Income Tax Act

Version of section 219.1 from 2004-08-31 to 2012-12-13:

Marginal note:Corporate emigration

 Where a taxation year of a corporation is deemed by paragraph 128.1(4)(a) to have ended at any time, the corporation shall, on or before its filing-due date for the year, pay a tax under this Part for the year equal to 25% of the amount, if any, by which

  • (a) the fair market value of all the property owned by the corporation immediately before that time

exceeds the total of

  • (b) the paid-up capital in respect of all the issued and outstanding shares of the capital stock of the corporation immediately before that time,

  • (c) all amounts (other than amounts payable by the corporation in respect of dividends and amounts payable under this section) each of which is a debt owing by the corporation, or an obligation of the corporation to pay an amount, that is outstanding at that time, and

  • (d) where a tax was payable by the corporation under subsection 219(1) or this section for a preceding taxation year that began before 1996 and after the corporation last became resident in Canada, 4 times the total of all amounts that would, but for sections 219.2 and 219.3 and any agreement or convention between the Government of Canada and the government of any other country that has the force of law in Canada, have been so payable.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 219.1;
  • 1994, c. 21, s. 99;
  • 1998, c. 19, s. 220.
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