I-3 - Taxation Act

Section 1029.8.36.129 Disposition versions

2010-04-20

1029.8.36.129. (Repealed).

2001, c. 51, s. 189; 2003, c. 9, s. 334; 2010, c. 5, s. 158.

2006-03-01

1029.8.36.129. A corporation operating an international financial centre in a taxation year that carries out a qualified international financial transaction in that year in respect of a foreign investment fund and encloses the prescribed form containing the prescribed information with the fiscal return the corporation is required to file for the year under section 1000 is deemed, subject to the third paragraph and section 1029.8.36.130, to have paid to the Minister on the corporation’s balance-due day for the year, on account of its tax payable for that year under this Part, an amount equal to the lesser of

(a)  50% of the amount by which

i.  the aggregate of all amounts each of which is a qualified solicitation expenditure in respect of the fund made by the corporation for the year or either of the two preceding taxation years, exceeds

ii.  200% of the amount by which the aggregate of all amounts each of which is the amount that the corporation is deemed to have paid to the Minister in respect of the fund under this section for either of the two preceding taxation years referred to in subparagraph i exceeds the aggregate of all amounts each of which is the amount that the corporation would have been deemed to have paid to the Minister in respect of the fund under this section for one of those two preceding taxation years if no qualified solicitation expenditure in respect of the fund made by the corporation for those two preceding taxation years and no repayment under section 1029.8.36.143 relating to such qualified solicitation expenditure in respect of the fund made by the corporation had been taken into account;

(b)  25% of the corporation’s qualified gross revenue for the year, from a qualified international financial transaction in respect of the fund;

(c)  subject to section 1029.8.36.139, $150,000; and

(d)  where the corporation is a member of an associated group at the end of the year, the amount attributed to it for the year in respect of the fund, pursuant to the agreement referred to in section 1029.8.36.135 or, where the corporation is not a member of an associated group at the end of the year, the amount by which $300,000 exceeds the aggregate of all amounts each of which is an amount deemed under this section or section 1029.8.36.132 to have been paid to the Minister in respect of the fund

i.  by the corporation for a preceding taxation year,

ii.  where the corporation is a member of an associated group in the year, by another member corporation of the group, in the second paragraph referred to as the “particular corporation”, for a taxation year ending in the year or for any taxation year preceding that year, or by a taxpayer who is a member at the end of a fiscal period of a member partnership of the group, in the second paragraph referred to as the “particular partnership”, for a taxation year in which that fiscal period ended and ending in the year or for any taxation year preceding that year, or

iii.  where the corporation was a member of an associated group in a preceding taxation year, by another corporation, other than a corporation referred to in subparagraph ii, that was a member corporation of the group, in the second paragraph referred to as the “particular corporation”, for a taxation year ending in that preceding taxation year or for any taxation year preceding that year, or by a taxpayer, other than a taxpayer referred to in subparagraph ii, who was a member at the end of a fiscal period of a member partnership of the group, in the second paragraph referred to as the “particular partnership”, for a taxation year in which that fiscal period ended and ending in that preceding taxation year or for any taxation year preceding that year.

For the purposes of subparagraph iii of subparagraph d of the first paragraph, where a particular corporation or a particular partnership was a member of a particular associated group in a preceding taxation year, of which the corporation was not a member, the corporation is deemed to be a member of the particular associated group in the preceding taxation year.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

2001, c. 51, s. 189; 2003, c. 9, s. 334.