37Rates of tax payable by companies

37 Rates of tax payable by companies

(1) Section 23 of the Principal Act is amended by adding at the end the following subsection: (6) The amount of tax payable by a company that is a recognised medium credit union in relation to a year of income must not exceed 49.5% of the amount by which the taxable income exceeds $50,000 less any rebate or credit to which the company is entitled. (2) The amendment made by subsection (1) applies to assessments in respect of income of the 1994‑95 year of income and of all later years of income. (3) In the application of subsection 23(6) of the Principal Act as amended by this Act for the 1994‑95 year of income the reference in the subsection to 49.5% is to be read as a reference to 30%. (4) In the application of subsection 23(2) of the Principal Act as amended by this Act to a recognised large credit union for the 1994‑95 year of income the reference in the subsection to 33% is to be read as a reference to 20%.