Stewart Holdings Ltd. is a Canadian controlled private corporation (CCPC) that has a fiscal period of November 1 to October 31. Stewart Holdings Ltd. has taxable income of $275,000 in the current year and has a policy of always claiming the small business deduction on its tax return each year. Mr. Steve Stewart is the sole shareholder of Stewart Holdings Ltd. Steve has not been too involved in the preparation of the corporate income tax returns in the past neither is aware of the rules under the Income Tax Act, so he has several questions for you about the administrative requirements for income tax purposes for his corporation, Stewart Holdings Ltd.

1. Mr. Stewart is concerned that the corporation will have to pay tax instalments in the next taxation year since the corporations taxable income was much higher this year than in the past. Explain to Mr. Stewart when tax instalments are required for corporations, how often tax instalments are paid by corporations and the calculation methods for tax instalments.