Income Tax Act — I-3.3 204.81
04.82(3) by the corporation for 3 or more taxation years; (j) the corporation provides a guarantee that is an eligible investment and fails to maintain, at any time during the term of the guarantee, a reserve equal to the cost to the corporation of the guarantee at that time; (k) the corporation pays a fee or commission in excess of a reasonable amount in respect of the offering for sale, or the sale, of its shares; or (l) the corporation has a monthly deficiency in 18 or more months in any 36-month period. Notice of intent to revoke registration (7) Where the Minister proposes to revoke the registration of a corporation under subsection 204.81(6), the Minister shall, by registered mail, give notice to the corporation of the proposal. Idem (8) Where the Minister gives notice under subsection 204.81(7) to a registered labour-sponsored venture capital corporation, the Minister may, after the expiration of 30 days after the day of mailing of the notice, or after the expiration of such extended period after the day of mailing as the Federal Court of Appeal or a judge thereof, on application made at any time before the determination of any appeal under subsection 204.81(9) from the giving of the notice, may fix or allow, publish a copy of the notice in the Canada Gazette and, on the publication of a copy of the notice, the registration of the corporation is revoked. Voluntary de-registration (8.1) Where at any time the Minister receives a certified copy of a resolution of the directors of a corporation seeking the revocation of the corporation’s registration under this Part, (a) the registration is revoked at that time; and (b) the Minister shall, with all due dispatch, give notice in the Canada Gazette of the revocation. Application of subsection 248(7) (8.2) Subsection 248(7) does not apply for the purpose of subsection (8.1). Transitional rules (8.3) If a registered labour-sponsored venture capital corporation notifies the Minister in writing of its intent to revoke its registration under this Part, the following rules apply: (a) the corporation shall not, on or after the day the notice is provided to the Minister (referred to in this subsection and subsection (8.4) as the “notification date”), issue any tax credit certificates, other than duplicate certificates to replace certificates issued before that day; (b) section 204.841 does not apply on the discontinuance of its venture capital business; (c) subsections 204.82(1) to (4) do not apply to taxation years of the corporation that begin on or after the notification date; and (d) subsection 204.83(1) does not apply in respect of a period, referred to in that subsection as the “second period”, that ends after the notification date. Discontinuance of provincial program (8.4) Subsection (8.3) applies to a corporation only if, (a) on the notification date, the percentage determined in respect of the corporation by the following formula is less than 20 per cent: A/(B – C) × 100 where A is the amount of equity capital received by the corporation on the issue of Class A shares that were issued in the 24 months immediately preceding the notification date and are still outstanding on that date, B is the total amount of equity capital received by the corporation on the issue of Class A shares that are still outstanding on the notification date, and C is the amount of equity capital received by the corporation on the issue of Class A shares that, as of the notification date, have been outstanding for at least eight years. (b) the corporation has revoked its registration before the third anniversary of the notification date. Right of appeal (9) Where the Minister refuses to accept a corporation for registration under subsection 204.81(1) or gives notice of a proposal to revoke the registration of a corporation under subsection 204.81(7), the corporation may appeal to the Federal Court of Appeal from the decision or from the giving of the notice. [NOTE: Application provisions are not inclu