Income Tax Act — I-3.3 127.2
Share-purchase tax credit 127.2 (1) There may be deducted from the tax otherwise payable under this Part by a taxpayer for a taxation year an amount not exceeding the total of (a) the taxpayer’s share-purchase tax credit for the year, and (b) the taxpayer’s unused share-purchase tax credit for the taxation year immediately following the year. Persons exempt from tax (2) Where a taxpayer who was throughout a taxation year a person described in any of paragraphs 149(1)(e) to (y) files with the taxpayer’s return of income under this Part for the year a prescribed form containing prescribed information, the taxpayer shall be deemed to have paid, on the day on which the return is filed, an amount, on account of the taxpayer’s tax under this Part for the year, equal to the taxpayer’s share-purchase tax credit for the year. Trust (3) Where, in a particular taxation year of a taxpayer who is a beneficiary under a trust, an amount is included in computing the share-purchase tax credit of the trust for its taxation year ending in that particular taxation year, the trust may, in its return of income for its taxation year ending in that particular taxation year, designate as attributable to the taxpayer such portion of that amount (a) as may, having regard to all the circumstances (including the terms and conditions of the trust arrangement), reasonably be considered to be attributable to the taxpayer, and (b) as was not designated by the trust in respect of any other beneficiary of that trust, and, where the trust so designates such a portion, an amount equal to that portion shall be (c) added in computing the share-purchase tax credit of the taxpayer for the particular taxation year, and (d) deducted in computing the share-purchase tax credit of the trust for its taxation year ending in the particular taxation year. Exclusion of certain trusts (3.1) For the purposes of subsection 127.2(3), a trust does not include a trust that is (a) governed by an employee benefit plan or a revoked deferred profit sharing plan; or (b) exempt from tax under section 149. Partnership (4) Where, in a taxation year of a taxpayer who is a member of a partnership, an amount is included in computing the share-purchase tax credit of the partnership for its fiscal period ending in that year, such portion of that amount as may reasonably be considered to be the taxpayer’s share thereof shall be (a) added in computing the share-purchase tax credit of the taxpayer for that year; and (b) deducted in computing the share-purchase tax credit of the partnership for that fiscal period. Cooperative corporation (5) Where at any particular time in a taxation year a taxpayer that is a cooperative corporation (within the meaning assigned by subsection 136(2)) has, as required by subsection 135(3), deducted or withheld an amount from a payment made by it to any person pursuant to an allocation in proportion to patronage, the taxpayer may deduct from the amount otherwise required by subsection 135(3) to be remitted to the Receiver General, an amount not exceeding the amount, if any, by which (a) the amount that would, but for this subsection, be its share-purchase tax credit for the taxation year in which it made the payment if that year had ended immediately before the particular time exceeds (b) the total of all amounts each of which is the amount deducted by virtue of this subsection from any amount otherwise required to be remitted by subsection 135(3) in respect of payments made by it before the particular time and in the taxation year, and the amount, if any, so deducted from the amount otherwise required to be remitted by subsection 135(3) shall be (c) deducted in computing the share-purchase tax credit of the taxpayer for the taxation year, and (d) deemed to have been remitted by the taxpayer to the Receiver General on account of tax under this Part of the person to whom that payment was made. Definitions (6) In this section, share-purchase tax credit of a taxpayer for