Budget and Economic Statement Implementation Act, 2007 (S.C. 2007, c. 35)
Full Document:
Assented to 2007-12-14
44. (1) The portion of subsection 141(5) of the Act before paragraph (a) is replaced by the following:
Marginal note:Exclusion from taxable Canadian property
(5) For the purpose of paragraph (d) of the definition “taxable Canadian property” in subsection 248(1), a share of the capital stock of a corporation is deemed to be listed at any time on a designated stock exchange if
(2) Subsection (1) applies on and after the day on which this Act is assented to.
45. (1) The definition “contribution” in subsection 146.1(1) of the Act is replaced by the following:
“contribution”
« cotisation »
“contribution”, into an education savings plan, does not include an amount paid into the plan under the Canada Education Savings Act or under a designated provincial program;
(2) Paragraph (c.1) of the definition “trust” in subsection 146.1(1) of the Act is replaced by the following:
(c.1) the repayment of amounts (and the payment of amounts related to that repayment) under the Canada Education Savings Act or under a designated provincial program,
(3) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order:
“designated provincial program”
« programme provincial désigné »
“designated provincial program” means
(a) a program administered pursuant to an agreement entered into under section 12 of the Canada Education Savings Act, or
(b) a prescribed program;
(4) Subsections (1) to (3) apply to the 2007 and subsequent taxation years.
46. (1) The portion of subsection 149.1(1) of the Act before the definition “capital gains pool” is replaced by the following:
Marginal note:Definitions
149.1 (1) In this section and section 149.2,
(2) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:
“divestment obligation percentage”
« pourcentage de dessaisissement »
“divestment obligation percentage” of a private foundation for a particular taxation year, in respect of a class of shares of the capital stock of a corporation, is the percentage, if any, greater than 0%, determined by the formula
A + B - C
where
- A
- is the percentage determined under this definition in respect of the private foundation in respect of the class for the preceding taxation year,
- B
- is the total of all percentages, each of which is the portion of a net increase in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding taxation year that is allocated to the particular taxation year in accordance with subsection 149.2(5), and
- C
- is the total of all percentages, each of which is the portion of a net decrease in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding taxation year that is allocated to the particular taxation year in accordance with subsection 149.2(7);
“entrusted shares percentage”
« pourcentage d’actions visées par une stipulation »
“entrusted shares percentage” of a private foundation, in respect of a class of shares of the capital stock of a corporation, at any particular time means the percentage of the issued and outstanding shares of that class that are held at the particular time by the private foundation that are shares that were acquired by the private foundation by way of a gift that was subject to a trust or direction that the shares are to be held by the private foundation for a period ending not earlier than the particular time, if the gift was made
(a) before March 19, 2007,
(b) on or after March 19, 2007 and before March 19, 2012
(i) under the terms of a will that was executed by a taxpayer before March 19, 2007 and not amended, by codicil or otherwise, on or after March 19, 2007, and
(ii) in circumstances where no other will of the taxpayer was executed or amended on or after March 19, 2007, or
(c) on or after March 19, 2007, under the terms of a testamentary or inter vivos trust created before March 19, 2007, and not amended on or after March 19, 2007;
“excess corporate holdings percentage”
« pourcentage de participation excédentaire »
“excess corporate holdings percentage” of a private foundation, in respect of a class of shares of the capital stock of a corporation, at any time means
(a) if the private foundation is not, at that time, a registered charity, 0%,
(b) if the private foundation holds, at that time, an insignificant interest in respect of the class, 0%, and
(c) in any other case, the number of percent-age points, if any, by which the total corporate holdings percentage of the private foundation in respect of the class, at that time, exceeds the greater of 20% and the entrusted shares percentage, at that time, of the private foundation in respect of the class;
“material transaction”
« opération importante »
“material transaction” of a private foundation, in respect of a class of shares of the capital stock of a corporation, means a transaction or a series of transactions or events in shares of the class, in respect of which the total fair market value of the shares of the class that are acquired or disposed of by the private foundation or any relevant person in respect of the private foundation as part of the transaction or series (determined at the time of the transaction, or at the end of the series, as the case may be) exceeds the lesser of
(a) $100,000, and
(b) 0.5% of the total fair market value of all of the issued and outstanding shares of the class;
“original corporate holdings percentage”
« pourcentage de participation initiale »
“original corporate holdings percentage” of a private foundation, in respect of a class of shares of the capital stock of a corporation, means the total corporate holdings percentage of the private foundation, in respect of that class, held on March 18, 2007;
“relevant person”
« personne intéressée »
“relevant person” in respect of a private foundation means a person who, at any time in respect of which the expression is relevant, deals not at arm’s length with the private foundation (determined as if subsection 251(2) were applied as if the private foundation were a corporation), but does not include
(a) a person who at that time is considered to deal not at arm’s length with the private foundation solely because of a right referred to in paragraph 251(5)(b), or
(b) an individual
(i) who at that time has attained the age of 18 years and lives separate and apart from any other individual (referred to in this definition as a “controlling individual”) who would, if the private foundation were a corporation, control, or be a member of a related group that controls, the private foundation, and
(ii) in respect of whom the Minister is satisfied, upon review of an application by the private foundation, that the individual would, if subsection 251(1) were read without reference to its paragraphs (a) and (b), at that time, deal at arm’s length with all controlling individuals;
“total corporate holdings percentage”
« pourcentage de participation totale »
“total corporate holdings percentage” of a private foundation, in respect of a class of shares of the capital stock of a corporation, at any particular time means the percentage of the issued and outstanding shares of that class that are held at that time by the private foundation, or by a relevant person in respect of the private foundation who holds a material interest in respect of that class;
(3) Paragraph 149.1(4)(c) of the Act is replaced by the following:
(c) has, in respect of a class of shares of the capital stock of a corporation, a divestment obligation percentage at the end of any taxation year;
(4) The portion of paragraph 149.1(12)(a) of the Act after subparagraph (ii) is replaced by the following:
but, for the purpose of paragraph (3)(c), a charitable foundation is deemed not to have acquired control of a corporation if it has not purchased or otherwise acquired for consideration more than 5% of the issued shares of any class of the capital stock of that corporation;
(5) Subsection 149.1(15) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) if, at any time during a taxation year of a private foundation that is a registered charity, the private foundation holds more than an insignificant interest in respect of a class of shares of the capital stock of a corporation, the Minister shall make available to the public in such manner as the Minister deems appropriate,
(i) the name of the corporation, and
(ii) in respect of each class of shares of the corporation, that portion of the total corporate holdings percentage of the private foundation in respect of the class that is attributable to
(A) holdings of shares of that class by the private foundation, and
(B) the total of all holdings of shares of that class by relevant persons in respect of the private foundation.
(6) Subsections (1) and (2) apply on and after March 19, 2007.
(7) Subsections (3) to (5) apply to taxation years, of foundations, that begin after March 18, 2007, except that subsections (3) and (4) do not apply to a taxation year of a private foundation if subsection 149.2(8) of the Act, as enacted by clause 47(1), applies to the private foundation in respect of any class of shares of the capital stock of a corporation.
- Date modified: