I-3 - Taxation Act

Section 1159.4 Disposition versions

2006-03-01

1159.4. Where, in a taxation year, a corporation is deemed to be a financial institution by reason of the election made by the corporation under subsection 1 of section 150 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15), or a savings and credit union is deemed to have made such an election under subsection 6 of the said section, and, for the part or parts of the year, as the case may be, during which the corporation or savings and credit union was a financial institution, the value of its supplies that are financial services is less than 90% of the value of the aggregate of its supplies, the amount of the compensation tax is the amount determined by the formula

A × B / C.

For the purposes of the formula set forth in the first paragraph,

(a)  A is the amount of the compensation tax that would otherwise be computed under section 1159.3 if that section were read without reference to the third paragraph thereof;

(b)  B is the value of the supplies of the corporation or the savings and credit union, as the case may be, that are financial services for the part or parts of the year, as the case may be, during which it was a financial institution, and

(c)  C is the value of the aggregate of the supplies of the corporation or the savings and credit union, as the case may be, for the part or parts of the year, as the case may be, during which it was a financial institution.

1993, c. 19, s. 148; 1997, c. 3, s. 71.