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

Marginal note:Obligation to pay minimum tax

127.5 Notwithstanding any other provision of this Act but subject to subsection 120.4(3) and section 127.55, where the amount that, but for section 120, would be determined under Division E to be an individual’s tax payable for a taxation year is less than the amount determined under paragraph (a) in respect of the individual for the year, the individual’s tax payable under this Part for the year is the total of

• (a) the amount, if any, by which

  • (i) the individual’s minimum amount for the year determined under section 127.51

  exceeds

  • (ii) the individual’s special foreign tax credit determined under section 127.54 for the year, and

• (b) the amount, if any, required by section 120 to be added to the individual’s tax otherwise payable under this Part for the year.