Income Tax Act — I-3.3 131
t for the purpose of the definition of capital gains dividend account in subsection (6), is not a capital gains dividend. Application of subsection (5.1) (5.2) Subsection (5.1) applies to a dividend paid by a mutual fund corporation in a taxation year only if more than 5% of the dividend is received by or on behalf of shareholders each of whom is a non-resident person or is a partnership that is not a Canadian partnership. Definitions (6) In this section, capital gains dividend account of a mutual fund corporation at any time means the amount, if any, by which (a) the total of (i) its capital gains, for all taxation years that began more than 60 days before that time, from dispositions of property after 1971 and before that time while it was a mutual fund corporation, and (ii) all amounts each of which is an amount in respect of a distribution made by a trust to the corporation, at a time that is after its 2004 taxation year and at which it is a mutual fund corporation, in respect of capital gains of the trust equal to twice the amount determined by the following formula: A – B where A is the amount of the distribution, and B is the amount designated under subsection 104(21) by the trust in respect of the net taxable capital gains of the trust attributable to those capital gains exceeds (b) the total of (i) its capital losses, for all taxation years that began more than 60 days before that time, from dispositions of property after 1971 and before that time while it was a mutual fund corporation, (ii) all capital gains dividends that became payable by the corporation before that time and more than 60 days after the end of the last taxation year that ended more than 60 days before that time, and (iii) an amount equal to 100/14 of its capital gains refund for any taxation year throughout which it was a mutual fund corporation where the year ended more than 60 days before that time; ( compte de dividendes sur les gains en capital ) capital gains redemptions of a mutual fund corporation for a taxation year means the amount determined by the formula A/B × (C + D) where A is the sum of (a) the total of all amounts paid by the corporation in the year on the redemption of shares of its capital stock, and (b) the total of all amounts each of which is an amount equal to the fair market value of the shares of the corporation’s capital stock that were exchanged in the year for other shares of the corporation’s capital stock if (i) paragraph (4.1) applies to the exchange, and (ii) the amount is not included in the amount determined for paragraph (a), B is the total of the fair market value at the end of the year of all the issued shares of its capital stock and the amount determined for A in respect of the corporation for the year, C is 100/14 of the corporation’s refundable capital gains tax on hand at the end of the year, and D is the amount determined by the formula (K + L) - (M + N) where K is the amount of the fair market value at the end of the year of all the issued shares of the corporation’s capital stock, L is the total of all amounts each of which is the amount of any debt owing by the corporation, or of any other obligation of the corporation to pay an amount, that was outstanding at that time, M is the total of the cost amounts to the corporation at that time of all its properties, and N is the amount of any money of the corporation on hand at that time; ( rachats au titre des gains en capital ) non-qualifying real property [Repealed, 1995, c. 3, s. 41] non-qualifying real property capital gains dividend account [Repealed, 1995, c. 3, s. 41] pro rata portion , of a shareholder at any time, of a mutual fund corporation’s TCP gains balance, in respect of a dividend paid by the mutual fund corporation on a class of shares of its capital stock, means the amount determined by the formula A x B/C where A is the mutual fund corporation’s TCP gains balance immediately before that time, B is the amount received in respect of the dividen