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

Act current to 2014-04-02 and last amended on 2014-01-01. Previous Versions

Marginal note:Payment by corporation
  •  (1) Subject to subsections (1.1) and (1.5), every corporation shall, in respect of each of its taxation years, pay to the Receiver General

    • (a) either

      • (i) on or before the last day of each month in the year, an amount equal to 1/12 of the total of the amounts estimated by it to be the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the year,

      • (ii) on or before the last day of each month in the year, an amount equal to 1/12 of its first instalment base for the year, or

      • (iii) on or before the last day of each of the first two months in the year, an amount equal to 1/12 of its second instalment base for the year, and on or before the last day of each of the following months in the year, an amount equal to 1/10 of the amount remaining after deducting the amount computed pursuant to this subparagraph in respect of the first two months from its first instalment base for the year; and

    • (b) the remainder of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the year on or before its balance-due day for the year.

  • Marginal note:Special case

    (1.1) A small-CCPC may, in respect of each of its taxation years, pay to the Receiver General

    • (a) one of the following:

      • (i) on or before the last day of each three-month period in the taxation year (or if the period that remains in a taxation year after the end of the last such three-month period is less than three months, on or before the last day of that remaining period), an amount equal to 1/4 of the total of the amounts estimated by it to be the taxes payable by it under this Part and Part VI.1 for the taxation year,

      • (ii) on or before the last day of each three-month period in the taxation year (or if the period that remains in a taxation year after the end of the last such three-month period is less than three months, on or before the last day of that remaining period), an amount equal to 1/4 of its first instalment base for the taxation year, or

      • (iii) on or before the last day

        • (A) of the first period in the taxation year not exceeding three months, an amount equal to 1/4 of its second instalment base for the taxation year, and

        • (B) of each of the following three-month periods in the taxation year (or if the period that remains in a taxation year after the end of the last such three-month period is less than three months, on or before the last day of that remaining period), an amount equal to 1/3 of the amount remaining after deducting the amount computed pursuant to clause (A) from its first instalment base for the taxation year; and

    • (b) the remainder of the taxes payable by it under this Part and Part VI.1 for the taxation year on or before its balance-due day for the taxation year.

  • Marginal note:Small-CCPC

    (1.2) For the purpose of subsection (1.1), a small-CCPC, at a particular time during a taxation year, is a Canadian-controlled private corporation

    • (a) for which the amount determined under subsection (1.3) for the taxation year, or for the preceding taxation year, does not exceed $500,000;

    • (b) for which the amount determined under subsection (1.4) for the taxation year, or for the preceding taxation year, does not exceed $10 million;

    • (c) in respect of which an amount is deducted under section 125 of the Act in computing the corporation’s tax payable for the taxation year or for the preceding taxation year; and

    • (d) that has throughout the 12-month period that ends at the time its last remittance under this section is due,

      • (i) remitted, on or before the day on or before which the amounts were required to be remitted, all amounts that were required to be remitted under subsection 153(1), under Part IX of the Excise Tax Act, under subsection 82(1) of the Employment Insurance Act or under subsection 21(1) of the Canada Pension Plan; and

      • (ii) filed, on or before the day on or before which the returns were required to be filed, all returns that were required to be filed under this Act or under Part IX of the Excise Tax Act.

  • Marginal note:Taxable income — small-CCPC

    (1.3) The amount determined under this subsection in respect of a corporation for a particular taxation year is

    • (a) if the corporation is not associated with another corporation in the particular taxation year, the amount that is the corporation’s taxable income for the particular taxation year; or

    • (b) if the corporation is associated with another corporation in the particular taxation year, the amount that is the total of all amounts each of which is the taxable income of the corporation for the particular taxation year or the taxable income of a corporation with which it is associated in the particular taxation year for a taxation year of that other corporation that ends in the particular taxation year.

  • Marginal note:Taxable capital — small-CCPC

    (1.4) The amount determined under this subsection in respect of a corporation for a particular taxation year is

    • (a) if the corporation is not associated with another corporation in the particular taxation year, the amount that is the corporation’s taxable capital employed in Canada (for the purpose of this subsection, within the meaning assigned by section 181.2 or 181.3, as the case may be) for the particular taxation year; or

    • (b) if the corporation is associated with another corporation in the particular taxation year, the amount that is the total of all amounts each of which is the taxable capital employed in Canada of the corporation for the particular taxation year or the taxable capital employed in Canada of a corporation with which it is associated in the particular taxation year for a taxation year of that other corporation that ends in the particular taxation year.

  • Marginal note:No longer a small-CCPC

    (1.5) Notwithstanding subsection (1), where a corporation, that has remitted amounts in accordance with subsection (1.1), ceases at any particular time in a taxation year to be eligible to remit in accordance with subsection (1.1), the corporation shall pay to the Receiver General, the following amounts for the taxation year,

    • (a) on or before the last day of each month, in the taxation year, that ends after the particular time, either

      • (i) the amount determined by the formula

        (A - B)/C

        where

        A 
        is the total of the amounts estimated by the corporation to be the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year,
        B 
        is the total of all payments payable by the corporation in the taxation year in accordance with subsection (1.1), and
        C 
        is the number of months that end in the taxation year and after the particular time, or
      • (ii) the total of

        • (A) the amount determined by the formula

          (A - B)/C

          where

          A 
          is the corporation’s first instalment base for the taxation year,
          B 
          is the total of all payments payable by the corporation in the taxation year in accordance with subsection (1.1), and
          C 
          is the number of months that end in the taxation year and after the particular time; and
        • (B) the amount obtained when the estimated tax payable by the corporation, if any, under Parts VI and XIII.1 for the taxation year is divided by the number of months that end in the taxation year and after the particular time; and

    • (b) the remainder of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year on or before its balance-due day for the year.

  • Marginal note:Application to SIFT trusts

    (2) Subsections (1), (2.1) and (4) apply to a SIFT trust with any modifications that the circumstances require.

  • Marginal note:$3,000 threshold

    (2.1) A corporation may, instead of paying the instalments required for a taxation year by paragraph (1)(a) or by subsection (1.1), pay to the Receiver General, under paragraph (1)(b), the total of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year, if

    • (a) the total of the taxes payable under this Part and Parts VI, VI.1 and XIII.1 by the corporation for the taxation year (determined before taking into consideration the specified future tax consequences for the year) is equal to or less than $3,000; or

    • (b) the corporation’s first instalment base for the year is equal to or less than $3,000.

  • Marginal note:Reduced instalments

    (3) Notwithstanding subsection (1) and (1.5), the amount payable under subsection (1) or (1.5) for a taxation year by a corporation to the Receiver General on or before the last day of any month in the year is deemed to be the amount, if any, by which

    • (a) the amount so payable as determined under that subsection for the month

    exceeds

    • (b) where the corporation is neither a mutual fund corporation nor a non-resident-owned investment corporation, 1/12 of the corporation’s dividend refund (within the meaning assigned by subsection 129(1)) for the year,

    • (c) if the corporation is a mutual fund corporation, 1/12 of the total of

      • (i) the corporation’s capital gains refund (within the meaning assigned by section 131) for the year, and

      • (ii) the amount that, because of subsection 131(5) or (11), is the corporation’s dividend refund (within the meaning assigned by section 129) for the year,

    • (d) where the corporation is a non-resident-owned investment corporation, 1/12 of the corporation’s allowable refund (within the meaning assigned by section 133) for the year, and

    • (e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the year.

  • Marginal note:Amount of payment — three-month period

    (3.1) Notwithstanding subsection (1.1), the amount payable under subsection (1.1) for a taxation year by a corporation to the Receiver General on or before the last day of any period in the year is deemed to be the amount, if any, by which

    • (a) the amount so payable as determined under that subsection for the period

    exceeds the total of

    • (b) 1/4 of the corporation’s dividend refund (within the meaning assigned by subsection 129(1)) for the taxation year, and

    • (c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the taxation year.

  • Marginal note:Definitions

    (4) In this section, “first instalment base” and “second instalment base” of a corporation for a taxation year have the meanings prescribed by regulation.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 157;
  • 1994, c. 7, Sch. II, s. 130, Sch. VI, s. 7, Sch. VIII, s. 94;
  • 1995, c. 3, s. 47;
  • 1996, c. 21, s. 41;
  • 1997, c. 25, s. 49;
  • 1998, c. 19, s. 184;
  • 2001, c. 17, s. 153;
  • 2002, c. 9, s. 41;
  • 2003, c. 15, s. 115;
  • 2007, c. 35, s. 51;
  • 2009, c. 2, s. 59;
  • 2013, c. 34, s. 311, c. 40, s. 69.