I-3 - Taxation Act

Section 1143 Disposition versions

2006-03-01

1143. A corporation is exempt from capital tax where a corporation is

(a)  a corporation, other than a prescribed corporation, that is exempt from tax under sections 980 to 996 or 998 and 998.1; or

(b)  a corporation whose property is deemed to be the property of an inter vivos trust referred to in section 851.25.

The same applies to a security fund belonging to the group of the Fédération des caisses Desjardins du Québec established under the Act respecting financial services cooperatives (chapter C-67.3), and to Aéroports de Montréal, a corporation incorporated under Part II of the Canada Corporations Act (R.S.C. 1970, c. C-32), if the requirements of paragraphs a and b of subsection 1 of section 8 of the Airport Transfer (Miscellaneous Matters) Act (S.C. 1992, c. 5) are met in respect of the latter corporation for the taxation year.

However, a corporation withdrawn by section 192 from the application of section 985 is not exempt from tax.

Furthermore, a corporation that is a charity within the meaning of section 1, or whose property is deemed to be the property of an inter vivos trust contemplated in section 851.25, and that is exempt from tax under the first paragraph, must nevertheless pay the tax on its paid-up capital which pertains to a business carried on by it.

1972, c. 23, s. 856; 1979, c. 38, s. 27; 1981, c. 12, s. 15; 1995, c. 49, s. 236; 1997, c. 3, s. 71; 1997, c. 14, s. 281; 1999, c. 83, s. 268; 2000, c. 5, s. 291; 2000, c. 29, s. 658.