Tax wiki
s. 190.1
PART VI — Tax on Capital of Financial Institutions · Calculation of Capital Tax
Tax payable
Not yet annotated · Text current to 2026-06-21 · section last amended 2022-12-15
Current text
Every corporation that is a financial institution at any time during a taxation year shall pay a tax under this Part for the year equal to 1.25% of the amount, if any, by which its taxable capital employed in Canada for the year exceeds its capital deduction for the year.
and (1.2) [Repealed, 2007, c. 2, s. 40]
Short taxation years
(2)Where a taxation year of a corporation is less than 51 weeks, the amount determined under subsection 190.1(1) for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of 365.
Deduction
(3)There may be deducted in computing a corporation’s tax payable under this Part for a taxation year an amount equal to the total of
the corporation’s tax payable under Parts I and VI.2 (determined in accordance with subsection 191.5(9)) for the year; and
such part as the corporation claims of its unused Part I tax credits and unused surtax credits for its 7 taxation years immediately before and its 3 taxation years immediately after the year.
and (d) [Repealed, 2007, c. 2, s. 40]
Idem
(4)For the purposes of this subsection and subsections 190.1(3), 190.1(5) and 190.1(6),
an amount may not be claimed under subsection 190.1(3) in computing a corporation’s tax payable under this Part for a particular taxation year
in respect of its unused Part I tax credit for another taxation year, until its unused Part I tax credits for taxation years preceding the other year that may be claimed under this Part for the particular year have been claimed, and
in respect of its unused surtax credit for another taxation year, until its unused surtax credits for taxation years preceding the other year that may be claimed under Part I.3 or this Part for the particular year have been claimed;
an amount may be claimed under subsection 190.1(3) in computing a corporation’s tax payable under this Part for a particular taxation year
in respect of its unused Part I tax credit for another taxation year, only to the extent that it exceeds the total of all amounts each of which is the amount claimed in respect of that unused Part I tax credit in computing its tax payable under this Part for a taxation year preceding the particular year, and
in respect of its unused surtax credit for another taxation year, only to the extent that it exceeds the total of all amounts each of which is the amount claimed in respect of the unused surtax credit
in computing its tax payable under this Part for a taxation year preceding the particular year, or
in computing its tax payable under Part I.3 for the particular year or a taxation year preceding the particular year; and
an amount may be claimed under paragraph (3)(b) in computing a corporation’s tax payable under this Part for a taxation year that ends before July 1, 2006 in respect of its unused Part I tax credit for a taxation year that ends after July 1, 2006 (referred to in this paragraph as the “credit taxation year”) only to the extent that the unused Part I tax credit exceeds the amount, if any, by which
the amount that would, if this Part were read as it applied to the 2005 taxation year, be the corporation’s tax payable under this Part for the credit taxation year
exceeds
the corporation’s tax payable under this Part for the credit taxation year.
Definitions
(5)For the purposes of subsections 190.1(3), 190.1(4) and 190.1(6),
unused Part I tax credit, of a corporation for a taxation year, means the amount, if any, by which
the corporation’s tax payable under Part I for the year
exceeds
the amount that would, but for subsection (3), be its tax payable under this Part for the year; (crédit d’impôt de la partie I inutilisé)
unused surtax credit of a corporation for a taxation year has the meaning assigned by subsection 181.1(6). (crédit de surtaxe inutilisé)
Acquisition of control
(6)Where at any time control of a corporation was acquired by a person or group of persons, no amount in respect of its unused Part I tax credit or unused surtax credit for a taxation year ending before that time is deductible by the corporation for a taxation year ending after the time and no amount in respect of its unused Part I tax credit or unused surtax credit for a taxation year ending after that time is deductible by the corporation for a taxation year ending before that time, except that
the corporation’s unused Part I tax credit and unused surtax credit for a particular taxation year that ended before that time is deductible by the corporation for a taxation year that ends after that time (in this paragraph referred to as the “subsequent year”) to the extent of that proportion of the corporation’s tax payable under Part I for the particular year that
the amount, if any, by which
the total of all amounts each of which is
its income under Part I for the particular year from a business that was carried on by the corporation for profit or with a reasonable expectation of profit throughout the subsequent year, or
where properties were sold, leased, rented or developed or services were rendered in the course of carrying on that business before that time, its income under Part I for the particular year from any other business all or substantially all of the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services
exceeds
the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or 111(1)(d) in computing its taxable income for the particular year in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of any business referred to in clause 190.1(6)(a)(i)(A)
is of the greater of
the amount determined under subparagraph 190.1(6)(a)(i), and
the corporation’s taxable income for the particular year; and
the corporation’s unused Part I tax credit and unused surtax credit for a particular taxation year that ends after that time is deductible by the corporation for a taxation year (in this paragraph referred to as the“preceding year”) that ended before that time to the extent of that proportion of the corporation’s tax payable under Part I for the particular year that
the amount, if any, by which
the total of all amounts each of which is
its income under Part I for the particular year from a business that was carried on by the corporation in the preceding year and throughout the particular year for profit or with a reasonable expectation of profit, or
where properties were sold, leased, rented or developed or services were rendered in the course of carrying on that business before that time, its income under Part I for the particular year from any other business all or substantially all of the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services
exceeds
the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or 111(1)(d) in computing its taxable income for the particular year in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of any business referred to in clause 190.1(6)(b)(i)(A)
is of the greater of
the amount determined under subparagraph 190.1(6)(b)(i), and
the corporation’s taxable income for the particular year.
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2013-06-26 to 2022-12-14:
Show the text in force 2013-06-26 to 2022-12-14
Tax payable
190.1 (1) Every corporation that is a financial institution at any time during a taxation year shall pay a tax under this Part for the year equal to 1.25% of the amount, if any, by which its taxable capital employed in Canada for the year exceeds its capital deduction for the year.
(1.1) and (1.2) [Repealed, 2007, c. 2, s. 40]
Short taxation years
(2) Where a taxation year of a corporation is less than 51 weeks, the amount determined under subsection 190.1(1) for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of 365.
Deduction
(3) There may be deducted in computing a corporation’s tax payable under this Part for a taxation year an amount equal to the total of
(a) the corporation’s tax payable under Part I for the year; and
(b) such part as the corporation claims of its unused Part I tax credits and unused surtax credits for its 7 taxation years immediately before and its 3 taxation years immediately after the year.
(c) and (d) [Repealed, 2007, c. 2, s. 40]
Idem
(4) For the purposes of this subsection and subsections 190.1(3), 190.1(5) and 190.1(6),
(a) an amount may not be claimed under subsection 190.1(3) in computing a corporation’s tax payable under this Part for a particular taxation year
(i) in respect of its unused Part I tax credit for another taxation year, until its unused Part I tax credits for taxation years preceding the other year that may be claimed under this Part for the particular year have been claimed, and
(ii) in respect of its unused surtax credit for another taxation year, until its unused surtax credits for taxation years preceding the other year that may be claimed under Part I.3 or this Part for the particular year have been claimed;
(b) an amount may be claimed under subsection 190.1(3) in computing a corporation’s tax payable under this Part for a particular taxation year
(i) in respect of its unused Part I tax credit for another taxation year, only to the extent that it exceeds the total of all amounts each of which is the amount claimed in respect of that unused Part I tax credit in computing its tax payable under this Part for a taxation year preceding the particular year, and
(ii) in respect of its unused surtax credit for another taxation year, only to the extent that it exceeds the total of all amounts each of which is the amount claimed in respect of the unused surtax credit
(A) in computing its tax payable under this Part for a taxation year preceding the particular year, or
(B) in computing its tax payable under Part I.3 for the particular year or a taxation year preceding the particular year; and
(c) an amount may be claimed under paragraph (3)(b) in computing a corporation’s tax payable under this Part for a taxation year that ends before July 1, 2006 in respect of its unused Part I tax credit for a taxation year that ends after July 1, 2006 (referred to in this paragraph as the “credit taxation year”) only to the extent that the unused Part I tax credit exceeds the amount, if any, by which
(i) the amount that would, if this Part were read as it applied to the 2005 taxation year, be the corporation’s tax payable under this Part for the credit taxation year
exceeds
(ii) the corporation’s tax payable under this Part for the credit taxation year.
Definitions
(5) For the purposes of subsections 190.1(3), 190.1(4) and 190.1(6),
unused Part I tax creditunused Part I tax credit, of a corporation for a taxation year, means the amount, if any, by which
(a) the corporation’s tax payable under Part I for the year
exceeds
(b) the amount that would, but for subsection (3), be its tax payable under this Part for the year; (crédit d’impôt de la partie I inutilisé)
unused surtax credit of a corporation for a taxation year has the meaning assigned by subsection 181.1(6). (crédit de surtaxe inutilisé)
Acquisition of control
(6) Where at any time control of a corporation was acquired by a person or group of persons, no amount in respect of its unused Part I tax credit or unused surtax credit for a taxation year ending before that time is deductible by the corporation for a taxation year ending after the time and no amount in respect of its unused Part I tax credit or unused surtax credit for a taxation year ending after that time is deductible by the corporation for a taxation year ending before that time, except that
(a) the corporation’s unused Part I tax credit and unused surtax credit for a particular taxation year that ended before that time is deductible by the corporation for a taxation year that ends after that time (in this paragraph referred to as the “subsequent year”) to the extent of that proportion of the corporation’s tax payable under Part I for the particular year that
(i) the amount, if any, by which
(A) the total of all amounts each of which is
(I) its income under Part I for the particular year from a business that was carried on by the corporation for profit or with a reasonable expectation of profit throughout the subsequent year, or
(II) where properties were sold, leased, rented or developed or services were rendered in the course of carrying on that business before that time, its income under Part I for the particular year from any other business all or substantially all of the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services
exceeds
(B) the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or 111(1)(d) in computing its taxable income for the particular year in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of any business referred to in clause 190.1(6)(a)(i)(A)
is of the greater of
(ii) the amount determined under subparagraph 190.1(6)(a)(i), and
(iii) the corporation’s taxable income for the particular year; and
(b) the corporation’s unused Part I tax credit and unused surtax credit for a particular taxation year that ends after that time is deductible by the corporation for a taxation year (in this paragraph referred to as the“preceding year”) that ended before that time to the extent of that proportion of the corporation’s tax payable under Part I for the particular year that
(i) the amount, if any, by which
(A) the total of all amounts each of which is
(I) its income under Part I for the particular year from a business that was carried on by the corporation in the preceding year and throughout the particular year for profit or with a reasonable expectation of profit, or
(II) where properties were sold, leased, rented or developed or services were rendered in the course of carrying on that business before that time, its income under Part I for the particular year from any other business all or substantially all of the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services
exceeds
(B) the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or 111(1)(d) in computing its taxable income for the particular year in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of any business referred to in clause 190.1(6)(b)(i)(A)
is of the greater of
(ii) the amount determined under subparagraph 190.1(6)(b)(i), and
(iii) the corporation’s taxable income for the particular year.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 190.1
- 1994, c. 7, Sch. VIII, s. 111, c. 21, s. 87
- 1996, c. 21, s. 49
- 1997, c. 25, s. 53
- 1998, c. 19, ss. 48, 202
- 1999, c. 22, s. 68
- 2000, c. 19, s. 53
- 2001, c. 17, s. 165
- 2007, c. 2, s. 40
- 2013, c. 34, s. 329
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 190.1 links to the one before it.
Enacting and amending legislation
- R.S., 1985, c. 1 (5th Supp.), s. 190.1; 1994, c. 7, Sch. VIII, s. 111, c. 21, s. 87; 1996, c. 21, s. 49; 1997, c. 25, s. 53; 1998, c. 19, ss. 48, 202; 1999, c. 22, s. 68; 2000, c. 19, s. 53; 2001, c. 17, s. 165; 2007, c. 2, s. 40; 2013, c. 34, s. 329
- 2022, c. 19, s. 46
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
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 190.1.