79 (1) Interest at the rate prescribed by the regulations shall be calculated and charged daily and be payable by a corporation, on the deficiency in the corporation’s tax account for a taxation year, for each day there is a deficiency in the tax account after the end of the instalment period for the taxation year.  1994, c. 14, s. 37 (1); 2004, c. 16, s. 2 (2). Deficiency, tax account (2) For the purposes of this Part, the deficiency, if any, in a corporation’s tax account for a taxation year on a particular day is the amount by which, (a) the total of, (i) the tax payable by the corporation under this Act for the taxation year, (ii) the interest payable by the corporation under subsection (1) in respect of the taxation year during the period after the end of the instalment period for the taxation year but before the particular day, (iii) all amounts in respect of the taxation year each of which is refunded or paid by the Minister to the corporation, or applied by the Minister to another liability of the corporation, as the case may be, on or before the particular day, (iv) all amounts each of which is an amount previously credited or applied by the Minister to the corporation’s tax account or instalment account for the taxation year, and included in the amount determined under clause (b), that is subsequently debited or reversed by the Minister on or before the particular day, (v) the interest payable by the corporation under subsection (4) for the instalment period for the taxation year, (vi) all penalties in respect of the taxation year having effective dates on or before the particular day, and (vii) all other amounts in respect of the taxation year that became payable under this Act, or became collectible and enforceable as if they were tax payable under this Act, on or before the particular day, exceeds, (b) the total of, (i) all amounts paid or deemed to be paid by the corporation and applied or deemed to be applied by the Minister on or before the particular day on account of the corporation’s liability under this Act for the taxation year and all other amounts not otherwise included under this clause that are credited or applied by the Minister on or before the particular day on account of the corporation’s liability under this Act for the taxation year, (ii) the interest in respect of the taxation year allowed under subsection 82 (4) during the period after the end of the instalment period for the taxation year up to and including the particular day, (iii) the interest allowed to the corporation under subsection 83 (1) for the instalment period for the taxation year, and (iv) all amounts each of which is a refund for the taxation year to which the corporation is entitled under section 46 or 48, if the effective date of the refund is on or before the particular day.  1994, c. 14, s. 37 (1); 1996, c. 1, Sched. B, s. 12 (1); 2004, c. 16, s. 2 (2). Interpretation (3) For the purposes of this Act, (a) an amount paid by a corporation under this Act shall be deemed to be paid on the day prescribed by the regulations; (b) the effective date of a refund to which a corporation is entitled under section 46 or 48 is the date the balance of tax payable, if any, for the taxation year is required to be paid by the corporation under clause 78 (2) (b); (c) the instalment period for a taxation year is the period from the first day of the taxation year to the day before the day the balance of the tax payable for the taxation year, if any, is required to be paid under clause 78 (2) (b); and (d) the instalment obligations of a corporation for a taxation year include the liability of the corporation to pay, (i) instalments of tax payable for the taxation year as required under this Act, (ii) interest under subsection (4) on the deficiency, if any, in the corporation’s instalment account for the taxation year, and (iii) any other amounts included in the calculation of a deficiency in the corporation’s instalment account for the taxation year.  1994, c. 14, s. 37 (1); 1996, c. 29, s. 61 (1, 2); 2004, c. 16, s. 2 (2). Exception, instalment period (3.1) Despite clause (3) (c), if, at the time a calculation of interest is done under this Act, the most recent assessment or reassessment for the taxation year was made before the day the balance of tax payable, if any, for the taxation year is required to be paid under clause 78 (2) (b), the instalment period for the taxation year shall be deemed to have ended on the day before the day the assessment or reassessment was made if the result would be a surplus in the corporation’s tax account for the taxation year on the day the assessment or reassessment was made.  1998, c. 34, s. 54 (1); 2004, c. 16, s. 2 (2). Effective date of penalties (3.2) The effective date of a penalty assessed under this Act shall be determined under the following rules: 1. If the penalty is under subsection 76 (1) or (2) in respect of a return, the effective date of the penalty is the date on or before which the corporation was required to deliver the return. 2. If the penalty is under subsection 76 (6) or (9) in respect of a taxation year, the effective date of the penalty is the date the balance of tax payable, if any, for that taxation year is required to be paid by the corporation under clause 78 (2) (b). 3. In any other case, the effective date of the penalty is the date the penalty is assessed by the Minister.  1996, c. 29, s. 61 (3); 2002, c. 22, s. 53 (1); 2004, c. 16, s. 2 (2). Interest on deficiency in instalment account (4) If a corporation is required to pay instalments under section 78 in respect of a taxation year, the corporation is liable to pay interest at the rate prescribed by the regulations, calculated and charged daily on the deficiency in the corporation’s instalment account for the taxation year, for each day there is a deficiency in the instalment account during the period from the last day of the first month in the instalment period to the end of the instalment period.  1994, c. 14, s. 37 (1); 2004, c. 16, s. 2 (2). Exception (4.0.1) Despite subsection (4), if a corporation is entitled to pay instalments under subsection 78 (4.2) for a taxation year, the corporation is liable to pay interest at the rate prescribed by the regulations, calculated and charged daily on the deficiency in the corporation’s instalment account for the taxation year, for each day there is a deficiency in the instalment account during the period from the last day of the third month in the instalment period to the end of the instalment period.  2001, c. 23, s. 52 (1); 2004, c. 16, s. 2 (2). Deficiency, instalment account (4.1) For the purposes of this Part, the deficiency, if any, in a corporation’s instalment account for a taxation year on a particular day in the instalment period is the amount by which, (a) the total of, (i) all instalments of tax that are payable on or before the particular day by the corporation in respect of the taxation year, (ii) the interest payable by the corporation under subsection (4) in respect of the corporation’s instalment account for the taxation year for the period before the particular day, (iii) all amounts in respect of the taxation year which are refunded or paid by the Minister to the corporation, or applied by the Minister to another liability of the corporation, as the case may be, on or before the particular day, (iv) all amounts each of which is an amount previously credited or applied by the Minister to the corporation’s instalment account for the taxation year, and included in the amount determined under clause (b), that is subsequently debited or reversed by the Minister on or before the particular day, and (v) all other amounts in respect of the taxation year that became payable under this Act, or became collectible and enforceable as if they were tax payable under this Act, on or before the particular day, exceeds, (b) the total of, (i) all amounts paid by the corporation and applied by the Minister on or before the particular day on account of the corporation’s instalment obligations under this Act for the taxation year and all other amounts not otherwise included under this clause that are credited or applied by the Minister on or before the particular day on account of the corporation’s instalment obligations for the taxation year, and (ii) the interest allowed under subsection 83 (1) on or before the particular day in respect of the corporation’s instalment account for the taxation year.  1994, c. 14, s. 37 (1); 2004, c. 16, s. 2 (2). (5) Repealed:  1994, c. 14, s. 37 (2). (6) Repealed:  1994, c. 14, s. 37 (2). Effect of loss carried back (7) For the purposes of calculating interest payable or allowed under this section or section 82 or 83 in respect of a particular taxation year, and for the purpose of determining the amount of a penalty, if any, to be assessed under subsection 76 (1) or (2) and the amount of tax payable under subsections 78 (4) and (6), (a) the tax payable by the corporation under this Act for a taxation year shall be deemed to be the amount that would otherwise be determined if all amounts deducted by the corporation for that year under section 111 of the Income Tax Act (Canada), as it applies for the purposes of this Act, in respect of a loss for a taxation year after the particular year (in this section referred to as the “loss year”) were not deducted; and (b) the amount, if any, by which the tax payable by the corporation under this Act for the particular taxation year is reduced as a result of a deduction referred to in clause (a) shall be deemed to be an amount paid by the corporation on account of its liability under this Act for the particular year on the day that is the latest of, (i) the first day of the taxation year after the loss year, (ii) the day on which the corporation’s return for the loss year is delivered to the Minister, or (iii) the day on which the Minister receives a request in writing from the corporation to reassess the particular taxation year to take into account the deduction referred to in clause (a).  1994, c. 14, s. 37 (3); 1996, c. 29, s. 61 (4); 2002, c. 22, s. 53 (2); 2004, c. 16, s. 2 (2). Interest on instalments (8) For the purposes of calculating interest payable or allowed under subsection (4) or 83 (1), the amount of an instalment of tax payable by a corporation in respect of a taxation year shall be deemed to be, (a) in the case of a corporation to which subsection 78 (4) or (6) applies for the year, nil; (b) in the case of a corporation to which subsection 78 (5) applies for the year, the amount determined under clause (c) less one-twelfth of the corporation’s capital gains refund for the year as determined under section 48; and (c) in any other case, the instalment of tax payable under clause 78 (2) (a) or subsection 78 (4.2), as the case may be, determined under the method that results in the lowest total amount of instalments for the year.  1994, c. 14, s. 37 (3); 2001, c. 23, s. 52 (2); 2004, c. 16, s. 2 (2). Interest off-set (9) Despite subsections (1) and (4), (a) the total interest payable by a corporation on the deficiency in its instalment account and in its tax account for a taxation year for the period from the first day of the instalment period for the taxation year to the day the most recent assessment or reassessment for the taxation year is made (in this subsection called the “assessment date”) shall be the amount, if any, by which, (i) the total of the interest charged and payable under subsection (4) for the instalment period for the taxation year and under subsection (1) for the period after the end of the instalment period but not after the assessment date, exceeds, (ii) the total interest allowed under subsection 83 (1) to the corporation for the instalment period for the taxation year and under subsection 82 (4) for the period after the end of the instalment period for the taxation year but not after the assessment date; and (b) the total interest payable by a corporation on the deficiency in its tax account for a taxation year for each statement period after the assessment date referred to in clause (a) shall be the amount, if any, by which the total interest charged and payable under subsection (1) for the particular statement period exceeds the total interest allowed for the statement period under subsection 82 (4).  1994, c. 14, s. 37 (3); 2004, c. 16, s. 2 (2). Definitions (10) In this Part, in respect of a taxation year of a corporation, “statement of account” means a statement that the Minister may issue to a corporation from time to time containing an accounting as of a particular date of the corporation’s liability under this Act for the particular taxation year; (“relevé de compte”) “statement period” means the period of time commencing on the day after the day when a statement of account for the taxation year is issued, or an assessment or reassessment in respect of the taxation year is made, as the case may be, and ending on the day the next statement of account for the taxation year is issued. (“période applicable”)  1994, c. 14, s. 37 (3); 2004, c. 16, s. 2 (2). Income Tax Act (Canada), s. 221.1 applicable (11) Section 221.1 of the Income Tax Act (Canada) applies for the purposes of this Act in respect of amendments to this Act, amendments to the provisions of the Income Tax Act (Canada) which apply for the purposes of this Act and to amendments and enactments that relate to this Act or the Income Tax Act (Canada).  1994, c. 14, s. 37 (4); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1994, c. 14, s. 37 (1, 3, 5, 7-9) - 01/08/1995; 1994, c. 14, s. 37 (2, 6) - 01/01/1994; 1994, c. 14, s. 37 (4) - 01/01/1990; 1996, c. 1, Sched. B, s. 12 (1, 2) - 23/02/1994; 1996, c. 29, s. 61 (1-4) - 01/08/1995; 1998, c. 34, s. 54 (1, 2) - 18/12/1998 2001, c. 23, s. 52 (1, 2) - 05/12/2001 2002, c. 22, s. 53 (1, 2) - 09/12/2002 2004, c. 16, s. 2 (2)
- 01/01/2004 Division C — Assessments