Income Tax Act — I-3.3 181.1
Tax payable 181.1 (1) Every corporation shall pay a tax under this Part for each taxation year equal to the amount obtained by multiplying the corporation’s specified percentage for the taxation year by the amount, if any, by which (a) its taxable capital employed in Canada for the year exceeds (b) its capital deduction for the year. Specified percentage (1.1) For the purpose of subsection (1), the specified percentage of a corporation for a taxation year that ends after 2003 is the total of (a) that proportion of 0.225% that the number of days in the taxation year that are before 2004 is of the number of days in the taxation year, (b) that proportion of 0.200% that the number of days in the taxation year that are in 2004 is of the number of days in the taxation year, and (c) that proportion of 0.175% that the number of days in the taxation year that are in 2005 is of the number of days in the taxation year. (d) and (e) [Repealed, 2006, c. 4, s. 82] Exceptions (1.2) Notwithstanding subsection (1.1), for the purposes of applying subsection 125(5.1) and the definitions unused surtax credit in subsections (6) and 190.1(5), the amount of tax in respect of a corporation under subsection (1) for a taxation year is to be determined as if the specified percentage of the corporation for the taxation year were 0.225%. Short taxation years (2) Where a taxation year of a corporation is less than 51 weeks, the amount determined under subsection 181.1(1) for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of 365. Where tax not payable (3) No tax is payable under this Part for a taxation year by a corporation (a) that was a non-resident-owned investment corporation throughout the year; (b) that was a bankrupt at the end of the year; (c) that was throughout the year exempt from tax under section 149 on all of its taxable income; (d) that neither was resident in Canada nor carried on business through a permanent establishment in Canada at any time in the year; (e) that was throughout the year a deposit insurance corporation (within the meaning assigned by subsection 137.1(5)) or a corporation deemed by subsection 137.1(5.1) to be a deposit insurance corporation; or (f) that was throughout the year a corporation described in subsection 136(2) the principal business of which was marketing (including processing incidental to or connected therewith) natural products belonging to or acquired from its members or customers. Deduction (4) There may be deducted from a corporation’s tax otherwise payable under this Part for a taxation year an amount equal to the total of (a) its Canadian surtax payable for the year, and (b) such part as the corporation claims of its unused surtax credits for its 7 immediately preceding and 3 immediately following taxation years, to the extent that that total does not exceed the amount by which (c) the amount that would, but for this subsection, be its tax payable under this Part for the year exceeds (d) the total of all amounts each of which is the amount deducted under subsection 125.3(1) in computing the corporation’s tax payable under Part I for a taxation year ending before 1992 in respect of its unused Part I.3 tax credit (within the meaning assigned by section 125.3) for the year. Idem (5) For the purposes of this subsection and subsections 181.1(4), 181.1(6) and 181.1(7), (a) an amount may not be claimed under subsection 181.1(4) in computing a corporation’s tax payable under this Part for a particular taxation year in respect of its unused surtax credit for another taxation year until its unused surtax credits, if any, for taxation years preceding the other year that may be claimed under this Part for the particular year have been claimed; and (b) an amount in respect of a corporation’s unused surtax credit for a taxation year may be claimed under subsection 181.1(4) in computing its tax payable under this Part for another taxation