Budget Implementation Act, 2009 (S.C. 2009, c. 2)
Full Document:
Assented to 2009-03-12
31. (1) Subparagraph 115(1)(a)(iii.21) of the Act is replaced by the following:
(iii.21) the total of all amounts, each of which is an amount included under subparagraph 56(1)(r)(v) or section 56.3 in computing the non-resident person’s income for the year,
(2) Subsection (1) applies to the 2008 and subsequent taxation years.
32. (1) Paragraph 116(6)(b) of the Act is replaced by the following:
(b) a security that is
(i) listed on a recognized stock exchange, and
(ii) either
(A) a share of the capital stock of a corporation, or
(B) SIFT wind-up entity equity;
(2) Subsection (1) applies after July 14, 2008.
33. (1) Subsection 117(2) of the Act is replaced by the following:
Marginal note:Rates for taxation years after 2008
(2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for a taxation year is
(a) 15% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $40,726;
(b) if the amount taxable is greater than $40,726 and is equal to or less than $81,452, the maximum amount determinable in respect of the taxation year under paragraph (a), plus 22% of the amount by which the amount taxable exceeds $40,726 for the year;
(c) if the amount taxable is greater than $81,452, but is equal to or less than $126,264, the maximum amount determinable in respect of the taxation year under paragraph (b), plus 26% of the amount by which the amount taxable exceeds $81,452 for the year; and
(d) if the amount taxable is greater than $126,264, the maximum amount determinable in respect of the taxation year under paragraph (c), plus 29% of the amount by which the amount taxable exceeds $126,264 for the year.
(2) Subsection (1) applies to the 2009 and subsequent taxation years.
34. (1) The portion of paragraph (a) of the description of B in subsection 118(1) of the Act before the description of C in subparagraph (ii) is replaced by the following:
Marginal note:Married or common-law partnership status
(a) in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual’s spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of
(i) $10,320, and
(ii) the amount determined by the formula
$10,320 – C
where
(2) The description of C in subparagraph (a)(ii) of the description of B in subsection 118(1) of the English version of the Act is replaced by the following:
- C
- is the income of the individual’s spouse or common-law partner for the year or, where the individual and the individual’s spouse or common-law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common-law partnership, the spouse’s or common-law partner’s income for the year while married to, or in a common-law partnership with, the individual and not so separated,
(3) The portion of paragraph 118(1)(b) of the French version of the Act before the description of D is replaced by the following:
Marginal note:Crédit équivalent pour personne entièrement à charge
b) le total de 10 320 $ et de la somme obtenue par la formule suivante :
10 320 $ – D
où :
(4) Subparagraphs (b)(iii) and (iv) of the description of B in subsection 118(1) of the English version of the Act are replaced by the following:
(iii) $10,320, and
(iv) the amount determined by the formula
$10,320 – D
where
- D
- is the dependent person’s income for the year,
(5) Paragraph (c) of the description of B in subsection 118(1) of the Act is replaced by the following:
Marginal note:Single status
(c) except in the case of an individual entitled to a deduction because of paragraph (a) or (b), $10,320,
(6) The formula in subsection 118(2) of the Act is replaced by the following:
A × ($6,408 – B)
(7) Subsections 118(3.1), (3.2) and (9) of the Act are repealed.
(8) Paragraph (b) of the description of B in subsection 118(10) of the Act is replaced by the following:
(b) the total of all amounts, each of which is an amount included in computing the individual’s income for the taxation year from an office or employment or an amount included in the taxpayer’s income for the taxation year because of subparagraph 56(1)(r)(v).
(9) Subsections (1) and (2) to (7) apply to the 2009 and subsequent taxation years.
(10) Subsection (3) applies to the 2007 and subsequent taxation years.
(11) Subsection (8) applies to the 2008 and subsequent taxation years.
35. (1) The portion of subsection 118.1(5.3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Direct designation — RRSPs, RRIFs and TFSAs
(5.3) If as a consequence of an individual’s death, a transfer of money, or a transfer by means of a negotiable instrument, is made, from an arrangement (other than an arrangement of which a licensed annuities provider is the issuer or carrier) that is a registered retirement savings plan or registered retirement income fund or that was, immediately before the individual’s death, a TFSA to a qualified donee, solely because of the donee’s interest or, for civil law, a right as a beneficiary under the arrangement, the individual was the annuitant under, or the holder of, the arrangement immediately before the individual’s death and the transfer occurs within the 36-month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances),
(2) Subsection (1) applies to the 2009 and subsequent taxation years.
36. (1) The definition “investment” in subsection 122.1(1) of the Act is replaced by the following:
“investment”
« placement »
“investment”, in a trust or partnership,
(a) means
(i) a property that is a security of the trust or partnership, or
(ii) a right which may reasonably be considered to replicate a return on, or the value of, a security of the trust or partnership; but
(b) does not include
(i) an unaffiliated publicly-traded liability of the trust or partnership, nor
(ii) regulated innovative capital.
(2) The portion of paragraph (a) of the definition “non-portfolio property” in subsection 122.1(1) of the Act before subparagraph (i) is replaced by the following:
(a) a security of a subject entity (other than a portfolio investment entity), if at that time the trust or partnership holds
(3) Paragraph (a) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following:
(a) a real or immovable property;
(4) Subparagraph (c)(i) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following:
(i) legal title to real or immovable property of the trust or of another subject entity all of the securities of which are held by the trust (including real or immovable property that the trust or the other subject entity holds together with one or more other persons or partnerships), and
(5) Paragraphs (c) and (d) of the definition “real estate investment trust” in subsection 122.1(1) of the Act are replaced by the following:
(c) not less than 75% of the trust’s revenues for the taxation year are derived from one or more of the following:
(i) rent from real or immovable properties,
(ii) interest from mortgages, or hypothecs, on real or immovable properties, and
(iii) capital gains from dispositions of real or immovable properties; and
(d) at each time in the taxation year an amount, that is equal to 75% or more of the equity value of the trust at that time, is the amount that is the total fair market value of all properties held by the trust each of which is real or immovable property, indebtedness of a Canadian corporation represented by a bankers’ acceptance, property described by either paragraph (a) or (b) of the definition “qualified investment” in section 204, or a deposit with a credit union.
(6) Subparagraph (a)(ii) of the definition “rent from real or immovable properties” in subsection 122.1(1) of the Act is replaced by the following:
(ii) payment for services ancillary to the rental of real or immovable properties and customarily supplied or rendered in connection with the rental of real or immovable properties, and
(iii) a payment that is included under paragraph 104(13)(a) in computing the recipient’s income and that was made from the part of a trust’s income (determined without reference to subsection 104(6)) that was derived from rent from real or immovable properties; but
(7) The portion of the definition “SIFT trust” in subsection 122.1(1) of the Act before paragraph (a) is replaced by the following:
“SIFT trust”
« fiducie intermédiaire de placement déterminée »
“SIFT trust”, being a specified investment flow-through trust, for a taxation year means a trust (other than an excluded subsidiary entity, or a real estate investment trust, for the taxation year) that meets the following conditions at any time during the taxation year:
(8) Subsection 122.1(1) of the Act is amended by adding the following in alphabetical order:
“equity”
« capitaux propres »
“equity”, of an entity, means
(a) if the entity is a corporation, a share of the capital stock of the corporation;
(b) if the entity is a trust, an income or capital interest in the trust;
(c) if the entity is a partnership, an interest as a member of the partnership;
(d) a liability of the entity (and, for purposes of the definition “publicly-traded liability” in this section, a security of the entity that is a liability of another entity) if
(i) the liability is convertible into, or exchangeable for, equity of the entity or of another entity, or
(ii) any amount paid or payable in respect of the liability is contingent or dependent on the use of or production from property, or is computed by reference to revenue, profit, cash flow, commodity price or any other similar criterion or by reference to dividends paid or payable to shareholders of any class of shares of the capital stock of a corporation, or to income or capital paid or payable to any member of a partnership or beneficiary under a trust; and
(e) a right to, or to acquire, anything described in this paragraph and any of paragraphs (a) to (d).
“excluded subsidiary entity”
« filiale exclue »
“excluded subsidiary entity”, for a taxation year, means an entity none of the equity of which is at any time in the taxation year
(a) listed or traded on a stock exchange or other public market; nor
(b) held by any person or partnership other than
(i) a real estate investment trust,
(ii) a taxable Canadian corporation,
(iii) a SIFT trust (determined without reference to subsection (2)),
(iv) a SIFT partnership (determined without reference to subsection 197(8)), or
(v) an excluded subsidiary entity for the taxation year.
“portfolio investment entity”
« entité de placement de portefeuille »
“portfolio investment entity” at any time means an entity that does not at that time hold any non-portfolio property.
“publicly-traded liability”
« dette transigée publiquement »
“publicly-traded liability”, of an entity, means a liability that is a security of the entity, that is not equity of the entity and that is listed or traded on a stock exchange or other public market.
“regulated innovative capital”
« capital innovateur réglementé »
“regulated innovative capital” means equity of a trust, where
(a) since November 2006, the equity has been authorized, by the Superintendent of Financial Institutions or by a provincial regulatory authority having powers similar to those of the Superintendent, as Tier 1 or Tier 2 capital of a financial institution (as defined by subsection 181(1));
(b) the terms and conditions of the equity have not changed after August 1, 2008;
(c) the trust has not issued any equity after October 31, 2006; and
(d) the trust does not hold any non-portfolio property other than
(i) liabilities of the financial institution, and
(ii) shares of the capital stock of the financial institution that were acquired by the trust for the sole purpose of satisfying a right to require the trust to accept, as demanded by a holder of the equity, the surrender of the equity.
“unaffiliated publicly-traded liability”
« dette non affiliée transigée publiquement »
“unaffiliated publicly-traded liability”, of an entity at any time means a publicly-traded liability of the entity if, at that time the total fair market value of all publicly-traded liabilities of the entity that are held at that time by persons or partnerships that are not affiliated with the entity is at least 90% of the total fair market value of all publicly-traded liabilities of the entity.
(9) Subsections (1) to (8) are deemed to have come into force on October 31, 2006.
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