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

Regulations are current to 2015-03-31 and last amended on 2015-03-13. Previous Versions

PART XLBORROWED MONEY COSTS

 [Repealed, SOR/81-251, s. 1]

Interest on Insurance Policy Loans

 For the purposes of subsection 20(2.1) of the Act, the amount of interest to be verified by the insurer in respect of a taxpayer shall be verified in prescribed form no later than the last day on which the taxpayer is required to file his return of income under section 150 of the Act for the taxation year in respect of which the interest was paid.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/79-142, s. 2;
  • SOR/79-488, s. 1;
  • SOR/84-224, s. 1.

PART XLIREPRESENTATION EXPENSES

 For the purposes of subsection 20(9) of the Act, an election shall be made by filing with the Minister the following documents in duplicate:

  • (a) a letter from the taxpayer specifying the amount in respect of which the election is being made; and

  • (b) where the taxpayer is a corporation, a certified copy of the resolution of the directors authorizing the election to be made.

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

PART XLIIVALUATION OF ANNUITIES AND OTHER INTERESTS

 For the purposes of subparagraph 115E(f)(i) of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), the value of any income right, annuity, term of years, life or other similar estate or interest in expectancy shall be determined in accordance with the rules and standards, including standards as to mortality and interest, as are prescribed by the Estate Tax Regulations pursuant to the provisions of subparagraph 58(1)(s)(i) of the Estate Tax Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 48.

PART XLIIIINTEREST RATES

Interpretation

 For the purposes of this Part, “quarter” means any of the following periods in a calendar year:

  • (a) the period beginning on January 1 and ending on March 31;

  • (b) the period beginning on April 1 and ending on June 30;

  • (c) the period beginning on July 1 and ending on September 30; and

  • (d) the period beginning on October 1 and ending on December 31. (trimestre)

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-63, s. 1;
  • SOR/78-909, s. 2;
  • SOR/79-958, s. 1;
  • SOR/80-931, s. 1;
  • SOR/82-20, s. 1;
  • SOR/82-322, s. 1;
  • SOR/82-598, s. 1;
  • SOR/82-1097, s. 1;
  • SOR/83-237, s. 1;
  • SOR/83-496, s. 1;
  • SOR/84-372, s. 1;
  • SOR/85-696, s. 11;
  • SOR/86-488, s. 7;
  • SOR/87-639, s. 1.

Prescribed Rate of Interest

 Subject to section 4302, for the purposes of

  • (a) every provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General, the prescribed rate in effect during any particular quarter is the total of

    • (i) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and

    • (ii) 4 per cent;

  • (b) every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister to a taxpayer, the prescribed rate in effect during any particular quarter is the total of

    • (i) the rate determined under subparagraph (a)(i) in respect of the particular quarter, and

    • (ii) if the taxpayer is a corporation, zero per cent, and in any other case, 2 per cent;

  • (b.1) subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; and

  • (c) every other provision of the Act in which reference is made to a prescribed rate of interest or to interest at a prescribed rate, the prescribed rate in effect during any particular quarter is the rate determined under subparagraph (a)(i) in respect of the particular quarter.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/84-372, s. 2;
  • SOR/87-639, s. 1;
  • SOR/89-462, s. 1;
  • SOR/95-285, s. 1;
  • SOR/97-557, s. 4;
  • 2010, c. 12, s. 23;
  • 2012, c. 31, s. 65.