Budget Implementation Act, 2009 (S.C. 2009, c. 2)
Full Document:
Assented to 2009-03-12
55. (1) The definition “entrusted shares percentage” in subsection 149.1(1) of the Act is repealed.
(2) The definition “divestment obligation percentage” in subsection 149.1(1) of the Act is replaced by the following:
“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, that is the lesser of
(a) the excess, if any, at the end of the taxation year, of the percentage of issued and outstanding shares of that class that are held by the private foundation over the exempt shares percentage of the private foundation, and
(b) the percentage determined by the formula
A + B – C
where
- A
- is the percentage determined under this paragraph 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);
(3) Paragraph (c) of the definition “excess corporate holdings percentage” in subsection 149.1(1) of the Act is replaced by the following:
(c) in any other case, the number of percentage 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 exempt shares percentage, at that time, of the private foundation in respect of the class;
(4) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:
“equity percentage”
« pourcentage d’intérêt »
“equity percentage” of a person in a corporation has, subject to subsection 149.2(2.1), the same meaning as defined in subsection 95(4);
“exempt shares”
« actions exonérées »
“exempt shares” held by a private foundation at any particular time means shares, of a class of the capital stock of a corporation,
(a) 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
(i) before March 19, 2007,
(ii) on or after March 19, 2007 and before March 19, 2012
(A) 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
(B) in circumstances where no other will of the taxpayer was executed or amended on or after March 19, 2007, or
(iii) 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,
(b) that were last acquired by the private foundation before March 19, 2007, other than shares that, at the particular time,
(i) are described in paragraph (a),
(ii) are listed on a designated stock exchange, or
(iii) are shares of the capital stock of a particular corporation, which particular corporation has an equity percentage greater than 0% in a public corporation, a class of the shares of the capital stock of which is listed on a designated stock exchange, if
(A) a corporation (in this subparagraph referred to as a “controlled corporation” and which may, for greater certainty, be the particular corporation)
(I) owns one or more shares of a class of the capital stock of the public corporation, and
(II) is controlled, directly or indirectly in any manner whatever, by one or more relevant persons in respect of the private foundation, or by the private foundation alone or together with one or more such relevant persons,
(B) the private foundation, if it held directly the shares described in subclause (A)(I), would have an excess corporate holdings percentage (determined without reference to subsection 149.2(8)) in respect of that class of shares that is greater than 0%, and
(C) the private foundation, alone or together with all controlled corporations, holds more than an insignificant interest in respect of the class of shares described in subclause (A)(I), or
(c) that are substituted shares held by the private foundation;
“exempt shares percentage”
« pourcentage d’actions exonérées »
“exempt shares percentage” of a private foundation at any time, in respect of a class of shares of the capital stock of a corporation, is the total of all amounts, each of which is the percentage of the issued and outstanding shares of that class that are exempt shares held by the private foundation at that time;
“substituted shares”
« actions de remplacement »
“substituted shares” held by a private foundation means shares acquired by the private foundation, in exchange for exempt shares held by the private foundation, in the course of a transaction to which section 51, subsection 85.1(1) or section 86 or 87 applies;
(5) Subsection 149.1(15) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and’’ at the end of paragraph (c) and by adding the following after paragraph (c):
(d) the Minister, or a Minister referred to in paragraph 110.1(8)(e), may make available to the public in any manner a listing of the registered charities in respect of which an opinion has been formed for the purpose of paragraph 110.1(8)(e) or revoked under subsection 110.1(9).
(6) Subsections (1) to (4) apply after March 18, 2007.
56. (1) Section 149.2 of the Act is amended by adding the following after subsection (2):
Marginal note:Ownership
(2.1) For the purposes of the definition “equity percentage”, and subparagraph (b)(iii) of the definition “exempt shares”, in subsection 149.1(1), a person who, if paragraph 251(5)(b) applied would be deemed by that paragraph to have the same position in relation to the control of a corporation as if the person owned a share, is deemed to own the share.
(2) Section 149.2 of the Act is amended by adding the following after subsection (8):
Marginal note:Where subsection (10) applies
(9) Subsection (10) applies for the purposes of applying section 149.1 and subsections (8) and 188.1(3.1) to a private foundation at a particular time if, both on March 18, 2007 and at the particular time,
(a) the private foundation was the sole trustee of a trust, or was a majority interest beneficiary (within the meaning assigned by section 251.1) of a trust more than 50% of the trustees of which were the private foundation and one or more relevant persons in respect of the private foundation; and
(b) the trust held one or more shares of a class of the capital stock of a corporation.
Marginal note:Shares held through a trust on March 18, 2007
(10) If this subsection applies at a particular time to a private foundation in respect of shares of a class of the capital stock of a corporation held by a trust, the private foundation is deemed to hold at the particular time that number of those shares as is determined by the formula
A × B/C
where
- A
- is the lesser of the number of those shares held by the trust on March 18, 2007 and the number so held at the particular time;
- B
- is the total fair market value of all interests held by the private foundation in the trust at the particular time; and
- C
- is the total fair market value of all property held by the trust at the particular time.
Marginal note:Discretionary trusts
(11) For the purpose of subsection (10), if the amount of income or capital of a trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be.
(3) Subsection (1) applies after March 18, 2007.
(4) Subsection (2) applies to taxation years, of private foundations, that begin on or after February 26, 2008.
(5) If a registered charity was on March 19, 2007 a private foundation, in applying paragraphs 149.2(5)(b) and (c) of the Act to the first taxation year of the registered charity that begins after that date, the reference in those paragraphs to “in the current year” shall be read as a reference to “in the period that begins on March 18, 2007 and ends at the end of the current year”.
57. (1) Section 150.1 of the Act is amended by adding the following after subsection (2):
Marginal note:Mandatory filing of return by electronic transmission
(2.1) If a corporation is, in respect of a taxation year, a prescribed corporation, the corporation shall file its return of income for the taxation year by way of electronic filing.
(2) Subsection (1) applies to taxation years that end after 2009.
58. (1) Subsection 152(4) of the Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after paragraph (b):
(c) the taxpayer or person filing the return has filed with the Minister a waiver in prescribed form within the additional 3-year period referred to in paragraph (b); or
(d) as a consequence of a change in the allocation of the taxpayer’s taxable income earned in a province as determined under the law of a province that provides rules similar to those prescribed for the purposes of section 124, an assessment, reassessment or additional assessment of tax for a taxation year payable by a corporation under a law of a province that imposes on the corporation a tax similar to the tax imposed under this Part (in this paragraph referred to as a “provincial reassessment”) is made, and as a consequence of the provincial reassessment, an assessment, reassessment or additional assessment is made on or before the day that is one year after the later of
(i) the day on which the Minister is advised of the provincial reassessment, and
(ii) the day that is 90 days after the day of mailing of a notice of the provincial reassessment.
(2) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the following:
Marginal note:Assessment to which paragraph 152(4)(a), (b) or (c) applies
(4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a), (b) or (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,
(3) The portion of paragraph 152(4.01)(b) of the Act before subparagraph (i) is replaced by the following:
(b) where paragraph 4(b) or (c) applies to the assessment, reassessment or additional assessment,
(4) Subsection 152(6) of the Act is amended by adding the following after paragraph (f.2):
(f.3) a deduction (including for the purposes of this subsection a reduction of an amount otherwise required to be included in computing a taxpayer’s income) under subsection 146(8.9) or (8.92) or 146.3(6.2) or (6.3),
(5) Section 152 of the Act is amended by adding the following after subsection (6.1):
Marginal note:Extended reassessment period
(6.2) The Minister shall reassess a taxpayer’s tax for a particular taxation year, in order to take into account the application of paragraph (d) of the definition “excluded property” in subsection 142.2(1), or the application of subsection 142.6(1.6), in respect of property held by the taxpayer, if
(a) the taxpayer has filed for the particular taxation year the return of income required by section 150; and
(b) the taxpayer files with the Minister a prescribed form amending the return, on or before the filing-due date for the taxpayer’s taxation year that
(i) if the filing is in respect of paragraph (d) of that definition “excluded property”, includes the acquisition of control time referred to in that paragraph, and
(ii) if the filing is in respect of subsection 142.6(1.6), immediately follows the particular taxation year.
(6) Subsection (4) applies in respect of a registered retirement income fund or a registered retirement savings plan in respect of which the last payment out of the fund or plan is made after 2008.
(7) Subsection (5) applies to taxation years that begin after 2001, except that
(a) for taxation years that begin before October 1, 2006, each reference in subsection 152(6.2) of the Act, as enacted by subsection (5), to paragraph (d) of the definition “excluded property” shall be read as a reference to paragraph (d.3) of the definition “mark-to-market property”; and
(b) a prescribed form referred to in paragraph 152(6.2)(b) of the Act, as enacted by subsection (5), is deemed to have been filed by a taxpayer on a timely basis if it is filed by the taxpayer on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to.
- Date modified: