I-3 - Taxation Act

Section 1129.69.2 Disposition versions

2019-06-19

1129.69.2. An individual who has deducted an amount in computing tax payable for a particular taxation year under section 752.0.10.6.2, in relation to a registered pledge, is required to pay tax, the amount of which is determined under the second paragraph, for the year (in this section referred to as the “year of the default”) in which the registered pledge is, because of subparagraph i of paragraph b of section 752.0.10.15.5, deemed never to have been registered.

The amount to which the first paragraph refers in respect of the particular year is equal to the aggregate of

(a)  the amount (in subparagraph b referred to as the “excess tax credit amount”) which corresponds,

i.  where the particular year precedes the taxation year 2017, to the amount obtained by multiplying by 6% the aggregate of all amounts each of which is the eligible amount of a gift that was taken into account in determining the amount that the individual deducted under section 752.0.10.6.2 for the particular year, in relation to the pledge, and

ii.  where the particular year is subsequent to the taxation year 2016, to the amount determined by the formula

(A × B) + (C × D); and

(b)  the amount of interest computed on the excess tax credit amount at the rate set under section 28 of the Tax Administration Act (chapter A-6.002) for the period beginning on 1 May of the year following the particular year and ending before the beginning of the year of the default.

In the formula in subparagraph ii of subparagraph a of the second paragraph,

(a)  A is a rate of 4.25%;

(b)  B is the lesser of

i.  the aggregate of all amounts each of which is the eligible amount of a gift that was taken into account in determining the amount that the individual deducted under section 752.0.10.6.2 for the particular year, in relation to the pledge, and

ii.  the amount by which the individual’s taxable income determined under Part I for the particular year exceeds the amount in dollars referred to in paragraph d of section 750 which, with reference to section 750.2, is applicable for the particular year;

(c)  C is a rate of 6%; and

(d)  D is the amount by which the aggregate referred to in subparagraph i of subparagraph b exceeds the amount determined under subparagraph ii of that subparagraph b in respect of the individual for the particular year.

The first paragraph does not apply in respect of a particular taxation year for which the Minister may redetermine the tax, interest and penalties under Part I in accordance with subsection 2 of section 1010.

2015, c. 21, s. 525; 2019, c. 14, s. 453.

2015-10-21

1129.69.2. An individual who has deducted an amount in computing tax payable for a particular taxation year under section 752.0.10.6.2, in relation to a registered pledge, is required to pay tax, the amount of which is determined under the second paragraph, for the year (in this section referred to as the “year of the default”) in which the registered pledge is, because of subparagraph i of paragraph b of section 752.0.10.15.5, deemed never to have been registered.

The amount to which the first paragraph refers in respect of the particular year is equal to the aggregate of

(a)  the amount (in subparagraph b referred to as the “excess tax credit amount”) obtained by multiplying 6% by the aggregate of all amounts each of which is the eligible amount of a gift that was taken into account in determining the amount that the individual deducted under section 752.0.10.6.2 for the particular year, in relation to the pledge; and

(b)  the amount of interest computed on the excess tax credit amount at the rate set under section 28 of the Tax Administration Act (chapter A-6.002) for the period beginning on 1 May of the year following the particular year and ending before the beginning of the year of the default.

The first paragraph does not apply in respect of a particular taxation year for which the Minister may redetermine the tax, interest and penalties under Part I in accordance with subsection 2 of section 1010.

2015, c. 21, s. 525.