Bill C-28
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(3) Subsections (1) and (2) apply after
1997.
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47. (1) Subsection 180(1) of the Act is
amended by striking out the word ``or'' at
the end of paragraph (c) and by adding the
following after paragraph (c):
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(2) Subsection (1) applies after 1997.
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48. (1) The description of C in subsection
190.1(1.2) of the Act is replaced by the
following:
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C is the number of days in the year that are
after February 27, 1995 and before
November 1998 .
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(2) Subsection (1) applies to taxation
years that end after February 27, 1995.
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49. (1) The formula in paragraph
204.2(1.1)(b) of the Act is replaced by the
following:
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A + B + R + C + D + E
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(2) Paragraph 204.2(1.1)(b) of the Act is
amended by striking out the word ``and'' at
the end of the description of D, by adding
the word ``and'' at the end of the description
of E and by adding the following after the
description of E:
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(3) Subsections (1) and (2) apply to the
1998 and subsequent taxation years.
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50. (1) The heading ``REGISTERED
LABOUR-SPONSORED VENTURE
CAPITAL CORPORATIONS'' before
section 204.8 of the Act is replaced by the
following:
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LABOUR-SPONSORED VENTURE CAPITAL CORPORATIONS |
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(2) Subsection (1) applies after February
18, 1997.
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51. (1) The portion of the definition
``eligible investment'' in section 204.8 of the
Act after paragraph (d) is replaced by the
following:
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(2) Subsection (1) applies to property
acquired after February 18, 1997.
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52. (1) Clause 204.81(1)(c)(ii)(C) of the
Act is replaced by the following:
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(2) Subsection (1) applies after 1996.
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53. (1) The portion of subsection
204.82(2) of the English version of the Act
before paragraph (a) is replaced by the
following:
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Liability for
tax
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(2) Where, at any time in a month in a
particular taxation year of a corporation that
was registered under this Part that began after
the end of the corporation's last taxation year
referred to in paragraph 204.81(6)(g), 60% of
the least of
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(2) Subsection 204.82(2) of the Act is
amended by striking out the word ``and'' at
the end of paragraph (a) and by adding the
following after that paragraph:
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(3) Subsection 204.82(2) of the Act, as
amended by subsections (1) and (2), is
replaced by the following:
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Liability for
tax
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(2) Each corporation that has been
registered under this Part shall, in respect of
each month that ends in a particular taxation
year of the corporation that begins after the
end of the corporation's last taxation year
referred to in paragraph 204.81(6)(g), pay a
tax under this Part equal to the amount
obtained when the greatest investment
shortfall at any time that is in the month and
in the particular year (in this section and
sections 204.81 and 204.83 referred to as the
``monthly deficiency'') is multiplied by 1/60
of the prescribed rate of interest during the
month.
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Determi- nation of investment shortfall
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(2.1) Subject to subsection (2.2), a
corporation's investment shortfall at any time
in a particular taxation year is the amount
determined by the formula
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A - B
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where
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A is 60% of the lesser of
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B is the greater of
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Investment
shortfall
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(2.2) For the purpose of computing a
corporation's investment shortfall under
subsection (2.1) at any time in a taxation year
(in this subsection referred to as the ``relevant
year''),
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(4) Section 204.82 of the Act is amended
by adding the following after subsection (4):
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Provincially
registered
LSVCCs
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(5) Where
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the corporation shall pay a tax under this Part
for the taxation year in which the amount
became payable equal to that amount.
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(5) Subsections (1) and (2) apply to
taxation years that end after 1994 and
before March 1997.
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(6) Subsection (3) applies to taxation
years that end after February 1997 except
that, for taxation years that end before
1999, the amount determined under
paragraph (b) of the description of B in
subsection 204.82(2.1) of the Act, as enacted
by subsection (3), is deemed to be nil.
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(7) Subsection (4) applies to liabilities
arising after February 18, 1997.
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54. (1) Section 204.83 of the Act is
replaced by the following:
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Refunds for
federally
registered
LSVCCs
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204.83 (1) If a corporation is required,
under subsections 204.82(3) and (4), to pay a
tax and a penalty under this Part for a taxation
year and, throughout any period of 12
consecutive months (in this section referred to
as the ``second period'') that begins after the
12-month period in respect of which the tax
became payable (in this section referred to as
the ``first period''), the corporation has no
monthly deficiency and files with the Minister
the return required under this Part for the
taxation year in which the second period ends,
the Minister shall refund to the corporation an
amount equal to the total of the amount that
was paid under subsection 204.82(3) and 80%
of the amount that was paid under subsection
204.82(4) in respect of the first period.
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Refunds for
other LSVCCs
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(2) Where
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the corporation is deemed to have paid at that
time an amount equal to the refund on account
of its tax payable under this Part for the year.
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(2) Subsection (1) applies after February
18, 1997.
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55. (1) Section 204.85 of the Act is
replaced by the following:
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Dissolution of
federally
registered
LSVCCs
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204.85 (1) If a registered labour-sponsored
venture capital corporation or a revoked
corporation has issued any Class A shares, it
shall not be amalgamated or merged with
another corporation, or be liquidated or
dissolved, except with the written permission
of the Minister of Finance and on any terms
and conditions that are specified by that
Minister.
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Dissolution of
other LSVCCs
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(2) Where
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the corporation shall pay a tax under this Part
for the taxation year in which the amount
became payable equal to that amount.
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(2) Subsection 204.85(1) of the Act, as
enacted by subsection (1), applies after July
1997.
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(3) Subsection 204.85(2) of the Act, as
enacted by subsection (1), applies after
February 18, 1997.
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56. (1) Section 204.86 of the Act is
replaced by the following:
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Return and
payment of
tax for
federally- registered LSVCCs
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204.86 (1) Every registered
labour-sponsored venture capital corporation
and every revoked corporation shall
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