Structure of the Income Tax Act
The Canadian Income Tax Act is divided into parts. Some parts are very long, while others contain only one section (but sometimes a very lengthy section). Most parts deal with specific issues.
There are four parts that apply to the ITA as a whole, and they are: Part XV (Administration and Enforcement); Part XVI (Tax Avoidance); Part XVI.1 (Transfer Pricing); and Part XVII (Interpretation)
The majority of the provisions are found in Part I. Part I is the only part of the ITA that is further grouped into Divisions and Subdivisions.
The ITA currently has the following superstructure:
|
|
Subject Matter |
Sections |
| Part I | Income Tax | 2 – 180 |
|
Division A |
Liability for Tax |
2 |
|
Division B |
Computation of Income |
3 – 108 |
|
Subdivision a |
Income or Loss from an Office or Employment |
5 – 8 |
|
Subdivision b |
Income or Loss from a Business or Property |
9 -37 |
|
Subdivision c |
Taxable Capital Gains and Allowable Capital Losses |
38 – 55 |
|
Subdivision d |
Other Sources of Income |
56-59.1 |
|
Subdivision e |
Deductions In Computing Income |
60 – 66.8 |
|
Subdivision f |
Rules Relating to Computation of Income |
67 – 80.5 |
|
Subdivision g |
Amounts Not Included in Computing Income |
81 |
|
Subdivision h |
Corporations Resident in Canada and Their Shareholders |
82 – 89 |
|
Subdivision i |
Shareholders of Corporations not Resident in Canada |
90 – 95 |
|
Subdivision j |
Partnerships and Their Members |
96 – 103 |
|
Subdivision k |
Trusts and Their Beneficiaries |
104 – 108 |
|
Division C |
Computation of Taxable Income |
109 – 114.1 |
|
Division D |
Taxable Income Earned in Canada by Non-Residents |
115 – 116 |
|
Division E |
Computation of Tax |
117 – 127.4 |
|
Subdivision a |
Rules Applicable to Individuals |
117 – 122.51 |
|
Subdivision a.1 |
Child Tax Benefit |
122.6 – 122.64 |
|
Subdivision a.2 |
Working Income Tax Benefit |
122.7 – 122.71 |
|
Subdivision b |
Rules Applicable to Corporations |
123 – 125.5 |
|
Subdivision c |
Rules Applicable to All Taxpayers |
126 – 127.4 |
|
Division E.1 |
Minimum Tax |
127.5 – 127.55 |
|
Division F |
Special Rules Applicable in Certain Circumstances |
128 – 143.4 |
|
Division G |
Deferred and Other Special Income Arrangements |
144 – 148.1 |
|
Division H |
Exemptions |
149 – 149.2 |
|
Division I |
Returns, Assessments, Payments and Appeals |
150 – 168 |
|
Division J |
Appeals to the Tax Court of Canada and the Federal Court |
169 – 180 |
|
Part I.01 |
Tax in Respect of Stock Option Benefit Deferral |
180.01 |
| Part I.1 | Individual Surtax [repealed] | |
| Part I.2 | Tax on Old Age Security Benefits | 180.2 |
| Part I.3 | Tax on Large Corporations | 181 – 181.71 |
| Part II | Tobacco Manufacturers’ Surtax | 182 – 183 |
| Past II.1 | Tax on Corporate Distributions | 183.1 – 183.2 |
| Part III | Additional Tax on Excessive Elections | 184 – 185 |
| Part III.1 | Additional Tax on Excessive Eligible Dividend Designations | 185.1 – 185.2 |
| Part IV | Tax on Taxable Dividends Received by Private Corporations | 186 – 187 |
| Part IV.1 | Taxes on Dividends on Certain Preferred Shares Received by Corporations | 187.1 – 187.61 |
| Part V | Tax and Penalties in Respect of Registered Charities | 187.7 – 189 |
| Part VI | Tax on Capital of Financial Institutions | 190 – 190.211 |
| Part VI.1 | Tax on Corporations Paying Dividends on Taxable Preferred Shares | 191 – 191.4 |
| Part VII | Refundable Tax on Corporations Issuing Qualifying Shares | 192 – 193 |
| Part VIII | Refundable Tax on Corporations in Respect of Scientific Research and Experimental Development Tax Credit | 194 – 195 |
| Part IX | Tax on Deduction under Section 66.5 | 196 |
| Part IX.1 | Tax on SIFT Partnerships | 197 |
| Part X | Taxes on Deferred Profit Sharing Plans and Revoked Plans | 198 – 204 |
| Part X.1 | Tax in Respect of Over-Contributions to Deferred Income Plans | 204.1 – 204.3 |
| Part X.2 | Tax in Respect of Registered Investments | 204.4 – 204.7 |
| Part X.3 | Registered Labour-Sponsored Venture Capital Corporations | 204.8 – 204.87 |
| Part X.4 | Tax in Respect to Overpayments to Registered Education Savings Plans | 204.9 – 204.93 |
| Part X.5 | Payments Under Registered Education Savings Plans | 204.94 |
| Part XI | Taxes in Respect of Disability Savings Plans | 205 – 207 |
| Part XI.01 | Taxes in Respect of TFSAs | 207.01 – 207.07 |
| Part XI.1 | Tax in Respect of Deferred income Plans and Other Tax Exempt Persons | 207.1 – 207.2 |
| Part XI.2 | Tax in Respect of Certain Properties Disposed of by Certain Public Authorities or Institutions | 207.3 – 207.4 |
| Part XI.3 | Tax in Respect of Retirement Compensation Arrangements | 207.5 – 207.7 |
| Part XII | Tax in Respect of Certain Royalties, Taxes, Lease Rentals, etc., Paid to a Government by a Tax Exempt Person [repealed] | |
| Part XII.1 | Tax on Carved Out Income | 209 |
| Part XII.2 | Tax on Designated Income of Certain Trusts | 210 – 210.3 |
| Part XII.3 | Tax on Investment Income of Life Insurers | 211 – 211.5 |
| Part XII.4 | Tax on Qualifying Environmental Trusts | 211.6 |
| Part XII.5 | Recovery of Labour-Sponsored Funds Tax Credit | 211.7 – 211.9 |
| Part XII.6 | Tax on Flow-Through Shares | 211.91 |
| Part XIII | Tax on Income From Canada of Non-Residents | 212 – 218.1 |
| Part XIII.1 | Additional Tax on Non-Resident Corporations | 218.2 |
| Part XIII.2 | Non-Resident Investors in Canadian Mutual Funds | 218.3 |
| Part XIV | Additional Tax on Non-Resident Corporations | 219 – 219.3 |
| Part XV | Administration and Enforcement | 220 – 244 |
| Part XVI | Tax Avoidance | 245 – 246 |
| Part XVI.1 | Transfer Pricing | 247 |
| Part XVII | Interpretation | 248 – 262 |
Alternatively, we can look at the ITA in a functional manner. Groups of sections could be seen as performing specific functions within the larger scheme of the ITA. I prefer the following functional grouping:
|
Function |
Sections |
| Liability to tax and Computing Income | 2 – 4 |
| Employment Income | 5 – 8 |
| Business and Property Income | 9 – 37 |
| Capital Gains | 38 – 55 |
| Other Sources of Income | 56 – 59.1 |
| Deductions in Computing Income | 60 – 66.8 |
| General Rules for Computing Income | 67 – 69 |
| Death, Family transfers, Income Splitting | 70 – 75.2 |
| Debts | 76 – 80.5 |
| Amounts not Included in Income | 81 |
| Corporate Income | 82 – 89 |
| Shareholders of Non-resident Corporations | 90 – 95 |
| Partnership Income | 96 – 103 |
| Trust Income | 104 – 108 |
| Computation of Taxable Income rules | 109 – 114.2 |
| Income earned by Non-Residents | 115 – 116; 212 – 218.1 |
| Computation rules for Individuals | 117 – 122.71 |
| Computation Rules for Corporations | 123 – 125.5 |
| Computation Rules for all Taxpayers | 126 – 127.41 |
| Alternate Minimum Tax | 127.5 – 127.55 |
| Bankruptcies | 128 |
| Changes in Residence | 128.1 – 128.3 |
| Private Corporations | 129 |
| Investment Corporations | 130 |
| Mortgage Investment Corporations | 130.1 |
| Mutual Fund Corporations | 131 |
| Mutual Fund Trusts | 132 – 132.2 |
| Non-Resident Owned Investment Corporations | 133 – 134.1 |
| Patronage Dividends | 135 |
| Agricultural Co-operatives | 135.1 |
| Cooperative Corporations | 136 |
| Credit Unions, Savings and Credit Unions, and Deposit Insurance Corporations | 137 – 137.2 |
| Insurance Corporations | 138 – 141.1 |
| Financial Institutions | 142.2 – 142.7; 190 – 190.2 |
| Communal Organizations | 143 – 143.1 |
| Tax Sheltered Investments | 143.2 |
| Employees Plans | 144 – 145 |
| Registered Retirement Savings Plans | 146 – 146.02 |
| Registered Education Savings Plans | 146.1 – 146.2; 204.9 – 204.94 |
| Registered Retirement Income Funds | 146.3; 204.1 – 204.3 |
| Registered Disability Savings Plans | 146.4; 205 – 207 |
| Deferred Profit Sharing Plans | 147; 198 – 204 |
| Registered Pension Plans | 147.1 – 148 |
| Eligible Funeral Arrangements | 148.1 |
| Miscellaneous Exemptions | 149 |
| Charities | 149.1 – 149.2; 187.7 – 189 |
| Tax Returns | 150 – 151 |
| Assessments, Payment of tax, Interest, Penalties, Third Party Misrepresentations, Refunds, Objections, etc. | 152 – 168 |
| Appeals to TCC or FCA | 169 – 180 |
| Refundable Tax Credits | 192 – 195 |
| Taxable Dividends Received by Private Corporations | 186 – 187 |
| Tax Free Savings Accounts | 207.01 – 207.07 |
| Additional Tax on Non-resident Corporations | 219 – 219.3 |
| Administration and Collection | 220 – 244 |
| GAAR | 245 -246 |
| Transfer Pricing | 247 |
| Definitions | 248 – 249 |
| Interpretation Rules | 250 – 262 |
Sas Ansari, BSc BEd PC JD LLM PhD (exp) CPA In-Depth Tax 1, 2 &3
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