Schedule 38, Part VI Tax on Capital of Financial Institution

Part VI tax

This schedule is for any corporation that is or was a financial institution during the year.  

Part VI tax corresponds to 1.25% of the portion of taxable capital in excess of the capital deduction for the year.

The capital deduction for the year is of 1 billion.

Note: The capital deduction must be allocated between the members of the group. To do so, you must produce Schedule 39 and the capital deduction of the corporation will be the deduction attributed to the financial institution in Schedule 39.

A corporation can deduct Part I tax and Part VI.2 tax payable in the current taxation year from the gross Part VI tax payable in that same taxation year. It can also deduct its unused Part I tax credits from its Part VI tax during one of its three preceding taxation years and the seven subsequent taxation years.