John McKay moved, — That Bill C-43, in Clause 9, be amended by replacing lines 2 to 8 on page 7 with the following:“for a taxation year is
(a)
if the taxable capital employed in Canada of the corporation for the taxation year is equal to or less than $50,000,000 , that proportion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year; and
(b) if paragraph (a) does not apply, the percentage determined by the formula
A + B[(C - $50,000,000)/$25,000,000]
where
A
is that proportion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year,
B
is that proportion of 4% that the number of days in the taxation year that are after 2007 is of the number of days in the taxation year; and
C
is the lesser of $75,000,000 and the taxable capital employed in Canada of the corporation for the taxation year.
(3) For the purpose of subsection (2), the taxable capital employed in Canada of a corporation for a particular taxation year is
(a) if the corporation is associated with one or more other corporations in the particular taxation year, the total of all amounts each of which is the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation, or of such an associated corporation, for its last taxation year that ended in the calendar year preceding the calendar year in which the particular taxation year ends; and
(b) if the corporation is not associated with one or more other corporations in the particular taxation year, the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation for the particular taxation year.”