Marginal note:Definitions
126.1 (1) In this section,
1992 cumulative premium base
base des cotisations cumulatives pour 1992
1992 cumulative premium base of an employer on any particular day means the total of all qualifying employer premiums of the employer for the period beginning on January 1, 1992 and ending on the day that is 365 days earlier than the particular day that became payable on or before the last day of that period; (base des cotisations cumulatives pour 1992)
1992 premium base
base des cotisations pour 1992
1992 premium base of an employer means the total of all qualifying employer premiums for 1992 of the employer; (base des cotisations pour 1992)
1993 cumulative premium base
base des cotisations cumulatives pour 1993
1993 cumulative premium base of an employer on any particular day means the total of all qualifying employer premiums of the employer for the period beginning on January 1, 1993 and ending on the particular day that became payable on or before the last day of that period; (base des cotisations cumulatives pour 1993)
1993 premium base
base des cotisations pour 1993
1993 premium base of an employer means the total of all qualifying employer premiums for 1993 of the employer; (base des cotisations pour 1993)
employer
employeur
employer at any time means any person or partnership (other than a person who at that time is exempt because of any of paragraphs 149(1)(a) to 149(1)(d), 149(1)(h.1), (o) to (o.2), (o.4) to (s) and (u) to (y) from tax under this Part on all or part of the person’s taxable income) that has a qualifying employee in 1992 or 1993; (employeur)
qualifying employee
employé admissible
qualifying employee of an employer means,
(a) where the employer is not exempt because of subsection 149(1) from tax under this Part on all or part of the employer’s taxable income,
(i) any employee of the employer, other than any employee whose remuneration is not deductible in computing income from a business or property, and
(ii) any person in respect of whom the employer is deemed under any regulation under the Unemployment Insurance Act to be an employer for the purpose of determining an employer’s UI premium, and
(b) in any other case, any employee of the employer; (employé admissible)
qualifying employer premium
cotisation patronale admissible
qualifying employer premium for a period of an employer means that portion of the employer’s UI premium that can reasonably be attributed to the remuneration paid in the period to qualifying employees of the employer; (cotisation patronale admissible)
remittance date
date de versement
remittance date for 1993 of an employer means the day prescribed under the Unemployment Insurance Act on or before which the employer is required to remit a UI premium in respect of remuneration paid in 1993; (date de versement)
UI premium
cotisation d’assurance-chômage
UI premium of an employer means a premium under subsection 51(2) of the Unemployment Insurance Act payable,
(a) where the employer is a partnership, by the members of the partnership in respect of remuneration paid by the partnership to employees of the partnership, and
(b) in any other case, by the employer. (cotisation d’assurance-chômage)
Marginal note:Associated employers
(2) For the purpose of this section,
(a) employers that are corporations that are associated with each other at any time shall be deemed to be employers that are associated with each other at that time; and
(b) where 2 employers
(i) would, but for this paragraph, not be associated with each other at any time, and
(ii) are associated, or are deemed by this subsection to be associated, with another corporation at that time,
they shall be deemed to be associated with each other at that time.
Marginal note:Idem
(3) In determining for the purpose of this section whether 2 or more employers are associated with each other at any time, and in determining whether an employer is at any time a specified employer in relation to another employer,
(a) where an employer at any time is an individual, the employer shall be deemed at that time to be a corporation all the issued shares of the capital stock of which, having full voting rights under all circumstances, are owned by the individual; and
(b) where an employer at any time is a partnership,
(i) the employer shall be deemed at that time to be a corporation having one class of issued shares, which shares have full voting rights under all circumstances, and
(ii) each member of the partnership shall be deemed to own at that time the greatest proportion of the number of issued shares of the capital stock of the corporation that
(A) the member’s share of the income or loss of the partnership from any source for the fiscal period of the partnership that includes that time
is of
(B) the income or loss of the partnership from that source for that period
and for the purpose of this paragraph, where the income and loss of the partnership from any source for that period are nil, that proportion shall be computed as if the partnership had income from that source for that period in the amount of $1,000,000.
Marginal note:Business carried on by another employer
(4) Where at any time before 1994 an employer (referred to in this subsection and subsection 126.1(5) as the “successor”) carries on, as a separate business or as part of another business, a business or part of a business that was carried on at any earlier time after 1991 by a specified employer in relation to the successor (which business or part of a business is referred to in this subsection as the “specified business”), in determining
(a) the UI premium tax credit of the specified employer and the successor, and
(b) each amount that is or would, but for subsection 126.1(13), be deemed by subsection 126.1(12) to be paid to the specified employer or the successor at any time after the successor began to carry on the specified business,
that portion of the qualifying employer premiums for any period of the specified employer that can reasonably be considered to relate to the specified business shall be deemed not to be qualifying employer premiums for the period of the specified employer and to be qualifying employer premiums for the period of the successor.
Definition of specified employer
(5) For the purposes of subsection 126.1(4), specified employer at any time in relation to a successor means any particular employer with whom the successor at that time is not or would not be dealing at arm’s length if,
(a) where the particular employer ceased to exist before that time, the particular employer were in existence at that time, and
(b) the particular employer were controlled at that time by each person or group of persons who at any time in 1992 or 1993 controlled the particular employer,
except that a particular employer is not a specified employer in relation to a successor where the successor is, for the purposes of this section, deemed by paragraph 87(2)(mm) or 88(1)(e.2) to be a continuation of, and the same corporation as, the particular employer.
Marginal note:UI premium tax credit
(6) Where an employer (other than a partnership) files with the Minister a prescribed form containing prescribed information, an overpayment on account of the employer’s liability under this Part for the employer’s last taxation year beginning before 1994 equal to the employer’s UI premium tax credit shall be deemed to have arisen on the later of March 1, 1994 and the day on which the form is so filed.
Marginal note:Idem
(7) Where a member of a partnership, acting on behalf of all of the members of the partnership, files with the Minister a prescribed form containing prescribed information, an overpayment on account of each taxpayer’s liability under this Part for the taxpayer’s last taxation year beginning before 1994 equal to that portion of the partnership’s UI premium tax credit that can reasonably be considered to be the taxpayer’s share thereof shall be deemed to have arisen on the later of March 1, 1994 and the day on which the form is so filed.
Definition of UI premium tax credit
(8) For the purposes of this section, an employer’s UI premium tax credit is the lesser of
(a) the amount, if any, by which $30,000 exceeds the amount, if any, by which the employer’s 1992 premium base exceeds $30,000, and
(b) the amount, if any, by which the employer’s 1993 premium base exceeds the employer’s 1992 premium base,
unless the employer is associated at the end of 1993 with any other employer, in which case, subject to subsection 126.1(11), the employer’s UI premium tax credit is nil.
Marginal note:Allocation by associated employers
(9) An employer that is a member of a group of employers that are associated with each other at the end of 1993 (referred to in this subsection and in subsections 126.1(10) and 126.1(11) as “associated employers”) may file with the Minister an agreement in prescribed form on behalf of the associated employers allocating among them an amount not exceeding the lesser of
(a) the amount, if any, by which $30,000 exceeds the amount, if any, by which the total of the 1992 premium bases of all of the associated employers exceeds $30,000, and
(b) the amount, if any, by which
(i) the total of the 1993 premium bases of all of the associated employers
exceeds
(ii) the total of the 1992 premium bases of all of the associated employers.
Marginal note:Allocation by the Minister
(10) The Minister may request any of the associated employers to file with the Minister an agreement referred to in subsection 126.1(9) and, where the employer does not file the agreement within 30 days after receiving the request, the Minister may allocate among them an amount not exceeding the lesser of the amounts determined under paragraphs 126.1(9)(a) and 126.1(9)(b).
Marginal note:UI premium tax credit — associated employers
(11) For the purposes of this section, the least amount allocated to an associated employer under an agreement described in subsection 126.1(9) or the amount allocated to the employer by the Minister under subsection 126.1(10), as the case may be, is the UI premium tax credit of the employer.
Marginal note:Prepayment of UI premium tax credit
(12) Where before March 1994 an employer or, where the employer is a partnership, any member of the partnership acting on behalf of all of the members of the partnership, files with the Minister a prescribed form containing prescribed information, the Minister shall, subject to subsection 126.1(13), be deemed to have paid to the employer on account of the overpayment determined under subsection 126.1(6) in respect of the employer, and the employer shall be deemed, for the purpose of paragraph 12(1)(x), to have received and, for the purposes of the Unemployment Insurance Act and regulations made under it, to have remitted to the Receiver General on account of the employer’s UI premium, on each remittance date for 1993, an amount that is equal to,
(a) where the employer was not associated with any other employer on the remittance date, the lesser of
(i) the amount, if any, by which the lesser of
(A) the amount, if any, by which $30,000 exceeds the amount, if any, by which the 1992 premium base of the employer exceeds $30,000, and
(B) the amount, if any, by which
(I) the 1993 cumulative premium base of the employer on the remittance date
exceeds
(II) the 1992 cumulative premium base of the employer on the remittance date
exceeds the total of all amounts deemed or that would, but for subsection 126.1(13), be deemed by this subsection to have been paid to the employer before the remittance date, and
(ii) the amount determined by the formula
A - (B + C)
where
- A
- is the total of all UI premiums of the employer payable on or before the remittance date that can reasonably be attributed to remuneration paid in the period beginning on January 1, 1993 and ending on the remittance date,
- B
- is the total of all amounts (determined without reference to this subsection) remitted by the employer to the Receiver General on or before the remittance date on account of the UI premiums referred to in the description of A, and
- C
- is the total of all amounts deemed or that would, but for subsection 126.1(13), be deemed by this subsection to have been paid to the employer before the remittance date; and
(b) where the employer (in this paragraph referred to as the “particular employer”) was associated on the remittance date with any other employer (in this paragraph referred to as an “associated employer”), the lesser of
(i) the amount that would be determined under paragraph 126.1(12)(a) in respect of the particular employer on the remittance date if the particular employer were not associated on the remittance date with any other employer, and
(ii) the amount, if any, by which the lesser of
(A) the amount, if any, by which $30,000 exceeds the amount, if any, by which the total of the 1992 premium bases of the particular employer and all associated employers exceeds $30,000, and
(B) the amount, if any, by which
(I) the total of all amounts each of which is the 1993 cumulative premium base of the particular employer or an associated employer on the remittance date
exceeds
(II) the total of all amounts each of which is the 1992 cumulative premium base of the particular employer or an associated employer on the remittance date
exceeds the total of
(C) all amounts each of which is an amount deemed or that would, but for subsection 126.1(13), be deemed by this subsection to have been paid to the particular employer or an associated employer before the remittance date, and
(D) all amounts each of which is an amount that would be determined under subparagraph 126.1(12)(a)(ii) in respect of an associated employer on the remittance date if the associated employer were not associated on that date with any other employer.
Marginal note:Idem
(13) Where an amount would, but for this subsection, be deemed by subsection 126.1(12) to be paid at any time to a partnership, that portion of the amount that can reasonably be considered to be a taxpayer’s share of it shall be deemed not to have been paid to the partnership and to have been paid at that time by the Minister to the taxpayer on account of the overpayment determined under subsection 126.1(7) in respect of the taxpayer.
Marginal note:Excess prepayment
(14) Where the total of all amounts paid under subsection 126.1(12) to a taxpayer exceeds the taxpayer’s UI premium tax credit, the excess shall be deemed to have been refunded to the taxpayer, on the taxpayer’s last remittance date for 1993, on account of the taxpayer’s liability under this Part for the taxpayer’s last taxation year beginning before 1994.
Marginal note:Idem
(15) Where the total of all amounts paid under subsection 126.1(13) to a taxpayer in respect of a partnership exceeds that portion of the partnership’s UI premium tax credit that can reasonably be considered to be the taxpayer’s share of it, the excess shall be deemed to have been refunded to the taxpayer, on the partnership’s last remittance date for 1993, on account of the taxpayer’s liability under this Part for the taxpayer’s last taxation year beginning before 1994.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1994, c. 8, s. 14
- Date modified: