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

Assented to 2001-06-14

  •  (1) Subsections 159(4) and (4.1) of the Act are repealed.

  • (2) Subsection 159(6.1) of the Act is replaced by the following:

    • Marginal note:Election where subsection 104(4) applicable

      (6.1) Where a time determined under paragraph 104(4)(a), (a.1), (a.2), (a.3), (a.4), (b) or (c) in respect of a trust occurs in a taxation year of the trust and the trust so elects and furnishes to the Minister security acceptable to the Minister for payment of any tax the payment of which is deferred by the election, notwithstanding any other provision of this Part respecting the time within which payment shall be made of the tax payable under this Part by the trust for the year, all or any portion of the part of that tax that is equal to the amount, if any, by which that tax exceeds the amount that that tax would be if this Act were read without reference to paragraph 104(4)(a), (a.1), (a.2), (a.3), (a.4), (b) or (c), as the case may be, may be paid in the number (not exceeding 10) of equal consecutive annual instalments that is specified by the trust in the election, the first instalment of which shall be paid on or before the day on or before which payment of that tax would, but for the election, have been required to be made and each subsequent instalment of which shall be paid on or before the next following anniversary of that day.

  • (3) Subsection (1) applies to individuals who cease to be resident in Canada after October 1, 1996.

  • (4) Subsection (2) applies to the 2000 and subsequent taxation years.

  •  (1) Paragraph 161(7)(a) of the Act is amended by adding the following before subparagraph (ii):

    • (i) any amount deducted under section 119 in respect of a disposition in a subsequent taxation year,

  • (2) Subparagraph 161(7)(a)(iv.1) of the Act is replaced by the following:

    • (iv.1) any amount deducted 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,

  • (3) Paragraph 161(7)(a) of the Act is amended by striking out the word “and” at the end of subparagraph (ix) and by adding the following after subparagraph (x):

    • (xi) any amount deducted under any of subsections 128.1(6) to (8) from the taxpayer’s proceeds of disposition of a property because of an election made in a return of income for a subsequent taxation year; and

  • (4) Subsections (1) to (3) apply to taxation years that end after October 1, 1996.

  •  (1) Paragraphs 164(1)(a) and (b) of the Act are replaced by the following:

    • (a) may,

      • (i) before mailing the notice of assessment for the year, where the taxpayer is a qualifying corporation (as defined in subsection 127.1(2)) and claims in its return of income for the year to have paid an amount on account of its tax payable under this Part for the year because of subsection 127.1(1) in respect of its refundable investment tax credit (as defined in subsection 127.1(2)), refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount by which the total determined under paragraph (f) of the definition “refundable investment tax credit” in subsection 127.1(2) in respect of the taxpayer for the year exceeds the total determined under paragraph (g) of that definition in respect of the taxpayer for the year,

      • (ii) before mailing the notice of assessment for the year, where the taxpayer is a qualified corporation (as defined in subsection 125.4(1)) or an eligible production corporation (as defined in subsection 125.5(1)) and an amount is deemed under subsection 125.4(3) or 125.5(3) to have been paid on account of its tax payable under this Part for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the total of those amounts so deemed to have been paid, and

      • (iii) on or after mailing the notice of assessment for the year, refund any overpayment for the year, to the extent that the overpayment was not refunded pursuant to subparagraph (i) or (ii); and

    • (b) shall, with all due dispatch, make the refund referred to in subparagraph (a)(iii) after mailing the notice of assessment if application for it is made in writing by the taxpayer within the period within which the Minister would be allowed under subsection 152(4) to assess tax payable under this Part by the taxpayer for the year if that subsection were read without reference to paragraph 152(4)(a).

  • (2) Subsection 164(5) of the Act is amended by adding the following after paragraph (a):

    • (a.1) any amount deducted under section 119 in respect of the disposition of a taxable Canadian property in a subsequent taxation year,

  • (3) Paragraph 164(5)(e) of the Act is replaced by the following:

    • (e) the deduction of an amount 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,

  • (4) Subsection 164(5) of the Act is amended by adding the following after paragraph (h.01):

    • (h.02) the deduction under any of subsections 128.1(6) to (8) of an amount from the taxpayer’s proceeds of disposition of a property, because of an election made in a return of income for a subsequent taxation year,

  • (5) Subsection 164(5.1) of the Act is replaced by the following:

    • Marginal note:Interest — disputed amounts

      (5.1) Where a portion of a repayment made under subsection (1.1) or (4.1), or an amount applied under subsection (2) in respect of a repayment, can reasonably be regarded as being in respect of a claim made by the taxpayer in an objection to or appeal from an assessment of tax for a taxation year for a deduction or exclusion described in subsection (5) in respect of a subsequent taxation year, interest shall not be paid or applied on the portion for any part of a period that is before the latest of the dates described in paragraphs (5)(i) to (l).

  • (6) Subparagraph 164(6.1)(a)(iii) of the Act is amended by replacing the reference to the fraction “1/4” with a reference to the fraction “1/2”.

  • (7) Subsection (1) applies to the 1999 and subsequent taxation years.

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

  • (9) Subsection (6) applies to deaths that occur after February 27, 2000 except that, for deaths that occurred after February 27, 2000 and before October 18, 2000, the reference to the fraction “1/2” in subparagraph 164(6.1)(a)(iii) of the Act, as enacted by subsection (6), shall be read as a reference to the fraction “1/3”.

  •  (1) Subsection 165(2.1) of the Act is replaced by the following:

    • Marginal note:Application

      (2.1) Notwithstanding any other provision of this Act, paragraph (1)(a) shall apply only in respect of assessments, determinations and redeterminations under this Part and Part I.2.

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

  •  (1) Section 169 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Ecological gifts

      (1.1) Where at any particular time a taxpayer has disposed of a property, the fair market value of which has been confirmed or redetermined by the Minister of the Environment under subsection 118.1(10.4), the taxpayer may, within 90 days after the day on which that Minister has issued a certificate under subsection 118.1(10.5), appeal the confirmation or redetermination to the Tax Court of Canada.

  • (2) Subsection (1) applies in respect of gifts made after February 27, 2000 except that, where a certificate has been issued under subsection 118.1(10.5) of the Act, as enacted by subsection 94(7), before this Act receives royal assent, subsection 169(1.1) of the Act, as enacted by subsection (1), shall be read as follows:

    • (1.1) Where at any particular time a taxpayer has disposed of a property, the fair market value of which has been confirmed or redetermined by the Minister of the Environment under subsection 118.1(10.4), the taxpayer may, within 90 days after the day on which the Income Tax Amendments Act, 2000 receives royal assent, appeal the confirmation or redetermination to the Tax Court of Canada.

  •  (1) Section 171 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Ecological gifts

      (1.1) On an appeal under subsection 169(1.1), the Tax Court of Canada may confirm or vary the amount determined to be the fair market value of a property and the value determined by the Court is deemed to be the fair market value of the property determined by the Minister of the Environment.

  • (2) Subsection (1) applies in respect of gifts made after February 27, 2000.

  •  (1) Subsection 180.1(1) of the Act is replaced by the following:

    Marginal note:Individual surtax
    • 180.1 (1) Every individual shall pay a tax under this Part for each taxation year equal to 5% of the amount, if any, by which the tax payable under Part I by the individual for the year exceeds $15,500.

  • (2) Subsection 180.1(2) of the Act is replaced by the following:

    • Marginal note:Former resident credit for tax paid

      (1.4) There may be deducted from the tax otherwise payable under this Part by an individual for a taxation year (computed without reference to subsections (1.1) and (1.2)) the amount, if any, by which

      • (a) the amount that would be deductible under section 119 in computing the individual’s tax payable under Part I for the year if, in applying for that purpose paragraph (a) of the definition “tax for the year otherwise payable under this Part” in subsection 126(7), the reference in that paragraph to “tax payable under this Part for the year” were read as a reference to “the total of taxes that, but for subsections 180.1(1.1), (1.2) and (1.4), would be payable under this Part and Part I.1 for the year”

      exceeds

      • (b) the amount deductible under section 119 in computing the individual’s tax payable under Part I for the year.

    • Marginal note:Meaning of tax payable under Part I

      (2) For the purposes of subsection (1), the tax payable under Part I by an individual for a taxation year is the amount, if any, by which

      • (a) the amount that would be the individual’s tax payable under that Part for the year if that Part were read without reference to section 119, subsection 120(1) and sections 122.3, 126, 127, 127.4 and 127.54

      exceeds

      • (b) if the individual was throughout the year a mutual fund trust, the least of the amounts determined under paragraphs (a), (b) and (c) of the description of A in the definition “refundable capital gains tax on hand” in subsection 132(4) in respect of the trust for the year, and

      • (c) in any other case, nil.

  • (3) Subsection (1) applies to the 2000 taxation year.

  • (4) Subsection (2) applies after October 1, 1996.

 
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