Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2016-09-18 and last amended on 2016-07-01. Previous Versions

Marginal note:Instalment deferral for January, February and March 2002 - definitions
  •  (1) The following definitions apply in this section.

    eligible corporation

    société admissible

    eligible corporation, for a particular taxation year, means a corporation

    • (a) that is resident in Canada throughout the particular taxation year; and

    • (b) of which the taxable capital employed in Canada, within the meaning assigned by Part I.3, for its preceding taxation year did not exceed,

      • (i) if the corporation is not associated with any other corporation in the particular taxation year, $15 million, and

      • (ii) if the corporation is associated with one or more other corporations in the particular taxation year, the amount by which $15 million exceeds the total of the taxable capital employed in Canada, within the meaning assigned by Part I.3, of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the particular taxation year. (société admissible)

    eligible instalment day

    jour admissible

    eligible instalment day of an eligible corporation means a day in January, February or March, 2002, on which an instalment on account of the corporation’s tax payable under this Part for the taxation year that includes that day would become payable

    • (a) if this Act were read without reference to this section; and

    • (b) if, in the case of a corporation that is not required by section 157 to make instalment payments on account of its tax payable under this Part for the taxation year, it were so required. (jour admissible)

  • Marginal note:Deferred balance-due day

    (2) An eligible corporation’s balance-due day for a taxation year that ends after 2001 is deemed to be the later of

    • (a) the day that would otherwise be the corporation’s balance-due day for the taxation year, and

    • (b) the day that is six months after the corporation’s last eligible instalment day in the taxation year.

  • Marginal note:Deferred instalment day

    (3) An amount that would, because of paragraph 157(1)(a), otherwise become payable in respect of a taxation year by an eligible corporation on an eligible instalment day of the corporation does not become payable on that day but becomes payable

    • (a) if the particular day that is six months after the eligible instalment day is in the taxation year, on the particular day; and

    • (b) in any other case, on the day that is deemed by subsection (2) to be the corporation’s balance-due day for the taxation year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2002, c. 9, s. 42.
Marginal note:Payment of remainder

 Where the Minister mails a notice of assessment of any amount payable by a taxpayer, that part of the amount assessed then remaining unpaid is payable forthwith by the taxpayer to the Receiver General.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1970-71-72, c. 63, s. 1“158”;
  • 1980-81-82-83, c. 48, s. 115;
  • 1985, c. 45, s. 89.
Marginal note:Person acting for another
  •  (1) For the purposes of this Act, where a person is a legal representative of a taxpayer at any time,

    • (a) the legal representative is jointly and severally, or solidarily, liable with the taxpayer

      • (i) to pay each amount payable under this Act by the taxpayer at or before that time and that remains unpaid, to the extent that the legal representative is at that time in possession or control, in the capacity of legal representative, of property that belongs or belonged to, or that is or was held for the benefit of, the taxpayer or the taxpayer’s estate, and

      • (ii) to perform any obligation or duty imposed under this Act on the taxpayer at or before that time and that remains outstanding, to the extent that the obligation or duty can reasonably be considered to relate to the responsibilities of the legal representative acting in that capacity; and

    • (b) any action or proceeding in respect of the taxpayer taken under this Act at or after that time by the Minister may be so taken in the name of the legal representative acting in that capacity and, when so taken, has the same effect as if it had been taken directly against the taxpayer and, if the taxpayer no longer exists, as if the taxpayer continued to exist.

  • Marginal note:Certificate before distribution

    (2) Every legal representative (other than a trustee in bankruptcy) of a taxpayer shall, before distributing to one or more persons any property in the possession or control of the legal representative acting in that capacity, obtain a certificate from the Minister, by applying for one in prescribed form, certifying that all amounts

    • (a) for which the taxpayer is or can reasonably be expected to become liable under this Act at or before the time the distribution is made, and

    • (b) for the payment of which the legal representative is or can reasonably be expected to become liable in that capacity

    have been paid or that security for the payment thereof has been accepted by the Minister.

  • Marginal note:Personal liability

    (3) If a legal representative (other than a trustee in bankruptcy) of a taxpayer distributes to one or more persons property in the possession or control of the legal representative, acting in that capacity, without obtaining a certificate under subsection (2) in respect of the amounts referred to in that subsection,

    • (a) the legal representative is personally liable for the payment of those amounts to the extent of the value of the property distributed;

    • (b) the Minister may at any time assess the legal representative in respect of any amount payable because of this subsection; and

    • (c) the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, to an assessment made under this subsection as though it had been made under section 152 in respect of taxes payable under this Part.

  • Marginal note:Appropriation of property

    (3.1) For the purposes of subsections 159(2) and 159(3), an appropriation by a legal representative of a taxpayer of property in the possession or control of the legal representative acting in that capacity is deemed to be a distribution of the property to a person.

  • (4) and (4.1) [Repealed, 2001, c. 17, s. 154(1)]

  • Marginal note:Election where certain provisions applicable

    (5) Where subsection 70(2), 70(5) or 70(5.2) of this Act or subsection 70(9.4) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, is applicable in respect of a taxpayer who has died, and the taxpayer’s legal representative so elects and furnishes the Minister with security acceptable to the Minister for payment of any tax the payment of which is deferred by the election, notwithstanding any provision of this Part or the Income Tax Application Rules respecting the time within which payment shall be made of the tax payable under this Part by the taxpayer for the taxation year in which the taxpayer died, all or any portion of such part of that tax as is equal to the amount, if any, by which that tax exceeds the amount that that tax would be, if this Act were read without reference to subsections 70(2), (5) and (5.2) and the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, were read without reference to subsections 70(2), (5), (5.2) and (9.4) of that Act, may be paid in such number (not exceeding 10) of equal consecutive annual instalments as is specified by the legal representative in the election, the first instalment of which shall be paid on or before the day on or before which payment of that tax would, but for the election, have been required to be made and each subsequent instalment of which shall be paid on or before the next following anniversary of that day.

  • Marginal note:Idem

    (5.1) Where, in the taxation year in which a taxpayer dies, an amount is included in computing the taxpayer’s income by virtue of paragraph 23(3)(c) of the Income Tax Application Rules, the provisions of subsection 159(5) apply, with such modifications as the circumstances require, as though the amount were an amount included in computing the taxpayer’s income for the year by virtue of subsection 70(2) or an amount deemed to have been received by the taxpayer by virtue of subsection 70(5).

  • Marginal note:Idem

    (6) For the purposes of subsection 159(5), the tax payable under this Part by a taxpayer for the taxation year in which the taxpayer died includes any tax payable under this Part by virtue of an election in respect of the taxpayer’s death made by the taxpayer’s legal representative under subsection 70(2) or under the provisions of that subsection as they are required to be read by virtue of the Income Tax Application Rules.

  • Marginal note:Election where subsection 104(4) applicable

    (6.1) Where a time determined under paragraph 104(4)(a), (a.1), (a.2), (a.3), (a.4), (b) or (c) in respect of a trust occurs in a taxation year of the trust and the trust so elects and furnishes to the Minister security acceptable to the Minister for payment of any tax the payment of which is deferred by the election, notwithstanding any other provision of this Part respecting the time within which payment shall be made of the tax payable under this Part by the trust for the year, all or any portion of the part of that tax that is equal to the amount, if any, by which that tax exceeds the amount that that tax would be if this Act were read without reference to paragraph 104(4)(a), (a.1), (a.2), (a.3), (a.4), (b) or (c), as the case may be, may be paid in the number (not exceeding 10) of equal consecutive annual instalments that is specified by the trust in the election, the first instalment of which shall be paid on or before the day on or before which payment of that tax would, but for the election, have been required to be made and each subsequent instalment of which shall be paid on or before the next following anniversary of that day.

  • Marginal note:Form and manner of election and interest

    (7) Every election made by a taxpayer under subsection 159(4) or 159(6.1) or by the legal representative of a taxpayer under subsection 159(5) shall be made in prescribed form and on condition that, at the time of payment of any amount payment of which is deferred by the election, the taxpayer shall pay to the Receiver General interest on the amount at the prescribed rate in effect at the time the election was made, computed from the day on or before which the amount would, but for the election, have been required to be paid to the day of payment.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 159;
  • 1994, c. 7, Sch. II, s. 131, Sch. VIII, s. 95, c. 21, s. 78;
  • 1998, c. 19, s. 185;
  • 2001, c. 17, s. 154;
  • 2013, c. 34, ss. 140(E), 312.
 
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