Income Tax Act — I-3.3 89
Definitions 89 (1) In this Subdivision, adjusted taxable income of a corporation for a taxation year is the amount determined by the formula A – B – C where A is (a) unless paragraph (b) applies, the corporation’s taxable income for the taxation year, and (b) if the corporation is a deposit insurance corporation in the taxation year, nil, B is the amount determined by multiplying the amount, if any, deducted by the corporation under subsection 125(1) for the taxation year by the quotient obtained by dividing 100 by the rate of the deduction provided under that subsection for the taxation year, and C is (a) if the corporation is a Canadian-controlled private corporation in the taxation year, the lesser of the corporation’s aggregate investment income for the taxation year and the corporation’s taxable income for the taxation year, and (b) in any other case, nil; ( revenu imposable rajusté ) Canadian corporation at any time means a corporation that is resident in Canada at that time and was (a) incorporated in Canada, or (b) resident in Canada throughout the period that began on June 18, 1971 and that ends at that time, and for greater certainty, a corporation formed at any particular time by the amalgamation or merger of, or by a plan of arrangement or other corporate reorganization in respect of, 2 or more corporations (otherwise than as a result of the acquisition of property of one corporation by another corporation, pursuant to the purchase of the property by the other corporation or as a result of the distribution of the property to the other corporation on the winding-up of the corporation) is a Canadian corporation because of paragraph (a) only if (c) that reorganization took place under the laws of Canada or a province, and (d) each of those corporations was, immediately before the particular time, a Canadian corporation; ( société canadienne ) capital dividend account of a corporation at any particular time means the amount, if any, by which the total of (a) the amount, if any, by which the total of (i) the total of all amounts each of which is the amount if any, by which (A) the amount of the corporation’s capital gain — computed without reference to subclause 52(3)(a)(ii)(A)(II) and subparagraph 53(1)(b)(ii) — from the disposition (other than a disposition under paragraph 40(3.1)(a) or subsection 40(12) or a disposition that is the making of a gift after December 8, 1997 that is not a gift described in subsection 110.1(1)) of a property in the period beginning at the beginning of its first taxation year that began after the corporation last became a private corporation and that ended after 1971 and ending immediately before the particular time (in this definition referred to as the period ) exceeds the total of (B) the portion of the capital gain referred to in clause (A) that is the corporation’s taxable capital gain, (B.1) the corporation’s taxable capital gain from a disposition in the period under subsection 40(12), and (C) the portion of the amount, if any, by which the amount determined under clause (A) exceeds the amount determined under clause (B) from the disposition by it of a property that can reasonably be regarded as having accrued while the property, or a property for which it was substituted, (I) except in the case of a disposition of a designated property, was a property of a corporation (other than a private corporation, an investment corporation, a mortgage investment corporation or a mutual fund corporation), (II) where, after November 26, 1987, the property became a property of a Canadian-controlled private corporation (otherwise than by reason of a change in the residence of one or more shareholders of the corporation), was a property of a corporation controlled directly or indirectly in any manner whatever by one or more non-resident persons, or (III) where, after November 26, 1987, the property became a property of a private corporation that was not exempt from tax under this Part on its taxabl