I-3 - Taxation Act

Section 1038 Disposition versions

2022-06-08

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Tax Administration Act (chapter A-6.002), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2.1, II.11.1, II.11.7.2, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1 and any such amounts in respect of which section 1029.6.0.1.9 applies,

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3,

iii.1.  the amount by which the amount the individual is deemed under Division II.11.7.2 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.5,

iv.  the amount by which the amount the individual is deemed under Division II.12.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3; and

v.  the amount by which the amount the individual is deemed under Division II.27 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4; and

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2.1, II.11.1, II.11.7.2, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1 and any such amounts in respect of which section 1029.6.0.1.9 applies,

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3,

iii.1.  the amount by which the amount the individual is deemed under Division II.11.7.2 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.5,

iv.  the amount by which the amount the individual is deemed under Division II.12.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3; and

v.  the amount by which the amount the individual is deemed under Division II.27 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2.1, II.11.1, II.11.7.2, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1 and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the aggregate of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, the amount by which the amount the individual is deemed under Division II.11.7.2 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.5, the amount by which the amount the individual is deemed under Division II.12.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3 and the amount by which the amount the individual is deemed under Division II.27 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, reduced by all amounts deducted or withheld under section 1015, without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487; 2010, c. 5, s. 169; 2010, c. 25, s. 185; 2010, c. 31, s. 175; 2015, c. 36, s. 152; 2017, c. 1, s. 341; 2019, c. 14, s. 425; 2021, c. 14, s. 175; 2022, c. 23, s. 123.

2021-06-02

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Tax Administration Act (chapter A-6.002), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2.1, II.11.1, II.11.7.2, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1 and any such amounts in respect of which section 1029.6.0.1.9 applies,

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3,

iii.1.  the amount by which the amount the individual is deemed under Division II.11.7.2 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.5,

iv.  the amount by which the amount the individual is deemed under Division II.12.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3; and

v.  the amount by which the amount the individual is deemed under Division II.27 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4; and

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2.1, II.11.1, II.11.7.2, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1 and any such amounts in respect of which section 1029.6.0.1.9 applies,

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3,

iii.1.  the amount by which the amount the individual is deemed under Division II.11.7.2 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.5,

iv.  the amount by which the amount the individual is deemed under Division II.12.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3; and

v.  the amount by which the amount the individual is deemed under Division II.27 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2.1, II.11.1, II.11.7.2, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1 and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the aggregate of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, the amount by which the amount the individual is deemed under Division II.11.7.2 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.5, the amount by which the amount the individual is deemed under Division II.12.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3 and the amount by which the amount the individual is deemed under Division II.27 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, reduced by all amounts deducted or withheld under section 1015, without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487; 2010, c. 5, s. 169; 2010, c. 25, s. 185; 2010, c. 31, s. 175; 2015, c. 36, s. 152; 2017, c. 1, s. 341; 2019, c. 14, s. 425; 2021, c. 14, s. 175.

2019-06-19

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Tax Administration Act (chapter A-6.002), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1, and any such amounts in respect of which section 1029.6.0.1.9 applies,

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3,

iv.  the amount by which the amount the individual is deemed under Division II.12.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3; and

v.  the amount by which the amount the individual is deemed under Division II.27 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4; and

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1, and any such amounts in respect of which section 1029.6.0.1.9 applies,

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3,

iv.  the amount by which the amount the individual is deemed under Division II.12.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3; and

v.  the amount by which the amount the individual is deemed under Division II.27 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)   the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, II.17.1 and II.27 of that chapter and sections 1029.9.2 and 1029.9.2.1, and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the aggregate of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, the amount by which the amount the individual is deemed under Division II.12.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3 and the amount by which the amount the individual is deemed under Division II.27 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.4, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, reduced by all amounts deducted or withheld under section 1015, without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487; 2010, c. 5, s. 169; 2010, c. 25, s. 185; 2010, c. 31, s. 175; 2015, c. 36, s. 152; 2017, c. 1, s. 341; 2019, c. 14, s. 425.

2017-02-08

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Tax Administration Act (chapter A-6.002), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies,

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, and

iv.  the amount by which the amount the individual is deemed under Division II.12.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3;

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies,

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, and

iv.  the amount by which the amount the individual is deemed under Division II.12.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.12.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the aggregate of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3 and the amount by which the amount the individual is deemed under Division II.12.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3.3, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, reduced by all amounts deducted or withheld under section 1015, without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487; 2010, c. 5, s. 169; 2010, c. 25, s. 185; 2010, c. 31, s. 175; 2015, c. 36, s. 152; 2017, c. 1, s. 341.

2015-12-04

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Tax Administration Act (chapter A-6.002), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3;

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, but with reference to the amount that the individual could deduct from the individual’s tax otherwise payable for the year under section 776.41.5 if the individual’s eligible spouse for the year were not required to include an amount in computing income for the year under section 313.11, reduced by all amounts deducted or withheld under section 1015, without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487; 2010, c. 5, s. 169; 2010, c. 25, s. 185; 2010, c. 31, s. 175; 2015, c. 36, s. 152.

2011-04-01

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Tax Administration Act (chapter A-6.002), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3;

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487; 2010, c. 5, s. 169; 2010, c. 25, s. 185; 2010, c. 31, s. 175.

2010-10-27

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Act respecting the Ministère du Revenu (chapter M-31), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3;

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.2, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487; 2010, c. 5, s. 169; 2010, c. 25, s. 185.

2010-04-20

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Act respecting the Ministère du Revenu (chapter M-31), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3;

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.3, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487; 2010, c. 5, s. 169.

2009-05-15

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Act respecting the Ministère du Revenu (chapter M-31), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3;

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, section 313.11 and Chapter II.1 of Title VI of Book III, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015, but without reference to section 1017.2, in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215; 2009, c. 5, s. 487.

2007-11-07

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Act respecting the Ministère du Revenu (chapter M-31), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the least of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, exceeds the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015 in respect of the individual’s income for the particular year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3;

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of

i.  the aggregate of all amounts deducted or withheld under section 1015 in respect of the individual’s income for the preceding taxation year,

ii.  the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and

iii.  the amount by which the amount the individual is deemed under Division II.11.1 of Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which the total, on the one hand, of the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III to have paid to the Minister on account of the individual’s tax payable for the particular year, except any such amounts the individual is deemed to have paid under Divisions II to II.3.0.1, II.5.1, II.5.2, II.6.4 to II.6.4.2, II.6.5.1, II.6.5.2, II.6.5.4, II.11.1, II.13 if tax is payable by the individual for the particular year under Part I.3.2, and II.17.1 of that chapter and section 1029.9.2, and any such amounts in respect of which section 1029.6.0.1.9 applies, and, on the other hand, of the amount by which the amount the individual is deemed under Division II.11.1 of that chapter to have paid to the Minister on account of the individual’s tax payable for the particular year exceeds the individual’s tax payable for the particular year under Part I.3, is exceeded by any of the following amounts:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, reduced by all amounts deducted or withheld under section 1015 in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015 in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015 in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015 in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of “qualified corporation” in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271; 2007, c. 12, s. 215.

2006-03-01

1038. In addition to the interest payable under section 1037, the taxpayer liable to make a payment under sections 1025 to 1027 shall pay interest, on every payment or part of a payment which he has not made on or before the date of expiry of the time granted for making it, at the rate fixed in section 28 of the Act respecting the Ministère du Revenu (chapter M-31), for the period extending from that date to the day of payment or to the day when he becomes liable to pay interest under section 1037, whichever is earlier.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1025 is deemed to have been liable to make a payment based on the lesser of

(a)  the amount by which the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, exceeds the aggregate of all amounts deducted or withheld under section 1015 in respect of the individual’s income for the particular year and all amounts the individual is deemed under Chapter III.1 of Title III, except Divisions II to II.3, II.5.1, II.5.2, II.6.4.1, II.6.5.1, II.6.5.2 and II.6.5.4 of that chapter and section 1029.9.2, to have paid to the Minister as partial payment of the individual’s tax payable for the particular year;

(b)  the individual’s basic provisional account, established in accordance with the regulations made under section 1025, for the preceding taxation year, reduced by the aggregate of all amounts deducted or withheld under section 1015 in respect of the individual’s income for the preceding taxation year and all amounts the individual is deemed under Chapter III.1 of Title III, except Divisions II to II.3, II.5.1, II.5.2, II.6.4.1, II.6.5.1, II.6.5.2 and II.6.5.4 of that chapter and section 1029.9.2, to have paid to the Minister as partial payment of the individual’s tax payable for the particular year; and

(c)  the amount stated to be the payment to be made by the individual for the particular year in the notice sent to the individual by the Minister.

For the purposes of this section and section 1040, any individual required to make a payment for a particular taxation year under section 1026 is deemed to have been liable to make payments based on a method described in that section 1026, whichever method gives rise to the least total amount required to be paid for the particular year on or before each of the dates referred to in that section 1026, computed in accordance with that method by reference to

(a)  the amount by which any of the following amounts exceeds the aggregate of all amounts the individual is deemed under Chapter III.1 of Title III, except Divisions II to II.3, II.5.1, II.5.2, II.6.4.1, II.6.5.1, II.6.5.2 and II.6.5.4 of that chapter and section 1029.9.2, to have paid to the Minister as partial payment of the individual’s tax payable for the particular year:

i.  the tax payable by the individual for the particular year, determined without reference to the specified tax consequences for the particular year, reduced by all amounts deducted or withheld under section 1015 in respect of the individual’s income for the particular year,

ii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015 in respect of the individual’s income for the preceding taxation year, and

iii.  the individual’s basic provisional account, established in accordance with the regulations made under section 1026, for the second preceding taxation year, reduced by all amounts deducted or withheld under section 1015 in respect of the individual’s income for the second preceding taxation year and the individual’s basic provisional account, established in the same manner, for the preceding taxation year, reduced by all amounts deducted or withheld under section 1015 in respect of the individual’s income for that preceding taxation year; or

(b)  the amounts stated to be the amounts of instalments payable by the individual for the particular year in the notices sent to the individual by the Minister.

For the purposes of this section and section 1040, any corporation required to make a payment for a taxation year under section 1027 is deemed to have been liable to make payments based on a method described in subparagraph a of the first paragraph of the said section 1027, whichever method gives rise to the least total amount required to be paid for the year on or before each of the dates referred to in the latter subparagraph, computed in accordance with that method by reference to

(a)  the tax payable by the corporation for the year, determined without reference to the specified tax consequences for the year, or the corporation’s first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year; or

(b)  its second basic provisional account, within the meaning of the regulations under subparagraph ii of the said subparagraph, for the year and its first basic provisional account, within the meaning of the regulations under subparagraph i of the said subparagraph, for the year.

Notwithstanding the first paragraph, a corporation referred to in the sixth paragraph shall not be liable under this section, in respect of the aggregate of all amounts each of which is a payment it is required to make for the year under section 1027, for an amount of interest that is greater than the amount for which it would be liable for the year, in respect of that aggregate, if it had been a qualified corporation, within the meaning of section 737.18.18, for the year.

The corporation to which the fifth paragraph refers is a corporation that is not a qualified corporation, for the purposes of Title VII.2.4 of Book IV, for the year and

(a)  would be such a qualified corporation for the year, but for section 737.18.23; or

(b)  was such a qualified corporation for the preceding taxation year and would be such a qualified corporation for the year, but for section 737.18.23 and if the definition of "qualified corporation" in the first paragraph of that section 737.18.18 were read without reference to paragraph c.

1972, c. 23, s. 763; 1972, c. 26, s. 74; 1973, c. 17, s. 119; 1982, c. 5, s. 186; 1986, c. 15, s. 182; 1986, c. 19, s. 191; 1987, c. 21, s. 74; 1991, c. 8, s. 83; 1992, c. 1, s. 181; 1993, c. 64, s. 172; 1995, c. 1, s. 171; 1995, c. 49, s. 230; 1995, c. 63, s. 212; 1997, c. 3, s. 71; 1997, c. 14, s. 246; 1998, c. 16, s. 238; 1999, c. 83, s. 225; 2000, c. 39, s. 200; 2002, c. 9, s. 120; 2002, c. 40, s. 225; 2002, c. 46, s. 2; 2003, c. 9, s. 369; 2005, c. 1, s. 271.