I-3 - Taxation Act

Section 771.0.2.6 Disposition versions

2021-12-10

771.0.2.6. The percentage that is required to be determined for a taxation year for the purposes of paragraph d.4 of subsection 1 of section 771 in respect of a primary and manufacturing sectors corporation is equal,

(a)  if the proportion of primary and manufacturing sectors activities of the corporation for the taxation year is 50% or more, to the total of

i.  the proportion of 7.8% that the number of days in the taxation year that precede 1 January 2018 is of the number of days in the taxation year,

ii.  the proportion of 7.7% that the number of days in the taxation year that follow 31 December 2017 but precede 1 January 2019 is of the number of days in the taxation year,

iii.  the proportion of 7.6% that the number of days in the taxation year that follow 31 December 2018 but precede 1 January 2020 is of the number of days in the taxation year,

iv.  the proportion of 7.5% that the number of days in the taxation year that follow 31 December 2019 but precede 26 March 2021 is of the number of days in the taxation year, and

v.  the proportion of 8.3% that the number of days in the taxation year that follow 25 March 2021 is of the number of days in the taxation year; and

(b)  in any other case, to the greater of the percentages determined by the formulas

i.  A × (B – 25%)/25%, and

ii.  [C × (D – 5,000)/500] + [E × (B – 25%)/25%].

In the formulas in subparagraph b of the first paragraph,

(a)  A is the percentage that would be determined under subparagraph a of the first paragraph if that subparagraph applied;

(b)  B is the proportion of primary and manufacturing sectors activities of the corporation for the taxation year;

(c)  C is the total of

i.  the proportion of 3.8% that the number of days in the taxation year that precede 1 January 2018 is of the number of days in the taxation year,

ii.  the proportion of 3.7% that the number of days in the taxation year that follow 31 December 2017 but precede 28 March 2018 is of the number of days in the taxation year,

ii.1.  the proportion of 4.7% that the number of days in the taxation year that follow 27 March 2018 but precede 1 January 2019 is of the number of days in the taxation year,

iii.  the proportion of 5.6% that the number of days in the taxation year that follow 31 December 2018 but precede 1 January 2020 is of the number of days in the taxation year,

iv.  the proportion of 6.5% that the number of days in the taxation year that follow 31 December 2019 but precede 1 January 2021 is of the number of days in the taxation year,

v.  the proportion of 7.5% that the number of days in the taxation year that follow 31 December 2020 but precede 26 March 2021 is of the number of days in the taxation year, and

vi.  the proportion of 8.3% that the number of days in the taxation year that follow 25 March 2021 is of the number of days in the taxation year;

(d)  D is 5,000 or, if it is greater but without exceeding 5,500, the number of hours referred to in subparagraph a or b of the first paragraph of section 771.2.1.2.1 in respect of the corporation for the taxation year or the number of hours referred to in the first paragraph of section 771.2.1.2.2 in respect of a partnership of which the corporation is a member in the taxation year, whichever number is greater;

(e)  E is the total of

i.  the proportion of 4% that the number of days in the taxation year that precede 28 March 2018 is of the number of days in the taxation year,

ii.  the proportion of 3% that the number of days in the taxation year that follow 27 March 2018 but precede 1 January 2019 is of the number of days in the taxation year,

iii.  the proportion of 2% that the number of days in the taxation year that follow 31 December 2018 but precede 1 January 2020 is of the number of days in the taxation year,

iv.  the proportion of 1% that the number of days in the taxation year that follow 31 December 2019 but precede 1 January 2021 is of the number of days in the taxation year, and

v.  a nil percentage in respect of the days in the taxation year that follow 31 December 2020.

2017, c. 1, s. 211; 2019, c. 14, s. 239; 2021, c. 36, s. 87.

2019-06-19

771.0.2.6. The percentage that is required to be determined for a taxation year for the purposes of paragraph d.4 of subsection 1 of section 771 in respect of a primary and manufacturing sectors corporation is equal,

(a)  if the proportion of primary and manufacturing sectors activities of the corporation for the taxation year is 50% or more, to the total of

i.  the proportion of 7.8% that the number of days in the taxation year that precede 1 January 2018 is of the number of days in the taxation year,

ii.  the proportion of 7.7% that the number of days in the taxation year that follow 31 December 2017 but precede 1 January 2019 is of the number of days in the taxation year,

iii.  the proportion of 7.6% that the number of days in the taxation year that follow 31 December 2018 but precede 1 January 2020 is of the number of days in the taxation year, and

iv.  the proportion of 7.5% that the number of days in the taxation year that follow 31 December 2019 is of the number of days in the taxation year; and

(b)  in any other case, to the greater of the percentages determined by the formulas

i.  A × (B – 25%)/25%, and

ii.  [C × (D – 5,000)/500] + [E × (B – 25%)/25%].

In the formulas in subparagraph b of the first paragraph,

(a)  A is the percentage that would be determined under subparagraph a of the first paragraph if that subparagraph applied;

(b)  B is the proportion of primary and manufacturing sectors activities of the corporation for the taxation year;

(c)  C is the total of

i.  the proportion of 3.8% that the number of days in the taxation year that precede 1 January 2018 is of the number of days in the taxation year,

ii.  the proportion of 3.7% that the number of days in the taxation year that follow 31 December 2017 but precede 28 March 2018 is of the number of days in the taxation year,

ii.1.  the proportion of 4.7% that the number of days in the taxation year that follow 27 March 2018 but precede 1 January 2019 is of the number of days in the taxation year,

iii.  the proportion of 5.6% that the number of days in the taxation year that follow 31 December 2018 but precede 1 January 2020 is of the number of days in the taxation year,

iv.  the proportion of 6.5% that the number of days in the taxation year that follow 31 December 2019 but precede 1 January 2021 is of the number of days in the taxation year, and

v.  the proportion of 7.5% that the number of days in the taxation year that follow 31 December 2020 is of the number of days in the taxation year;

(d)  D is 5,000 or, if it is greater but without exceeding 5,500, the number of hours referred to in subparagraph a or b of the first paragraph of section 771.2.1.2.1 in respect of the corporation for the taxation year or the number of hours referred to in the first paragraph of section 771.2.1.2.2 in respect of a partnership of which the corporation is a member in the taxation year, whichever number is greater;

(e)  E is the total of

i.  the proportion of 4% that the number of days in the taxation year that precede 28 March 2018 is of the number of days in the taxation year,

ii.  the proportion of 3% that the number of days in the taxation year that follow 27 March 2018 but precede 1 January 2019 is of the number of days in the taxation year,

iii.  the proportion of 2% that the number of days in the taxation year that follow 31 December 2018 but precede 1 January 2020 is of the number of days in the taxation year,

iv.  the proportion of 1% that the number of days in the taxation year that follow 31 December 2019 but precede 1 January 2021 is of the number of days in the taxation year, and

v.  a nil percentage in respect of the days in the taxation year that follow 31 December 2020.

2017, c. 1, s. 211; 2019, c. 14, s. 239.

2017-02-08

771.0.2.6. The percentage that is required to be determined for a taxation year for the purposes of paragraph d.4 of subsection 1 of section 771 in respect of a primary and manufacturing sectors corporation is equal,

(a)  if the proportion of primary and manufacturing sectors activities of the corporation for the taxation year is 50% or more, to the total of

i.  the proportion of 7.8% that the number of days in the taxation year that precede 1 January 2018 is of the number of days in the taxation year,

ii.  the proportion of 7.7% that the number of days in the taxation year that follow 31 December 2017 but precede 1 January 2019 is of the number of days in the taxation year,

iii.  the proportion of 7.6% that the number of days in the taxation year that follow 31 December 2018 but precede 1 January 2020 is of the number of days in the taxation year, and

iv.  the proportion of 7.5% that the number of days in the taxation year that follow 31 December 2019 is of the number of days in the taxation year; and

(b)  in any other case, to the greater of the percentages determined by the formulas

i.  A × (B – 25%)/25%, and

ii.  [C × (D – 5,000)/500] + [4% × (B – 25%)/25%].

In the formulas in subparagraph b of the first paragraph,

(a)  A is the percentage that would be determined under subparagraph a of the first paragraph if that subparagraph applied;

(b)  B is the proportion of primary and manufacturing sectors activities of the corporation for the taxation year;

(c)  C is the total of

i.  the proportion of 3.8% that the number of days in the taxation year that precede 1 January 2018 is of the number of days in the taxation year,

ii.  the proportion of 3.7% that the number of days in the taxation year that follow 31 December 2017 but precede 1 January 2019 is of the number of days in the taxation year,

iii.  the proportion of 3.6% that the number of days in the taxation year that follow 31 December 2018 but precede 1 January 2020 is of the number of days in the taxation year, and

iv.  the proportion of 3.5% that the number of days in the taxation year that follow 31 December 2019 is of the number of days in the taxation year; and

(d)  D is 5,000 or, if it is greater but without exceeding 5,500, the number of hours referred to in subparagraph a or b of the first paragraph of section 771.2.1.2.1 in respect of the corporation for the taxation year or the number of hours referred to in the first paragraph of section 771.2.1.2.2 in respect of a partnership of which the corporation is a member in the taxation year, whichever number is greater.

2017, c. 1, s. 211.