
(iii)the assessment, reassessment, additional assessment or notification that no tax is payable referred to in subparagraph (ii) reduced the amount of the loss for the subsequent taxation year;
(c)the taxpayer or person filing the return of income has filed with the Minister a waiver in prescribed form within the additional three-year period referred to in paragraph (b) or (b.1);
(c.1)the taxpayer or person filing the return of income has filed with the Minister a waiver in prescribed form within the additional three-year period referred to in paragraph (b.2); or
(d)as a consequence of a change in the allocation of the taxpayer’s taxable income earned in a province as determined under the law of a province that provides rules similar to those prescribed for the purposes of section 124, an assessment, reassessment or additional assessment of tax for a taxation year payable by a corporation under a law of a province that imposes on the corporation a tax similar to the tax imposed under this Part (in this paragraph referred to as a “provincial reassessment”) is made, and as a consequence of the provincial reassessment, an assessment, reassessment or additional assessment is made on or before the day that is one year after the later of
(i)the day on which the Minister is advised of the provincial reassessment, and
(ii)the day that is 90 days after the day of sending of a notice of the provincial reassessment.
Marginal note:Extended period of assessment
(4.01)Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a), (b), (b.1), (b.3), (b.4) or (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,
(a)where paragraph 152(4)(a) applies to the assessment, reassessment or additional assessment,
(i)any misrepresentation made by the taxpayer or a person who filed the taxpayer’s return of income for the year that is attributable to neglect, carelessness or wilful default or any fraud committed by the taxpayer or that person in filing the return or supplying any information under this Act, or
(ii)a matter specified in a waiver filed with the Minister in respect of the year;
(b)if paragraph (4)(b), (b.1) or (c) applies to the assessment, reassessment or additional assessment,
(i)the assessment, reassessment or additional assessment to which subparagraph 152(4)(b)(i) applies,
(ii)the assessment or reassessment referred to in subparagraph 152(4)(b)(ii),
(iii)the transaction, income, loss or other amount referred to in subparagraph (4)(b)(iii),
(iv)the payment or reimbursement referred to in subparagraph 152(4)(b)(iv),
(v)the reduction referred to in subparagraph 152(4)(b)(v),
(vi)the application referred to in subparagraph 152(4)(b)(vi), or
(vii)the deduction, claim or tax benefit referred to in paragraph (4)(b.1);
(c)if paragraph (4)(b.3) applies to the assessment, reassessment or additional assessment, the disposition referred to in that paragraph; and
(d)if paragraph (4)(b.4) applies to the assessment, reassessment or additional assessment, the reduction under subparagraph (4)(b.4)(iii).
Marginal note:If waiver revoked
(4.1)If the Minister would, but for this subsection, be entitled to reassess, make an additional assessment or assess tax, interest or penalties by virtue only of the filing of a waiver under subparagraph (4)(a)(ii) or paragraph (4)(c) or (c.1), the Minister may not make such a reassessment, additional assessment or assessment after the day that is six months after the date on which a notice of revocation of the waiver in prescribed form is filed.
Marginal note:Reassessment with taxpayer’s consent
(4.2)Notwithstanding subsections (4), (4.1) and (5), for the purpose of determining — at any time after the end of the normal reassessment period, of a taxpayer who is an individual (other than a trust) or a graduated rate estate, in respect of a taxation year — the amount of any refund to which the taxpayer is entitled at that time for the year, or a reduction of an amount payable under this Part by the taxpayer for the year, the Minister may, if the taxpayer makes an application for that determination on or before the day that is 10 calendar years after the end of that taxation year,
(a)reassess tax, interest or penalties payable under this Part by the taxpayer in respect of that year; and
(b)redetermine the amount, if any, deemed by subsection 120(2) or (2.2), 122.5(3), (3.001) or (3.002), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.
Marginal note:Consequential assessment
(4.3)Notwithstanding subsections (4), (4.1) and (5), if the result of an assessment or a decision on an appeal is to change a particular balance of a taxpayer for a particular taxation year, the Minister may, or if the taxpayer so requests in writing, shall, before the later of the expiration of the normal reassessment period in respect of a subsequent taxation year and the end of the day that is one year after the day on which all rights of objection and appeal expire or are determined in respect of the particular year, reassess the tax, interest or penalties payable by the taxpayer, redetermine an amount deemed to have been paid or to have been an overpayment by the taxpayer or modify the amount of a refund or other amount payable to the taxpayer, under this Part in respect of the subsequent taxation year, but only to the extent that the reassessment, redetermination or modification can reasonably be considered to relate to the change in the particular balance of the taxpayer for the particular year.
Definition ofbalance
(4.4)For the purpose of subsection 152(4.3), abalanceof a taxpayer for a taxation year is the income, taxable income, taxable income earned in Canada or any loss of the taxpayer for the year, or the tax or other amount payable by, any amount refundable to, or any amount deemed to have been paid or to have been an overpayment by, the taxpayer for the year.
Marginal note:Limitation on assessments
(5)There shall not be included in computing the income of a taxpayer for a taxation year, for the purpose of an assessment, reassessment or additional assessment made under this Part after the taxpayer’s normal reassessment period in respect of the year, any amount that was not included in computing the taxpayer’s income for the purpose of an assessment, reassessment or additional assessment made under this Part before the end of the period.
Marginal note:Reassessment where certain deductions claimed
(6)Where a taxpayer has filed for a particular taxation year the return of income required by section 150 and an amount is subsequently claimed by the taxpayer or on the taxpayer’s behalf for the year as
(a)a deduction under paragraph 3(e) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, by virtue of the taxpayer’s death in a subsequent taxation year and the consequent application of section 71 of that Act in respect of an allowable capital loss for the year,
(b)a deduction under section 41 in respect of the taxpayer’s listed-personal-property loss for a subsequent taxation year,
(b.1)a deduction under paragraph 60(i) in respect of a premium (within the meaning assigned by subsection 146(1)) paid in a subsequent taxation year under a registered retirement savings plan where the premium is deductible by reason of subsection 146(6.1),
(c)a deduction under section 118.1 in respect of a gift made in a subsequent taxation year or under section 111 in respect of a loss for a subsequent taxation year,
(c.1)[Repealed, 2013, c. 34, s. 309]
(d)a deduction under subsection 127(5) in respect of property acquired or an expenditure made in a subsequent taxation year,
(e)[Repealed, 2013, c. 34, s. 309]
(f)a deduction under section 125.3 in respect of an unused Part I.3 tax credit (within the meaning assigned by subsection 125.3(3)) for a subsequent taxation year,
(f.1)a deduction under subsection 126(2) in respect of an unused foreign tax credit (within the meaning assigned by subsection 126(7)), or under subsection 126(2.21) or (2.22) in respect of foreign taxes paid, for a subsequent taxation year,
(f.2)a deduction under subsection 128.1(8) as a result of a disposition in a subsequent taxation year,
(f.3)a deduction (including for the purposes of this subsection a reduction of an amount otherwise required to be included in computing a taxpayer’s income) under subsection 146(8.9) or (8.92), 146.3(6.2) or (6.3) or 147.5(14) or (19),
(g)a deduction under subsection 147.2(4) because of the application of subsection 147.2(6) as a result of the taxpayer’s death in the subsequent taxation year, or
(h)a deduction by virtue of an election for a subsequent taxation year under paragraph 164(6)(c) or 164(6)(d) by the taxpayer’s legal representative,
by filing with the Minister, on or before the day on or before which the taxpayer is, or would be if a tax under this Part were payable by the taxpayer for that subsequent taxation year, required by section 150 to file a return of income for that subsequent taxation year, a prescribed form amending the return, the Minister shall reassess the taxpayer’s tax for any relevant taxation year (other than a taxation year preceding the particular taxation year) in order to take into account the deduction claimed.
Marginal note:Reassessment if amount under subsection 91(1) is reduced
(6.1)If
(a)a taxpayer has filed for a particular taxation year the return of income required by section 150,
(b)the amount included in computing the taxpayer’s income for the particular year under subsection 91(1) is subsequently reduced because of a reduction in the foreign accrual property income of a foreign affiliate of the taxpayer for a taxation year (referred to in this paragraph as the “claim year”) of the affiliate that ends in the particular year, if
(i)the reduction is
(A)attributable to a foreign accrual property loss (within the meaning assigned by subsection 5903(3) of theIncome Tax Regulations) of the affiliate for a taxation year of the affiliate that ends in a subsequent taxation year of the taxpayer, and
(B)included in the description of F in the definitionforeign accrual property incomein subsection 95(1) in respect of the affiliate for the claim year, or
(ii)the reduction is
(A)attributable to a foreign accrual capital loss (within the meaning assigned by subsection 5903.1(3) of theIncome Tax Regulations) of the affiliate for a taxation year of the affiliate that ends in a subsequent taxation year of the taxpayer, and
(B)included in the description of F.1 in the definitionforeign accrual property incomein subsection 95(1) in respect of the affiliate for the claim year, and
(c)the taxpayer has filed with the Minister, on or before the filing-due date for that subsequent taxation year, a prescribed form amending the return,
the Minister shall reassess the taxpayer’s tax for any relevant taxation year (other than a taxation year preceding the particular year) in order to take into account the reduction in the amount included under subsection 91(1) in computing the income of the taxpayer for the particular year.
Marginal note:Extended reassessment period
(6.2)The Minister shall reassess a taxpayer’s tax for a particular taxation year, in order to take into account the application of paragraph (d) of the definitionexcluded propertyin subsection 142.2(1), or the application of subsection 142.6(1.6), in respect of property held by the taxpayer, if
(a)the taxpayer has filed for the particular taxation year the return of income required by section 150; and
(b)the taxpayer files with the Minister a prescribed form amending the return, on or before the filing-due date for the taxpayer’s taxation year that
(i)if the filing is in respect of paragraph (d) of that definitionexcluded property, includes the acquisition of control time referred to in that paragraph, and
(ii)if the filing is in respect of subsection 142.6(1.6), immediately follows the particular taxation year.
Marginal note:Reassessment for section 119 credit
(6.3)If a taxpayer has filed for a particular taxation year the return of income required by section 150 and an amount is subsequently claimed by the taxpayer, or on the taxpayer’s behalf, for the particular year as a deduction under section 119 in respect of a disposition in a subsequent taxation year, and the taxpayer files with the Minister a prescribed form amending the return on or before the filing-due date of the taxpayer for the subsequent taxation year, the Minister shall reassess the taxpayer’s tax for any relevant taxation year (other than a taxation year preceding the particular taxation year) in order to take into account the deduction claimed.
Marginal note:Assessment not dependent on return or information
(7)The Minister is not bound by a return or information supplied by or on behalf of a taxpayer and, in making an assessment, may, notwithstanding a return or information so supplied or if no return has been filed, assess the tax payable under this Part.
Marginal note:Assessment deemed valid and binding
(8)An assessment shall, subject to being varied or vacated on an objection or appeal under this Part and subject to a reassessment, be deemed to be valid and binding notwithstanding any error, defect or omission in the assessment or in any proceeding under this Act relating thereto.
Marginal note:Alternative basis for assessment
(9)At any time after the normal reassessment period, the Minister may advance an alternative basis or argument — including that all or any portion of the income to which an amount relates was from a different source — in support of all or any portion of the total amount determined on assessment to be payable or remittable by a taxpayer under this Act unless, on an appeal under this Act
(a)there is relevant evidence that the taxpayer is no longer able to adduce without the leave of the court; and
(b)it is not appropriate in the circumstances for the court to order that the evidence be adduced.
Marginal note:Tax deemed not assessed
(10)Notwithstanding any other provision of this section, an amount of tax is deemed, for the purpose of any agreement entered into by or on behalf of the Government of Canada under section 7 of theFederal-Provincial Fiscal Arrangements Act, not to have been assessed under this Act until
(a)the end of the period during which the security is accepted by the Minister, if adequate security for the tax is accepted by the Minister under subsection 220(4.5) or (4.6); or
(b)the amount is collected by the Minister, if information relevant to the assessment of the amount was provided to the Canada Revenue Agency under a contract entered into by a person under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance.
Marginal note:Withholding
153(1)Every person paying at any time in a taxation year
(a)salary, wages or other remuneration, other than
(i)amounts described in subsection 212(5.1), and
(ii)amounts paid at any time by an employer to an employee if, at that time, the employer is a qualifying non-resident employer and the employee is a qualifying non-resident employee,
(b)a superannuation or pension benefit,
(c)a retiring allowance,
(d)a death benefit,
(d.1)an amount described in subparagraph 56(1)(a)(iv) or (vii),
(d.2)an amount described in paragraph 56(1)(a.3),
(e)an amount as a benefit under a supplementary unemployment benefit plan,
(f)an annuity payment or a payment in full or partial commutation of an annuity,
(g)fees, commissions or other amounts for services, other than amounts described in subsection 115(2.3) or 212(5.1),
(h)a payment under a deferred profit sharing plan or a plan referred to in section 147 as a revoked plan,
(i)a payment from a registered disability savings plan,
(j)a payment out of or under a registered retirement savings plan or a plan referred to in subsection 146(12) as an “amended plan”,
(k)an amount as, on account or in lieu of payment of, or in satisfaction of, proceeds of the surrender, cancellation or redemption of an income-averaging annuity contract,
(l)a payment out of or under a registered retirement income fund or a fund referred to in subsection 146.3(11) as an “amended fund”,
(m)a prescribed benefit under a government assistance program,
(m.1)[Repealed, 1994, c. 21, s. 77(1)]
(n)one or more amounts to an individual who has elected for the year in prescribed form in respect of all such amounts,
(o)an amount described in paragraph 115(2)(c.1),
(p)a contribution under a retirement compensation arrangement,
(q)an amount as a distribution to one or more persons out of or under a retirement compensation arrangement,
(r)an amount on account of the purchase price of an interest in a retirement compensation arrangement,
(s)an amount described in paragraph 56(1)(r), (z.2) or (z.4),
(t)a payment made under a plan that was a registered education savings plan,
(u)a payment out of or under an advanced life deferred annuity, or
(v)a payment out of or under
(i)a FHSA, if the amount is required by section 146.6 to be included in computing a taxpayer’s income, or
(ii)an arrangement that ceased to be a FHSA by application of subsection 146.6(16)
shall deduct or withhold from the payment the amount determined in accordance with prescribed rules and shall, at the prescribed time, remit that amount to the Receiver General on account of the payee’s tax for the year under this Part or Part XI.3, as the case may be, and, where at that prescribed time the person is a prescribed person, the remittance shall be made to the account of the Receiver General at a designated financial institution.
Marginal note:Withholding — stock option benefits
(1.01)An amount that is deemed to have been received by a taxpayer as a benefit under or because of any of paragraphs 7(1)(a) to (d.1) is remuneration paid as a bonus for the purposes of paragraph (1)(a), except the portion, if any, of the amount that is
(a)deductible by the taxpayer under paragraph 110(1)(d) in computing the taxpayer’s taxable income for a taxation year;
(b)deemed to have been received in a taxation year as a benefit because of a disposition of securities to which subsection 7(1.1) applies; or
(c)determined under paragraph 110(2.1)(b) to be deductible by the taxpayer under paragraph 110(1)(d.01) in computing the taxpayer’s taxable income for a taxation year.
Marginal note:COVID-19 — deemed remittance
(1.02)For the purposes of this Act, if an eligible employer pays, at a particular time that is within the eligible period, eligible remuneration in respect of which a particular amount is required to be deducted or withheld under subsection (1), then the eligible employer is deemed to have remitted to the Receiver General at the particular time in respect of the particular amount, an amount equal to the least of
(a)the amount determined by the formula
A − B
where
(b)the amount determined by the formula
C × D
where
(c)the amount determined by the formula
E × F
where
Marginal note:Definitions — subsection (1.02)
(1.03)The following definitions apply for the purposes of this subsection and subsection (1.02).
eligible employeemeans an individual who is employed in Canada. (employé admissible)
eligible employermeans a person or partnership that
(a)employs one or more eligible employees;
(b)has, on March 18, 2020, a business number in respect of which the person or partnership is registered with the Minister to make remittances required under this section; and
(c)is any of
(i)a Canadian-controlled private corporation for the purposes of section 125 that
(A)would have a business limit for its last taxation year that ended before the start of the eligible period greater than nil, if the amount determined for paragraph 125(5.1)(b) were deemed to be nil, or
(B)if the corporation does not have a taxation year that ended before the start of the eligible period, would meet the condition in clause (A) if its taxation year ended immediately before the start of the eligible period,
(ii)an individual (other than a trust),
(iii)a partnership, all of the members of which are described in subparagraphs (i) to (iii) or (v),
(iv)a person exempt from tax under Part I because of paragraph 149(1)(l), and
(v)a registered charity. (employeur admissible)
eligible periodmeans the period beginning on March 18, 2020 and that ends on June 19, 2020. (période d’admissibilité)
eligible remunerationmeans salary, wages or other remuneration paid to an eligible employee during the eligible period. (rémunération admissible)
Marginal note:Deemed remittances under subsection (1.02)
(1.04)For greater certainty, amounts deemed under subsection (1.02) to have been remitted to the Receiver General are deemed to not be held in trust under subsections 227(4) and (4.1).
Marginal note:Undue hardship
(1.1)Where the Minister is satisfied that the deducting or withholding of the amount otherwise required to be deducted or withheld under subsection 153(1) from a payment would cause undue hardship, the Minister may determine a lesser amount and that amount shall be deemed to be the amount determined under that subsection as the amount to be deducted or withheld from that payment.
Marginal note:Election to increase withholding
(1.2)Where a taxpayer so elects in prescribed manner and prescribed form, the amount required to be deducted or withheld under subsection 153(1) from any payment to the taxpayer shall be deemed to be the total of
(a)the amount, if any, otherwise required to be deducted or withheld under that subsection from that payment, and
(b)the amount specified by the taxpayer in that election with respect to that payment or with respect to a class of payments that includes that payment.
Marginal note:Reduction not permitted
(1.3)A joint election made or expected to be made under section 60.03 is not to be considered a basis on which the Minister may determine a lesser amount under subsection (1.1).
Marginal note:Non-cash stock option benefit
(1.31)An amount deemed to have been received as a benefit under or because of any of paragraphs 7(1)(a) to (d.1) shall not be considered a basis on which the Minister may determine a lesser amount under subsection (1.1) solely because it is received as a non-cash benefit.
Marginal note:Exception — remittance to designated financial institution
(1.4)For the purpose of subsection (1), a prescribed person referred to in that subsection is deemed to have remitted an amount to the account of the Receiver General at a designated financial institution if the prescribed person has remitted the amount to the Receiver General at least one day before the day upon which the amount is due.
Marginal note:Deemed withholding
(2)If a pensioner and a pension transferee (as those terms are defined in section 60.03) make a joint election under section 60.03 in respect of a split-pension amount (as defined in that section) for a taxation year, the portion of the amount deducted or withheld under subsection (1) that may be reasonably considered to be in respect of the split-pension amount is deemed to have been deducted or withheld on account of the pension transferee’s tax for the taxation year under this Part and not on account of the pensioner’s tax for the taxation year under this Part.
Marginal note:Deemed effect of deduction
(3)When an amount has been deducted or withheld under subsection 153(1), it shall, for all the purposes of this Act, be deemed to have been received at that time by the person to whom the remuneration, benefit, payment, fees, commissions or other amounts were paid.
Marginal note:Amounts paid in error
(3.1)For the purposes of this Act, an amount (referred to in this subsection as the “excess amount”) is deemed to not have been deducted or withheld under subsection (1) by a person if
(a)the excess amount was, absent the application of this subsection, deducted or withheld by the person under subsection (1);
(b)the excess amount is in respect of an excess payment (referred to in this subsection as the “total excess payment”) of an individual’s salary, wages or other remuneration by the person to the individual in a particular year, that was paid as a result of a clerical, administrative or system error;
(c)before the end of the third year after the calendar year in which the excess amount is deducted or withheld,
(i)the person elects in prescribed manner to have this subsection apply in respect of the excess amount, and
(ii)the individual has repaid, or made an arrangement to repay, the total excess payment less the excess amount;
(d)an information return correcting for the total excess payment has not been issued by the person to the individual prior to the making of the election in subparagraph (c)(i); and
(e)any additional criteria specified by the Minister have been met.
Marginal note:Unclaimed dividends, interest and proceeds
(4)Where at the end of a taxpayer’s taxation year the person beneficially entitled to an amount received by the taxpayer after 1984 and before the year as or in respect of dividends, interest or proceeds of disposition of property is unknown to the taxpayer, the taxpayer shall remit to the Receiver General on or before the day that is 60 days after the end of the year on account of the tax payable under this Act by that person an amount equal to
(a)in the case of dividends, 33 1/3% of the total amount of the dividends,
(b)in the case of interest, 50% of the total amount of the interest, and
(c)in the case of proceeds of disposition of property, 50% of the total of all amounts each of which is the amount, if any, by which the proceeds of disposition of a property exceed the total of any outlays and expenses made or incurred by the taxpayer for the purpose of disposing of the property (to the extent that those outlays and expenses were not deducted in computing the taxpayer’s income for any taxation year or attributable to any other property),
except that no remittance under this subsection shall be required in respect of an amount that was included in computing the taxpayer’s income for the year or a preceding taxation year or in respect of an amount on which the tax under this subsection was previously remitted.
Marginal note:Deemed effect of remittance
(5)An amount remitted by a taxpayer under subsection 153(4) in respect of dividends, interest or proceeds of disposition of property shall be deemed
(a)to have been received by the person beneficially entitled thereto; and
(b)to have been deducted or withheld from the amount otherwise payable by the taxpayer to the person beneficially entitled thereto.
Marginal note:Definitions
(6)The following definitions apply in this section.
designated financial institutionmeans a corporation that
(a)is a bank, other than an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of theBank Act;
(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; or
(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. (institution financière désignée)
qualifying non-resident employee, at any time in respect of a payment referred to in paragraph (1)(a), means an employee who
(a)is, at that time, resident in a country with which Canada has a tax treaty;
(b)is not liable to tax under this Part in respect of the payment because of that treaty; and
(c)works in Canada for less than 45 days in the calendar year that includes that time or is present in Canada for less than 90 days in any 12-month period that includes that time. (employé non-résident admissible)
qualifying non-resident employer, at any time, means an employer
(a)that at that time
(i)in the case of an employer that is not a partnership,
(A)is a resident of a country with which Canada has a tax treaty, or
(B)is a corporation that does not satisfy the condition in clause (A), but would be a resident of a country with which Canada has a tax treaty if the corporation were treated, for the purpose of income taxation in that country, as a body corporate, and
(ii)in the case of an employer that is a partnership, is a partnership in respect of which the total of all amounts, each of which is a share of the partnership’s income or loss for the fiscal period that includes that time of a member that, at that time, is a resident of a country with which Canada has a tax treaty (or is a corporation that satisfies the condition in clause (i)(B)), is not less than 90% of the income or loss of the partnership for the period (for the purposes of this subparagraph, where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000); and
(b)that is at that time certified by the Minister under subsection (7). (employeur non-résident admissible)
Marginal note:Certification by Minister
(7)The Minister may
(a)certify an employer for a specified period of time if the employer has applied in prescribed form containing prescribed information and the Minister is satisfied that the employer
(i)meets the conditions in paragraph (a) of the definitionqualifying non-resident employerin subsection (6), and
(ii)meets the conditions established by the Minister; and
(b)revoke an employer’s certification if the Minister is no longer satisfied that the employer meets the conditions referred to in subparagraph (a)(i) or (ii).
Marginal note:Agreements providing for tax transfer payments
154(1)The Minister may, with the approval of the Governor in Council, enter into an agreement with the government of a province to provide for tax transfer payments and the terms and conditions relating to such payments.
Marginal note:Tax transfer payment
(2)Where, on account of the tax for a taxation year payable by an individual under this Part, an amount has been deducted or withheld under subsection 153(1) on the assumption that the individual was resident in a place other than the province in which the individual resided on the last day of the year, and the individual
(a)has filed a return of income for the year with the Minister,
(b)is liable to pay tax under this Part for the year, and
(c)is resident on the last day of the year in a province with which an agreement described in subsection 154(1) has been entered into,
the Minister may make a tax transfer payment to the government of the province not exceeding an amount equal to the product obtained by multiplying the amount or the total of the amounts so deducted or withheld by a prescribed rate.
Marginal note:Payment deemed received by individual
(3)Where, pursuant to an agreement entered into under subsection 154(1), an amount has been transferred by the Minister to the government of a province with respect to an individual, the amount shall, for all purposes of this Act, be deemed to have been received by the individual at the time the amount was transferred.
Marginal note:Payment deemed received by Receiver General
(4)Where, pursuant to an agreement entered into under subsection 154(1), an amount has been transferred by the government of a province to the Minister with respect to an individual, the amount shall, for all purposes of this Act, be deemed to have been received by the Receiver General on account of the individual’s tax under this Part for the year in respect of which the amount was transferred.
Marginal note:Amount not to include refund
(5)In this section, an amount deducted or withheld does not include any refund made in respect of that amount.
Marginal note:Farmers and fishermen
155(1)Subject to section 156.1, every individual whose chief source of income for a taxation year is farming or fishing shall, on or before December 31 in the year, pay to the Receiver General in respect of the year, 2/3 of
(a)the amount estimated by the individual to be the tax payable under this Part by the individual for the year, or
(b)the individual’s instalment base for the preceding taxation year.
Definition ofinstalment base
(2)In this section,instalment baseof an individual for a taxation year means the amount determined in prescribed manner to be the individual’s instalment base for the year.
Marginal note:Other individuals
156(1)Subject to section 156.1, in respect of each taxation year every individual (other than one to whom section 155 applies for the year) shall pay to the Receiver General
(a)on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to 1/4 of
(i)the amount estimated by the individual to be the tax payable under this Part by the individual for the year, or
(ii)the individual’s instalment base for the preceding taxation year, or
(b)on or before
(i)March 15 and June 15 in the year, an amount equal to 1/4 of the individual’s instalment base for the second preceding taxation year, and
(ii)September 15 and December 15 in the year, an amount equal to 1/2 of the amount, if any, by which
(A)the individual’s instalment base for the preceding taxation year
exceeds
(B)1/2 of the individual’s instalment base for the second preceding taxation year.
Marginal note:Payment by mutual fund trusts
(2)Notwithstanding subsection 156(1), the amount payable by a mutual fund trust to the Receiver General on or before any day referred to in paragraph 156(1)(a) in a taxation year shall be deemed to be the amount, if any, by which
(a)the amount so payable otherwise determined under that subsection,
exceeds
(b)1/4 of the trust’s capital gains refund (within the meaning assigned by section 132) for the year.
Definition ofinstalment base
(3)In this section,instalment baseof an individual for a taxation year means the amount determined in prescribed manner to be the individual’s instalment base for the year.
Marginal note:Payments by SIFT trusts
(4)Subsections (1) to (3) and section 156.1 do not apply to a SIFT trust.
Marginal note:Definitions
156.1(1)For the purposes of this section,
instalment thresholdof an individual for a taxation year means
(a)in the case of an individual resident in the Province of Quebec at the end of the year, $1,800, and
(b)in any other case, $3,000; (plafond des acomptes provisionnels)
net tax owingby an individual for a taxation year means
(a)in the case of an individual resident in the Province of Quebec at the end of the year, the amount determined by the formula
A - C - D - F
and
(b)in any other case, the amount determined by the formula
A + B - C - E - F
where
Values of A and B innet tax owing
(1.1)For the purposes of determining the values of A and B in the definitionnet tax owingin subsection 156.1(1), income taxes payable by an individual for a taxation year are determined
(a)before taking into consideration the specified future tax consequences for the year; and
(b)after deducting all tax credits to which the individual is entitled for the year relating to those taxes (other than tax credits that become payable to the individual after the individual’s balance-due day for the year, prescribed tax credits and amounts deemed to have been paid because of the application of either subsection 120(2) or (2.2)).
Value of D innet tax owing
(1.2)For the purpose of determining the value of D in the definitionnet tax owingin subsection 156.1(1), the amount deemed by subsection 120(2) to have been paid on account of an individual’s tax under this Part for a taxation year is determined before taking into consideration the specified future tax consequences for the year.
Value of F innet tax owing
(1.3)For the purpose of determining the value of F in the definitionnet tax owingin subsection (1), the amount deemed by subsection 120(2.2) to have been paid on account of an individual’s tax under this Part for a taxation year is determined before taking into consideration the specified future tax consequences for the year.
Marginal note:No instalment required
(2)Sections 155 and 156 do not apply to an individual for a particular taxation year where
(a)the individual’s chief source of income for the particular year is farming or fishing and the individual’s net tax owing for the particular year, or either of the 2 preceding taxation years, does not exceed the individual’s instalment threshold for that year;
(b)the individual’s net tax owing for the particular year, or for each of the 2 preceding taxation years, does not exceed the individual’s instalment threshold for that year; or
(c)the individual is a graduated rate estate for the particular year.
Marginal note:Idem
(3)Sections 155 and 156 do not require the payment of any amount in respect of an individual that would otherwise become due under either of those sections on or after the day on which the individual dies.
Marginal note:Payment of remainder
(4)Every individual shall, on or before the individual’s balance-due day for each taxation year, pay to the Receiver General in respect of the year the amount, if any, by which the individual’s tax payable under this Part for the year exceeds the total of
(a)all amounts deducted or withheld under section 153 from remuneration or other payments received by the individual in the year, and
(b)all other amounts paid to the Receiver General on or before that day on account of the individual’s tax payable under this Part for the year.
Marginal note:Payment by corporation
157(1)Subject to subsections (1.1) and (1.5), every corporation shall, in respect of each of its taxation years, pay to the Receiver General
(a)either
(i)on or before the last day of each month in the year, an amount equal to 1/12 of the total of the amounts estimated by it to be the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the year,
(ii)on or before the last day of each month in the year, an amount equal to 1/12 of its first instalment base for the year, or
(iii)on or before the last day of each of the first two months in the year, an amount equal to 1/12 of its second instalment base for the year, and on or before the last day of each of the following months in the year, an amount equal to 1/10 of the amount remaining after deducting the amount computed pursuant to this subparagraph in respect of the first two months from its first instalment base for the year; and
(b)the remainder of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the year on or before its balance-due day for the year.
Marginal note:Special case
(1.1)A small-CCPC may, in respect of each of its taxation years, pay to the Receiver General
(a)one of the following:
(i)on or before the last day of each three-month period in the taxation year (or if the period that remains in a taxation year after the end of the last such three-month period is less than three months, on or before the last day of that remaining period), an amount equal to 1/4 of the total of the amounts estimated by it to be the taxes payable by it under this Part and Part VI.1 for the taxation year,
(ii)on or before the last day of each three-month period in the taxation year (or if the period that remains in a taxation year after the end of the last such three-month period is less than three months, on or before the last day of that remaining period), an amount equal to 1/4 of its first instalment base for the taxation year, or
(iii)on or before the last day
(A)of the first period in the taxation year not exceeding three months, an amount equal to 1/4 of its second instalment base for the taxation year, and
(B)of each of the following three-month periods in the taxation year (or if the period that remains in a taxation year after the end of the last such three-month period is less than three months, on or before the last day of that remaining period), an amount equal to 1/3 of the amount remaining after deducting the amount computed pursuant to clause (A) from its first instalment base for the taxation year; and
(b)the remainder of the taxes payable by it under this Part and Part VI.1 for the taxation year on or before its balance-due day for the taxation year.
Marginal note:Small-CCPC
(1.2)For the purpose of subsection (1.1), a small-CCPC, at a particular time during a taxation year, is a Canadian-controlled private corporation
(a)for which the amount determined under subsection (1.3) for the taxation year, or for the preceding taxation year, does not exceed $500,000;
(b)for which the amount determined under subsection (1.4) for the taxation year, or for the preceding taxation year, does not exceed $10 million;
(c)in respect of which an amount is deducted under section 125 of the Act in computing the corporation’s tax payable for the taxation year or for the preceding taxation year; and
(d)that has throughout the 12-month period that ends at the time its last remittance under this section is due,
(i)remitted, on or before the day on or before which the amounts were required to be remitted, all amounts that were required to be remitted under subsection 153(1), under Part IX of theExcise Tax Act, under subsection 82(1) of theEmployment Insurance Actor under subsection 21(1) of theCanada Pension Plan; and
(ii)filed, on or before the day on or before which the returns were required to be filed, all returns that were required to be filed under this Act or under Part IX of theExcise Tax Act.
Marginal note:Taxable income — small-CCPC
(1.3)The amount determined under this subsection in respect of a corporation for a particular taxation year is
(a)if the corporation is not associated with another corporation in the particular taxation year, the amount that is the corporation’s taxable income for the particular taxation year; or
(b)if the corporation is associated with another corporation in the particular taxation year, the amount that is the total of all amounts each of which is the taxable income of the corporation for the particular taxation year or the taxable income of a corporation with which it is associated in the particular taxation year for a taxation year of that other corporation that ends in the particular taxation year.
Marginal note:Taxable capital — small-CCPC
(1.4)The amount determined under this subsection in respect of a corporation for a particular taxation year is
(a)if the corporation is not associated with another corporation in the particular taxation year, the amount that is the corporation’s taxable capital employed in Canada (for the purpose of this subsection, within the meaning assigned by section 181.2 or 181.3, as the case may be) for the particular taxation year; or
(b)if the corporation is associated with another corporation in the particular taxation year, the amount that is the total of all amounts each of which is the taxable capital employed in Canada of the corporation for the particular taxation year or the taxable capital employed in Canada of a corporation with which it is associated in the particular taxation year for a taxation year of that other corporation that ends in the particular taxation year.
Marginal note:No longer a small-CCPC
(1.5)Notwithstanding subsection (1), where a corporation, that has remitted amounts in accordance with subsection (1.1), ceases at any particular time in a taxation year to be eligible to remit in accordance with subsection (1.1), the corporation shall pay to the Receiver General, the following amounts for the taxation year,
(a)on or before the last day of each month, in the taxation year, that ends after the particular time, either
(i)the amount determined by the formula
(A - B)/C
where
(ii)the total of
(A)the amount determined by the formula
(A - B)/C
where
(B)the amount obtained when the estimated tax payable by the corporation, if any, under Parts VI and XIII.1 for the taxation year is divided by the number of months that end in the taxation year and after the particular time; and
(b)the remainder of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year on or before its balance-due day for the year.
Marginal note:Application to SIFT trusts
(2)Subsections (1), (2.1) and (4) apply to a SIFT trust with any modifications that the circumstances require.
Marginal note:$3,000 threshold
(2.1)A corporation may, instead of paying the instalments required for a taxation year by paragraph (1)(a) or by subsection (1.1), pay to the Receiver General, under paragraph (1)(b), the total of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year, if
(a)the total of the taxes payable under this Part and Parts VI, VI.1 and XIII.1 by the corporation for the taxation year (determined before taking into consideration the specified future tax consequences for the year) is equal to or less than $3,000; or
(b)the corporation’s first instalment base for the year is equal to or less than $3,000.
Marginal note:Reduced instalments
(3)Notwithstanding subsection (1) and (1.5), the amount payable under subsection (1) or (1.5) for a taxation year by a corporation to the Receiver General on or before the last day of any month in the year is deemed to be the amount, if any, by which
(a)the amount so payable as determined under that subsection for the month
exceeds
(b)where the corporation is neither a mutual fund corporation nor a non-resident-owned investment corporation, 1/12 of the corporation’s dividend refund (within the meaning assigned by subsection 129(1)) for the year,
(c)if the corporation is a mutual fund corporation, 1/12 of the total of
(i)the corporation’s capital gains refund (within the meaning assigned by section 131) for the year, and
(ii)the amount that, because of subsection 131(5) or (11), is the corporation’s dividend refund (within the meaning assigned by section 129) for the year,
(d)where the corporation is a non-resident-owned investment corporation, 1/12 of the corporation’s allowable refund (within the meaning assigned by section 133) for the year, and
(e)1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the year.
Marginal note:Amount of payment — three-month period
(3.1)Notwithstanding subsection (1.1), the amount payable under subsection (1.1) for a taxation year by a corporation to the Receiver General on or before the last day of any period in the year is deemed to be the amount, if any, by which
(a)the amount so payable as determined under that subsection for the period
exceeds the total of
(b)1/4 of the corporation’s dividend refund (within the meaning assigned by subsection 129(1)) for the taxation year, and
(c)1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the taxation year.
Marginal note:Definitions
(4)In this section,first instalment baseandsecond instalment baseof a corporation for a taxation year have the meanings prescribed by regulation.
Marginal note:Instalment deferral for January, February and March 2002 - definitions
157.1(1)The following definitions apply in this section.
eligible corporation, for a particular taxation year, means a corporation
(a)that is resident in Canada throughout the particular taxation year; and
(b)of which the taxable capital employed in Canada, within the meaning assigned by Part I.3, for its preceding taxation year did not exceed,
(i)if the corporation is not associated with any other corporation in the particular taxation year, $15 million, and
(ii)if the corporation is associated with one or more other corporations in the particular taxation year, the amount by which $15 million exceeds the total of the taxable capital employed in Canada, within the meaning assigned by Part I.3, of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the particular taxation year. (société admissible)
eligible instalment dayof an eligible corporation means a day in January, February or March, 2002, on which an instalment on account of the corporation’s tax payable under this Part for the taxation year that includes that day would become payable
(a)if this Act were read without reference to this section; and
(b)if, in the case of a corporation that is not required by section 157 to make instalment payments on account of its tax payable under this Part for the taxation year, it were so required. (jour admissible)
Marginal note:Deferred balance-due day
(2)An eligible corporation’s balance-due day for a taxation year that ends after 2001 is deemed to be the later of
(a)the day that would otherwise be the corporation’s balance-due day for the taxation year, and
(b)the day that is six months after the corporation’s last eligible instalment day in the taxation year.
Marginal note:Deferred instalment day
(3)An amount that would, because of paragraph 157(1)(a), otherwise become payable in respect of a taxation year by an eligible corporation on an eligible instalment day of the corporation does not become payable on that day but becomes payable
(a)if the particular day that is six months after the eligible instalment day is in the taxation year, on the particular day; and
(b)in any other case, on the day that is deemed by subsection (2) to be the corporation’s balance-due day for the taxation year.
Marginal note:Payment of remainder
158Where the Minister mails a notice of assessment of any amount payable by a taxpayer, that part of the amount assessed then remaining unpaid is payable forthwith by the taxpayer to the Receiver General.
Marginal note:Person acting for another
159(1)For the purposes of this Act, where a person is a legal representative of a taxpayer at any time,
(a)the legal representative is jointly and severally, or solidarily, liable with the taxpayer
(i)to pay each amount payable under this Act by the taxpayer at or before that time and that remains unpaid, to the extent that the legal representative is at that time in possession or control, in the capacity of legal representative, of property that belongs or belonged to, or that is or was held for the benefit of, the taxpayer or the taxpayer’s estate, and
(ii)to perform any obligation or duty imposed under this Act on the taxpayer at or before that time and that remains outstanding, to the extent that the obligation or duty can reasonably be considered to relate to the responsibilities of the legal representative acting in that capacity; and
(b)any action or proceeding in respect of the taxpayer taken under this Act at or after that time by the Minister may be so taken in the name of the legal representative acting in that capacity and, when so taken, has the same effect as if it had been taken directly against the taxpayer and, if the taxpayer no longer exists, as if the taxpayer continued to exist.
Marginal note:Certificate before distribution
(2)Every legal representative (other than a trustee in bankruptcy) of a taxpayer shall, before distributing to one or more persons any property in the possession or control of the legal representative acting in that capacity, obtain a certificate from the Minister, by applying for one in prescribed form, certifying that all amounts
(a)for which the taxpayer is or can reasonably be expected to become liable under this Act at or before the time the distribution is made, and
(b)for the payment of which the legal representative is or can reasonably be expected to become liable in that capacity
have been paid or that security for the payment thereof has been accepted by the Minister.
Marginal note:Personal liability
(3)If a legal representative (other than a trustee in bankruptcy) of a taxpayer distributes to one or more persons property in the possession or control of the legal representative, acting in that capacity, without obtaining a certificate under subsection (2) in respect of the amounts referred to in that subsection,
(a)the legal representative is personally liable for the payment of those amounts to the extent of the value of the property distributed;
(b)the Minister may at any time assess the legal representative in respect of any amount payable because of this subsection; and
(c)the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, to an assessment made under this subsection as though it had been made under section 152 in respect of taxes payable under this Part.
Marginal note:Appropriation of property
(3.1)For the purposes of subsections 159(2) and 159(3), an appropriation by a legal representative of a taxpayer of property in the possession or control of the legal representative acting in that capacity is deemed to be a distribution of the property to a person.
(4) and (4.1)[Repealed, 2001, c. 17, s. 154(1)]
Marginal note:Election where certain provisions applicable
(5)Where subsection 70(2), 70(5) or 70(5.2) of this Act or subsection 70(9.4) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, is applicable in respect of a taxpayer who has died, and the taxpayer’s legal representative so elects and furnishes the Minister with security acceptable to the Minister for payment of any tax the payment of which is deferred by the election, notwithstanding any provision of this Part or theIncome Tax Application Rulesrespecting the time within which payment shall be made of the tax payable under this Part by the taxpayer for the taxation year in which the taxpayer died, all or any portion of such part of that tax as is equal to the amount, if any, by which that tax exceeds the amount that that tax would be, if this Act were read without reference to subsections 70(2), (5) and (5.2) and theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, were read without reference to subsections 70(2), (5), (5.2) and (9.4) of that Act, may be paid in such number (not exceeding 10) of equal consecutive annual instalments as is specified by the legal representative in the election, the first instalment of which shall be paid on or before the day on or before which payment of that tax would, but for the election, have been required to be made and each subsequent instalment of which shall be paid on or before the next following anniversary of that day.
Marginal note:Idem
(5.1)Where, in the taxation year in which a taxpayer dies, an amount is included in computing the taxpayer’s income by virtue of paragraph 23(3)(c) of theIncome Tax Application Rules, the provisions of subsection 159(5) apply, with such modifications as the circumstances require, as though the amount were an amount included in computing the taxpayer’s income for the year by virtue of subsection 70(2) or an amount deemed to have been received by the taxpayer by virtue of subsection 70(5).
Marginal note:Idem
(6)For the purposes of subsection 159(5), thetax payable under this Partby a taxpayer for the taxation year in which the taxpayer died includes any tax payable under this Part by virtue of an election in respect of the taxpayer’s death made by the taxpayer’s legal representative under subsection 70(2) or under the provisions of that subsection as they are required to be read by virtue of theIncome Tax Application Rules.
Marginal note:Election where subsection 104(4) applicable
(6.1)Where a time determined under paragraph 104(4)(a), (a.1), (a.2), (a.3), (a.4), (b) or (c) in respect of a trust occurs in a taxation year of the trust and the trust so elects and furnishes to the Minister security acceptable to the Minister for payment of any tax the payment of which is deferred by the election, notwithstanding any other provision of this Part respecting the time within which payment shall be made of the tax payable under this Part by the trust for the year, all or any portion of the part of that tax that is equal to the amount, if any, by which that tax exceeds the amount that that tax would be if this Act were read without reference to paragraph 104(4)(a), (a.1), (a.2), (a.3), (a.4), (b) or (c), as the case may be, may be paid in the number (not exceeding 10) of equal consecutive annual instalments that is specified by the trust in the election, the first instalment of which shall be paid on or before the day on or before which payment of that tax would, but for the election, have been required to be made and each subsequent instalment of which shall be paid on or before the next following anniversary of that day.
Marginal note:Form and manner of election and interest
(7)Every election made by a taxpayer under subsection 159(4) or 159(6.1) or by the legal representative of a taxpayer under subsection 159(5) shall be made in prescribed form and on condition that, at the time of payment of any amount payment of which is deferred by the election, the taxpayer shall pay to the Receiver General interest on the amount at the prescribed rate in effect at the time the election was made, computed from the day on or before which the amount would, but for the election, have been required to be paid to the day of payment.
Marginal note:Interpretation
160(0.1)In this section and section 160.01, a transaction includes an arrangement or event.
Marginal note:Tax liability re property transferred not at arm’s length
(1)Where a person has, on or after May 1, 1951, transferred property, either directly or indirectly, by means of a trust or by any other means whatever, to
(a)the person’s spouse or common-law partner or a person who has since become the person’s spouse or common-law partner,
(b)a person who was under 18 years of age, or
(c)a person with whom the person was not dealing at arm’s length,
the following rules apply:
(d)the transferee and transferor are jointly and severally, or solidarily, liable to pay a part of the transferor’s tax under this Part for each taxation year equal to the amount by which the tax for the year is greater than it would have been if it were not for the operation of sections 74.1 to 75.1 of this Act and section 74 of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, in respect of any income from, or gain from the disposition of, the property so transferred or property substituted for it, and
(e)the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Act an amount equal to the lesser of
(i)the amount, if any, by which the fair market value of the property at the time it was transferred exceeds the fair market value at that time of the consideration given for the property, and
(ii)the total of all amounts each of which is an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) for that amount) in or in respect of the taxation year in which the property was transferred or any preceding taxation year,
but nothing in this subsection limits the liability of the transferor under any other provision of this Act or of the transferee for the interest that the transferee is liable to pay under this Act on an assessment in respect of the amount that the transferee is liable to pay because of this subsection.
Marginal note:Joint and several, or solidary, liability — subsection 69(11)
(1.1)If a particular person or partnership is deemed by subsection 69(11) to have disposed of a property at any time, the person referred to in that subsection to whom a benefit described in that subsection was available in respect of a subsequent disposition of the property or property substituted for the property is jointly and severally, or solidarily, liable with each other taxpayer to pay a part of the other taxpayer’s liabilities under this Act in respect of each taxation year equal to the amount determined by the formula
A - B
where
but nothing in this subsection limits the liability of the other taxpayer under any other provision of this Act or of any person for the interest that the person is liable to pay under this Act on an assessment in respect of the amount that the person is liable to pay because of this subsection.
Marginal note:Joint and several, or solidary, liability — tax on split income
(1.2)If an amount is required to be added because of subsection 120.4(2) in computing a specified individual’s tax payable under this Part for a taxation year and the specified individual has not attained the age of 24 years before the start of the year, the following rules apply:
(a)subject to paragraph (b), a particular individual is jointly and severally, or solidarily, liable with the specified individual for the amount if
(i)where the specified individual has not attained the age of 17 years before the year, the particular individual is a parent of the specified individual, and
(ii)where the specified individual has attained the age of 17 years before the year,
(A)the particular individual is a source individual in respect of the specified individual,
(B)the amount was derived directly or indirectly from a related business (within the meaning of paragraph 120.4(1.1)(d)) in respect of the specified individual, and
(C)the particular individual meets the conditions in any of paragraphs (a) to (c) in the definitionrelated businessin subsection 120.4(1) in respect of the related business;
(b)the particular individual’s liability under paragraph (a) in respect of the specified individual for the year is to be determined as though the only amounts included in the specified individual’s split income for the year are amounts derived from the related business referred to in subparagraph (a)(ii); and
(c)nothing in this subsection limits the liability of
(i)the specified individual under any other provision of this Act, or
(ii)the particular individual for the interest that the particular individual is liable to pay under this Act on an assessment in respect of the amount that the particular individual is liable to pay because of this subsection.
Marginal note:Joint liability — tax on split-pension income
(1.3)Where a pensioner and a pension transferee (as those terms are defined in section 60.03) make a joint election under section 60.03 in respect of a split-pension amount (as defined in that section) for a taxation year, they are jointly and severally, or solidarily, liable for the tax payable by the pension transferee under this Part for the taxation year to the extent that that tax payable is greater than it would have been if no amount were required to be added because of paragraph 56(1)(a.2) in computing the income of the pension transferee under this Part for the taxation year.
Marginal note:Joint liability — spousal and similar trusts
(1.4)If subsection 104(13.4) deems an amount to have become payable in a taxation year of a trust to an individual, the individual and the trust are jointly and severally, or solidarily, liable for the tax payable by the individual under this Part for the individual’s taxation year that includes the day on which the individual dies to the extent that that tax payable is greater than it would have been if the amount were not included in computing the individual’s income under this Part for the taxation year.
Marginal note:Assessment
(2)The Minister may at any time assess a taxpayer in respect of any amount payable because of this section, and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part.
Marginal note:Assessment
(2.1)The Minister may at any time assess a taxpayer in respect of any amount payable because of paragraph 94(3)(d) or (e) or subsection 94(17) and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part.
Marginal note:Discharge of liability
(3)If a particular taxpayer has become jointly and severally, or solidarily, liable with another taxpayer under this section or because of paragraph 94(3)(d) or (e) or subsection 94(17) in respect of part or all of a liability under this Act of the other taxpayer,
(a)a payment by the particular taxpayer on account of that taxpayer’s liability shall to the extent of the payment discharge their liability; but
(b)a payment by the other taxpayer on account of that taxpayer’s liability discharges the particular taxpayer’s liability only to the extent that the payment operates to reduce that other taxpayer’s liability to an amount less than the amount in respect of which the particular taxpayer is, by this section, made jointly and severally, or solidarily, liable.
Marginal note:Fair market value of undivided interest or right
(3.1)For the purposes of this section and section 160.4, the fair market value at any time of an undivided interest, or for civil law an undivided right, in a property, expressed as a proportionate interest or right in that property, is, subject to subsection (4), deemed to be equal to the same proportion of the fair market value of that property at that time.
Marginal note:Special rules re transfer of property to spouse or common-law partner
(4)Notwithstanding subsection 160(1), where at any time a taxpayer has transferred property to the taxpayer’s spouse or common-law partner pursuant to a decree, order or judgment of a competent tribunal or pursuant to a written separation agreement and, at that time, the taxpayer and the spouse or common-law partner were separated and living apart as a result of the breakdown of their marriage or common-law partnership, the following rules apply:
(a)in respect of property so transferred after February 15, 1984,
(i)the spouse or common-law partner shall not be liable under subsection 160(1) to pay any amount with respect to any income from, or gain from the disposition of, the property so transferred or property substituted therefor, and
(ii)for the purposes of paragraph 160(1)(e), the fair market value of the property at the time it was transferred shall be deemed to be nil, and
(b)in respect of property so transferred before February 16, 1984, where the spouse common-law partner would, but for this paragraph, be liable to pay an amount under this Act by virtue of subsection 160(1), the spouse’s or common-law partner’s liability in respect of that amount shall be deemed to have been discharged on February 16, 1984,
but nothing in this subsection shall operate to reduce the taxpayer’s liability under any other provision of this Act.
Marginal note:Anti-avoidance rules
(5)For the purposes of subsections (1) to (4), if a person (referred to in this section as the “transferor”) has transferred property either directly or indirectly, by means of a trust or by any other means whatever to another person (referred to in this section as the “transferee”) in a transaction or as part of a series of transactions
(a)the transferor is deemed to not be dealing at arm’s length with the transferee at all times in the transaction or series of transactions if
(i)at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, the transferor and transferee do not deal at arm’s length, and
(ii)it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and transferor for an amount payable under this Act;
(b)an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) for that amount) is deemed to have become payable in the taxation year in which the property was transferred if it is reasonable to conclude that one of the purposes for the transfer of property is to avoid the payment of a future amount payable under this Act by the transferor or transferee; and
(c)the amount determined under subparagraph (1)(e)(i) is deemed to be the greater of
(i)the amount otherwise determined under that subparagraph without reference to this paragraph, and
(ii)the amount determined by the formula
A − B
where
(A)the lowest fair market value of the consideration (that is held by the transferor) given for the property at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, or
(B)if the consideration is in a form that is cancelled or extinguished during the period referred to in clause (A),
(I)the amount that is the lowest of the amount determined in clause (A) and the fair market value during the period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or
(II)if there is no property that is substituted for the consideration referred to in clause (A), other than property cancelled or extinguished during the period, nil.
Marginal note:Definitions
160.01(1)The following definitions apply in this section.
gross entitlementsof a person at any time, in respect of a planning activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. (droits à paiement)
personincludes a partnership. (personne)
planning activityhas the same meaning as in subsection 163.2(1). (activité de planification)
section 160 avoidance planningby a person, means planning activity in respect of a transaction or series of transactions that
(a)is, or is part of, a section 160 avoidance transaction; and
(b)one of the purposes of the transaction or series of transactions is to
(i)reduce a transferee’s joint and several, or solidary, liability for tax owing under this Act by the transferor (or that would be owing by the transferor if not for a tax attribute transaction), or
(ii)reduce the person’s or another person’s ability to pay any amount owing, or that may become owing, under this Act. (planification d’évitement en vertu de l’article 160)
section 160 avoidance transactionmeans a transaction or series of transactions in respect of which
(a)the conditions set out in paragraph 160(5)(a) or (b) are met; or
(b)if subsection 160(5) applied to the transaction or series of transactions, the amount determined under subparagraph 160(5)(c)(ii) would exceed the amount determined under subparagraph 160(5)(c)(i). (opération d’évitement en vertu de l’article 160)
tax attributemeans a balance, pool or other amount determined under this Act that is or may be relevant in computing income or in determining a taxpayer’s liability for tax under this Act in any taxation year and includes
(a)a capital loss, non-capital loss, restricted farm loss, farm loss and limited partnership loss;
(b)an amount that is deductible in computing a person’s income;
(c)any balance of undeducted outlays, expenses or other amounts;
(d)paid-up capital in respect of a share of any class of the capital stock of a corporation;
(e)cost or capital cost of a property;
(f)an amount deductible from an amount otherwise payable under this Act; and
(g)an amount that is deemed to have been remitted as an amount payable under this Act. (attribut fiscal)
tax attribute transactionmeans a transaction or series of transactions in which a tax attribute – of a person that dealt at arm’s length with a transferor or transferee immediately before the transaction or series of transactions – is used, directly or indirectly, to provide a tax benefit for the transferor or transferee (or, if either the transferor or transferee is amalgamated with another corporation, the new corporation within the meaning assigned by subsection 87(1)). (opération d’attribut fiscal)
tax benefithas the same meaning as in subsection 163.2(1). (avantage fiscal)
transfereehas the meaning assigned by subsections 160(1) and (5). (bénéficiaire du transfert)
transferorhas the meaning assigned by subsections 160(1) and (5). (auteur du transfert)
Marginal note:Penalty
(2)Every person that engages in, participates in, assents to or acquiesces in planning activity that they know is section 160 avoidance planning, or would reasonably be expected to know is section 160 avoidance planning, but for circumstances amounting to gross negligence is liable to a penalty that is the lesser of
(a)50% of the amount payable under this Act (determined without reference to this subsection), the joint and several, or solidary, liability for which was sought to be avoided through the planning, and
(b)the total of $100,000 and the person’s gross entitlements at the time at which the notice of assessment of the penalty is sent to the person in respect of the planning.
Marginal note:Clerical or secretarial services
(3)Subsection (2) does not apply to a person solely because the person provided clerical services or secretarial services with respect to the planning.
Marginal note:Where excess refunded
160.1(1)Where at any time the Minister determines that an amount has been refunded to a taxpayer for a taxation year in excess of the amount to which the taxpayer was entitled as a refund under this Act, the following rules apply:
(a)the excess shall be deemed to be an amount that became payable by the taxpayer on the day on which the amount was refunded; and
(b)the taxpayer shall pay to the Receiver General interest at the prescribed rate on the excess (other than any portion thereof that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61 or 122.8) from the day it became payable to the date of payment.
Marginal note:Liability for refund by reason of s. 122.5
(1.1)If a person is a qualified relation of an individual (within the meaning assigned by subsection 122.5(1)), in relation to one or more months specified for a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of
(a)any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.5, and
(b)the total of the amounts deemed by subsection 122.5(3) or (3.002) to have been paid by the individual during those specified months.
Marginal note:Liability for refund — Climate Action Incentive
(1.2)If a person is a qualified relation of an individual (within the meaning assigned by subsection 122.8(1)), in relation to one or more months specified for a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of
(a)any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.8; and
(b)the total of the amounts deemed by subsection 122.8(4) to have been paid by the individual during those specified months.
Marginal note:Liability under other provisions
(2)Subsections (1.1) and (1.2) do not limit a person’s liability under any other provision of this Act.
Marginal note:Liability for refunds by reason of section 122.61
(2.1)If a person was a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) of an individual at the end of a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay any excess described in subsection (1) that was refunded in respect of the year to, or applied to a liability of, the individual as a consequence of the operation of section 122.61 if the person was the individual’s cohabiting spouse or common-law partner at the time the excess was refunded, but nothing in this subsection is deemed to limit the liability of any person under any other provision of this Act.
Marginal note:Liability for excess refunds under section 126.1 to partners
(2.2)Every taxpayer who, on the day on which an amount has been refunded to, or applied to the liability of, a member of a partnership as a consequence of the operation of subsection 126.1(7) or (13) in excess of the amount to which the member was so entitled, is a member of that partnership is jointly and severally, or solidarily, liable with each other taxpayer who on that day is a member of the partnership to pay the excess and to pay interest on the excess, but nothing in this subsection is deemed to limit the liability of any person under any other provision of this Act.
Marginal note:Assessment
(3)The Minister may at any time assess a taxpayer in respect of any amount payable by the taxpayer because of any of subsections (1) to (1.2) or for which the taxpayer is liable because of subsection (2.1) or (2.2), and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section, as though it were made under section 152 in respect of taxes payable under this Part, except that no interest is payable on an amount assessed in respect of an excess referred to in subsection (1) that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61 or 122.8.
Marginal note:Where amount applied to liability
(4)Where an amount is applied to a liability of a taxpayer to Her Majesty in right of Canada in excess of the amount to which the taxpayer is entitled as a refund under this Act, this section applies as though that amount had been refunded to the taxpayer on the day it was so applied.
Marginal note:Joint and several liability in respect of amounts received out of or under RRSP
160.2(1)Where
(a)an amount is received out of or under a registered retirement savings plan by a taxpayer other than an annuitant (within the meaning assigned by subsection 146(1)) under the plan, and
(b)that amount or part thereof would, but for paragraph (a) of the definitionbenefitin subsection 146(1), be received by the taxpayer as a benefit (within the meaning assigned by that definition),
the taxpayer and the last annuitant under the plan are jointly and severally, or solidarily, liable to pay a part of the annuitant’s tax under this Part for the year of the annuitant’s death equal to that proportion of the amount by which the annuitant’s tax for the year is greater than it would have been if it were not for the operation of subsection 146(8.8) that the total of all amounts each of which is an amount determined under paragraph (b) in respect of the taxpayer is of the amount included in computing the annuitant’s income because of that subsection, but nothing in this subsection limits the liability of the annuitant under any other provision of this Act or of the taxpayer for the interest that the taxpayer is liable to pay under this Act on an assessment in respect of the amount that the taxpayer is liable to pay because of this subsection.
Marginal note:Joint and several liability in respect of amounts received out of or under RRIF
(2)Where
(a)an amount is received out of or under a registered retirement income fund by a taxpayer other than an annuitant (within the meaning assigned by subsection 146.3(1)) under the fund, and
(b)that amount or part thereof would, but for paragraph 146.3(5)(a), be included in computing the taxpayer’s income for the year of receipt pursuant to subsection 146.3(5),
the taxpayer and the annuitant are jointly and severally, or solidarily, liable to pay a part of the annuitant’s tax under this Part for the year of the annuitant’s death equal to that proportion of the amount by which the annuitant’s tax for the year is greater than it would have been if it were not for the operation of subsection 146.3(6) that the amount determined under paragraph (b) is of the amount included in computing the annuitant’s income because of that subsection, but nothing in this subsection limits the liability of the annuitant under any other provision of this Act or of the taxpayer for the interest that the taxpayer is liable to pay under this Act on an assessment in respect of the amount that the taxpayer is liable to pay because of this subsection.
Marginal note:Joint and several liability in respect of a qualifying trust annuity
(2.1)If a taxpayer is deemed by section 75.2 to have received at any time an amount out of or under an annuity that is a qualifying trust annuity with respect to the taxpayer, the taxpayer, the annuitant under the annuity and the policyholder are jointly and severally, or solidarily, liable to pay the part of the taxpayer’s tax under this Part for the taxation year of the taxpayer that includes that time that is equal to the amount, if any, determined by the formula
A – B
where
Marginal note:No limitation on liability
(2.2)Subsection (2.1) limits neither
(a)the liability of the taxpayer referred to in that subsection under any other provision of this Act; nor
(b)the liability of an annuitant or policyholder referred to in that subsection for the interest that the annuitant or policyholder is liable to pay under this Act on an assessment in respect of the amount that the annuitant or policyholder is liable to pay because of that subsection.
Marginal note:Joint and several liability — FHSA
(2.3)If an amount required to be included in the income of a holder of a FHSA because of section 146.6 is received by a taxpayer other than the holder, that taxpayer is jointly and severally, or solidarily, liable with the holder to pay a part of the holder’s tax under this Part for the taxation year in which the amount is received equal to the amount by which the holder’s tax for the year exceeds the amount that would be the holder’s tax for the year if the amount had not been received, but nothing in this subsection limits the liability of the holder under any other provision of this Act or of the taxpayer for the interest that the taxpayer is liable to pay under this Act on an assessment in respect of the amount that the taxpayer is liable to pay because of this subsection.
Marginal note:Assessment
(3)The Minister may at any time assess a taxpayer in respect of any amount payable because of this section, and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part.
Marginal note:Rules applicable
(4)If a taxpayer and an annuitant or holder have, by virtue of subsection (1), (2) or (2.3), become jointly and severally, or solidarily, liable in respect of part or all of a liability of the annuitant or holder under this Act, the following rules apply:
(a)a payment by the taxpayer on account of the taxpayer’s liability shall to the extent thereof discharge their liability; but
(b)a payment by the annuitant or holder on account of the liability of the annuitant or holder discharges the taxpayer’s liability only to the extent that the payment operates to reduce the liability of the annuitant or holder to an amount less than the amount in respect of which the taxpayer was, by subsection (1), (2) or (2.3), as the case may be, made jointly and severally, or solidarily, liable.
Marginal note:Rules applicable — qualifying trust annuity
(5)If an annuitant or policyholder has, because of subsection (2.1), become jointly and severally, or solidarily, liable with a taxpayer in respect of part or all of a liability of the taxpayer under this Act, the following rules apply:
(a)a payment by the annuitant on account of the annuitant’s liability, or by the policyholder on account of the policyholder’s liability, shall to the extent of the payment discharge their liability, but
(b)a payment by the taxpayer on account of the taxpayer’s liability only discharges the annuitant’s and the policyholder’s liability to the extent that the payment operates to reduce the taxpayer’s liability to an amount less than the amount in respect of which the annuitant and the policyholder were, by subsection (2.1), made liable.
Marginal note:Joint and several liability — registered disability savings plan
160.21(1)Where, in computing income for a taxation year, a taxpayer is required to include an amount in respect of a disability assistance payment (as defined in subsection 146.4(1)) that is deemed by subsection 146.4(10) to have been made at any particular time from a registered disability savings plan, the taxpayer and each holder (as defined in subsection 146.4(1)) of the plan immediately after the particular time are jointly and severally, or solidarily, liable to pay the part of the taxpayer’s tax under this Part for that taxation year that is equal to the amount, if any, determined by the formula
A - B
where
Marginal note:No limitation on liability
(2)Subsection (1) limits neither
(a)the liability of the taxpayer referred to in that subsection under any other provision of this Act, nor
(b)the liability of any holder referred to in that subsection for the interest that the holder is liable to pay under this Act on an assessment in respect of the amount that the holder is liable to pay because of that subsection.
Marginal note:Rules applicable — registered disability savings plans
(3)Where a holder (as defined in subsection 146.4(1)) of a registered disability savings plan has, because of subsection (1), become jointly and severally, or solidarily, liable with a taxpayer in respect of part or all of a liability of the taxpayer under this Act, the following rules apply:
(a)a payment by the holder on account of the holder’s liability shall to the extent of the payment discharge the holder’s liability, but
(b)a payment by the taxpayer on account of the taxpayer’s liability only discharges the holder’s liability to the extent that the payment operates to reduce the taxpayer’s liability to an amount less than the amount in respect of which the holder was, by subsection (1), made liable.
Marginal note:Assessment
(4)The Minister may at any time assess a taxpayer in respect of any amount payable because of this section, and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part.
Marginal note:Liability in respect of amounts received out of or under RCA trust
160.3(1)If an amount required to be included in the income of a taxpayer because of paragraph 56(1)(x) is received by a person with whom the taxpayer is not dealing at arm’s length, that person is jointly and severally, or solidarily, liable with the taxpayer to pay a part of the taxpayer’s tax under this Part for the taxation year in which the amount is received equal to the amount by which the taxpayer’s tax for the year exceeds the amount that would be the taxpayer’s tax for the year if the amount had not been received, but nothing in this subsection limits the liability of the taxpayer under any other provision of this Act or of the person for the interest that the person is liable to pay under this Act on an assessment in respect of the amount that the person is liable to pay because of this subsection.
Marginal note:Assessment
(2)The Minister may at any time assess a person in respect of any amount payable because of this section, and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part.
Marginal note:Rules applicable
(3)If a taxpayer and another person have, by virtue of subsection (1), become jointly and severally, or solidarily, liable in respect of part or all of a liability of the taxpayer under this Act, the following rules apply:
(a)a payment by the other person on account of the other person’s liability shall to the extent thereof discharge their liability; but
(b)a payment by the taxpayer on account of the taxpayer’s liability discharges the other person’s liability only to the extent that the payment operates to reduce the taxpayer’s liability to an amount less than the amount in respect of which the other person was, by subsection (1), made jointly and severally, or solidarily, liable.
Marginal note:Liability in respect of transfers by insolvent corporations
160.4(1)If property is transferred at any time by a corporation to a taxpayer with whom the corporation does not deal at arm’s length at that time and the corporation is not entitled because of subsection 61.3(3) to deduct an amount under section 61.3 in computing its income for a taxation year because of the transfer or because of the transfer and one or more other transactions, the taxpayer is jointly and severally, or solidarily, liable with the corporation to pay the lesser of the corporation’s tax payable under this Part for the year and the amount, if any, by which the fair market value of the property at that time exceeds the fair market value at that time of the consideration given for the property, but nothing in this subsection limits the liability of the corporation under any other provision of this Act or of the taxpayer for the interest that the taxpayer is liable to pay under this Act on an assessment in respect of the amount that the taxpayer is liable to pay because of this subsection.
Marginal note:Indirect transfers
(2)Where
(a)property is transferred at any time from a taxpayer (in this subsection referred to as the “transferor”) to another taxpayer (in this subsection referred to as the “transferee”) with whom the transferor does not deal at arm’s length,
(b)the transferor is liable because of subsection 160.4(1) or this subsection to pay an amount of the tax of another person (in this subsection referred to as the “debtor”) under this Part, and
(c)it can reasonably be considered that one of the reasons of the transfer would, but for this subsection, be to prevent the enforcement of this section,
the transferee is jointly and severally, or solidarily, liable with the transferor and the debtor to pay an amount of the debtor’s tax under this Part equal to the lesser of the amount of that tax that the transferor was liable to pay at that time and the amount, if any, by which the fair market value of the property at that time exceeds the fair market value at that time of the consideration given for the property, but nothing in this subsection limits the liability of the debtor or the transferor under any provision of this Act or of the transferee for the interest that the transferee is liable to pay under this Act on an assessment in respect of the amount that the transferee is liable to pay because of this subsection.
Marginal note:Assessment
(3)The Minister may at any time assess a person in respect of any amount payable by the person because of this section, and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section, as though it had been made under section 152 in respect of taxes payable under this Part.
Marginal note:Rules applicable
(4)If a corporation and another person have, because of subsection (1) or (2), become jointly and severally, or solidarily, liable in respect of part or all of a liability of the corporation under this Act
(a)a payment by the other person on account of that person’s liability shall to the extent thereof discharge their liability; and
(b)a payment by the corporation on account of the corporation’s liability discharges the other person’s liability only to the extent that the payment operates to reduce the corporation’s liability to an amount less than the amount in respect of which the other person was, by subsection (1) or (2), as the case may be, made jointly and severally, or solidarily, liable.
Marginal note:General
161(1)Where at any time after a taxpayer’s balance-due day for a taxation year
(a)the total of the taxpayer’s taxes payable under this Part and Parts I.3, VI, VI.1 and VI.2 (determined in accordance with subsection 191.5(9)) for the year
exceeds
(b)the total of all amounts each of which is an amount paid at or before that time on account of the taxpayer’s tax payable and applied as at that time by the Minister against the taxpayer’s liability for an amount payable under this Part or Part I.3, VI, VI.1 or VI.2 for the year,
the taxpayer shall pay to the Receiver General interest at the prescribed rate on the excess, computed for the period during which that excess is outstanding.
Marginal note:Interest on instalments
(2)In addition to the interest payable under subsection 161(1), where a taxpayer who is required by this Part to pay a part or instalment of tax has failed to pay all or any part thereof on or before the day on or before which the tax or instalment, as the case may be, 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 to pay interest thereon under subsection 161(1), whichever is earlier.
(2.1)[Repealed, 2003, c. 15, s. 116(1)]
Marginal note:Contra interest
(2.2)Notwithstanding subsections (1) and (2), the total amount of interest payable by a taxpayer (other than a graduated rate estate) under those subsections, for the period that begins on the first day of the taxation year for which a part or instalment of tax is payable and ends on the taxpayer’s balance-due day for the year, in respect of the taxpayer’s tax or instalments of tax payable for the year shall not exceed the amount, if any, by which
(a)the total amount of interest that would be payable for the period by the taxpayer under subsections 161(1) and 161(2) in respect of the taxpayer’s tax and instalments of tax payable for the year if no amount were paid on account of the tax or instalments
exceeds
(b)the amount of interest that would be payable under subsection 164(3) to the taxpayer in respect of the period on the amount that would be refunded to the taxpayer in respect of the year or applied to another liability if
(i)no tax were payable by the taxpayer for the year,
(ii)no amount had been remitted under section 153 to the Receiver General on account of the taxpayer’s tax for the year,
(iii)the rate of interest prescribed for the purpose of subsection 161(1) were prescribed for the purpose of subsection 164(3), and
(iv)the latest of the days described in paragraphs 164(3)(a), 164(3)(b) and 164(3)(c) were the first day of the year.
(3)[Repealed, 1994, c. 7, Sch