Income Tax Act — I-3.3 89
that amount (or, if an election was made under subsection 93.4(3), to the extent that the amount was determined under paragraph 93.4(3)(c)) (referred to in this subparagraph as the “low RTF amount”) less the amount determined under clause 113(1)(c)(i)(A) in respect of the low RTF amount, exceeds the total of all capital dividends that became payable by the corporation after the commencement of the period and before the particular time; ( compte de dividendes en capital ) designated property means (a) any property of a private corporation that last became a private corporation before November 13, 1981 and that was acquired by it (i) before November 13, 1981, or (ii) after November 12, 1981 pursuant to an agreement in writing entered into on or before that date, (b) any property of a private corporation that was acquired by it from another private corporation with which the private corporation was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b)) at the time the property was acquired, where the property was a designated property of the other private corporation, (c) a share acquired by a private corporation in a transaction to which section 51, subsection 85(1) or section 85.1, 86 or 87 applied in exchange for another share that was a designated property of the corporation, or (d) a replacement property (within the meaning assigned by section 44) for a designated property disposed of by virtue of an event referred to in paragraph (b), (c) or (d) of the definition proceeds of disposition in section 54; ( bien désigné ) eligible dividend means (a) an amount that is equal to the portion of a taxable dividend that is received by a person resident in Canada, paid by a corporation resident in Canada and designated under subsection (14) to be an eligible dividend, and (b) in respect of a person resident in Canada, an amount that is deemed by subsection 96(1.11) or 104(16) to be a taxable dividend that is received by the person; ( dividende déterminé ) excessive eligible dividend designation , made by a corporation in respect of an eligible dividend paid by the corporation at any time in a taxation year, means (a) unless paragraph (c) applies to the dividend, if the corporation is in the taxation year a Canadian-controlled private corporation or a deposit insurance corporation, the amount, if any, determined by the formula (A - B) × C/A where A is the total of all amounts each of which is the amount of an eligible dividend paid by the corporation in the taxation year, B is the greater of nil and the corporation’s general rate income pool at the end of the taxation year, and C is the amount of the eligible dividend, (b) unless paragraph (c) applies to the dividend, if the corporation is not a corporation described in paragraph (a), the amount, if any, determined by the formula A × B/C where A is the lesser of (i) the total of all amounts each of which is an eligible dividend paid by the corporation at that time, and (ii) the corporation’s low rate income pool at that time, B is the amount of the eligible dividend, and C is the amount determined under subparagraph (i) of the description of A, and (c) an amount equal to the amount of the eligible dividend, if it is reasonable to consider that the eligible dividend was paid in a transaction, or as part of a series of transactions, one of the main purposes of which was to artificially maintain or increase the corporation’s general rate income pool, or to artificially maintain or decrease the corporation’s low rate income pool; ( désignation excessive de dividende déterminé ) general rate factor of a corporation for a taxation year is the total of (a) that proportion of 0.68 that the number of days in the taxation year that are before 2010 is of the number of days in the taxation year, (b) that proportion of 0.69 that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year, (c) that proportion of