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

Regulations are current to 2017-10-13 and last amended on 2017-07-01. Previous Versions

Tax on 1971 Undistributed Income on Hand

  •  (1) [Repealed, SOR/80-140, s. 3]

  • (2) Any retroactive election by a corporation under subsection 196(1.1) of the Act, in respect of a dividend payable before 1979 in respect of which an election was made under section 83 of the Act, shall be made by filing with the Minister the following documents:

    • (a) the form prescribed by the Minister;

    • (b) where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;

    • (c) where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation; and

    • (d) a schedule showing the computation of the amount, immediately before the time immediately before the specified election referred to in subsection 196(1.1) of the Act was made, of the corporation’s 1971 undistributed income on hand.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/80-140, s. 3;
  • SOR/83-268, s. 4;
  • SOR/94-686, s. 79(F).

 [Repealed, SOR/78-604, s. 2]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-604, s. 2.

Capital Gains Dividends Payable by Mutual Fund Corporations, Investment Corporations and Mortgage Investment Corporations

[SOR/94-686, s. 18(F)]

 Any election under subsection 131(1) of the Act in respect of a dividend payable by a mutual fund corporation or an investment corporation shall be made by filing with the Minister the following documents:

  • (a) the form prescribed by the Minister;

  • (b) where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;

  • (c) where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation;

  • (d) where paragraph (f) is not applicable, a schedule showing the computation of the amount, immediately before the election, of the corporation’s capital gains dividend account; and

  • (e) [Repealed, SOR/88-165, s. 13]

  • (f) where subsection 131(1.1) of the Act is applicable, a schedule showing the computation of the amount, immediately before the earlier of

    • (i) the date the dividend became payable, and

    • (ii) the first day on which any part of the dividend was paid,

    of the corporation’s capital gains dividend account.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-704, s. 1;
  • SOR/83-268, s. 5;
  • SOR/88-165, s. 13;
  • SOR/94-686, ss. 71(F), 79(F).

 Any election under subsection 130.1(4) of the Act in respect of a dividend payable by a mortgage investment corporation shall be made by filing with the Minister the following documents:

  • (a) the documents referred to in paragraphs 2104(a) to (c); and

  • (b) a schedule showing the computation of the capital gains dividend in accordance with paragraph 130.1(4)(a) of the Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/88-165, s. 14;
  • SOR/94-686, ss. 72(F), 79(F).

Capital Gains Dividends Payable by Non-Resident-Owned Investment Corporations

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

 Any election under subsection 133(7.1) of the Act in respect of a dividend payable by a non-resident-owned investment corporation shall be made by filing with the Minister the following documents:

  • (a) the form prescribed by the Minister;

  • (b) where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;

  • (c) where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation;

  • (d) where paragraph (e) is not applicable, a schedule showing the computation of the amount, immediately before the election, of the corporation’s capital gains dividend account; and

  • (e) where subsection 133(7.3) of the Act is applicable, a schedule showing the computation of the amount, immediately before the earlier of

    • (i) the date the dividend became payable, and

    • (ii) the first day on which any part of the dividend was paid,

    of the corporation’s capital gains dividend account.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-704, ss. 2, 3;
  • SOR/83-268, s. 6;
  • SOR/94-686, s. 79(F).

Alternative to Additional Tax on Excessive Elections

 Any election under subsection 184(3) of the Act in respect of a dividend that was paid or payable by a corporation shall be made by

  • (a) filing with the Minister the following documents:

    • (i) a letter stating that the corporation elects under subsection 184(3) of the Act in respect of the said dividend,

    • (ii) where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of

      • (A) their resolution authorizing the election to be made, and

      • (B) their declaration that the election is made with the concurrence of all shareholders who received or were entitled to receive all or any portion of the said dividend and whose addresses were known to the corporation,

    • (iii) where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of

      • (A) the authorization of the making of the election, and

      • (B) the declaration that the election is made with the concurrence of all shareholders who received or were entitled to receive all or any portion of the said dividend and whose addresses were known to the corporation

      by the person or persons legally entitled to administer the affairs of the corporation,

    • (iv) a schedule showing the following information:

      • (A) the date of the notice of assessment of the tax that would, but for the election, have been payable under Part III of the Act,

      • (B) the full amount of the said dividend,

      • (C) the date the said dividend became payable, or the first day on which any part of the said dividend was paid if that day is earlier,

      • (D) the portion, if any, of the said dividend described in paragraph 184(3)(a) of the Act,

      • (E) the portion, if any, of the said dividend that the corporation is claiming for the purposes of an election in respect thereof under subsection 83(1) or (2), 130.1(4) or 131(1) of the Act pursuant to paragraph 184(3)(b) of the Act, and

      • (F) the portion, if any, of the said dividend that is deemed by paragraph 184(3)(c) of the Act to be a separate dividend that is a taxable dividend; and

  • (b) making an election in prescribed manner and prescribed form in respect of any amount claimed under paragraph 184(3)(b) of the Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-347, s. 1;
  • SOR/83-268, s. 7;
  • SOR/88-165, s. 31(F);
  • SOR/94-686, s. 79(F).

Tax-deferred Preferred Series

 The following series of classes of capital stock are hereby prescribed for the purposes of subsection 83(6) of the Act to be tax-deferred preferred series:

  • (a) The Algoma Steel Corporation, Limited, 8% Tax Deferred Preference Shares Series A;

  • (b) Aluminum Company of Canada, Limited, $2.00 Tax Deferred Retractable Preferred Shares;

  • (c) Brascan Limited, 8 1/2% Tax Deferred Preferred Shares Series A;

  • (d) Canada Permanent Mortgage Corporation, 6 3/4% Tax Deferred Convertible Preference Shares Series A; and

  • (e) Cominco Ltd., $2.00 Tax Deferred Exchangeable Preferred Shares Series A.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-604, s. 3.
 
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