Budget Implementation Act, 2003 (S.C. 2003, c. 15)
Full Document:
Assented to 2003-06-19
119. (1) The portion of subsection 183.1(2) of the Act after paragraph (b) is replaced by the following:
the corporation shall, on or before its balance-due day for its taxation year that includes that time, pay tax of 45% of that amount or portion of it, as the case may be.
(2) Subsection (1) applies to taxation years that begin after June 2003.
120. (1) The portion of subsection 186(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Tax on assessable dividends
186. (1) Every corporation (in this section referred to as the “particular corporation”) that is at any time in a taxation year a private corporation or a subject corporation shall, on or before its balance-due day for the year, pay a tax under this Part for the year equal to the amount, if any, by which the total of
(2) Subsection (1) applies to taxation years that begin after June 2003.
121. (1) Section 187.2 of the Act is replaced by the following:
Marginal note:Tax on dividends on taxable preferred shares
187.2 Every corporation shall, on or before its balance-due day for a taxation year, pay a tax under this Part for the year equal to 10% of the total of all amounts each of which is a dividend, other than an excepted dividend, received by the corporation in the year on a taxable preferred share (other than a share of a class in respect of which an election under subsection 191.2(1) has been made) to the extent that an amount in respect of the dividend was deductible under section 112 or 113 or subsection 138(6) in computing its taxable income for the year or under subsection 115(1) in computing its taxable income earned in Canada for the year.
(2) Subsection (1) applies to taxation years that begin after June 2003.
122. (1) Subsection 187.3(1) of the Act is replaced by the following:
Marginal note:Tax on dividends on taxable RFI shares
187.3 (1) Every restricted financial institution shall, on or before its balance-due day for a taxation year, pay a tax under this Part for the year equal to 10% of the total of all amounts each of which is a dividend, other than an excepted dividend, received by the institution at any time in the year on a share acquired by any person before that time and after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 that was, at the time the dividend was paid, a taxable RFI share to the extent that an amount in respect of the dividend was deductible under section 112 or 113 or subsection 138(6) in computing its taxable income for the year or under subsection 115(1) in computing its taxable income earned in Canada for the year.
(2) Subsection (1) applies to taxation years that begin after June 2003.
123. (1) Paragraph 196(3)(b) of the Act is replaced by the following:
(b) the remainder, if any, of the tax payable by it under this Part for the year, on or before its balance-due day for the year.
(2) Subsection (1) applies to taxation years that begin after June 2003.
124. (1) Paragraph 204.86(1)(c) of the Act is replaced by the following:
(c) on or before its balance-due day for the year, pay to the Receiver General the amount of tax and penalties, if any, payable under this Part by it for the year.
(2) Paragraph 204.86(2)(c) of the Act is replaced by the following:
(c) on or before its balance-due day for the year, pay to the Receiver General the amount of tax payable under this Part by it for the year.
(3) Subsections (1) and (2) apply to taxation years that begin after June 2003.
125. (1) The portion of subsection 208(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Return and payment of tax
(2) A person liable to pay a tax under this Part in respect of a year shall, on or before its balance-due day for a taxation year,
(2) Subsection (1) applies to taxation years that begin after June 2003.
126. (1) Paragraph 209(4)(b) of the Act is replaced by the following:
(b) the remainder, if any, of the tax payable by the person under this Part for the year, on or before the person’s balance-due day for the year.
(2) Subsection (1) applies to taxation years that begin after June 2003.
127. (1) Section 211.4 of the Act is replaced by the following:
Marginal note:Payment of remainder of tax
211.4 Every life insurer shall pay, on or before its balance-due day for a taxation year, the remainder, if any, of the tax payable under this Part by the insurer for the year.
(2) Subsection (1) applies to taxation years that begin after June 2003.
128. (1) The portion of subsection 219(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Additional tax
219. (1) Every corporation that is non-resident in a taxation year shall, on or before its balance-due day for the year, pay a tax under this Part for the year equal to 25% of the amount, if any, by which the total of
(2) Subsection (1) applies to taxation years that begin after June 2003.
129. (1) Subsection 220(3) of the Act is replaced by the following:
Marginal note:Extensions for returns
(3) The Minister may at any time extend the time for making a return under this Act. However, the extension does not apply for the purpose of calculating a penalty that a person is liable to pay under section 162 if the person fails to make the return within the period of the extension.
(2) Subsection (1) applies in respect of extensions granted after February 18, 2003.
Coordinating Amendments
Excise Act, 2001
130. (1) On the later of the coming into force of subsection 100(1) of this Act and section 382 of the Excise Act, 2001, being chapter 22 of the Statutes of Canada, 2002 (the “other Act”), section 78 of the Excise Tax Act is replaced by the following:
Marginal note:Determination of fiscal months
78. (1) The fiscal months of a person shall be determined in accordance with the following rules:
(a) if fiscal months of the person have been determined under subsection 243(2) or (4) for the purposes of Part IX, each of those fiscal months is a fiscal month of the person for the purposes of this Act;
(b) if fiscal months of the person have not been determined under subsection 243(2) or (4) for the purposes of Part IX, the person may select for the purposes of this Act fiscal months that meet the requirements set out in subsection 243(2); and
(c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.
Marginal note:Notification of Minister
(2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.
(2) On the later of the coming into force of subsection 100(1) of this Act and section 383 of the other Act, section 79 of the Excise Tax Act is replaced by the following:
Marginal note:Returns and payments
79. (1) Every person who is required to pay tax under Part III and every person who holds a licence granted under or in respect of that Part shall, not later than the last day of the first month after each fiscal month of the person,
(a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;
(b) calculate, in the return, the total amount of the tax payable, if any, by the person for that fiscal month; and
(c) pay that amount to the Receiver General.
Marginal note:Authority for extended reporting period
(2) Despite subsection (1), the Minister may authorize a person to file a return and pay tax in respect of
(a) any period longer than one fiscal month but not more than six fiscal months, if the tax payable by that person under Part III for the preceding twelve fiscal months did not exceed $4,800; or
(b) any period longer than one fiscal month but not more than six fiscal months, if
(i) the activities of the person that give rise to tax payable by that person under Part III are predominantly limited to a seasonal period of operation, and
(ii) the tax payable by that person under Part III for the equivalent period in the preceding twelve fiscal months did not exceed an average of $400 per fiscal month during that equivalent period.
Marginal note:Filing of return for extended reporting period
(3) If the Minister authorizes a person under subsection (2) to file a return and pay tax in respect of a period longer than one fiscal month, the person shall, not later than the last day of the first month after the end of the period, file the return and pay any tax owing.
(3) On the later of the coming into force of subsection 101(1) of this Act and subsection 384(1) of the other Act, clause 79.1(1)(a)(i)(A) of the Excise Tax Act is replaced by the following:
(A) the tax payable under Part III, other than tax payable in accordance with the Customs Act, by that person in that month, and
(4) On the later of the coming into force of subsection 101(1) of this Act and subsection 384(2) of the other Act, clause 79.1(1)(a)(ii)(A) of the Excise Tax Act is replaced by the following:
(A) the tax payable under Part III, other than tax payable in accordance with the Customs Act, by that person in that period, and
(5) If subsection 101(1) of this Act comes into force before, or on the same day as, subsection 384(3) of the other Act, then, on the day on which that subsection 101(1) comes into force, that subsection 384(3) is repealed.
(6) On the later of the coming into force of subsection 101(2) of this Act and subsection 384(4) of the other Act, subparagraph 79.1(1)(b)(ii) of the Excise Tax Act is replaced by the following:
(ii) the person
(A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days if that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Part III, other than taxes payable in accordance with the Customs Act, by the group in that year exceeded twelve million dollars, and
(B) is not, at that time, authorized under subsection 79(2) to file a return for a period longer than one fiscal month.
(7) If subsection 101(3) of this Act comes into force before, or on the same day as, subsection 384(5) of the other Act, then, on the day on which that subsection 101(3) comes into force, that subsection 384(5) is repealed.
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