78 (1) The taxes imposed by this Act shall be deemed to accrue proportionately as the days of each taxation year for which such taxes are imposed pass.  R.S.O. 1990, c. C.40, s. 78 (1); 2004, c. 16, s. 2 (2). Dates of payment (2) Every corporation on which a tax is imposed by this Act shall pay to the Minister, (a) on or before, (i) the last day of each month of the taxation year in respect of which the tax is payable, an instalment equal to one-twelfth of the tax payable by the corporation for the taxation year, or (ii) the last day of each month of the taxation year in respect of which the tax is payable, an instalment equal to one-twelfth of the corporation’s first instalment base for the taxation year, or (iii) the last day of each of the first two months in the taxation year in respect of which the tax is payable, an instalment equal to one-twelfth of the corporation’s second instalment base for the taxation year and on or before the last day of each of the following months in the taxation year an amount equal to one-tenth of the amount remaining after deducting the amount computed under this subclause in respect of the first two months from the corporation’s first instalment base for the year; and (b) the balance, if any, of the tax payable for the taxation year as estimated by it under subsection 75 (6), (i) subject to subsection (3), on or before the last day of the third month following the taxation year, (A) if the corporation was a Canadian-controlled private corporation throughout the taxation year, (B) if, for a taxation year that ends before 2009, its taxable income for the taxation year immediately before that taxation year did not exceed the total of the amounts described in clauses 41 (3.2) (a) to (f), and (C) if, for a taxation year that ends after 2008, its taxable income for the taxation year immediately before that taxation year did not exceed $500,000, or (ii) on or before the last day of the second month following the taxation year, in any other case.  R.S.O. 1990, c. C.40, s. 78 (2); 1994, c. 14, s. 36 (1, 2); 2000, c. 10, s. 9 (1); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 39 (1); 2009, c. 18, Sched. 9, s. 3 (1); 2012, c. 8, Sched. 10, s. 1 (1). Same (3) For the purposes of sub-subclauses (2) (b) (i) (B) and (C), if the immediately preceding taxation year is less than 51 weeks long, the amounts referred to in those provisions shall be multiplied by the ratio of the number of days in the immediately preceding year to 365.  2012, c. 8, Sched. 10, s. 1 (2). Amalgamations (3.1) For the purposes of subclause (2) (b) (i), where a new corporation is formed as a result of an amalgamation within the meaning of section 87 of the Income Tax Act
(Canada), the following rules apply: 1. The new corporation shall be deemed to have had a taxation year of 365 days that ended immediately before the amalgamation and a taxable income for that taxation year equal to the sum of all amounts, each of which is the product obtained when the taxable income of a predecessor corporation (within the meaning assigned by section 87 of the Income Tax Act (Canada)) for its taxation year that ended immediately before the amalgamation is multiplied by the ratio that 365 days is of the number of days in that taxation year of the predecessor corporation. 2. Sub-subclause (2) (b) (i) (B) shall be applied with respect to the new corporation as if that sub-subclause read “its taxable income within the meaning of paragraph 1 of subsection (3.1) did not exceed the total of the amounts described in clauses 41 (3.2) (a) to (f) for that taxation year”. 3. Sub-subclause (2) (b) (i) (C) shall be applied with respect to the new corporation as if that sub-subclause read “its taxable income within the meaning of paragraph 1 of subsection (3.1) did not exceed $500,000 for that taxation year”.  2004, c. 31, Sched. 9, s. 39 (3); 2009, c. 18, Sched. 9, s. 3 (3); 2012, c. 8, Sched. 10, s. 1 (3). Special cases (4) Where the tax payable by a corporation for the taxation year or its first instalment base for the taxation year is less than $2,000, the corporation may, instead of paying the instalments required by clause (2) (a), pay its tax payable for the taxation year, as estimated by it under subsection 75 (6), in accordance with clause (2) (b).  1994, c. 14, s. 36 (3); 2004, c. 16, s. 2 (2). Exception (4.1) The amount of any instalments payable by a corporation under subsection (2) in respect of tax payable for its first taxation year commencing after 1993 and before 1995 and the amount of tax payable for that year for the purposes of subsection (4) shall be determined without reference to any tax payable for the year by the corporation under Part II.1.  1994, c. 14, s. 36 (8); 2004, c. 16, s. 2 (2). Exception (4.2) If the amount of tax payable by the corporation for a taxation year commencing after December 31, 2001 or the amount of its first instalment base for a taxation year commencing after December 31, 2001 is at least $2,000 but less than $10,000, the corporation may pay instalments to the Minister in the following amounts at the following times, instead of the instalments required by clause (2) (a): 1. The corporation may pay an instalment on or before the last day of each of the third, sixth, ninth and twelfth months of the taxation year in respect of which the tax is payable, equal to, i. one-quarter of the tax payable by the corporation for the taxation year, or ii. one-quarter of the corporation’s first instalment base for the taxation year. 2. Instead of the instalments described in paragraph 1, the corporation may pay, i. on or before the last day of the third month of the taxation year in respect of which the tax is payable, an instalment equal to one-quarter of the corporation’s second instalment base for the taxation year, and ii. on or before the last day of the sixth, ninth and twelfth months of the taxation year in respect of which the tax is payable, an instalment equal to one-third of the amount by which the corporation’s first instalment base for the taxation year exceeds the amount paid under subparagraph i for the taxation year.  2001, c. 23, s. 51 (1); 2004, c. 16, s. 2 (2). Same (4.3) Instead of paying the instalments required by clause (2) (a) on account of the tax payable for a taxation year commencing after December 31, 2001, a corporation may pay its tax instalments for the taxation year in accordance with subsection (4.2) if, (a) the tax payable by the corporation for the taxation year is at least $2,000 but less than $10,000 after deducting all amounts, if any, deemed under any of sections 43.2 to 43.13 to be tax paid by the corporation for the taxation year and the amount, if any, of its capital gains refund as determined under section 48 for the taxation year; or (b) the tax payable by the corporation for the immediately preceding taxation year is at least $2,000 but less than $10,000 after deducting, (i) the amount, if any, of its capital gains refund as determined under section 48 for that taxation year, and (ii) the amount, if any, deemed under section 43.2 to be a payment on account of its tax payable for that taxation year.  2001, c. 23, s. 51 (1); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 39 (4). Exception (5) Despite clause (2) (a), the amount payable for a taxation year by a corporation to the Minister on or before the last day of any month in the taxation year shall be deemed to be the amount, if any, by which the amount payable for that month as determined under that clause exceeds, (a)   if the corporation is a mutual fund corporation, one-twelfth of the corporation’s capital gains refund for the year, as determined under section 48; and (b) one-twelfth of the total of all amounts deemed by any of sections 43.2 to 43.13 to have been paid on account of the corporation’s tax payable under this Act for the year.  1996, c. 1, Sched. B, s. 11 (1, 2); 1996, c. 24, s. 29 (1); 1997, c. 43, Sched. A, s. 45 (1); 1998, c. 5, s. 22 (1); 1998, c. 34, s. 53 (1, 2); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 39 (5). Exception (5.1) Despite paragraphs 1 and 2 of subsection (4.2), the amount payable for a taxation year commencing after December 31, 2001 by a corporation to the Minister on or before the last day of the third, sixth, ninth or twelfth months in the taxation year shall be deemed to be the amount, if any, by which the amount payable by that day as determined under paragraph 1 or 2 of subsection (4.2), as the case may be, exceeds, (a) one-quarter of the corporation’s capital gains refund for the year, as determined under section 48, if the corporation is a mutual fund corporation; and (b) one-quarter of the total of all amounts deemed by any of sections 43.2 to 43.13 to have been paid on account of the corporation’s tax payable under this Act for the year.  2001, c. 23, s. 51 (1); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 39 (6). Same (6) Instead of paying the instalments required by clause (2) (a) or by paragraph 1 or 2 of subsection (4.2) on account of the tax payable for a taxation year, a corporation may pay its tax for the taxation year in accordance with clause (2) (b) if, (a) the tax payable by the corporation for the taxation year is less than $2,000 after deducting all amounts, if any, deemed under any of sections 43.2 to 43.13 to be tax paid by the corporation for the taxation year and the amount, if any, of its capital gains refund as determined under section 48 for the taxation year; or (b) the tax payable by the corporation for the immediately preceding taxation year is less than $2,000 after deducting, (i) the amount, if any, of its capital gains refund as determined under section 48 for that taxation year, and (ii) the amount, if any, deemed under section 43.2 to be a payment on account of its tax payable for that taxation year.  1996, c. 1, Sched. B, s. 11 (3, 4); 1996, c. 29, s. 59 (1-3); 1997, c. 43, Sched. A, s. 45 (2); 1998, c. 5, s. 22 (2); 1998, c. 34, s. 53 (3, 4); 2001, c. 23, s. 51 (2); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 39 (7). Application of payments received (7) An amount paid, applied or credited on account of amounts payable under this Act by a corporation in respect of a particular taxation year shall be applied, (a) firstly, against the tax payable by the corporation in respect of the particular year; (b) secondly, against any penalty payable by the corporation in respect of the particular year; (c) thirdly, against any interest payable by the corporation in respect of the particular year; and (d) fourthly, against any other amount or amounts payable by the corporation in respect of the particular year.  1994, c. 14, s. 36 (5); 2004, c. 16, s. 2 (2). Definitions (8) For the purposes of this Act, “first instalment base” and “second instalment base” have the meanings prescribed by regulation.  R.S.O. 1990, c. C.40, s. 78 (8); 1994, c. 14, s. 36 (6); 2004, c. 16, s. 2 (2). Interpretation (9) For the purposes of this Part, where the previous taxation year of a corporation does not end on the last day of a calendar month, (a) any reference to the last day of a month shall be deemed, in respect of that corporation, to be a reference to the day of that month corresponding to the day on which, (i) the previous taxation year ended for the purpose of clause (2) (a) or paragraphs 1 and 2 of subsection (4.2), and (ii) the taxation year ended for the purpose of clause (2) (b), except that where either the previous taxation year or the taxation year ends on the 29th, 30th or 31st day of a month, the said reference to the last day of a month shall, with respect to the month of February, be deemed to be a reference to the last day of that month; and (b) despite clause (a), if the taxation year of the corporation is more than 350 days, (i) twelve instalments are required if the corporation is subject to clause (2) (a) and four instalments are required if the corporation makes its instalments under paragraph 1 or 2 of subsection (4.2), and (ii) the last instalment must be paid on or before the last day of the taxation year.  R.S.O. 1990, c. C.40, s. 78 (9); 1994, c. 14, s. 36 (7); 2001, c. 23, s. 51 (3, 4); 2004, c. 16, s. 2 (2). Idem (10) Where a corporation made a deduction under subsection 42 (1) from tax otherwise payable for a previous taxation year, it shall be deemed to have made a deduction from tax under subsection 41 (1), and not under subsection 42 (1), for the purposes of, (a) calculating the instalments required under clause (2) (a); and (b) calculating its first instalment base and its second instalment base for the purposes of clause (2) (a); and (c) determining whether the tax payable for the immediately preceding taxation year is less than $2,000 for the purposes of subsection (4), for a taxation year other than a taxation year for which the corporation will make a deduction under subsection 42 (1) from tax otherwise payable for that year.  R.S.O. 1990, c. C.40, s. 78 (10); 2004, c. 16, s. 2 (2). Exception, insurance exchange (11) The following rules apply to an insurance exchange within the meaning of section 74.4: 1. Subsections (1), (2), (3), (4), (4.1), (4.2), (4.3), (5), (5.1), (6), (8), (9) and (10) do not apply to the insurance exchange in respect of tax payable by it under section 74.4. 2. The tax payable for a taxation year by the insurance exchange under section 74.4 shall be paid to the Minister on or before the last day of the second month following the taxation year.  1997, c. 43, Sched. A, s. 45 (3); 2001, c. 23, s. 51 (5); 2004, c. 16, s. 2 (2). Application provision, 2000 Budget (12) Sub-subclause (2) (b) (i) (B) and subsection (3), as they are re-enacted by the Taxpayer Dividend Act, 2000, apply with respect to taxation years ending after May 1, 2000.  2000, c. 10, s. 9 (3); 2004, c. 16, s. 2 (2). If refund payable under Part II.2 (13) In calculating any amount payable under this section in respect of a taxation year, a corporation shall not take into account the amount of any refund that may be payable to it under Part II.2 in respect of the year.  2008, c. 24, s. 2. Section Amendments with date in force (d/m/y) 1994, c. 14, s. 36 (1, 3, 4, 6) - 23/06/1994; 1994, c. 14, s. 36 (2, 8) - 01/01/1994; 1994, c. 14, s. 36 (5, 7) - 01/08/1995; 1996, c. 1, Sched. B, s. 11 (1, 3, 5) - 23/02/1994; 1996, c. 1, Sched. B, s. 11 (2, 4, 6) - 01/01/1995; 1996, c. 24, s. 29 (1) - 08/05/1996; 1996, c. 29, s. 59 (1, 4) - 23/02/1994; 1996, c. 29, s. 59 (2, 5) - 01/01/1995; 1996, c. 29, s. 59 (3, 6) - 08/05/1996; 1997, c. 43, Sched. A, s. 45 (1, 2) - 07/05/1997; 1997, c. 43, Sched. A, s. 45 (3, 4) - 01/01/1998; 1998, c. 34, s. 53 (1, 3) - 01/07/1998; 1998, c. 34, s. 53 (2, 4) - 01/01/1999; 1998, c. 5, s. 22 (1, 2) - 01/11/1997 2000, c. 10, s. 9 (1-3)
- 02/05/2000 2001, c. 23, s. 51 (1-5)
- 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 39 (1, 2) - 01/01/2003; 2004, c. 31, Sched. 9, s. 39 (3) - 02/05/2000; 2004, c. 31, Sched. 9, s. 39 (4-7) - 16/12/2004 2008, c. 24, s. 2 - 10/12/2008 2009, c. 18, Sched. 9, s. 3 (1-3) - 01/01/2007 2012, c. 8, Sched. 10, s. 1 (1-3) - 01/01/2009