Budget Implementation Act, 2009 (S.C. 2009, c. 2)
Full Document:
- HTMLFull Document: Budget Implementation Act, 2009 (Accessibility Buttons available) |
- PDFFull Document: Budget Implementation Act, 2009 [2364 KB]
Assented to 2009-03-12
PART 1AMENDMENTS IN RESPECT OF INCOME TAX
C.R.C., c. 945Income Tax Regulations
105. (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, paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act and paragraph (c) of the definition “qualified investment” in subsection 207.01(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(2) Paragraph 4900(1)(i.3) of the Regulations is repealed.
(3) Subparagraph 4900(1)(j.2)(ii) of the Regulations is replaced by the following:
(ii) the certificate has, at the time of acquisition by the plan trust, an investment grade rating with a credit rating agency referred to in subsection (2), and
(4) Paragraphs 4900(1)(k) and (l) of the Regulations are repealed.
(5) Paragraph 4900(1)(o) of the Regulations is repealed.
(6) Paragraph 4900(1)(s) of the Regulations is repealed.
(7) Subsection 4900(1) of the Regulations is amended by striking out “or” at the end of paragraph (u), by adding “or” at the end of paragraph (v) and by adding the following after paragraph (v):
(w) an American Depositary Receipt where the property represented by the receipt is listed on a designated stock exchange.
(8) 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, paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act and paragraph (c) of the definition “qualified investment” in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered disability savings plan, a registered education savings plan or a TFSA 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.
(9) Paragraph 4900(12)(a) of the Regulations is replaced by the following:
(a) the property was a share of the capital stock of a specified small business corporation,
(10) Section 4900 of the Regulations is amended by adding the following after subsection (13):
(14) For the purposes of paragraph (c) of the definition “qualified investment” in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a TFSA at any time if, at the time the property was acquired by the trust, the property
(a) was
(i) a share of the capital stock of a specified small business corporation,
(ii) a share of the capital stock of a venture capital corporation described in any of sections 6700 to 6700.2, or
(iii) a qualifying share in respect of a specified cooperative corporation and the TFSA; and
(b) was not a prohibited investment for the trust.
(11) Subsections (1) and (8) to (10) apply to the 2009 and subsequent taxation years.
(12) Subsections (2) to (6) apply to property acquired after the day on which this Act is assented to.
(13) Subsection (7) applies in determining whether a property is, at any time after 2005, a qualified investment, except that in applying paragraph 4900(1)(w) of the Regulations, as enacted by subsection (7), before December 14, 2007, it is to be read as follows:
(w) an American Depositary Receipt where the property represented by the receipt is listed on a stock exchange referred to in section 3200 or 3201.
106. (1) The definitions “governing plan” and “qualifying share” in subsection 4901(2) of the Regulations are replaced by the following:
- “governing plan”
“governing plan” means a deferred profit sharing plan or a revoked plan, a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA; (régime d’encadrement)
- “qualifying share”
“qualifying share”, in respect of a specified cooperative corporation and a governing plan, means a share of the capital or capital stock of the corporation where
(a) ownership of the share or a share identical to the share is not a condition of membership in the corporation, or
(b) a connected person under the governing plan
(i) has not received a payment from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services, and
(ii) can reasonably be expected not to receive a payment, after the acquisition of the share by the plan trust, from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services; (part admissible)
(2) The definition “connected person” in subsection 4901(2) of the English version of the Regulations is replaced by the following:
- “connected person”
“connected person” under 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 arm’s length with that person; (personne rattachée)
(3) Subsection 4901(2) of the Regulations is amended by adding the following in alphabetical order:
- “specified small business corporation”
“specified small business corporation”, at any time, means a corporation (other than a cooperative corporation) that would, at that time or at the end of the last taxation year of the corporation that ended before that time, be a small business corporation if the expression “Canadian-controlled private corporation” in the definition “small business corporation” in subsection 248(1) of the Act were read as “Canadian corporation (other than a corporation controlled at that time, directly or indirectly in any manner whatever, by one or more non-resident persons)”. (société déterminée exploitant une petite entreprise)
(4) Subsections (1) to (3) apply to the 2009 and subsequent taxation years.
107. (1) The Regulations are amended by adding the following after Part XLIX:
PART LTAX-FREE SAVINGS ACCOUNTS — PROHIBITED INVESTMENTS
Marginal note:Investment not prohibited
5000. For the purpose of the portion of the definition “prohibited investment” in subsection 207.01(1) of the Act before paragraph (a), property described in paragraph 4900(1)(j.1) is prescribed property.
Marginal note:Prohibited investment
5001. For the purpose of paragraph (d) of the definition “prohibited investment” in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a TFSA solely because of subsection 4900(14) is prescribed property for the trust at any time if, at that time, it is not described in any of subparagraphs 4900(14)(a)(i) to (iii).
(2) Subsection (1) applies to the 2009 and subsequent taxation years.
108. (1) The headings before section 5700 of Regulations are replaced by the following:
PART LVIIMEDICAL EXPENSE TAX CREDIT
(2) Subsection (1) is deemed to have come into force on February 27, 2008.
109. (1) Section 5700 of the Regulations is amended by striking out “and” at the end of paragraph (y) and by adding the following after paragraph (z):
(z.1) altered auditory feedback device designed to be used by an individual who has a speech impairment;
(z.2) electrotherapy device designed to be used by an individual with a medical condition or by an individual who has a severe mobility impairment;
(z.3) standing device designed to be used by an individual who has a severe mobility impairment to undertake standing therapy; and
(z.4) pressure pulse therapy device designed to be used by an individual who has a balance disorder.
(2) Subsection (1) applies to the 2008 and subsequent taxation years.
110. (1) The Regulations are amended by adding the following after section 5700:
5701. For the purpose of subparagraph 118.2(2)(n)(ii) of the Act, a drug, medicament or other preparation or substance is prescribed if it
(a) is manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function;
(b) is prescribed for a patient by a medical practitioner; and
(c) may, in the jurisdiction in which it is acquired, be lawfully acquired for use by the patient only with the intervention of a medical practitioner.
(2) Subsection (1) is deemed to have come into force on February 27, 2008.
- Date modified: