Income Tax Act

Marginal note:Tax imposed

• 211.91 (1) Every corporation shall pay a tax under this Part in respect of each month (other than January) in a calendar year equal to the amount determined by the formula

  (A + B/2 - C - D/2) × (E/12 + F/10)

  where

  A

  is the total of all amounts each of which is an amount that the corporation purported to renounce in the year under subsection 66(12.6) or 66(12.601) because of the application of subsection 66(12.66) (other than an amount purported to be renounced in respect of expenses incurred or to be incurred in connection with production or potential production in a province where a tax, similar to the tax provided under this Part, is payable by the corporation under the laws of the province as a consequence of the failure to incur the expenses that were purported to be renounced);

  B

  is the total of all amounts each of which is an amount that the corporation purported to renounce in the year under subsection 66(12.6) or 66(12.601) because of the application of subsection 66(12.66) and that is not included in the value of A;

  C

  is the total of all expenses described in paragraph 66(12.66)(b) that are

  • (a) made or incurred by the end of the month by the corporation, and

  • (b) in respect of the purported renunciations in respect of which an amount is included in the value of A;

  D

  is the total of all expenses described in paragraph 66(12.66)(b) that are

  • (a) made or incurred by the end of the month by the corporation, and

  • (b) in respect of the purported renunciations in respect of which an amount is included in the value of B;

  E

  is the rate of interest prescribed for the purpose of subsection 164(3) for the month; and

  F

  is

  • (a) one, where the month is December, and

  • (b) nil, in any other case.

• Marginal note:Return and payment of tax

  (2) A corporation liable to tax under this Part in respect of one or more months in a calendar year shall, before March of the following calendar year,

  • (a) file with the Minister a return for the year under this Part in prescribed form containing an estimate of the tax payable under this Part by it in respect of each month in the year; and

  • (b) pay to the Receiver General the amount of tax payable under this Part by it in respect of each month in the year.

• Marginal note:COVID-19 – expenses deemed incurred earlier

  (2.1) If an agreement referred to in subsection 66(12.66) was made in 2019 or 2020,

  • (a) the reference in subsection (2) to “the following calendar year” is to be read as a reference to “the second following calendar year”; and

  • (b) for the purposes of this section and, where subparagraph (iii) applies, paragraph 66(12.66)(a), Canadian exploration expenses incurred by a corporation in respect of the agreement in a particular month in a calendar year are deemed to have been incurred

    • (i) in January 2020, if the expenses were incurred in 2020 and the agreement was entered into in 2019,

    • (ii) in January 2021, if the expenses were incurred in 2021 and the agreement was entered into in 2020, and

    • (iii) 12 months earlier, in any other case.

• Marginal note:Provisions applicable to Part

  (3) Subsections 150(2) and 150(3), sections 152, 158 and 159, subsections 161(1) and 161(11), sections 162 to 167 and Division J of Part I apply to this Part, with any modifications that the circumstances require.