Tax wiki
s. 204.6
PART X.2 — Tax in Respect of Registered Investments
Tax payable
Not yet annotated · Text current to 2026-06-21 · section last amended 2023-04-01
Current text
If at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(b), (d) or (f) holds property that is not a prescribed investment for that taxpayer, it shall, in respect of that month, pay a tax under this Part equal to the total of all amounts each of which is an amount determined in respect of such a property by the formula
0.01(A × B ÷ C)
where
is the fair market value of the property at the time of its acquisition by the taxpayer;
is the total number of units or shares of the capital stock of the registered investment held at the end of the month by one or more
trusts that are governed by any of a FHSA, RDSP, RESP, RRIF, RRSP, TFSA or deferred profit sharing plan, or
registered investments described in paragraph 204.4(2)(b), (d) or (f); and
is the total number of issued units or issued and outstanding shares of the capital stock of the registered investment at the end of the month.
Tax payable
(2)Where at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(a) or (b) holds property that is a share, bond, mortgage, hypothecary claim or other security of a corporation or debtor (other than bonds, mortgages, hypothecary claims and other securities of or guaranteed by Her Majesty in right of Canada or a province or Canadian municipality), it shall, in respect of that month, pay a tax under this Part equal to 1% of the amount, if any, by which
the total of all amounts each of which is the fair market value of such a property at the time of its acquisition
exceeds
10% of the amount by which
the total of all amounts each of which is the fair market value, at the time of acquisition, of one of its properties
exceeds
the total of all amounts each of which is an amount owing by the trust at the end of the month in respect of the acquisition of real property or immovables.
Tax payable — real property or immovables
(3)If at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(a) holds real or immovable property, it shall, in respect of that month, pay a tax under this Part equal to 1% of the total of all amounts each of which is the amount by which the excess of
the fair market value at the time of its acquisition of any one real or immovable property of the taxpayer
over
the total of all amounts each of which was an amount owing by it at the end of the month on account of its acquisition of the real or immovable property
was greater than 10% of the amount by which the total of all amounts each of which is the fair market value at the time of its acquisition of a property held by it at the end of the month exceeds the total of all amounts each of which was an amount owing by it at the end of the month on account of its acquisition of real or immovable property.
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2022-12-15 to 2023-03-31:
Show the text in force 2022-12-15 to 2023-03-31
Tax payable
204.6 (1) If at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(b), (d) or (f) holds property that is not a prescribed investment for that taxpayer, it shall, in respect of that month, pay a tax under this Part equal to the total of all amounts each of which is an amount determined in respect of such a property by the formula
0.01(A × B ÷ C)
where
Ais the fair market value of the property at the time of its acquisition by the taxpayer;Bis the total number of units or shares of the capital stock of the registered investment held at the end of the month by one or more(a) trusts that are governed by any of a RDSP, RESP, RRIF, RRSP, TFSA or deferred profit sharing plan, or
(b) registered investments described in paragraph 204.4(2)(b), (d) or (f); and
Tax payable
(2) Where at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(a) or (b) holds property that is a share, bond, mortgage, hypothecary claim or other security of a corporation or debtor (other than bonds, mortgages, hypothecary claims and other securities of or guaranteed by Her Majesty in right of Canada or a province or Canadian municipality), it shall, in respect of that month, pay a tax under this Part equal to 1% of the amount, if any, by which
(a) the total of all amounts each of which is the fair market value of such a property at the time of its acquisition
exceeds
(b) 10% of the amount by which
(i) the total of all amounts each of which is the fair market value, at the time of acquisition, of one of its properties
exceeds
(ii) the total of all amounts each of which is an amount owing by the trust at the end of the month in respect of the acquisition of real property or immovables.
Tax payable — real property or immovables
(3) If at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(a) holds real or immovable property, it shall, in respect of that month, pay a tax under this Part equal to 1% of the total of all amounts each of which is the amount by which the excess of
(a) the fair market value at the time of its acquisition of any one real or immovable property of the taxpayer
over
(b) the total of all amounts each of which was an amount owing by it at the end of the month on account of its acquisition of the real or immovable property
was greater than 10% of the amount by which the total of all amounts each of which is the fair market value at the time of its acquisition of a property held by it at the end of the month exceeds the total of all amounts each of which was an amount owing by it at the end of the month on account of its acquisition of real or immovable property.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 204.6
- 2001, c. 17, s. 225
- 2013, c. 34, s. 155
- 2022, c. 19, s. 49
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 204.6 links to the one before it.
Enacting and amending legislation
- R.S., 1985, c. 1 (5th Supp.), s. 204.6; 2001, c. 17, s. 225; 2013, c. 34, s. 155
- 2022, c. 19, s. 49
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. 204.6.