This form is to be filed by any Canadian-controlled private corporation (CCPC) that was, in a taxation year, associated with one or more other corporations, at least one of which was a CCPC. It is used to allocate the business limit among the associated corporations. The business limit of the applicant corporation calculated on line 42 (amount A) is then updated to line 76 of Form CO-771, Calculation of the Income Tax of a Corporation (Jump Code: 771) in order to determine the business limit for purposes of the small business deduction.
As per Revenu Québec requirements, this form should not be filed when the filing corporation elected not to be a CCPC under subsection 89(11) ITA. In that case, the form will be completed, but will not be applicable.
See Also
Guide de la déclaration de revenus des sociétés (available in French only)
CO-771.1.3.AT – Business limit allocated to a corporation that has specified corporate income