Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2015-08-04 and last amended on 2015-07-01. Previous Versions

PART LIIIINSTALMENT BASE

[SOR/88-165, s. 25(F)]

Individuals

 For the purposes of subsections 155(2), 156(3) and 161(9) of the Act, the instalment base of an individual for a taxation year is the amount by which

  • (a) the individual’s tax payable under Part I of the Act for the year, determined before taking into consideration the specified future tax consequences for the year,

exceeds

  • (b) the amount deemed by subsection 120(2) of the Act to have been paid on account of the individual’s tax under Part I of the Act for the year, determined before taking into consideration the specified future tax consequences for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-325, s. 1;
  • SOR/81-855, s. 1;
  • SOR/85-696, s. 15;
  • SOR/86-1092, s. 15;
  • SOR/88-165, s. 26(F);
  • SOR/99-92, s. 1.

Corporations Under Part I of the Act

[SOR/94-686. s. 79(F)]
  •  (1) Subject to subsections (6) and (8), for the purposes of subsections 157(4) and 161(9) of the Act, the first instalment base of a corporation for a particular taxation year means the product obtained when the aggregate of

    • (a) the tax payable under Part I of the Act by the corporation for its taxation year preceding the particular year, and

    • (b) the total of the taxes payable by the corporation under Parts VI, VI.1 and XIII.1 of the Act for its taxation year preceding the particular year

    is multiplied by the ratio that 365 is of the number of days in that preceding year.

  • (2) Subject to subsections (6) and (8), for the purposes of subsections 157(4) and 161(9) of the Act, the “second instalment base” of a corporation for a particular taxation year means the amount of the first instalment base of the corporation for the taxation year immediately preceding the particular year.

  • (3) For the purposes of subsection (1), where the number of days in the taxation year of a corporation immediately preceding the particular taxation year referred to therein is less than 183, the amount determined for the corporation under that subsection shall be the greater of

    • (a) the amount otherwise determined for it under subsection (1); and

    • (b) the amount that would be determined for it under subsection (1) if the reference in that subsection to “its taxation year preceding the particular year” were read as a reference to “its last taxation year, preceding the particular year, in which the number of days exceeds 182”.

  • (4) Notwithstanding subsections (1) and (2), for the purposes of subsections 157(4) and 161(9) of the Act,

    • (a) where a particular taxation year of a new corporation that was formed as a result of an amalgamation (within the meaning assigned by section 87 of the Act) is its first taxation year,

      • (i) its “first instalment base” for the particular year means the total of all amounts each of which is equal to the product obtained when the total of

        • (A) the tax payable under Part I of the Act, and

        • (B) the total of the taxes payable under Parts VI, VI.1 and XIII.1 of the Act

        by a predecessor corporation (as defined in section 87 of the Act) for its last taxation year is multiplied by the ratio that 365 is to the number of days in that year, and

      • (ii) its “second instalment base” for the particular year means the aggregate of all amounts each of which is an amount equal to the amount of the first instalment base of a predecessor corporation for its last taxation year; and

    • (b) where a particular taxation year of a new corporation referred to in paragraph (a) is its second taxation year,

      • (i) its “first instalment base” for the particular year means

        • (A) where the number of days in its first taxation year is greater than 182, the amount that would, but for this subsection, be determined under subsection (1) for the year, and

        • (B) in any other case, the greater of the amount that would, but for this subsection, be determined under subsection (1) for the year and its first instalment base for its first taxation year, and

      • (ii) its “second instalment base” for the particular year means the amount of the first instalment base of the new corporation for its first taxation year.

  • (5) For the purposes of subsection (4), where the number of days in the last taxation year of a predecessor corporation is less than 183, the amount determined under subparagraph (4)(a)(i) in respect of the predecessor corporation shall be the greater of

    • (a) the amount otherwise determined under subparagraph (4)(a)(i) in respect of the predecessor corporation; and

    • (b) the amount of the first instalment base of the predecessor corporation for its last taxation year.

  • (6) Subject to subsection (7), where a subsidiary within the meaning of subsection 88(1) of the Act is winding up, and, at a particular time in the course of the winding up, all or substantially all of the property of the subsidiary has been distributed to a parent within the meaning of subsection 88(1) of the Act, the following rules apply:

    • (a) there shall be added to the amount of the parent’s first instalment base for its taxation year that includes the particular time the amount of the subsidiary’s first instalment base for its taxation year that includes the particular time;

    • (b) there shall be added to the amount of the parent’s second instalment base for its taxation year that includes the particular time the amount of the subsidiary’s second instalment base for its taxation year that includes the particular time;

    • (c) there shall be added to the amount of the parent’s first instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount that is the proportion of the subsidiary’s first instalment base for its taxation year referred to in paragraph (a) that

      • (i) the number of complete months that ended at or before the particular time in the taxation year of the parent that includes the particular time

      is of

      • (ii) 12; and

    • (d) there shall be added to the amount of the parent’s second instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount of the subsidiary’s first instalment base for its taxation year that includes the particular time.

  • (7) The amount of an instalment of tax for the taxation year referred to in paragraphs (6)(a) and (b) that a parent is deemed under subsection 161(4.1) of the Act to have been liable to pay before the particular time referred to in subsection (6) shall be determined as if subsection (6) were not applicable in respect of a distribution of property described in that subsection occurring after the day on or before which the instalment was required to be paid.

  • (8) Subject to subsection (9), if at a particular time a corporation (in this subsection referred as the “transferor”) has disposed of all or substantially all of its property to another corporation with which it was not dealing at arm’s length (in this subsection and subsection (9) referred to as the “transferee”) and subsection 85(1), (2) or 142.7(3) of the Act applied in respect of the disposition of any of the property, the following rules apply:

    • (a) there shall be added to the amount of the transferee’s first instalment base for its taxation year that includes the particular time the amount of the transferor’s first instalment base for its taxation year that includes the particular time;

    • (b) there shall be added to the amount of the transferee’s second instalment base for its taxation year that includes the particular time the amount of the transferor’s second instalment base for its taxation year that includes the particular time;

    • (c) there shall be added to the amount of the transferee’s first instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount that is the proportion of the transferor’s first instalment base for its taxation year referred to in paragraph (a) that

      • (i) the number of complete months that ended at or before the particular time in the taxation year of the transferee that includes the particular time

      is of

      • (ii) 12; and

    • (d) there shall be added to the amount of the transferee’s second instalment base for its taxation year immediately following its taxation year referred to in paragraph (a) the amount of the transferor’s first instalment base for its taxation year that includes the particular time.

  • (9) The amount of an instalment of tax for the taxation year referred to in paragraphs (8)(a) and (b) that a transferee is deemed under subsection 161(4.1) of the Act to have been liable to pay before the particular time referred to in subsection (8) shall be determined as if subsection (8) were not applicable in respect of a disposition of property described in that subsection occurring after the day on or before which the instalment was required to be paid.

  • (10) For the purpose of this section, tax payable under Part I, VI or XIII.1 of the Act by a corporation for a taxation year means the corporation’s tax payable for the year under the relevant Part, determined before taking into consideration the specified future tax consequences for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-325, s. 2;
  • SOR/81-855, s. 1;
  • SOR/84-948, s. 14;
  • SOR/85-696, s. 16;
  • SOR/88-165, s. 27;
  • SOR/89-409, s. 3;
  • SOR/94-298, s. 1;
  • SOR/94-686, s. 79(F);
  • SOR/99-92, s. 2;
  • SOR/2009-302, s. 10.