GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Income Tax Act — I-3.3 82
nder this Part for a taxation year that is less than the amount that would be so deductible if no amount were required by subsection (1) to be included in computing the income for the year of the taxpayer’s spouse or common-law partner and the taxpayer so elects in the taxpayer’s return of income for the year under this Part, all amounts described in paragraph (1)(a) or (a.1) received in the year from taxable Canadian corporations by the taxpayer’s spouse or common-law partner are deemed to have been so received by that taxpayer and not by the spouse or common-law partner. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 82; 1998, c. 19, s. 114; 2000, c. 12, s. 142; 2007, c. 2, s. 44; 2008, c. 28, s. 8; 2013, c. 33, s, 5, c. 34, s. 218; 2015, c. 36, s. 4; 2016, c. 7, s. 9; 2018, c. 12, s. 6
Income Tax Act — I-3.3 83
ion that was prescribed to be a tax-deferred preferred series shall be deemed to have been continued in existence in the form of the new shares; and (b) the new corporation shall be deemed to be the same corporation as, and a continuation of, each such predecessor corporation. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1970-71-72, c. 63, s. 1 “83”; 1973-74, c. 14, s. 24; 1974-75-76, c. 26, s. 46; 1976-77, c. 4, s. 32; 1977-78, c. 1, s. 37, c. 32, s. 17; 1980-81-82-83, c. 48, s. 115, c. 140, s. 47; 1985, c. 45, s. 126(F); 1986, c. 6, s. 42; 1988, c. 55, s. 55
Income Tax Act — I-3.3 85
d election shall be deemed to have been made on the day on or before which the election was so required to be made if (c) the election or amended election is made in prescribed form, and (d) an estimate of the penalty in respect of the election or amended election is paid by the taxpayer or partnership, as the case may be, when the election or amended election is made, and where this subsection applies to the amendment of an election, that election shall be deemed not to have been effective. Penalty for late filed election (8) For the purposes of this section, the penalty in respect of an election or an amended election referred to in paragraph 85(7)(a) or 85(7.1)(c) is an amount equal to the lesser of (a) 1/4 of 1% of the amount, if any, by which (i) the fair market value of the property in respect of which that election or amended election was made, at the time the property was disposed of, exceeds (ii) the amount agreed on in the election or amended election by the taxpayer or partnership, as the case may be, and the corporation, for each month or part of a month during the period commencing with the day on or before which the election is required by subsection 85(6) to be made and ending on the day the election or amended election is made, and (b) an amount, not exceeding $8,000, equal to the product obtained by multiplying $100 by the number of months each of which is a month all or part of which is during the period referred to in paragraph 85(8)(a). Unpaid balance of penalty (9) The Minister shall, with all due dispatch, examine each election and amended election referred to in paragraph 85(7)(a) or 85(7.1)(c), assess the penalty payable and send a notice of assessment to the taxpayer or partnership, as the case may be, and the taxpayer or partnership, as the case may be, shall pay forthwith to the Receiver General the amount, if any, by which the penalty so assessed exceeds the total of all amounts previously paid on account of that penalty. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 85; 1994, c. 7, Sch. II, s. 64, Sch. VIII, s. 35, c. 21, s. 36; 1995, c. 3, s. 22, c. 21, ss. 28, 53; 1997, c. 25, s. 17; 1998, c. 19, s. 116; 2001, c. 17, s. 62; 2002, c. 9, s. 29; 2007, c. 2, s. 13, c. 35, s. 22; 2010, c. 12, s. 6; 2013, c. 34, ss. 120, 220; 2016, c. 12, s. 26; 2017, c. 33, s. 23 2019, c. 29, s. 10
Income Tax Act — I-3.3 (a)
particular person , in respect of a taxpayer at any time, means a person that is at that time (a) resident in Canada and not dealing at arm’s length with the taxpayer; (b) a successor corporation of the taxpayer; or (c) resident in Canada and not dealing at arm’s length with a person described in paragraph (a) or (b). ( personne déterminée )
Income Tax Act — I-3.3 (a)
successor corporation of a particular corporation means (a) a corporation of which the particular corporation is a predecessor corporation (within the meaning of subsection 87(1)); (b) a corporation into which the particular corporation was wound-up in a winding-up to which subsection 88(1) applied; or (c) a successor corporation of a successor corporation of the particular corporation. ( société remplaçante )
Income Tax Act — I-3.3 86
 particular class of shares of the capital stock of the corporation at any particular time that is the time of, or any time after, the exchange, (a) there shall be deducted the amount determined by the formula (A - B) × C/A where A is the total of all amounts each of which is the increase, if any, as a result of the exchange, in the paid-up capital in respect of a class of shares of the capital stock of the corporation, computed without reference to this subsection as it applies to the exchange, B is the amount, if any, by which the paid-up capital in respect of the old shares exceeds the fair market value of the consideration (other than shares of the capital stock of the corporation) given by the corporation for the old shares on the exchange, and C is the increase, if any, as a result of the exchange, in the paid-up capital in respect of the particular class of shares, computed without reference to this subsection as it applies to the exchange; and (b) there shall be added an amount equal to the lesser of (i) the amount, if any, by which (A) the total of all amounts deemed by subsection 84(3), 84(4) or 84(4.1) to be a dividend on shares of that class paid by the corporation before the particular time exceeds (B) the total that would be determined under clause 86(2.1)(b)(i)(A) if this Act were read without reference to paragraph 86(2.1)(a), and (ii) the total of all amounts required by paragraph 86(2.1)(a) to be deducted in respect of that particular class of shares before the particular time. Application (3) Subsections 86(1) and 86(2) do not apply in any case where subsection 85(1) or 85(2) applies. Computation of adjusted cost base (4) Where a taxpayer has disposed of old shares in circumstances described in subsection 86(1), (a) there shall be deducted after the disposition in computing the adjusted cost base to the taxpayer of each new share the amount determined by the formula A × B/C where A is the amount, if any, by which (i) the total of all amounts deducted under paragraph 53(2)(g.1) in computing the adjusted cost base to the taxpayer of the old shares immediately before the disposition exceeds (ii) the amount that would be the taxpayer’s capital gain for the taxation year that includes the time of the disposition from the disposition of the old shares if paragraph 40(1)(a) were read without reference to subparagraph (iii) of that paragraph, B is the fair market value of the new share at the time it was acquired by the taxpayer in consideration for the disposition of the old shares, and C is the total of all amounts each of which is the fair market value of a new share at the time it was acquired by the taxpayer in consideration for the disposition of the old shares; and (b) the amount determined under paragraph 86(4)(a) in respect of the acquisition shall be added in computing the adjusted cost base to the taxpayer of the new share after the disposition. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 86; 1994, c. 21, s. 38; 1995, c. 21, s. 29
Income Tax Act — I-3.3 87
 s. 37, c. 8, s. 9, c. 21, s. 39; 1995, c. 3, s. 23, c. 21, ss. 30, 54; 1996, c. 21, s. 15; 1997, c. 25, s. 18, c. 26, s. 83; 1998, c. 19, s. 15, 117; 1999, c. 22, s. 24; 2000, c. 19, s. 13; 2001, c. 17, ss. 65, 211; 2002, c. 9, s. 30; 2006, c. 4, s. 55; 2007, c. 2, s. 45, c. 35, ss. 68, 108; 2008, c. 28, s. 9; 2009, c. 2, s. 19; 2010, c. 12, s. 8, c. 25, s. 15; 2012, c. 31, s. 17; 2013, c. 33, s. 6, c. 34, ss. 6, 64, 223, c. 40, s. 39; 2014, c. 39, s. 19; 2016, c. 12, s. 27; 2017, c. 33, s. 24; 2018, c. 12, s. 7 2019, c. 29, s. 11 2020, c. 11, s. 1 2020, c. 13, s. 1 2021, c. 23, s. 13 2022, c. 5, s. 2 2022, c. 19, s. 11 2023, c. 26, s. 17 2024, c. 15, s. 18 2024, c. 17, s. 18 2024, c. 17, s. 80 2026, c. 3, s. 23
Income Tax Act — I-3.3 88
nditions for subsection (3.3) election (3.4) An election under subsection (3.3) in respect of distributed property disposed of in the course of the liquidation and dissolution is not valid unless (a) the claimed amount in respect of each distributed property does not exceed the amount that would, in the absence of subsection (3.3), be determined under paragraph (3)(a) in respect of the distributed property; and (b) the amount determined by the following formula does not exceed the total of all amounts each of which is the capital gain amount in respect of a disposed share: A – B where A is the total of all amounts that would, in the absence of subsection (3.3), be determined under paragraph (3)(a) to be the proceeds of disposition of a distributed property in respect of which an election under subsection (3.3) is made by the taxpayer, and B is the total of all amounts each of which is the claimed amount in respect of a distributed property referred to in the description of A. Taxable Canadian property (3.5) For the purposes of paragraph (3)(a), the distributed property is deemed to have been disposed of by the disposing affiliate to the taxpayer for proceeds of disposition equal to the adjusted cost base of the distributed property to the disposing affiliate immediately before the time of its disposition, if (a) the liquidation and dissolution is a qualifying liquidation and dissolution of the disposing affiliate; (b) the distributed property is, at the time of its disposition, taxable Canadian property (other than treaty-protected property) of the disposing affiliate that is a share of the capital stock of a corporation resident in Canada; and (c) the taxpayer and the disposing affiliate have jointly elected in accordance with prescribed rules. Amalgamation deemed not to be acquisition of control (4) For the purposes of paragraphs (1)(c), (c.2), (d) and (d.2) and, for greater certainty, paragraphs (c.3) to (c.8) and (d.3), (a) subject to paragraph 88(4)(c), control of any corporation shall be deemed not to have been acquired because of an amalgamation; (b) any corporation formed as a result of an amalgamation shall be deemed to be the same corporation as, and a continuation of, each predecessor corporation; and (c) in the case of an amalgamation described in subsection 87(9), control of a predecessor corporation that was not controlled by the parent before the amalgamation shall be deemed to have been acquired by the parent immediately before the amalgamation. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 88; 1994, c. 7, Sch. II, s. 66, Sch. VI, s. 4, Sch. VIII, s. 38, c. 8, s. 10, c. 21, s. 40; 1995, c. 3, s. 24, c. 21, ss. 31, 55; 1996, c. 21, s. 16; 1997, c. 25, s. 19; 1998, c. 19, ss. 16, 118; 2001, c. 17, s. 66; 2002, c. 9, s. 31; 2007, c. 2, s. 46; 2009, c. 2, s. 20; 2012, c. 31, s. 18; 2013, c. 34, ss. 30, 65, 224, c. 40, s. 40; 2016, c. 12, s. 28; 2017, c. 33, s. 25 2019, c. 29, s. 12 2022, c. 19, s. 12 2024, c. 15, s. 19 2024, c. 17, s. 19 2024, c. 17, s. 80 2026, c. 3, s. 24
Income Tax Act — I-3.3 88.1
Application 88.1 (1) Subsection (2) applies to a trust’s distribution of property to a taxpayer if (a) the distribution is a SIFT trust wind-up event; (b) the trust is (i) a SIFT wind-up entity whose only beneficiary, at all times at which the trust makes a distribution that is a SIFT trust wind-up event, is a taxable Canadian corporation, or (ii) a trust whose only beneficiary, at all times at which the trust makes a distribution that is a SIFT trust wind-up event, is another trust described by subparagraph (i); (c) where the trust is a SIFT wind-up entity, the distribution occurs no more than 60 days after the earlier of (i) the first SIFT trust wind-up event of the trust, and (ii) the first distribution to the trust that is a SIFT trust wind-up event of another trust; and (d) if the property is shares of the capital stock of a taxable Canadian corporation, (i) the property was not acquired by the trust on a distribution to which subsection 107(3.1) applies, and (ii) the trust elects in writing, filed with the Minister on or before the trust’s filing-due date for its taxation year that includes the time of the distribution, that this section apply to the distribution. SIFT trust wind-up event (2) If this subsection applies to a trust’s distribution of property to a taxpayer, subsections 88(1) to (1.7), and section 87 and paragraphs 256(7)(a) to (e) as they apply for the purposes of those subsections, apply, with any modifications that the circumstances require, as if (a) the trust were a taxable Canadian corporation (in this subsection referred to as the “subsidiary”) that is not a private corporation; (b) where the taxpayer is a SIFT wind-up entity, the taxpayer were a taxable Canadian corporation that is not a private corporation; (c) the distribution were a winding-up of the subsidiary; (d) the taxpayer’s interest as a beneficiary under the trust were shares of a single class of shares of the capital stock of the subsidiary owned by the taxpayer; (e) paragraph 88(1)(b) deemed the taxpayer’s proceeds of disposition of the shares described in paragraph (d) and owned by the taxpayer immediately before the distribution to be equal to the adjusted cost base to the taxpayer of the taxpayer’s interest as a beneficiary under the trust immediately before the distribution; (f) each trust, a majority-interest beneficiary (in this subsection, within the meaning assigned by section 251.1) of which is another trust that is by operation of this subsection treated as if it were a corporation, were a corporation; and (g) except for the purposes of subsections 88(1.1) and (1.2), the taxpayer last acquired control of the subsidiary and of each corporation (including a trust that is by operation of this subsection treated as if it were a corporation) controlled by the subsidiary at the time, if any, at which the taxpayer last became a majority-interest beneficiary of the trust. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 88.1; 1994, c. 21, s. 41; 2009, c. 2, s. 21
Income Tax Act — I-3.3 89
in writing to the subsequent election or the subsequent revocation, as the case may be; and (b) the corporation complies with any conditions imposed by the Minister. Dividend designation (14) A corporation designates a portion of a dividend it pays at any time to be an eligible dividend by notifying in writing at that time each person or partnership to whom the dividend is paid that the portion of the dividend is an eligible dividend. Late designation (14.1) If, in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit a designation under subsection (14) to be made before the day that is three years after the day on which the designation was required to be made, the designation is deemed to have been made at the time the designation was required to be made. Late designation — transitional ERDTOH (14.2) If, as a consequence of the application of subparagraph (a)(iii) of the definition eligible refundable dividend tax on hand in subsection 129(4), in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit a designation under subsection (14) to be made before the day that is six years after the day on which the designation was required to be made, the designation is deemed to have been made at the time the designation was required to be made. Meaning of expression deposit insurance corporation (15) For the purposes of paragraphs 87(2)(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)(e.2)), the definitions excessive eligible dividend designation , general rate income pool , and low rate income pool in subsection (1) and subsections (4) to (6) and (8) to (10), a corporation is a deposit insurance corporation if it would be a deposit insurance corporation as defined in the definition deposit insurance corporation in subsection 137.1(5) were that definition read without reference to its paragraph (b) and were this Act read without reference to subsection 137.1(5.1). [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 89; 1994, c. 7, Sch. II, s. 67, c. 21, s. 42; 1998, c. 19, ss. 17, 119; 2000, c. 19, s. 14; 2001, c. 17, s. 67; 2007, c. 2, s. 47, c. 29, s. 6, c. 35, s. 23; 2009, c. 2, s. 22; 2011, c. 24, s. 19; 2012, c. 19, s. 4, c. 31, s. 19; 2013, c. 34, s. 225, c. 40, s. 41; 2016, c. 7, s. 10, c. 12, s. 29; 2017, c. 20, s. 7, c. 33, s. 26 2024, c. 15, s. 20 2024, c. 17, s. 20 2026, c. 3, s. 25
Income Tax Act — I-3.3 (a)
adjusted taxable income of a corporation for a taxation year is the amount determined by the formula A – B – C where A is (a) unless paragraph (b) applies, the corporation’s taxable income for the taxation year, and (b) if the corporation is a deposit insurance corporation in the taxation year, nil, B is the amount determined by multiplying the amount, if any, deducted by the corporation under subsection 125(1) for the taxation year by the quotient obtained by dividing 100 by the rate of the deduction provided under that subsection for the taxation year, and C is (a) if the corporation is a Canadian-controlled private corporation in the taxation year, the lesser of the corporation’s aggregate investment income for the taxation year and the corporation’s taxable income for the taxation year, and (b) in any other case, nil; ( revenu imposable rajusté )
Income Tax Act — I-3.3 (a)
Canadian corporation at any time means a corporation that is resident in Canada at that time and was (a) incorporated in Canada, or (b) resident in Canada throughout the period that began on June 18, 1971 and that ends at that time, and for greater certainty, a corporation formed at any particular time by the amalgamation or merger of, or by a plan of arrangement or other corporate reorganization in respect of, 2 or more corporations (otherwise than as a result of the acquisition of property of one corporation by another corporation, pursuant to the purchase of the property by the other corporation or as a result of the distribution of the property to the other corporation on the winding-up of the corporation) is a Canadian corporation because of paragraph (a) only if (c) that reorganization took place under the laws of Canada or a province, and (d) each of those corporations was, immediately before the particular time, a Canadian corporation; ( société canadienne )
Income Tax Act — I-3.3 (a)
ection 104(21.4), as it read in its application to the corporation’s last taxation year that began before November 2011, applied) in respect of the net taxable capital gains of the trust attributable to those capital gains, and (ii) the amount determined by the formula A × B where A is the fraction or whole number determined when 1 is subtracted from the reciprocal of the fraction under paragraph 38(a) applicable to the trust for the year, and B is the amount referred to in clause (i) (B), (g) all amounts each of which is an amount in respect of a distribution made by a trust to the corporation in the period in respect of a dividend (other than a taxable dividend) paid on a share of the capital stock of another corporation resident in Canada to the trust during a taxation year of the trust throughout which the trust was resident in Canada equal to the lesser of (i) the amount of the distribution, and (ii) the amount designated under subsection 104(20) by the trust in respect of the corporation in respect of that dividend, and (h) the total of all amounts each of which is, if the corporation was a Canadian-controlled private corporation throughout the year or a substantive CCPC at any time in the year, (i) an amount deductible under paragraph 113(1)(a.1) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate less the amount determined under sub-subclause 113(1)(a.1)(ii)(A)(II)1 in respect of the dividend, and (ii) the total of the amounts deductible under paragraphs 113(1)(b) and (c) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate if no election was made by the corporation for the particular taxation year under subsection 93.4(3) with respect to that amount (or, if an election was made under subsection 93.4(3), to the extent that the amount was determined under paragraph 93.4(3)(c)) (referred to in this subparagraph as the “low RTF amount”) less the amount determined under clause 113(1)(c)(i)(A) in respect of the low RTF amount, exceeds the total of all capital dividends that became payable by the corporation after the commencement of the period and before the particular time; ( compte de dividendes en capital )
Income Tax Act — I-3.3 (a)
designated property means (a) any property of a private corporation that last became a private corporation before November 13, 1981 and that was acquired by it (i) before November 13, 1981, or (ii) after November 12, 1981 pursuant to an agreement in writing entered into on or before that date, (b) any property of a private corporation that was acquired by it from another private corporation with which the private corporation was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b)) at the time the property was acquired, where the property was a designated property of the other private corporation, (c) a share acquired by a private corporation in a transaction to which section 51, subsection 85(1) or section 85.1, 86 or 87 applied in exchange for another share that was a designated property of the corporation, or (d) a replacement property (within the meaning assigned by section 44) for a designated property disposed of by virtue of an event referred to in paragraph (b), (c) or (d) of the definition proceeds of disposition in section 54; ( bien désigné )
Income Tax Act — I-3.3 (a)
eligible dividend means (a) an amount that is equal to the portion of a taxable dividend that is received by a person resident in Canada, paid by a corporation resident in Canada and designated under subsection (14) to be an eligible dividend, and (b) in respect of a person resident in Canada, an amount that is deemed by subsection 96(1.11) or 104(16) to be a taxable dividend that is received by the person; ( dividende déterminé )