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

Marginal note:Modification for purposes of provincial program

122.71 The Minister of Finance may enter into an agreement with the government of a province whereby the amounts determined under subsections 122.7(2) and (3) with respect to an eligible individual resident in the province at the end of the taxation year shall, for the purpose of calculating amounts deemed to be paid on account of the tax payable of an individual under those subsections, be replaced by amounts determined in accordance with the agreement.

SUBDIVISION A.3Child Fitness Tax Credit

Marginal note:Definitions

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

  eligible fitness expense

  dépense admissible pour activités physiques

  eligible fitness expense in respect of a qualifying child of an individual for a taxation year means the amount of a fee paid to a qualifying entity (other than an amount paid to a person that is, at the time the amount is paid, the individual’s spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the qualifying child in a prescribed program of physical activity and, for the purposes of this section, that cost

  • (a) includes the cost to the qualifying entity of the program in respect of its administration, instruction, rental of required facilities, and uniforms and equipment that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time, if any, they are so acquired; and

  • (b) does not include

    • (i) the cost of accommodation, travel, food or beverages, or

    • (ii) any amount deductible under section 63 in computing any person’s income for any taxation year. (dépense admissible pour activités physiques)

  qualifying child

  enfant admissible

  qualifying child of an individual for a taxation year means a child of the individual who is, at the beginning of the year,

  • (a) under 16 years of age; or

  • (b) in the case where an amount is deductible under section 118.3 in computing any person’s tax payable under this Part for the year in respect of that child, under 18 years of age. (enfant admissible)

  qualifying entity

  entité admissible

  qualifying entity means a person or partnership that offers one or more prescribed programs of physical activity. (entité admissible)

  return of income

  déclaration de revenu

  return of income filed by an individual for a taxation year means a return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the year or that would be required to be filed if the individual had tax payable under this Part for the year. (déclaration de revenu)

• Marginal note:Deemed overpayment

  (2) An individual who files a return of income for a taxation year and who makes a claim under this subsection is deemed to have paid, at the end of the year, on account of tax payable under this Part for the year, an amount equal to the amount determined by the formula

  A × B

  where

  A 

  is the appropriate percentage for the year; and

  B 

  is the total of all amounts each of which is, in respect of a qualifying child of the individual for the year, the lesser of $1,000 and the amount determined by the formula

  C – D

  where

  C 

  is the total of all amounts each of which is an amount paid in the year by the individual, or by the individual’s spouse or common law partner, that is an eligible fitness expense in respect of the qualifying child of the individual, and

  D 

  is the total of all amounts that any person is or was entitled to receive, each of which relates to an amount included in computing the value of C in respect of the qualifying child that is the amount of a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person).

• Marginal note:Child with disability

  (3) An individual who files a return of income for a taxation year and who makes a claim under this subsection is deemed to have paid, in respect of a qualifying child of the individual, at the end of the year, on account of tax payable under this Part for the year, an amount equal to $500 multiplied by the appropriate percentage for the year, if

  • (a) the amount referred to in the description of B in subsection (2) is $100 or more; and

  • (b) an amount is deductible in respect of the qualifying child under section 118.3 in computing any person’s tax payable under this Part for the year.

• Marginal note:Apportionment of overpayment

  (4) If more than one individual is entitled to make a claim under this section for a taxation year in respect of a qualifying child, the total of all amounts deemed to have been paid shall not exceed the maximum amount that could be deemed to have been paid for the year by any one of those individuals in respect of that qualifying child if that individual were the only individual entitled to claim an amount for the year under this section in respect of that qualifying child. If the individuals cannot agree as to what portion of the maximum amount each can so claim, the Minister may fix the portions.

• Marginal note:Effect of bankruptcy

  (5) For the purposes of this subdivision, if an individual becomes bankrupt in a particular calendar year, 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.

• Marginal note:Part-year residents

  (6) If an individual is resident in Canada throughout part of a taxation year and is non-resident throughout another part of the year, the total of the amounts that are deemed to be paid by the individual under subsection (2) and (3) for the year cannot exceed the lesser of

  • (a) the total of

    • (i) the amounts deemed to be paid under those subsections that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the individual is not resident in Canada, computed as though that period or those periods were the whole taxation year, and

    • (ii) the amounts deemed to be paid under those subsections that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year, and

  • (b) the total of the amounts that would have been deemed to have been paid under those subsections for the year had the individual been resident in Canada throughout the year.

• Marginal note:Non-residents

  (7) Subsections (2) and (3) do not apply in respect of a taxation year of an individual if the individual is, at no time in the year, resident in Canada, unless all or substantially all the individual’s income for the year is included in computing the individual’s taxable income earned in Canada for the year.

SUBDIVISION BRules Applicable to Corporations

Marginal note:Rate for corporations

• 123 (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.

Marginal note:Corporation surtax

123.1 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.