Tax wiki
s. 127.41

PART I — Income Tax · DIVISION E — Computation of Tax · SUBDIVISION C — Rules Applicable to all Taxpayers

Part XII.4 tax credit

Not yet annotated · Text current to 2026-06-21 · section last amended 2004-08-31

Current text

(1)

In this section, the Part XII.4 tax credit of a taxpayer for a particular taxation year means the total of

(a)

all amounts each of which is an amount determined by the formula

A × B/C

where

is the tax payable under Part XII.4 by a qualifying environmental trust for a taxation year (in this paragraph referred to as the “trust’s year”) that ends in the particular year,

is the amount, if any, by which the total of all amounts in respect of the trust that were included (otherwise than because of being a member of a partnership) because of the application of subsection 107.3(1) in computing the taxpayer’s income for the particular year exceeds the total of all amounts in respect of the trust that were deducted (otherwise than because of being a member of a partnership) because of the application of subsection 107.3(1) in computing that income, and

is the trust’s income for the trust’s year, computed without reference to subsections 104(4) to 104(31) and sections 105 to 107, and

(b)

in respect of each partnership of which the taxpayer was a member, the total of all amounts each of which is the amount that can reasonably be considered to be the taxpayer’s share of the relevant credit in respect of the partnership and, for this purpose, the relevant credit in respect of a partnership is the amount that would, if a partnership were a person and its fiscal period were its taxation year, be the Part XII.4 tax credit of the partnership for its taxation year that ends in the particular year.

Reduction of Part I tax

(2)

There may be deducted from a taxpayer’s tax otherwise payable under this Part for a taxation year such amount as the taxpayer claims not exceeding the taxpayer’s Part XII.4 tax credit for the year.

Deemed payment of Part I tax

(3)

There is deemed to have been paid on account of the tax payable under this Part by a taxpayer (other than a taxpayer exempt from such tax) for a taxation year on the taxpayer’s balance-due day for the year, such amount as the taxpayer claims not exceeding the amount, if any, by which

(a)

the taxpayer’s Part XII.4 tax credit for the year

exceeds

(b)

the amount deducted under subsection 127.41(2) in computing the taxpayer’s tax payable under this Part for the year.

Source: Justice Laws Website. Not an official version.

Historic text

This section has not been amended since the start of the point-in-time record on 31 August 2004.

Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 127.41 links to the one before it.

Enacting and amending legislation

1995, c. 3, s. 39; 1997, c. 25, s. 38; 1998, c. 19, ss. 34, 148

Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.

Cross-references

This section refers to

s. 104 s. 105 s. 107.3

Referred to in

s. 163

References are generated from the statutory text and list other sections of the Act only.

Citation

Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 127.41.