Income Tax Act

Marginal note:Enhanced capital deduction

• 190.17 (1) For the purpose of subsection 190.1(1.2), the enhanced capital deduction of a corporation for a taxation year is $400,000,000, unless the corporation was related to a financial institution (other than a life insurance corporation) at the end of the year, in which case, subject to subsection 190.17(4), the corporation’s enhanced capital deduction for the year is nil.

• Marginal note:Related financial institution

  (2) A corporation that is a financial institution at any time in a taxation year and that is related to another financial institution (other than a life insurance corporation) at the end of the year may file with the Minister an agreement in prescribed form on behalf of the related group of which the corporation is a member under which an amount that does not exceed $400,000,000 is allocated among the members of the group for the year.

• Marginal note:Minister’s powers

  (3) The Minister may request a corporation that is a financial institution at any time in a taxation year and that is related to any other financial institution (other than a life insurance corporation) at the end of the year to file with the Minister an agreement referred to in subsection 190.17(2) and, if the corporation does not file such an agreement within 30 days after receiving the request, the Minister may allocate an amount that does not exceed $400,000,000 among the members of the related group of which the corporation is a member for the year.

• Marginal note:Least amount allocated

  (4) The least amount allocated for a taxation year to a member of a related group under an agreement described in subsection 190.17(2) or by the Minister under subsection 190.17(3) is the enhanced capital deduction for the taxation year of the member, but, if no such allocation is made, the enhanced capital deduction of the member for the year is nil.

• Marginal note:Provisions applicable to Part

  (5) Subsections 190.15(5) and 190.15(6) apply to this section with such modifications as the circumstances require.