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

SUBDIVISION A.7Personal Support Workers Tax Credit

Marginal note:Definitions

• 122.93 (1) The following definitions apply in this section.

  eligible health care establishment

  eligible health care establishment means a hospital, nursing care facility, residential care facility, community care facility for the elderly, home health care establishment and similar regulated health care establishments. (établissement de soins de santé admissible)

  eligible personal support worker

  eligible personal support worker, for a taxation year, means an individual

  • (a) who performs duties of employment in the capacity of a personal support worker for an eligible health care establishment during the taxation year (in this definition referred to as the “duties for the year”);

  • (b) who, in the course of performing the duties for the year, ordinarily provides one-on-one care and essential support to optimize and maintain another individual’s health, well-being, safety, autonomy and comfort consistent with that other individual’s health care needs as directed by a regulated health care professional or a provincial or community health organization; and

  • (c) whose main duties of employment, in respect of the duties for the year, include assisting individuals with activities of daily living and mobilization. (préposé aux services de soutien à la personne admissible)

  return of income

  return of income, filed by an eligible personal support worker for a taxation year, means a return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the eligible personal support worker had tax payable under this Part for the taxation year. (déclaration de revenu)

  yearly eligible remuneration

  yearly eligible remuneration of an individual for a taxation year means the total of all amounts, each of which

  • (a) would be, in the absence of section 8 and paragraph 81(1)(a), the individual’s income for the taxation year from an office or employment as an eligible personal support worker for an eligible health care establishment in a province, other than duties performed in Newfoundland and Labrador, the Northwest Territories and British Columbia; and

  • (b) is certified by the individual’s employer in the prescribed form and manner to be an amount that satisfies the description under paragraph (a). (rémunération annuelle admissible)

• Marginal note:Deemed overpayment — yearly eligible remuneration

  (2) An eligible personal support worker, for a taxation year that begins after 2025 and that ends before 2031, who files a return of income for the taxation year and makes a claim under this subsection, is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the lesser of

  • (a) $1,100, and

  • (b) 5% of the eligible personal support worker’s yearly eligible remuneration for the taxation year.

• Marginal note:Effect of bankruptcy

  (3) For the purpose of this Subdivision, if an individual becomes bankrupt in a particular calendar year

  • (a) despite subsection 128(2), any reference to a taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year; and

  • (b) the individual’s yearly eligible remuneration for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual’s yearly eligible remuneration for the taxation year that begins on January 1 of the particular calendar year.

• Marginal note:Special rules in the event of death

  (4) For the purpose of this Subdivision, if an individual dies before the end of a calendar year, any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual.

• Marginal note:Requirement — certification of yearly eligible remuneration

  (5) Every employer who pays an amount described in paragraph (a) of the definition yearly eligible remuneration in subsection (1) to an individual in a taxation year must provide the certification described in paragraph (b) of that definition in respect of the total amount described in paragraph (a) of that definition for that individual for that year.

SUBDIVISION BRules Applicable to Corporations

Marginal note:Rate for corporations

• 123 (1) The tax payable under this Part for a taxation year by a corporation on its taxable income or taxable income earned in Canada, as the case may be, (in this section referred to as its “amount taxable”) for the year is, except where otherwise provided,

  • (a) 38% of its amount taxable for the year.

Marginal note:Corporation surtax

123.1 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation (other than a corporation that was throughout the year an investment corporation or a non-resident-owned investment corporation) an amount equal to that proportion of 5% of the amount, if any, by which

• (a) the tax payable under this Part by the corporation for the year determined without reference to this section, sections 123.2 and 126 (except for the purposes of subsection 125(1) and section 125.1), subsections 127(3) and (5), 127.2(1) and 127.3(1) of this Act and paragraph 123(1)(b) and subsection 127(13) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and as if subsection 124(1) of this Act were read without reference to the words “in a province” in that subsection

exceeds

• (b) in the case of a Canadian-controlled private corporation to which subsection 125(1) applies, the amount, if any, by which

  • (i) 15% of the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year

  exceeds

  • (ii) the amount, if any, determined under paragraph 125.1(1)(b) in respect of the corporation for the year,

• (c) in the case of a mutual fund corporation, the least of the amounts that would be determined under paragraphs (a) to (c) of the description of A in the definition refundable capital gains tax on hand in subsection 131(6) in respect of the corporation for the year if this Act were read without reference to this section, and

• (d) in any other case, nil

that the number of days in that portion of the year that is after June 30, 1985 and before 1987 is of the number of days in the year.

123.2 [Repealed, 2006, c. 4, s. 72]

Marginal note:Refundable tax — CCPC or substantive CCPC

123.3 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation that is a Canadian-controlled private corporation throughout the year — or a substantive CCPC at any time in the year — an amount equal to 10 2/3% of the lesser of

• (a) the corporation’s aggregate investment income for the year (within the meaning assigned by subsection 129(4)), and

• (b) the amount, if any, by which its taxable income for the year exceeds the least of the amounts determined in respect of it for the year under paragraphs 125(1)(a) to (c).

Corporation Tax Reductions

Marginal note:Definitions

• 123.4 (1) The definitions in this subsection apply in this section.

  CCPC rate reduction percentage

  CCPC rate reduction percentage[Repealed, 2003, c. 15, s. 78(1)]

  full rate taxable income

  full rate taxable income of a corporation for a taxation year is

  • (a) if the corporation is not a corporation described in paragraph (b) or (c) for the year, the amount by which that portion of the corporation’s taxable income for the year (or, for greater certainty, if the corporation is non-resident, that portion of its taxable income earned in Canada for the year) that is subject to tax under subsection 123(1) exceeds the total of

    • (i) if an amount is deducted under subsection 125.1(1) from the corporation’s tax otherwise payable under this Part for the year, the amount obtained by dividing the amount so deducted by the corporation’s general rate reduction percentage for the taxation year,

    • (ii) if an amount is deducted under subsection 125.1(2) from the corporation’s tax otherwise payable under this Part for the year, the amount determined, in respect of the deduction, by the formula in that subsection,

    • (iii) the corporation’s income for the year from a personal services business, and

    • (iv) if the corporation is a credit union throughout the year and the corporation deducted an amount for the year under subsection 125(1) (because of the application of subsections 137(3) and (4)), the amount, if any, that is the product of the amount, if any, determined for B in subsection 137(3) multiplied by the amount determined for C in subsection 137(3) in respect of the corporation for the year;

  • (b) if the corporation is a Canadian-controlled private corporation throughout the year or a substantive CCPC at any time in the year, the amount by which that portion of the corporation’s taxable income for the year that is subject to tax under subsection 123(1) exceeds the total of

    • (i) the amounts that would, if paragraph (a) applied to the corporation, be determined under subparagraphs (a)(i) to (iv) in respect of the corporation for the year,

    • (ii) the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year, and

    • (iii) except for a corporation that is, throughout the year, a cooperative corporation (within the meaning assigned by subsection 136(2)) or a credit union, the corporation’s aggregate investment income for the year, within the meaning assigned by subsection 129(4); and

    • (iv) [Repealed, 2003, c. 15, s. 78(2)]

  • (c) if the corporation is throughout the year an investment corporation, a mortgage investment corporation or a mutual fund corporation, nil. (revenu imposable au taux complet)

  general rate reduction percentage

  general rate reduction percentage of a corporation for a taxation year is the total of

  • (a) that proportion of 7% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year,

  • (b) that proportion of 8.5% that the number of days in the taxation year that are in 2008 is of the number of days in the taxation year,

  • (c) that proportion of 9% that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year,

  • (d) that proportion of 10% that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year,

  • (e) that proportion of 11.5% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and

  • (f) that proportion of 13% that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year. (pourcentage de réduction du taux général)

• Marginal note:General deduction from tax

  (2) There may be deducted from a corporation’s tax otherwise payable under this Part for a taxation year the product obtained by multiplying the corporation’s general rate reduction percentage for the year by the corporation’s full rate taxable income for the year.

• (3) [Repealed, 2003, c. 15, s. 78(5)]

Marginal note:Tax on personal services business income

123.5 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation an amount equal to 5% of the corporation’s taxable income for the year from a personal services business.

Additional Tax on Banks and Life Insurers

Marginal note:Definition

• 123.6 (1) The following definition applies in this section.

  bank or life insurer group member

  bank or life insurer group member means a corporation that is

  • (a) a bank;

  • (b) a life insurance corporation that carries on business in Canada; or

  • (c) a financial institution (as defined in subsection 190(1)) that is related to any corporation described in paragraph (a) or (b). (membre d’un groupe de banques ou d’assureurs-vie)

• Marginal note:Additional tax payable

  (2) There shall be added to the tax otherwise payable under this Part for a taxation year, by a corporation that is a bank or life insurer group member at any time during the taxation year, an amount determined by the formula

  0.015 (A − B)

  where

  A

  is the corporation’s taxable income for the taxation year (or the corporation’s taxable income earned in Canada if the corporation is non-resident in the taxation year); and

  B

  is

  • (a) if the corporation is not related to another bank or life insurer group member at the end of the taxation year of the corporation,

    • (i) where the corporation’s taxation year is not less than 51 weeks, $100 million, and

    • (ii) in any other case, the amount determined by the formula

      $100 million × (C ÷ 365)

      where

      C

      is the number of days in the taxation year, and

  • (b) in any other case, subject to subsection (5), nil.

• Marginal note:Related group

  (3) For the purposes of this section, a corporation that is described in paragraph (a) or (b) of the definition bank or life insurer group member in subsection (1) at any time during a taxation year and that was related to another bank or life insurer group member at the end of the year (in this section, the corporation and each such bank or life insurer group member are referred to together as the “related group”) may file with the Minister, with the corporation’s return of income, an agreement in prescribed form on behalf of the related group under which an amount that does not exceed $100 million is allocated among the related group for all taxation years of members of the related group ending in the same calendar year.

• Marginal note:Allocation by Minister

  (4) The Minister may request a corporation that is a member of a related group at any time during a taxation year to file with the Minister an agreement referred to in subsection (3) and, if the corporation does not file the agreement within 30 days after receiving the request, the Minister may allocate the amount referred to in subsection (3) among the related group for the taxation years of the bank or life insurer group members ending in the same calendar year.

• Marginal note:Allocation

  (5) For the purposes of this section, the least amount allocated for a taxation year to each bank or life insurer group member under an agreement described in subsection (3) or by the Minister under subsection (4) is the amount determined for B in subsection (2) for the taxation year of that member, but, if no such allocation is made, the amount determined for B in subsection (2) of each bank or life insurer group member for that year is nil.

• Marginal note:Anti-avoidance

  (6) If an amount has been deducted in computing the income of a corporation, the amount is deemed not to have been deducted in computing the corporation’s taxable income, or taxable income earned in Canada, as the case may be, for the purpose of computing the tax payable by the corporation under subsection (2), if

  • (a) the deduction is in respect of an amount that can reasonably be considered to have been paid or payable (in this subsection referred to as “the payment”), directly or indirectly, to a person or partnership that was not dealing at arm’s length with the corporation;

  • (b) the person or partnership was not a bank or life insurer group member; and

  • (c) it can reasonably be considered that one of the purposes of the payment was to reduce the tax payable by the corporation under subsection (2).