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

Act current to 2013-04-29 and last amended on 2013-03-01. Previous Versions

Marginal note:Modification for purposes of provincial program

122.71 The Minister of Finance may enter into an agreement with the government of a province whereby the amounts determined under subsections 122.7(2) and (3) with respect to an eligible individual resident in the province at the end of the taxation year shall, for the purpose of calculating amounts deemed to be paid on account of the tax payable of an individual under those subsections, be replaced by amounts determined in accordance with the agreement.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2007, c. 35, s. 42.

Subdivision b

Rules Applicable to Corporations

Marginal note:Rate for corporations

  • 123. (1) The tax payable under this Part for a taxation year by a corporation on its taxable income or taxable income earned in Canada, as the case may be, (in this section referred to as its “amount taxable”) for the year is, except where otherwise provided,

    • (a) 38% of its amount taxable for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1970-71-72, c. 63, s. 1“123”;
  • 1984, c. 29, s. 90;
  • 1986, c. 55, s. 42;
  • 1988, c. 28, s. 250, c. 55, s. 100.
Marginal note:Corporation surtax

123.1 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation (other than a corporation that was throughout the year an investment corporation or a non-resident-owned investment corporation) an amount equal to that proportion of 5% of the amount, if any, by which

  • (a) the tax payable under this Part by the corporation for the year determined without reference to this section, sections 123.2 and 126 (except for the purposes of subsection 125(1) and section 125.1), subsections 127(3) and (5), 127.2(1) and 127.3(1) of this Act and paragraph 123(1)(b) and subsection 127(13) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and as if subsection 124(1) of this Act were read without reference to the words “in a province” in that subsection

exceeds

  • (b) in the case of a Canadian-controlled private corporation to which subsection 125(1) applies, the amount, if any, by which

    • (i) 15% of the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year

    exceeds

    • (ii) the amount, if any, determined under paragraph 125.1(1)(b) in respect of the corporation for the year,

  • (c) in the case of a mutual fund corporation, the least of the amounts that would be determined under paragraphs (a) to (c) of the description of A in the definition “refundable capital gains tax on hand” in subsection 131(6) in respect of the corporation for the year if this Act were read without reference to this section, and

  • (d) in any other case, nil

that the number of days in that portion of the year that is after June 30, 1985 and before 1987 is of the number of days in the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1972, c. 9, s. 2;
  • 1985, c. 45, s. 69;
  • 1986, s. 6, s. 69, c. 55, s. 43.