What Personal Health Information Can Businesses Collect?

Written by Carolee Changfoot

As COVID starts to plateau in Canada and restrictions lift, I reflect on the last two years and the role health innovation has played in our lives. We have had several medical innovations such as mRNA vaccinations, new COVID treatment medications, and the rise of telehealth.[1] Health and Fitness Apps saw a 47% increase in adoption as COVID spread globally in 2020.[2] Additionally, funding for digital health start-ups hit a record breaking $57.2 billion last year, a 79% increase from 2020.[3]

COVID highlighted just how important our health is. Many businesses seem to recognize this as the global mobile health app market is expected to grow 11.8% from 2022 to 2030.[4] With more businesses expecting to work with health data, it is important for businesses to understand their expectations around collecting and protecting personal information.

This blog post is not legal advice but describes some of the requirements private businesses face when collecting personal information.

National Requirements

The Personal Information Protection and Electronic Documents Act (PIPEDA) establishes national limits on the collection of personal information.[5] PIPEDA applies to every organization that collects, uses or discloses personal information in the course of commercial activities.[6]
 
PIPEDA defines “personal information” as information about an identifiable individual.[7] Medical records are considered sensitive information.[8]

Organizations must identify the purpose for which the information is to be used at or before the time the information is collected.[9] The purpose must be specified at or before the time of collection to the individual whose information is being collected.[10] Organizations must make a reasonable effort to ensure that the individual understands the purpose for which their information is to be used.[11]
 
The knowledge and consent of the individual whose personal information is collected is required for the collection, use or disclosure of personal information.[12] Consent in regards to sensitive information, like medical information, must be expressly given.[13]
 
If the business changes how they plan to use the personal information, that business must communicate the new purpose to the individuals whose personal information has been collected and must obtain their express consent before their information can be used for the new purpose.[14]
 
Further, an individual may withdraw consent at any time, subject to legal or contractual restrictions and reasonable notice.[15] The organization shall inform the individual of the implications of such withdrawal.[16]

Provincial Requirements 

In addition to PIPEDA, the provinces have established additional requirements through provincial legislation. The collection, use, and disclosure of private information in Alberta is governed by Alberta’s Personal Information Protection Act (AB PIPA) and Alberta’s Health Information Act (HIA).[17]  

AB PIPA defines “personal information” as identifiable information.[18] The collection, use, and disclosure of personal information requires the consent of the individual whose information is being collected, used and disclosed.[19] Personal information can only be collected for purposes that are reasonable.[20] The purpose must be communicated to the individual whose information is collected at or before the time the information is collected.[21] It is relevant to note that only organizations classified as “custodians” under the Health Information Act and the regulations made under it are authorized to collect an individual’s personal health number.[22] The definition of custodian does not include a private business or organization.[23]

Footnotes:

[1] COVID Drugs; COVID Vaccines; Rise of Telehealth
[2] Fitness App Growth Q2 2020
[3] 2020 Fitness Health Funding
[4] mHealth App Market Growth Expectations
[5] Privacy Commissioner of Canada, PIPEDA in Brief
[6] S. 4 Personal Information Protection and Electronic Documents Act
[7] S. 2 Personal Information Protection and Electronic Documents Act
[8] Schedule 1 - S. 4.2.3, Personal Information Protection and Electronic Documents Act
[9] Schedule 1 - S. 4.2, Personal Information Protection and Electronic Documents Act
[10] Schedule 1 - S. 4.2.3, Personal Information Protection and Electronic Documents Act
[11] Schedule 1 - S. 4.3.2, Personal Information Protection and Electronic Documents Act
[12] Schedule 1 - S. 4.3, Personal Information Protection and Electronic Documents Act
[13] Schedule 1 - S. 4.3.6, Personal Information Protection and Electronic Documents Act
[14] Schedule 1 - S. 4.2.4, Personal Information Protection and Electronic Documents Act
[15] Schedule 1 - S. 4.3.8, Personal Information Protection and Electronic Documents Act
[16] Schedule 1 - S. 4.3.8, Personal Information Protection and Electronic Documents Act
[17] S. 2, Health Information Act
[18] S.1, Alberta Privacy Information Protection Act
[19] S.7(1), Alberta Privacy Information Protection Act
[20] S.11, Alberta Privacy Information Protection Act
[21] S.13, Alberta Privacy Information Protection Act
[22] S.21(1), Health Information Act
[23] S. 1(1)(f), Health Information Act
​

We’ve Heard About SAFEs, But What About RBFs?

Written by: Saranjit Dhindsa
 
Start-ups need financing – that much is clear.
 
There are many ways early-stage financing can take shape, but it will either take the form of debt (i.e., a bank loan) or equity (i.e., selling shares to investors to raise capital).
 
One of the most popular forms of early stage outside financing for start-ups comes in the form of a SAFE – a “Simple Agreement for Future Equity.” Developed in 2013 by YCombinator, SAFEs have been viewed as a quick and easy way to secure financing in seed rounds. For more information on them, check out this blog post.[1]
 
However, there is a new kid on the block – and it goes by the name of Revenue-Based Financing (or RBFs; the “r” is sometimes referred to as “royalty”).
 
What is RBF?
 
Revenue-based financing, also known as royalty-based financing, is another method of raising capital from investors. Investors inject growth capital into the business, in exchange for a percentage of future monthly revenues.
 
The investor receives their share of the business’s income, until a predetermined amount has been paid. This amount is often a multiple of the initial investment amount.
 
For example, if an investor initially invests $1 million, the predetermined amount could be a multiple of 3, or 5 times that initial investment (i.e., $3 million or $5 million).
 
On its face, RBF sounds a bit like debt financing, but unlike debt, you do not pay interest on the outstanding investment, nor are there any fixed payments. Instead, payments have a directly proportional relationship to the business, as the payment calculations are based on the business’s income. So, if a business sees a high number of sales, the royalty payment will be higher, and if the sales slump for a month, the royalty payment will be lower. 
 
RBF is also different from equity financing, as the investor does not have direct ownership of the business. As such, RBF occupies a weird, hybrid space between debt and equity financing.
 
What Kind of Start-Ups Can Benefit from RBF?
 
Businesses that are experiencing moderate and hyper-growth can benefit well under RBF. As such, RBF can be a good way for growth companies to secure growth capital. In addition, businesses that are approaching profitability or have become profitable can benefit from RBF. RBF can be used where a company is pre, post or anti-venture capital. It can also be used to extend cash runaway or eliminate the need for a final funding round.
 
Currently, RBF is most successful with Software-as-a-Service (SaaS) companies. This is because SaaS companies usually have high gross margins and subscription-based revenue models.
 
So, what are the pros and cons to RBF?[2]
 
Pros:

• RBF is founder-friendly capital, as it allows the founder(s) to maintain control of their company, and minimize equity dilution
• The revenue-based payments increase and decrease to match the income of your business, so a business never has to pay a fixed amount that they cannot afford
• While RBF still comes with a price tag in the form of monthly payments, equity financing does not have a cap, and consists of a percentage of ownership of the company in perpetuity.
• RBF is suitable for higher-risk companies, who may have a difficult time qualifying for traditional bank loans (which may come with a higher interest rates)

 
Cons:

• RBF can be more expensive than a bank loan in the long run, depending on how high the predetermined amount is.
• RBF can foil attempts to founder-proof a business as the founder still retains control over the business, thereby preventing equity holders from exercising their ownership power to keep founders in check/oust them if they are harming the business.
• RBF also assumes that a business will have some form of income/revenue, as such, investors who are open to an RBF will look for certain requirements. Often, those requirements consider a start-up’s median monthly revenue.
• While RBF does not require active repayment, it assumes that payment will occur every month, which may cause a company to become tight for cash, especially in the initial start-up phase. As such, this form of financing is probably best reserved for when a product is launched, and sales revenue is beginning to grow.

[1] http://www.businessventureclinic.ca/blog/safes-what-are-they-and-when-are-they-used
[2] https://flowcap.com/founders-guide-to-revenue-based-financing/

Understanding International Patent Law and Implications for Your Start-Up

Written by Karlee Squires
 
So you have come up with a great invention and are excited to build a business around it. Until you discover that someone has created a similar invention in another country. What can you do? Do you still have a viable business? Do you still have a patentable invention?
To answer this question, you need to understand how patents are awarded in Canada and internationally.

Understanding Patents in Canada
The patent process in Canada is governed by the Patent Act.[1] A patent provides a time-limited, legally protected, exclusive right to make, use and sell an invention.[2] Once approved, a patent lasts for 20 years from the file date.[3]
For an invention to be patentable in Canada, it must meet 4 criteria. (1) It must be a matter that can be patented.[4] (2) It must be novel or new.[5] (3) It must be useful.[6] (4) It must be inventive and non-obvious, [7] meaning the invention would not have been obvious to a person skilled in the art or science to which it pertains.
 
What Does a Canadian Patent mean for Other Countries?
 Patent laws and requirements are different in each country. Receiving a patent in Canada does not guarantee the same invention will be patentable in another country. To exercise an enforceable patent in another country, you will need to apply for the patent right in each country separately. In the same way, the existence of a patent in another country does not automatically mean that patent is granted in Canada.

Similarity of a Patent in Another Country
However, if a patent or similar patented invention exists in another country, while not enforceable in Canada, it’s existence may affect the ability to obtain a Canadian patent. A similar invention outside of Canada raises issues around the novelty requirement for an invention to be patentable in Canada.

How do you get around this issue? When applying for a patent it is important to be clear how your invention differentiates from something similar in other jurisdictions. When submitting your patent application in Canada, you should disclose any patent in another jurisdiction you believe is similar to your own invention. If possible, provide the name of the inventor, the number of the patent, the country and the date of issue of the similar patent. The most important thing you will need to include is a list of the similarities and differences between your product/invention and the previously patented invention.[8]

Footnotes:
[1] Patent Act, RSC 1985, c P-4 [Patent Act].
[2] Patent Act, supra note 1 at s 42.
[3] Canadian Intellectual Property Office, “What is a Patent” (28 February 2022), online: http://www.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/wr03716.html
[4] Government of Canada, “Manual of Patent Office Practice (MOPOP)” (28 February 2022), online: https://s3.ca-central-1.amazonaws.com/manuels-manuals-opic-cipo/MOPOP_English.html#_Toc95464691 at Chapter 17.
[5] Supra note 3
[6] Supra note 3
[7] Supra note 3.
[8] Supra note 2, s 67(2).

So... You’ve started your own business and want to issue shares?
Written by: Carolee Changfoot

How are Shares Issued?
Shares represent equity in a corporation.
Shares are issued by a corporation from certain classes with certain rights attached to them.
Shares must be issued for valid consideration for the issuance to represent a binding contract. Consideration is a quid pro quo, where one party accrues a right, interest, or benefit and another party undertakes a responsibility, loss, or detriment.[1] Additionally, private company shares must be issued in compliance with the Prospectus Exemption under NI 45-106.[2]
There are tax implications on the issuance of shares and dividends, either on the corporation or on the shareholder. It is recommended that a company work with a strong corporate tax account for tax planning and advice when issuing shares

What are a Shareholder’s Rights?
A company’s Articles of Incorporation will establish the classes of shares that a corporation is authorized to issue and what rights are affiliated with shares from those classes.[3]  
Some common rights are:

• Shareholder dividend rights
• Shareholder voting rights

The rights and privledge of shares between classes can vary.
Shareholders in the same class must be treated equally.[4] For example, if one shareholder is issued dividends, all shareholders of that class are entitled to dividends.

Shareholder Dividend Rights.
Profits can distributed to shareholders in the form of dividends. However, the right to dividends is not a legally enforceable right.[5]

Dividends can be paid periodically, pursuant to a contract, or as a onetime event.[6] To pay dividends, the issuing company must be “solvent” under the Alberta Business Corporations Act and the company’s Board of Directors must have voted to declare dividends.[7]  
 
The right to dividends are either cumulative or noncumulative. In a cumulative dividend, the dividend amount accumulates to the next time the corporation pays the dividend.[8] Shares with cumulative dividend rights must be paid dividends before lower ranking shares are paid dividends. [9] Noncumulative dividends do not accumulate and a shareholder does not have a right to any unpaid dividends. [10]
 
Shareholder voting rights
Shares that specifically provide for a vote at shareholder meetings can attend shareholder meetings and vote on general shareholder resolutions. These shares give the shareholder a say in the general operation of the corporation.
Non-voting shareholders do not have the right to attend or vote at a shareholder however can vote on matters that affect its share class.[11] Section 176(1) of the Alberta Business Corporations Act provide that a shareholder can vote on:

• An increase or decrease of the maximum number of shares authorized for their class
• An increase of the number of shares that have rights or privileges equal or superior to the rights or privileges attached to the shares of that class
• Effect an exchange, reclassification or cancellation of all or part of the shares of that class
• Add, change or remove the rights, privileges, restrictions or conditions attached to the shares of that class
• Creating a share class with rights or privileges equal or superior to their rights
• Matters impacting their rights to transfer shares

 
Additionally, all shareholders have a right to vote on certain special resolutions that affect that class.[12] A special resolution must receive a majority vote of not less than ⅔ of the votes cast in order to be passed.[13]  The following are examples of special resolutions that require the vote of all shareholders:

• Amending the Articles of Incorporation[14]
• Amalgamation or Merger[15]
• Extraordinary Sale, Lease or Exchange[16]
• Voluntary liquidation or dissolution[17]

Amending the Articles of Incorporation: Changing a corporation’s Articles of Incorporation requires a special resolution.[18] A corporation’s Articles of Incorporation are required to be amended in the following circusmtances:

• Changing the name of the corporation,
• Changing the business of the corporation
• Changing the maximum number of shares that the corporation is authorized to issue,
• Creating a new class of shares, changing the designation of shares,
• Changing  the shares of any class or series, dividing a class of shares,
• Canceling a class of shares, authorize the directors to divide any class of unissued shares,
• Authorize directors to change the rights/privileges attached to unissued shares,
• Increase or decrease the maximum/minimum number of directors; and
• Change restrictions on the transfer of shares.

Amalgamation or Merger: An amalgamation or merger occurs when two or more corporations combine and continue as one corporation. To complete an amalgamation or merger a corporation’s shareholders must approve of the transaction by special resolution.[19]
Extraordinary Sale, Lease or Exchange: A sale, lease or exchange of all or substantially all of a corporation’s property, other than in the ordinary court of business, requires the approval of the corporation’s shareholders by special resolution.[20]
Voluntary Liquidation and Dissolution: A director or voting shareholder may propose for the corporation’s voluntary liquidation or dissolution.[21] The proposal must be voted on by special resolution by all the shareholders.[22]

Founder Share Considerations
Dividing shares among founders is a way to reflect the experience and resources each founder brings to the corporation. Factors that are often considered in the distribution of founder shares are: relative contributions, entrepreneurial experience, and capital consideration.[23]

Investor Share Considerations
A company might distinguish a share class in its Articles of Incorporation as a “preferred share” class. Investors are typically offered preferred shares because they typically offer greater rights than the corporation’s common shares. [24] For example, the right to a cumulative dividend or a right of redemption.
A right of redemption provides the investor with the right to require the corporation to re-purchase their shares. This gives the investor an exit from the company.[25]
An investor will likely consider the rights founders shares, the rights of other shareholders (specifically if there are shareholders with greater rights than they are being offered),and how much debt the corporation has before investing.[26]
It is recommended not to provide early investors with too many rights as this may deter future investors or the corporation may need to offer future shareholders greater rights than previous investors.


[1] Terrafund Financial Inc v 569244 BC Ltd (2000), 2000 Carswell BC2739.
[2] NI 45-106, Prospectus Exemptions
[3] ABCA, s 6(1)(b).
[4] ABCA, s.26(5)
[5] Bryce C Tingle, Start-up and Growth Companies in Canada: A Guide to Legal and Business Practice, 2nd ed (LexisNexis Canada, 2013) at 74.
[6] Glossary: Dividends, Practical Law
[7] ABCA, ss. 43. 118(3)(c), Practical Law - Board Resolutions: Declaring Cash Dividends
[8] Glossary: Cumulative Dividend, Practical Law
[9] Glossary: Cumulative Dividend, Practical Law
[10] Glossary: Cumulative Dividend, Practical Law
[11] ABCA, s,176
[12] ABCA, s 1(1)(ii); 176(1).
[13] ABCA, s 1(1)(ii).
[14] ABCA, s 173(1).
[15] ABCA, s 183(5).
[16] ABCA, s 190(6).
[17] ABCA, s.212(3),
[18] ABCA, s 1(1)(ii); 176(1).
[19] ABCA, s.183
[20] ABCA, s.190(6)
[21] ABCA, s.212(1)
[22] ABCA, s.212(3)
[23] Bryce C Tingle, Start-up and Growth Companies in Canada: A Guide to Legal and Business Practice, 2nd ed (LexisNexis Canada, 2013)
[24] Bryce C Tingle, Start-up and Growth Companies in Canada: A Guide to Legal and Business Practice, 2nd ed (LexisNexis Canada, 2013) at 92
[25] I Bryce C Tingle, Start-up and Growth Companies in Canada: A Guide to Legal and Business Practice, 2nd ed (LexisNexis Canada, 2013) at 93.
[26] Bryce C Tingle, Start-up and Growth Companies in Canada: A Guide to Legal and Business Practice, 2nd ed (LexisNexis Canada, 2013). 

What are the criteria for a corporation to qualify as a Canadian-controlled Private Corporation to receive the special incentives of this status?
February 2022 | Dani Dufresne
 
Canadian-controlled Private Corporation (“CCPC”):
A Canadian-controlled private corporation is defined in section 125(7) of the Income Tax Act[1] as a private corporation resident in Canada other than a corporation that is:

• Controlled, directly or indirectly in any way, by one or more non-resident persons, by:
  • one or more public corporations (other than a prescribed venture capital corporation);
  • one or more corporations described in the last bullet point below; or
  • any combination of the foregoing.
• That would, hypothetically, be controlled by one person if that one person owned all the shares of any corporation that are owned by:
  • any non-resident person;
  • any public corporation (other than a prescribed venture capital corporation); or
  • a corporation described in the last bullet point below.
• That has a class of its shares listed on a designated stock exchange within or outside of Canada.
  • A “designated stock exchange” is defined in section 248(1) of the Act to mean a stock exchange, or that part of a stock exchange, for which a designation by the Minister of Finance under section 262 of the Act is in effect.[2] An updated list of designated stock exchanges is provided on the website of the Department of Finance.

“125 (7) Canadian-controlled private corporation means a private corporation that is a Canadian corporation other than
(a) a corporation controlled, directly or indirectly in any manner whatever, by one or more non-resident persons, by one or more public corporations (other than a prescribed venture capital corporation), by one or more corporations described in paragraph (c), or by any combination of them,
(b) a corporation that would, if each share of the capital stock of a corporation that is owned by a non-resident person, by a public corporation (other than a prescribed venture capital corporation), or by a corporation described in paragraph (c) were owned by a particular person, be controlled by the particular person,
(c) a corporation a class of the shares of the capital stock of which is listed on a designated stock exchange, or
(d) in applying subsection (1), paragraphs 87(2)(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)(e.2)), the definitions excessive eligible dividend designation, general rate income pool and low rate income pool in subsection 89(1) and subsections 89(4) to (6), (8) to (10) and 249(3.1), a corporation that has made an election under subsection 89(11) and that has not revoked the election under subsection 89(12);
 
… “
 
CCPC Status Prerequisite for Incentives under Income Tax Act (Federal Laws):

CCPC status is a prerequisite for the special incentive provisions in the Act, including: 
1. The small business deduction (“SBD”), which provides a preferential rate on the first $500k of a CCPC’s annual active business income earned in Canada.[3]

• CCPCs are eligible for federal and provincial corporate tax rate reductions on the first $500,000 (which is the corporation’s “business limit”) of active business income earned in Canada in the taxation year. To prevent the proliferation of the SBD among several corporations, the business limit must be shared amongst CCPCs that are associated corporations.[4]

• Active business income (“ABI”) is any income of a corporation other than income from property, a specified investment business or a personal services business.[5]

• Small CPPCs that claim the SBD and meet certain conditions, may have different balance-due-days (the date by which you have to pay the remainder of the tax you owe for the tax year).

• Generally, corporation taxes are due two months after the end of the tax year. [6]
• However, the balance is due three months after the end of the tax year if specific conditions are met.[7]

• A corporation’s tax year is its fiscal period, which cannot be longer than 53 weeks or 371 days”.[8]

2. Refundable investment tax credits (including an enhanced ITC rate and the ability to get a refund under the SR&ED program).[9]

• Investment tax credits (“ITC”) may be earned in respect of various investments or expenditures.[10]
  • The definition of investment tax credit in s. 127(9) of the Act determines the amount of ITC that is available to a taxpayer at the end of a tax year.[11]
• ITC includes scientific research and experimental development (“SR&ED”) credits.
  • Where CCPCs meet certain requirements SR&ED ITC may be earned at the enhanced rate of 35 percent (15% basic rate + 20% enhancement).[12]
  • The enhanced rate may be earned on qualified SR&ED expenditures up to an expenditure limit of $3 million. The Act provides a formula to determine the expenditure limit.[13]
    • Qualified expenditure means all the amounts that qualify for calculating the investment tax credit in a tax year, save repayments of assistance and contract payments made in a year.
• In some cases, CCPCs may receive all or part of their current year earned ITC as a cash refund.[14]

3. The deferred recognition of employee stock option (“ESO”) benefits.

• Where an employee’s benefits are those of a CCPC, the employee is not required to pay tax on the benefit until after they sell the shares.[15]

4. If the CCPC qualifies as a small business corporation, the capital gains exemption (“CGE”).

• A CGE may be claim when an individual taxpayer resident in Canada disposes of shares of a qualified small business corporation (“QBSC”).[16]
• Access to the CGE can be multiplied by having several family members hold shares of a QSBC directly or indirectly.[17]

5. A shorter time-period during which the CRA is permitted to reassess a taxation year.

• The normal reassessment period for a CPPC is three years rather than four years beginning the day after sending a notice of an original assessment for the relevant taxation year or a notification that no tax is payable for that year.[18]

6. A longer time-period to pay the balance of tax payable.

• Generally, corporate taxes are due two months after the end of the year however the balance of tax is due three months after the end of the tax year if conditions 1 AND 2 are met, as well as 3 OR 4.

1. the corporation CCPC throughout the tax year
2. the corporation claimed the small business deduction for the current or previous tax year
3. the corporation's taxable income for the previous tax year does not exceed its business limit for that tax year (if the corporation is not associated with any other corporation during the tax year)
4. the total of the taxable incomes of all the associated corporations for their last tax year ending in the previous calendar year does not exceed the total of their business limits for those tax years (if the corporation is associated with any other corporation during the tax year).[19]

*An additional refundable tax is imposed on the investment income of a CCPC.

• The tax is to prevent any personal tax deferral advantage of earning passive investment income through a CCPC as opposed to as an individual earning the investment income directly.
• The tax is calculated as 10. 67 percent of the lesser of:
  • The CCPC’s “aggregate investment income” for the year
  • The amount, if any, by which the corporation’s taxable income for the year exceeds the amount that is eligible for the SBD.[20]
• The tax is refunded when the CCPC pays a taxable dividend to its shareholders.[21]
• Refundable tax is also imposed on portfolio dividend income earned by a CCPC at a rate of 38.33 percent.[22]

Similar CCPC Status Incentives under Alberta Corporate Tax Act (Provincial Laws)
The Alberta Corporate Tax Act provides similar incentives consistent with the federal rules. The Tax and Revenue Administration (TRA) administers the Act.
 
1. Alberta Small Business Deduction (“ASBD”).

• The ASBD may be deducted by a CCPC.[23]
• It is formulated on the federal small business deduction though the deduction rate and qualifying amount of income from an active business for deduction are different.
• The ASBD rate is 6 percent resulting in an Alberta small business tax rate of 2 percent.
• It may be applied to reduce income from an active business carried on in Canada up to $500,000, which must be shared with any association corporations.

2. 6-month filing deadlines are not applicable to CCPCs that have already filed a corporate income tax (T2) return with CRA.

• A CCPC is not required to file a return for a taxation year because the corporation is deemed to have filed a return for the year under the Alberta Corporate Tax Act on the date it filed its return of income for the year under Part I of the federal Income Tax Act and;
• The return filed under the federal Act is deemed to be the return filed under the provincial Act.[24]

3. A shorter reassessment period.

• The normal reassessment period of a corporation if it is a CCPC at the end of the year is 3 years. In any other case, the period is 4 years.[25]

4. A longer time period to pay the balance of tax payable.

• The balance of tax payable is by the end of the third month following the taxation year for CCPCs whereas the balance due date is by the end of the second month for other corporations.[26]

[1] Income Tax Act, RSC 1985, c 1 (5th Supp), ss 125(7) Definition of “Canadian-controlled private corporation”.
[2] Ibid, ss 248(1) Definitions; s 262.
[3] Ibid, ss 125(1) Small business deduction; s 125(1.1) Small business deduction rate.
[4] Ibid, ss 125(2) Business limit; s 125(5) Special rules for business limit.
[5] Ibid, ss 125(7) Definition of income of the corporation for the year from an active business.
[6] Ibid ss 157(1)(b) Payment by corporation.
[7] Ibid ss 157(1.1) Special case; ss 157(1.2) Small-CCPC; ss 157(1.3) Taxable income – small-CCPC; ss 157(1.3) Taxable
  capital – small-CCPC; ss 157(1.5) No longer a small-CCPC.
[8] Canadian Revenue Agency, “Fiscal period for income tax purposes” (14 April 2021), online: Government of   
  Canada <https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-
  income/business-income-tax-reporting/fiscal-period-income-tax-purposes.html>.
[9] Ibid, ss 129(9).
[10] Ibid, ss 127(5) Investment tax credit.
[11] Ibid, ss 127(9) Definition of “investment tax credit”.
[12] Ibid, ss 127(10.1) Additions to investment tax credit.
[13] Ibid, ss 127(10.2) Expenditure limit determined; ss 127(10.21) Expenditure limits – associated CCPCs; ss
    127(10.3)
    Associated corporations; ss 127(10.6) Expenditure limit determination in certain cases.
[14] Ibid, ss 127.1 (1) Refundable investment tax credit; ss 127.1 (2) Definition of “refundable investment tax credit”;
    ss 127.1(2.01) Additions to investment tax credit; ss 149(1) Miscellaneous exemptions.
[15] Ibid, s 7; ss 110(1)(d) Employee options; ss 110(1)(d.1) Idem.
[16] Ibid, ss 110.6(1) Definitions; ss 110.6(2.1) Capital gains deduction – qualified small business corporation shares.
[17] Ibid, ss 110.6(14) Related persons, etc.
[18] Ibid, ss 152(3.1) Definition of normal assessment period.
[19] Ibid, ss 157(1)(b).
[20] Ibid, ss 152(1) Assessment; ss 123.3 Refundable tax on CCPC’s investment income; ss 129(3) Dividend refund to
    private corporation.
[21] Ibid, ss 129 (1) Dividend refund to private corporations.
[22] Ibid, ss 186(1) Tax on assessable dividends.
[23] Alberta Corporate Tax Act, RSA 2000, c A-15, ss 22(1) Small business deduction; ss 22(2.198).
[24] Ibid, ss 36(1.1) Return to be filed; ss 36(1.3).
[25] Ibid, ss 43(0.1) Assessment period, reassessment, etc.
[26] Ibid, ss 38(1.1) Payment on account.