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Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Full Document:  

Act current to 2019-08-28 and last amended on 2019-06-21. Previous Versions

PART IIncome Tax (continued)

DIVISION EComputation of Tax (continued)

SUBDIVISION A.5Canada Training Credit

Marginal note:Claimed amount

  •  (1) An individual who is resident in Canada throughout a taxation year, files a return of income for the taxation year and makes a claim under this subsection is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount claimed by the individual that does not exceed the lesser of

    • (a) the training amount limit of the individual for the taxation year, and

    • (b) 50% of the amount that would be deductible under paragraph 118.5(1)(a) or (d) in computing the individual’s tax payable under this Part for the taxation year if

      • (i) this Act were read without reference to subsections 118.5(1.2) and (2), and

      • (ii) the appropriate percentage for the taxation year were 100%.

  • Marginal note:Training amount limit

    (2) For the purposes of this section, the training amount limit of an individual for a taxation year is

    • (a) if the taxation year is after 2019 and the individual has attained the age of 26 years, and has not attained the age of 66 years, before the end of the taxation year, the lesser of

      • (i) the amount determined by the formula

        A + B − C

        where

        A
        is the individual’s training amount limit for the preceding taxation year,
        B
        is
        • (A) $250, if

          • (I) the individual has filed a return of income for the preceding taxation year,

          • (II) the individual was resident in Canada throughout the preceding taxation year,

          • (III) the total of the following amounts is greater than or equal to $10,000:

            • 1 the amount that would be the individual’s working income (as defined in subsection 122.7(1)) for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a) and subsection 81(4),

            • 2 the total of all amounts each of which is an amount payable to the individual under subsection 22(1), 23(1), 152.04(1) or 152.05(1) of the Employment Insurance Act in the preceding taxation year, and

            • 3 the amount that would be included in the individual’s income because of subparagraph 56(1)(a)(vii) in computing the individual’s income for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a), and

          • (IV) the individual’s income for the preceding taxation year under this Part does not exceed the higher dollar amount referred to in paragraph 117(2)(c), as adjusted under this Act for the preceding taxation year, and

        • (B) nil, in any other case, and

        C
        is the amount deemed to have been paid by the individual under subsection (1) in respect of the preceding taxation year, and
      • (ii) the amount determined by the formula

        $5,000 − D

        where

        D
        is the total of all amounts deemed to have been paid by the individual under subsection (1) in respect of a preceding taxation year; and
    • (b) nil, in any other case.

  • Marginal note:Effect of bankruptcy

    (3) For the purpose of this Subdivision, if an individual becomes bankrupt in a particular calendar year,

    • (a) notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year; and

    • (b) the individual’s working income and income under this Part for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual’s working income and the income under this Part for the taxation year that begins on January 1 of the particular calendar year.

  • Marginal note:Special rules in the event of death

    (4) For the purposes of this section, if an individual dies in a calendar year,

    • (a) the individual is deemed to be resident in Canada from the time of death until the end of the year;

    • (b) the individual is deemed to be the same age at the end of the year as the individual would have been if the individual were alive at the end of the year; and

    • (c) any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2019, c. 29, s. 21

SUBDIVISION BRules Applicable to Corporations

Marginal note:Rate for corporations

  •  (1) The tax payable under this Part for a taxation year by a corporation on its taxable income or taxable income earned in Canada, as the case may be, (in this section referred to as its “amount taxable”) for the year is, except where otherwise provided,

    • (a) 38% of its amount taxable for the year.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1970-71-72, c. 63, s. 1“123”
  • 1984, c. 29, s. 90
  • 1986, c. 55, s. 42
  • 1988, c. 28, s. 250, c. 55, s. 100

Marginal note:Corporation surtax

 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation (other than a corporation that was throughout the year an investment corporation or a non-resident-owned investment corporation) an amount equal to that proportion of 5% of the amount, if any, by which

  • (a) the tax payable under this Part by the corporation for the year determined without reference to this section, sections 123.2 and 126 (except for the purposes of subsection 125(1) and section 125.1), subsections 127(3) and (5), 127.2(1) and 127.3(1) of this Act and paragraph 123(1)(b) and subsection 127(13) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and as if subsection 124(1) of this Act were read without reference to the words “in a province” in that subsection

exceeds

  • (b) in the case of a Canadian-controlled private corporation to which subsection 125(1) applies, the amount, if any, by which

    • (i) 15% of the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year

    exceeds

    • (ii) the amount, if any, determined under paragraph 125.1(1)(b) in respect of the corporation for the year,

  • (c) in the case of a mutual fund corporation, the least of the amounts that would be determined under paragraphs (a) to (c) of the description of A in the definition refundable capital gains tax on hand in subsection 131(6) in respect of the corporation for the year if this Act were read without reference to this section, and

  • (d) in any other case, nil

that the number of days in that portion of the year that is after June 30, 1985 and before 1987 is of the number of days in the year.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1972, c. 9, s. 2
  • 1985, c. 45, s. 69
  • 1986, s. 6, s. 69, c. 55, s. 43

 [Repealed, 2006, c. 4, s. 72]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 123.2
  • 1994, c. 7, Sch. VIII, s. 61
  • 1996, c. 21, s. 24
  • 1999, c. 22, s. 45
  • 2001, c. 17, s. 111
  • 2005, c. 30, s. 9
  • 2006, c. 4, s. 72
 
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