Tax wiki
s. 124
PART I — Income Tax · DIVISION E — Computation of Tax · SUBDIVISION B — Rules Applicable to Corporations · Additional Tax on Banks and Life Insurers
Deduction from corporation tax
Not yet annotated · Text current to 2026-06-21 · section last amended 2004-08-31
Current text
There may be deducted from the tax otherwise payable by a corporation under this Part for a taxation year an amount equal to 10% of the corporation’s taxable income earned in the year in a province.
Crown agents
(3)Notwithstanding subsection 124(1), no deduction may be made under this section from the tax otherwise payable under this Part for a taxation year by a corporation in respect of any taxable income of the corporation for the year that is not, because of an Act of Parliament, subject to tax under this Part or by a prescribed federal Crown corporation that is an agent of Her Majesty.
Definitions
(4)In this section,
province includes the Newfoundland offshore area and the Nova Scotia offshore area; (province)
taxable income earned in the year in a province means the amount determined under rules prescribed for the purpose by regulations made on the recommendation of the Minister of Finance. (revenu imposable gagné au cours de l’année dans une province)
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 124 links to the one before it.
Enacting and amending legislation
- R.S., 1985, c. 1 (5th Supp.), s. 124; 1994, c. 7, Sch. VIII, s. 62
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. 124.