SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act.

PART 1AMENDMENTS TO THE INCOME TAX ACT, A RELATED ACT AND A RELATED REGULATION

R.S., c. 1 (5th Supp.)Income Tax Act

• 2. (1) The definition “specified year” in subsection 146.4(1) of the Income Tax Act is replaced by the following:

  “specified year”

  « année déterminée »

  “specified year” for a disability savings plan of a beneficiary means the particular calendar year in which a medical doctor licensed to practise under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor, the beneficiary is not likely to survive more than five years and

  • (a) if the plan is a specified disability savings plan, each subsequent calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan; or

  • (b) in any other case, each of the five calendar years following the particular calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan.

• (2) Section 146.4 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Specified disability savings plan

    (1.1) If, in respect of a beneficiary under a registered disability savings plan, a medical doctor licensed to practise under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor, the beneficiary is not likely to survive more than five years, the holder of the plan elects in prescribed form and provides the election and the medical certification in respect of the beneficiary to the issuer of the plan, and the issuer notifies the specified Minister of the election in a manner and format acceptable to the specified Minister, then the plan becomes a specified disability savings plan at the time the notification is received by the specified Minister.

  • Marginal note:Ceasing to be a specified disability savings plan

    (1.2) A plan ceases to be a specified disability savings plan at the earliest of the following times:

    • (a) the time that the specified Minister receives a notification, in a manner and format acceptable to the specified Minister, from the issuer of the plan that the holder elects that the plan is to cease to be a specified disability savings plan;

    • (b) the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made from the plan in the year and while it was a specified disability savings plan exceeds $10,000 (or, in the case of a plan to which paragraph (f) applies, such greater amount as is required to satisfy the condition in that paragraph);

    • (c) the time that is immediately before the time that

      • (i) a contribution is made to the plan, or

      • (ii) an amount described in paragraph (a) or (b) of the definition “contribution” in subsection (1) is paid into the plan;

    • (d) the time that is immediately before the time that

      • (i) the plan is terminated, or

      • (ii) the plan ceases to be a registered disability savings plan as a result of the application of paragraph (10)(a);

    • (e) if lifetime disability assistance payments have not begun to be paid before the end of the particular calendar year following the year in which the plan last became a specified disability savings plan, the time immediately following the end of that particular calendar year; and

    • (f) if in a calendar year the plan is a plan to which paragraph (4)(n) applies and the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year is less than the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the calendar year (or such lesser amount as is supported by the property of the plan), the time immediately following the end of that calendar year.

  • Marginal note:Waiting period

    (1.3) If at any time, a plan has ceased to be a specified disability savings plan because of subsection (1.2), then the holder of the plan may not make an election under subsection (1.1) until 24 months after that time.

  • Marginal note:Waiver

    (1.4) The Minister may waive the application of subsections (1.2) or (1.3) if it is just and equitable to do so.

• (3) Subsections (1) and (2) apply to the 2011 and subsequent taxation years, except that

  • (a) no election may be made under subsection 146.4(1.1) of the Act, as enacted by subsection (2), before this Act receives royal assent; and

  • (b) for a specified disability savings plan in respect of which the required medical certification is obtained before 2012, paragraph 146.4(1.2)(b) of the Act, as enacted by subsection (2), is, for 2012, to be read as follows:

    • (b) the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made from the plan and while it was a specified disability savings plan exceeds $20,000 (or, in the case of a plan to which paragraph (f) applies, such greater amount as is required to satisfy the condition in that paragraph);

• 3. (1) Section 152 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Determination of disability tax credit eligibility

    (1.01) The Minister shall, if an individual requests by prescribed form, determine with all due dispatch whether an amount is deductible, or would if this Act were read without reference to paragraph 118.3(1)(c) be deductible, under section 118.3 in computing the individual’s tax payable under this Part for a taxation year and send a notice of the determination to the individual.

• (2) The portion of subsection 152(1.2) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Provisions applicable

    (1.2) Paragraphs 56(1)(l) and 60(o), this Division and Division J, as they relate to an assessment or a reassessment and to assessing or reassessing tax, apply, with any modifications that the circumstances require, to a determination or redetermination under subsection (1.01) and to a determination or redetermination of an amount under this Division or an amount deemed under section 122.61 to be an overpayment on account of a taxpayer’s liability under this Part, except that

    • (a) subsections (1) and (2) do not apply to determinations made under subsections (1.01), (1.1) and (1.11);

• (3) Subject to subsection (4), subsections (1) and (2) apply to taxation years that end after 2009 in respect of forms filed with the Minister of National Revenue after the day on which this Act is assented to (referred to as the “application day” in this section).

• (4) If an individual, on or before the application day, has filed for a taxation year that ends after 2007 and before 2012 the certificate described in paragraph 118.3(1)(a.2) or (a.3) of the Act and, for that year, the Minister of National Revenue has issued a notice that no tax is payable, then

  • (a) in respect of the individual, the reference in subsection (3) to “2009” is to be read as a reference to “2007”;

  • (b) the Minister is deemed to have issued a notice of determination to the individual on the later of the application day or the actual day the notice is issued; and

  • (c) subparagraph 165(1)(a)(ii) of the Act shall in respect of the determination be read as follows:

    • (ii) the day that is 180 days after the day that the Minister is deemed to have issued a notice of determination; and

2007, c. 35, s. 136Canada Disability Savings Act

Marginal note:2010, c. 25, s. 166

4. Paragraph 2(2)(b) of the Canada Disability Savings Act is replaced by the following:

Marginal note:2010, c. 25, s. 167(1)

5. The portion of subsection 6(2.2) of the Act before paragraph (a) is replaced by the following:

6. Section 8 of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

SOR/2008-186Canada Disability Savings Regulations

7. The definition “assistance holdback amount” in section 1 of the Canada Disability Savings Regulations is replaced by the following: