I-3 - Taxation Act

Section 1027.4 Disposition versions

2009-06-04

1027.4. In this division,

“eligible instalment day” of a qualified corporation means a day in the calendar year 2008 on or before which an instalment to be paid by the corporation in respect of the corporation’s tax payable under this Part for the taxation year that includes that day would become payable if this Act were read without reference to this division;

“manufacturing corporation” for a taxation year means a corporation whose gross income from its manufacturing or processing activities for the preceding taxation year exceeds 50% of the corporation’s total gross income for that preceding taxation year;

“manufacturing corporation operating mainly in the forest industry” for a particular taxation year means a manufacturing corporation for the particular year that meets the following conditions:

(a)  the activities of the corporation for the particular year consist in any combination of

i.  sawmill and wood preservation activities included in the group described under code 3211 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada,

ii.  activities involved in the manufacturing of veneer, plywood and engineered wood products included in the group described under code 3212 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada, excluding activities involved in the manufacturing of structural wood products included in the class described under code 321215 of that publication, and

iii.  activities relating to pulp, paper and paperboard mills included in the group described under code 3221 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada; and

(b)  the corporation’s gross income from activities described in paragraph a for the taxation year that precedes the particular year exceeds 50% of the corporation’s total gross income for that preceding taxation year;

“manufacturing or processing activities” of a corporation means activities included in the groups described under codes 31 to 33 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada;

“qualified corporation” for a particular taxation year means

(a)  a manufacturing corporation operating mainly in the forest industry for the particular year; and

(b)  a manufacturing corporation for the particular year, other than a corporation described in paragraph a, the paid-up capital of which determined for the taxation year preceding the particular year does not exceed,

i.  if the corporation is not associated with any other corporation in the particular year, $75,000,000, and

ii.  if the corporation is associated with one or more other corporations in the particular year, the amount by which $75,000,000 exceeds the aggregate of the paid-up capital of each of those other corporations determined either for that other corporation’s last taxation year that ended in the 12 months that precede the beginning of the particular year, or, if the other corporation is in its first fiscal period, on the basis of its financial statements prepared at the beginning of that fiscal period in accordance with generally accepted accounting principles.

For the purposes of paragraph b of the definition of “qualified corporation” in the first paragraph, the paid-up capital of a corporation is its paid-up capital determined in accordance with Title I of Book III of Part IV.

2009, c. 15, s. 192.