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

Marginal note:Refundable tax — CCPC or substantive CCPC

123.3 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation that is a Canadian-controlled private corporation throughout the year — or a substantive CCPC at any time in the year — an amount equal to 10 2/3% of the lesser of

• (a) the corporation’s aggregate investment income for the year (within the meaning assigned by subsection 129(4)), and

• (b) the amount, if any, by which its taxable income for the year exceeds the least of the amounts determined in respect of it for the year under paragraphs 125(1)(a) to (c).