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

Act current to 2015-08-04 and last amended on 2015-08-01. Previous Versions

Marginal note:Refunds for federally registered LSVCCs
  •  (1) If a corporation is required, under subsections 204.82(3) and (4), to pay a tax and a penalty under this Part for a taxation year, it has no monthly deficiency throughout any period of 12 consecutive months (in this section referred to as the “second period”) that begins after the 12-month period in respect of which the tax became payable (in this section referred to as the “first period”) and it so requests in an application filed with the Minister in prescribed form, the Minister shall refund to it an amount equal to the total of the amount that was paid under subsection 204.82(3) and 80% of the amount that was paid under subsection 204.82(4) in respect of the first period on or before the later of

    • (a) the 30th day after receiving the application, and

    • (b) the 60th day after the end of the second period.

  • Marginal note:Refunds of amounts payable to provinces

    (2) Where

    • (a) the government of a province refunds, at any time, an amount to a corporation,

    • (b) the refund is of an amount that had been paid in satisfaction of a particular amount payable in a taxation year of the corporation, and

    • (c) tax was payable under subsection 204.82(5) or (6) by the corporation for a taxation year because the particular amount became payable,

    the corporation is deemed to have paid at that time an amount equal to the refund on account of its tax payable under this Part for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 7, Sch. II, s. 164;
  • 1998, c. 19, s. 54;
  • 1999, c. 22, s. 70;
  • 2000, c. 19, s. 57.
Marginal note:Penalty

 Every corporation that for a taxation year issues an information return described in paragraph 204.81(6)(c) in respect of

  • (a) the issuance of a share when the corporation was a revoked corporation, or

  • (b) a subscription in respect of a share if the share is not issued on or before the day that is 180 days after the day the information return was issued,

is liable to a penalty for the year equal to the amount of the consideration for which the share was or was to be issued.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 7, Sch. II, s. 164.
Marginal note:Penalty tax where venture capital business discontinued

 Where, at a particular time in a taxation year, a particular corporation that is a registered labour-sponsored venture capital corporation or a revoked corporation first discontinues its venture capital business, the particular corporation shall pay a tax under this Part for the year equal to the total of all amounts each of which is the amount in respect of a Class A share of the capital stock of the particular corporation outstanding immediately before the particular time that is determined by the formula

A × B

where

A 
is
  • (a) if the original acquisition of the share was before March 6, 1996 and less than five years before the particular time, 4% of the consideration received by the particular corporation for the issue of the share,

  • (b) if the original acquisition of the share was after March 5, 1996 and less than eight years before the particular time, 1.875% of the consideration received by the particular corporation for the issue of the share, and

  • (c) in any other case, nil; and

B 
is
  • (a) if the original acquisition of the share was before March 6, 1996, the number obtained when the number of whole years throughout which the share was outstanding before the particular time is subtracted from five, and

  • (b) in any other case, the number obtained when the number of whole years throughout which the share was outstanding is subtracted from eight.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2000, c. 19, s. 58.