Budget and Economic Statement Implementation Act, 2007 (S.C. 2007, c. 35)
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Assented to 2007-12-14
PART 4DISABILITY SAVINGS
Coordinating Amendments
Marginal note:Bill C-10
130. Sections 131 to 134 apply if Bill C-10, introduced in the 2nd session of the 39th Parliament and entitled the Income Tax Amendments Act, 2006 (referred to in those sections as the “other Act”), receives royal assent.
131. (1) If section 101 of this Act comes into force before section 47 of the other Act, then paragraph 4(3)(a) of the Income Tax Act is replaced by the following:
(a) subject to paragraph (b), all deductions permitted in computing a taxpayer’s income for a taxation year for the purposes of this Part, except any deduction permitted by any of paragraphs 60(b) to (o), (p), (r) and (v) to (z), shall apply either wholly or in part to a particular source or to sources in a particular place; and
(2) If section 101 of this Act comes into force on the same day as section 47 of the other Act, then that section 47 is deemed to have come into force before that section 101.
(3) The replacement of paragraph 4(3)(a) of the Income Tax Act by the operation of subsection (1) applies in respect of the 2007 and subsequent taxation years.
132. (1) If subsection 25 of the other Act comes into force before section 109 of this Act, then paragraph 107.4(1)(j) of the Income Tax Act is replaced by the following:
(j) if the contributor 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 (as defined 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 particular trust is the same type of trust; and
(2) If section 25 of the other Act comes into force on the same day as section 109 of this Act, then that section 109 is deemed to have come into force before that section 25.
(3) The replacement of paragraph 107.4(1)(j) of the Income Tax Act by the operation of subsection (1) applies in respect of the 2008 and subsequent taxation years.
133. (1) If subsection 130(1) of the other Act comes into force before section 114 of this Act, then
(a) that section 114 is deemed never to have come into force and is repealed; and
(b) paragraph 132.2(3)(h) of the Income Tax Act is replaced by the following:
(h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g);
(2) If section 114 of this Act comes into force before subsection 130(1) of the other Act, then paragraph 132.2(3)(h) of the Income Tax Act is replaced by the following:
(h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g);
(3) If subsection 130(1) of the other Act comes into force on the same day as section 114 of this Act, then that subsection 130(1) is deemed to have come into force before that section 114 and subsection (1) applies as a consequence.
(4) The replacement of paragraph 132.2(3)(h) of the Income Tax Act by the operation of paragraph (1)(b) or subsection (2) or (3) applies in respect of the 2008 and subsequent taxation years.
134. (1) On the first day on which both subsection 191(1) of the other Act and section 124 of this Act are in force, section 253.1 of the Income Tax 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), 146.1(2.1)(c), 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.
(2) The replacement of section 253.1 of the Income Tax Act by the operation of subsection (1) applies in respect of the 2008 and subsequent taxation years.
Application
135. Sections 101 to 129 apply to the 2008 and subsequent taxation years, except that section 101 also applies to the 2007 taxation year.
Canada Disability Savings Act
Enactment of Act
Marginal note:Enactment of Act
136. The Canada Disability Savings Act is enacted as follows:
An Act to encourage savings for persons with disabilities
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Canada Disability Savings Act.
INTERPRETATION
Marginal note:Definitions
2. (1) The following definitions apply in this Act.
“Canada Disability Savings Bond”
« bon canadien pour l’épargne- invalidité »
“Canada Disability Savings Bond” means the bond payable or paid under section 7.
“Canada Disability Savings Grant”
« subvention canadienne pour l’épargne- invalidité »
“Canada Disability Savings Grant” means the grant payable or paid under section 6.
“child tax benefit”
« prestation fiscale pour enfants »
“child tax benefit” means a deemed overpayment under Subdivision a.1 of Division E of Part 1 of the Income Tax Act.
“contribution”
« cotisation »
“contribution” means any amount paid into the registered disability savings plan of a beneficiary in accordance with section 146.4 of the Income Tax Act but does not include
(a) an amount transferred under subsection 146.4(8) of that Act;
(b) any prescribed payment referred to in the definition “contribution” in subsection 146.4(1) of that Act; or
(c) an amount paid into the plan under this Act.
“family income”
« revenu familial »
“family income” means the income determined by the Minister in accordance with the definition “adjusted income” in section 122.6 of the Income Tax Act by using the information provided by the Minister of National Revenue for that purpose.
Marginal note:Income Tax Act expressions
(2) Unless a contrary intention appears, in this Act
(a) the expressions “adjusted income”, “eligible individual” and “qualified dependant” have the same meanings as in section 122.6 of the Income Tax Act;
(b) the expressions “holder”, “issuer” and “registered disability savings plan” have the same meanings as in section 146.4 of that Act; and
(c) any other expression has the same meaning as in that Act.
PURPOSE
Marginal note:Purpose
3. The purpose of this Act is to encourage long term savings through registered disability savings plans to provide for the financial security of persons with severe and prolonged impairments in physical or mental functions.
MINISTER
Marginal note:Designation of Minister
4. The Governor in Council may, by order, designate a minister of the Crown to be “the Minister” for the purposes of this Act.
Marginal note:Informing Canadians
5. The Minister may take any measures that the Minister considers appropriate to make known to Canadians the existence of Canada Disability Savings Grants and Canada Disability Savings Bonds.
PAYMENTS
Marginal note:Canada Disability Savings Grants
6. (1) Subject to this Act and the regulations, on application, the Minister may, in respect of any contribution made to a registered disability savings plan of a beneficiary, pay a Canada Disability Savings Grant into the plan. The grant is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.
Marginal note:Amount of grant
(2) The amount of a Canada Disability Savings Grant that may be paid for a particular year is equal to
(a) 300% of the part of the total contributions made in the particular year that is less than or equal to $500, and 200% of the part of those contributions that is more than $500 but less than or equal to $1,500, if the beneficiary is
(i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to $74,357,
(ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to $74,357, or
(iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or
(b) 100% of the total contributions made in the particular year, up to a maximum of $1,000, in any other case.
Marginal note:Family income
(3) For the purposes of subparagraph (2)(a)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year.
Marginal note:No determination for January
(4) If there has been no determination of eligibility for a child tax benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraph (2)(a)(ii) is the adjusted income used to determine the amount of a child tax benefit for the first month in the particular year in respect of which eligibility has been established.
Marginal note:Beneficiary born in December
(5) In applying subsection (4) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”.
Marginal note:Indexing
(6) The amount of $74,357 referred to in paragraph (2)(a) is to be adjusted, as set out in section 117.1 of the Income Tax Act, for each year after 2007.
Marginal note:Lifetime cap
(7) Not more than $70,000 in Canada Disability Savings Grants may be paid in respect of a beneficiary during their lifetime.
Marginal note:Canada Disability Savings Bonds
7. (1) Subject to this Act and the regulations, on application, the Minister may pay a Canada Disability Savings Bond into a registered disability savings plan of a beneficiary. The bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.
Marginal note:Amount of bond
(2) The amount of a Canada Disability Savings Bond that may be paid for a particular year is
(a) $1,000, if the beneficiary is
(i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to $20,883,
(ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to $20,883, or
(iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or
(b) the amount determined by the formula set out in subsection (4), if the beneficiary is
(i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is more than $20,883 but less than $37,178, or
(ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is more than $20,883 but less than $37,178.
Marginal note:Family income
(3) For the purposes of subparagraphs (2)(a)(i) and (b)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year.
Marginal note:Formula
(4) For the purposes of paragraph (2)(b), the formula is as follows:
$1,000 - [$1,000 × (A - B) / (C - B)]
where
- A
- is, as the case may be, the family income referred to in subparagraph (2)(b)(i) or the adjusted income referred to in subparagraph (2)(b)(ii);
- B
- is $20,883; and
- C
- is $37,178.
Marginal note:Rounding of amounts
(5) If an amount calculated under subsection (4) contains a fraction of a cent, the amount is to be rounded to the nearest whole cent or, if the amount is equidistant from two whole cents, to the higher of them.
Marginal note:No determination for January
(6) If there has been no determination of eligibility for a child tax benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraphs (2)(a)(ii) and (b)(ii) is the adjusted income used to determine the amount of a child tax benefit for the first month in the particular year in respect of which eligibility has been established.
Marginal note:Beneficiary born in December
(7) In applying subsection (6) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”.
Marginal note:Indexing
(8) The amounts of $20,883 and $37,178 referred to in subsections (2) and (4) are to be adjusted, as set out in section 117.1 of the Income Tax Act, for each year after 2007.
Marginal note:Lifetime cap
(9) Not more than $20,000 in Canada Disability Savings Bonds may be paid in respect of a beneficiary during their lifetime.
Marginal note:Payment
8. Neither a Canada Disability Savings Grant nor a Canada Disability Savings Bond may be paid unless
(a) the Minister is provided with, as the case may be,
(i) the Social Insurance Number of the beneficiary,
(ii) the Social Insurance Number of the eligible individual referred to in subparagraph 6(2)(a)(ii) or 7(2)(a)(ii) or (b)(ii), and
(iii) the business number of the department, agency or institution that maintains the beneficiary in respect of whom a special allowance is payable under the Children’s Special Allowances Act for a month in the particular year; and
(b) the beneficiary is resident in Canada, in the case of a Canada Disability Savings Grant, at the time the contribution to the plan is made and, in the case of a Canada Disability Savings Bond, immediately before the payment is made.
Marginal note:Interest
9. The Minister may, in prescribed circumstances, pay interest, calculated as prescribed, in respect of Canada Disability Savings Grants or Canada Disability Savings Bonds.
Marginal note:Payments out of CRF
10. All amounts payable by the Minister under this Act shall be paid out of the Consolidated Revenue Fund.
Marginal note:Waiver
11. On application made by the holder or the beneficiary, to avoid undue hardship, the Minister may, in prescribed circumstances, waive any of the prescribed requirements of this Act or the regulations that relate to the payment of any amount or the repayment of any amount or earnings generated by that amount. The application must be in the form and manner approved by the Minister.
GENERAL
Marginal note:Debt due to Her Majesty
12. (1) An amount required to be repaid under this Act, the regulations or an agreement entered into under this Act constitutes a debt due to Her Majesty in right of Canada as of the date on which the Minister issues a written notice to the person responsible for the debt indicating the amount that is due.
Marginal note:Recovery of payments and interest
(2) Debts due to Her Majesty in right of Canada under this Act are recoverable, including in the Federal Court or any other court of competent jurisdiction, by the Minister of National Revenue.
Marginal note:Deduction and set-off
(3) Despite subsection 14(1), debts due to Her Majesty in right of Canada under this Act may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable by Her Majesty in right of Canada to the person responsible for the debt, other than an amount payable under section 122.61 of the Income Tax Act.
Marginal note:Deduction and set-off by the Minister
13. Despite subsections 12(2) and 14(1), an amount required to be repaid by a person under this Act, the regulations or an agreement entered into under this Act may be recovered by the Minister at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable under this Act to the person.
Marginal note:Limitation or prescription period
14. (1) Subject to this section, no action or proceedings shall be taken to recover debts due to Her Majesty in right of Canada under this Act after the expiry of the six-year limitation or prescription period that begins on the day on which the Minister issues the notice referred to in subsection 12(1).
Marginal note:Acknowledgement of liability
(2) If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4), the time during which the limitation or prescription period has run before the acknowledgement does not count in the calculation of that period.
Marginal note:Acknowledgement after expiry of limitation or prescription period
(3) If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4) after the expiry of the limitation or prescription period, an action or proceedings to recover the money may, subject to subsections (2) and (5), be brought within six years after the date of the acknowledgement.
Marginal note:Types of acknowledgements
(4) An acknowledgement of liability means
(a) a written promise to pay the money owing, signed by the person or his or her agent or other representative;
(b) a written acknowledgement of the money owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;
(c) a part payment by the person or his or her agent or other representative of any money owing; or
(d) any acknowledgement of the money owing made by the person, his or her agent or other representative or the trustee or director in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.
Marginal note:Limitation or prescription period suspended
(5) The running of a limitation or prescription period is suspended during
(a) the period beginning on the day on which the Minister receives an application under section 11 and ending on the day on which the Minister issues a decision;
(b) the period beginning on the day on which the Minister of National Revenue receives an application concerning subsection 146.4(12) of the Income Tax Act and ending on the day on which that Minister makes a decision;
(c) the period beginning on the day on which an application for judicial review, with respect to a decision of the Minister to issue a notice under subsection 12(1), is filed and ending on the day on which the final decision is rendered; and
(d) any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover debts due to Her Majesty in right of Canada under this Act.
Marginal note:Enforcement proceedings
(6) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.
Marginal note:Collection of information
15. If the Minister considers it advisable, the Minister may, subject to conditions agreed on by the Minister and the Minister of National Revenue, collect any prescribed information for the administration of section 146.4 and Part XI of the Income Tax Act.
Marginal note:Notification by Minister of National Revenue
16. When the Minister of National Revenue considers that a registered disability savings plan is no longer registered by virtue of the application of paragraph 146.4(10)(a) of the Income Tax Act, the Minister of National Revenue shall as soon as possible notify the Minister in writing.
Marginal note:Regulations
17. The Governor in Council may make regulations for carrying out the purpose and provisions of this Act and, without limiting the generality of the foregoing, may make regulations
(a) establishing requirements that must be met by a registered disability savings plan and by persons in respect of the plan before a Canada Disability Savings Grant or a Canada Disability Savings Bond may be paid in respect of the plan;
(b) establishing the manner of determining the amount of a Canada Disability Savings Grant that may be paid in respect of contributions made to registered disability savings plans or the amount of a Canada Disability Savings Bond that may be paid into those plans;
(c) specifying terms and conditions to be included in agreements entered into between an issuer of a registered disability savings plan and the Minister;
(d) governing the repayment of any amount paid under this Act or earnings generated by those amounts including providing for the circumstances under which an amount or earnings must be repaid and the manner of calculating such an amount or earnings;
(e) specifying the circumstances in which the Minister may pay interest on Canada Disability Savings Grants or Canada Disability Savings Bonds as well as the manner of calculating interest;
(f) specifying the requirements of this Act or the regulations relating to the payment of any amount or the repayment of any amount or earnings generated by that amount that may be waived by the Minister to avoid undue hardship;
(g) specifying the circumstances in which the Minister may waive the requirements provided under paragraph (f);
(h) specifying information that the Minister may collect under section 15; and
(i) requiring issuers to keep any record, book or other document containing any information relevant to the administration or enforcement of this Act or the regulations, and respecting where, how and how long it is to be kept.
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