Corporations Tax Act, R.S.O. 1990, c. C.40

• Jurisdiction: Ontario

Corporations Tax Act

R.S.O. 1990, CHAPTER C.40

Consolidation Period: From December 9, 2021 to the e-Laws currency date.

Last amendment: 2021, c. 40, Sched. 4.

Caution: Many provisions of this Act have special application rules. The reader should consult the Statutes of Ontario, 1992, chapter 3, the Statutes of Ontario, 1994, chapter 14, the Statutes of Ontario, 1996, chapter 1, Schedule B, the Statutes of Ontario, 1996, chapter 29, the Statutes of Ontario, 1997, chapter 43, Schedule A, the Statutes of Ontario, 1998, chapter 5, subsection 12 (2), the Statutes of Ontario, 1998, chapter 34, Part III, the Statutes of Ontario, 1999, chapter 9, Part VI and the Statutes of Ontario, 2004, chapter 31, Schedule 9, subsection 7 (2).

CONTENTS

PART I
GENERAL

Interpretation

Interpretation

1 (1) In this Act and in the application of the provisions of the Income Tax Act (Canada) that are by this Act made applicable for the purposes of this Act,

(a) each of the provisions contained in Part XVII of the Income Tax Act (Canada) applies for the purposes of this Act unless otherwise provided in this Act;

(b) Repealed: 1996, c. 29, s. 36 (1).

(c) subsection 248 (7) of the Income Tax Act (Canada) does not apply for the purposes of this Act;

(d) the interpretations contained in the said Part XVII of the expressions “farming”, “foreign resource property”, “Minister”, “paid-up capital”, “regulation”, “taxable income”, “taxable income earned in Canada” and “tax payable” do not apply and in lieu thereof the following interpretations are applicable:

“farming” includes tillage of the soil, livestock raising or exhibiting, maintaining of horses for racing, raising of poultry, fur farming, dairy farming, fruit growing, and the keeping of bees, but does not include an office or employment under a person engaged in the business of farming and, for the purposes of subsection 71 (1) only, does not include the maintaining of horses for racing, (“agriculture”)

“foreign resource property” has the meaning given to that expression by section 14, (“avoir minier étranger”)

“Minister” means, unless otherwise provided in this Act, the Minister of Finance, but the reference to “Minister” in subsection 249.1 (7) of the Income Tax Act (Canada) means the Minister of National Revenue for the purposes of this Act, (“ministre”)

“paid-up capital” has the meaning given to that expression by subsection 89 (1) of the Income Tax Act (Canada), but such meaning does not apply for the purposes of Part III of this Act, (“capital versé”)

“regulations” means regulations made under this Act, (“règlements”)

“tax payable”, by a corporation or other person under any Part of this Act by or under which provision is made for the assessment of tax, means the tax payable by the corporation or other person as fixed by assessment or reassessment, subject to variation on objection or appeal, if any, in accordance with sections 84 to 92, (“impôt payable”)

“taxable income” has the meaning given to that expression by section 7, (“revenu imposable”)

“taxable income earned in Canada” has the meaning given to that expression by section 8. (“revenu imposable gagné au Canada”) R.S.O. 1990, c. C.40, s. 1 (1); 1994, c. 14, s. 1 (1); 1996, c. 1, Sched. B, s. 1 (1); 1996, c. 29, s. 36 (1, 2); 1997, c. 43, Sched. A, s. 1 (1, 2); 1999, c. 9, s. 72; 2001, c. 23, s. 20; 2004, c. 16, s. 2 (2); 2008, c. 7, Sched. E, s. 1.

Definitions

(2) In this Act and in the application of the provisions of the Income Tax Act (Canada) that are by this Act made applicable for the purposes of this Act,

“bank” means a bank to which the Bank Act (Canada) applies; (“banque”)

“family farm corporation” means a corporation that is throughout the taxation year a corporation,

(a) all shares of the capital stock of which that confer on the holder thereof the right to vote were owned by,

(i) an individual ordinarily resident in Canada or by that individual and a member or members of that individual’s family ordinarily resident in Canada or by another family farm corporation, or

(ii) another corporation, all shares of the capital stock of which that confer on the holder thereof the right to vote were owned directly or indirectly by a person or persons referred to in subclause (i),

(b) 75 per cent of the assets of which were farming assets, and

(c) which carried on the business of farming in Ontario through the employment of a shareholder or a member of his or her family actually engaged in the operation of the farm or, where subclause (a) (ii) applies, through the employment of the person or persons referred to in subclause (a) (i); (“société agricole familiale”)

“family fishing corporation” means a corporation that is throughout the taxation year a corporation,

(a) all shares of the capital stock of which that confer on the holder thereof the right to vote were owned by,

(i) an individual ordinarily resident in Canada or by that individual and a member or members of that individual’s family ordinarily resident in Canada or by another family fishing corporation, or

(ii) another corporation, all shares of the capital stock of which that confer on the holder thereof the right to vote were owned directly or indirectly by a person or persons referred to in subclause (i),

(b) 75 per cent of the assets of which were fishing assets, and

(c) which carried on the business of fishing in Ontario through the employment of a shareholder or a member of his or her family actually engaged in the operation of the business or, where subclause (a) (ii) applies, through the employment of the person or persons referred to in subclause (a) (i); (“société de pêche familiale”)

“farming assets” of a family farm corporation means,

(a) cash, trade accounts receivable, supplies and inventory of commodities or things produced, raised or grown through farming,

(b) land, buildings, equipment, machinery, and livestock that are used chiefly in the operation of the farm by the corporation,

(c) any right or licence granted or issued under any Act of the Legislature that permits or regulates the production or sale of any commodity or thing produced, raised or grown through farming,

(d) the building in which a shareholder or member or members of his or her family reside who are engaged in the operation of the farm if that building is on land that is used or is contiguous to land used by that shareholder or member or members of his or her family in the operation of the farm,

(e) shares in another family farm corporation,

(f) a mortgage taken by the family farm corporation as security for the balance of the sale price on its sale of farming assets referred to in clause (b), provided that the amount of the aggregate of its remaining farming assets referred to in clauses (a) to (e) exceeds 50 per cent of its assets; (“actif agricole”)

“federal assessment action” means any of the following actions taken by the Minister of National Revenue under the Income Tax Act (Canada),

(a) an assessment, reassessment or additional assessment of tax, interest or penalties,

(b) a determination or redetermination of a loss or an amount or a written notice of a change in a loss or an amount,

(c) a written notice that no tax is payable, or

(d) a confirmation of an assessment, reassessment or additional assessment of tax, interest or penalties or of a determination or redetermination of a loss or an amount; (“mesure fiscale fédérale”)

“fishing assets” of a family fishing corporation means,

(a) cash, trade accounts receivable, supplies and inventory used in the fishing business,

(b) land, buildings, boats, ships, equipment, machinery and nets that are used chiefly in the operation of the fishing business by the corporation,

(c) any right or licence granted or issued under any Act of the Legislature that permits or regulates the catching or sale of fish, and

(d) shares in another family fishing corporation; (“actif de pêche”)

“jurisdiction” means a province or territory of Canada or a state outside Canada having sovereign power; (“autorité législative”)

“member of his or her family” means, with respect to an individual referred to in the definition of “family farm corporation” or “family fishing corporation” or in subclause 61 (5) (c) (i),

(a) his or her spouse or common-law partner,

(b) his or her child,

(c) his or her father, mother, grandfather or grandmother,

(d) his or her brother or sister or any lawful descendant of his or her brother or sister,

(e) the brother or sister of his or her father or mother or any lawful descendant of that uncle or aunt,

(f) the father or mother of his or her spouse or common-law partner,

(g) a brother or sister of his or her spouse or common-law partner or any lawful descendant of that brother or sister,

(h) the spouse or common-law partner of his or her child, or

(i) a person adopted by him or her under the Child, Youth and Family Services Act, 2017 or a predecessor of that Act or the spouse, common-law partner or any lawful descendant of that person; (“membre de sa famille”)

“permanent establishment” has the meaning given to that expression by section 4; (“établissement stable”)

“province” means a province as defined in subsection 35 (1) of the Interpretation Act (Canada); (“province”)

“return” means a tax return of a corporation or other person for a taxation year that meets the requirements of section 75 respecting the form and medium, the contents, the accompanying documents and the manner of delivery; (“déclaration”)

“taxation year”, of a person, means,

(a) a calendar year, if the person is an administrator of a benefit plan under section 74.2 and is not a corporation,

(b) a taxation year of the person for the purposes of the Income Tax Act (Canada), if the person is an insurance broker within the meaning of section 74.3 and is not a corporation, and

(c) a fiscal period for which the person’s statement of the...