Income Tax Act

Marginal note:Definitions

• 127.421 (1) The following definitions apply in this section.

  designated province

  designated province means a province specified by the Minister of Finance for a calendar year. (province déterminée)

  fuel return specified

  fuel return specified, for a designated province for a calendar year, means the amount specified by the Minister of Finance for a person employed by a corporation for the designated province for the calendar year. (montant lié aux carburants spécifié)

  person employed

  person employed, by a corporation for a calendar year, means a person who was at any time in the calendar year employed by the corporation and in respect of whom the corporation issued (or a payroll service provider issued on behalf of the corporation) a statement of remuneration paid. (personne employée)

  2023 business number

  2023 business number means the business number of a corporation which the corporation used to make remittances for employees for the corporation’s last taxation year ending in 2023. (numéro d’entreprise 2023)

• Marginal note:Deemed amount 2019-2023

  (2) A corporation that files, on or before December 31, 2024, a return of income for a particular taxation year ending in 2023 (other than a final return on dissolution) is deemed to have paid on a date specified by the Minister of Finance, on account of tax payable under this Part for that taxation year, the total of all amounts, each of which is an amount, for each designated province, for each calendar year that is 2019, 2020, 2021, 2022 and 2023, determined by the formula

  A × B × C

  where

  A

  is the fuel return specified for the designated province, for the calendar year;

  B

  is

  • (a) if the total number of persons each of whom was a person employed by the corporation in a province at any time in the calendar year exceeds 499, nil, and

  • (b) in any other case, the total number of persons, each of whom was a person employed by the corporation in the designated province in the calendar year; and

  C

  is

  • (a) if the corporation was a Canadian-controlled private corporation at all times in the taxation year ending in 2023, 1, and

  • (b) in any other case, nil.

• Marginal note:Deemed amount after 2023

  (3) A corporation that files a return of income for a particular taxation year ending in a calendar year after 2023 (other than a final return on dissolution) is, if the return is filed on or before July 15 of the following calendar year, deemed to have paid on October 1st of that calendar year, on account of tax payable under this Part for the particular taxation year, the amount determined by the formula

  A × B × C

  where

  A

  is the fuel return specified for the designated province, for the calendar year;

  B

  is

  • (a) if the total number of persons each of whom was a person employed by the corporation in a province at any time in the calendar year exceeds 499, nil, and

  • (b) in any other case, the total number of persons, each of whom was a person employed by the corporation in the designated province in the calendar year; and

  C

  is

  • (a) if the corporation was a Canadian-controlled private corporation at all times in the particular taxation year, 1, and

  • (b) in any other case, nil.

• Marginal note:Authority to specify

  (4) For the purposes of this section, the Minister of Finance may specify for a calendar year

  • (a) the designated provinces; and

  • (b) the fuel return specified for a designated province.

• Marginal note:Amount not specified

  (5) For the purposes of this section, if the Minister of Finance does not specify a fuel return specified for a designated province for a calendar year under paragraph (4)(b), the fuel return specified for the designated province for the calendar year is deemed to be nil.

• Marginal note:Payment — not taxable

  (6) There is not to be included in computing the income of a corporation for a taxation year an amount that is deemed under subsection (2) or (3) to have been paid on account of tax payable under this Part for a taxation year.

• Marginal note:Deemed rebate in respect of fuel charges

  (7) An amount for a designated province included in the total of all amounts deemed by this section to have been paid on account of tax payable for a taxation year is deemed to have been paid during the taxation year as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the designated province.

• Marginal note:Predecessor corporation — before 2023

  (8) For the purpose of subsection (2), where there has been an amalgamation of two or more corporations before 2023, the corporation filing a return of income in 2023 is deemed to be the same corporation as and a continuation of each predecessor corporation that was registered with the Minister to make remittances required under section 153 under the corporation’s 2023 business number.

• Marginal note:Predecessor corporation — 2023 and subsequent years

  (9) For the purposes of subsections (2) and (3), the number of persons employed by a corporation in a calendar year after 2022 is deemed to be nil in that year if the corporation is formed by an amalgamation in that calendar year.

• Marginal note:Province of employment

  (10) For the purposes of this section, if a person is employed by the same corporation in more than one province in a calendar year, the person is deemed to be employed throughout the calendar year by that corporation in the province in respect of which the person has received the highest amount of remuneration paid by the corporation and is deemed not to be employed in any other province in the calendar year.

• Marginal note:Deemed taxation year

  (11) For the purposes of subsections (2) and (3), if a corporation has more than one taxation year ending in the same calendar year, the particular taxation year is the first taxation year that ends in that calendar year.