Corporation Capital Tax Regulations

Link to law: https://www.novascotia.ca/just/regulations/regs/cocaptax.htm

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Corporation Capital Tax Regulations
made under Section 59 of the
Corporation Capital Tax Act
R.S.N.S. 1989, c. 99
O.I.C. 86-1272 (October 28, 1986), N.S. Reg. 261/86
as amended by O.I.C. 95-700 (September 19, 1995), N.S. Reg. 148/951 These regulations may be cited as the Corporation Capital Tax Regulations.
2 The rate of interest payable with respect to any unpaid amount or refunds of any overpayment pursuant to the Corporation Capital Tax Act shall be equal to the rate of interest payable to the Receiver General for Canada or to be applied on an amount payable by the Minister of Revenue for Canada to a taxpayer pursuant to regulation 4301 of the Income Tax Act (Canada).
Section 2 replaced: O.I.C. 95-700, N.S. Reg. 148/95.
Section 3 repealed: O.I.C. 95-700, N.S. Reg. 148/95.
4 (1) The amount taxable of a bank in a taxation year in the Province is 1/3 of the aggregate of
(a) that proportion of its taxable paid up capital for the year that the aggregate of the salaries and wages paid in the year by the bank to employees of its permanent establishments in the Province (other than salaries and wages paid to employees that supply telecommunication and telephone services that entitle the bank to a rebate of health services tax pursuant to subsection 12(6A) of the Health Services Tax Act Regulations) is of the aggregate of all salaries and wages paid in the year by the bank (other than salaries and wages paid to employees that supply telecommunication and telephone services that entitle the bank to a rebate of health services tax pursuant to subsection 12(6A) of the Health Services Tax Act Regulations); and
[Note: Effective April 1, 1996, the Health Services Tax Act Regulations are repealed by the Revenue Act Regulations, N.S. Reg. 63/96, made under the Revenue Act.]
(b) twice that proportion of its taxable paid up capital for the year that the aggregate amount of loans and deposits of its permanent establishment[s] in the Province for the year is of the aggregate amount of all loans and deposits of the bank for the year.
(2) For the purposes of subsection (1), the amount of loans for a taxation year is 1/12 of the aggregate of the amounts outstanding, on the loans made by the bank, at the close of business on the last day of each month in the year.
(3) For the purposes of subsection (1), the amount of deposits for a taxation year is 1/12 of the aggregate of the amounts on deposit with the bank at the close of business on the last day of each month in the year.
(4) For the purposes of subsections (2) and (3), loans and deposits do not include bonds, stocks, debentures, items in transit and deposits in favour of Her Majesty in right of Canada.
Section 4 replaced: O.I.C. 95-700, N.S. Reg. 148/95.
4A (1) The amount taxable of a trust and loan corporation, trust corporation or loan corporation in the Province is that proportion of its taxable paid up capital for the year that the gross revenue for the year of its permanent establishment[s] in the Province is of the total gross revenue for the year of the corporation.
(2) In subsection (1), "gross revenue for the year of its permanent establishment[s] in the Province" means the aggregate of the gross revenue of the corporation for the year arising from
(a) loans secured by lands situated in the Province;
(b) loans, not secured by land, to persons residing in the Province;
(c) loans
(i) to persons residing in a province or country, other than Canada, in which the corporation has no permanent establishment, and
(ii) administered by a permanent establishment in the Province,
except loans secured by land situated in a province or country, other than Canada, in which the corporation has a permanent establishment; and
(d) business conducted at the [a] permanent establishment in the Province, other than revenue in respect of loans.
(3) This Section shall be applicable to the 1994 taxation year and subsequent years.
Section 4A added: O.I.C. 95-700, N.S. Reg. 148/95.
5 For the purposes of the Act and these regulations,
(a) a Corporation Capital Tax Return shall be in the form of Schedule 1;
(b) a Computation of Taxable Paid-up Capital shall be in the form of Schedule 2;
(c) a Nova Scotia Amount Taxable for a Bank shall be in the form of Schedule 3;
(d) a Nova Scotia Amount Taxable for a Trust and Loan Company shall be in the form of Schedule 4; and
(e) an Aggregate Amount of Loans and Amounts of Deposits shall be in the form of Schedule 5.
6 These regulations are and are deemed to have been in force on, from and after the first day of June, 1986, and shall accordingly be read, construed, interpreted and given effect on, from and after that day.

Nova Scotia

Department of Finance
Revenue Division
P.O. Box 187
Halifax, Nova Scotia
B3J 2N3

Corporation Capital Tax Return
(Pursuant to the Corporation Capital Tax Act)

Schedule 1

PLEASE READ THE ACCOMPANYING SHEET BEFORE COMPLETING THIS RETURN

Fiscal Year End
Day / Month / Year
 

Date Due
Day / Month / Year
 
Account Number

Corporation Name

_______________________________________

Mailing Address:
Street, P.O. Box
_______________________________________

City
_______________________________________

Province
_________________ Postal Code ____________

Address of Principal Place of Business
in Nova Scotia
_______________________________________
_______________________________________

Official to contact and telephone number
_______________________________________

City and Jurisdiction of Head Office
_______________________________________

Calculation of Corporations Capital Tax

(Taxable Capital
as determined in
Schedule 2) $ _____ x (Rate) 1.5% x
(No. of days in
Fiscal Year) _____/365 = TAX PAYABLE
$____________

LESS: Amount Paid by installments
$____________

BALANCE
$____________

REFUND $
REMITTANCE $

__ Claimed
€ Apply to Subsequent Year
__ Submitted with Return

Certification

Official's Name (in block letters)
_______________________________________

Rank of Officer
_______________________________________

Full Resident Address
_______________________________________
_______________________________________

I am authorized signing officer of the corporation. I certify that this return including accompanyingschedules and statements has been examined by me and is a true and complete return. I further certifythat the allocation of the taxable capital as set out in Schedule 2 of this return has been made inaccordance with the provisions of the Corporations Capital Tax Act, and Regulations.

Date _____________________________
Signature _________________________________

Computation of taxable paid-up capital
Schedule 2

1.
Paid-up capital stock (net of premium and/or discount)
$_________________

2.
(Banks only)
- General Reserve
- Appropriation for Contingencies
$_________________
$_________________

Surpluses

3.
Earned (if deficit deduct)
$_________________

4.
Capital
$_________________

5.
Appraisal
$_________________

6.
Contributed
$_________________

7.
Other (specify)
$_________________

Reserves

8.
Special reserve as per balance sheet; include the amount of thereserve deducted from income under paragraph 20(1)(n) and sub-paragraph 40(1)(a)(iii) of the Income Tax Act (Canada)
$_________________

9.
Contingent and other like reserves
$_________________

10.
Deferred income taxes and other deferred taxes payable
$_________________

11.
Reserves, the excess of which are not allowed as a deduction fromtaxable income - include the amount by which UndepreciatedCapital costs of depreciable assets for income tax purposes exceeds Net Book Value excluding appraisals
$_________________

Total paid-up capital
$_________________

LESS: Standard exemption ($500,000.00 or $2,000,000.00 (whichever isapplicable)
$_________________

Taxable paid-up capital (all jurisdictions)
$_________________

Percentage of amount taxable used by corporation in Nova Scotia(Schedule 3 for banks or Schedule 4 for a trust and loan company asapplicable)
$_________________

Taxable capital used by corporation (in Nova Scotia)
$_________________

Nova Scotia amount taxable for a bank
Schedule 3

Aggregate of the salaries and wages paid in a fiscal year by a bank toemployees of its permanent establishments in jurisdictions outside NovaScotia.
$_____________ A

Aggregate of the salaries and wages paid in a fiscal year by a bank to itsemployees in all jurisdictions.
$_____________ B

A ÷ B = C
$____________% C

Aggregate amount of loans made by the permanent establishments of abank in jurisdictions outside Nova Scotia in a fiscal year.
(A from Schedule 5) _______________ x 2 = D
$_____________ D

Aggregate amount of deposits with the permanent establishments of abank in jurisdictions outside Nova Scotia in a fiscal year.
(C from Schedule 5) _______________ x 2 = E
$_____________ E

D + E = F
$_____________ F

Aggregate amount of loans made by, and the amount of deposits with, abank in all jurisdictions for a fiscal year.
(B + D from Schedule 5)
$_____________ G

F ÷ G = H
$____________% H

Percentage of amount taxable that is used by the bank in jurisdictionsoutside the province.
(C + H) = I
$____________% I

Percentage of amount taxable used by the bank in Nova Scotia
100% - I = J
$___________ % J
Transfer figure on line J to Schedule 2

Nova Scotia amount taxable for a trust and loan company
Schedule 4

Gross revenue for a fiscal year arising from loans secured by realproperty situated outside Nova Scotia.
$_____________ A

Gross revenue for a fiscal year arising from loans not secured by realproperty and made to persons residing outside Nova Scotia.
$_____________ B

Gross revenue for a fiscal year arising from business conducted at the corporation's permanent establishments in jurisdictions outside Nova Scotia other than revenue arising from loans.
$_____________ C

A + B + C = D
$_____________ D

Total Gross revenues of a corporation in all jurisdictions for a fiscal year.
$_____________ E

Percentage of amount taxable used by corporation in jurisdictions outsidethe Province. D ÷ E = F
$___________ % F

Percentage of amount taxable used in Nova Scotia 100% - F = G
$___________ % G
Transfer figure on line G to Schedule 2

Aggregate amount of loans and amount of deposits
Schedule 5

Amounts outstanding on Loans made by a bank (Note 1)
Amounts on Deposit with a bank (Note 1)

Outside N.S.
All Jurisdictions
Outside N.S.
All Jurisdictions

1st month end
 
 
 
 

2nd month end
 
 
 
 

3rd month end
 
 
 
 

4th month end
 
 
 
 

5th month end
 
 
 
 

6th month end
 
 
 
 

7th month end
 
 
 
 

8th month end
 
 
 
 

9th month end
 
 
 
 

10th month end
 
 
 
 

11th month end
 
 
 
 

12th month end
 
 
 
 

Total
 
 
 
 

Total 12
 
 
 
 

A
B
C
D

Transfer totals to appropriate lines on Schedule 3

Note 1
-
-
"loans" does not include bonds, stocks, debentures, items in transit and deposits infavour of Her Majesty in right of Canada.
"deposits" does not include bonds, stocks, debentures, items in transit and depositsin favour of Her Majesty in right of Canada.

[Note: Effective October 22, 2013, the reference in the Corporation Capital Tax Return form to the Department of Finance should be read as a reference to the Department of Finance and Treasury Board in accordance with Order in Council 2013-348 under the Public Service Act, R.S.N.S. 1989, c. 376.]