Income Tax Act — I-3.3 127.4
vidual’s labour-sponsored funds tax credit in respect of an original acquisition in the year or in the first 60 days of the following taxation year of an approved share exceeds (ii) the portion of the total described in subparagraph 127.4(5)(b)(i) that was deducted under subsection 127.4(2) in computing the individual’s tax payable under this Part for the preceding taxation year. Deemed original acquisition (5.1) If the Minister so directs, an original acquisition of an approved share that occurs in an individual’s taxation year (other than in the first 60 days of the year) is deemed for the purpose of this section to have occurred at the beginning of the year and not at the time it actually occurred. Labour-sponsored funds tax credit (6) For the purpose of subsection (5), an individual’s labour-sponsored funds tax credit in respect of an original acquisition of an approved share is equal to the least of (a) 15% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if the share is a share of a prescribed labour-sponsored venture capital corporation (other than a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation), (a.1) 5% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if (i) the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is 2016, and (ii) the share is a share of a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation, (a.2) nil, if (i) the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is after 2016, and (ii) the share is a share of a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation, (b) nil, where the share was issued by a registered labour-sponsored venture capital corporation unless the information return described in paragraph 204.81(6)(c) is filed with the individual’s return of income for the taxation year for which a claim is made under subsection 127.4(2) in respect of the original acquisition of the share (other than a return of income filed under subsection 70(2), paragraph 104(23)(d) or 128(2)(e) or subsection 150(4)), (c) nil, where the individual dies after December 5, 1996 and before the original acquisition of the share, (d) nil, where a payment in respect of the disposition of the share has been made under section 211.9, and (e) nil, if the share is issued in exchange for another share of the corporation. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 127.4; 1994, c. 7, Sch. II, s. 105, Sch. VIII, s. 69, c. 8, s. 17; 1997, c. 25, s. 37; 1999, c. 22, s. 49; 2000, c. 12, s. 142, c. 19, s. 36; 2009, c. 2, s. 42; 2013, c. 34, s. 270, c. 40, s. 59; 2016, c. 7, s. 36