I-3 - Taxation Act

Section 1049.14.0.2 Disposition versions

2007-11-07

1049.14.0.2. Every qualified cooperative or qualified federation of cooperatives, within the meaning of section 965.39.1, that, in respect of a fiscal period ended in a particular calendar year in which it issued qualifying securities, within the meaning of that section, or in the 12-month period that precedes the particular year, pays, otherwise than in the form of shares, a patronage dividend greater than 33 1/3% of its operating surplus or surplus earnings, incurs a penalty equal to the lesser of

(a)  30% of the proceeds of the issue of qualifying securities for the particular year; and

(b)  the aggregate of

i.  30% of the portion of the patronage dividend, otherwise than in the form of shares, that exceeds 33 1/3% of the operating surplus or surplus earnings, such portion being in this subparagraph b referred to as the “excess patronage dividend”, paid in respect of a fiscal period that ended in the particular year,

ii.  in the case where no qualifying securities were issued in the 12-month period that precedes the particular year, 30% of the excess patronage dividend paid in respect of a fiscal period that ended in the 12-month period that precedes the particular year, and

iii.  in any other case, the amount by which 30% of the excess patronage dividend paid in respect of a fiscal period that ended in the 24-month period that precedes the particular year exceeds the aggregate of the penalties relating to the payment of a patronage dividend incurred under this section in respect of the issue of qualifying securities in the 24-month period that precedes the particular year, up to 30% of the excess patronage dividend paid in respect of a fiscal period that ended in the 12-month period that precedes the particular year.

2006, c. 37, s. 51; 2007, c. 12, s. 219.

2006-12-06

1049.14.0.2. Every qualified cooperative or qualified federation of cooperatives, within the meaning of section 965.39.1, that, in respect of a fiscal period ended in a particular calendar year in which it issued qualifying securities, within the meaning of that section, or in the 12-month period that precedes the particular year, pays, otherwise than in the form of common shares, a patronage dividend greater than 33 1/3 % of its operating surplus or surplus earnings, incurs a penalty equal to the lesser of

(a)  30 % of the proceeds of the issue of qualifying securities for the particular year; and

(b)  the aggregate of

i.  30 % of the portion of the patronage dividend, otherwise than in the form of shares, that exceeds 33 1/ % of the operating surplus or surplus earnings, such portion being in this subparagraph b referred to as the “excess patronage dividend”, paid in respect of a fiscal period that ended in the particular year,

ii.  in the case where no qualifying securities were issued in the 12-month period that precedes the particular year, 30 % of the excess patronage dividend paid in respect of a fiscal period that ended in the 12-month period that precedes the particular year, and

iii.  in any other case, the amount by which 30 % of the excess patronage dividend paid in respect of a fiscal period that ended in the 24-month period that precedes the particular year exceeds the aggregate of the penalties relating to the payment of a patronage dividend incurred under this section in respect of the issue of qualifying securities in the 24-month period that precedes the particular year, up to 30 % of the excess patronage dividend paid in respect of a fiscal period that ended in the 12-month period that precedes the particular year.

2006, c. 37, s. 51.