Budget and Economic Statement Implementation Act, 2007 (S.C. 2007, c. 35)
Full Document:
Assented to 2007-12-14
13. (1) The portion of paragraph (e) of the definition “Canadian newspaper” in subsection 19(5) of the Act before clause (iii)(C) is replaced by the following:
(e) a corporation
(i) that is incorporated under the laws of Canada or a province,
(ii) of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens, and
(iii) that, if it is a corporation having share capital, is
(A) a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a corporation controlled by citizens or subjects of a country other than Canada, or
(B) a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value in total of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada,
and, for the purposes of clause (B), where shares of a class of the capital stock of a corporation are owned, or deemed by this definition to be owned, at any time by another corporation (in this definition referred to as the “holding corporation”), other than a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, each shareholder of the holding corporation shall be deemed to own at that time that proportion of the number of such shares of that class that
(2) Subsection (1) applies on and after the day on which this Act is assented to.
14. (1) Subsection 20(1) of the Act is amended by adding the following after paragraph (nn):
Marginal note:Recapture of investment tax credits — child care space amount
(nn.1) total of all amounts (other than an amount in respect of a disposition of a depreciable property) added because of subsection 127(27.1) or (28.1) to the taxpayer’s tax otherwise payable under this Part for any preceding taxation year;
(2) Subsection 20(3) of the Act is replaced by the following:
Marginal note:Borrowed money
(3) For greater certainty, if a taxpayer uses borrowed money to repay money previously borrowed, or to pay an amount payable for property described in subparagraph (1)(c)(ii) previously acquired (which previously borrowed money or amount payable in respect of previously acquired property is, in this subsection, referred to as the “previous indebtedness”), subject to subsection 20.1(6), for the purposes of paragraphs (1)(c), (e) and (e.1), section 18.2, subsections 20.1(1) and (2), section 21 and subparagraph 95(2)(a)(ii), and for the purpose of paragraph 20(1)(k) of the Income Tax Act, Chapter 148 of the Revised Statutes of Canada, 1952, the borrowed money is deemed to be used for the purpose for which the previous indebtedness was used or incurred, or was deemed by this subsection to have been used or incurred.
(3) Subsection (1) applies on and after March 19, 2007.
(4) Subsection (2) applies in respect of interest paid or payable in respect of a period or periods that begin after 2011.
15. (1) Subparagraph 38(a.1)(i) of the Act is replaced by the following:
(i) the disposition is the making of a gift to a qualified donee of a share, debt obligation or right listed on a designated stock exchange, a share of the capital stock of a mutual fund corporation, a unit of a mutual fund trust, an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)) or a prescribed debt obligation, or
(2) Subsection (1) applies in respect of gifts made on or after March 19, 2007, except that, in its application before the day on which this Act is assented to, the reference to “designated stock exchange” in subparagraph 38(a.1)(i) of the Act, as enacted by subsection (1), shall be read as a reference to “prescribed stock exchange”.
16. (1) Paragraph 53(1)(e) of the Act is amended by striking out the word “and” at the end of subparagraph (xii), by adding the word “and” at the end of subparagraph (xiii) and by adding the following after subparagraph (xiii):
(xiv) the total of all amounts each of which is the amount of the taxpayer’s taxable earnings base adjustment (within the meaning assigned by subsection 18.2(1)) in respect of an interest in the partnership for a taxation year that ended before that time;
(2) Paragraph 53(2)(c) of the Act is amended by striking out the word “and” at the end of subparagraph (xi), by adding the word “and” at the end of subparagraph (xii) and by adding the following after subparagraph (xii):
(xiii) the lesser of
(A) the total of all amounts each of which is the amount of a dividend that is included in computing the income of the taxpayer under section 93.1 in respect of the partnership for a taxation year that ended before that time, and
(B) the total of all amounts each of which is
(I) an amount deducted by the taxpayer under subsection 91(5.2) for a taxation year that ended before that time in respect of a dividend included in computing the amount determined under clause (A), or
(II) twice the amount deducted by the taxpayer under subsection 91(5.3) for a taxation year that ended before that time in respect of the disposition of a share on which a dividend included in computing the amount determined under clause (A) was paid;
(3) Subsections (1) and (2) apply after 2011.
17. (1) Paragraph 56(3)(a) of the Act is replaced by the following:
(a) the total of all amounts each of which is the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of a scholarship, fellowship or bursary received in connection with the taxpayer’s enrolment
(i) in an educational program in respect of which an amount may be deducted under subsection 118.6(2) in computing the taxpayer’s tax payable under this Part for the taxation year, for the immediately preceding taxation year or for the following taxation year, or
(ii) in an elementary or secondary school educational program,
(2) Subsection (1) applies to the 2007 and subsequent taxation years.
18. (1) Subsection 60(x) of the Act is replaced by the following:
Marginal note:Repayment under Canada Education Savings Act
(x) the total of all amounts each of which is an amount paid by the taxpayer in the year as a repayment, under the Canada Education Savings Act or under a designated provincial program (as defined in subsection 146.1(1)), of an amount that was included because of subsection 146.1(7) in computing the taxpayer’s income for the year or a preceding taxation year; and
(2) Subsection (1) applies to the 2007 and subsequent taxation years.
19. (1) Paragraphs (h) and (i) of the definition “principal-business corporation” in subsection 66(15) of the Act are replaced by the following:
(h) the generation of energy using property described in Class 43.1 or 43.2 of Schedule II to the regulations, or any combination thereof, and
(i) the development of projects for which it is reasonable to expect that at least 50% of the capital cost of the depreciable property to be used in each project would be the capital cost of property described in Class 43.1 or 43.2 of Schedule II to the regulations or any combination thereof,
(2) Subsection (1) applies on and after February 23, 2005.
20. (1) The portion of subsection 67.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Expenses for food, etc.
67.1 (1) Subject to subsection (1.1), for the purposes of this Act, other than sections 62, 63, 118.01 and 118.2, an amount paid or payable in respect of the human consumption of food or beverages or the enjoyment of entertainment is deemed to be 50 per cent of the lesser of
(2) Section 67.1 of the Act is amended by adding the following after subsection (1):
Marginal note:Expenses for food and beverages of long-haul truck drivers
(1.1) An amount paid or payable by a long-haul truck driver in respect of the consumption of food or beverages by the driver during an eligible travel period of the driver is deemed to be the amount determined by multiplying the specified percentage in respect of the amount so paid or payable by the lesser of
(a) the amount so paid or payable, and
(b) a reasonable amount in the circumstances.
(3) Section 67.1 of the Act is amended by adding the following after subsection (4):
Marginal note:Definitions
(5) The following definitions apply for the purpose of this section.
“eligible travel period”
« période de déplacement admissible »
“eligible travel period” in respect of a long-haul truck driver is a period during which the driver is away from the municipality or metropolitan area where the specified place in respect of the driver is located for a period of at least 24 continuous hours for the purpose of driving a long-haul truck that transports goods to, or from, a location that is beyond a radius of 160 kilometres from the specified place.
“long-haul truck”
« grand routier »
“long-haul truck” means a truck or a tractor that is designed for hauling freight and that has a gross vehicle weight rating (as that term is defined in subsection 2(1) of the Motor Vehicle Safety Regulations) that exceeds 11 788 kilograms.
“long-haul truck driver”
« conducteur de grand routier »
“long-haul truck driver” means an individual whose principal business or principal duty of employment is driving a long-haul truck that transports goods.
“specified percentage”
« pourcentage déterminé »
“specified percentage” in respect of an amount paid or payable is
(a) 60 per cent, if the amount is paid or becomes payable on or after March 19, 2007 and before 2008;
(b) 65 per cent, if the amount is paid or becomes payable in 2008;
(c) 70 per cent, if the amount is paid or becomes payable in 2009;
(d) 75 per cent, if the amount is paid or becomes payable in 2010; and
(e) 80 per cent, if the amount is paid or becomes payable after 2010.
“specified place”
« endroit déterminé »
“specified place” means, in the case of an employee, the employer’s establishment to which the employee ordinarily reports to work is located and, in the case of an individual whose principal business is to drive a long-haul truck to transport goods, the place where the individual resides.
(4) Subsections (1) to (3) apply to amounts that are paid, or become payable, on or after March 19, 2007.
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