41.1 (1) Every corporation that has claimed a deduction under subsection 41 (1) for a taxation year shall pay, in addition to the amount of tax otherwise payable for the taxation year under this Part, a surtax equal to the lesser of, (a) the amount claimed as a deduction by the corporation under subsection 41 (1) for the taxation year; or (b) the amount calculated using the formula, A × B × C/D in which, “A” is the specified rate of the corporation for the taxation year, as determined under subsection (3), “B” is the amount, if any, by which “X” plus “Y” exceeds “Z”, where “X” is the taxable income of the corporation for the taxation year, “Y” is the taxable income of each corporation (“associated corporation”) with which the corporation was associated at any time during the taxation year, for the last taxation year of the associated corporation that ended on or before the last day of the taxation year of the corporation, and “Z” is the total of the amounts described in clauses 41 (3.2) (a) to (f), “C” is the amount determined by the corporation for the taxation year under subsection 41 (2), and “D” is the total of the amounts described in clauses 41 (3.2) (a) to (f). 1992, c. 3, s. 9; 1994, c. 14, s. 15 (1); 2000, c. 10, s. 5 (1); 2003, c. 7, s. 4 (1, 2); 2004, c. 16, s. 2 (2); 2009, c. 18, Sched. 9, s. 2. Rules for short taxation years and associated corporations (2) The following rules apply in computing a corporation’s surtax for a taxation year under subsection (1): 1. If the taxation year of the corporation is less than fifty-one weeks, the taxable income of the corporation for the taxation year shall be deemed to be the amount of its taxable income as otherwise determined, multiplied by the ratio of 365 to the number of days in the taxation year. 2. If the taxation year of a corporation (called in this subsection the “associated corporation”) that was associated with the corporation during the corporation’s taxation year is less than fifty-one weeks and is the only taxation year of the associated corporation ending in the corporation’s taxation year, the taxable income of the associated corporation for that taxation year shall be deemed to be the amount of its taxable income as otherwise determined for that taxation year, multiplied by the ratio of 365 to the number of days in the taxation year. 3. If the associated corporation has two or more taxation years ending in the corporation’s taxation year, the taxable income of the associated corporation for the last taxation year ending on or before the last day of the corporation’s taxation year is deemed to be the aggregate of all amounts, each of which is the taxable income of the associated corporation for each taxation year which ended in the corporation’s taxation year and during which the associated corporation was at any time associated with the corporation, multiplied by the ratio of 365 to the total number of days in all of those taxation years.  1992, c. 3, s. 9; 1994, c. 14, s. 15 (2); 2004, c. 16, s. 2 (2). Specified rate (3) For the purposes of this section, the specified rate of a corporation for a taxation year ending after May 4, 1998 is the total of, (a) 4 per cent multiplied by the ratio of the number of days in the taxation year that are after April 30, 1992 and before May 5, 1998 to the total number of days in the taxation year; (b) 4.33 per cent multiplied by the ratio of the number of days in the taxation year that are after May 4, 1998 and before January 1, 1999 to the total number of days in the taxation year; (c) 4.67 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 1998 and before January 1, 2000 to the total number of days in the taxation year; (d) 5 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 1999 and before October 1, 2001 to the total number of days in the taxation year; (e) 4.333 per cent multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003 to the total number of days in the taxation year; (f) 4.667 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2002 and before January 1, 2007 to the total number of days in the taxation year; and (g) 4.25 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year. (h)  Repealed:  2003, c. 7, s. 4 (3). (i)  Repealed:  2003, c. 7, s. 4 (4). 2000, c. 10, s. 5 (2); 2001, c. 8, s. 22 (1); 2001, c. 23, s. 33 (1-3); 2002, c. 22, s. 43; 2003, c. 7, s. 4 (3, 4); 2004, c. 16, s. 2 (2); 2008, c. 7, Sched. E, s. 3. Transitional (4) The amount of a corporation’s surtax under this section for a taxation year that commences before January 1, 1992 and ends after December 31, 1991 shall be that proportion of the amount otherwise determined for the taxation year under subsection (1) that the number of days in the taxation year after December 31, 1991 is of the total number of days in the taxation year.  1994, c. 14, s. 15 (3); 2004, c. 16, s. 2 (2). Taxable income determination (5) For the purposes of this section, the taxable income of a corporation that is subject to tax under subsection 2 (2) or that is not subject to tax under this Act shall be determined as if the corporation were a corporation described in and taxable under subsection 2 (1).  1994, c. 14, s. 15 (4); 2004, c. 16, s. 2 (2). Associated corporations (6) Where two corporations would, but for the provisions of subsection 256 (2) of the Income Tax Act (Canada), not be associated with each other at any time, but are each associated with, or are deemed to be associated with, a third corporation at a particular time, the corporations shall be deemed for the purposes of this section to be associated with each other at the particular time, unless, (a) the third corporation is not a Canadian-controlled private corporation at the particular time; or (b) the third corporation elects under subsection 256 (2) of the Income Tax Act (Canada) not to be associated with either of the two corporations for its taxation year that includes the particular time.  1994, c. 14, s. 15 (4); 2004, c. 16, s. 2 (2). (7) Repealed:  2001, c. 23, s. 33 (4). (8) Repealed:  2001, c. 23, s. 33 (5). Section Amendments with date in force (d/m/y) 1992, c. 3, s. 9 - 25/06/1992; 1994, c. 14, s. 15 (1-4) - 25/06/1992; 1998, c. 5, s. 11 - 05/05/1998 2000, c. 10, s. 5 (1, 2)
- 02/05/2000 2001, c. 8, s. 22 (1, 2) - no effect - see 2001, c. 23, s. 33 (3, 5) - 01/10/2001; 2001, c. 23, s. 33 (1-5)
- 01/10/2001 2002, c. 22, s. 43
- 09/12/2002 2003, c. 7, s. 4 (1-4)
- 01/01/2004 2004, c. 16, s. 2 (2)
- 01/01/2004 2008, c. 7, Sched. E, s. 3 - 01/01/2007 2009, c. 18, Sched. 9, s. 2 (1, 2) - 01/01/2007