Marginal note:Individual resident in Canada for only part of year

114. Notwithstanding subsection 2(2), the taxable income for a taxation year of an individual who is resident in Canada throughout part of the year and non-resident throughout another part of the year is the amount, if any, by which

• (a) the amount that would be the individual’s income for the year if the individual had no income or losses, for the part of the year throughout which the individual was non-resident, other than

  • (i) income or losses described in paragraphs 115(1)(a) to (c), and

  • (ii) income that would have been included in the individual’s taxable income earned in Canada for the year under subparagraph 115(1)(a)(v) if the part of the year throughout which the individual was non-resident were the whole taxation year,

exceeds the total of

• (b) the deductions permitted by subsection 111(1) and, to the extent that they relate to amounts included in computing the amount determined under paragraph (a), the deductions permitted by any of paragraphs 110(1)(d) to (d.2) and (f), and

• (c) any other deduction permitted for the purpose of computing taxable income to the extent that

  • (i) it can reasonably be considered to be applicable to the part of the year throughout which the individual was resident in Canada, or

  • (ii) if all or substantially all of the individual’s income for the part of the year throughout which the individual was non-resident is included in the amount determined under paragraph (a), it can reasonably be considered to be applicable to that part of the year.

• (i) incomes from the duties of offices and employments performed by the non-resident person in Canada and, if the person was resident in Canada at the time the person performed the duties, outside Canada,

• (ii) incomes from businesses carried on by the non-resident person in Canada which, in the case of the Canadian banking business of an authorized foreign bank, is, subject to this Part, the profit from that business computed using the bank’s branch financial statements (within the meaning assigned by subsection 20.2(1),

• (vii) in the case of an authorized foreign bank, the amount claimed by the bank to the extent that the inclusion of the amount in income

  • (A) increases any amount deductible by the bank under subsection 126(1) for the year, and

  • (B) does not increase an amount deductible by the bank under section 127 for the year,

• (b) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were taxable capital gains and allowable capital losses from dispositions of taxable Canadian properties (other than treaty-protected properties), and

• (d) the deductions permitted by subsection 111(1) and, to the extent that they relate to amounts included in computing the amount determined under any of paragraphs (a) to (c), the deductions permitted by any of paragraphs 110(1)(d) to (d.2) and (f) and subsection 110.1(1),

• (e.1) the deduction permitted by subsection (4.1), and

• (b) a student attending, or a teacher teaching at, an educational institution outside Canada that is a university, college or other educational institution providing courses at a post-secondary school level, who in any preceding taxation year ceased to be resident in Canada in the course of or subsequent to moving to attend or to teach at the institution,

• (b.1) an individual who in any preceding taxation year ceased to be resident in Canada in the course of or subsequent to moving to carry on research or any similar work under a grant received by the individual to enable the individual to carry on the research or work,

• Marginal note:Non-resident actors

  (2.1) Notwithstanding subsection (1), where a non-resident person is liable to tax under subsection 212(5.1), or would if this Act were read without reference to subsection 212(5.2) be so liable, in respect of an amount paid, credited or provided in a particular taxation year, the amount shall not be included in computing the non-resident person’s taxable income earned in Canada for any taxation year unless a valid election is made under subsection 216.1(1) in respect of the non-resident person for the particular year.

• Marginal note:Deferred payment by actor’s corporation

  (2.2) Where a corporation is liable to tax under subsection 212(5.1) in respect of a corporation payment (within the meaning assigned by subsection 212(5.2)) made in a taxation year in respect of an actor and, in a subsequent year, the corporation makes an actor payment (within the meaning assigned by subsection 212(5.2)) to or for the benefit of the actor, the amount of the actor payment is not deductible in computing the income of the corporation for any taxation year and is not included in computing the taxable income earned in Canada of the actor for any taxation year.

• Marginal note:Foreign resource pool expenses

  (4.1) Where a taxpayer ceases at any time after February 27, 2000 to be resident in Canada, a particular taxation year of the taxpayer ends after that time and the taxpayer was non-resident throughout the period (in this subsection referred to as the “non-resident period”) that begins at that time and ends at the end of the particular year,

  • (a) in computing the taxpayer’s taxable income earned in Canada for the particular year, there may be deducted each amount that would be permitted to be deducted in computing the taxpayer’s income for the particular year under subsection 66(4) or 66.21(4) if

    • (i) subsection 66(4) were read without reference to the words “who is resident throughout a taxation year in Canada” and as if the amount determined under subparagraph 66(4)(b)(ii) were nil, and

    • (ii) subsection 66.21(4) were read without reference to the words “throughout which the taxpayer is resident in Canada” and as if the amounts determined under subparagraph 66.21(4)(a)(ii) and paragraph 66.21(4)(b) were nil; and

  • (b) an amount deducted under this subsection in computing the taxpayer’s taxable income earned in Canada for the particular year is deemed, for the purpose of applying subsection 66(4) or 66.21(4), as the case may be, to a subsequent taxation year, to have been deducted in computing the taxpayer’s income for the particular year.

Marginal note:Disposition by non-resident person of certain property

• 116. (1) If a non-resident person proposes to dispose of any taxable Canadian property (other than property described in subsection (5.2) and excluded property) the non-resident person may, at any time before the disposition, send to the Minister a notice setting out

• Marginal note:Gifts, etc.

  (5.1) If a non-resident person has disposed of or proposes to dispose of a life insurance policy in Canada, a Canadian resource property or a taxable Canadian property other than

• Marginal note:Certificates for dispositions

  (5.2) If a non-resident person has, in respect of a disposition or proposed disposition to a taxpayer in a taxation year of property (other than excluded property) that is a life insurance policy in Canada, a Canadian resource property, a property (other than capital property) that is real property situated in Canada, a timber resource property, depreciable property that is a taxable Canadian property or any interest in or option in respect of a property to which this subsection applies (whether or not that property exists),

• (a) a property that is a taxable Canadian property solely because a provision of this Act deems it to be a taxable Canadian property;

• (a.1) a property (other than real property situated in Canada, a Canadian resource property or a timber resource property) that is described in an inventory of a business carried on in Canada by the person;

• (b) a share of a class of shares of the capital stock of a corporation that is listed on a prescribed stock exchange;

• (e) property of a non-resident insurer that

  • (i) is licensed or otherwise authorized under the laws of Canada or a province to carry on an insurance business in Canada, and

  • (ii) carries on an insurance business, within the meaning of subsection 138(1) of the Act, in Canada;

• (f) property of an authorized foreign bank that is used or held in the course of the bank’s Canadian banking business;

• (g) an option in respect of property referred to in any of paragraphs (a) to (f) whether or not such property is in existence; and

• (h) an interest in property referred to in any of paragraphs (a) to (g).

• Marginal note:Rate for 2000

  (2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, (in this subdivision referred to as the “amount taxable”) for the 2000 taxation year is

  • (a) 17% of the amount taxable, if the amount taxable does not exceed $30,004;

  • (b) $5,101 plus 25% of the amount by which the amount taxable exceeds $30,004, if the amount taxable exceeds $30,004 and does not exceed $60,009; and

  • (c) $12,602 plus 29% of the amount by which the amount taxable exceeds $60,009, if the amount taxable exceeds $60,009.

• Marginal note:Rates for years after 2000

  (2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be, (in this subdivision referred to as the “amount taxable”) for a taxation year is

  • (a) 16% of the amount taxable, if the amount taxable does not exceed $30,754;

  • (b) $4,921 plus 22% of the amount by which the amount taxable exceeds $30,754, if the amount taxable exceeds $30,754 and does not exceed $61,509;

  • (b.1) $11,687 plus 26% of the amount by which the amount taxable exceeds $61,509, if the amount taxable exceeds $61,509 and does not exceed $100,000; and

  • (c) $21,695 plus 29% of the amount by which the amount taxable exceeds $100,000, if the amount taxable exceeds $100,000.

• Marginal note:Minimum thresholds for 2004

  (3) Each of the amounts of $30,754, $61,509 and $100,000 referred to in subsection (2) is deemed, for the purposes of applying subsection (2) to the 2004 taxation year, to be the greater of

  • (a) the amount that would be used for the 2004 taxation year if this section were read without reference to this subsection, and

  • (b) in the case of

    • (i) the amount of $30,754, $35,000,

    • (ii) the amount of $61,509, $70,000, and

    • (iii) the amount of $100,000, $113,804.

• (B) resident in Canada and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or of the individual’s spouse or common-law partner, and

the amount determined by the formula

the amount determined by the formula

• Marginal note:Minimum amounts for 2004

  (3.1) Each of the amounts of $7,131, $6,055 and $606 referred to in paragraphs (a) to (c) of the description of B in subsection (1) is deemed, for the 2004 taxation year, to be the greater of

  • (a) the amount in respect thereof that would be used for that year if this section were read without reference to this subsection, and

  • (b) in the case of

    • (i) the amounts of $7,131, $8,000,

    • (ii) the amounts of $6,055, $6,800, and

    • (iii) the amounts of $606, $680.

“total ecological gifts”

« total des dons de biens écosensibles »

“total ecological gifts” of an individual for a taxation year means the total of all amounts each of which is the fair market value of a gift (other than a gift the fair market value of which is included in the total cultural gifts of the individual for the year) of land, including a servitude for the use and benefit of a dominant land, a covenant or an easement, the fair market value of which is certified by the Minister of the Environment and that is certified by that Minister, or a person designated by that Minister, to be ecologically sensitive land, the conservation and protection of which is, in the opinion of that Minister, or that person, important to the preservation of Canada’s environmental heritage, which gift was made by the individual in the year or in any of the five immediately preceding taxation years to

• Marginal note:Proof of gift

  (2) A gift shall not be included in the total charitable gifts, total Crown gifts, total cultural gifts or total ecological gifts of an individual unless the making of the gift is proven by filing with the Minister

  • (a) a receipt for the gift that contains prescribed information;

  • (b) in the case of a gift described in the definition “total cultural gifts” in subsection (1), the certificate issued under subsection 33(1) of the Cultural Property Export and Import Act; and

  • (c) in the case of a gift described in the definition “total ecological gifts” in subsection (1), both certificates referred to in that definition.

• Marginal note:Gift in year of death

  (4) Subject to subsection (13), a gift made by an individual in the particular taxation year in which the individual dies (including, for greater certainty, a gift otherwise deemed by subsection (5), (5.2), (5.3), (7), (7.1), (13) or (15) to have been so made) is deemed, for the purpose of this section other than this subsection, to have been made by the individual in the preceding taxation year, and not in the particular year, to the extent that an amount in respect of the gift is not deducted in computing the individual’s tax payable under this Part for the particular year.

• Marginal note:Direct designation — insurance proceeds

  (5.1) Subsection (5.2) applies to an individual in respect of a life insurance policy where

  • (a) the policy is a life insurance policy under which, immediately before the individual’s death, the individual’s life was insured;

  • (b) a transfer of money, or a transfer by means of a negotiable instrument, is made as a consequence of the individual’s death and solely because of the obligations under the policy, from an insurer to a qualified donee (other than a transfer the amount of which is not included in computing the income of the individual or the individual’s estate for any taxation year but would have been included in computing the income of the individual or the individual’s estate for a taxation year if the transfer had been made to the individual’s legal representative for the benefit of the individual’s estate and this Act were read without reference to subsection 70(3));

  • (c) immediately before the individual’s death,

    • (i) the individual’s consent would have been required to change the recipient of the transfer described in paragraph (b), and

    • (ii) the donee was neither a policyholder under the policy, nor an assignee of the individual’s interest under the policy; and

  • (d) the transfer occurs within the 36 month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances).

• Marginal note:Deemed gift — subsection (5.1)

  (5.2) Where this subsection applies,

  • (a) for the purpose of this section (other than subsection (5.1) and this paragraph), the transfer described in subsection (5.1) is deemed to be a gift made, immediately before the individual’s death, by the individual to the qualified donee referred to in subsection (5.1); and

  • (b) the fair market value of the gift is deemed to be the fair market value, at the time of the individual’s death, of the right to that transfer (determined without reference to any risk of default with regard to obligations of the insurer).

• Marginal note:Direct designation — RRSPs and RRIFs

  (5.3) Where as a consequence of an individual’s death, a transfer of money, or a transfer by means of a negotiable instrument, is made, from a registered retirement savings plan or registered retirement income fund (other than a plan or fund of which a licensed annuities provider is the issuer or carrier, as the case may be) to a qualified donee, solely because of the donee’s interest as a beneficiary under the plan or fund, the individual was the annuitant (within the meaning assigned by subsection 146(1) or 146.3(1)) under the plan or fund immediately before the individual’s death and the transfer occurs within the 36-month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances),

  • (a) for the purposes of this section (other than this paragraph), the transfer is deemed to be a gift made, immediately before the individual’s death, by the individual to the donee; and

  • (b) the fair market value of the gift is deemed to be the fair market value, at the time of the individual’s death, of the right to the transfer (determined without reference to any risk of default with regard to the obligations of the issuer of the plan or the carrier of the fund).

and the fair market value of the property otherwise determined at that time exceeds its adjusted cost base to the individual, such amount, not greater than the fair market value and not less than the adjusted cost base to the individual of the property at that time, as the individual or the individual’s legal representative designates in the individual’s return of income under section 150 for the year in which the gift is made is, if the making of the gift is proven by filing with the Minister a receipt containing prescribed information, deemed to be the individual’s proceeds of disposition of the property and, for the purposes of subsection (1), the fair market value of the gift made by the individual.

• Marginal note:Gifts of art

  (7) Except where subsection (7.1) applies, where at any time, whether by the individual’s will or otherwise, an individual makes a gift described in the definition “total charitable gifts” or “total Crown gifts” in subsection (1) of a work of art that was

  • (a) created by the individual and that is property in the individual’s inventory, or

  • (b) acquired under circumstances where subsection 70(3) applied,

  and at that time the fair market value of the work of art exceeds its cost amount to the individual, the following rules apply:

  • (c) where the gift is made as a consequence of the death of the individual, the gift is deemed to have been made immediately before the death, and

  • (d) the amount, not greater than that fair market value at the time the gift is made and not less than the cost amount of the property to the individual, that is designated in the individual’s return of income under section 150 for the year in which the gift is made is, if the making of the gift is proven by filing with the Minister a receipt containing prescribed information, deemed to be the individual’s proceeds of disposition of the work of art and, for the purposes of subsection (1), the fair market value of the gift made by the individual.

• Marginal note:Gifts of cultural property

  (7.1) Where at any particular time, whether by the individual’s will or otherwise, an individual makes a gift described in the definition “total cultural gifts” in subsection (1) of a work of art that was

  • (a) created by the individual and that is property in the individual’s inventory, or

  • (b) acquired under circumstances where subsection 70(3) applied,

  and at that time the fair market value of the work of art exceeds its cost amount to the individual, the following rules apply:

  • (c) where the gift is made as a consequence of the death of the individual, the individual is deemed to have made the gift immediately before the death, and

  • (d) the individual is deemed to have received at the particular time proceeds of disposition in respect of the gift equal to its cost amount to the individual at that time.

• Marginal note:Determination of fair market value

  (10.1) For the purposes of subparagraph 69(1)(b)(ii), subsection 70(5) and sections 110.1, 207.31 and this section, where at any time the Canadian Cultural Property Export Review Board or the Minister of the Environment determines or redetermines an amount to be the fair market value of a property that is the subject of a gift described in paragraph 110.1(1)(a), or in the definition “total charitable gifts” in subsection (1), made by a taxpayer within the two-year period that begins at that time, an amount equal to the last amount so determined or redetermined within the period is deemed to be the fair market value of the gift at the time the gift was made and, subject to subsections (6), (7), (7.1) and 110.1(3), to be the taxpayer’s proceeds of disposition of the gift.

• Marginal note:Request for determination by the Minister of the Environment

  (10.2) Where a person disposes or proposes to dispose of a property that would, if the disposition were made and the certificates described in paragraph 110.1(1)(d) or in the definition “total ecological gifts” in subsection (1) were issued by the Minister of the Environment, be a gift described in those provisions, the person may request, by notice in writing to that Minister, a determination of the fair market value of the property.

• Marginal note:Duty of Minister of the Environment

  (10.3) In response to a request made under subsection (10.2), the Minister of the Environment shall with all due dispatch make a determination in accordance with subsection (12) or 110.1(5), as the case may be, of the fair market value of the property referred to in that request and give notice of the determination in writing to the person who has disposed of, or who proposes to dispose of, the property, except that no such determination shall be made if the request is received by that Minister after three years after the end of the person’s taxation year in which the disposition occurred.

• Marginal note:Ecological gifts — redetermination

  (10.4) Where the Minister of the Environment has, under subsection (10.3), notified a person of the amount determined by that Minister to be the fair market value of a property in respect of its disposition or proposed disposition,

  • (a) that Minister shall, on receipt of a written request made by the person on or before the day that is 90 days after the day that the person was so notified of the first such determination, with all due dispatch confirm or redetermine the fair market value;

  • (b) that Minister may, on that Minister’s own initiative, at any time redetermine the fair market value;

  • (c) that Minister shall in either case notify the person in writing of that Minister’s confirmation or redetermination; and

  • (d) any such redetermination is deemed to replace all preceding determinations and redeterminations of the fair market value of that property from the time at which the first such determination was made.

• Marginal note:Certificate of Fair Market Value

  (10.5) Where the Minister of the Environment determines under subsection (10.3) the fair market value of a property, or redetermines that value under subsection (10.4), and the property has been disposed of to a qualified donee described in paragraph 110.1(1)(d) or in the definition “total ecological gifts” in subsection (1), that Minister shall issue to the person who made the disposition a certificate that states the fair market value of the property so determined or redetermined and, where more than one certificate has been so issued, the last certificate is deemed to replace all preceding certificates from the time at which the first certificate was issued.

• Marginal note:Assessments

  (11) Notwithstanding subsections 152(4) to (5), such assessments or reassessments of a taxpayer’s tax, interest or penalties payable under this Act for any taxation year shall be made as are necessary to give effect

  • (a) to a certificate issued under subsection 33(1) of the Cultural Property Export and Import Act or to a decision of a court resulting from an appeal made pursuant to section 33.1 of that Act; or

  • (b) to a certificate issued under subsection (10.5) or to a decision of a court resulting from an appeal made pursuant to subsection 169(1.1).

• Marginal note:Ecological gifts

  (12) For the purpose of applying subparagraph 69(1)(b)(ii), subsection 70(5), section 207.31 and this section in respect of a gift described in the definition “total ecological gifts” in subsection (1) that is made by a taxpayer and that is a servitude, covenant or easement to which land is subject, the greater of

  • (a) the fair market value otherwise determined of the gift, and

  • (b) the amount by which the fair market value of the land is reduced as a result of the making of the gift

  is deemed to be the fair market value (or, for the purpose of subsection (6), the fair market value otherwise determined) of the gift at the time the gift was made and, subject to subsection (6), to be the taxpayer’s proceeds of disposition of the gift.

• Marginal note:Ecological gifts

  (12) For the purposes of applying subparagraph 69(1)(b)(ii), subsection 70(5), this section and section 207.31 in respect of a gift described in the definition “total ecological gifts” in subsection (1) that is made by an individual, the amount that is the fair market value (or, for the purpose of subsection (6), the fair market value otherwise determined) of the gift at the time the gift was made and, subject to subsection (6), the individual’s proceeds of disposition of the gift, is deemed to be the amount determined by the Minister of the Environment to be

  • (a) where the gift is land, the fair market value of the gift; or

  • (b) where the gift is a servitude, covenant or easement to which land is subject, the greater of

    • (i) the fair market value otherwise determined of the gift, and

    • (ii) the amount by which the fair market value of the land is reduced as a result of the making of the gift.