I-3 - Taxation Act

Section 776.1.5.4 Disposition versions

2021-06-02

776.1.5.4. (Repealed).

1993, c. 19, s. 65; 1994, c. 16, s. 51; 1995, c. 63, s. 261; 1997, c. 3, s. 71; 1999, c. 8, s. 20; 2021, c. 14, s. 99.

2006-03-01

776.1.5.4. A corporation may deduct in computing its tax otherwise payable for a taxation year under this Part, an amount not exceeding 15% of the amount determined in respect of the corporation for the year under the second paragraph.

The amount referred to in the first paragraph in respect of a corporation for a taxation year is the aggregate of all amounts each of which, on the one hand, is an amount relating to an amount paid in the year by the corporation to a particular eligible beneficiary for the year under a registered gain-sharing plan that is part of a quality approach, referred to in this paragraph as the “particular plan”, in respect of which the corporation is a qualified corporation and, on the other hand, is equal to the least of

(a)  $3,000,

(b)  the aggregate of all amounts each of which is an amount paid in the year by the corporation to the particular eligible beneficiary under the particular plan, and

(c)  the amount by which $6,000 exceeds the aggregate of all amounts each of which is an amount determined under this paragraph in respect of an amount paid by the corporation in a preceding taxation year to the particular eligible beneficiary under the particular plan.

For the purposes of the second paragraph, an amount paid by a corporation to an eligible beneficiary under a registered gain-sharing plan that is part of a quality approach of the corporation is deemed not to have been paid under the plan if it was paid to the eligible beneficiary after the earlier of

(a)  the last day of the fifth taxation year of the corporation following that which includes the date on which a registration number was assigned to the plan by the Minister in accordance with section 776.1.5.3, and

(b)  the earlier of the day on which the certificate issued by the Minister of Industry and Trade in respect of the plan is revoked and, where applicable, any earlier day on which such revocation is effective.

1993, c. 19, s. 65; 1994, c. 16, s. 51; 1995, c. 63, s. 261; 1997, c. 3, s. 71; 1999, c. 8, s. 20.