Keeping Canada’s Economy and Jobs Growing Act (S.C. 2011, c. 24)
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Assented to 2011-12-15
PART 1AMENDMENTS TO THE INCOME TAX ACT AND RELATED REGULATIONS
R.S., c. 1 (5th Supp.)Income Tax Act
68. (1) Subsection 207.1(1) of the Act is repealed.
(2) Subsection 207.1(4) of the Act is repealed.
(3) Subsections (1) and (2) apply in respect of
(a) any investment acquired after March 22, 2011; and
(b) any investment acquired before March 23, 2011 that first becomes a non-qualified investment after March 22, 2011.
69. (1) Subsection 211.6(1) of the Act is replaced by the following:
Marginal note:Charging provision
211.6 (1) Every trust that is a qualifying environmental trust at the end of a taxation year (other than a trust that is at that time described in paragraph 149(1)(z.1) or (z.2)) shall pay a tax under this Part for the year equal to 28% of its income under Part I for the year.
(2) Subsection 211.6(1) of the Act, as enacted by subsection (1), is replaced by the following:
Marginal note:Definitions
211.6 (1) The definitions in this section apply for the purposes of this Part.
“excluded trust”
« fiducie exclue »
“excluded trust”, at any time, means a trust that
(a) relates at that time to the reclamation of a well;
(b) is not maintained at that time to secure the reclamation obligations of one or more persons or partnerships that are beneficiaries under the trust;
(c) borrows money at that time;
(d) if the trust is not a trust to which paragraph (e) applies, acquires at that time any property that is not described by any of paragraphs (a), (b) and (f) of the definition “qualified investment” in section 204;
(e) if the trust is created after 2011 (or if the trust was created before 2012, it elects in writing filed with the Minister on or before its filing-due date for a particular taxation year to have subparagraphs (i) and (ii) apply to it for the particular taxation year and all subsequent taxation years, and that election is made jointly with Her Majesty in right of Canada or a particular province, depending upon the qualifying law or qualifying contract in respect of the trust),
(i) acquires at that time any property that is not described by any of paragraphs (a), (b), (c), (c.1), (d) and (f) of the definition “qualified investment” in section 204, or
(ii) holds at that time a prohibited investment;
(f) elected in writing filed with the Minister, before 1998 or before April of the year following the year in which the first contribution to the trust was made, never to have been a qualifying environmental trust; or
(g) was at any previous time during its existence not a qualifying environmental trust (as determined under the definition “qualifying environmental trust” in subsection 248(1) as it applied at that previous time).
“prohibited investment”
« placement interdit »
“prohibited investment”, of a trust at any time, means a property that
(a) at the time it was acquired by the trust, was described by any of paragraphs (c), (c.1) or (d) of the definition “qualified investment” in section 204; and
(b) was issued by
(i) a person or partnership that has contributed property to, or that is a beneficiary under, the trust,
(ii) a person that is related to, or a partnership that is affiliated with, a person or partnership that has contributed property to, or that is a beneficiary under, the trust, or
(iii) a particular person or partnership if
(A) another person or partnership holds a significant interest (within the meaning assigned by subsection 207.01(4) with any modifications that the circumstances require) in the particular person or partnership, and
(B) the holder of that significant interest has contributed property to, or is a beneficiary under, the trust.
“QET income tax rate”
« taux d’impôt sur le revenu des FEA »
“QET income tax rate”, for a trust’s taxation year, means the amount, expressed as a decimal fraction, by which
(a) the percentage rate of tax provided under paragraph 123(1)(a) for the taxation year
exceeds
(b) the total of
(i) the percentage that would, if the trust were a corporation, be its general rate reduction percentage, within the meaning assigned by subsection 123.4(1), for the taxation year, and
(ii) the percentage deduction from tax provided under subsection 124(1) for the taxation year.
“qualifying contract”
« contrat admissible »
“qualifying contract”, in respect of a trust, means a contract entered into with Her Majesty in right of Canada or a province on or before the later of January 1, 1996 and the day that is one year after the day on which the trust was created.
“qualifying environmental trust”
« fiducie pour l’environnement admissible »
“qualifying environmental trust” means a trust
(a) each trustee of which is
(i) Her Majesty in right of Canada or a province, or
(ii) a corporation resident in Canada that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee;
(b) that is maintained for the sole purpose of funding the reclamation of a qualifying site;
(c) that is, or may become, required to be maintained under
(i) the terms of a qualifying contract, or
(ii) a qualifying law; and
(d) that is not an excluded trust.
“qualifying law”
« loi admissible »
“qualifying law”, in respect of a trust, means
(a) a law of Canada or a province that was enacted on or before the later of January 1, 1996 and the day that is one year after the day on which the trust was created; and
(b) if the trust was created after 2011, an order made
(i) by a tribunal constituted under a law described by paragraph (a), and
(ii) on or before the day that is one year after the day on which the trust was created.
“qualifying site”
« site admissible »
“qualifying site”, in respect of a trust, means a site in Canada that is or has been used primarily for, or for any combination of,
(a) the operation of a mine,
(b) the extraction of clay, peat, sand, shale or aggregates (including dimension stone and gravel),
(c) the deposit of waste, or
(d) if the trust was created after 2011, the operation of a pipeline.
(3) Subsection 211.6(2) of the Act is replaced by the following:
Marginal note:Charging provision
(2) Every trust that is a qualifying environmental trust at the end of a taxation year (other than a trust that is at that time described by paragraph 149(1)(z.1) or (z.2)) shall pay a tax under this Part for the year equal to the amount determined by the formula
A × B
where
- A
- is the trust’s income (computed as if this Act were read without reference to subsections 104(4) to (31) and sections 105 to 107) under Part I for the year; and
- B
- is the QET income tax rate for the year.
(4) Subsection (1) applies to the 1997 to 2011 taxation years.
(5) Subsections (2) and (3) apply to the 2012 and subsequent taxation years.
70. (1) The portion of subsection 230(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Records and books
(2) Every qualified donee referred to in paragraphs (a) to (c) of the definition “qualified donee” in subsection 149.1(1) shall keep records and books of account — in the case of a qualified donee referred to in any of subparagraphs (a)(i) and (iii) and paragraphs (b) and (c) of that definition, at an address in Canada recorded with the Minister or designated by the Minister — containing
(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2012.
71. (1) Paragraph 241(3.2)(h) of the Act is replaced by the following:
(h) an application by the charity, and information filed in support of the application, for a designation, determination or decision by the Minister under subsection 149.1(5), (6.3), (7), (8) or (13).
(2) Subsection 241(3.2) of the Act, as amended by subsection (1), is replaced by the following:
Marginal note:Registered charities and registered Canadian amateur athletic associations
(3.2) An official may provide to any person the following taxpayer information relating to another person (in this subsection referred to as the “registrant”) that was at any time a registered charity or registered Canadian amateur athletic association:
(a) a copy of the registrant’s governing documents, including its statement of purpose, and function in the case of a Canadian amateur athletic association;
(b) any information provided in prescribed form to the Minister by the registrant on applying for registration under this Act;
(c) the names of the persons who at any time were the registrant’s directors and the periods during which they were its directors;
(d) a copy of the notification of the registrant’s registration, including any conditions and warnings;
(e) if the registration of the registrant has been revoked or annulled, a copy of the entirety of or any part of any letter sent by or on behalf of the Minister to the registrant relating to the grounds for the revocation or annulment;
(f) financial statements required to be filed with an information return referred to in subsection 149.1(14);
(g) a copy of the entirety of or any part of any letter or notice by the Minister to the registrant relating to a suspension under section 188.2 or an assessment of tax or penalty under this Act (other than the amount of a liability under subsection 188(1.1)); and
(h) in the case of a registrant that is a charity, an application by the registrant, and information filed in support of the application, for a designation, determination or decision by the Minister under any of subsections 149.1(5), (6.3), (7), (8) and (13).
(3) Subsection (1) applies in respect of documents that, after May 13, 2005,
(a) are sent by the Minister of National Revenue; or
(b) are filed or required to be filed with that Minister.
(4) Subsection (2) comes into force on the later of the day on which this Act receives royal assent and January 1, 2012.
72. (1) The definitions “net income stabilization account”, “qualifying environmental trust”, “registered Canadian amateur athletic association”, “registered retirement income fund” and “registered retirement savings plan” in subsection 248(1) of the Act are replaced by the following:
“net income stabilization account”
« compte de stabilisation du revenu net »
“net income stabilization account” means an account of a taxpayer
(a) under the net income stabilization account program under the Farm Income Protection Act, or
(b) that is a prescribed account;
“qualifying environmental trust”
« fiducie pour l’environnement admissible »
“qualifying environmental trust” has the meaning assigned by subsection 211.6(1);
“registered Canadian amateur athletic association”
« association canadienne enregistrée de sport amateur »
“registered Canadian amateur athletic association” means a Canadian amateur athletic association within the meaning assigned by subsection 149.1(1) that has applied to the Minister in prescribed form for registration, that has been registered and whose registration has not been revoked;
“registered retirement income fund” or “RRIF”
« fonds enregistré de revenu de retraite » ou « FERR »
“registered retirement income fund” or “RRIF” have the same meaning as “registered retirement income fund” in subsection 146.3(1);
“registered retirement savings plan” or “RRSP”
« régime enregistré d’épargne-retraite » ou « REER »
“registered retirement savings plan” or “RRSP” have the same meaning as “registered retirement savings plan” in subsection 146(1);
(2) The definition compte d’épargne libre d’impôt in subsection 248(1) of the French version of the Act is replaced by the following:
« compte d’épargne libre d’impôt » ou « CELI »
“TFSA”
compte d’épargne libre d’impôt ou CELI S’entend au sens du paragraphe 146.2(5).
(3) Paragraph (a) of the definition “NISA Fund No. 2” in subsection 248(1) of the Act is replaced by the following:
(a) that is described in paragraph 8(2)(b) of the Farm Income Protection Act or is a prescribed fund, and
(4) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
“foreign accrual property income”
« revenu étranger accumulé, tiré de biens »
“foreign accrual property income” has the meaning assigned by section 95;
“specified pension plan”
« régime de pension déterminé »
“specified pension plan” means a prescribed arrangement;
(5) Subsection 248(3.1) of the Act is replaced by the following:
Marginal note:Gift of bare ownership of immovables
(3.1) Subsection (3) does not apply in respect of a usufruct or a right of use of an immovable in circumstances where a taxpayer disposes of the bare ownership of the immovable by way of a gift to a qualified donee and retains, for life, the usufruct or the right of use.
(6) The definition “net income stabilization account” in subsection 248(1) of the Act, as enacted by subsection (1), and subsection (3) apply to the 2011 and subsequent taxation years.
(7) The definition “qualifying environmental trust” in subsection 248(1) of the Act, as enacted by subsection (1), applies to the 2012 and subsequent taxation years.
(8) The definition “registered Canadian amateur athletic association” in subsection 248(1) of the Act, as enacted by subsection (1), and subsection (5) come into force on the later of the day on which this Act receives royal assent and January 1, 2012.
(9) The definitions “registered retirement income fund” or “RRIF” and “registered retirement savings plan” or “RRSP” in subsection 248(1) of the Act, as enacted by subsection (1), and subsection (2) are deemed to have come into force on March 23, 2011.
(10) The definition “foreign accrual property income” in subsection 248(1) of the Act, as enacted by subsection (4), applies to taxation years that begin after 2006.
(11) The definition “specified pension plan” in subsection 248(1) of the Act, as enacted by subsection (4), applies after 2009.
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