Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2017-11-20 and last amended on 2017-07-01. Previous Versions

Marginal note:Appeals to Federal Court of Appeal
  •  (1) An appeal to the Federal Court of Appeal pursuant to subsection 172(3) may be instituted by filing a notice of appeal in the Court within 30 days from

    • (a) the day on which the Minister notifies a person under subsection 165(3) of the Minister’s action in respect of a notice of objection filed under subsection 168(4),

    • (b) [Repealed, 2011, c. 24, s. 55]

    • (c) the mailing of notice to the administrator of the registered pension plan under subsection 147.1(11),

    • (c.1) the sending of a notice to a promoter of a registered education savings plan under subsection 146.1(12.1),

    • (c.2) the mailing of notice to the administrator of the pooled registered pension plan under subsection 147.5(24), or

    • (d) the time the decision of the Minister to refuse the application for acceptance of the amendment to the registered pension plan or pooled registered pension plan was mailed, or otherwise communicated in writing, by the Minister to any person,

    as the case may be, or within such further time as the Court of Appeal or a judge thereof may, either before or after the expiration of those 30 days, fix or allow.

  • Marginal note:No jurisdiction in a Tax Court of Canada or Federal Court

    (2) Neither the Tax Court of Canada nor the Federal Court has jurisdiction to entertain any proceeding in respect of a decision of the Minister from which an appeal may be instituted under this section.

  • Marginal note:Summary disposition of appeal

    (3) An appeal to the Federal Court of Appeal instituted under this section shall be heard and determined in a summary way.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 180;
  • 1994, c. 7, Sch. II, s. 142;
  • 1998, c. 19, s. 47;
  • 2002, c. 8, s. 183;
  • 2005, c. 19, s. 40;
  • 2011, c. 24, s. 55;
  • 2012, c. 31, s. 42.

PART I.01Tax in Respect of Stock Option Benefit Deferral

Marginal note:Election — special tax and relief for deferral of stock option benefits
  •  (1) A taxpayer may make an election in prescribed form to have subsection (2) apply for a taxation year in respect of particular securities if

    • (a) the taxpayer elected to have subsection 7(8) apply, as that subsection applied before 4:00 p.m. Eastern Standard Time, March 4, 2010, in respect of the particular securities; and

    • (b) the taxpayer has, in the year and before 2015, disposed of the particular securities; and

    • (c) the election under this subsection is filed

      • (i) if the taxpayer has disposed of the particular securities before 2010, on or before the taxpayer’s filing-due date for 2010, and

      • (ii) in any other case, on or before the taxpayer’s filing-due date for the year of disposition of the particular securities.

  • Marginal note:Effect of election

    (2) If a taxpayer makes an election under subsection (1) for a taxation year in respect of particular securities, the following rules apply:

    • (a) paragraph 110(1)(d) shall be read without reference to the phrase “1/2 of” in respect of the amount of the benefit deemed by subsection 7(1) to have been received by the taxpayer in the year in respect of the particular securities;

    • (b) the taxpayer is deemed to have realized a capital gain for the year equal to the lesser of

      • (i) the amount that is deductible by the taxpayer under paragraph 110(1)(d), as modified by paragraph (a), and

      • (ii) the taxpayer’s capital loss in respect of the disposition of the particular securities;

    • (c) the taxpayer is liable to pay a tax for the year equal to

      • (i) in the case of a taxpayer resident in the Province of Quebec at the end of the year, 2/3 of the taxpayer’s proceeds of disposition (as defined in section 54, but determined without reference to subsection 73(1)) of the particular securities, and

      • (ii) in any other case, the taxpayer’s proceeds of disposition (as defined in section 54, but determined without reference to subsection 73(1)) of the particular securities;

    • (d) to the extent that the taxation year is outside the normal reassessment period (as defined in subsection 152(3.1)), the election is deemed to be an application for reassessment under subsection 152(4.2);

    • (e) notwithstanding subsection 152(4) and as the circumstances require, the Minister shall re-determine the taxpayer’s net capital loss (as defined in subsection 111(8)) for the taxation year and reassess any taxation year in which an amount has been deducted under paragraph 111(1)(b).

    • (f) subparagraph 127.52(1)(h)(ii) is to be read as “the amount deducted under paragraph 110(1)(d)” for the year in respect of the particular securities; and

    • (g) notwithstanding subsection 152(4) and as the circumstances require, the Minister shall re-determine the taxpayer’s additional tax under subsection 120.2(3) for the taxation year and reassess any taxation year in which an amount has been deducted under subsection 120.2(1).

  • Marginal note:Non-application for employment insurance purposes

    (3) An amount included under subsection (2)(b) in computing a person’s income under Part I of this Act for a taxation year shall not be included in determining the income of the person for the year under Part VII of the Employment Insurance Act.

  • Marginal note:Provisions applicable to this Part

    (4) Subsection 150(3), sections 150.1 to 152, 155 to 156.1 and 158 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2010, c. 25, s. 46;
  • 2011, c. 24, s. 56.

PART I.1Individual Surtax

 [Repealed, 2001, c. 17, s. 161(1)]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 180.1;
  • 1994, c. 7, Sch. II, s. 143, Sch. VIII, s. 103, c. 8, s. 28;
  • 1999, c. 22, s. 67;
  • 2000, c. 19, s. 52;
  • 2001, c. 17, ss. 160, 161.

PART I.2Tax on Old Age Security Benefits

Marginal note:Definitions
  •  (1) The definitions in this subsection apply in this Part.

    adjusted income

    revenu modifié

    adjusted income of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if in computing that income no amount were

    • (a) included

      • (i) under paragraph 56(1)(q.1) or subsection 56(6),

      • (ii) in respect of a gain from a disposition of property to which section 79 applies, or

      • (iii) in respect of a gain described in subsection 40(3.21), or

    • (b) deductible under paragraph 60(w), (y) or (z); (revenu modifié)

    base taxation year

    année de base

    base taxation year in relation to a month, means

    • (a) where the month is any of the first 6 months of a calendar year, the taxation year that ended on December 31 of the second preceding calendar year, and

    • (b) where the month is any of the last 6 months of a calendar year, the taxation year that ended on December 31 of the preceding calendar year; (année de base)

    return of income

    déclaration de revenu

    return of income in respect of an individual for a taxation year means

    • (a) where the individual was resident in Canada throughout the year, the individual’s return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is filed or required to be filed under Part I for the year, and

    • (b) in any other case, a prescribed form containing prescribed information. (déclaration de revenu)

  • Marginal note:Tax payable

    (2) Every individual shall pay a tax under this Part for each taxation year equal to the amount determined by the formula

    A(1 - B)

    where

    A
    is the lesser of
    • (a) the amount, if any, by which

      • (i) the total of all amounts each of which is the amount of any pension, supplement or spouse’s or commmon-law partner’s allowance under the Old Age Security Act included in computing the individual’s income under Part I for the year

      exceeds

      • (ii) the amount of any deduction allowed under subparagraph 60(n)(i) in computing the individual’s income under Part I for the year, and

    • (b) 15% of the amount, if any, by which the individual’s adjusted income for the year exceeds $50,000; and

    B
    is the rate of tax payable by the individual under Part XIII on amounts described in paragraph (a) of the description of A.
  • Marginal note:Withholding

    (3) Where at any time Her Majesty pays an amount described in paragraph (a) of the description of A in subsection 180.2(2) in respect of a month to an individual, there shall be deducted or withheld from that amount on account of the individual’s tax payable under this Part for the year the amount determined under subsection 180.2(4) in respect of that amount.

  • Marginal note:Determination of amount to be withheld

    (4) The amount determined in respect of a particular amount described in subsection 180.2(3) is

    • (a) where the individual has filed a return of income for the base taxation year in relation to the month in which the particular amount is paid, the lesser of

      • (i) the amount by which the particular amount exceeds the amount of tax payable under Part XIII by the individual on the particular amount, and

      • (ii) the amount determined by the formula

        (0.0125A - $665)(1 - B)

        where

        A
        is the individual’s adjusted income for the base taxation year, and
        B
        is the rate of tax payable under Part XIII by the individual on the particular amount;
    • (b) where the individual has not filed a return of income for the base taxation year in relation to the month and

      • (i) the Minister has demanded under subsection 150(2) that the individual file the return, or

      • (ii) the individual was non-resident at any time in the base taxation year,

      the amount by which the particular amount exceeds the amount of tax payable under Part XIII by the individual on the particular amount; and

    • (c) in any other case, nil.

  • Marginal note:Return

    (5) Every individual liable to pay tax under this Part for a taxation year shall

    • (a) file with the Minister, without notice or demand therefor,

      • (i) where the individual is resident in Canada throughout the taxation year, a return for the year under this Part in prescribed form and containing prescribed information on or before the individual’s filing-due date for the year, and

      • (ii) in any other case, a return of income for the year on or before the individual’s balance-due day for the year; and

    • (b) pay the individual’s tax payable under this Part for the year on or before the individual’s balance-due day for the year.

  • Marginal note:Provisions applicable to this Part

    (6) Subsection 150(3), sections 150.1, 151 and 152, subsections 153(1.1), 153(1.2) and 153(3), sections 155 to 156.1 and 158 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 180.2;
  • 1994, c. 7, Sch. II, s. 144, Sch. VII, s. 21;
  • 1996, c. 21, s. 46;
  • 2000, c. 12, s. 142;
  • 2001, c. 17, s. 162;
  • 2006, c. 4, s. 178;
  • 2007, c. 35, s. 119;
  • 2010, c. 25, s. 47.
 
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