Section 123.1 — Income Tax Act: Corporation surtax

There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation (other than a corporation that was throughout the year an investment corporation or a non-resident-owned investment corporation) an amount equal to that proportion of 5% of the amount, if any, by which the tax payable under this Part by the corporation for the year determined without reference to this section, sections 123.2 and 126 (except for the purposes of subsection 125(1) and section 125.1), subsections 127(3) and (5), 127.2(1) and 127.3(1) of this Act and paragraph 123(1)(b) and subsection 127(13) of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952, and as if subsection 124(1) of this Act were read without reference to the words “in a province” in that subsection exceeds in the case of a Canadian-controlled private corporation to which subsection 125(1) applies, the amount, if any, by which 15% of the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year exceeds the amount, if any, determined under paragraph 125.1(1)(b) in respect of the corporation for the year, in the case of a mutual fund corporation, the least of the amounts that would be determined under paragraphs (a) to (c) of the description of A in the definition refundable capital gains tax on hand in subsection 131(6) in respect of the corporation for the year if this Act were read without reference to this section, and in any other case, nil that the number of days in that portion of the year that is after June 30, 1985 and before 1987 is of the number of days in the year.