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
48. (1) Paragraph (b) of the definition “post-secondary educational institution” in subsection 146.1(1) of the Act is replaced by the following:
(b) an educational institution outside Canada that provides courses at a post-secondary school level and that is
(i) a university, college or other educational institution at which a beneficiary was enrolled in a course of not less than 13 consecutive weeks, or
(ii) a university at which a beneficiary was enrolled on a full-time basis in a course of not less than three consecutive weeks;
(2) Subsection (1) applies to educational assistance payments made after 2010.
49. (1) Subparagraph 146.3(2)(f)(vii) of the Act is replaced by the following:
(vii) a specified pension plan in circumstances to which subsection 146(21) applies;
(2) Subsection 146.3(2) of the Act is amended by adding “and” at the end of paragraph (f) and by repealing paragraph (g).
(3) Subsection 146.3(5) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) an amount in respect of which the annuitant pays a tax under Part XI.01, unless the tax is waived, cancelled or refunded.
(4) Subsections 146.3(7) and (8) of the Act are replaced by the following:
Marginal note:Property used as security for loan
(7) If at any time in a taxation year a trust governed by a registered retirement income fund uses or permits to be used any property of the trust as security for a loan, the fair market value of the property at the time it commenced to be so used shall be included in computing the income for the year of the taxpayer who is the annuitant under the fund at that time.
(5) Subsection 146.3(13) of the Act is repealed.
(6) Subsection (1) applies to taxation years that begin after 2009.
(7) Subsection (2) is deemed to have come into force on March 23, 2011.
(8) Subsections (3) and (5) apply to transactions occurring, income earned, capital gains accruing and investments acquired after March 22, 2011.
(9) Subsection (4) applies in respect of investments acquired after March 22, 2011.
50. (1) Subsection 149(1) of the Act is amended by adding the following after paragraph (f):
Marginal note:Registered Canadian amateur athletic association
(g) a registered Canadian amateur athletic association;
(2) Subsection 149(1) of the Act is amended by striking out “or” at the end of paragraph (y) and by adding the following after paragraph (z):
Marginal note:Environmental Quality Act trust
(z.1) a trust
(i) that was created because of a requirement imposed by section 56 of the Environment Quality Act, R.S.Q., c. Q-2,
(ii) that is resident in Canada, and
(iii) in which the only persons that are beneficially interested are
(A) Her Majesty in right of Canada,
(B) Her Majesty in right of a province, or
(C) a municipality (as defined in section 1 of that Act) that is exempt because of this subsection from tax under this Part on all of its taxable income; or
Marginal note:Nuclear Fuel Waste Act trust
(z.2) a trust
(i) that was created because of a requirement imposed by subsection 9(1) of the Nuclear Fuel Waste Act, S.C. 2002, c. 23,
(ii) that is resident in Canada, and
(iii) in which the only persons that are beneficially interested are
(A) Her Majesty in right of Canada,
(B) Her Majesty in right of a province,
(C) a nuclear energy corporation (as defined in section 2 of that Act) all the shares of the capital stock of which are owned by one or more persons described in clause (A) or (B),
(D) the waste management organization established under section 6 of that Act if all the shares of its capital stock are owned by one or more nuclear energy corporations described in clause (C), or
(E) Atomic Energy of Canada Limited, being the company incorporated or acquired in accordance with subsection 10(2) of the Atomic Energy Control Act, R.S.C. 1970, c. A-19.
(3) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2012.
(4) Subsection (2) applies to the 1997 and subsequent taxation years.
51. (1) The heading before section 149.1 of the Act is replaced by the following:
Qualified Donees
(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2012.
52. (1) The definitions “qualified donee”, “related business” and “taxation year” in subsection 149.1(1) of the Act are replaced by the following:
“qualified donee”
« donataire reconnu »
“qualified donee”, at any time, means a person that is
(a) registered by the Minister and that is
(i) a housing corporation resident in Canada and exempt from tax under this Part because of paragraph 149(1)(i) that has applied for registration,
(ii) a municipality in Canada,
(iii) a municipal or public body performing a function of government in Canada that has applied for registration,
(iv) a university outside Canada that is prescribed to be a university the student body of which ordinarily includes students from Canada, or
(v) a charitable organization outside Canada to which Her Majesty in right of Canada has made a gift in the 36-month period that begins 24 months before that time,
(b) a registered charity,
(c) a registered Canadian amateur athletic association, or
(d) Her Majesty in right of Canada or a province, the United Nations or an agency of the United Nations;
“related business”
« activité commerciale complémentaire »
“related business”, in relation to a charity or Canadian amateur athletic association, includes a business that is unrelated to the purposes of the charity or association if substantially all persons employed by the charity or association in the carrying on of that business are not remunerated for that employment;
“taxation year”
« année d’imposition »
“taxation year” means, in the case of a registered charity or registered Canadian amateur athletic association, a fiscal period;
(2) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:
“Canadian amateur athletic association”
« association canadienne de sport amateur »
“Canadian amateur athletic association” means an association that
(a) was created under any law in force in Canada,
(b) is resident in Canada,
(c) has no part of its income payable to, or otherwise available for the personal benefit of, any proprietor, member or shareholder of the association unless the proprietor, member or shareholder was a club, society or association the primary purpose and primary function of which was the promotion of amateur athletics in Canada,
(d) has the promotion of amateur athletics in Canada on a nationwide basis as its exclusive purpose and exclusive function, and
(e) devotes all its resources to that purpose and function;
“ineligible individual”
« particulier non admissible »
“ineligible individual”, at any time, means an individual who has been
(a) convicted of a relevant criminal offence unless it is a conviction for which a pardon has been granted or issued and the pardon has not been revoked or ceased to have effect,
(b) convicted of a relevant offence in the five-year period preceding that time,
(c) a director, trustee, officer or like official of a registered charity or a registered Canadian amateur athletic association during a period in which the charity or association engaged in conduct that can reasonably be considered to have constituted a serious breach of the requirements for registration under this Act and for which the registration of the charity or association was revoked in the five-year period preceding that time,
(d) an individual who controlled or managed, directly or indirectly, in any manner whatever, a registered charity or a registered Canadian amateur athletic association during a period in which the charity or association engaged in conduct that can reasonably be considered to have constituted a serious breach of the requirements for registration under this Act and for which its registration was revoked in the five-year period preceding that time, or
(e) a promoter in respect of a tax shelter that involved a registered charity or a registered Canadian amateur athletic association, the registration of which was revoked in the five-year period preceding that time for reasons that included or were related to participation in the tax shelter;
“promoter”
« promoteur »
“promoter” has the meaning assigned by section 237.1;
“relevant criminal offence”
« infraction criminelle pertinente »
“relevant criminal offence” means a criminal offence under the laws of Canada, and an offence that would be a criminal offence if it were committed in Canada, that
(a) relates to financial dishonesty, including tax evasion, theft and fraud, or
(b) in respect of a charity or Canadian amateur athletic association, is relevant to the operation of the charity or association;
“relevant offence”
« infraction pertinente »
“relevant offence” means an offence, other than a relevant criminal offence, under the laws of Canada or a province, and an offence that would be such an offence if it took place in Canada, that
(a) relates to financial dishonesty, including an offence under charitable fundraising legislation, consumer protection legislation and securities legislation, or
(b) in respect of a charity or Canadian amateur athletic association, is relevant to the operation of the charity or association;
(3) Subsection 149.1(4.1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) of a registered charity, if an ineligible individual is a director, trustee, officer or like official of the charity, or controls or manages the charity, directly or indirectly, in any manner whatever.
(4) Section 149.1 of the Act is amended by adding the following after subsection (4.1):
Marginal note:Revocation of registration of Canadian amateur athletic association
(4.2) The Minister may, in the manner described in section 168, revoke the registration of a registered Canadian amateur athletic association
(a) for any reason described in subsection 168(1);
(b) if the association carries on a business that is not a related business of that association; or
(c) if an ineligible individual is a director, trustee, officer or like official of the association, or controls or manages the association, directly or indirectly, in any manner whatever.
Marginal note:Revocation of a qualified donee
(4.3) The Minister may, in the manner described in section 168, revoke the registration of a qualified donee referred to in paragraph (a) of the definition “qualified donee” in subsection (1) for any reason described in subsection 168(1).
(5) Section 149.1 of the Act is amended by adding the following after subsection (6):
Marginal note:Devoting resources to purpose and function
(6.01) A Canadian amateur athletic association is considered to devote its resources to its exclusive purpose and exclusive function to the extent that it carries on
(a) a related business; or
(b) activities involving the participation of professional athletes, if those activities are ancillary and incidental to its exclusive purpose and exclusive function.
(6) Section 149.1 of the Act is amended by adding the following after subsection (6.2):
Marginal note:Political activities of Canadian amateur athletic association
(6.201) For the purpose of the definition “Canadian amateur athletic association” in subsection (1), an association that devotes part of its resources to political activities is considered to devote those resources to its exclusive purpose and exclusive function if
(a) it devotes substantially all its resources to its purpose and function; and
(b) those political activities
(i) are ancillary and incidental to its purpose and function, and
(ii) do not include the direct or indirect support of, or opposition to, any political party or candidate for public office.
(7) Subsection 149.1(14) of the Act is replaced by the following:
Marginal note:Information returns
(14) Every registered charity and registered Canadian amateur athletic association shall, within six months from the end of each taxation year of the charity or association and without notice or demand, file with the Minister both an information return and a public information return for the year in prescribed form and containing prescribed information.
(8) Paragraph 149.1(15)(b) of the Act is replaced by the following:
(b) the Minister may make available to the public in any manner that the Minister considers appropriate, in respect of each registered, or previously registered, charity, Canadian amateur athletic association and qualified donee referred to in paragraph (a) of the definition “qualified donee” in subsection (1),
(i) its name, address and date of registration,
(ii) in the case of a registered, or previously registered, charity or Canadian amateur athletic association, its registration number, and
(iii) the effective date of any revocation, annulment or termination of registration;
(9) Subsection 149.1(22) of the Act is replaced by the following:
Marginal note:Refusal to register
(22) The Minister may, by registered mail, give notice to a person that the application of the person for registration as a registered charity, registered Canadian amateur athletic association or qualified donee referred to in subparagraph (a)(i) or (iii) of the definition “qualified donee” in subsection (1) is refused.
(10) Section 149.1 of the Act is amended by adding the following after subsection (24):
Marginal note:Refusal to register — ineligible individual
(25) The Minister may refuse to register a charity or Canadian amateur athletic association that has applied for registration as a registered charity or registered Canadian amateur athletic association if
(a) the application for registration is made on its behalf by an ineligible individual; or
(b) an ineligible individual is a director, trustee, officer or like official of the charity or association, or controls or manages the charity or association, directly or indirectly, in any manner whatever.
(11) Subsections (1) to (6) and (8) to (10) come into force on the later of the day on which this Act receives royal assent and January 1, 2012.
(12) Subsection (7) applies to fiscal periods that begin on or after the later of the day on which this Act receives royal assent and January 1, 2012.
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