Income Tax Act — I-3.3 89
fter the particular time there shall be deducted the amount of the corporation’s capital dividend account immediately before the particular time. Capital dividend account of tax-exempt corporation (1.2) Where at any particular time after November 26, 1987 a corporation ceases to be exempt from tax under this Part on its taxable income, in computing the corporation’s capital dividend account at and after the particular time there shall be deducted the amount of the corporation’s capital dividend account (computed without reference to this subsection) immediately after the particular time. Where corporation is beneficiary (2) For the purposes of this section, (a) where a corporation was a beneficiary under a life insurance policy on June 28, 1982, it shall be deemed not to have been a beneficiary under such a policy on or before June 28, 1982 where at any time after December 1, 1982 a prescribed premium has been paid under the policy or there has been a prescribed increase in any benefit on death under the policy; and (b) where a corporation becomes a beneficiary under a life insurance policy by virtue of an amalgamation or a winding-up to which subsection 87(1) or 88(1) applies, it shall be deemed to have been a beneficiary under the policy throughout the period during which its predecessor or subsidiary, as the case may be, was a beneficiary under the policy. Simultaneous dividends (3) Where a dividend becomes payable at the same time on more than one class of shares of the capital stock of a corporation, for the purposes of sections 83, 84 and 88, the dividend on any such class of shares shall be deemed to become payable at a different time than the dividend on the other class or classes of shares and to become payable in the order designated (a) by the corporation on or before the day on or before which its return of income for its taxation year in which such dividends become payable is required to be filed; or (b) in any other case, by the Minister. GRIP addition — becoming CCPC (4) If, in a particular taxation year, a corporation is a Canadian-controlled private corporation or a deposit insurance corporation but was, in its preceding taxation year, a corporation resident in Canada other than a Canadian-controlled private corporation or a deposit insurance corporation, there may be included in computing the corporation’s general rate income pool at the end of the particular taxation year, the amount determined by the formula A + B + C - D - E - F - G - H where A is the total of all amounts each of which is the cost amount to the corporation of a property immediately before the end of its preceding taxation year; B is the amount of any money of the corporation on hand immediately before the end of its preceding taxation year; C is the amount, if any, by which (a) the total of all amounts that, if the corporation had had unlimited income for its preceding taxation year from each business carried on, and from each property held, by it in that preceding taxation year and had realized an unlimited amount of capital gains for that preceding taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that preceding taxation year exceeds (b) the total of all amounts deducted under subsection 111(1) in computing the corporation’s taxable income for that preceding taxation year; D is the total of all amounts each of which is the amount of any debt owing by the corporation, or of any other obligation of the corporation to pay any amount, that was outstanding immediately before the end of its preceding taxation year; E is the paid up capital, immediately before the end of its preceding taxation year, of all of the issued and outstanding shares of the capital stock of the corporation; F is the total of all amounts each of which is a reserve deducted in computing the corporation’s income for its preceding taxation year; G is the corporation’s capital dividend account, if any, immediately before t