I-3 - Taxation Act

Section 1029.8.36.132 Disposition versions

2010-04-20

1029.8.36.132. (Repealed).

2001, c. 51, s. 189; 2003, c. 9, s. 335; 2010, c. 5, s. 158.

2006-03-01

1029.8.36.132. Where a partnership operating an international financial centre in a fiscal period carries out a qualified international financial transaction in the fiscal period in respect of a foreign investment fund, each taxpayer, other than a tax-exempt taxpayer, who is a member of the partnership at the end of that fiscal period and encloses the prescribed form containing the prescribed information with the fiscal return the taxpayer is required to file under section 1000 for the taxpayer’s taxation year in which that fiscal period ends, is deemed, subject to the third paragraph and section 1029.8.36.133, to have paid to the Minister on the taxpayer’s balance-due day for the year, on account of the taxpayer’s tax payable for the year under this Part, an amount equal to the lesser of

(a)  50% of the amount by which

i.  the aggregate of all amounts each of which is the taxpayer’s share, for the fiscal period, of a qualified solicitation expenditure in respect of the fund made by the partnership for the fiscal period or either of the two preceding fiscal periods, exceeds

ii.  the taxpayer’s share, for the fiscal period, of 200% of the amount by which the aggregate of all amounts each of which is the amount that a member of the partnership at the end of either of the two preceding fiscal periods referred to in subparagraph i is deemed to have paid to the Minister in respect of the fund under this section, in relation to that preceding fiscal period, for the member’s taxation year in which the fiscal period ends, exceeds the aggregate of all amounts each of which is the amount that a member of the partnership at the end of either of the two preceding fiscal periods referred to in subparagraph i would have been deemed to have paid to the Minister in respect of the fund under this section, in relation to the preceding fiscal period, for the member’s taxation year in which the fiscal period ends if no qualified solicitation expenditure in respect of the fund made by the partnership for those two preceding fiscal periods and no repayment under section 1029.8.36.144 or 1029.8.36.145 relating to such qualified solicitation expenditure in respect of the fund made by the partnership had been taken into account;

(b)  25% of the taxpayer’s share, for the fiscal period, of the partnership’s qualified gross revenue for the fiscal period from a qualified international financial transaction in respect of the fund;

(c)  subject to section 1029.8.36.139, the taxpayer’s share, for the fiscal period, of $150,000; and

(d)  where the partnership is a member of an associated group at the end of the fiscal period, the partnership’s share for the fiscal period of the amount attributed to the partnership in respect of the fund, pursuant to the agreement referred to in section 1029.8.36.136 or, where the partnership is not a member of an associated group at the end of the fiscal period, the partnership’s share for the fiscal period of the amount by which $300,000 exceeds the aggregate of all amounts each of which is an amount deemed under this section or section 1029.8.36.129 to have been paid to the Minister in respect of the fund

i.  by a taxpayer who was a member of the partnership at the end of a preceding fiscal period for a taxation year in which that fiscal period ended,

ii.  where the partnership is a member of an associated group in the fiscal period, by a member corporation of the group, in the second paragraph referred to as the “particular corporation”, for a taxation year ending in the fiscal period or for any taxation year preceding that year, or by a taxpayer who is a member at the end of a fiscal period of another member partnership of the group, in the second paragraph referred to as the “particular partnership”, for a taxation year in which that fiscal period ended and ending in the fiscal period or for any taxation year preceding that year, or

iii.  where the partnership was a member of an associated group in a preceding fiscal period, by a corporation, other than a corporation referred to in subparagraph ii, that was a member corporation of the group, in the second paragraph referred to as the “particular corporation”, for a taxation year ending in that preceding fiscal period or for any taxation year preceding that year, or by a taxpayer, other than a taxpayer referred to in subparagraph ii, who was a member at the end of a fiscal period of a member partnership of the group, in the second paragraph referred to as the “particular partnership”, for a taxation year in which that fiscal period ended and ending in that preceding fiscal period or for any taxation year preceding that year.

For the purposes of subparagraph iii of subparagraph d of the first paragraph, where the particular corporation or the particular partnership was a member of a particular associated group in a preceding fiscal period, of which the partnership was not a member, the partnership is deemed to be a member of the particular associated group in the preceding fiscal period.

For the purpose of computing the payments that a taxpayer referred to in the first paragraph is required to make under section 1025 or 1026, subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, for the taxpayer’s taxation year in which the fiscal period of the partnership ends, the taxpayer is deemed to have paid to the Minister, on account of the aggregate of the taxpayer’s tax payable for the year under this Part and of the taxpayer’s tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

2001, c. 51, s. 189; 2003, c. 9, s. 335.