Income Tax Act — I-3.3 194
Corporation to pay tax 194 (1) Every corporation shall pay a tax under this Part for a taxation year equal to 50% of the total of all amounts each of which is an amount designated under subsection 194(4) in respect of a share or debt obligation issued by it in the year or a right granted by it in the year. Definition of Part VIII refund (2) In this Part, the Part VIII refund of a corporation for a taxation year means an amount equal to the lesser of (a) the total of (i) the amount, if any, by which the scientific research and experimental development tax credit of the corporation for the year exceeds the amount, if any, deducted by it under subsection 127.3(1) from its tax otherwise payable under Part I for the year, and (ii) such amount as the corporation may claim, not exceeding 50% of the amount, if any, by which (A) the total of all expenditures made by it after April 19, 1983 and in the year or the immediately preceding taxation year each of which is an expenditure (other than an expenditure prescribed for the purposes of the definition qualified expenditure in subsection 127(9)) claimed under paragraph 37(1)(a) or 37(1)(b) to the extent that the expenditure is specified by the corporation in its return of income under Part I for the year exceeds the total of (B) the total of all expenditures each of which is an expenditure made by it in the immediately preceding taxation year, to the extent that the expenditure was included in determining the total under clause 194(2)(a)(ii)(A) and resulted in (I) a refund to it under this Part for the immediately preceding taxation year, (II) a deduction by it under subsection 37(1) for the immediately preceding taxation year, or (III) a deduction by it under subsection 127(5) for any taxation year, and (C) twice the portion of the total of amounts each of which is an amount deducted by it in computing its income for the year or the immediately preceding taxation year under section 37.1 that can reasonably be considered to relate to expenditures that were included in determining the total under clause 194(2)(a)(ii)(A), and (b) the refundable Part VIII tax on hand of the corporation at the end of the year. Definitions (3) In this Part, debt obligation has the meaning assigned by paragraph (d) of the description of A in the formula found in the definition scientific research and experimental development tax credit in subsection 127.3(2); ( créance ) refundable Part VIII tax on hand of a corporation at the end of a taxation year means the amount, if any, by which (a) the total of the taxes payable by it under this Part for the year and all preceding taxation years exceeds (b) the total of its Part VIII refunds for all preceding taxation years. ( impôt de la partie VIII en main remboursable ) Corporation may designate amount (4) Every taxable Canadian corporation may, by filing a prescribed form with the Minister at any time on or before the last day of the month immediately following a month in which it issued a share or debt obligation or granted a right under a scientific research and experimental development financing contract (other than a share or debt obligation issued or a right granted before October, 1983, or a share in respect of which the corporation has, on or before that day, designated an amount under subsection 192(4)) designate, for the purposes of this Part and Part I, an amount in respect of that share, debt obligation or right not exceeding the amount by which (a) the amount of the consideration for which it was issued or granted, as the case may be, exceeds (b) in the case of a share, the amount of any assistance (other than an amount included in computing the scientific research and experimental development tax credit of a taxpayer in respect of that share) provided, or to be provided by a government, municipality or any other public authority in respect of, or for the acquisition of, that share. Computing paid-up capital after designation (4.1) Where a corporation has