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

Act current to 2017-03-20 and last amended on 2017-02-01. Previous Versions

Marginal note:Return

 Every life insurer shall file with the Minister, not later than the day on or before which it is required by section 150 to file its return of income for a taxation year under Part I, a return of taxable Canadian life investment income for that year in prescribed form containing an estimate of the tax payable by it under this Part for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1988, c. 55, s. 160.
Marginal note:Instalments
  •  (1) Every life insurer shall, in respect of each of its taxation years, pay to the Receiver General on or before the last day of each month in the year, an amount equal to 1/12 of the lesser of

    • (a) the amount estimated by the insurer to be the annualized tax payable under this Part by it for the year, and

    • (b) the annualized tax payable under this Part by the insurer for the immediately preceding taxation year.

  • Marginal note:Annualized tax payable

    (2) For the purposes of subsections 211.3(1) and 211.5(2), the annualized tax payable under this Part by a life insurer for a taxation year is the amount determined by the formula

    (365/A) × B

    where

    A
    is
    • (a) if the year is less than 357 days, the number of days in the year (other than February 29), and

    • (b) otherwise, 365; and

    B
    is the tax payable under this Part by the insurer for the year.
  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 211.3;
  • 1998, c. 19, s. 214.
Marginal note:Payment of remainder of tax

 Every life insurer shall pay, on or before its balance-due day for a taxation year, the remainder, if any, of the tax payable under this Part by the insurer for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 211.4;
  • 2003, c. 15, s. 127.
Marginal note:Provisions applicable to Part
  •  (1) Section 152, subsection 157(2.1), sections 158 and 159, subsections 161(1), 161(2), 161(2.1), 161(2.2) and 161(11), sections 162 to 167 and Division J of Part I apply to this Part, with such modifications as the circumstances require.

  • Marginal note:Interest on instalments

    (2) For the purposes of subsection 161(2) and section 163.1 as they apply to this Part, a life insurer is, in respect of a taxation year, deemed to have been liable to pay, on or before the last day of each month in the year, an instalment equal to 1/12 of the lesser of

    • (a) the annualized tax payable under this Part by the insurer for the year, and

    • (b) the annualized tax payable under this Part by the insurer for the immediately preceding taxation year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 211.5;
  • 1994, c. 7, Sch. II, s. 173;
  • 1998, c. 19, s. 215.

PART XII.4Tax on Qualifying Environmental Trusts

Marginal note:Definitions
  •  (1) The definitions in this section apply for the purposes of this Part.

    excluded trust

    fiducie exclue

    excluded trust, at any time, means a trust that

    • (a) relates at that time to the reclamation of a well;

    • (b) is not maintained at that time to secure the reclamation obligations of one or more persons or partnerships that are beneficiaries under the trust;

    • (c) borrows money at that time;

    • (d) if the trust is not a trust to which paragraph (e) applies, acquires at that time any property that is not described by any of paragraphs (a), (b) and (f) of the definition qualified investment in section 204;

    • (e) if the trust is created after 2011 (or if the trust was created before 2012, it elects in writing filed with the Minister on or before its filing-due date for a particular taxation year to have subparagraphs (i) and (ii) apply to it for the particular taxation year and all subsequent taxation years, and that election is made jointly with Her Majesty in right of Canada or a particular province, depending upon the qualifying law or qualifying contract in respect of the trust),

      • (i) acquires at that time any property that is not described by any of paragraphs (a), (b), (c), (c.1), (d) and (f) of the definition qualified investment in section 204, or

      • (ii) holds at that time a prohibited investment;

    • (f) elected in writing filed with the Minister, before 1998 or before April of the year following the year in which the first contribution to the trust was made, never to have been a qualifying environmental trust; or

    • (g) was at any previous time during its existence not a qualifying environmental trust (as determined under the definition qualifying environmental trust in subsection 248(1) as it applied at that previous time). (fiducie exclue)

    prohibited investment

    placement interdit

    prohibited investment, of a trust at any time, means a property that

    • (a) at the time it was acquired by the trust, was described by any of paragraphs (c), (c.1) or (d) of the definition qualified investment in section 204; and

    • (b) was issued by

      • (i) a person or partnership that has contributed property to, or that is a beneficiary under, the trust,

      • (ii) a person that is related to, or a partnership that is affiliated with, a person or partnership that has contributed property to, or that is a beneficiary under, the trust, or

      • (iii) a particular person or partnership if

        • (A) another person or partnership holds a significant interest (within the meaning assigned by subsection 207.01(4) with any modifications that the circumstances require) in the particular person or partnership, and

        • (B) the holder of that significant interest has contributed property to, or is a beneficiary under, the trust. (placement interdit)

    QET income tax rate

    taux d’impôt sur le revenu des FEA

    QET income tax rate, for a trust’s taxation year, means the amount, expressed as a decimal fraction, by which

    • (a) the percentage rate of tax provided under paragraph 123(1)(a) for the taxation year

    exceeds

    • (b) the total of

      • (i) the percentage that would, if the trust were a corporation, be its general rate reduction percentage, within the meaning assigned by subsection 123.4(1), for the taxation year, and

      • (ii) the percentage deduction from tax provided under subsection 124(1) for the taxation year. (taux d’impôt sur le revenu des FEA)

    qualifying contract

    contrat admissible

    qualifying contract, in respect of a trust, means a contract entered into with Her Majesty in right of Canada or a province on or before the later of January 1, 1996 and the day that is one year after the day on which the trust was created. (contrat admissible)

    qualifying environmental trust

    fiducie pour l’environnement admissible

    qualifying environmental trust means a trust

    • (a) each trustee of which is

      • (i) Her Majesty in right of Canada or a province, or

      • (ii) a corporation resident in Canada that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee;

    • (b) that is maintained for the sole purpose of funding the reclamation of a qualifying site;

    • (c) that is, or may become, required to be maintained under

      • (i) the terms of a qualifying contract, or

      • (ii) a qualifying law; and

    • (d) that is not an excluded trust. (fiducie pour l’environnement admissible)

    qualifying law

    loi admissible

    qualifying law, in respect of a trust, means

    • (a) a law of Canada or a province that was enacted on or before the later of January 1, 1996 and the day that is one year after the day on which the trust was created; and

    • (b) if the trust was created after 2011, an order made

      • (i) by a tribunal constituted under a law described by paragraph (a), and

      • (ii) on or before the day that is one year after the day on which the trust was created. (loi admissible)

    qualifying site

    site admissible

    qualifying site, in respect of a trust, means a site in Canada that is or has been used primarily for, or for any combination of,

    • (a) the operation of a mine,

    • (b) the extraction of clay, peat, sand, shale or aggregates (including dimension stone and gravel),

    • (c) the deposit of waste, or

    • (d) if the trust was created after 2011, the operation of a pipeline. (site admissible)

  • Marginal note:Charging provision

    (2) Every trust that is a qualifying environmental trust at the end of a taxation year (other than a trust that is at that time described by paragraph 149(1)(z.1) or (z.2)) shall pay a tax under this Part for the year equal to the amount determined by the formula

    A × B

    where

    A
    is the trust’s income (computed as if this Act were read without reference to subsections 104(4) to (31) and sections 105 to 107) under Part I for the year; and
    B
    is the QET income tax rate for the year.
  • Marginal note:Return

    (3) Every trust that is a qualifying environmental trust at the end of a taxation year shall file with the Minister on or before its filing-due date for the year a return for the year under this Part in prescribed form containing an estimate of the amount of its tax payable under this Part for the year.

  • Marginal note:Payment of tax

    (4) Every trust shall pay to the Receiver General its tax payable under this Part for each taxation year on or before its balance-due day for the year.

  • Marginal note:Provisions applicable to Part

    (5) Subsections 150(2) and 150(3), sections 152, 158 and 159, subsections 161(1) and 161(11), sections 162 to 167 and Division J of Part I apply to this Part, with such modifications as the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 211.6;
  • 1994, c. 7, Sch. II, s. 173;
  • 1995, c. 3, s. 50;
  • 1998, c. 19, s. 61;
  • 2011, c. 24, s. 69.
 
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