Tax wiki
s. 123.3
PART I — Income Tax · DIVISION E — Computation of Tax · SUBDIVISION B — Rules Applicable to Corporations
Refundable tax — CCPC or substantive CCPC
Not yet annotated · Text current to 2026-06-21 · section last amended 2024-06-20
Current text
There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation that is a Canadian-controlled private corporation throughout the year — or a substantive CCPC at any time in the year — an amount equal to 10 2/3% of the lesser of
the corporation’s aggregate investment income for the year (within the meaning assigned by subsection 129(4)), and
the amount, if any, by which its taxable income for the year exceeds the least of the amounts determined in respect of it for the year under paragraphs 125(1)(a) to (c).
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2016-12-15 to 2024-06-19:
Show the text in force 2016-12-15 to 2024-06-19
Refundable tax on CCPC’s investment income
123.3 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation that is throughout the year a Canadian-controlled private corporation an amount equal to 10 2/3% of the lesser of
(a) the corporation’s aggregate investment income for the year (within the meaning assigned by subsection 129(4)), and
(b) the amount, if any, by which its taxable income for the year exceeds the least of the amounts determined in respect of it for the year under paragraphs 125(1)(a) to (c).
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1996, c. 21, s. 25
- 2016, c. 11, s. 6
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 123.3 links to the one before it.
Enacting and amending legislation
- 1996, c. 21, s. 25; 2016, c. 11, s. 6
- 2024, c. 15, s. 31
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. 123.3.