5-9644
A. Seidel
(613) 957-8960
24(1)
19(1)May 8, 1990
Dear Sir:
This is in reply to your letter dated February 20, 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.
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, subparagraph 157(1)(b)(ii) of the Act would apply to the credit union.
While we hope our comments are of assistance to you 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,
for Director Financial Industries Division Rulings Directorate