CANADA

CONSOLIDATION

CODIFICATION

Income Tax Act

Loi de limpt sur le revenuS.R.C. 1985, ch. 1 (5e suppl.)NOTELes dispositions dapplication ne sont pas incluses dans la prsente codification; voir les lois modificatives appropries.

R.S.C. 1985, c. 1 (5th Supp.)NOTEApplication provisions are not included in the consolidated text; see relevant amending Acts.

Current to February 21, 2013 Last amended on January 1, 2013

jour au 21 fvrier 2013 Dernire modification le 1 janvier 2013

Published by the Minister of Justice at the following address: http://laws-lois.justice.gc.ca

Publi par le ministre de la Justice ladresse suivante : http://lois-laws.justice.gc.ca

OFFICIAL STATUS OF CONSOLIDATIONS Subsections 31(1) and (2) of the Legislation Revision and Consolidation Act, in force on June 1, 2009, provide as follows:Published consolidation is evidence

CARACTRE OFFICIEL DES CODIFICATIONS Les paragraphes 31(1) et (2) de la Loi sur la rvision et la codification des textes lgislatifs, en vigueur le 1er juin 2009, prvoient ce qui suit :31.(1)Tout exemplaire d'une loi codifie ou d'un rglement codifi, publi par le ministre en vertu de la prsente loi sur support papier ou sur support lectronique, fait foi de cette loi ou de ce rglement et de son contenu. Tout exemplaire donn comme publi par le ministre est rput avoir t ainsi publi, sauf preuve contraire. (2)Les dispositions de la loi d'origine avec ses modifications subsquentes par le greffier des Parlements en vertu de la Loi sur la publication des lois l'emportent sur les dispositions incompatibles de la loi codifie publie par le ministre en vertu de la prsente loi.Codifications comme lment de preuve

31.(1)Every copy of a consolidated statute or consolidated regulation published by the Minister under this Act in either print or electronic form is evidence of that statute or regulation and of its contents and every copy purporting to be published by the Minister is deemed to be so published, unless the contrary is shown. (2)In the event of an inconsistency between a consolidated statute published by the Minister under this Act and the original statute or a subsequent amendment as certified by the Clerk of the Parliaments under the Publication of Statutes Act , the original statute or amendment prevails to the extent of the inconsistency.

Inconsistencies in Acts

Incompatibilit lois

NOTEThis consolidation is current to February 21, 2013. The last amendments came into force on January 1, 2013. Any amendments that were not in force as of February 21, 2013 are set out at the end of this document under the heading Amendments Not in Force.

NOTECette codification est jour au 21 fvrier 2013. Les dernires modifications sont entres en vigueur le 1 janvier 2013. Toutes modifications qui n'taient pas en vigueur au 21 fvrier 2013 sont nonces la fin de ce document sous le titre Modifications non en vigueur .

TABLE OF PROVISIONS Section An Act respecting income taxes SHORT TITLE 1 Short Title PART I INCOME TAX DIVISION A LIABILITY FOR TAX 2 Tax payable by persons resident in Canada DIVISION B COMPUTATION OF INCOME Basic Rules 3 4 Income for taxation year Income or loss from a source or from sources in a place Subdivision a Income or Loss from an Office or Employment Basic Rules 5 6 7 Income from office or employment Inclusions Amounts to be included as income from office or employment Agreement to issue securities to employees Deductions 8 Deductions allowed Subdivision b Income or Loss from a Business or Property Basic Rules 9 10 11 12 Income Valuation of inventory Proprietor of business Inclusions Income inclusions 53 53 53 53 57 58 58 12 9 10 11 4 4 4 5 6 5 7 25 35 35 8 5 2 2 2 3 3 4 1 2 1 1 1 1 1 Page Article

TABLE ANALYTIQUE Page Loi concernant les impts sur le revenu TITRE ABRG Titre abrg PARTIE I IMPT SUR LE REVENU SECTION A ASSUJETTISSEMENT LIMPT Impt payable par les personnes rsidant au Canada SECTION B CALCUL DU REVENU Rgles fondamentales Revenu pour lanne dimposition Revenu ou perte provenant dune source dtermine ou de sources situes dans un endroit dtermin Sous-section a Revenu ou perte provenant dune charge ou dun emploi Rgles fondamentales Revenu tir dune charge ou dun emploi lments inclure lments inclure titre de revenu tir dune charge ou dun emploi mission de titres en faveur demploys Dductions lments dductibles Sous-section b Revenu ou perte provenant dune entreprise ou dun bien Rgles fondamentales Revenu valuation des biens figurant linventaire Propritaire dune entreprise lments inclure Sommes inclure dans le revenu 53 53 53 53 57 58 58 4 4 4 5 5 25 35 35 2 2 2 3 1 1 1 1 1

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Income Tax February 21, 2013 Section 12.1 12.2 12.3 12.4 12.5 13 14 15 15.1 15.2 16 16.1 17 17.1 Cash bonus on Canada Savings Bonds Amount to be included Transition inclusion re unpaid claims reserve Bad debt inclusion Definitions Recaptured depreciation Eligible capital property inclusion in income from business Benefit conferred on shareholder Interest on small business development bonds Interest on small business bond Income and capital combined Leasing properties Amount owing by non-resident Deemed interest income sections 15 and 212.3 Deductions 18 18.1 19 19.01 19.1 20 20.01 20.1 20.2 20.3 20.4 21 General limitations Definitions Limitation re advertising expense newspapers Definitions Limitation re advertising expense on broadcasting undertaking Deductions permitted in computing income from business or property PHSP premiums Borrowed money used to earn income from property Interest authorized foreign bank interpretation Weak currency debt interpretation Definitions Cost of borrowed money Ceasing to carry on business 22 23 24 25 Sale of accounts receivable Sale of inventory Ceasing to carry on business Fiscal period of business disposed of by individual Page 73 73 75 75 76 81 122 142 150 154 159 163 168 179 181 181 212 220 224 226 20 227 261 265 20.2 268 272 276 277 280 280 281 282 284 22 23 24 25 20.3 20.4 21 20.01 20.1 18 18.1 19 19.01 19.1 15 15.1 15.2 16 16.1 17 17.1 Article 12.1 12.2 12.3 12.4 12.5 13 14 Primes en argent comptant sur les obligations dpargne du Canada Montant inclure dans le revenu Mesure transitoire provision pour rclamations non rgles Inclusion des crances irrcouvrables Dfinitions Rcupration de lamortissement Immobilisations admissibles montant inclure dans le revenu tir dune entreprise Avantages aux actionnaires Intrts sur obligation pour le dveloppement de la petite entreprise Intrts sur obligation pour la petite entreprise Revenu et capital runis Biens de location Sommes dues par les non-rsidents Revenu dintrts rput articles 15 et 212.3 Dductions Exceptions dordre gnral Dfinitions Restriction frais de publicit journaux Dfinitions Limitation des frais de publicit des entreprises de radiodiffusion Dductions admises dans le calcul du revenu tir dune entreprise ou dun bien Primes verses a un rgime priv dassurance-maladie Argent emprunt pour tirer un revenu dun bien Intrts banque trangre autorise dfinitions Dette en devise faible dfinitions Dfinitions Cot des emprunts Cessation de lexploitation dune entreprise Vente de crances Vente de biens porter linventaire Cessation de lexploitation dune entreprise Exercice dune entreprise dont il a t dispos Page 73 73 75 75 76 81 122 142 150 154 159 163 168 179 181 181 212 220 224 226 227 261 265 268 272 276 277 280 280 281 282 284

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Impt sur le revenu 21 fvrier 2013 Section Special Cases 26 27 28 29 30 31 32 32.1 33.1 34 34.1 34.2 34.3 35 36 37 Banks inclusions in income Application of Part I to Crown corporation Farming or fishing business Disposition of animal of basic herd class Improving land for farming Loss from farming where chief source of income not farming Insurance agents and brokers Employee benefit plan deductions International banking centres definitions Professional business Additional Business Income Definitions Definitions Prospectors and grubstakers Railway companies Scientific research and experimental development Subdivision c Taxable Capital Gains and Allowable Capital Losses 38 38.1 39 39.1 40 41 42 43 43.1 44 44.1 45 46 Taxable capital gain and allowable capital loss Tax-deferred transaction flow-through shares Meaning of capital gain and capital loss Definitions General rules Taxable net gain from disposition of listed personal property Dispositions subject to warranty General rule for part dispositions Life estates in real property Exchanges of property Definitions Property with more than one use Personal-use property 351 38 351 38.1 353 354 365 373 398 400 400 401 402 408 416 418 39 39.1 40 41 42 43 43.1 44 44.1 45 46 Page 285 285 288 288 293 295 296 297 298 300 308 308 315 332 334 336 337 32 32.1 33.1 34 34.1 34.2 34.3 35 36 37 26 27 28 29 30 31 Article Cas spciaux Banques lments inclure dans le revenu Application de la partie I aux socits dtat Entreprise agricole ou de pche Disposition dun animal appartenant une catgorie de troupeau de base Dfrichement, nivellement et installation dun systme de drainage Pertes provenant dune activit agricole ne constituant pas la principale source de revenu Agents ou courtiers dassurance Dductions relatives un rgime de prestations aux employs Centres bancaires internationaux Dfinitions Professions librales Revenu dentreprise supplmentaire Dfinitions Dfinitions Prospecteurs et commanditaires en prospection Compagnies de chemin de fer Activits de recherche scientifique et de dveloppement exprimental Sous-section c Gains en capital imposables et pertes en capital dductibles Sens de gain en capital imposable et de perte en capital dductible Opration imposition diffre actions accrditives Sens de gain en capital et de perte en capital Dfinitions Rgles gnrales Sens de gain net imposable tir de la disposition de biens meubles dtermins Disposition avec garantie Disposition partielle dun bien rgle gnrale Domaine viager sur un bien rel changes de biens Dfinitions Bien affect plus dun usage Bien usage personnel 351 351 353 354 365 373 398 400 400 401 402 408 416 418 Page 285 285 288 288 293 295 296 297 298 300 308 308 315 332 334 336 337

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Income Tax February 21, 2013 Section 47 47.1 48.1 49 49.1 50 51 51.1 52 53 54 54.1 54.2 55 Identical properties Indexed Security Investment Plans Application of s. 47.1 of R.S.C., 1952, c. 148 Gain when small business corporation becomes public Granting of options No disposition where obligation satisfied Debts established to be bad debts and shares of bankrupt corporation Convertible property Conversion of debt obligation Cost of certain property the value of which included in income Adjustments to cost base Definitions Exception to principal residence rules Certain shares deemed to be capital property Definitions Subdivision d Other Sources of Income 56 56.1 56.2 56.3 57 58 59 59.1 Amounts to be included in income for year Support Reserve claimed for debt forgiveness Reserve claimed for debt forgiveness Certain superannuation or pension benefits Government annuities and like annuities Consideration for foreign resource property Involuntary disposition of resource property Subdivision e Deductions in Computing Income 60 60.001 60.01 60.02 Other deductions Application of subpara. 60(c.1)(i) Eligible amount Definitions 527 527 547 547 548 60 60.001 60.01 60.02 495 56 495 512 515 515 516 517 519 59.1 525 56.1 56.2 56.3 57 58 59 Page 420 422 47.1 422 48.1 424 425 429 429 431 435 435 437 465 475 476 476 51 51.1 52 53 54 54.1 54.2 55 49 49.1 50 Article 47 Biens identiques Rgimes de placements en titres indexs Application de lart. 47.1 des S.R.C. 1952, ch. 148 Gain lorsquune socit exploitant une petite entreprise devient une socit publique Octroi doptions Aucune disposition en cas dexcution dobligation Crances reconnues comme irrcouvrables et actions dune socit en faillite Bien convertible Conversion dun titre de crance Cot de certains biens dont la valeur est incluse dans le revenu Rajustements du prix de base Dfinitions Exception aux rgles de la rsidence principale Actions rputes tre des immobilisations Dfinitions Sous-section d Autres sources de revenu Sommes inclure dans le revenu de lanne Pension alimentaire Provision pour remise de dette particuliers Provision pour remise de dette contribuables Rgime de retraite ou de pension Rentes sur ltat et rentes similaires Contrepartie pour un avoir minier tranger Disposition involontaire dun avoir minier Sous-section e Dductions dans le calcul du revenu Autres dductions Application du sous-alina 60c.1)(i) Montant admissible Dfinitions 527 527 547 547 548 495 495 512 515 515 516 517 519 525 Page 420 422 422 424 425 429 429 431 435 435 437 465 475 476 476

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Impt sur le revenu 21 fvrier 2013 Section 60.021 60.03 60.1 60.11 60.2 61 61.1 61.2 61.3 61.4 62 63 64 64.1 65 66 66.1 66.2 66.21 66.3 66.4 66.5 66.6 66.7 66.8 Additions to clause 60(l)(v)(B.2) for 2008 Definitions Support Application of subpara. 60.1(1)(a)(ii) Refund of undeducted past service AVCs Payment made as consideration for income-averaging annuity Where income-averaging annuity contract ceases to be such Reserve for debt forgiveness for resident individuals Deduction for insolvency with respect to resident corporations Reserve for debt forgiveness for corporations and others Moving expenses Child care expenses Disability supports deduction Page 551 553 556 558 558 559 61.1 565 61.2 565 61.3 566 61.4 571 573 575 584 62 63 64 64.1 65 66 66.1 66.2 66.21 66.3 66.4 66.5 66.6 66.7 681 714 66.8 Article 60.021 60.03 60.1 60.11 60.2 61 Libell de la div. 60l)(v)(B.2) pour 2008 Dfinitions Pension alimentaire Application du sous-alina 60.1(1)a)(ii) Remboursement de cotisations facultatives non dduites Paiement effectu en contrepartie dune rente versements invariables Cessation dun contrat de rente versements invariables Provision pour remise de dette particuliers rsidant au Canada Dduction pour insolvabilit socits rsidant au Canada Provision pour remise de dette socits et autres Frais de dmnagement Frais de garde denfants. Dduction pour produits et services de soutien aux personnes handicapes Particulier absent du Canada Dduction pour puits de ptrole ou de gaz, mine ou concession forestire Frais dexploration et damnagement dune socit exploitant une entreprise principale Sommes inclure dans le revenu Sommes inclure dans le revenu Dfinitions Actions relatives lexploration et lamnagement Recouvrement des frais Dduction dans le calcul du revenu Acquisition des avoirs dune personne exonre Frais dexploration et damnagement au Canada des socits remplaantes Frais relatifs des ressources dun commanditaire Sous-section f 717 717 717 721 67.3 722 67 67.1 67.2 Rgles relatives au calcul du revenu Restriction gnrale relative aux dpenses Frais de reprsentation Intrts sur largent emprunt pour une voiture de tourisme Limitation du cot de location dune voiture de tourisme 717 717 717 721 722 Page 551 553 556 558 558 559 565 565 566 571 573 575 584 589 590 591 634 649 660 669 672 680 681 681 714

Individuals absent from Canada 589 Allowance for oil or gas well, mine or timber limit 590 Exploration and development expenses of principal-business corporations 591 Amount to be included in income Amount to be included in income Definitions Exploration and development shares Recovery of costs Deduction from income Acquisition from tax-exempt Successor of Canadian exploration and development expenses Resource expenses of limited partner Subdivision f Rules Relating to Computation of Income 634 649 660 669 672 680 681

67 67.1 67.2 67.3

General limitation re expenses Expenses for food, etc. Interest on money borrowed for passenger vehicle Limitation re cost of leasing passenger vehicle

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Income Tax February 21, 2013 Section 67.4 67.5 67.6 68 69 70 72 73 74.1 74.2 74.3 74.4 74.5 75 75.1 76 76.1 78 79 79.1 80 80.01 80.02 80.03 80.04 80.1 More than one owner or lessor Non-deductibility of illegal payments Non-deductibility of fines and penalties Allocation of amounts in consideration for disposition of property Inadequate considerations Death of a taxpayer Reserves, etc., for year of death Inter vivos transfers by individuals Transfers and loans to spouse or common-law partner Gain or loss deemed that of lender or transferor Transfers or loans to a trust Definitions Transfers for fair market consideration Trusts Gain or loss deemed that of transferor Security in satisfaction of income debt Non-resident moving debt from Canadian business Unpaid amounts Definitions Definitions Definitions Definitions Definitions Definitions Definitions Expropriation assets acquired as compensation for, or as consideration for sale of, foreign property taken by or sold to foreign issuer Definitions Loans Deemed interest Subdivision g Amounts Not Included in Computing Income 81 Amounts not included in income 866 866 81 Sommes exclure du revenu 866 Page 723 723 724 724 725 729 765 768 778 74.2 780 783 784 787 792 794 795 796 797 798 803 807 830 838 841 844 74.3 74.4 74.5 75 75.1 76 76.1 78 79 79.1 80 80.01 80.02 80.03 80.04 80.1 Article 67.4 67.5 67.6 68 69 70 72 73 74.1 Proprit ou location conjointe Non-dductibilit des paiements illgaux Non-dductibilit des amendes et pnalits Contrepartie mixte Contreparties insuffisantes Dcs du contribuable Provisions, etc. pour lanne du dcs Transfert de biens entre vifs par un particulier Transfert ou prt lpoux ou au conjoint de fait Gain ou perte rput du prteur ou de lauteur du transfert Transfert ou prt une fiducie. Dfinitions Transfert avec contrepartie la juste valeur marchande Fiducies Gain ou perte prsums pour lauteur du transfert Titres en acquittement de dette Retrait dune dette dune entreprise canadienne par un non-rsident Sommes impayes Dfinitions Dfinitions Dfinitions Dfinitions Dfinitions Dfinitions Dfinitions Contre-valeurs de biens expropris acquises en compensation ou en contrepartie de la vente de biens trangers pris ou achets par lmetteur tranger Dfinitions Prts Intrts rputs Sous-section g Sommes exclues du calcul du revenu 866 Page 723 723 724 724 725 729 765 768 778 780 783 784 787 792 794 795 796 797 798 803 807 830 838 841 844

850 858 861 865 80.3 80.4 80.5

80.3 80.4 80.5

850 858 861 865

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Impt sur le revenu 21 fvrier 2013 Section Subdivision h Corporations Resident in Canada and their Shareholders 82 83 84 84.1 84.2 85 85.1 86 Taxable dividends received Qualifying dividends Deemed dividend Non-arms length sale of shares Computation of paid-up capital in respect of particular class of shares Transfer of property to corporation by shareholders Share for share exchange Exchange of shares by a shareholder in course of reorganization of capital Foreign Spin-offs 86.1 87 88 88.1 89 Eligible distribution not included in income Amalgamations Winding-up Application Definitions Subdivision i Shareholders of Corporations Not Resident in Canada 90 91 92 93 93.1 94 94.1 95 Dividends received from non-resident corporation Amounts to be included in respect of share of foreign affiliate Adjusted cost base of share of foreign affiliate Election re disposition of share in foreign affiliate Shares held by partnership 1036 90 1036 91 1036 92 1039 93 1043 1056 93.1 94 94.1 95 872 872 875 881 887 894 85 896 912 921 925 86.1 925 929 968 1004 1006 87 88 88.1 89 85.1 86 82 83 84 84.1 84.2 Page Article Sous-section h Les socits rsidant au Canada et leurs actionnaires Dividendes imposables reus Dividendes admissibles Dividende rput vers et reu Vente dactions en cas de lien de dpendance Calcul du capital vers dune catgorie donne dactions Transfert dun bien par un actionnaire une socit change dactions change dactions par un actionnaire dans le cadre dun remaniement du capital Distributions dactions de ltranger Distribution admissible non comprise dans le revenu Fusions Liquidation Application Dfinitions Sous-section i Actionnaires de socits ne rsidant pas au Canada 1036 Dividendes reus de socits nonrsidentes Sommes inclure au titre dune action dans une socit trangre affilie Prix de base rajust dune action dune socit trangre affilie Choix relatif la disposition de laction dune socit trangre affilie Actions dtenues par une socit de personnes Application de certaines dispositions aux fiducies ne rsidant pas au Canada Bien dun fonds de placement nonrsident Dfinitions applicables la prsente sous-section Sous-section j 1136 1136 96 Les socits de personnes et leurs associs Rgles gnrales 1136 1136 1036 1036 1039 1043 1056 1058 1063 1068 872 872 875 881 887 894 896 912 921 925 925 929 968 1004 1006 Page

Application of certain provisions to trusts not resident in Canada 1058 Offshore investment fund property 1063 Definitions for this subdivision Subdivision j Partnerships and their Members 1068

96

General Rules

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Income Tax February 21, 2013 Section 97 98 98.1 98.2 99 100 101 102 103 Contribution of property to partnership Disposition of partnership property Residual interest in partnership Transfer of interest on death Fiscal period of terminated partnership Disposition of interest in partnership Disposition of farmland by partnership Definition of Canadian partnership Page 1152 1156 1163 1165 1165 1166 1171 1173 Article 97 98 98.1 98.2 99 100 101 102 103 Apport de biens dans une socit de personnes Disposition de biens dune socit de personnes Participation rsiduelle dans la socit de personnes Transfert dune participation en cas de dcs Exercice dune socit de personnes ayant cess dexister Disposition dune participation dans une socit de personnes Disposition dun fonds de terre utilis dans une exploitation agricole dune socit de personnes Dfinition de socit de personnes canadienne Entente au sujet du partage des revenus, etc. visant rduire limpt ou en diffrer le paiement Sous-section k 1174 1174 1219 1220 1221 1236 107.2 1237 107.3 1238 1240 1250 1263 1263 1274 1283 1283 1285 1285 110.2 110.5 110.6 110 110.1 107.4 108 104 105 106 107 107.1 Les fiducies et leurs bnficiaires Fiducie ou succession Avantages provenant de fiducies Participation au revenu dune fiducie Disposition par un contribuable dune participation au capital Distribution par certaines fiducies lies lemploi Montant provenant dune fiducie de convention de retraite Rgime applicable aux bnficiaires de fiducies pour lenvironnement admissibles Disposition admissible Dfinitions SECTION C CALCUL DU REVENU IMPOSABLE Dductions Dductions pour dons applicables aux socits Paiements forfaitaires 1263 1263 1274 1283 1174 1174 1219 1220 1221 1236 1237 1238 1240 1250 Page 1152 1156 1163 1165 1165 1166 1171 1173 1173

Agreement to share income, etc., so as to reduce or postpone tax otherwise payable 1173 Subdivision k Trusts and their Beneficiaries

104 105 106 107 107.1 107.2 107.3 107.4 108

Reference to trust or estate Benefits under trust Income interest in trust Disposition by taxpayer of capital interest Distribution by certain employmentrelated trusts Distribution by a retirement compensation arrangement Treatment of beneficiaries under qualifying environmental trusts Qualifying disposition Definitions DIVISION C COMPUTATION OF TAXABLE INCOME

110 110.1

Deductions permitted Deduction for gifts Lump-sum Payments

110.2 110.5 110.6

Definitions Additions for foreign tax deductions Definitions

Dfinitions 1283 Ajout concernant la dduction pour impt tranger 1285 Dfinitions 1285

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Impt sur le revenu 21 fvrier 2013 Section 110.7 111 111.1 112 113 114 114.2 Residing in prescribed zone Losses deductible Order of applying provisions Deduction of taxable dividends received by corporation resident in Canada Deduction in respect of dividend received from foreign affiliate Individual resident in Canada for only part of year Deductions in separate returns DIVISION D TAXABLE INCOME EARNED IN CANADA BY NON-RESIDENTS 115 115.1 1374 115 115.1 Page 1327 1329 1349 1349 113 1370 114 1373 1374 114.2 Article 110.7 111 111.1 112 Habitants des rgions vises par rglement Pertes dductibles Ordre dapplication Dduction des dividendes imposables reus par une socit rsidant au Canada Dduction au titre dun dividende reu dune socit trangre affilie Particulier rsidant au Canada pendant une partie de lanne seulement Dductions dans des dclarations distinctes SECTION D REVENU IMPOSABLE GAGN AU CANADA PAR DES NON-RSIDENTS 1374 Revenu imposable au Canada des nonrsidents 1374 Conventions entre autorits comptentes 1383 Non-rsidents et fournisseurs de services de placement canadiens 1384 115.2 116 Dfinitions Disposition par une personne nonrsidente SECTION E 1395 1395 1395 117 CALCUL DE LIMPT Sous-section a Rgles applicables aux particuliers Impt payable en vertu de la prsente partie Rajustement annuel des dductions et autres sommes 117.1 118 118.01 118.02 118.03 118.031 118.04 118.05 118.06 118.1 118.2 118.3 Ajustement annuel Crdits dimpt personnels Dfinitions Dfinitions Dfinitions Dfinitions Dfinitions Dfinitions Dfinition de services admissibles de pompier volontaire Dfinitions Crdit dimpt pour frais mdicaux Crdit dimpt pour dficience mentale ou physique 1395 1395 1396 1396 1398 1409 1411 1414 1416 1418 1421 1423 1424 1443 1458 1395 1384 1388 Page 1327 1329 1349 1349 1370 1373 1374

Non-residents taxable income in Canada 1374 Competent authority agreements 1383

Non-Residents with Canadian Investment Service Providers 1384 115.2 116 Definitions Disposition by non-resident person of certain property DIVISION E COMPUTATION OF TAX Subdivision a Rules Applicable to Individuals 117 Tax payable under this Part Annual Adjustment of Deductions and Other Amounts 117.1 118 118.01 118.02 118.03 118.031 118.04 118.05 118.06 118.1 118.2 118.3 Annual adjustment Personal credits Definitions Definitions Definitions Definitions Definitions Definitions Definition of eligible volunteer firefighting services Definitions Medical expense credit Credit for mental or physical impairment 1384 1388

1396 1396 1398 1409 1411 1414 1416 1418 1421 1423 1424 1443 1458

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Income Tax February 21, 2013 Section 118.4 118.5 118.6 118.61 118.62 118.7 118.8 118.81 118.9 118.91 118.92 118.93 118.94 118.95 119 120 120.2 120.3 Nature of impairment Tuition credit Definitions Unused tuition, textbook and eduction tax credits Credit for interest on student loan Credit for UI premium and CPP contribution Transfer of unused credits to spouse or common-law partner Tuition, textbook and education tax credits transferred Transfer to parent or grandparent Part-year residents Ordering of credits Credits in separate returns Tax payable by non-residents (credits restricted) Credits in year of bankruptcy Former resident credit for tax paid Page 1463 1465 1470 1474 1475 1476 118.8 1477 118.81 1478 1479 1479 1480 1480 1481 1481 1482 118.9 118.91 118.92 118.93 118.94 118.95 119 120 120.2 120.3 Article 118.4 118.5 118.6 118.61 118.62 118.7 Dficience grave et prolonge Crdit dimpt pour frais de scolarit Dfinitions Crdits dimpt inutiliss pour tudes, frais de scolarit et manuels Crdit pour intrts sur les prts aux tudiants Crdit dimpt pour cotisations lassurance-chmage et un rgime de pensions tatique Transfert lpoux ou au conjoint de fait de certains crdits dimpt inutiliss Transfert des crdits dimpt pour tudes, frais de scolarit et manuels Transfert lun des parents ou grandsparents Particulier rsidant au Canada pendant une partie de lanne seulement Ordre dapplication des crdits Crdits dans des dclarations de revenu distinctes Impt payer par les non-rsidents Crdits au cours de lanne de la faillite Ancien rsident crdit pour impt pay Revenu non gagn dans une province Report de limpt minimum Prestations dinvalidit du RPC/RRQ pour annes antrieures Paiements forfaitaires 120.31 120.4 121 122 122.1 122.3 122.5 122.51 Dfinitions Impt sur le revenu fractionn Dfinitions Dduction pour dividendes imposables Impt payable par une fiducie non testamentaire Dfinitions Dduction de limpt payable en cas demploi ltranger Dfinitions Dfinitions Sous-section a.1 1514 1514 1517 122.6 122.61 Prestation fiscale canadienne pour enfants Dfinitions Prsomption de paiement en trop 1514 1514 1517 Page 1463 1465 1470 1474 1475 1476 1477 1478 1479 1479 1480 1480 1481 1481 1482 1483 1485 1486 1487 1487 1488 1488 1492 1492 1494 1503 1506 1512

Income not earned in a province 1483 Minimum tax carry-over 1485 CPP/QPP disability benefits for previous years 1486 Lump-sum Payments 1487 1487 1488 1488 1492 1492 1494 1503 1506 1512 Definitions Tax on Split Income Definitions Deduction for taxable dividends Tax payable by inter vivos trust Definitions Deduction from tax payable where employment out of Canada Definitions Definitions Subdivision a.1 Canada Child Tax Benefit

120.31 120.4 121 122 122.1 122.3 122.5 122.51

122.6 122.61

Definitions Deemed overpayment

12

Impt sur le revenu 21 fvrier 2013 Section 122.62 122.63 122.64 Eligible individuals Agreement Confidentiality of information Subdivision a.2 Working Income Tax Benefit 122.7 122.71 Definitions Modification for purposes of provincial program Subdivision b Rules Applicable to Corporations 123 123.1 123.3 Rate for corporations Corporation surtax Refundable tax on CCPCs investment income Corporation Tax Reductions 123.4 124 125 125.1 125.2 125.3 Definitions Deduction from corporation tax Small business deduction Manufacturing and processing profits deductions Deduction of Part VI tax Deduction of Part I.3 tax Canadian Film or Video Production Tax Credit 125.4 Definitions Film or Video Production Services Tax Credit 125.5 Definitions Subdivision c Rules Applicable to all Taxpayers 126 126.1 127 127.1 Foreign tax deduction Definitions Logging tax deduction Refundable investment tax credit 1569 1569 1591 1599 1672 126 126.1 127 127.1 1533 1533 1533 1534 1534 1534 1536 1537 1547 1551 1552 1556 1556 1563 1563 125.5 125.4 123.4 124 125 125.1 125.2 125.3 123 123.1 123.3 1526 1526 1533 Sous-section b Rgles applicable aux socits Taux affrents aux socits Surtaxe des socits Impt remboursable sur le revenu de placement dune socit prive sous contrle canadien Rductions de limpt des socits Dfinitions Dduction de limpt des socits Dduction accorde aux petites entreprises Dductions pour bnfices de fabrication et de transformation Crdit dimpt de la partie VI applicable aux institutions financires Dduction de limpt de la partie I.3 Crdit dimpt pour production cinmatographique ou magntoscopique canadienne Dfinitions Crdit dimpt pour services de production cinmatographique ou magntoscopique Dfinitions Sous-section c Rgles applicables tous les contribuables Dduction pour impt tranger Dfinitions Dduction relative limpt sur les oprations forestires Crdit dimpt linvestissement remboursable 1569 1569 1591 1599 1672 1533 1533 1533 1534 1534 1534 1536 1537 1547 1551 1552 122.7 122.71 Page 1522 1524 1525 Article 122.62 122.63 122.64 Particuliers admissibles Accord Caractre confidentiel des renseignements Sous-section a.2 Prestation fiscale pour le revenu de travail Dfinitions Programme provincial 1526 1526 1533 Page 1522 1524 1525

1556 1556

1563 1563

13

Income Tax February 21, 2013 Section 127.2 127.3 127.4 127.41 Share-purchase tax credit Scientific research and experimental development tax credit Definitions Part XII.4 tax credit DIVISION E.1 MINIMUM TAX 127.5 127.51 127.52 127.53 127.531 127.54 127.55 Obligation to pay minimum tax Minimum amount determined Adjusted taxable income determined Basic exemption Basic minimum tax credit determined Definitions Application of s. 127.5 DIVISION F SPECIAL RULES APPLICABLE IN CERTAIN CIRCUMSTANCES Bankruptcies 128 128.1 128.2 128.3 129 Where corporation bankrupt Changes in Residence Immigration Cross-border mergers Former resident replaced shares Private Corporations Dividend refund to private corporation Investment Corporations 130 Deduction from tax Mortgage Investment Corporations 130.1 131 Deduction from tax Mutual Fund Corporations Election re capital gains dividend Mutual Fund Trusts 132 1706 1706 1706 1713 1713 1731 1732 1732 1732 1739 1739 1742 1742 1752 1752 1770 132 131 130.1 130 129 128.1 128.2 128.3 128 1692 1692 1693 1693 1703 1704 1704 1705 127.5 127.51 127.52 127.53 127.531 127.54 127.55 Page 1678 1683 1688 1691 127.4 127.41 Article 127.2 127.3 Crdit dimpt lachat dactions Crdit dimpt pour des activits de recherche scientifique et de dveloppement exprimental Dfinitions Crdit dimpt de la partie XII.4 SECTION E.1 IMPT MINIMUM Assujettissement limpt minimum Taux de limpt minimum Revenu imposable modifi Exemption de base Crdit dimpt minimum de base Dfinitions applicables au crdit spcial pour impts trangers Impt minimum inapplicable SECTION F RGLES SPCIALE APPLICABLES EN CERTAINSCAS

Page 1678 1683 1688 1691 1692 1692 1693 1693 1703 1704 1704 1705

1706 1706 1706 1713 1713 1731 1732 1732 1732 1739

Faillites Faillite dune socit Changement de rsidence Immigration Unifications transfrontalires Socit rsident Ancien rsident actions remplaces Socits prives Remboursement au titre de dividendes une socit prive Socits de placement

Crdit dimpt applicable aux socits de placement 1739 Socits de placement hypothcaire Dduction de limpt Choix concernant les dividendes sur les gains en capital 1742 1742

Socits de placement capital variable 1752 1752

Fiducies de fonds commun de placement 1770 Remboursement au titre des gains en capital une fiducie de fonds commun de placement 1770

Capital gains refund to mutual fund trust 1770

14

Impt sur le revenu 21 fvrier 2013 Section 132.1 132.11 132.2 Page Amounts designated by mutual fund trust 1777 Taxation year of mutual fund trust Mutual funds qualifying exchange Non-Resident-Owned Investment Corporations 133 134 134.1 134.2 135 Computation of income Non-resident-owned corporation not a Canadian corporation, etc. NRO transition Revocation Patronage Dividends Deduction in computing income Agricultural Cooperatives Taxdeferred Patronage Dividends 135.1 136 Definitions Cooperative Corporations Cooperative not private corporation Credit Unions, Savings and Credit Unions and Deposit Insurance Corporations 137 137.1 137.2 Payments pursuant to allocations in proportion to borrowing Amounts included in income of deposit insurance corporation Computation of income for 1975 and subsequent years Insurance Corporations 138 138.1 139 Insurance corporations Rules relating to segregated funds Conversion of insurance corporations into mutual corporations Demutualization of Insurance Corporations 139.1 139.2 140 141 Definitions Mutual holding corporations Deductions in computing income Definitions 1779 1783 Article 132.1 132.11 132.2 Montants attribus par une fiducie de fonds commun de placement Anne dimposition dune fiducie de fonds commun de placement Organismes de placement collectif change admissible Page 1777 1779 1783

1788 1788 1799 1799 1799 1800 1800 1806 1806 1810 1810 136 135.1 135 133 134 134.1 134.2

Socits de placement appartenant des non-rsidents 1788 Calcul du revenu Absence de qualit de socit canadienne, etc. Socits de placement appartenant des non-rsidents transition Rvocation Ristournes Dduction dans le calcul du revenu Coopratives agricoles ristournes imposition diffre Dfinitions Socits coopratives Socit cooprative rpute ne pas tre une socit prive 1788 1799 1799 1799 1800 1800 1806 1806 1810 1810

Caisses de crdit, caisses dpargne et de crdit et compagnies dassurance-dpts 1811 1811 137 1811 137.1 1818 137.2 1826 1827 1827 1873 1883 1884 1884 1902 1902 1903 139.1 139.2 140 141 138 138.1 139 Paiements faits conformment des rpartitions proportionnelles limportance des emprunts 1811 Somme incluse dans le revenu dune compagnie dassurance-dpts 1818 Calcul du revenu pour les annes 1975 et suivantes 1826 Compagnies dassurance 1827 Compagnies dassurance 1827 Rgles concernant les fonds rservs 1873 Conversion en mutuelle dune compagnie dassurance 1883 Dmutualisation des compagnies dassurance Dfinitions Socits mutuelles de portefeuille Dduction dans le calcul du revenu Dfinitions 1884 1884 1902 1902 1903

15

Income Tax February 21, 2013 Section 141.1 Deemed not to be a private corporation Financial Institutions Interpretation 142.2 Definitions Page 1905 1905 1905 1905 142.2 Article 141.1 Compagnie dassurance rpute ne pas tre une socit prive Institutions Financires Dfinitions et interprtation Dfinitions Revenu provenant de titres de crance dtermins 142.3 Montants inclure et dduire Disposition de titres de crance dtermins 142.4 142.5 142.51 142.6 1929 1937 1937 1950 1950 1957 1960 1960 DIVISION G DEFERRED AND OTHER SPECIAL INCOME ARRANGEMENTS Employees Profit Sharing Plans 144 Definitions Employee Life and Health Trust 144.1 Definitions Registered Supplementary Unemployment Benefit Plans 145 Definitions 1967 1967 1967 1977 1977 1983 1983 145 144.1 144 143.2 143 143.1 142.7 Dfinitions Biens valus la valeur du march Traitement des bnfices et pertes Dfinitions Autres rgles Institution financire nouvelle ou ancienne Transformation dune filiale de banque trangre en succursale Dfinitions Organismes communautaires Organismes communautaires Dfinitions Cot des abris fiscaux dtermins Dfinitions SECTION G RGIMES DE PARTICIPATION DIFFRE ETAUTRES ARRANGEMENTS SPCIAUX RELATIFS AUX REVENUS

Page 1905 1905 1905 1905 1910 1910 1911 1911 1917 1917 1922 1929 1929 1937 1937 1950 1950 1957 1960 1960

Income from Specified Debt Obligations 1910 142.3 Amounts to be included and deducted Disposition of Specified Debt Obligations 142.4 142.5 142.51 142.6 Definitions Mark-to-Market Properties Income treatment for profits and losses Definitions Additional Rules Becoming or ceasing to be a financial institution Conversion of Foreign Bank Affiliate to Branch 142.7 143 143.1 143.2 Definitions Communal Organizations Communal organizations Definitions Cost of Tax Shelter Investments Definitions 1910 1911 1911 1917 1917 1922 1929

1967

Rgimes de participation des employs aux bnfices 1967 Dfinitions Fiducie de soins de sant au bnfice demploys Dfinitions Rgimes enregistrs de prestations supplmentaires de chmage Dfinitions 1967 1977 1977 1983 1983

16

Impt sur le revenu 21 fvrier 2013 Section Registered Retirement Savings Plans 146 146.01 146.02 146.1 146.2 146.3 146.4 Definitions Home Buyers Plan Definitions Lifelong Learning Plan Definitions Registered Education Savings Plans Definitions Tax-free Savings Accounts Definitions Registered Retirement Income Funds Definitions Registered Disability Savings Plan Definitions Deferred Profit Sharing Plans 147 147.1 147.2 147.3 147.4 Definitions Registered Pension Plans Definitions Pension contributions deductible employer contributions Transfer money purchase to money purchase, RRSP or RRIF RPP annuity contract Pooled Registered Pension Plans 147.5 148 Definitions Life Insurance Policies Amounts included in computing policyholders income Eligible Funeral Arrangements 148.1 Definitions DIVISION H EXEMPTIONS Miscellaneous Exemptions 149 149.1 Miscellaneous exemptions Qualified Donees Definitions 2176 2176 2176 2195 2195 149.1 149 Page 1984 1984 2016 2016 2029 2029 2037 2037 2052 2052 2059 2059 2078 2078 2096 2096 2114 2114 2127 147.3 2133 2141 2143 2143 2159 148 2159 2172 2172 148.1 Arrangements de services funraires Dfinitions SECTION H EXEMPTIONS Exemptions diverses Exemptions diverses Donataires reconnus Dfinitions 2176 2176 2176 2195 2195 2172 2172 147.5 147.4 Transfert entre cotisations dtermines ou un REER ou un FERR 2133 Contrat de rente acquis dans le cadre dun RPA 2141 Rgimes de pension agrs collectifs Dfinitions Polices dassurance-vie 2143 2143 2159 147.1 147.2 147 146.4 146.3 146.2 146.1 146.02 146.01 146 Article Page Rgimes enregistrs dpargne-retraite 1984 Dfinitions Rgime daccession la proprit Dfinitions Rgime dducation permanente Dfinitions Rgimes enregistrs dpargne-tudes Dfinitions Comptes dpargne libre dimpt Dfinitions Dfinitions Dfinitions Rgimes de participation diffre aux bnfices Dfinitions Rgimes de pension agrs Dfinitions Cotisations patronales dductibles 1984 2016 2016 2029 2029 2037 2037 2052 2052 2059 2078 2096 2096 2114 2114 2127

Fonds enregistrs de revenu de retraite 2059 Rgime enregistr dpargne-invalidit 2078

Calcul du revenu du titulaire dune police 2159

17

Income Tax February 21, 2013 Section 149.2 Material and insignificant interests DIVISION I RETURNS, ASSESSMENTS, PAYMENT AND APPEALS Returns 150 150.1 151 152 153 154 155 156 156.1 157 157.1 158 159 160 160.1 160.2 160.21 160.3 160.4 Filing returns of income general rule Definition of electronic filing Estimate of Tax Estimate of tax Assessment Assessment Payment of Tax Withholding Agreements providing for tax transfer payments Farmers and fishermen Other individuals Definitions Payment by corporation Instalment deferral for January, February and March 2002 - definitions Payment of remainder Person acting for another 2224 2224 2224 2228 2230 2230 2230 2230 2244 2244 2249 2250 2250 2251 2254 2260 2261 2262 158 159 160 160.1 160.2 160.21 2272 160.3 2274 160.4 2274 2276 2276 2285 2285 2288 161.1 161.2 161 153 154 155 156 156.1 157 157.1 152 Cotisation Paiement de limpt Retenue Accords relatifs aux transferts dimpt Agriculteurs et pcheurs Autres particuliers Dfinitions Versements par les socits Report des acomptes provisionnels de janvier, fvrier et mars 2002 dfinitions Paiement du solde Personne agissant pour le compte dautrui Transfert de biens entre personnes ayant un lien de dpendance Remboursement en trop Responsabilit solidaire lgard des sommes reues dans le cadre dun rgime enregistr dpargne-retraite Responsabilit solidaire lgard dun rgime enregistr dpargne-invalidit Responsabilit solidaire pour les montants provenant dune fiducie de convention de retraite Responsabilit en cas de transfert par des socits insolvables Intrts Disposition gnrale 151 150 150.1 Page 2217 Article 149.2 Participations notables et ngligeables SECTION I DCLARATIONS, COTISATIONS, PAIEMENT ETAPPELS

Page 2217

2224 2224 2224 2228 2230 2230 2230 2230 2244 2244 2249 2250 2250 2251 2254 2260 2261 2262 2265 2269 2271 2272 2274 2274 2276 2276

Dclarations Dclarations rgle gnrale Transmission lectronique Estimation de limpt Estimation de limpt Cotisation

Tax liability re property transferred not at arms length 2265 Where excess refunded 2269 Joint and several liability in respect of amounts received out of or under RRSP 2271 Joint and several liability registered disability savings plan Liability in respect of amounts received out of or under RCA trust Liability in respect of transfers by insolvent corporations Interest General Offset of Refund Interest and Arrears Interest

161

Compensation des intrts crditeurs et des intrts dbiteurs 2285 Dfinitions Intrts non payables 2285 2288

161.1 161.2

Definitions Period where interest not payable

18

Impt sur le revenu 21 fvrier 2013 Section Small Amounts Owing 161.3 161.4 162 163 163.1 Interest and penalty amounts of $25 or less Taxpayer Penalties Failure to file return of income Repeated failures Penalty for late or deficient instalments Page 2288 161.3 2288 2289 2289 2289 2297 2307 162 163 163.1 161.4 Article Sommes minimes Intrts et pnalits de 25 $ ou moins Contribuable Pnalits Dfaut de dclaration de revenu Omission rpte de dclarer un revenu Acomptes provisionnels en retard ou insuffisants Page 2288 2288 2289 2289 2289 2297 2307

Misrepresentation of a Tax Matter by a Third Party 2308 163.2 164 165 166 166.1 166.2 167 Definitions Refunds Refunds Objections to Assessments Objections to assessment General Irregularities Extension of time by Minister Extension of time by Tax Court Extension of time to appeal Revocation of Registration of Certain Organizations and Associations 168 2308 2314 2314 2328 2328 2332 2332 2332 2333 2334 2335 168 166 166.1 166.2 167 165 164 163.2

Information trompeuse en matire fiscale fournie par des tiers 2308 Dfinitions Remboursements Remboursement Opposition la cotisation Opposition la cotisation Dispositions gnrales Irrgularits Prorogation du dlai par le ministre Prorogation du dlai par la Cour canadienne de limpt Prorogation du dlai dappel Rvocation de lenregistrement de certaines oeuvres et associations Avis dintention de rvoquer lenregistrement SECTION J 2308 2314 2314 2328 2328 2332 2332 2332 2333 2334 2335 2335

Notice of intention to revoke registration 2335 DIVISION J APPEALS TO THE TAX COURT OF CANADA AND THE FEDERAL COURT OF APPEAL 2337 2337 2340 2340 2341 2344 2345 2347 2347 2347 2347

APPELS AUPRS DE LA COUR CANADIENNE DE LIMPT ET DE LA COUR DAPPEL FDRALE 2337 169 170 171 172 173 174 175 176 179 179.1 Appel Avis au sous-ministre Rglement dun appel Appel relatif un refus denregistrement, une rvocation denregistrement, etc. Renvoi des questions de droit, etc. la Cour canadienne de limpt Renvoi la Cour canadienne de limpt de questions communes Appels Document transmettre la Cour canadienne de limpt Huis clos Appel non fond 2337 2340 2340 2341 2344 2345 2347 2347 2347 2347

169 170 171 172 173 174 175 176 179 179.1

Appeal Notice to Deputy Minister Disposal of Appeal Appeal from refusal to register, revocation of registration, etc. References to Tax Court of Canada Reference of common questions to Tax Court of Canada Institution of appeals Notice, etc., to be forwarded to Tax Court of Canada Hearings in camera No reasonable grounds for appeal

19

Income Tax February 21, 2013 Section 180 Appeals to Federal Court of Appeal PART I.01 TAX IN RESPECT OF STOCK OPTION BENEFIT DEFERRAL 180.01 Election special tax and relief for deferral of stock option benefits PART I.1 INDIVIDUAL SURTAX PART I.2 TAX ON OLD AGE SECURITY BENEFITS 180.2 Definitions PART I.3 TAX ON LARGE CORPORATIONS 181 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.71 Definitions Tax payable Taxable capital employed in Canada Taxable capital employed in Canada of financial institution Taxable capital employed in Canada of non-resident Capital deduction Return Provisions applicable to Part Provisions applicable Crown corporations PART II TOBACCO MANUFACTURERS SURTAX 182 183 Surtax Return PART II.1 TAX ON CORPORATE DISTRIBUTIONS 183.1 183.2 Application of Part Return 2379 2379 2381 183.1 183.2 2377 2377 2378 182 183 2354 2354 2356 2362 2365 181.4 2373 2374 2376 2376 2376 PARTIE II SURTAXE DES FABRICANTS DE TABAC Surtaxe Dclaration PARTIE II.1 IMPT SUR CERTAINES DISTRIBUTIONS DE SURPLUS Application Dclaration 2379 2379 2381 2377 2377 2378 181.5 181.6 181.7 181.71 181 181.1 181.2 181.3 2351 2351 180.2 2351 2349 180.01 2349 Page 2348 Article 180 Appels la Cour dappel fdrale PARTIE I.01 IMPT RELATIF AU REPORT DES AVANTAGES LIS AUX OPTIONS DACHAT DACTIONS Page 2348

2349

Choix impt spcial et allgement pour report des avantages lis aux options dachat dactions 2349 PARTIE I.1 IMPT SUPPLMENTAIRE (REVENUS DES PARTICULIERS) PARTIE I.2 IMPT SUR LES PRESTATIONS DE SCURIT DE LA VIEILLESSE 2351 Dfinitions PARTIE I.3 IMPT DES GRANDES SOCITS Dfinitions Impt payable Capital imposable utilis au Canada Capital imposable utilis au Canada dune institution financire Capital imposable utilis au Canada dun non-rsident Abattement de capital Dclaration Dispositions applicables Disposition applicable aux socits dtat 2354 2354 2356 2362 2365 2373 2374 2376 2376 2376 2351 2351

20

Impt sur le revenu 21 fvrier 2013 Section PART III ADDITIONAL TAX ON EXCESSIVE ELECTIONS 2381 184 185 Tax on excessive elections Assessment of tax PART III.1 ADDITIONAL TAX ON EXCESSIVE ELIGIBLE DIVIDEND DESIGNATIONS 2388 185.1 185.2 Tax on excessive eligible dividend designations Return PART IV TAX ON TAXABLE DIVIDENDS RECEIVED BY PRIVATE CORPORATIONS 186 186.1 186.2 187 Tax on assessable dividends Exempt corporations Exempt dividends Information return PART IV.1 TAXES ON DIVIDENDS ON CERTAIN PREFERRED SHARES RECEIVED BY CORPORATIONS 187.1 187.2 187.3 187.4 187.5 187.6 187.61 Definition of excepted dividend Tax on dividends on taxable preferred shares Tax on dividends on taxable RFI shares Partnerships Information return Provisions applicable to Part Provisions applicable Crown corporations PART V TAX AND PENALTIES IN RESPECT OF QUALIFIED DONEES 2401 187.7 188 188.1 Application of s. 149.1(1) 2401 Deemed year-end on notice of revocation 2401 Penalty carrying on business 2406 187.7 188 188.1 185.1 2388 2390 185.2 2381 2386 184 185 Page Article PARTIE III IMPT SUPPLMENTAIRE SUR LES EXCDENTS RSULTANT DUN CHOIX 2381 Impt sur les excdents rsultant dun choix Cotisation PARTIE III.1 IMPT SUPPLMENTAIRE SUR LES DSIGNATIONS EXCESSIVES DE DIVIDENDES DTERMINS 2388 Impt sur les dsignations excessives de dividendes dtermins Dclaration PARTIE IV IMPT SUR LES DIVIDENDES IMPOSABLES REUS PAR LES SOCITS PRIVES 186 186.1 186.2 187 Impt sur les dividendes dtermins Socits exonres Dividendes exonrs Dclaration de renseignements PARTIE IV.1 IMPOSITION DES DIVIDENDES REUS PAR DES SOCITS SUR CERTAINES ACTIONS PRIVILGIES 187.1 187.2 187.3 187.4 187.5 187.6 187.61 Dfinition de dividende exclu Impt sur les dividendes des actions privilgies imposables Impt sur les dividendes des actions particulires aux institutions financires Socits de personnes Dclaration de renseignements Dispositions applicables Disposition applicable aux socits dtat PARTIE V IMPT ET PNALITS RELATIFS AUX DONATAIRES RECONNUS Application du par. 149.1(1) Fin danne rpute en cas davis de rvocation Pnalits activits dentreprise 2401 2401 2401 2406 2388 2390 2381 2386 Page

2392 2392 2395 2396 2396

2392 2392 2395 2396 2396

2396 2396 2397 2398 2400 2401 2401 2401

2396 2396 2397 2398 2400 2401 2401 2401

21

Income Tax February 21, 2013 Section 188.2 189 Notice of suspension with assessment Tax regarding non-qualified investment PART VI TAX ON CAPITAL OF FINANCIAL INSTITUTIONS 190 190.1 190.11 190.12 190.13 190.14 190.15 190.16 Definitions CALCULATION OF CAPITAL TAX Tax payable Taxable capital employed in Canada Taxable capital Capital Investment in related institutions Capital deduction TRANSITIONAL PROVISIONS Application to taxation year including July 1, 2006 ADMINISTRATIVE PROVISIONS 190.2 190.21 190.211 Return Provisions applicable to Part Provisions applicable -- Crown corporations PART VI.1 TAX ON CORPORATIONS PAYING DIVIDENDS ON TAXABLE PREFERRED SHARES 2437 191 191.1 191.2 191.3 191.4 Definitions Tax on taxable dividends Election Agreement respecting liability for tax Information return PART VII REFUNDABLE TAX ON CORPORATIONS ISSUING QUALIFYING SHARES 192 193 Corporation to pay tax Corporation to file return PART VIII REFUNDABLE TAX ON CORPORATIONS IN RESPECT OF SCIENTIFIC RESEARCH AND 2437 2443 2446 2447 2451 191 191.1 191.2 191.3 191.4 2422 2422 2423 2423 2428 2429 2429 2432 2433 2435 190.16 2435 2436 2436 2436 2437 PARTIE VI.1 IMPOSITION DES SOCITS VERSANT DES DIVIDENDES SUR DES ACTIONS PRIVILGIES IMPOSABLES Dfinitions Impt sur les dividendes dactions privilgies imposables Choix Solidarit conventionnelle Dclaration PARTIE VII IMPT REMBOURSABLE AUX SOCITS METTANT DES ACTIONS ADMISSIBLES 192 193 Impt payable par la socit Production dune dclaration PARTIE VIII IMPT SUR LES SOCITS REMBOURSABLE AU TITRE DU CRDIT DIMPT POUR DES ACTIVITS DE RECHERCHE 190.2 190.21 190.211 190.1 190.11 190.12 190.13 190.14 190.15 190 Page 2414 2417 Article 188.2 189 Avis de suspension avec cotisation Impt : placements non admissibles PARTIE VI IMPT DES INSTITUTIONS FINANCIRES Dfinitions CALCUL DE LIMPT Impt payable Capital imposable utilis au Canada Capital imposable Capital Placement dans des institutions lies Abattement de capital DISPOSITIONS TRANSITOIRES Anne dimposition comprenant le 1er juillet 2006 DISPOSITIONS DORDRE ADMINISTRATIF 2422 2422 2423 2423 2428 2429 2429 2432 2433 2435 2435 2436 Page 2414 2417

Dclaration de capital 2436 Dispositions applicables 2436 Disposition applicable aux socits dtat 2437

2437 2437 2443 2446 2447 2451

2451 2451 2456

2451 2451 2456

2458

2458

22

Impt sur le revenu 21 fvrier 2013 Section EXPERIMENTAL DEVELOPMENT TAX CREDIT 194 195 Corporation to pay tax Corporation to file return PART IX TAX ON DEDUCTION UNDER SECTION 66.5 196 Tax in respect of cumulative offset account PART IX.1 TAX ON SIFT PARTNERSHIPS 2468 2467 196 2467 PARTIE IX.1 IMPT DES SOCITS DE PERSONNES INTERMDIAIRES DE PLACEMENT DTERMINES 2468 197 Dfinitions PARTIE X IMPTS SUR LES RGIMES DE PARTICIPATION DIFFRE AUX BNFICES ET SUR LES RGIMES DONT LAGRMENT EST RETIR 2471 198 2471 199 2475 2476 2476 2476 2478 2478 200 201 202 203 204 Impt sur les placements non admissibles et utilisation de lactif comme garantie Impt sur les placements initiaux non admissibles dont il na pas t dispos Attribution assimile une disposition Impt en cas de contrepartie insuffisante pour lachat ou la vente Dclaration et paiement de limpt Imputation dautres impts Dfinitions PARTIE X.1 IMPT FRAPPANT LES EXCDENTS DE CONTRIBUTION AUX RGIMES DE REVENU DIFFR 2483 204.1 204.2 204.3 Impt payable par les particuliers Excdent au titre des REER Dclaration et paiement de limpt PARTIE X.2 IMPT SUR LES PLACEMENTS ENREGISTRS 204.4 204.5 2493 2483 2484 2493 2471 2475 2476 2476 2476 2478 2478 2468 2458 2464 194 195 Page Article SCIENTIFIQUE ET DE DVELOPPEMENT EXPRIMENTAL Impt payable par une socit Production dune dclaration PARTIE IX IMPT SUR LA DDUCTION VISE LARTICLE 66.5 2467 Impt payable 2467 2458 2464 Page

197

Definitions PART X TAXES ON DEFERRED PROFIT SHARING PLANS AND REVOKED PLANS

2468

2471

198 199 200 201 202 203 204

Tax on non-qualified investments and use of assets as security Tax on initial non-qualified investments not disposed of Distribution deemed disposition Tax where inadequate consideration on purchase or sale Returns and payment of estimated tax Application to other taxes Definitions PART X.1 TAX IN RESPECT OF OVERCONTRIBUTIONS TO DEFERRED INCOME PLANS

2483

204.1 204.2 204.3

Tax payable by individuals 2483 Definition of excess amount for a year in respect of registered retirement savings plans 2484 Return and payment of tax 2493 PART X.2 TAX IN RESPECT OF REGISTERED INVESTMENTS 2493

204.4 204.5

Definition of registered investment Publication of list in Canada Gazette

2493 2499

Dfinition de placement enregistr 2493 Publication de la liste dans la Gazette du Canada 2499

23

Income Tax February 21, 2013 Section 204.6 204.7 Tax payable Return and payment of tax PART X.3 LABOUR-SPONSORED VENTURE CAPITAL CORPORATIONS 204.8 204.81 204.82 204.83 204.84 204.841 204.85 204.86 204.87 Definitions Conditions for registration Recovery of credit Refunds for federally registered LSVCCs Penalty Penalty tax where venture capital business discontinued Dissolution of federally registered LSVCCs Return and payment of tax for federallyregistered LSVCCs Provisions applicable to Part PART X.4 TAX IN RESPECT OF OVERPAYMENTS TO REGISTERED EDUCATION SAVINGS PLANS 2523 204.9 204.91 204.92 204.93 Definitions Tax payable by subscribers Return and payment of tax Provisions applicable to Part PART X.5 PAYMENTS UNDER REGISTERED EDUCATION SAVINGS PLANS 204.94 Definitions PART XI TAXES IN RESPECT OF REGISTERED DISABILITY SAVINGS PLANS 2531 205 206 206.1 206.2 206.3 Definitions 2531 Tax payable where inadequate consideration 2534 Tax payable on non-qualified investment 2535 Tax payable where advantage extended Tax payable on use of property as security 2537 2537 205 206 206.1 206.2 206.3 2530 2530 204.94 2523 2528 2529 2529 204.9 204.91 204.92 204.93 2501 2501 2505 2512 2518 2519 2519 204.85 2520 204.86 2522 2523 204.87 204.8 204.81 204.82 204.83 204.84 204.841 Page 2499 2500 Article 204.6 204.7 Impt payable Dclaration et paiement de limpt PARTIE X.3 SOCITS CAPITAL DE RISQUE DE TRAVAILLEURS Dfinitions Conditions dagrment Recouvrement du crdit Remboursements aux socits capital de risque de travailleurs sous rgime fdral Pnalit Pnalit abandon dune entreprise capital de risque Dissolution de socits capital de risque de travailleurs sous rgime fdral Dclaration et paiement de limpt socits capital de risque de travailleurs sous rgime fdral Dispositions applicables PARTIE X.4 IMPT SUR LES VERSEMENTS EXCDENTAIRES AUX RGIMES ENREGISTRS DPARGNE-TUDES 2523 Dfinitions Impt payable par le souscripteur Dclaration et paiement de limpt Dispositions applicables PARTIE X.5 PAIEMENTS DANS LE CADRE DE RGIMES ENREGISTRS DPARGNE-TUDES Dfinitions PARTIE XI IMPTS RELATIFS AUX RGIMES ENREGISTRS DPARGNEINVALIDIT 2531 Dfinitions Impt payer en cas de contrepartie insuffisante Impt payer sur un placement non admissible Impt payer avantage accord Impt payer utilisation dun bien titre de garantie 2531 2534 2535 2537 2537 2523 2528 2529 2529 2501 2501 2505 2512 2518 2519 2519 2520 2522 2523 Page 2499 2500

2530 2530

24

Impt sur le revenu 21 fvrier 2013 Section 206.4 207 Waiver of liability Return and payment of tax PART XI.01 TAXES IN RESPECT OF RRIFs, RRSPs and TFSAs 2539 207.01 207.02 207.03 207.04 207.05 207.06 207.061 207.062 207.07 Definitions Tax payable on excess TFSA amount Tax payable on non-resident contributions Tax payable on prohibited or nonqualified investment Tax payable in respect of advantage Waiver of tax payable Income inclusion Special limit on tax payable Return and payment of tax PART XI.1 TAX IN RESPECT OF DEFERRED INCOME PLANS AND OTHER TAX EXEMPT PERSONS 2556 207.2 Return and payment of tax PART XI.2 TAX IN RESPECT OF DISPOSITIONS OF CERTAIN PROPERTIES 2557 207.3 207.31 207.4 Tax Payable by institution or public authority 2557 Tax payable by recipient of an ecological gift 2558 Return and payment of tax 2558 PART XI.3 TAX IN RESPECT OF RETIREMENT COMPENSATION ARRANGEMENTS 2559 207.5 207.6 207.61 207.62 207.63 207.64 207.65 207.7 Definitions Creation of trust Tax payable on prohibited investment Tax payable in respect of advantage Joint liability Waiver of tax payable Deemed distribution Tax payable PART XI.4 TAX ON EXCESS EPSP AMOUNTS 207.8 Excess EPSP amount 2571 2571 207.8 2559 2563 2568 2569 2569 2570 2570 2570 207.5 207.6 207.61 207.62 207.63 207.64 207.65 207.7 207.3 207.31 207.4 2557 207.2 2539 2550 2550 207.04 2551 2552 2553 2554 2554 2555 207.05 207.06 207.061 207.062 207.07 207.01 207.02 207.03 Page 2538 2538 Article 206.4 207 Renonciation Dclaration et paiement de limpt PARTIE XI.01 IMPTS RELATIFS AUX CELI, AUX FERR ET AUX REER 2539 Dfinitions Impt payer sur lexcdent CLI Impt payer sur les cotisations de nonrsidents Impt payer sur les placements interdits ou non admissibles Impt payer relativement un avantage Renonciation Somme inclure dans le revenu Restriction Dclaration et paiement de limpt PARTIE XI.1 IMPT RELATIF AUX RGIMES DE REVENU DIFFR ET DAUTRES PERSONNES EXONRES DIMPT 2556 Dclaration et paiement de limpt PARTIE XI.2 IMPT SUR LA DISPOSITION DE CERTAINS BIENS Impt payable par un tablissement ou une administration Impt payable par le bnficiaire dun don de biens cosensibles Dclaration et paiement de limpt PARTIE XI.3 IMPT SUR LES CONVENTIONS DE RETRAITE 2559 Dfinitions Fiducie rpute constitue Impt payable sur les placements interdits Impt payable relativement un avantage Responsabilit solidaire Renonciation Distribution rpute Impt payable PARTIE XI.4 IMPT SUR LES EXCDENTS RPEB 2571 Excdent RPEB 2571 2559 2563 2568 2569 2569 2570 2570 2570 2557 2557 2558 2558 2557 2539 2550 2550 2551 2552 2553 2554 2554 2555 Page 2538 2538

25

Income Tax February 21, 2013 Section PART XII TAX IN RESPECT OF CERTAIN ROYALTIES, TAXES, LEASE RENTALS, ETC., PAID TO A GOVERNMENT BY A TAX EXEMPT PERSON 2573 PART XII.1 TAX ON CARVED-OUT INCOME 2573 Page Article PARTIE XII IMPT RELATIF CERTAINS IMPTS, LOYERS, CERTAINES REDEVANCES, ETC. VERSS UN GOUVERNEMENT PAR UNE PERSONNE EXONRE DIMPT 2573 PARTIE XII.1 IMPT SUR LES REVENUS MINIERS ET PTROLIERS TIRS DE BIENS RESTREINTS 2573 209 Dfinitions PARTIE XII.2 IMPT SUR LE REVENU DISTRIBU DE CERTAINES FIDUCIES 2578 210 210.1 210.2 210.3 Sens de bnficiaire tranger ou assimil Champ dapplication Impt payable par les fiducies Exemption sur attestation PARTIE XII.3 IMPT SUR LE REVENU DE PLACEMENT DES ASSUREURS SUR LA VIE 2583 211 211.1 211.2 211.3 211.4 211.5 Dfinitions Impt payable Dclaration Acomptes provisionnels Paiement du solde Dispositions applicables PARTIE XII.4 2592 2592 PART XII.5 RECOVERY OF LABOURSPONSORED FUNDS TAX CREDIT 211.7 211.8 211.9 Definitions Disposition of approved share Refund 2596 2596 2597 2599 211.7 211.8 211.9 211.6 IMPT DES FIDUCIES POUR LENVIRONNEMENT ADMISSIBLE 2592 Dfinitions PARTIE XII.5 RECOUVREMENT DU CRDIT DIMPT RELATIF UN FONDS DE TRAVAILLEURS 2596 Dfinitions Disposition dune action approuve Remboursement du montant rcupr 2596 2597 2599 2592 2583 2587 2591 2591 2592 2592 2578 2579 2579 2582 2573 Page

209

Definitions PART XII.2

2573

TAX ON DESIGNATED INCOME OF CERTAIN TRUSTS 2578 210 210.1 210.2 210.3 Designated beneficiary Application of Part Tax on income of trust Where no designated beneficiaries PART XII.3 TAX ON INVESTMENT INCOME OF LIFE INSURERS 2583 211 211.1 211.2 211.3 211.4 211.5 Definitions Tax payable Return Instalments Payment of remainder of tax Provisions applicable to Part PART XII.4 TAX ON QUALIFYING ENVIRONMENTAL TRUSTS 211.6 Definitions 2583 2587 2591 2591 2592 2592 2578 2579 2579 2582

26

Impt sur le revenu 21 fvrier 2013 Section PART XII.6 TAX ON FLOW-THROUGH SHARES 2599 211.91 Tax imposed PART XIII TAX ON INCOME FROM CANADA OF NON-RESIDENT PERSONS 212 212.1 212.2 212.3 213 214 215 216 216.1 217 218 218.1 Tax Non-arms length sales of shares by nonresidents Application Foreign affiliate dumping conditions for application Tax non-payable by non-resident person No deductions Withholding and remittance of tax Alternatives re rents and timber royalties Alternative re: acting services Alternative re Canadian benefits Loan to wholly-owned subsidiary Application of s. 138.1 PART XIII.1 ADDITIONAL TAX ON AUTHORIZED FOREIGN BANKS 218.2 Branch interest tax PART XIII.2 NON-RESIDENT INVESTORS IN CANADIAN MUTUAL FUNDS 218.3 Definitions PART XIV ADDITIONAL TAX ON NONRESIDENT CORPORATIONS 219 219.1 219.2 219.3 Additional tax Corporate emigration Limitation on rate of branch tax Effect of tax treaty 2670 2670 2678 2680 2681 219 219.1 219.2 219.3 2666 2666 218.3 2665 2665 218.2 2601 2601 2619 2623 2625 2644 2645 2654 2656 2660 2661 2663 2664 213 214 215 216 216.1 217 218 218.1 212 212.1 212.2 212.3 2599 211.91 Page Article PARTIE XII.6 IMPT SUR LES ACTIONS ACCRDITIVES Assujettissement PARTIE XIII IMPT SUR LE REVENU DE PERSONNES NON-RSIDENTES PROVENANT DU CANADA Impt Vente dactions avec lien de dpendance par des non-rsidents Conditions dapplication Oprations de transfert de socits trangres affilies conditions dapplication Impt non exigible dun non-rsident Aucune dduction Dduction et paiement de limpt Choix relatif aux loyers et redevances forestires Services dacteur Prestations canadiennes Prt une filiale cent pour cent Application de lart. 138.1 PARTIE XIII.1 IMPT SUPPLMENTAIRE DES BANQUES TRANGRES AUTORISES Impt sur les intrts de succursale PARTIE XIII.2 PLACEMENTS DE NON-RSIDENTS DANS LES FONDS COMMUNS DE PLACEMENT CANADIENS 2666 Dfinitions PARTIE XIV IMPT SUPPLMENTAIRE DES SOCITS NON-RSIDENTES Impt supplmentaire Socit quittant le Canada Restriction au taux de limpt de succursale Effet 2670 2670 2678 2680 2681 2666 2599 2599 Page

2601 2601 2619 2623 2625 2644 2645 2654 2656 2660 2661 2663 2664

2665 2665

27

Income Tax February 21, 2013 Section PART XV ADMINISTRATION AND ENFORCEMENT ADMINISTRATION 220 221 221.1 221.2 222 222.1 223 223.1 224 224.1 224.2 224.3 225 225.1 225.2 226 227 227.1 228 229.1 230 230.1 231 231.1 231.2 231.3 231.4 231.5 231.6 231.7 232 233 233.1 233.2 Ministers duty Regulations Application of interest Re-appropriation of amounts COLLECTION Definitions Court costs Definition of amount payable Application of ss. 223(1) to (8) and (12) Garnishment Recovery by deduction or set-off Acquisition of debtors property Payment of moneys seized from tax debtor Seizure of chattels Collection restrictions Definition of judge Taxpayer leaving Canada Withholding taxes Liability of directors for failure to deduct Applying payments under collection agreements Repeal of s. 229 GENERAL Records and books Records re monetary contributions Canada Elections Act Definitions Inspections Requirement to provide documents or information Search warrant Inquiry Copies Definition of foreign-based information or document Compliance order Definitions Information return Definitions Definitions 2681 2681 2681 2693 2695 2695 2696 2696 2698 2699 2704 2704 2708 2708 2709 2709 2710 2713 2715 2716 2726 2728 2728 2728 2728 2731 2732 2732 2734 2735 2737 2738 2739 2740 2741 2747 2747 2749 230 230.1 231 231.1 231.2 231.3 231.4 231.5 231.6 231.7 232 233 233.1 233.2 222 222.1 223 223.1 224 224.1 224.2 224.3 225 225.1 225.2 226 227 227.1 228 229.1 220 221 221.1 221.2 APPLICATION Fonctions du ministre Rglements Intrt Raffectation de montants RECOUVREMENT Dfinitions Frais de justice Sens de montant payable Application des par. 223(1) (8) et (12) Saisie-arrt Recouvrement par voie de dduction ou de compensation Acquisition de biens du dbiteur Fonds saisis entre les mains dun dbiteur fiscal Saisie des biens meubles Restrictions au recouvrement Dfinition de juge Contribuable quittant le Canada Retenue des impts Responsabilit des administrateurs pour dfaut deffectuer les retenues Imputation des paiements selon des accords de perception Abrogation de lart. 229 GNRALITS Livres de comptes et registres Registres des contributions montaires : Loi lectorale du Canada Dfinitions Enqutes Production de documents ou fourniture de renseignements Requte pour mandat de perquisition Enqute Copies Sens de renseignement ou document tranger Ordonnance Dfinitions Dclaration de renseignements Dfinitions Dfinitions 2681 2681 2693 2695 2695 2696 2696 2698 2699 2704 2704 2708 2708 2709 2709 2710 2713 2715 2716 2726 2728 2728 2728 2728 2731 2732 2732 2734 2735 2737 2738 2739 2740 2741 2747 2747 2749 Page Article PARTIE XV APPLICATION ET EXCUTION 2681 Page

28

Impt sur le revenu 21 fvrier 2013 Section 233.3 233.4 233.5 233.6 233.7 234 235 236 237 237.1 237.2 238 239 240 241 242 243 244 Definitions Reporting entity Due diligence exception Returns respecting distributions from non-resident trusts Exception for first-year residents Ownership certificates Penalty for failing to file corporate returns Execution of documents by corporations Social Insurance Number Definitions Application of s. 237.1 OFFENCES AND PUNISHMENT Offences and punishment Other offences and punishment Definition of taxable obligation and nontaxable obligation Provision of information Officers, etc., of corporations Power to decrease punishment PROCEDURE AND EVIDENCE Information or complaint PART XVI TAX AVOIDANCE 245 246 Definitions Benefit conferred on a person PART XVI.1 TRANSFER PRICING 247 Definitions PART XVII INTERPRETATION 248 249 249.1 250 250.1 251 251.1 252 252.1 Definitions Definition of taxation year Definition of fiscal period Person deemed resident Non-resident persons taxation year and income Arms length Definition of affiliated persons Extended meaning of child Union employer 2814 2814 2912 2915 2921 2925 2925 2929 2933 2935 248 249 249.1 250 250.1 251 251.1 252 252.1 2804 2804 247 Dfinitions PARTIE XVII INTERPRTATION Dfinitions Sens danne dimposition Dfinition de exercice Personne rpute rsider au Canada Anne dimposition et revenu dune personne non-rsidente Lien de dpendance Dfinition de personnes affilies Extension du sens denfant Syndicats 2814 2814 2912 2915 2921 2925 2925 2929 2933 2935 2801 2801 2803 245 246 Page 2756 2759 2760 2761 2762 2762 2763 2763 2764 2765 2772 2772 2772 2773 2777 2777 2794 2794 2794 2794 244 238 239 240 241 242 243 Article 233.3 233.4 233.5 233.6 233.7 234 235 236 237 237.1 237.2 Dfinitions Dclarant Exception Dclaration lorsquune distribution est effectue par une fiducie non-rsidente Exception Premire anne de rsidence Certificats de proprit Pnalit pour non-production de dclaration Validation des documents par les socits Numro dassurance sociale Dfinitions Application de lart. 237.1 INFRACTIONS ET PEINES Infractions et peines Autres infractions et peines Dfinitions de obligation imposable et de obligation non imposable Communication de renseignements Responsabilit pnale des dirigeants, etc. de socits Pouvoir de diminuer les peines PROCDURE ET PREUVE Dnonciation ou plainte PARTIE XVI VITEMENT FISCAL Dfinitions Avantage confr un contribuable PARTIE XVI.1 PRIX DE TRANSFERT 2804 2804 2801 2801 2803 Page 2756 2759 2760 2761 2762 2762 2763 2763 2764 2765 2772 2772 2772 2773 2777 2777 2794 2794 2794 2794

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Income Tax February 21, 2013 Section 253 253.1 254 255 256 257 258 259 260 261 262 Extended meaning of carrying on business Investments in limited partnerships Contract under pension plan Canada Associated corporations Negative amounts Deemed dividend on term preferred share Proportional holdings in trust property Definitions Definitions Authority to designate stock exchange RELATED PROVISIONS AMENDMENTS NOT IN FORCE Page 2936 2936 2937 2938 2938 2954 2954 2955 2959 2965 2988 2989 2991 Article 253 253.1 254 255 256 257 258 259 260 261 262 Extension du sens de exploiter une entreprise Placements dans des socits de personnes en commandite Contrat conclu en vertu dun rgime de pension Canada Socits associes Rsultats ngatifs Montant rput constituer un dividende sur une action privilgie terme Partie dtermine dun bien de fiducie Dfinitions Dfinitions Pouvoir de dsignation DISPOSITIONS CONNEXES Page 2936 2936 2937 2938 2938 2954 2954 2955 2959 2965 2988 2989

MODIFICATIONS NON EN VIGUEUR 2991

30

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

S.R.C. 1985, ch. 1 (5e suppl.)

An Act respecting income taxes SHORT TITLEShort Title

Loi concernant les impts sur le revenu TITRE ABRG 1.Loi de limpt sur le revenu.NOTE : Les dispositions dapplication ne sont pas incluses dans la prsente codification; voir les lois modificatives appropries. S.R.C. 1952, ch. 148, art. 1.Titre abrg

1.This Act may be cited as the Income Tax Act.NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts. R.S.C. 1952, c. 148, s. 1.

PART I INCOME TAX DIVISION A LIABILITY FOR TAXTax payable by persons resident in Canada

PARTIE I IMPT SUR LE REVENU SECTION A ASSUJETTISSEMENT LIMPT 2.(1)Un impt sur le revenu doit tre pay, ainsi quil est prvu par la prsente loi, pour chaque anne dimposition, sur le revenu imposable de toute personne rsidant au Canada un moment donn au cours de lanne. (2)Le revenu imposable dun contribuable pour une anne dimposition est son revenu pour lanne plus les ajouts prvus la section C et moins les dductions qui y sont permises. (3)Un impt sur le revenu doit tre pay, ainsi quil est prvu par la prsente loi, sur son revenu imposable gagn au Canada pour lanne, dtermin conformment la section D, par la personne non imposable en vertu du paragraphe (1) pour une anne dimposition et qui, un moment donn de lanne ou dune anne antrieure, a : a)soit t employe au Canada; b)soit exploit une entreprise au Canada; c)soit dispos dun bien canadien imposable.NOTE : Les dispositions dapplication ne sont pas incluses dans la prsente codification; voir les lois modificatives appropries. 1970-71-72, ch. 63, art. 1 2 ; 1984, ch. 1, art. 1; 1985, ch. 45, art. 1.Impt payable par les personnes rsidant au Canada

2.(1)An income tax shall be paid, as required by this Act, on the taxable income for each taxation year of every person resident in Canada at any time in the year. (2)The taxable income of a taxpayer for a taxation year is the taxpayers income for the year plus the additions and minus the deductions permitted by Division C. (3)Where a person who is not taxable under subsection 2(1) for a taxation year (a)was employed in Canada, (b)carried on a business in Canada, or (c)disposed of a taxable Canadian property, at any time in the year or a previous year, an income tax shall be paid, as required by this Act, on the persons taxable income earned in Canada for the year determined in accordance with Division D.NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts. 1970-71-72, c. 63, s. 1 2; 1984, c. 1, s.1; 1985, c. 45, s. 1.

Taxable income

Revenu imposable

Tax payable by non-resident persons

Impt payable par les nonrsidents

1

Income Tax February 21, 2013 DIVISION B COMPUTATION OF INCOME Basic RulesIncome for taxation year

SECTION B CALCUL DU REVENU Rgles fondamentales 3.Pour dterminer le revenu dun contribuable pour une anne dimposition, pour lapplication de la prsente partie, les calculs suivants sont effectuer : a)le calcul du total des sommes qui constituent chacune le revenu du contribuable pour lanne (autre quun gain en capital imposable rsultant de la disposition dun bien) dont la source se situe au Canada ou ltranger, y compris, sans que soit limite la porte gnrale de ce qui prcde, le revenu tir de chaque charge, emploi, entreprise et bien; b)le calcul de lexcdent ventuel du montant vis au sous-alina (i) sur le montant vis au sous-alina (ii): (i)le total des montants suivants : (A)ses gains en capital imposables pour lanne tirs de la disposition de biens, autres que des biens meubles dtermins, (B)son gain net imposable pour lanne tir de la disposition de biens meubles dtermins, (ii)lexcdent ventuel de ses pertes en capital dductibles pour lanne, rsultant de la disposition de biens autres que des biens meubles dtermins sur les pertes dductibles au titre dun placement dentreprise pour lanne, subies par le contribuable; c)le calcul de lexcdent ventuel du total tabli selon lalina a) plus le montant tabli selon lalina b) sur le total des dductions permises par la sous-section e dans le calcul du revenu du contribuable pour lanne (sauf dans la mesure o il a t tenu compte de ces dductions dans le calcul du total vis lalina a)); d)le calcul de lexcdent ventuel de lexcdent calcul selon lalina c) sur le total des pertes subies par le contribuable pour lanne qui rsultent dune charge, dun emploi, dune entreprise ou dun bien et des pertesRevenu pour lanne dimposition

3.The income of a taxpayer for a taxation year for the purposes of this Part is the taxpayers income for the year determined by the following rules: (a)determine the total of all amounts each of which is the taxpayers income for the year (other than a taxable capital gain from the disposition of a property) from a source inside or outside Canada, including, without restricting the generality of the foregoing, the taxpayers income for the year from each office, employment, business and property, (b)determine the amount, if any, by which (i)the total of (A)all of the taxpayers taxable capital gains for the year from dispositions of property other than listed personal property, and (B)the taxpayers taxable net gain for the year from dispositions of listed personal property, exceeds (ii)the amount, if any, by which the taxpayers allowable capital losses for the year from dispositions of property other than listed personal property exceed the taxpayers allowable business investment losses for the year, (c)determine the amount, if any, by which the total determined under paragraph (a) plus the amount determined under paragraph (b) exceeds the total of the deductions permitted by subdivision e in computing the taxpayers income for the year (except to the extent that those deductions, if any, have been taken into account in determining the total referred to in paragraph (a), and (d)determine the amount, if any, by which the amount determined under paragraph (c) exceeds the total of all amounts each of which is the taxpayers loss for the year from an office, employment, business or property or the taxpayers allowable business investment loss for the year,

2

Impt sur le revenu 21 fvrier 2013 and for the purposes of this Part, (e)where an amount is determined under paragraph (d) for the year in respect of the taxpayer, the taxpayers income for the year is the amount so determined, and (f)in any other case, the taxpayer shall be deemed to have income for the year in an amount equal to zero.NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 3; 1994, c. 7, Sch. II, s. 1.

dductibles au titre dun placement dentreprise subies par le contribuable pour lanne; Pour lapplication de la prsente partie, les rgles suivantes sappliquent : e)si un montant est calcul selon lalina d) lgard du contribuable pour lanne, le revenu du contribuable pour lanne correspond ce montant; f)sinon, le revenu du contribuable pour lanne est rput gal zro.NOTE : Les dispositions dapplication ne sont pas incluses dans la prsente codification; voir les lois modificatives appropries. L.R. (1985), ch. 1 (5e suppl.), art. 3; 1994, ch. 7, ann. II, art. 1.

Income or loss from a source or from sources in a place

4.(1)For the purposes of this Act, (a)a taxpayers income or loss for a taxation year from an office, employment, business, property or other source, or from sources in a particular place, is the taxpayers income or loss, as the case may be, computed in accordance with this Act on the assumption that the taxpayer had during the taxation year no income or loss except from that source or no income or loss except from those sources, as the case may be, and was allowed no deductions in computing the taxpayers income for the taxation year except such deductions as may reasonably be regarded as wholly applicable to that source or to those sources, as the case may be, and except such part of any other deductions as may reasonably be regarded as applicable thereto; and (b)where the business carried on by a taxpayer or the duties of the office or employment performed by a taxpayer was carried on or were performed, as the case may be, partly in one place and partly in another place, the taxpayers income or loss for the taxation year from the business carried on, or the duties performed, by the taxpayer in a particular place is the taxpayers income or loss, as the case may be, computed in accordance with this Act on the assumption that the taxpayer had during the taxation year no income or loss except from the part of the business that was carried on in that particular place or no income or loss except from the part of those duties that were performed in that particular place, as the case may be, and was allowed no deductions in computing the taxpayers income for the taxation year except

4.(1)Les rgles suivants sappliquent la prsente loi : a)le revenu ou la perte dun contribuable pour une anne dimposition provenant dune charge, dun emploi, dune entreprise, de biens ou dune autre source, ou de sources situes dans un endroit dtermin, sentend du revenu ou de la perte, selon le cas, du contribuable, calculs conformment la prsente loi, supposer que ce contribuable nait eu, durant lanne dimposition, aucun revenu ni perte, sauf ce qui provenait de cette source, ni aucun revenu ou perte, sauf ce qui provenait de ces sources, selon le cas, et quil nait eu droit aucune dduction dans le calcul de son revenu pour lanne dimposition lexception des dductions quil est raisonnable de considrer comme entirement applicables cette source ou ces sources, selon le cas, et lexception de la partie de toutes autres dductions quil est raisonnable de considrer comme applicable cette source ou ces sources; b)lorsque lentreprise exploite par un contribuable la t, ou que les fonctions de la charge ou de lemploi remplies par ce dernier lont t, selon le cas, en partie dans un endroit et en partie dans un autre endroit, le revenu ou la perte du contribuable pour lanne dimposition provenant de lentreprise quil a exploite ou des fonctions quil a remplies dans un endroit dtermin est, selon le cas, le revenu ou la perte du contribuable, calculs conformment la prsente loi, supposer quil nait eu durant lanne dimposition aucun revenu ni perte, sauf ce qui provenait de la partie de lentreprise exploi-

Revenu ou perte provenant dune source dtermine ou de sources situes dans un endroit dtermin

3

Income Tax February 21, 2013 such deductions as may reasonably be regarded as wholly applicable to that part of the business or to those duties, as the case may be, and except such part of any other deductions as may reasonably be regarded as applicable thereto. te dans cet endroit dtermin, ni aucun revenu ou perte, sauf ce qui provenait de la partie des fonctions remplies dans cet endroit dtermin, selon le cas, et quil nait eu droit aucune dduction dans le calcul de son revenu pour lanne dimposition, lexception des dductions quil est raisonnable de considrer comme entirement applicables cette partie de lentreprise ou ces fonctions, selon le cas, et lexception de la partie de toutes autres dductions, quil est raisonnable de considrer comme applicable cette partie de lentreprise ou ces fonctions. (2)Sous rserve du paragraphe (3) et pour lapplication du paragraphe (1) dans le cadre de la prsente partie, les dductions autorises par les articles 60 64 ne sappliquent, ni en totalit ni en partie, une source dtermine ou des sources situes dans un endroit dtermin. (3)Pour lapplication du paragraphe (1) dans le cadre des paragraphes 104(22) et (22.1) et des articles 115 et 126: a)sous rserve de lalina b), les dductions permises dans le calcul du revenu dun contribuable pour une anne dimposition dans le cadre de la prsente partie, sauf celles permises par lun des alinas 60b) o), p), r) et v) z), sappliquent, en totalit ou en partie, une source dtermine ou des sources situes dans un endroit dtermin; b)les dductions permises par les paragraphes 104(6) ou (12) ne sappliquent, ni en totalit ni en partie, une source situe dans un pays tranger. (4)[Abrog, 1996, ch. 21, art. 2(1)]NOTE : Les dispositions dapplication ne sont pas incluses dans la prsente codification; voir les lois modificatives appropries. L.R. (1985), ch. 1 (5e suppl.), art. 4; 1994, ch. 7, ann. II, art. 2, ch. 21, art. 1; 1996, ch. 21, art. 2; 2007, ch. 35, art. 101.Idem

Idem

(2)Subject to subsection 4(3), in applying subsection 4(1) for the purposes of this Part, no deductions permitted by sections 60 to 64 apply either wholly or in part to a particular source or to sources in a particular place. (3)In applying subsection 4(1) for the purposes of subsections 104(22) and 104(22.1) and sections 115 and 126, (a)subject to paragraph (b), all deductions permitted in computing a taxpayers income for a taxation year for the purposes of this Part, except any deduction permitted by any of paragraphs 60(b) to (o), (p), (r) and (v) to (z), shall apply either wholly or in part to a particular source or to sources in a particular place; and (b)any deduction permitted by subsection 104(6) or 104(12) shall not apply either wholly or in part to a source in a country other than Canada. (4)[Repealed, 1996, c. 21, s. 2(1)]NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 4; 1994, c. 7, Sch. II, s. 2, c. 21, s. 1; 1996, c. 21, s. 2; 2007, c. 35, s. 101.

Deductions applicable

lments dductibles

Subdivision a Income or Loss from an Office or Employment Basic RulesIncome from office or employment

Sous-section a Revenu ou perte provenant dune charge ou dun emploi Rgles fondamentales a taxpayers inan office or emand other remureceived by the 5.(1)Sous rserve des autres dispositions de la prsente partie, le revenu dun contribuable, pour une anne dimposition, tir dune charge ou dun emploi est le traitement, le salaire et toute autre rmunration, y compris lesRevenu tir dune charge ou dun emploi

5.(1)Subject to this Part, come for a taxation year from ployment is the salary, wages neration, including gratuities, taxpayer in the year.

4

Impt sur le revenu 21 fvrier 2013 gratifications, que le contribuable a reus au cours de lanne.Loss from office or employment

(2)A taxpayers loss for a taxation year from an office or employment is the amount of the taxpayers loss, if any, for the taxation year from that source computed by applying, with such modifications as the circumstances require, the provisions of this Act respecting the computation of income from that source.NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts. 1970-71-72, c. 63, s. 15.

(2)La perte subie par un contribuable au cours dune anne dimposition au titre dune charge ou dun emploi est constitue par le montant de sa perte subie au cours de cette anne au titre de cette charge ou de cet emploi, calcule par lapplication, avec les adaptations ncessaires, des dispositions de la prsente loi affrentes au calcul du revenu tir de cette charge ou de cet emploi.NOTE : Les dispositions dapplication ne sont pas incluses dans la prsente codification; voir les lois modificatives appropries. 1970-71-72, ch. 63, art. 1 5 .

Perte rsultant dune charge ou dun emploi

InclusionsAmounts to be included as income from office or employment Value of benefits

lments inclure 6.(1)Sont inclure dans le calcul du revenu dun contribuable tir, pour une anne dimposition, dune charge ou dun emploi, ceux des lments suivants qui sont applicables : a)la valeur de la pension, du logement et autres avantages quelconques quil a reus ou dont il a joui au cours de lanne au titre, dans loccupation ou en vertu dune charge ou dun emploi, lexception des avantages suivants : (i)ceux qui rsultent des cotisations que lemployeur du contribuable verse dans le cadre dune fiducie de soins de sant au bnfice demploys, dune police collective dassurance temporaire sur la vie, dun rgime dassurance collective contre la maladie ou les accidents, dun rgime de participation diffre aux bnfices, dun rgime de pension agr, dun rgime de pension agr collectif, dun rgime de prestations supplmentaires de chmage ou dun rgime priv dassurance-maladie, (ii)ceux qui dcoulent dune convention de retraite, dun rgime de prestations aux employs ou dune fiducie demploys, (iii)ceux qui taient des avantages relatifs lusage dune automobile, (iv)ceux qui dcoulent de la prestation de services daide concernant : (A)soit la sant physique ou mentale du contribuable ou dun particulier qui lui est li, lexclusion dun avantage imputable une dpense laquelle lalina 18(1)l) sapplique,lments inclure titre de revenu tir dune charge ou dun emploi Valeur des avantages

6.(1)There shall be included in computing the income of a taxpayer for a taxation year as income from an office or employment such of the following amounts as are applicable (a)the value of board, lodging and other benefits of any kind whatever received or enjoyed by the taxpayer in the year in respect of, in the course of, or by virtue of an office or employment, except any benefit (i)derived from the contributions of the taxpayers employer to or under a deferred profit sharing plan, an employee life and health trust, a group sickness or accident insurance plan, a group term life insurance policy, a pooled registered pension plan, a private health services plan, a registered pension plan or a supplementary unemployment benefit plan, (ii)under a retirement compensation arrangement, an employee benefit plan or an employee trust, (iii)that was a benefit in respect of the use of an automobile, (iv)derived from counselling services in respect of (A)the mental or physical health of the taxpayer or an individual related to the taxpayer, other than a benefit attributable to an outlay or expense to which paragraph 18(1)(l) applies, or (B)the re-employment or retirement of the taxpayer, or

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Income Tax February 21, 2013 (v)under a salary deferral arrangement, except to the extent that the benefit is included under this paragraph because of subsection 6(11);Personal or living expenses

(B)soit le remploi ou la retraite du contribuable, (v)ceux qui sont prvus par une entente dchelonnement du traitement, sauf dans la mesure o lavantage est vis au prsent alina par leffet du paragraphe (11); b)les sommes quil a reues au cours de lanne titre dallocations pour frais personnels ou de subsistance ou titre dallocations toute autre fin, sauf : (i)les allocations pour frais de dplacement ou frais personnels ou de subsistance : (A)soit expressment fixes par une loi fdrale, (B)soit payes en vertu dune autorisation du Conseil du Trsor une personne nomme, ou dont les services taient retenus, conformment la Loi sur les enqutes, relativement laccomplissement des fonctions affrentes sa nomination ou son engagement, (ii)les allocations de dplacement et les indemnits dabsence du foyer reues en vertu de rglements militaires titre de membre des Forces canadiennes, (iii)les allocations de reprsentation ou autres allocations spciales reues et affrentes une priode dabsence du Canada, titre de personne vise lalina 250(1)b), c), d) ou d.1), (iv)les allocations de reprsentation ou autres allocations spciales reues par un agent gnral dune province et affrentes une priode pendant laquelle il tait Ottawa en qualit dagent gnral de la province, (v)les allocations raisonnables pour frais de dplacement reues de son employeur par un emplo