Income Tax Act — I-3.3 127.42
Definitions 127.42 (1) The following definitions apply in this section. designated province means a province specified by the Minister of Finance for a calendar year. ( province déterminée ) eligible farming expenses , of a taxpayer for a designated province for a taxation year, means the amount determined by the formula A × B where A is (a) nil, if the total of all amounts deducted in the year by the taxpayer in computing income under this Part from farming activities, excluding any deductions arising from inventory adjustments under section 28 and from transactions with persons that do not deal at arm’s length with the taxpayer, is less than $25,000, and (b) in any other case, the total of all amounts deducted in the year by the taxpayer in computing income under this Part from farming activities, excluding any deductions arising from inventory adjustments under section 28 and from transactions with persons that do not deal at arm’s length with the taxpayer; and B is the taxpayer’s relevant proportion for the designated province for the taxation year. ( dépenses agricoles admissibles ) farming activities means a farming business, including or excluding activities prescribed by regulation. ( activités agricoles ) payment rate , for a calendar year for a designated province, means the rate specified by the Minister of Finance for the calendar year for the designated province. ( taux de paiement ) relevant proportion , of eligible farming expenses of a taxpayer for a designated province for a taxation year, means (a) if the taxpayer is an individual, the proportion determined by the formula A ÷ B where A is the individual’s income for the year from farming activities that is deemed to have been earned in the year in the designated province in accordance with Part XXVI of the Income Tax Regulations , and B is the whole of the individual’s income from farming activities for the year; (b) if the taxpayer is a corporation, the proportion determined by the formula C ÷ D where C is the corporation’s taxable income that is deemed to have been earned in the year in the designated province in accordance with Part IV of the Income Tax Regulations , and D is the whole of the corporation’s taxable income for the year; and (c) if the taxpayer is a partnership, the proportion determined by the formula E ÷ F where E is the partnership’s income for the fiscal period of the partnership from farming activities that would be deemed to have been earned in the year in the designated province, computed in accordance with Part XXVI of the Income Tax Regulations as if the partnership were an individual, and F is the whole of the partnership’s income from farming activities for the fiscal period of the partnership. ( proportion pertinente ) Deemed payment on account of tax (2) A taxpayer (other than a partnership) that files a prescribed form containing prescribed information with their return of income for a taxation year is deemed, on their balance-due day for the year, to have paid on account of their tax payable under this Part for the year, the total of all amounts each of which is an amount, for each designated province and for each calendar year a portion of which falls within the taxation year, determined by the formula (A × B) × (C ÷ D) where A is the payment rate for the calendar year for the designated province; B is the taxpayer’s eligible farming expenses for the designated province for the taxation year; C is the number of days within the taxation year that fall within the calendar year; and D is the number of days in the taxation year. Deemed payment on account of tax — partnership (3) If a taxpayer (other than a partnership) is a member of a partnership at the end of a fiscal period of the partnership that ends in a taxation year of the taxpayer — and the partnership files a prescribed form containing prescribed information for that fiscal period and the taxpayer files a prescribed form containing prescribed information with its return