Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2017-09-27 and last amended on 2017-07-01. Previous Versions

AMENDMENTS NOT IN FORCE

  • — 2013, c. 33, s. 10

      • 10. (1) [In force]

      • (2) The definition first-time donor in subsection 118.1(1) of the Act, as enacted by subsection (1), is repealed.

      • (3) [In force]

      • (4) Subsections 118.1(3.1) and (3.2) of the Act, as enacted by subsection (3), are repealed.

      • (5) Subsections (1) and (3) apply in respect of gifts made after March 20, 2013.

      • (6) Subsections (2) and (4) apply to the 2018 and subsequent taxation years.

  • — 2014, c. 20, s. 29(4)

      • 29 (4) If subsection 256(2) comes into force, then on the later of January 1, 2015 and the day on which that subsection comes into force,

        • (a) the definition money services business in section 244.1 of the Act, as enacted by subsection (1), is replaced by the following:

          money services business

          money services business means an entity

          • (a) that has a place of business in Canada and that is engaged in the business of providing at least one of the following services:

            • (i) foreign exchange dealing,

            • (ii) remitting funds or transmitting funds by any means or through any entity or electronic funds transfer network,

            • (iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named entity,

            • (iv) dealing in virtual currencies, as defined by regulation, or

            • (v) a prescribed service; or

          • (b) that does not have a place of business in Canada, that is engaged in the business of providing at least one of the following services that is directed at entities in Canada, and that provides those services to their customers in Canada:

            • (i) foreign exchange dealing,

            • (ii) remitting funds or transmitting funds by any means or through any entity or electronic funds transfer network,

            • (iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named entity,

            • (iv) dealing in virtual currencies, as defined by regulation, or

            • (v) a prescribed service. (entreprise de transfert de fonds ou de vente de titres négociables)

        • (b) section 244.2 of the Act, as enacted by subsection (1), is amended by adding the following after subsection (4):

          • Entities outside Canada

            (5) Subsection (1) does not apply to an entity described in paragraph (b) of the definition money services business in respect of the services it provides to entities outside Canada.

  • — 2014, c. 20, s. 366(1)

    • Replacement of “trade-mark” in other Acts
      • 366 (1) Unless the context requires otherwise, “trade-mark”, “trade-marks”, “Trade-mark”, “Trade-marks”, “trade mark” and “trade marks” are replaced by “trademark”, “trademarks”, “Trademark” or “Trademarks”, as the case may be, in the English version of any Act of Parliament, other than this Act and the Trademarks Act.

  • — 2016, c. 7, ss. 29(2) to (5), (9), as amended by 2017, c. 20, s. 30

      • 29 (2) The first formula in subsection 122.61(1) of the Act, as enacted by subsection (1), is replaced by the following:

        (A + M)/12

      • (3) The formula in the description of A in subsection 122.61(1) of the Act, as enacted by subsection (1), is replaced by the following:

        E − Q

      • (4) The description of C in subsection 122.61(1) of the Act, as enacted by subsection (1), is repealed.

      • (5) Subsection 122.61(1) of the Act, as enacted by subsection (1), is amended by striking out “and” at the end of the description of Q, by adding “and” at the end of the description of E and by repealing the description of R.

      • (9) Subsections (2) to (5) come into force on July 1, 2018.

  • — 2016, c. 14, s. 66

      • 66 (1) Paragraph 60(e) of the Income Tax Act is replaced by the following:

        • CPP/QPP contributions on self-employed earnings

          (e) the total of

          • (i) 1/2 of the lesser of

            • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

            • (B) the maximum amount of such contributions payable by the taxpayer for the year under the plan, and

          • (ii) the lesser of

            • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.1) or (1.2) of the Canada Pension Plan, and

            • (B) the maximum amount of such contributions payable by the taxpayer for the year under the plan;

        • Enhanced CPP contributions

          (e.1) the lesser of

          • (i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.1) or (1.2) of the Canada Pension Plan, and

          • (ii) the maximum amount of such contributions payable by the taxpayer for the year under the plan;

      • (2) Subsection (1) comes into force on January 1, 2019.

  • — 2016, c. 14, s. 67

      • 67 (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following:

        • Annual adjustment
          • 117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1) and subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a), the amounts of $1,192 and $2,165 referred to in the description of A, and the amounts of $10,500 and $14,500 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $462.50 referred to in the description of C, and the amounts of $20,844 and $32,491 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

      • (2) Subsection (1) applies to the 2019 and subsequent taxation years, except that the adjustment provided for in subsection 117.1(1) of the Act, as amended by subsection (1), does not apply for the 2019 taxation year in respect of the amounts of $1,192, $2,165, $20,844 and $32,491.

  • — 2016, c. 14, s. 68

      • 68 (1) Paragraph (b) of the description of B in section 118.7 of the Act is replaced by the following:

        • (b) the total of all amounts each of which is an amount payable by the individual for the year as an employee’s contribution under subsection 8(1) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, not exceeding the maximum amount of such contributions payable by the individual for the year under the plan, and

      • (2) Subsection (1) comes into force on January 1, 2019.

  • — 2016, c. 14, s. 69

      • 69 (1) The descriptions of A and B in subsection 122.7(2) of the Act are replaced by the following:

        A
        is
        • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $1,192 and 26% of the amount, if any, by which the individual’s working income for the taxation year exceeds $3,000, or

        • (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $2,165 and 26% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $3,000; and

        B
        is
        • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 14% of the amount, if any, by which the adjusted net income of the individual for the taxation year exceeds $10,500, or

        • (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, 14% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $14,500.

      • (2) The descriptions of C and D in subsection 122.7(3) of the Act are replaced by the following:

        C
        is the lesser of $462.50 and 26% of the amount, if any, by which the individual’s working income for the taxation year exceeds $1,150; and
        D
        is
        • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 14% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $20,844,

        • (b) if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 14% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $32,491, or

        • (c) if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 7% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $32,491.

      • (3) Subsections (1) and (2) come into force on January 1, 2019.

  • — 2017, c. 20, s. 2

      • (1) Paragraph 6(1)(f.1) of the Income Tax Act is replaced by the following:

        • Canadian Forces members and veterans income replacement benefits

          (f.1) the total of all amounts received by the taxpayer in the year on account of an earnings loss benefit, a supplementary retirement benefit or a career impact allowance payable to the taxpayer under Part 2 of the Veterans Well-being Act;

      • (2) Subsection (1) comes into force on April 1, 2018.

  • — 2017, c. 20, s. 5

      • (1) Subsection 80.4(4) of the Act is replaced by the following:

        • Interest on loans for home purchase or relocation

          (4) For the purpose of computing the benefit under subsection (1) in a taxation year in respect of a home purchase loan or a home relocation loan, the amount of interest determined under paragraph (1)(a) shall not exceed the amount of interest that would have been determined thereunder if it had been computed at the prescribed rate in effect at the time the loan was received or the debt was incurred, as the case may be.

      • (2) Subsection (1) comes into force on January 1, 2018.

  • — 2017, c. 20, s. 6

      • (1) Paragraph 81(1)(d.1) of the Act is replaced by the following:

        • Canadian Forces members and veterans amounts

          (d.1) the total of all amounts received by the taxpayer in the year on account of a Canadian Forces income support benefit payable to the taxpayer under Part 2 of the Veterans Well-being Act, on account of a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable to the taxpayer under Part 3 of that Act or on account of a family caregiver relief benefit or a caregiver recognition benefit payable to the taxpayer under Part 3.1 of that Act;

      • (2) Paragraph 81(1)(d.1) of the Act, as enacted by subsection (1), is replaced by the following:

        • Canadian Forces members and veterans amounts

          (d.1) the total of all amounts received by the taxpayer in the year on account of a Canadian Forces income support benefit payable to the taxpayer under Part 2 of the Veterans Well-being Act, on account of a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable to the taxpayer under Part 3 of that Act or on account of a caregiver recognition benefit payable to the taxpayer under Part 3.1 of that Act;

      • (3) Subsections 81(2) and (3) of the Act are repealed.

      • (4) Subsection (1) comes into force on April 1, 2018.

      • (5) Subsection (2) applies in respect of the 2020 and subsequent taxation years.

      • (6) Subsection (3) comes into force on January 1, 2019.

  • — 2017, c. 20, s. 7

      • (1) Paragraph (b) of the definition taxable Canadian corporation in subsection 89(1) of the Act is replaced by the following:

        • (b) was not, by reason of a statutory provision, exempt from tax under this Part; (société canadienne imposable)

      • (2) Subsection (1) applies to taxation years that begin after 2018.

  • — 2017, c. 20, s. 8

      • (1) Paragraph 110(1)(j) of the Act is repealed.

      • (2) Subsection 110(1.4) of the Act is repealed.

      • (3) Subsections (1) and (2) come into force on January 1, 2018.

  • — 2017, c. 20, s. 10

      • 10 (1) Paragraph (b) of the description of E in the definition non-capital loss in subsection 111(8) of the Act is replaced by the following:

        • (b) an amount deducted under paragraph (1)(b) or section 110.6, or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or

      • (2) Subsection (1) comes into force on January 1, 2018.

  • — 2017, c. 20, ss. 13(2), (4)

      • 13 (2) Section 118.02 of the Act, as amended by subsection (1), is repealed.

      • (4) Subsection (2) applies to the 2018 and subsequent taxation years.

  • — 2017, c. 20, s. 20

      • 20 (1) Section 118.92 of the Act is replaced by the following:

        • Ordering of credits

          118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

      • (2) Subsection (1) applies to the 2018 and subsequent taxation years.

  • — 2017, c. 20, s. 21

      • 21 (1) Subparagraph 122.3(1)(e)(iii) of the Act is replaced by the following:

        • (iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under paragraph 110(1)(d.2), (d.3), (f) or (g), in computing the individual’s taxable income for the year.

      • (2) Subsection (1) comes into force on January 1, 2018.

  • — 2017, c. 20, s. 22

      • 22 (1) Subclause 126(1)(b)(ii)(A)(III) of the Act is replaced by the following:

        • (III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

      • (2) Subclause 126(2.1)(a)(ii)(A)(III) of the Act is replaced by the following:

        • (III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

      • (3) Subparagraph 126(3)(b)(iii) of the Act is replaced by the following:

        • (iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g), in computing the taxpayer’s taxable income for the year,

      • (4) Subsections (1) to (3) come into force on January 1, 2018.

  • — 2017, c. 20, s. 24

      • 24 (1) Paragraph 149(1)(t) of the Act is repealed.

      • (2) Subsections 149(4.1) to (4.3) of the Act are repealed.

      • (3) The portion of subsection 149(10) of the Act before paragraph (a) is replaced by the following:

        • Becoming or ceasing to be exempt

          (10) If at any time (in this subsection referred to as that time), a person — that is a corporation or, if that time is after September 12, 2013, a trust — becomes or ceases to be exempt from tax under this Part on its taxable income, the following rules apply:

      • (4) Subsections (1) to (3) apply to taxation years that begin after 2018.

  • — 2017, c. 20, s. 28

      • 28 (1) The Act is amended by adding the following after section 221:

        • Providing information returns in electronic format

          221.01 A person may provide an information return electronically under subsection 209(5) of the Income Tax Regulations if the criteria specified by the Minister are met.

      • (2) Subsection (1) comes into force on January 1, 2018.

  • — 2017, c. 20, s. 29

      • 29 (1) Subparagraph 241(4)(d)(viii) of the Act is replaced by the following:

        • (viii) to an official of the Department of Veterans Affairs solely for the purposes of the administration of the War Veterans Allowance Act, the Veterans Well-being Act or Part XI of the Civilian War-related Benefits Act,

      • (2) Subsection (1) comes into force on April 1, 2018.

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