Bill C-92
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(2) Subsection (1) applies to taxation
years that begin after 1996.
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59. (1) Paragraph (c) of the definition
``carved-out income'' in subsection 209(1)
of the Act is replaced by the following:
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(2) Subsection (1) applies after March 6,
1996.
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60. (1) The definitions ``life insurance
policy'' and ``life insurance policy in
Canada'' in subsection 211(1) of the Act are
replaced by the following:
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``life
insurance
policy'' « police d'assurance- vie »
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``life insurance policy'' includes a benefit
under
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``life
insurance
policy in
Canada'' « police d'assurance- vie au Canada »
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``life insurance policy in Canada'' means a life
insurance policy issued or effected by an
insurer on the life of a person resident in
Canada at the time the policy was issued or
effected;
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(2) Subsection (1) applies to the 1996 and
subsequent taxation years.
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61. (1) Paragraphs (a) and (b) of the
description of A in subsection 211.1(3) of the
Act are replaced by the following:
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(2) Paragraphs (a) and (b) of the
description of D in the description of B in
subsection 211.1(3) of the Act are replaced
by the following:
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(3) Paragraph (c) of the description of E
in the description of B in subsection 211.1(3)
of the Act is replaced by the following:
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(4) Subsections (1) to (3) apply to the 1996
and subsequent taxation years.
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62. (1) The Act is amended by adding the
following after Part XII.4:
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PART XII.5 |
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RECOVERY OF LABOUR-SPONSORED FUNDS TAX CREDIT |
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Definitions
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211.7 The definitions in this section apply
for the purposes of this Part.
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``approved
share'' « action approuvée »
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``approved share'' has the meaning assigned
by subsection 127.4(1).
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``labour-
sponsored
funds tax
credit'' « crédit d'impôt relatif à un fonds de travailleurs »
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``labour-sponsored funds tax credit'' in
respect of a share is
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``net cost'' « coût net »
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``net cost'' has the meaning assigned by
subsection 127.4(1).
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``original
acquisition'' « acquisition initiale »
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``original acquisition'' has the meaning
assigned by subsection 127.4(1).
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``qualifying
trust'' « fiducie admissible »
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``qualifying trust'' has the meaning assigned
by subsection 127.4(1).
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``revoked
corporation'' « société radiée »
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``revoked corporation'' means a corporation
the registration of which has been revoked
under subsection 204.81(6).
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Disposition of
approved
share
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211.8 (1) Where an approved share of the
capital stock of a registered labour-sponsored
venture capital corporation or a revoked
corporation is redeemed, acquired or
cancelled by the corporation less than 8 years
after the day on which the share was issued
(other than in circumstances described in
subclause 204.81(1)(c)(v)(A)(I) or (III) or
clause 204.81(1)(c)(v)(B) or (D)) or any other
share that was issued by any other
labour-sponsored venture capital corporation
is disposed of, the person who was the
shareholder immediately before the
redemption, acquisition, cancellation or
disposition shall pay a tax under this Part equal
to the lesser of
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A x B
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Withholding
and
remittance of
tax
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(2) Where a person or partnership (in this
section referred to as the ``transferee'')
redeems, acquires or cancels a share and, as a
consequence, tax is payable under this Part by
the person who was the shareholder
immediately before the redemption,
acquisition or cancellation, the transferee
shall
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Liability for
tax
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(3) Where a transferee has failed to
withhold any amount as required by
subsection (2) from an amount paid or
credited to a shareholder, the transferee is
liable to pay as tax under this Part on behalf of
the shareholder the amount the transferee
failed to withhold, and is entitled to recover
that amount from the shareholder.
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Refund of
clawback
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211.9 The Minister may pay to an
individual (other than a trust) an amount not
exceeding the lesser of
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if application for the payment has been made
in writing by the individual and filed with the
Minister no later than 2 years after the end of
the calendar year in which the disposition
occurred.
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PART XII.6 |
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TAX ON FLOW-THROUGH SHARES |
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Tax imposed
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211.91 (1) Every corporation shall pay a tax
under this Part in respect of each month (other
than January) in a calendar year equal to the
amount determined by the formula
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(A + B/2 - C - D/2) x (E/12 + F/10)
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where
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A is the total of all amounts each of which is
an amount that the corporation purported to
renounce in the year under subsection
66(12.6) or (12.601) because of the
application of subsection 66(12.66) (other
than an amount purported to be renounced
in respect of expenses incurred or to be
incurred in connection with production or
potential production in a province where a
tax, similar to the tax provided under this
Part, is payable by the corporation under the
laws of the province as a consequence of the
failure to incur the expenses that were
purported to be renounced);
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B is the total of all amounts each of which is
an amount that the corporation purported to
renounce in the year under subsection
66(12.6) or (12.601) because of the
application of subsection 66(12.66) and that
is not included in the value of A;
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C is the total of all expenses described in
paragraph 66(12.66)(b) that are
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D is the total of all expenses described in
paragraph 66(12.66)(b) that are
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E is the rate of interest prescribed for the
purpose of subsection 164(3) for the month;
and
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F is
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Return and
payment of
tax
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(2) A corporation liable to tax under this
Part in respect of one or more months in a
calendar year shall, before March of the
following calendar year,
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Provisions
applicable to
Part
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(3) Subsections 150(2) and (3), sections
152, 158 and 159, subsections 161(1) and (11),
sections 162 to 167 and Division J of Part I
apply to this Part, with any modifications that
the circumstances require.
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(2) Section 211.7 and subsection 211.8(1)
of the Act, as enacted by subsection (1),
apply to redemptions, acquisitions,
cancellations and dispositions that occur
after November 15, 1995, except that
section 211.7 and subsection 211.8(1) of the
Act, as enacted by subsection (1), do not
apply
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