Income Tax Act — I-3.3 131
al stock, means the amount determined by the formula A x B/C where A is the mutual fund corporation’s TCP gains balance immediately before that time, B is the amount received in respect of the dividend by the shareholder, and C is the total amount of the dividend; ( partie proportionnelle ) refundable capital gains tax on hand of a mutual fund corporation at the end of a taxation year means the amount determined by the formula A - B where A is the total of all amounts each of which is an amount in respect of that or any previous taxation year throughout which the corporation was a mutual fund corporation, equal to the least of (a) 28% of its taxable income for the year, (b) 28% of its taxed capital gains for the year, and (c) the tax payable by it under this Part for the year determined without reference to section 123.2, and B is the total of all amounts each of which is an amount in respect of any previous taxation year throughout which the corporation was a mutual fund corporation, equal to its capital gains refund for the year; ( impôt en main remboursable au titre des gains en capital ) TCP gains balance , of a mutual fund corporation at any time, means the amount, if any, by which (a) the total of (i) the mutual fund corporation’s capital gains from dispositions, after March 22, 2004 and at or before that time, of taxable Canadian properties, and (ii) the TCP gains distributions (including those defined in section 132) received by the mutual fund corporation at or before that time exceeds (b) the total of (i) the mutual fund corporation’s capital losses from dispositions, after March 22, 2004 and at or before that time, of taxable Canadian properties, and (ii) the total of all amounts deemed, in respect of dividends paid by the mutual fund corporation before that time, to be TCP gains distributions received by shareholders from the mutual fund corporation; ( solde des gains provenant de BCI ) TCP gains distribution means a TCP gains distribution described in subsection (5.1). ( distribution de gains provenant de BCI ) Definition of taxed capital gains (7) In subsection 131(6), taxed capital gains of a taxpayer for a taxation year has the meaning assigned by subsection 130(3). Meaning of mutual fund corporation (8) Subject to subsections (8.1) to (8.3), a corporation is, for the purposes of this section, a mutual fund corporation at any time in a taxation year if, at that time, it was a prescribed labour-sponsored venture capital corporation or (a) it was a Canadian corporation that was a public corporation; (b) its only undertaking was (i) the investing of its funds in property (other than real property or an interest in real property or an immovable or a real right in an immovable), (ii) the acquiring, holding, maintaining, improving, leasing or managing of any real property (or interest in real property) or of any immovable (or real right in immovables) that is capital property of the corporation, or (iii) any combination of the activities described in subparagraphs 131(8)(b)(i) and 131(8)(b)(ii), and (c) the issued shares of the capital stock of the corporation included shares (i) having conditions attached thereto that included conditions requiring the corporation to accept, at the demand of the holder thereof and at prices determined and payable in accordance with the conditions, the surrender of the shares, or fractions or parts thereof, that are fully paid, or (ii) qualified in accordance with prescribed conditions relating to the redemption of the shares, and the fair market value of such of the issued shares of its capital stock as had conditions attached thereto that included such conditions or as were so qualified, as the case may be, was not less than 95% of the fair market value of all of the issued shares of the capital stock of the corporation (such fair market values being determined without regard to any voting rights attaching to shares of the capital stock of the corporation). Election to be a mutual f