Income Tax Act

Marginal note:Definitions

• 123.4 (1) The definitions in this subsection apply in this section.

  CCPC rate reduction percentage

  CCPC rate reduction percentage[Repealed, 2003, c. 15, s. 78(1)]

  full rate taxable income

  revenu imposable au taux complet

  full rate taxable income of a corporation for a taxation year is

  • (a) if the corporation is not a corporation described in paragraph (b) or (c) for the year, the amount by which the corporation’s taxable income for the year (or, for greater certainty, if the corporation is non-resident, its taxable income earned in Canada for the year) exceeds the total of

    • (i) if an amount is deducted under subsection 125.1(1) from the corporation’s tax otherwise payable under this Part for the year, the amount obtained by dividing the amount so deducted by the corporation’s general rate reduction percentage for the taxation year,

    • (ii) if an amount is deducted under subsection 125.1(2) from the corporation’s tax otherwise payable under this Part for the year, the amount determined, in respect of the deduction, by the formula in that subsection, and

    • (iii) [Repealed, 2003, c. 28, s. 12(2)]

    • (iv) if the corporation is a credit union throughout the year, 100/16 of the amount, if any, deducted under subsection 137(3) from the corporation’s tax otherwise payable under this Part for the year;

  • (b) if the corporation is a Canadian-controlled private corporation throughout the year, the amount by which the corporation’s taxable income for the year exceeds the total of

    • (i) the amounts that would, if paragraph (a) applied to the corporation, be determined under subparagraphs (a)(i) to (iv) in respect of the corporation for the year,

    • (ii) 100/16 of the amount, if any, deducted under subsection 125(1) from the corporation’s tax otherwise payable under this Part for the year, and

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

    • (iv) [Repealed, 2003, c. 15, s. 78(2)]

  • (c) if the corporation is throughout the year an investment corporation, a mortgage investment corporation or a mutual fund corporation, nil. (revenu imposable au taux complet)

  general rate reduction percentage

  pourcentage de réduction du taux général

  general rate reduction percentage of a corporation for a taxation year is the total of

  • (a) that proportion of 7% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year,

  • (b) that proportion of 7.5% that the number of days in the taxation year that are in 2008 is of the number of days in the taxation year,

  • (c) that proportion of 8% that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year, and

  • (d) that proportion of 9% that the number of days in the taxation year that are after 2009 is of the number of days in the taxation year. (pourcentage de réduction du taux général)

• Marginal note:General deduction from tax

  (2) There may be deducted from a corporation’s tax otherwise payable under this Part for a taxation year the product obtained by multiplying the corporation’s general rate reduction percentage for the year by the corporation’s full rate taxable income for the year.

• (3) [Repealed, 2003, c. 15, s. 78(5)]