Tax wiki
s. 191.5

PART VI.2 — Canada Recovery Dividend

Definition

Not yet annotated · Text current to 2026-06-21 · section last amended 2022-12-15

Current text

(1)

The following definition applies in this Part.

bank or life insurer group member means a corporation that is

(a)

a bank;

(b)

a life insurance corporation that carries on business in Canada; or

(c)

a financial institution (as defined in subsection 190(1)) that is related to any corporation described in paragraph (a) or (b). (membre d’un groupe de banques ou d’assureurs-vie)

Tax payable

(2)

Every corporation that is a bank or life insurer group member at any time during a 2021 taxation year shall pay a tax under this Part for its 2022 taxation year equal to the amount determined by the formula

0.15 [(A ÷ 2) − B]

where

is the corporation’s total taxable income (or taxable income earned in Canada if the corporation is non-resident) for

(a)

2020 taxation years of the corporation, determined under Part I, without regard to paragraphs 111(1)(a) and (b), and

(b)

2021 taxation years of the corporation, determined under Part I, without regard to paragraphs 111(1)(a) and (b); and

(a)

if the corporation is not related to another bank or life insurer group member at the end of each 2021 taxation year of the corporation, $1 billion, and

(b)

in any other case, the amount determined under subsection (7).

Multiple 2022 taxation years

(3)

If a corporation has more than one 2022 taxation year, the latest 2022 taxation year is the 2022 taxation year for the purposes of subsection (2).

Multiple 2020 and 2021 taxation years

(4)

For the purposes of subsection (2),

(a)

if a corporation has more than one 2020 taxation year and the aggregate number of days in all its 2020 taxation years is greater than 365 days, the amount determined for the corporation under paragraph (a) of the description of A in subsection (2) shall be reduced to that proportion of that amount that 365 is of the aggregate number of days in all 2020 taxation years; and

(b)

if a corporation has more than one 2021 taxation year and the aggregate number of days in all its 2021 taxation years is greater than 365 days, the amount determined for the corporation under paragraph (b) of the description of A in subsection (2) shall be reduced to that proportion of that amount that 365 is of the aggregate number of days in all 2021 taxation years.

Related group

(5)

A corporation that is described in paragraph (a) or (b) of the definition bank or life insurer group member in subsection (1) at any time during a 2021 taxation year and that was related to any other bank or life insurer group member at the end of the year (in this section, the corporation and each such bank or life insurer group member are referred to together as a “related group”) may file with the Minister an agreement in prescribed form, with the prescribed form referred to in subsection (8), on behalf of the related group under which an amount that does not exceed $1 billion is allocated among the members of the related group for the taxation year.

Allocation by Minister

(6)

The Minister may request a corporation that is member of a related group at any time during the 2021 taxation year to file with the Minister an agreement referred to in subsection (5) and, if the corporation does not file the agreement within 30 days after receiving the request, the Minister may allocate the amount referred to in subsection (5) among the members of the related group for the taxation year.

Allocation

(7)

For the purposes of this Part, the least amount allocated for the taxation year to each bank or life insurer group member under an agreement described in subsection (5) or by the Minister under subsection (6) is the amount determined for B in subsection (2) for the taxation year of that member, but, if no such allocation is made, the amount determined for B in subsection (2) of each bank and life insurer group member for the year is nil.

Return

(8)

A corporation that is a bank or life insurer group member shall file with the Minister, no later than the day on or before which the corporation is required by section 150 to file its return of income for the 2022 taxation year under Part I, a prescribed form containing prescribed information.

Instalments

(9)

A corporation liable to pay tax for the 2022 taxation year under this Part shall pay 1/5 of the tax to the Receiver General on or before its balance-due day for the 2022 and each of the four subsequent taxation years.

Source: Justice Laws Website. Not an official version.

Historic text

This section has not been amended since it was enacted (2022, c. 19, s. 48), so there is no earlier version.

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 191.5 links to the one before it.

Enacting and amending legislation

2022, c. 19, s. 48

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. 111 s. 150 s. 190

Referred to in

s. 161 s. 190.1

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. 191.5.