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Income Tax Amendments Act, 2000 (S.C. 2001, c. 17)

Assented to 2001-06-14

 The portion of subsection 149.1(6.4) of the Act after paragraph (d) is replaced by the following:

applies in prescribed form to the Minister of National Revenue for registration, that Minister may register the organization for the purposes of this Act and, where the organization so applies or is so registered, this section, paragraph 38(a.1), sections 110.1, 118.1, 168, 172, 180 and 230, subsection 241(3.2) and Part V apply, with such modifications as the circumstances require, to the organization as if it were an applicant for registration as a charitable organization or as if it were a registered charity that is designated as a charitable organization, as the case may be.

  •  (1) Clause 150(1)(a)(i)(B) of the Act is replaced by the following:

    • (B) carries on business in Canada, unless the corporation’s only revenue from carrying on business in Canada in the year consists of amounts in respect of which tax was payable by the corporation under subsection 212(5.1),

  • (2) Subsection (1) applies to the 2001 and subsequent taxation years.

  •  (1) Subsection 150.1(5) of the Act is replaced by the following:

    • Marginal note:Application to other Parts

      (5) This section also applies to Parts I.2 to XIII, with such modifications as the circumstances require.

  • (2) Subsection (1) applies to the 2001 and subsequent taxation years.

  •  (1) Paragraph 152(4)(b) of the Act is amended by adding the following after subparagraph (iii):

    • (iii.1) is made, if the taxpayer is non-resident and carries on a business in Canada, as a consequence of

      • (A) an allocation by the taxpayer of revenues or expenses as amounts in respect of the Canadian business (other than revenues and expenses that relate solely to the Canadian business, that are recorded in the books of account of the Canadian business, and the documentation in support of which is kept in Canada), or

      • (B) a notional transaction between the taxpayer and its Canadian business, where the transaction is recognized for the purposes of the computation of an amount under this Act or an applicable tax treaty.

  • (2) Paragraph 152(6)(c.1) of the Act is replaced by the following:

    • (c.1) a deduction under section 119 in respect of a disposition in a subsequent taxation year,

  • (3) Subsection 152(6) of the Act is amended by adding the following after paragraph (f):

    • (f.1) a deduction under subsection 126(2) in respect of an unused foreign tax credit (within the meaning assigned by subsection 126(7)), or under subsection 126(2.21) or (2.22) in respect of foreign taxes paid, for a subsequent taxation year,

    • (f.2) a deduction under subsection 128.1(8) as a result of a disposition in a subsequent taxation year,

  • (4) Section 152 of the Act is amended by adding the following after subsection (6):

    • Marginal note:Reassessment where amount included in income under subsection 91(1) is reduced

      (6.1) Where

      • (a) a taxpayer has filed for a particular taxation year the return of income required by section 150,

      • (b) the amount included in computing the taxpayer’s income for the particular year under subsection 91(1) is subsequently reduced because of a reduction in the foreign accrual property income of a foreign affiliate of the taxpayer for a taxation year of the affiliate that ends in the particular year and is

        • (i) attributable to the amount prescribed to be the deductible loss of the affiliate for the year that arose in a subsequent year of the affiliate that ends in a subsequent taxation year of the taxpayer, and

        • (ii) included in the description of F of the definition “foreign accrual property income” in subsection 95(1) in respect of the affiliate for the year, and

      • (c) the taxpayer has filed with the Minister, on or before the filing-due-date for the taxpayer’s subsequent taxation year, a prescribed form amending the return,

      the Minister shall reassess the taxpayer’s tax for any relevant taxation year (other than a taxation year preceding the particular taxation year) in order to take into account the reduction in the amount included under subsection 91(1) in computing the income of the taxpayer for the year.

  • (5) Section 152 of the Act is amended by adding the following after subsection (9):

    • Marginal note:Where tax deemed not to be assessed

      (10) Notwithstanding any other provision of this section, an amount of tax for which adequate security is accepted by the Minister under subsection 220(4.5) or (4.6) is, until the end of the period during which the security is accepted by the Minister, deemed for the purpose of any agreement entered into by or on behalf of the Government of Canada under section 7 of the Federal-Provincial Fiscal Arrangements Act not to have been assessed under this Act.

  • (6) Subsection (1) applies to the 2000 and subsequent taxation years.

  • (7) Subsections (2), (3) and (5) apply to taxation years that end after October 1, 1996.

  • (8) In respect of

    • (a) a deduction under section 119 of the Act, as enacted by subsection 102(2), or an adjustment under subsection 128.1(8) of the Act, as enacted by subsection 123(5), in respect of a disposition by a taxpayer, or

    • (b) a deduction under subsection 126(2.21) or (2.22) of the Act, as enacted by subsection 117(6), in respect of foreign taxes paid by a taxpayer,

    the taxpayer is deemed to have filed the prescribed form described in subsection 152(6) of the Act in a timely manner if the taxpayer files the form with the Minister of National Revenue on or before the later of the day on or before which the taxpayer would, but for this subsection, be required to file the form and the taxpayer’s filing-due date for the taxation year that includes the day on which this Act receives royal assent.

  • (9) Subsection (4) applies to taxation years of foreign affiliates that begin after November 1999.

  •  (1) Subsection (2) applies in respect of an individual if, at any particular time after October 1, 1996 and before the day that is two years before the day on which this Act receives royal assent,

    • (a) the individual ceased to be resident in Canada; or

    • (b) where the individual is a trust, the trust made a distribution of property to which subsection 107(2) of the Act does not apply solely because of the application of subsection 107(5) of the Act, as enacted by subsection 80(18).

  • (2) Where this subsection applies in respect of an individual, for the purposes of any reassessment of the individual’s tax, interest or penalties, for any year, that is necessary to take into account the application of this Act in respect of the cessation of residence or the distribution referred to in subsection (1), the individual’s normal reassessment period under subsection 152(3.1) of the Act for any taxation year that ends at or after the particular time described in subsection (1) is, notwithstanding subsection 152(3.1) of the Act, deemed to end on the later of

    • (a) the day on which the normal reassessment period for the year would, but for this section, end; and

    • (b) the day that is one year after the day on which this Act receives royal assent.

  •  (1) Paragraph 153(1)(a) of the Act is replaced by the following:

    • (a) salary, wages or other remuneration, other than amounts described in subsection 212(5.1),

  • (2) Paragraph 153(1)(g) of the Act is replaced by the following:

    • (g) fees, commissions or other amounts for services, other than amounts described in subsection 212(5.1),

  • (3) The portion of subsection 153(1) of the Act after paragraph (t) is replaced by the following:

    shall deduct or withhold from the payment the amount determined in accordance with prescribed rules and shall, at the prescribed time, remit that amount to the Receiver General on account of the payee’s tax for the year under this Part or Part XI.3, as the case may be, and, where at that prescribed time the person is a prescribed person, the remittance shall be made to the account of the Receiver General at a designated financial institution.

  • (4) Section 153 of the Act is amended by adding the following after subsection (5):

    • Meaning of “designated financial institution”

      (6) In this section, “designated financial institution” means a corporation that

      • (a) is a bank, other than an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act;

      • (b) is authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

      • (c) is authorized under the laws of Canada or a province to accept deposits from the public and carries on the business of lending money on the security of real estate or investing in mortgages or hypothecs on real estate.

  • (5) Subsections (1) and (2) apply in respect of amounts paid, credited or provided after 2000.

  • (6) Subsections (3) and (4) apply after June 27, 1999.

  •  (1) The description of A in paragraph (b) of the definition “net tax owing” in subsection 156.1(1) of the Act is replaced by the following:

    A 
    is the total of the taxes payable under this Part and Parts I.2 and X.5 by the individual for the year,
  • (2) Subsection (1) applies to the 2001 and subsequent taxation years.

  •  (1) Subparagraph 157(1)(a)(i) of the Act is replaced by the following:

    • (i) on or before the last day of each month in the year, an amount equal to 1/12 of the total of the amounts estimated by it to be the taxes payable by it under this Part and Parts I.3, VI, VI.1 and XIII.1 for the year,

  • (2) The portion of paragraph 157(1)(b) of the Act before subparagraph (i) is replaced by the following:

    • (b) the remainder of the taxes payable by it under this Part and Parts I.3, VI, VI.1 and XIII.1 for the year

  • (3) Subsection 157(2.1) of the Act is replaced by the following:

    • Marginal note:$1,000 threshold

      (2.1) Where

      • (a) the total of the taxes payable under this Part and Parts I.3, VI, VI.1 and XIII.1 by a corporation for a taxation year (determined before taking into consideration the specified future tax consequences for the year), or

      • (b) the corporation’s first instalment base for the year,

      is not more than $1,000, the corporation may, instead of paying the instalments required for the year by paragraph (1)(a), pay to the Receiver General, under paragraph (1)(b), the total of the taxes payable by it under this Part and Parts I.3, VI, VI.1 and XIII.1 for the year.

  • (4) Subsections (1) to (3) apply to the 2001 and subsequent taxation years.

 
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