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

Marginal note:Deduction from corporation tax

• 124 (1) There may be deducted from the tax otherwise payable by a corporation under this Part for a taxation year an amount equal to 10% of the corporation’s taxable income earned in the year in a province.

• Marginal note:Crown agents

  (3) Notwithstanding subsection 124(1), no deduction may be made under this section from the tax otherwise payable under this Part for a taxation year by a corporation in respect of any taxable income of the corporation for the year that is not, because of an Act of Parliament, subject to tax under this Part or by a prescribed federal Crown corporation that is an agent of Her Majesty.

• Marginal note:Definitions

  (4) In this section,

  province

  province includes the Newfoundland offshore area and the Nova Scotia offshore area; (province)

  taxable income earned in the year in a province

  taxable income earned in the year in a province means the amount determined under rules prescribed for the purpose by regulations made on the recommendation of the Minister of Finance. (revenu imposable gagné au cours de l’année dans une province)