Budget Implementation Act, 2007 (S.C. 2007, c. 29)
Full Document:
Assented to 2007-06-22
25. (1) Paragraph 198(6)(d) of the Act is replaced by the following:
(d) the cash surrender value of the policy (exclusive of accumulated dividends) is or will be, at or before the end of the year in which the insured person attains 71 years of age, if all premiums under the policy are paid, not less than the maximum total amount (exclusive of accumulated dividends) payable by the insurer under the policy, and
(2) Subsection (1) applies after 2006.
26. (1) The portion of the definition “qualified investment” in section 204 of the Act before paragraph (a) is replaced by the following:
“qualified investment”
« placement admissible »
“qualified investment” for a trust governed by a deferred profit sharing plan or revoked plan means, with the exception of excluded property in relation to the trust,
(2) Paragraphs (b) to (d) of the definition “qualified investment” in section 204 of the Act are replaced by the following:
(b) debt obligations described in clause 212(1)(b)(ii)(C),
(c) debt obligations issued by
(i) a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a prescribed stock exchange in Canada,
(ii) a corporation the shares of which are listed on a prescribed stock exchange outside Canada, or
(iii) an authorized foreign bank and payable at a branch in Canada of the bank,
(c.1) debt obligations that, at the time of acquisition by the trust, met the following criteria, namely,
(i) the debt obligations had an investment grade rating with a prescribed credit rating agency, and
(ii) either
(A) the debt obligations were issued as part of a single issue of debt of at least $25 million, or
(B) in the case of debt obligations that are issued on a continuous basis, the issuer of the debt obligations had issued and outstanding debt of that type of at least $25 million,
(d) securities (other than futures contracts or other derivative instruments in respect of which the holder’s risk of loss may exceed the holder’s cost) that are listed on a prescribed stock exchange,
(3) The definition “qualified investment” in section 204 of the Act is amended by adding the word “and” at the end of paragraph (g) and by replacing paragraphs (h) and (i) with the following:
(h) prescribed investments;
(4) Section 204 of the Act is amended by adding the following in alphabetical order:
“debt obligation”
« titre de créance »
“debt obligation” means a bond, debenture, note or similar obligation;
“excluded property”
« bien exclu »
“excluded property”, in relation to a trust governed by a deferred profit sharing plan or revoked plan, means a debt obligation or bankers’ acceptance issued by
(a) an employer by whom payments are made in trust to a trustee under the plan for the benefit of beneficiaries under the plan, or
(b) a corporation with whom that employer does not deal at arm’s length;
(5) Subsections (1) to (4) apply in determining whether a property is, at any time after March 18, 2007, a qualified investment.
27. (1) The definitions “excess amount” and “RESP lifetime limit” in subsection 204.9(1) of the Act are replaced by the following:
“excess amount”
« excédent »
“excess amount” for a year at any time in respect of an individual means
(a) for years before 2007, the amount, if any, by which the total of all contributions made after February 20, 1990 in the year and before that time into all registered education savings plans by or on behalf of all subscribers in respect of the individual exceeds the lesser of
(i) the RESP annual limit for the year, and
(ii) the amount, if any, by which the RESP lifetime limit for the year exceeds the total of all contributions made into registered education savings plans by or on behalf of all subscribers in respect of the individual in all preceding years; and
(b) for years after 2006, the amount, if any, by which the total of all contributions made in the year and before that time into all registered education savings plans by or on behalf of all subscribers in respect of the individual exceeds the amount, if any, by which
(i) the RESP lifetime limit for the year
exceeds
(ii) the total of all contributions made into registered education savings plans by or on behalf of all subscribers in respect of the individual in all preceding years.
“RESP lifetime limit”
« plafond cumulatif de REEE »
“RESP lifetime limit” for a year means
(a) for 1990 to 1995, $31,500;
(b) for 1996 to 2006, $42,000; and
(c) for 2007 and subsequent years, $50,000.
(2) Subsection (1) applies for the purpose of determining tax under Part X.4 of the Act for months that are after 2006.
28. (1) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
“Canadian real, immovable or resource property”
« bien canadien immeuble, réel ou minier »
“Canadian real, immovable or resource property” means
(a) a property that would, if this Act were read without reference to the definition “real or immovable property” in subsection 122.1(1), be a real or immovable property situated in Canada,
(b) a Canadian resource property,
(c) a timber resource property,
(d) a share of the capital stock of a corporation, an income or a capital interest in a trust or an interest in a partnership, if more than 50% of the fair market value of the share or interest is derived directly or indirectly from one or any combination of properties described in paragraphs (a) to (c), or
(e) any right to or interest in — or, for civil law, any right to or in — any property described in any of paragraphs (a) to (d);
“Canadian resident partnership”
« société de personnes résidant au Canada »
“Canadian resident partnership” means a partnership that, at any time in respect of which the expression is relevant,
(a) is a Canadian partnership,
(b) would, if it were a corporation, be resident in Canada (including, for greater certainty, a partnership that has its central management and control in Canada), or
(c) was formed under the laws of a province;
“net corporate income tax rate”
« taux net d’imposition du revenu des sociétés »
“net corporate income tax rate” in respect of a SIFT trust or SIFT partnership for a taxation year means the amount, expressed as a decimal fraction, by which
(a) the percentage rate of tax provided under paragraph 123(1)(a) for the taxation year
exceeds
(b) the total of
(i) the percentage that would, if the SIFT trust or SIFT partnership were a corporation, be its general rate reduction percent- age, within the meaning assigned by subsection 123.4(1), for the taxation year, and
(ii) the percentage deduction from tax provided under subsection 124(1) for the taxation year;
“non-portfolio property”
« bien hors portefeuille »
“non-portfolio property” has the same meaning as in subsection 122.1(1);
“provincial SIFT tax factor”
« facteur fiscal provincial »
“provincial SIFT tax factor” for a taxation year means the decimal fraction 0.13;
“public market”
« marché public »
“public market” has the same meaning as in subsection 122.1(1);
“SIFT partnership”
« société de personnes intermédiaire de placement déterminée »
“SIFT partnership” has the meaning assigned by section 197;
“SIFT partnership balance-due day”
« date d’échéance du solde »
“SIFT partnership balance-due day”, in respect of a taxation year of a SIFT partnership, means the day on or before which the partnership is required to file a return for the taxation year under section 229 of the Income Tax Regulations;
“SIFT trust”
« fiducie intermédiaire de placement déterminée »
“SIFT trust” has the meaning assigned by section 122.1;
(2) Subsection (1) is deemed to have come into force on October 31, 2006.
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