14.1 (1) This section applies if a Class A share of a labour sponsored investment fund corporation that was issued after May 6, 1996 is redeemed, acquired or cancelled by the corporation less than eight years after the day on which the share was issued.  2001, c. 23, s. 11; 2004, c. 16, s. 1 (2). Tax payable (2) Subject to subsection (3), the person who was the shareholder immediately before the redemption, acquisition or cancellation of the Class A share shall pay a tax under this Part equal to the amount calculated using the formula, A × B in which, “A” is, (a) if the corporation issued the share on or before March 1, 2010, (i) 20 per cent if the corporation issued the share as a research oriented investment fund, or (ii) 15 per cent in any other case, (b) if the corporation issued the share after March 1, 2010 and on or before March 1, 2011, (i) 15 per cent if the corporation issued the share as a research oriented investment fund, or (ii) 10 per cent in any other case, (c) if the corporation issued the share after March 1, 2011 and on or before February 29, 2012, (i) 10 per cent if the corporation issued the share as a research oriented investment fund, or (ii) 5 per cent in any other case, or (d) 0, if the corporation issued the share after February 29, 2012, and “B” is the lesser of, (a) the amount of equity capital received by the corporation on the issuance of the share, and (b) the amount that is payable by the corporation on the redemption, acquisition or cancellation of the share. 2001, c. 23, s. 11; 2004, c. 16, s. 1 (2); 2009, c. 34, Sched. D, s. 2. Exception (3) No amount is payable under subsection (2) if any of the following conditions is satisfied: 1. After the shareholder acquired the share, the shareholder became disabled and permanently unfit for work or became terminally ill. 2. Within 60 days after the day on which the share was issued to the original purchaser, i. the shareholder asks the corporation to redeem it, and ii. the tax credit certificate referred to in subsection 25 (5) that was issued in respect of the share is returned to the corporation. 3. The shareholder acquired the share from another person as a consequence of, i. the death of the other person, or ii. the death of an annuitant under a trust governing a registered retirement savings plan or registered retirement income fund that previously held the share. 4. The shareholder is a trust governing a registered retirement savings plan or registered retirement income fund and, after the shareholder acquired the share, the annuitant under the plan or fund became disabled and permanently unfit for work or became terminally ill. 5. No tax credit certificate was issued under this Act at any time in respect of the share.  2001, c. 23, s. 11; 2004, c. 16, s. 1 (2). Withholding and remittance of tax (4) If tax is payable under subsection (2) as a result of the redemption, acquisition or cancellation of a Class A share, the labour sponsored investment fund corporation that redeems, acquires or cancels the share shall, (a) withhold from the amount otherwise payable to the shareholder on the redemption, acquisition or cancellation of the share the amount of tax calculated under subsection (2); and (b) remit to the Minister on behalf of the shareholder the amount withheld under clause (a), and do so within 30 days after the redemption, acquisition or cancellation.  2001, c. 23, s. 11; 2004, c. 16, s. 1 (2). Liability for failure to withhold or remit (5) If the labour sponsored investment fund corporation fails to withhold or remit an amount under subsection (4), the corporation is liable to pay to the Minister as tax under subsection (2) on behalf of the shareholder the amount that the corporation failed to withhold or remit.  2001, c. 23, s. 11; 2004, c. 16, s. 1 (2). Same (6) If the labour sponsored investment fund corporation paid an amount to the Minister under subsection (5) as tax under subsection (2) on behalf of the shareholder, the corporation is entitled to recover from the shareholder the amount remitted to the Minister but not withheld by the corporation.  2001, c. 23, s. 11; 2004, c. 16, s. 1 (2). Definition (7) In subsections (3) to (6), “shareholder” means the person who was the shareholder immediately before the redemption, acquisition or cancellation of the Class A share.  2001, c. 23, s. 11; 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 2001, c. 23, s. 11
- 5/12/2001 2004, c. 16, s. 1 (2)
- 1/01/2004 2009, c. 34, Sched. D, s. 2 - 15/12/2009