43.1 (1) In this section, “amalgamated corporation” means a corporation that is a “new corporation” for the purposes of section 87 of the Income Tax Act (Canada); (“société issue de la fusion”) “parent corporation” means a corporation that is a “parent” under subsection 88 (1) of the Income Tax Act (Canada); (“société mère”) “predecessor corporation” means a corporation that is a predecessor corporation referred to in section 87 of the Income Tax Act (Canada) and includes a corporation that was a predecessor corporation of a predecessor corporation; (“société remplacée”) “subsidiary corporation” means a corporation that is a “subsidiary” under subsection 88 (1) of the Income Tax Act (Canada). (“filiale”)  1994, c. 14, s. 17 (1); 2004, c. 16, s. 2 (2). Corporate minimum tax credit (2) There may be deducted from tax otherwise payable under this Part by a corporation for a taxation year an amount in respect of corporate minimum tax payable by the corporation for a prior taxation year under Part II.1 equal to, (a) in the case of a corporation that is not a life insurance corporation, the lesser of, (i) the amount of the corporation’s corporate minimum tax account for the taxation year, or (ii) the amount by which, (A) the tax payable by the corporation under this Part for the taxation year, after all other deductions from tax to which the corporation is entitled under this Part, exceeds, (B) the amount, if any, by which the corporation’s corporate minimum tax for the taxation year, if any, determined under Part II.1, before any deduction permitted under subsection 57.3 (2), exceeds the amount of the corporation’s foreign tax credit under Part II.1 for the taxation year; or (b) in the case of a life insurance corporation, the lesser of, (i) the amount of the corporation’s corporate minimum tax account for the taxation year, or (ii) the amount by which the tax payable by the corporation under this Part for the taxation year, after all other deductions from tax to which the corporation is entitled under this Part, exceeds the greater of, (A) the corporation’s corporate minimum tax for the taxation year determined under Part II.1, before any deduction permitted under subsection 57.3 (2), or (B) the amount that would be determined in respect of the corporation for the taxation year under clause 74.1 (1) (a).  1994, c. 14, s. 17 (1); 2004, c. 16, s. 2 (2). Corporate minimum tax account, taxation years ending before March 23, 2007 (3) The amount of a corporation’s corporate minimum tax account for a taxation year ending before March 23, 2007 is, (a) in the case of a corporation that is not a life insurance corporation, the amount of corporate minimum tax payable by the corporation under Part II.1 for the ten taxation years immediately before the taxation year that has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a prior taxation year; or (b) in the case of a life insurance corporation, the total of the amounts determined in respect of each of the ten taxation years immediately before the taxation year, to the extent that the amount has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a prior taxation year, equal to the amount by which the corporation’s corporate minimum tax for that previous taxation year determined under Part II.1, before any deduction permitted under subsection 57.3 (2), exceeds the greater of, (i) the amount that would be determined in respect of the corporation for that taxation year under clause 74.1 (1) (a), or (ii) the tax payable under this Part for that taxation year after all deductions from tax to which the corporation is entitled for that year, other than a deduction permitted under this section.  1994, c. 14, s. 17 (1); 2004, c. 16, s. 2 (2); 2007, c. 7, Sched. 6, s. 2 (1). Corporate minimum tax account, taxation years ending after March 22, 2007 (3.1) The amount of a corporation’s corporate minimum tax account for a taxation year ending after March 22, 2007 is determined as follows: 1. If the corporation is not a life insurance corporation, the amount of the corporation’s corporate minimum tax account for the year is the sum of all amounts each of which is, i. the amount of corporate minimum tax payable by the corporation under Part II.1 for a previous taxation year that ends before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, to the extent the tax has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year, or ii. the amount of corporate minimum tax payable by the corporation under Part II.1 for a previous taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, to the extent the tax has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year. 2. If the corporation is a life insurance corporation, the amount of the corporation’s corporate minimum tax account for the year is the sum of all amounts each of which is, i. the amount determined under subsection (3.2) in respect of a previous taxation year that ends before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, to the extent the amount has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year, or ii. the amount determined under subsection (3.2) in respect of a previous taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, to the extent that the amount has not been deducted under this section in determining the amount of tax payable under this Part by the corporation for a previous taxation year.  2007, c. 7, Sched. 6, s. 2 (2). Same (3.2) For the purposes of subparagraphs 2 i and ii of subsection (3.1), the amount determined in respect of a previous taxation year is the amount by which the corporation’s corporate minimum tax for that year, as determined under Part II.1 before any deduction permitted under subsection 57.3 (2), exceeds the greater of, (a) the amount that would be determined in respect of the corporation under clause 74.1 (1) (a) for that year; and (b) the amount of tax payable under this Part for that year after all deductions from tax to which the corporation is entitled for that year, other than a deduction permitted under this section.  2007, c. 7, Sched. 6, s. 2 (2). Same (4) The following rules apply in determining the amount of a corporation’s corporate minimum tax account for a taxation year: 1. Tax payable under Part II.1 for a particular taxation year that is otherwise included in the account is deductible before any tax payable under Part II.1 for later years. 2. If there has been an amalgamation of corporations to which section 87 of the Income Tax Act (Canada) applies, the amalgamated corporation shall be deemed to be the same corporation as and a continuation of each predecessor corporation for the purposes of determining an amount of tax under Part II.1 deducted under this section or payable by the amalgamated corporation for a prior taxation year. 3. If the rules in subsection 88 (1) of the Income Tax Act (Canada) applied to the winding-up of a subsidiary corporation, its parent corporation shall be deemed to be the same corporation as and a continuation of the subsidiary corporation for the purposes of determining an amount of tax under Part II.1 deducted under this section or payable by the parent corporation for a prior taxation year. 4. If the conditions described in paragraphs 142.7 (12) (a) and (b) of the Income Tax Act (Canada) apply in respect of the winding up of a Canadian affiliate of an entrant bank (within the meaning of subsection 142.7 (1) of that Act) or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order (within the meaning of subsection 142.7 (12) of that Act), the entrant bank shall be deemed to be the same corporation as, and a continuation of, the Canadian affiliate for the purposes of determining an amount of tax under Part II.1 that was deducted under this section or was payable by the entrant bank for a prior taxation year. 5. Paragraph 4 does not apply unless, i. before the later of the date determined under paragraph 142.7 (11) (b) of the Income Tax Act
(Canada) and the day that is 180 days after the day the Budget Measures Act (Fall), 2004 receives Royal Assent, A. the entrant bank and the Canadian affiliate jointly elect that paragraph 4 applies, if the Canadian affiliate has not been wound up or dissolved before the election is made, or B. the entrant bank elects that paragraph 4 applies, if the Canadian affiliate has been wound up or dissolved and has ceased to exist before the election is made, or ii. the entrant bank and the Canadian affiliate have jointly elected under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) to have section 142.7 of that Act apply. 6. Paragraph 4 applies only to, i. taxation years for which an election by the affiliate and bank under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) applies or to which section 142.7 of the Income Tax Act (Canada) would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act, and ii. preceding taxation years in which a credit under this section was earned.  1994, c. 14, s. 17 (1); 2002, c. 22, s. 45; 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 17. Acquisition of control (5) If at any time control of a corporation has been acquired by a person or group of persons, no amount in respect of its tax payable under Part II.1 for a taxation year ending before that time is deductible by the corporation for a taxation year ending after that time, except that where a business was carried on by the corporation in a taxation year ending before that time, an amount in respect of its tax payable under Part II.1 for that year is deductible by the corporation for a particular taxation year ending after that time only if that business was carried on by the corporation for profit or with a reasonable expectation of profit throughout the particular year and only to the extent of that proportion of the amount determined under subclause (2) (a) (ii) or (2) (b) (ii), as the case may be, for the particular year that, (a) the amount by which, (i) the total of its income for the particular year from that business, as determined under this Part, and, where properties were sold, leased, rented or developed or services were rendered in the course of carrying on that business before that time, its income for the particular year, as determined under this Part, from any other business substantially all of the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services, exceeds, (ii) the total of all amounts each of which is an amount deducted under paragraph 111 (1) (a) or (d) of the Income Tax Act (Canada), as it applies for the purposes of this Part, in computing its taxable income for the particular taxation year, or, if the corporation is a corporation referred to in subsection 2 (2), in computing its taxable income earned in Canada for the particular taxation year, in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of that business or the other business, is of the greater of, (b) the amount determined under clause (a); or (c) the corporation’s taxable income for the particular taxation year, or its taxable income earned in Canada for the particular taxation year in the case of a corporation referred to in subsection 2 (2).  1994, c. 14, s. 17 (1); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1994, c. 14, s. 17 (1, 2) - 01/01/1994 2002, c. 22, s. 45
- 28/06/1999 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 17 (1, 2) - 28/06/1999 2007, c. 7, Sched. 6, s. 2 (1, 2) - 17/05/2007