Section 199 — Income Tax Act: Tax on initial non-qualified investments not disposed of

Every trust governed by a deferred profit sharing plan or revoked plan shall pay a tax for 1967, equal to the amount, if any, by which 20% of the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1968; for 1968, equal to the amount, if any, by which 40% of the initial base of the trust exceeds the total of the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1969, and the tax payable by the trust determined under paragraph 199(1)(a); for 1969, equal to the amount, if any, by which 60% of the initial base of the trust exceeds the total of the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1970, and the tax payable by the trust determined under paragraphs 199(1)(a) and 199(1)(b); and for 1970, equal to the amount, if any, by which 100% of the initial base of the trust exceeds the total of the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1971, and the tax payable by the trust determined under paragraphs 199(1)(a), 199(1)(b) and 199(1)(c). Where at the end of a year, the total of all taxes paid by a trust under subsection 199(1) exceeds the total of all refunds made to the trust under this subsection, and the amount, if any, by which the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before the end of the year, the trust is, on application in accordance with section 202, entitled to a refund equal to the amount by which the total described in paragraph 199(2)(a) exceeds the total described in paragraph 199(2)(b).