57 (1) Except as hereinafter provided, no tax is payable under this Part upon the taxable income of a corporation for a period when that corporation was, Charities and other corporations (a) a corporation referred to in any of paragraphs 149 (1) (c), (d), (d.1), (d.2), (d.3), (d.4), (d.5), (d.6), (e), (f), (h.1), (i), (j), (k), (m), (n), (o.1), (o.2), (o.3) and (t) of the Income Tax Act (Canada); or Non-profit organizations (b) a club, society or association that, in the opinion of the Minister, was not a charity within the meaning given to that expression by subsection 149.1 (1) of the Income Tax Act (Canada) and that was organized and operated exclusively for social welfare, civic improvement, pleasure or recreation or for any other purpose except profit, which has not in the taxation year or in any previous taxation year distributed any part of its income to any proprietor, member or shareholder thereof, or appropriated any of its funds or property in any manner whatever to or for the benefit of any proprietor, member or shareholder thereof, unless the proprietor, member or shareholder was a club, society or association, the primary purpose and function of which was the promotion of amateur athletics in Canada.  R.S.O. 1990, c. C.40, s. 57 (1); 1994, c. 14, s. 20 (1); 1998, c. 34, s. 47 (1); 1999, c. 9, s. 83 (1); 2004, c. 16, s. 2 (2). Tax payable where distribution made to members or shareholders (2) Where a corporation described in clause (1) (b), (a) has in the taxation year distributed any part of its income or distributed or otherwise appropriated any of its funds or property in any manner whatever to or for the benefit of any proprietor, member or shareholder thereof, such corporation shall be liable to the taxes imposed under this Act for the taxation year in which the distribution is made and for subsequent taxation years, and in computing its income for the taxation year in which the distribution is made, it shall include the aggregate of its income of all previous taxation years; or (b) has distributed any of its income or distributed or otherwise appropriated any of its funds or property in any manner whatever to or for the benefit of any proprietor, member or shareholder thereof on the winding up or discontinuance of its business, the corporation shall be deemed to have received income in that taxation year equal to the amount, if any, by which the amount of the funds and the value of the property distributed or appropriated, as the case may be, exceeds the aggregate of, (i) amounts paid in by proprietors, members or shareholders on account of capital, and (ii) that part of the corporation’s surplus that is attributed to income that was exempt under this section other than taxable capital gains, and the corporation shall be liable for the taxes imposed under this Act for the taxation year in which the distribution is made.  R.S.O. 1990, c. C.40, s. 57 (2); 2004, c. 16, s. 2 (2). Income not to include taxable capital gains (3) For the purposes of clause (1) (b), in computing the part, if any, of any income that was distributed or otherwise appropriated for the benefit of any person, the amount of such income shall be deemed to be the amount thereof otherwise determined less the amount of any taxable capital gains included therein.  R.S.O. 1990, c. C.40, s. 57 (3); 2004, c. 16, s. 2 (2). Application of rules in Income Tax Act (Canada), s. 149 (4) The rules in subsections 149 (1.1), (1.2), (1.3), (2), (3), (4), (4.1), (4.2), (4.3), (6), (8), (9), (10) and (11) of the Income Tax Act (Canada) apply for the purposes of this section.  1998, c. 34, s. 47 (2); 2004, c. 16, s. 2 (2). Idem (5) In the application of paragraph 149 (1) (t) and subsection 149 (4.1) of the Income Tax Act (Canada), references to the Superintendent of Financial Institutions shall be read as references to the Superintendent of Financial Institutions for Canada.  R.S.O. 1990, c. C.40, s. 57 (5); 2004, c. 16, s. 2 (2). Idem (6) In the application of subsection 149 (2) of the Income Tax Act (Canada) for the purposes of this Act, the said subsection shall be read without the reference therein to paragraph (l).  R.S.O. 1990, c. C.40, s. 57 (6); 2004, c. 16, s. 2 (2). Idem (6.1) In the application of subsection 149 (4.3) of the Income Tax Act (Canada) for the purposes of this Act, the reference to “this Part” shall be read as a reference to Part II of this Act and the reference to paragraph 20 (1) (a) of that Act shall be read as a reference to clause 11 (10) (a) of this Act.  1994, c. 14, s. 20 (3); 2004, c. 16, s. 2 (2). Application of Income Tax Act (Canada), subs. 149 (10) (7) In the application of subsection 149 (10) of the Income Tax Act (Canada) for the purposes of this Act, the reference to “this Part” shall be read as a reference to Part II of this Act.  1998, c. 34, s. 47 (3); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1994, c. 14, s. 20 (1-4) - 17/12/1991; 1998, c. 34, s. 47 (1, 2, 4) - 01/01/1998; 1998, c. 34, s. 47 (3, 5) - 27/04/1995; 1999, c. 9, s. 83 (1, 2) - 01/01/1999 2004, c. 16, s. 2 (2)
- 01/01/2004 PART II.1   CORPORATE MINIMUM TAX