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

Regulations are current to 2017-09-27 and last amended on 2017-07-01. Previous Versions

PART VNon-Resident-Owned Investment Corporations

[SOR/94-686, s. 79(F)]

Elections

 Any election by a corporation to be taxed under section 133 of the Act shall be made by forwarding by registered mail to the Director — Taxation at the District Office of the Department of National Revenue, Taxation that serves the area in which the head office of the corporation is located the following documents:

  • (a) a letter stating that the corporation elects to be taxed under the said section 133;

  • (b) a certified copy of the resolution of the directors of the corporation authorizing the election to be made; and

  • (c) a certified list showing

    • (i) the names and addresses of the registered shareholders and the number of shares of each class held by each,

    • (ii) the names and addresses of the holders of the corporation’s bonds, debentures, or other funded indebtedness, if any, and

    • (iii) the names and addresses of the beneficial owners of shares, bonds, debentures, or other funded indebtedness in cases where the registered shareholders or holders, as the case may be, are not the beneficial owners.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/83-268, s. 1;
  • SOR/94-686, ss. 7(F), 79(F).

Elections Revoked

 Any election to be taxed under section 133 of the Act shall be revoked by a corporation by forwarding by registered mail to the Deputy Minister of National Revenue for Taxation at Ottawa the following documents in duplicate:

  • (a) a letter stating that the corporation revokes its election; and

  • (b) a certified copy of the resolution of the directors of the corporation authorizing the election to be revoked.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 79(F).

Certificates of Changes of Ownership

 A corporation which is taxable under section 133 of the Act shall attach to its return of income required to be filed under subsection 150(1) of the Act, a certified statement showing any changes during the taxation year in the information referred to in paragraph 500(c).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 79(F).

 [Repealed, SOR/80-140, s. 1]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/80-140, s. 1.

PART VIElections

 For the purposes of paragraphs 220(3.2)(a) and (b) of the Act, the following are prescribed provisions:

  • (a) section 21 of the Act;

  • (b) subsections 13(4), (7.4) and (29), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act;

  • (c) paragraphs 12(2.2)(b), 66.7(7)(c), (d) and (e) and (8)(c), (d) and (e), 80.01(4)(c), 86.1(2)(f) and 128.1(4)(d), (6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act;

  • (d) subsections 1103(1), (2) and (2d) and 5907(2.1) of these Regulations.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/92-265, s. 1;
  • SOR/93-530, s. 1;
  • SOR/95-367, s. 1;
  • SOR/96-128, s. 1;
  • SOR/97-471, s. 1;
  • SOR/99-17, s. 7;
  • SOR/2001-216, s. 2;
  • SOR/2002-144, s. 1;
  • SOR/2005-123, s. 3;
  • SOR/2005-185, s. 3;
  • SOR/2006-200, s. 1;
  • SOR/2010-96, s. 1;
  • 2013, c. 34, s. 382, c. 40, s. 98;
  • 2016, c. 12, s. 76.

PART VIILogging Taxes on Income

[SOR/78-377, s. 1]

Logging

  •  (1) Except as provided in subsection (2), for the purposes of paragraph 127(2)(a) of the Act income for the year from logging operations in the province means the aggregate of

    • (a) where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer and the logs so obtained are sold by the taxpayer in the province before or on delivery to a sawmill, pulp or paper plant or other place for processing logs, the taxpayer’s income for the year from the sale, other than any portion thereof that was included in computing the taxpayer’s income from logging operations in the province for a previous year;

    • (b) where standing timber in the province or the right to cut standing timber in the province is sold by the taxpayer, the taxpayer’s income for the year from the sale, other than any portion thereof that was included in computing the taxpayer’s income from logging operations in the province for a previous year;

    • (c) where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer, if the logs so obtained are

      • (i) exported from the province and are sold by him prior to or on delivery to a sawmill, pulp or paper plant or other place for processing logs, or

      • (ii) exported from Canada,

      the amount computed by deducting from the value, as determined by the province, of the logs so exported in the year, the aggregate of the costs of acquiring, cutting, transporting and selling the logs; and

    • (d) where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer, if the logs are processed by the taxpayer or by a person on his behalf in a sawmill, pulp or paper plant or other place for processing logs in Canada, the income of the taxpayer for the year from all sources minus the aggregate of

      • (i) his income from sources other than logging operations carried on in Canada and other than the processing in Canada by him or on his behalf and sale by him of logs, timber and products produced therefrom,

      • (ii) each amount included in the aggregate determined under this subsection by virtue of paragraph (a), (b) or (c), and

      • (iii) an amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of logs or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after making the deductions under subparagraphs (i) and (ii), 65 per cent of the income so remaining or, if the amount so determined is less than 35 per cent of the income so remaining, 35 per cent of the income so remaining.

  • (2) Where the taxpayer cuts standing timber or acquires logs cut from standing timber in more than one province, for the purposes of paragraph 127(2)(a) of the Act income for the year from logging operations in the province means the aggregate of

    • (a) the amounts determined in respect of that province in accordance with paragraphs (1)(a), (b) and (c); and

    • (b) where the logs are processed by the taxpayer or by a person on his behalf in a sawmill, pulp or paper plant or other place for processing logs in Canada, an amount equal to the proportion of the income of the taxpayer for the year from all sources minus the aggregate of

      • (i) his income from sources other than logging operations carried on in Canada and other than the processing in Canada by him or on his behalf and sale by him of logs, timber and products produced therefrom,

      • (ii) the aggregate of amounts determined in respect of each province in accordance with paragraphs (1)(a), (b) and (c), and

      • (iii) an amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of logs or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after making the deductions under subparagraphs (i) and (ii), 65 per cent of the income so remaining or, if the amount so determined is less than 35 per cent of the income so remaining, 35 per cent of the income so remaining,

      that

      • (iv) the quantity of standing timber cut in the province in the year by the taxpayer and logs cut from standing timber in the province acquired by the taxpayer in the year,

      is of

      • (v) the total quantity of standing timber cut and logs acquired in the year by the taxpayer.

  • (3) For the purpose of the definition logging tax in subsection 127(2) of the Act, each of the following is declared to be a tax of general application on income from logging operations:

    • (a) the tax imposed by the Province of British Columbia under the Logging Tax Act, R.S.B.C. 1996, c. 277; and

    • (b) the tax imposed by the Province of Quebec under Part VII of the Taxation Act, R.S.Q., c. I-3.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/83-20, s. 1;
  • SOR/87-668, s. 1;
  • SOR/92-516, s. 1;
  • SOR/2010-93, s. 10.

 [Repealed, SOR/78-377, s. 2]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-377, s. 2.

PART VIIINon-Resident Taxes

Registered Non-Resident Insurers

 Subsections 215(1), (2) and (3) of the Act do not apply to amounts paid or credited to a registered non-resident insurer.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/79-424, s. 1;
  • SOR/2009-302, s. 5.
 
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