I-3 - Taxation Act

Section 1159.3 Disposition versions

2015-10-21

1159.3. Subject to the first paragraph of sections 1159.3.1 to 1159.3.4, the compensation tax a person referred to in section 1159.2 is required to pay for a taxation year is equal to,

(a)  in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities, subject to subparagraph d, the aggregate of

i.  0.25% of its paid-up capital as established for the year under Title II of Book III of Part IV, computed without reference to sections 1141.3 to 1141.11, and

ii.  2% of the amount paid as wages in the year;

(b)  in the case of an insurance corporation, the aggregate of

i.  0.35% of any premium payable in respect of which tax is to be paid in the year under Book II of Part VI, without reference to subparagraph b of the third paragraph of section 1167 and section 1170.1, and

ii.  0.35% of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI;

iii.  (subparagraph repealed);

(c)  in the case of a savings and credit union, subject to subparagraph d, 2.5% of the amount paid as wages in the year;

(d)  in the case of a person referred to in either of subparagraphs a and c that is also an insurance corporation, the aggregate of

i.  the amount otherwise determined in the person’s respect under subparagraph a or c, as the case may be, and

ii.  0.35% of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI;

(d.1)  in the case of a professional order that has set up an insurance fund, in accordance with section 86.1 of the Professional Code (chapter C-26), 0.35% of the amount established for the year in respect of the insurance fund in accordance with section 85.2 of that Code;

(e)  in the case of any other person, 1% of the amount paid as wages in the year.

However, subject to the second paragraph of sections 1159.3.1 to 1159.3.4, if a person is not a financial institution throughout its taxation year, the compensation tax the person is required to pay for the year is equal to,

(a)  in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities, subject to subparagraph d, the aggregate of

i.  0.25% of the product obtained by multiplying its paid-up capital as established for the year under Title II of Book III of Part IV, computed without reference to sections 1141.3 to 1141.11, by the proportion that the number of days in its taxation year during which it was a financial institution is of the number of days in its taxation year, and

ii.  2% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution;

(b)  in the case of an insurance corporation, the aggregate of

i.  0.35% of the product obtained by multiplying any premium payable in respect of which tax is to be paid in the year under Book II of Part VI, without reference to subparagraph b of the third paragraph of section 1167 and section 1170.1, by the proportion that the number of days in its taxation year during which it was a financial institution is of the number of days in its taxation year, and

ii.  0.35% of the product obtained by multiplying any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI by the ratio between the number of days in its taxation year during which it was a financial institution and the number of days in its taxation year;

iii.  (subparagraph repealed);

(c)  in the case of a savings and credit union, subject to subparagraph d, 2.5% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution;

(d)  in the case of a person referred to in either of subparagraphs a and c that is also an insurance corporation, the aggregate of

i.  the amount otherwise determined in its respect under subparagraph a or c, as the case may be, and

ii.  0.35% of the product obtained by multiplying the amount of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI by the ratio between the number of days in its taxation year during which it was a financial institution and the number of days in its taxation year;

(e)  in the case of any other person, except a professional order that has set up an insurance fund, in accordance with section 86.1 of the Professional Code, 1% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution.

For the purposes of the second paragraph, where a person is a financial institution, with the exception of a corporation that is deemed to be a financial institution by reason of an election made by it under section 150 of the Excise Tax Act (R.S.C. 1985, c. E-15), at any time in its taxation year, it is deemed to be such an institution throughout the period commencing at that time and ending on the last day of its taxation year.

1993, c. 19, s. 148; 1995, c. 63, s. 254; 1997, c. 3, s. 71; 1999, c. 83, s. 269; 2002, c. 9, s. 133; 2003, c. 2, s. 296; 2004, c. 21, s. 500; 2005, c. 38, s. 332; 2008, c. 11, s. 186; 2011, c. 1, s. 110; 2015, c. 21, s. 531.

2011-02-17

1159.3. Subject to the first paragraph of section 1159.3.1, the compensation tax a person referred to in section 1159.2 is required to pay for a taxation year is equal to,

(a)  in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities, subject to subparagraph d, the aggregate of

i.  0.25% of its paid-up capital as established for the year under Title II of Book III of Part IV, computed without reference to sections 1141.3 to 1141.11, and

ii.  2% of the amount paid as wages in the year;

(b)  in the case of an insurance corporation, the aggregate of

i.  0.35% of any premium payable in respect of which tax is to be paid in the year under Book II of Part VI, without reference to subparagraph b of the third paragraph of section 1167 and section 1170.1, and

ii.  0.35% of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI;

iii.  (subparagraph repealed);

(c)  in the case of a savings and credit union, subject to subparagraph d, 2.5% of the amount paid as wages in the year;

(d)  in the case of a person referred to in either of subparagraphs a and c that is also an insurance corporation, the aggregate of

i.  the amount otherwise determined in the person’s respect under subparagraph a or c, as the case may be, and

ii.  0.35% of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI;

(d.1)  in the case of a professional order that has set up an insurance fund, in accordance with section 86.1 of the Professional Code (chapter C-26), 0.35% of the amount established for the year in respect of the insurance fund in accordance with section 85.2 of that Code;

(e)  in the case of any other person, 1% of the amount paid as wages in the year.

However, subject to the second paragraph of section 1159.3.1, if a person is not a financial institution throughout its taxation year, the compensation tax the person is required to pay for the year is equal to,

(a)  in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities, subject to subparagraph d, the aggregate of

i.  0.25% of the product obtained by multiplying its paid-up capital as established for the year under Title II of Book III of Part IV, computed without reference to sections 1141.3 to 1141.11, by the proportion that the number of days in its taxation year during which it was a financial institution is of the number of days in its taxation year, and

ii.  2% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution;

(b)  in the case of an insurance corporation, the aggregate of

i.  0.35% of the product obtained by multiplying any premium payable in respect of which tax is to be paid in the year under Book II of Part VI, without reference to subparagraph b of the third paragraph of section 1167 and section 1170.1, by the proportion that the number of days in its taxation year during which it was a financial institution is of the number of days in its taxation year, and

ii.  0.35% of the product obtained by multiplying any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI by the ratio between the number of days in its taxation year during which it was a financial institution and the number of days in its taxation year;

iii.  (subparagraph repealed);

(c)  in the case of a savings and credit union, subject to subparagraph d, 2.5% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution;

(d)  in the case of a person referred to in either of subparagraphs a and c that is also an insurance corporation, the aggregate of

i.  the amount otherwise determined in its respect under subparagraph a or c, as the case may be, and

ii.  0.35% of the product obtained by multiplying the amount of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI by the ratio between the number of days in its taxation year during which it was a financial institution and the number of days in its taxation year;

(e)  in the case of any other person, except a professional order that has set up an insurance fund, in accordance with section 86.1 of the Professional Code, 1% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution.

For the purposes of the second paragraph, where a person is a financial institution, with the exception of a corporation that is deemed to be a financial institution by reason of an election made by it under subsection 1 of section 150 of the Excise Tax Act (R.S.C. 1985, c. E-15), at any time in its taxation year, it is deemed to be such an institution throughout the period commencing at that time and ending on the last day of its taxation year.

1993, c. 19, s. 148; 1995, c. 63, s. 254; 1997, c. 3, s. 71; 1999, c. 83, s. 269; 2002, c. 9, s. 133; 2003, c. 2, s. 296; 2004, c. 21, s. 500; 2005, c. 38, s. 332; 2008, c. 11, s. 186; 2011, c. 1, s. 110.

2008-10-15

1159.3. The compensation tax a person referred to in section 1159.2 is required to pay for a taxation year is equal to,

(a)  in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities, subject to subparagraph d, the aggregate of

i.  0.25% of its paid-up capital as established for the year under Title II of Book III of Part IV, computed without reference to sections 1141.3 to 1141.11, and

ii.  2% of the amount paid as wages in the year;

(b)  in the case of an insurance corporation, the aggregate of

i.  0.35% of any premium payable in respect of which tax is to be paid in the year under Book II of Part VI, without reference to subparagraph b of the third paragraph of section 1167 and section 1170.1, and

ii.  0.35% of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI;

iii.  (subparagraph repealed);

(c)  in the case of a savings and credit union, subject to subparagraph d, 2.5% of the amount paid as wages in the year;

(d)  in the case of a person referred to in either of subparagraphs a and c that is also an insurance corporation, the aggregate of

i.  the amount otherwise determined in the person’s respect under subparagraph a or c, as the case may be, and

ii.  0.35% of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI;

(d.1)  in the case of a professional order that has set up an insurance fund, in accordance with section 86.1 of the Professional Code (chapter C-26), 0.35% of the amount established for the year in respect of the insurance fund in accordance with section 85.2 of that Code;

(e)  in the case of any other person, 1% of the amount paid as wages in the year.

Notwithstanding the foregoing, where a person is not a financial institution throughout its taxation year, the compensation tax the person is required to pay for the year is equal to,

(a)  in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities, subject to subparagraph d, the aggregate of

i.  0.25% of the product obtained by multiplying its paid-up capital as established for the year under Title II of Book III of Part IV, computed without reference to sections 1141.3 to 1141.11, by the proportion that the number of days in its taxation year during which it was a financial institution is of the number of days in its taxation year, and

ii.  2% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution;

(b)  in the case of an insurance corporation, the aggregate of

i.  0.35% of the product obtained by multiplying any premium payable in respect of which tax is to be paid in the year under Book II of Part VI, without reference to subparagraph b of the third paragraph of section 1167 and section 1170.1, by the proportion that the number of days in its taxation year during which it was a financial institution is of the number of days in its taxation year, and

ii.  0.35% of the product obtained by multiplying any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI by the ratio between the number of days in its taxation year during which it was a financial institution and the number of days in its taxation year;

iii.  (subparagraph repealed);

(c)  in the case of a savings and credit union, subject to subparagraph d, 2.5% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution;

(d)  in the case of a person referred to in either of subparagraphs a and c that is also an insurance corporation, the aggregate of

i.  the amount otherwise determined in its respect under subparagraph a or c, as the case may be, and

ii.  0.35% of the product obtained by multiplying the amount of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI by the ratio between the number of days in its taxation year during which it was a financial institution and the number of days in its taxation year;

(e)  in the case of any other person, except a professional order that has set up an insurance fund, in accordance with section 86.1 of the Professional Code, 1% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution.

For the purposes of the second paragraph, where a person is a financial institution, with the exception of a corporation that is deemed to be a financial institution by reason of an election made by it under subsection 1 of section 150 of the Excise Tax Act (R.S.C. 1985, c. E-15), at any time in its taxation year, it is deemed to be such an institution throughout the period commencing at that time and ending on the last day of its taxation year.

1993, c. 19, s. 148; 1995, c. 63, s. 254; 1997, c. 3, s. 71; 1999, c. 83, s. 269; 2002, c. 9, s. 133; 2003, c. 2, s. 296; 2004, c. 21, s. 500; 2005, c. 38, s. 332; 2008, c. 11, s. 186.

2006-03-01

1159.3. The compensation tax a person referred to in section 1159.2 is required to pay for a taxation year is equal to,

(a)  in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities, subject to subparagraph d, the aggregate of

i.  0.25% of its paid-up capital as established for the year under Title II of Book III of Part IV, computed without reference to sections 1141.3 to 1141.11, and

ii.  2% of the amount paid as wages in the year;

(b)  in the case of an insurance corporation, the aggregate of

i.  0.35% of any premium payable in respect of which tax is to be paid in the year under Book II of Part VI, without reference to subparagraph b of the third paragraph of section 1167 and section 1170.1, and

ii.  0.35% of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI;

iii.  (subparagraph repealed);

(c)  in the case of a savings and credit union, subject to subparagraph d, 2.5% of the amount paid as wages in the year;

(d)  in the case of a person referred to in either of subparagraphs a and c that is also an insurance corporation, the aggregate of

i.  the amount otherwise determined in the person’s respect under subparagraph a or c, as the case may be, and

ii.  0.35% of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI;

(d.1)  in the case of a professional order that has set up an insurance fund, in accordance with section 86.1 of the Professional Code (chapter C-26), 0.35% of the amount established for the year in respect of the insurance fund in accordance with subparagraph p of the first paragraph of section 86 of that Code;

(e)  in the case of any other person, 1% of the amount paid as wages in the year.

Notwithstanding the foregoing, where a person is not a financial institution throughout its taxation year, the compensation tax the person is required to pay for the year is equal to,

(a)  in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities, subject to subparagraph d, the aggregate of

i.  0.25% of the product obtained by multiplying its paid-up capital as established for the year under Title II of Book III of Part IV, computed without reference to sections 1141.3 to 1141.11, by the proportion that the number of days in its taxation year during which it was a financial institution is of the number of days in its taxation year, and

ii.  2% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution;

(b)  in the case of an insurance corporation, the aggregate of

i.  0.35% of the product obtained by multiplying any premium payable in respect of which tax is to be paid in the year under Book II of Part VI, without reference to subparagraph b of the third paragraph of section 1167 and section 1170.1, by the proportion that the number of days in its taxation year during which it was a financial institution is of the number of days in its taxation year, and

ii.  0.35% of the product obtained by multiplying any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI by the ratio between the number of days in its taxation year during which it was a financial institution and the number of days in its taxation year;

iii.  (subparagraph repealed);

(c)  in the case of a savings and credit union, subject to subparagraph d, 2.5% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution;

(d)  in the case of a person referred to in either of subparagraphs a and c that is also an insurance corporation, the aggregate of

i.  the amount otherwise determined in its respect under subparagraph a or c, as the case may be, and

ii.  0.35% of the product obtained by multiplying the amount of any taxable premium that is paid in respect of which tax is to be paid in the year under Book III of Part VI by the ratio between the number of days in its taxation year during which it was a financial institution and the number of days in its taxation year;

(e)  in the case of any other person, except a professional order that has set up an insurance fund, in accordance with section 86.1 of the Professional Code, 1% of the amount paid as wages during the part or parts of the year, as the case may be, during which the person was a financial institution.

For the purposes of the second paragraph, where a person is a financial institution, with the exception of a corporation that is deemed to be a financial institution by reason of an election made by it under subsection 1 of section 150 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15), at any time in its taxation year, it is deemed to be such an institution throughout the period commencing at that time and ending on the last day of its taxation year.

1993, c. 19, s. 148; 1995, c. 63, s. 254; 1997, c. 3, s. 71; 1999, c. 83, s. 269; 2002, c. 9, s. 133; 2003, c. 2, s. 296; 2004, c. 21, s. 500; 2005, c. 38, s. 332.