| 24(1) | 5-900859 |
| A. Seidel | |
| (613) 957-8960 | |
| Attention: 19(1) | EACC9386 |
July 26, 1990
Dear Sir:
This is in reply to your letter dated May 15, 1990 with respect to the due date of a credit union's final payment of taxes payable for a taxation year in which it has claimed the small business deduction.
Pursuant to subparagraph 157(1)(b)(ii) of the Income Tax Act (the "Act"), a credit union must pay the remainder of taxes payable under Part I and Part VI.1 of the Act for the year on or before the end of the second month following the end of the taxation year unless subparagraph 157(1)(b)(i) of the Act is applicable.
Notwithstanding that subsection 137(4) of the Act deems the amount deducted by a credit union pursuant to subsection 137(3) of the Act to be an amount deducted under section 125 of the Act, in the situation where a credit union's taxable income for the immediately preceding taxation year exceeds the business limit determined under subsection 125(2) of the Act, the credit union would be unable to satisfy the requirements of clause 157(1)(b)(i)(B) of the Act. Accordingly, as we stated in our February 20, 1990 letter to you, subparagraph 157(1)(b)(ii) of the Act, which states that the remainder of taxes payable under Part I and Part VI.1 of the Act are due on or before the end of the second month following the end of the year, would apply to the credit union.
While we hope our comments provide you with the further clarification you are seeking they do not constitute an advance income tax ruling and therefore are not binding on the Department in respect of a specific situation.
Yours truly,
F. Lee Workmanfor DirectorFinancial Industries DivisionRulings Directorate