Budget and Economic Statement Implementation Act, 2007 (S.C. 2007, c. 35)
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Assented to 2007-12-14
PART 4DISABILITY SAVINGS
Amendments Relating to Income Tax
R.S., c. 1 (5th Supp.)Income Tax Act
121. Subsection 212(1) of the Act is amended by adding the following after paragraph (r):
Marginal note:Registered disability savings plan
(r.1) an amount that would, if the non-resident person had been resident in Canada throughout the taxation year in which the amount was paid, be required by paragraph 56(1)(q.1) to be included in computing the non-resident person’s income for the taxation year;
122. Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.4):
(vii.5) to an official solely for the purposes of the administration and enforcement of the Canada Disability Savings Act,
123. (1) Subparagraph (f)(vi) of the definition “disposition” in subsection 248(1) of the Act is replaced by the following:
(vi) if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, an inter vivos trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (in this paragraph having the meaning assigned by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the transferee is the same type of trust, and
(2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
“registered disability savings plan”
« régime enregistré d’épargne- invalidité »
“registered disability savings plan” has the same meaning as in subsection 146.4(1);
124. Section 253.1 of the Act is replaced by the following:
Marginal note:Investments in limited partnerships
253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b), 146.4(5)(b) and 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.
C.R.C., c. 945Income Tax Regulations
125. Subsection 221(2) of the Income Tax Regulations is replaced by the following:
(2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 204 or 205 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form.
126. (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following:
4900. (1) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act, paragraph (h) of the definition “qualified investment” in section 204 of the Act and paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is
(2) Paragraph 4900(1)(c) of the Regulations is replaced by the following:
(c) a share of the capital stock of a mortgage investment corporation that does not hold as part of its property at any time during the calendar year in which the particular time occurs any indebtedness, whether by way of mortgage or otherwise, of a person who is a connected person under the governing plan of the plan trust;
(3) Subparagraph 4900(1)(e)(ii) of the Regulations is replaced by the following:
(ii) the issuer is not a connected person under the governing plan of the plan trust;
(4) The portion of paragraph 4900(1)(g) of the Regulations before subparagraph (i) is replaced by the following:
(g) a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by, or a deposit with, a credit union that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by
(5) The portion of subparagraph 4900(1)(h)(iii) of the Regulations before clause (A) is replaced by the following:
(iii) that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by
(6) Paragraph 4900(1)(i.2) of the Regulations is replaced by the following:
(i.2) indebtedness of a Canadian corporation (other than a corporation that is a connected person under the governing plan of the plan trust) represented by a bankers’ acceptance;
(7) Subparagraph 4900(1)(j)(ii) of the Regulations is replaced by the following:
(ii) the debtor (and any partnership that does not deal at arm’s length with the debtor) is not a connected person under the governing plan of the plan trust;
(8) The portion of paragraph 4900(1)(q) of the Regulations before subparagraph (i) is replaced by the following:
(q) a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) where
(9) The portion of paragraph 4900(1)(r) of the Regulations before subparagraph (i) is replaced by the following:
(r) a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) if
(10) Subsection 4900(5) of the Regulations is replaced by the following:
(5) For the purposes of paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act and paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered education savings plan or a trust governed by a registered disability savings plan at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year.
127. (1) The definition “governing plan” in subsection 4901(2) of the Regulations is replaced by the following:
- “governing plan”
“governing plan” means a registered retirement savings plan, a registered education savings plan, a registered retirement income fund, a registered disability savings plan, a deferred profit sharing plan or a revoked plan; (régime d’encadrement)
(2) Subsection 4901(2) of the Regulations is amended by adding the following in alphabetical order:
- “connected person”
“connected person”, in relation to a governing plan of a plan trust, means a person who is an annuitant, a beneficiary, an employer or a subscriber under, or a holder of, the governing plan and any person who does not deal at arms’s length with that person; (personne rattachée)
Consequential Amendments
1996, c. 23Employment Insurance Act
Marginal note:2006, c. 4, s. 172
128. The definition “income” in section 144 of the Employment Insurance Act is replaced by the following:
“income”
« revenu »
“income” of a person for a period means the amount that would be their income for the period determined under the Income Tax Act if no amount were
(a) deductible under paragraphs 60(v.1), (w), (y) and (z) of that Act,
(b) included in respect of a gain from a disposition of property to which section 79 of that Act applies, or
(c) included under paragraph 56(1)(q.1) or subsection 56(6) of that Act;
R.S., c. O-9Old Age Security Act
Marginal note:2006, c. 4, s. 180
129. Paragraph (e) of the definition “income” in section 2 of the Old Age Security Act is replaced by the following:
(e) there shall be deducted from the person’s income for the year any amount included under paragraph 56(1)(q.1) or subsection 56(6) of the Income Tax Act and there shall be included in the person’s income for the year any amount that may be deducted under paragraph 60(y) or (z) of that Act;
- Date modified: