61 (1) The paid-up capital of a corporation for a taxation year is its paid-up capital as it stood at the end of the day on which it is required to be measured under this Act and includes, (a) the paid-up capital stock of the corporation or, in the case of a corporation incorporated without share capital, the capital contributed to the corporation by its members; (b) its earned, capital and any other surplus; (b.1) for taxation years commencing after September 30, 2006, its accumulated other comprehensive income; (c) the amount of its reserves for the year, whether created from income or otherwise, except to the extent that they were deducted in computing the corporation’s income for the taxation year under any provision of Part II other than, (i) paragraph 20 (1) (n) of the Income Tax Act (Canada) as that paragraph applies by virtue of subsections 11 (1) and (11) of this Act, and (ii) subparagraphs 40 (1) (a) (iii) and 44 (1) (e) (iii) of the Income Tax Act
(Canada) as those subparagraphs apply by virtue of subsection 14 (1) of this Act; (d) for taxation years ending before May 19, 2004, all of its liabilities, whether secured or unsecured, including all deferred credits, deferred taxes and reserve for future tax liabilities, but not its current accounts payable and any amounts prescribed by the regulations; (e) for taxation years ending after May 18, 2004, all of its liabilities, whether secured or unsecured, including all deferred credits, deferred taxes and reserve for future tax liabilities, but not including, (i) its current trade accounts payable, (ii) amounts that represent the employee source deductions, current taxes payable or wages and salaries payable by the corporation, or (iii) an amount prescribed by the regulations.  R.S.O. 1990, c. C.40, s. 61 (1); 1994, c. 14, s. 25 (1, 2); 1997, c. 43, Sched. A, s. 31; 2001, c. 23, s. 40 (1); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 28 (1); 2007, c. 7, Sched. 6, s. 7. Current accounts payable (2) For the purposes of this Part, a corporation’s current accounts payable includes amounts that represent the corporation’s, (a) employee source deductions; (b) current income taxes payable; (c) wages and salaries payable; (d) cheques issued and outstanding in excess of funds on deposit, but does not include any amounts that represent, (e) the current portion of long term indebtedness; (f) accounts payable to a related corporation that have been outstanding 120 or more days; (g) accounts payable to a corporation other than a related corporation that have been outstanding 365 or more days; and (h) for taxation years ending after May 19, 1993, amounts payable in connection with the purchase or trade of shares, bonds, debentures or other types of debt obligations.  1994, c. 14, s. 25 (3); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 28 (2). Current trade accounts payable (2.1) For the purposes of this Part, a corporation’s current trade accounts payable means all accounts payable by the corporation to a supplier on account of the purchase of goods or services from the supplier, other than amounts payable in connection with the purchase or trade of shares, bonds, debentures or other types of debt obligations, if the accounts payable have not been outstanding for, (a) 120 or more days, if the amount is payable to a related person; or (b) 365 or more days, if the amount is payable to a person who is not a related person.  2004, c. 31, Sched. 9, s. 28 (3). Taxable paid-up capital of banks (3) Despite subsection (1), the taxable paid-up capital of a bank for a taxation year is its taxable paid-up capital as it stood at the close of the taxation year, and includes, (a) its paid-up capital stock; (b) its contributed surplus, its general reserve, and all of its other reserves, whether created from income or otherwise, except any reserve the creation of which is allowed as a charge against income under the provisions of Part II; and (c) its retained earnings, its capital surplus, and any other surplus not included by virtue of clause (b).  R.S.O. 1990, c. C.40, s. 61 (3); 2004, c. 16, s. 2 (2). Loan and trust corporations, bank mortgage subsidiaries (4) Despite subsection (1), the taxable paid-up capital for a taxation year of a corporation registered under the Loan and Trust Corporations Act, or that is a bank mortgage subsidiary as defined in section 1 of that Act, is its taxable paid-up capital as it stood at the close of the taxation year, and includes, (a) its paid-up capital stock; (b) its earned, capital and any other surplus; and (c) all its reserves, whether created from income or otherwise, except any reserve, the creation of which is allowed as a charge against income under the provisions of Part II.  R.S.O. 1990, c. C.40, s. 61 (4); 2004, c. 16, s. 2 (2). Adjustment, bank mortgage subsidiaries (4.1) Despite subsection (4), the taxable paid-up capital of a bank mortgage subsidiary, as defined in section 1 of the Loan and Trust Corporations Act, shall exclude the amount of any paid-up capital stock or surplus paid in or contributed by the bank that wholly owns the bank mortgage subsidiary.  1994, c. 14, s. 25 (5); 2004, c. 16, s. 2 (2). Transitional (4.2) Despite subsection (4.1), for a taxation year of a bank mortgage subsidiary that commences before May 1, 1992 and ends after April 30, 1992, the amount to be excluded under subsection (4.1) from the taxable paid-up capital of the bank mortgage subsidiary shall be limited to that proportion of the amount described in subsection (4.1), determined at the end of the taxation year, that the number of days in the taxation year after April 30, 1992 is of the total number of days in the taxation year.  1994, c. 14, s. 25 (5); 2004, c. 16, s. 2 (2). Interpretation (5) For the purpose of subsection (1), the paid-up capital of the corporate partners of a partnership shall, with respect to their interests in the partnership, be determined in accordance with the following rules: (a) determine the paid-up capital of the partnership as if it were a corporation; (b) allocate the paid-up capital of the partnership as determined under clause (a) to each partner thereof in the same proportion as the share of the income or loss of the partnership to which the partner is entitled under the partnership agreement; (c) where a general partner of a limited partnership is a corporation, and where, (i) an individual who is a limited partner thereof or a member of his or her family is a shareholder of or is related to the general partner, or (ii) a trust, the beneficiaries of which are related to any person mentioned in subclause (i), is a limited partner thereof, the amount allocated to such limited partner under clause (b) shall be added to the paid-up capital of the general partner otherwise allocated to it under clause (b); and (d) if  two or more general partners of a limited partnership are corporations and a limited partner referred to in clause (c) is a shareholder of or is related to two or more of the general partners, the amount allocated to the limited partner under clause (b) must be apportioned and added to the paid-up capital of each general partner of which the limited partner is a shareholder or to which the limited partner is related, in the same proportion that the share of the income or loss of the limited partnership of the general partner is to the total share of the income or loss of the limited partnership of all of the general partners of which the limited partner is a shareholder or to which the limited partner is related.  R.S.O. 1990, c. C.40, s. 61 (5); 2001, c. 23, s. 40 (2, 3); 2004, c. 16, s. 2 (2). Computation of bank’s paid-up capital (6) In computing its taxable paid-up capital under subsection (3), a bank shall include all dividends, other than stock dividends, received from other corporations and shall exclude its share of all accumulated earnings and losses of other corporations.  R.S.O. 1990, c. C.40, s. 61 (6); 2004, c. 16, s. 2 (2). Computation of paid-up capital of loan and trust corporations, bank mortgage subsidiaries (7) In computing its taxable paid-up capital, a corporation referred to in subsection (4) shall include all dividends received from other corporations, other than stock dividends, and shall exclude its share of all accumulated earnings or losses of other corporations.  R.S.O. 1990, c. C.40, s. 61 (7); 2004, c. 16, s. 2 (2). Interpretation, trusts (8) For the purposes of this Part, a corporation that is a beneficiary of a trust shall include in the amount determined under clause (1) (d) for a taxation year ending before May 19, 2004 the same proportion of the total liabilities of the trust including any deferred credits, less the current accounts payable of the trust and any amounts prescribed by the regulations, as the corporation’s beneficial interest in the trust.  1994, c. 14, s. 25 (4); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 28 (4). Trusts, taxation years ending after May 18, 2004 (8.1) For the purposes of this Part, a corporation that is a beneficiary of a trust shall include in the amount determined under clause (1) (e) for a taxation year ending after May 18, 2004 the same proportion of the total liabilities of the trust including any deferred credits, less any amounts described in subclauses (1) (e) (i), (ii) and (iii) in respect of the trust, as the corporation’s beneficial interest in the trust.  2004, c. 31, Sched. 9, s. 28 (5). Trust’s current accounts payable or current trade accounts payable (9) In determining the amount to be included under subsection (8) or (8.1) in calculating the paid-up capital of a corporation, the current accounts payable or current trade accounts payable of a trust, as the case may be, shall be determined under subsection (2) or (2.1) as if the trust were a corporation and, in the application of subsection (8) or (8.1), references to a related corporation or person shall be deemed to include references to all corporations or persons that are related to the trust or to the corporation in respect of which the amount under subsection (8) or (8.1) is being determined.  2004, c. 31, Sched. 9, s. 28 (6). Section Amendments with date in force (d/m/y) 1994, c. 14, s. 25 (1-4, 6) - 20/05/1993; 1994, c. 14, s. 25 (5, 7) - 01/05/1992; 1997, c. 43, Sched. A, s. 31 - 07/05/1997 2001, c. 23, s. 40 (1-3)
- 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 28 (1, 3-6) - 18/05/2004; 2004, c. 31, Sched. 9, s. 28 (2) - 20/05/1993 2007, c. 7, Sched. 6, s. 7 - 17/05/2007