Versions of s. 89(8)

I-3.3 — Income Tax Act · 2 versions · View current text

Historical text comes from the Justice Laws point-in-time corpus and is unofficial — not the official version.

2019-01-01 to present available View Source

If, in a particular taxation year, a corporation is neither a Canadian-controlled private corporation nor a deposit insurance corporation but was, in its preceding taxation year, a Canadian-controlled private corporation or a deposit insurance corporation, there shall be included in computing the corporation’s low rate income pool at any time in the particular taxation year the amount determined by the formula A + B + C - D - E - F - G - H where A is the total of all amounts each of which is the cost amount to the corporation of a property immediately before the end of its preceding taxation year; B is the amount of any money of the corporation on hand immediately before the end of its preceding taxation year; C is the amount, if any, by which the total of all amounts that, if the corporation had had unlimited income for its preceding taxation year from each business carried on, and from each property held, by it in that preceding taxation year and had realized an unlimited amount of capital gains for that preceding taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that preceding taxation year exceeds the total of all amounts deducted under subsection 111(1) in computing the corporation’s taxable income for its preceding taxation year; D is the total of all amounts each of which is the amount of any debt owing by the corporation, or of any other obligation of the corporation to pay any amount, that was outstanding immediately before the end of its preceding taxation year; E is the paid up capital, immediately before the end of its preceding taxation year, of all of the issued and outstanding shares of the capital stock of the corporation; F is the total of all amounts each of which is a reserve deducted in computing the corporation’s income for its preceding taxation year; G is if the corporation is not a private corporation in the particular taxation year, the corporation’s capital dividend account, if any, immediately before the end of its preceding taxation year, and in any other case, nil; and H is the positive or negative amount determined by the formula I - J where I is the corporation’s general rate income pool at the end of its preceding taxation year, and J is the amount, if any, by which the total of all amounts each of which is an eligible dividend paid by the corporation in its preceding taxation year exceeds the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year.

Full text

If, in a particular taxation year, a corporation is neither a Canadian-controlled private corporation nor a deposit insurance corporation but was, in its preceding taxation year, a Canadian-controlled private corporation or a deposit insurance corporation, there shall be included in computing the corporation’s low rate income pool at any time in the particular taxation year the amount determined by the formula A + B + C - D - E - F - G - H where A is the total of all amounts each of which is the cost amount to the corporation of a property immediately before the end of its preceding taxation year; B is the amount of any money of the corporation on hand immediately before the end of its preceding taxation year; C is the amount, if any, by which the total of all amounts that, if the corporation had had unlimited income for its preceding taxation year from each business carried on, and from each property held, by it in that preceding taxation year and had realized an unlimited amount of capital gains for that preceding taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that preceding taxation year exceeds the total of all amounts deducted under subsection 111(1) in computing the corporation’s taxable income for its preceding taxation year; D is the total of all amounts each of which is the amount of any debt owing by the corporation, or of any other obligation of the corporation to pay any amount, that was outstanding immediately before the end of its preceding taxation year; E is the paid up capital, immediately before the end of its preceding taxation year, of all of the issued and outstanding shares of the capital stock of the corporation; F is the total of all amounts each of which is a reserve deducted in computing the corporation’s income for its preceding taxation year; G is if the corporation is not a private corporation in the particular taxation year, the corporation’s capital dividend account, if any, immediately before the end of its preceding taxation year, and in any other case, nil; and H is the positive or negative amount determined by the formula I - J where I is the corporation’s general rate income pool at the end of its preceding taxation year, and J is the amount, if any, by which the total of all amounts each of which is an eligible dividend paid by the corporation in its preceding taxation year exceeds the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year.
2007-02-21 to 2019-01-01 View Source

If, in a particular taxation year, a corporation is neither a Canadian-controlled private corporation nor a deposit insurance corporation but was, in its preceding taxation year, a Canadian-controlled private corporation or a deposit insurance corporation, there shall be included in computing the corporation’s low rate income pool at any time in the particular taxation year the amount determined by the formula A + B + C - D - E - F - G - H where A is the total of all amounts each of which is the cost amount to the corporation of a property immediately before the end of its preceding taxation year; B is the amount of any money of the corporation on hand immediately before the end of its preceding taxation year; C is the amount, if any, by which the total of all amounts that, if the corporation had had unlimited income for its preceding taxation year from each business carried on, and from each property held, by it in that preceding taxation year and had realized an unlimited amount of capital gains for that preceding taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that preceding taxation year exceeds the total of all amounts deducted under subsection 111(1) in computing the corporation’s taxable income for its preceding taxation year; D is the total of all amounts each of which is the amount of any debt owing by the corporation, or of any other obligation of the corporation to pay any amount, that was outstanding immediately before the end of its preceding taxation year; E is the paid up capital, immediately before the end of its preceding taxation year, of all of the issued and outstanding shares of the capital stock of the corporation; F is the total of all amounts each of which is a reserve deducted in computing the corporation’s income for its preceding taxation year; G is if the corporation is not a private corporation in the particular taxation year, the corporation’s capital dividend account, if any, immediately before the end of its preceding taxation year, and in any other case, nil; and H is the positive or negative amount determined by the formula I - J where I is the corporation’s general rate income pool at the end of its preceding taxation year, and J is the amount, if any, by which the total of all amounts each of which is an eligible dividend paid by the corporation in its preceding taxation year exceeds the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year.