• Marginal note:Additional deduction

  (3) There may be deducted from the tax otherwise payable under this Part for a taxation year by a corporation that was, throughout the year, a credit union, an amount equal to the amount determined by the formula

  A × B × C

  where

  A

  is the rate that would, if subsection 125(1.1) applied to the corporation for the year, be its small business deduction rate for the year within the meaning assigned by that subsection,

  B

  is the amount, if any, determined by the formula

  D – E

  where

  D

  is the lesser of

  • (a) the corporation’s taxable income for the year, and

  • (b) the amount, if any, by which 4/3 of the corporation’s maximum cumulative reserve at the end of the year exceeds the corporation’s preferred-rate amount at the end of the immediately preceding taxation year, and

  E

  is the least of the amounts determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year, and

  C

  is the percentage that is the total of

  • (a) the proportion of 100% that the number of days in the year that are before March 21, 2013 is of the number of days in the year,

  • (b) the proportion of 80% that the number of days in the year that are after March 20, 2013 and before 2014 is of the number of days in the year,

  • (c) the proportion of 60% that the number of days in the year that are in 2014 is of the number of days in the year,

  • (d) the proportion of 40% that the number of days in the year in 2015 is of the number of days in the year,

  • (e) the proportion of 20% that the number of days in the year in 2016 is of the number of days in the year, and

  • (f) if one or more days in the year are after 2016, 0%.

• Marginal note:Beneficiary replacing holder

  (1.5) Any holder of a disability savings plan who was a qualifying person in relation to the beneficiary under the plan at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition “qualifying person” in subsection (1) ceases to be a holder of the plan and the beneficiary becomes the holder of the plan if

• Marginal note:Entity replacing holder

  (1.6) If an entity described in subparagraph (a)(ii) or (iii) of the definition “qualifying person” in subsection (1) is appointed in respect of a beneficiary of a disability savings plan and a holder of the plan was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of that definition,

• Marginal note:Rules applicable in case of dispute

  (1.7) If a dispute arises as a result of an issuer’s acceptance of a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition “qualifying person” in subsection (1) as a holder of a disability savings plan, from the time the dispute arises until the time that the dispute is resolved or an entity becomes the holder of the plan under subsection (1.5) or (1.6), the holder of the plan shall use their best efforts to avoid any reduction in the fair market value of the property held by the plan trust, having regard to the reasonable needs of the beneficiary under the plan.

• (c) the plan provides that, where an entity (other than a qualifying family member in relation to the beneficiary) that is a holder of the plan ceases to be a qualifying person in relation to the beneficiary at any time, the entity ceases at that time to be a holder of the plan;

• (e) if the issuer enters into the plan with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition “qualifying person” in subsection (1),

• Marginal note:Issuer’s liability

  (14) If, after reasonable inquiry, an issuer of a disability savings plan is of the opinion that an individual’s contractual competence to enter into a disability savings plan is in doubt, no action lies against the issuer for entering into a plan, under which the individual is the beneficiary, with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition “qualifying person” in subsection (1).

• (ii) 1/2 of the amount so assessed that is in controversy if

  • (A) the taxpayer is a large corporation (within the meaning assigned by subsection 225.1(8)), or

  • (B) the amount is in respect of a particular amount claimed under section 110.1 or 118.1 and the particular amount was claimed in respect of a tax shelter.

• Marginal note:Partial disposition of appeal

  (2) If an appeal raises more than one issue, the Tax Court of Canada may, with the consent in writing of the parties to the appeal, dispose of a particular issue by

  • (a) dismissing the appeal with respect to the particular issue; or

  • (b) allowing the appeal with respect to the particular issue and

    • (i) varying the assessment, or

    • (ii) referring the assessment back to the Minister for reconsideration and reassessment.

• Marginal note:Disposal of remaining issues

  (3) If a particular issue has been disposed of under subsection (2), the appeal with respect to the remaining issues may continue.

• Marginal note:Appeal to Federal Court of Appeal

  (4) If the Tax Court of Canada has disposed of a particular issue under subsection (2), the parties to the appeal may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada, appeal the disposition to the Federal Court of Appeal as if it were a final judgment of the Tax Court of Canada.

Marginal note:Common questions

• 174. (1) The Minister may apply to the Tax Court of Canada for a determination of a question if the Minister is of the opinion that the question is common to assessments or proposed assessments in respect of two or more taxpayers and is a question of law, fact or mixed law and fact arising out of

  • (a) one and the same transaction or occurrence or series of transactions or occurrences; or

  • (b) substantially similar transactions or occurrences or series of transactions or occurrences.

• Marginal note:Application to Court

  (2) An application under subsection (1)

  • (a) shall set out

    • (i) the question in respect of which the Minister requests a determination,

    • (ii) the names of the taxpayers that the Minister seeks to have bound by the determination of the question, and

    • (iii) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of tax payable by each of the taxpayers named in the application; and

  • (b) shall be served by the Minister on each of the taxpayers named in the application and on any other persons who, in the opinion of the Tax Court of Canada, are likely to be affected by the determination of the question,

    • (i) by sending a copy to each taxpayer so named and each other person so likely to be affected, or

    • (ii) on ex parte application by the Minister, in accordance with the directions of the Court.

• Marginal note:Determination of question by Tax Court

  (3) If the Tax Court of Canada is satisfied that a question set out in an application under this section is common to assessments or proposed assessments in respect of two or more taxpayers who have been served with a copy of the application, the Tax Court of Canada may

  • (a) make an order naming the taxpayers in respect of whom the question will be determined;

  • (b) if one or more of the taxpayers so served has or have appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, make an order joining a party or parties to that or those appeals as it considers appropriate; and

  • (c) proceed to determine the question in such manner as it considers appropriate.

• Marginal note:Determination final and conclusive

  (4) Subject to subsection (4.1), if a question set out in an application under this section is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of tax payable by the taxpayers named in the order made under paragraph (3)(a).

• Marginal note:Appeal

  (4.1) If a question set out in an application under this section is determined by the Tax Court of Canada, an appeal from the determination may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada to the Federal Court of Appeal, be made by

  • (a) the Minister; or

  • (b) any taxpayer named in an order of the Court made under paragraph (3)(a) if

    • (i) the question arises out of one and the same transaction or occurrence or series of transactions or occurrences,

    • (ii) the taxpayer has appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, or

    • (iii) the taxpayer has been granted leave by a judge of the Federal Court of Appeal.

• Marginal note:Binding to appeal

  (4.2) Any taxpayer named in an order made under paragraph (3)(a) in respect of a question is bound by any determination in respect of the question under an appeal made to the Federal Court of Appeal or the Supreme Court of Canada.