PART X — Taxes on Deferred Profit Sharing Plans and Revoked Plans

Tax on initial non-qualified investments not disposed of

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

Current text

Every trust governed by a deferred profit sharing plan or revoked plan shall pay a tax

(a)

for 1967, equal to the amount, if any, by which 20% of the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1968;

(b)

for 1968, equal to the amount, if any, by which 40% of the initial base of the trust exceeds the total of

(i)

the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1969, and

(ii)

the tax payable by the trust determined under paragraph 199(1)(a);

(c)

for 1969, equal to the amount, if any, by which 60% of the initial base of the trust exceeds the total of

(i)

the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1970, and

(ii)

the tax payable by the trust determined under paragraphs 199(1)(a) and 199(1)(b); and

(d)

for 1970, equal to the amount, if any, by which 100% of the initial base of the trust exceeds the total of

(i)

the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1971, and

(ii)

the tax payable by the trust determined under paragraphs 199(1)(a), 199(1)(b) and 199(1)(c).

Refund

(2)

Where at the end of a year,

(a)

the total of all taxes paid by a trust under subsection 199(1)

exceeds

(b)

the total of

(i)

all refunds made to the trust under this subsection, and

(ii)

the amount, if any, by which the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before the end of the year,

the trust is, on application in accordance with section 202, entitled to a refund equal to the amount by which the total described in paragraph 199(2)(a) exceeds the total described in paragraph 199(2)(b).

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 199 links to the one before it.

Enacting and amending legislation

1970-71-72, c. 63, s. 1“199”

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. 202

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. 199.